RE: What "values" created the existing system?

[RRand98163@aol.com]

Dear Bill Larsen, 

	This is in reply to your questions and comments. 

	I don't understand your comment that raising the retirement age kills 
people. What on earth do you mean?
	My analysis is based on data contained in the annual Trustees' 
reports, available on request to the public. I had reference to increased 
life expectancies at 65; for males the increase was from 11.9 years in 1940 
to 15.6 years in 1997, projected to increase to 18.8 years in  2075. You 
completely misunderstood my reference to tax rates.  The original tax 
legislation provided for a combined employee-employer rate of 2% but also 
scheduled an increase in a few years to 6%, recognizing that the system had 
few retirees at that point and would have to increase the rate as more 
retirees came on the rolls.  The corresponding rate currently is 12.4%.	
	The major change I suggest is increasing the retirement age in a 
manner that keeps pace with increased life expectancies. Thus every future 
retiree could expect to receive benefits on the average as long current 
retirees do. For some reason, you feel that amounts to giving future retirees 
nothing.
	The current projections show that the system with no change in 
legislation can pay 100% benefits to 2034 and 75% benefits for the balance of 
the 75 year period of the projections. There is no prediction that benefits 
would have to be reduced below 75%.
	You correctly point out that the government projections each year 
have shown different results. That is the nature of  projections. Unforseen 
economic trends do occur. We should not be so rigid as not to change our 
assumptions for projections when we realize we have overlooked significant 
trends. Apparently your projection has remained constant for a period of 
years.
	My conclusions agree closely with those reached by six members of the 
President's 1994-96 Advisory Commission on Social Security. Dissenting 
reports were filed by the other seven members of the Commissions but none of 
those reports had more than two supporters.