Social Security Administration Ohio

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Social Security to start cashing in IOUs from Uncle Sam

By STEPHEN OHLEMACHER, Associated Press Writer Stephen Ohlemacher, Associated Press Writer - 1 hr 14 mins ago
Parkersburg, West Virginia - The retirement nest egg of an entire generation is hidden away in this small town along the Ohio River: $ 2.5 trillion in IOUs from the federal government, to pay to the Administration Social Security.

It is time to start cashing them in.

For over two decades, Social Security collected more money in payroll taxes he paid in benefits - billions more each year.

No more. This year, for the first time since the 1980s, when Congress last revision of the Social Security retirement program is expected to pay more benefits than it collects in taxes - nearly $ 29 billion more.

Sounds like a good time to start using the money. Too bad the federal government has already spent that money over the years on other programs, preferring to borrow from Social Security rather than foreign creditors. In return, the Treasury Department released a stack of IOUs - in the form of Treasury bonds - which are kept in any office building just down the street from the municipal offices of Parkersburg.

Now the government must borrow more money, mostly abroad, to begin repaying IOUs, and the timing could not be worse. The government should show a record 1.5 trillion budget deficit this year, followed by one billion dollars in deficit for years to come.

social security deficit will not be on current benefits. Until last IOUs, the benefits keep. But experts say it is a warning sign that the program's finances are deteriorating. Social security is expected to release its trust fund in 2037 unless Congress acts, and there is fear that the looming crisis will lead to a reduction in benefits.

"This is not only a wake up call, what it is. We are here," said Mary Johnson, policy analyst for the League of seniors advocacy group. "We will not be able to put out more.

For over two decades, whatever the political party in power, Congress has been accused of looting funds Social Security trust to pay for other programs, masking the size of the budget deficit.

Remember Al Gore's "lockbox" that he would use to protect Social Security? The former vice president spoke during both the 2000 presidential campaign that has been parodied on "Saturday Night Live."

Gore lost the election and was never his mailbox. But to illustrate the government's commitment to repay Social Security, the Treasury Department has been issuing special bonds that earn interest for the retirement program. The bonds are unique because they are printed on paper, while other obligations exist only in electronic form.

They are stored in a three-ring binder, enclosed in the bottom drawer of a white metal cabinet in the offices of Parkersburg Office of Public Debt. The agency, part of the Treasury Department, has opened offices in Parkersburg in 1950 as part of a plan to locate the important functions of government outside Washington, DC, in the case of an attack during Cold War.

A bond is worth just over 15.1 billion U.S. dollars and another is valued at just under $ 10.7 billion. Overall, the agency has about $ 2.5 billion in bonds, backed by the faith and credit of the U.S. government. But do not bother trying to steal them, they are not negotiable, which means they are worthless on the open market.

Over 52 million people rec.