Recently I started receiving my Social Security benefit. Having spent a life-long career in human resources, I thought I was very knowledgeable about the details of the Social Security system. While I appreciate the ten percent increase (age 67 at commencement March '99), I was appalled at a number of, what I consider, gross inequities in the Social Security practices and processes.
First, I am aware that most, if not all, private pension systems pay the benefit at the first of a month for that month. Not only does Social Security pay at the end of a month, my check is not received until the third week of the next month. While I realize that processing some 50 million payments is a monumental task which dictates batch processing, the benefit should be paid for the month ahead instead of a month behind.
Second, I have been aware of the earnings limitation for recipients from 62 to 65 and 65 to 70 and the fact that earnings are reconciled monthly when beginning a benefit mid-year. I was, however, shocked and dismayed to discover that if I make one dollar over the monthly limit ($1,292 in my case), I lose the entire benefit for that month, not the $1.00 for $3.00 used for the annual reconciliation. This is a disincentive for me to work, which I want to do.
Third, as for taxing the Social Security benefit, the income parameters should be increased substantially. It may be reasonable to tax the benefit for those with very high incomes but it is grossly unfair and, as I said before, a disincentive to work, to tax the benefit at 50% for combined income beginning at $32,000 a year and 85% at $44,000.
We nedd to change policies and/ir legislation to:
1. Pay benefits at the first of the month rather than at the end of a month.
2. Eliminate all earnings limitations for all Social Security recipients.
3 Substantially increase the gross income level for taxing the benefit.
