Community Chat

[Lynnster67]

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@Allegheny wrote:

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@151949 wrote:

I never agreed to have my earnings taken from my paycheck as a loan to the government.

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Well we both agree on this for sure.  But some things are out of our control and just not fair.  For example, when the dollars were needed to "keep the government afloat" when no budget gets passed, they "borrowed dollars" from our retirement fund.  I don't know whether those funds were ever repaid.  Because a special allocation has to be made to do so.

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This is what happens:  When Treasury is close to the debt ceiling, they engage in "extraordinary measures" to extend the day of reckoning as long as possible.  One of these measures to temporarily cease depositing TSP contributions into the G Fund.  Once the debt ceiling is incresed, these funds are deposited into TSP plus accrued interest earned. 

NOTE 1:  These extraordinary measures are being done now, as Treasury predicts it will hit the debt ceiling in Sept (and there is no FY18 budget done yet).  Congress needs to increase the debt ceiling before leaving on their 5 week summer recess.

NOTE 2:  However, this practice of "borrowing" retirement plan contributions is considered an ERISA violation of fiduciary duties and thus banned.

[NYC Susan]

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@KathyPet wrote:

Medicare will simply increase the cost of premiums to eat up the "raise" in SS benefits

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That was my first thought too.

[hyacinth003]

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@Lynnster67 wrote:

SS is a pay-as-you-go system (Ponzi scheme).  If any other pension fund operated that way, its trustees would be prosecuted for breaching their fiduciary duty.

Whoever is responsible for applying the SS surplus against the government's deficit should be prosecuted.

I don't think ppl realize there is no trust fund with their name on it -- all you earn is quarters of credit and the highest 35 yrs of earnings are used to calculate your annuity.  When SS was generating a surplus, it was invested in a special series of Treasurys.  Now that cash flow is negative, these "bonds" are being liquidated.  These bonds are just pieces of paper in fireproof/waterproof filing cabinets in a ginormous bunker somewhere in WV.

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Well, those of us in Illinois know all about pension funding (or lack thereof).  We just received more taxes to pay for them, speaking of fiduciary duty.

Hyacinth

[Lapdog]

I believe our electric company has asked for a rate increase to the tune of an average of "just" $1.00 a day.  And, on the way home this evening, gas is up 36 cents a gallon.

So, to be a little positive, the $30 will help a touch.

[Bookbabe]

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@zitawins wrote:

That and a dollar will get you a cup of Starbucks.

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Anything in that cup?

[Cakers3]

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@Lapdog wrote:

I believe our electric company has asked for a rate increase to the tune of an average of "just" $1.00 a day.  And, on the way home this evening, gas is up 36 cents a gallon.

So, to be a little positive, the $30 will help a touch.

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@Lapdog  They must watch the Q.