CERV is a Coalition to Educate Responsible Voters. We are a nonprofit, tax-exempt organization in need of volunteers and funds. These are needed to provide to you the actuarial and financial assumptions and facts that will establish credibility in order to put Social Security on a solid foundation for the future.

It is widely reported that Social Security (SS) is in trouble. Without changes, the system will be bankrupt by 2012. Today, however, we are still collecting over $75 billion more than is required. Unfortunately, these funds are being spent on other programs rather than being saved. We must begin now to address how to fund Social Security in the 21st century.

For any system to have a chance of success, you have to consider 3 groups: 1) present SS recipients; 2) those close to SS eligibility (49-62 yr. Old); and 3) those under 49 (it could be an age greater or less).

Presently, only 10.4% of the 12.4% that is now being collected for Social Security, is paid out today. Thus, you have approximately 2.0% of everyone’s SS taxes that could be put into a new Social Security savings (new SSavings) account. This amount would earn interest. The power of compound interest now comes into play. As you know from your own savings accounts, this can be powerful. In terms of Social Security, this could mean over $50 trillion, with a T, in solutions over the next 40 years. This would be a net gain since your government now spends all SS funds collected. Furthermore, the present system increases our national debt, already approaching $1 trillion of the over $5 trillion national debt. Thus, it causes interest rates to be higher than would be otherwise.

In any event, you have to achieve 3 ends with Social Security funds and consider over time how ‘new SSavings’ with interest would allow for a goal of universal funding:

SS $ --------> required existing SS $ for existing retirees

--------> mixture of existing SS $ and ‘new SSavings’ for soon to be retirees

--------> dominant $ to ‘new SSavings’ of younger workers

When you mix younger workers with compound interest and a finite number of existing retirees dependent on present SS, you can begin to see how a "new Social Security Savings (new SSavings) system" can work. At some point, in 30-50 years, no one would receive their SS from your government. Rather, it would come out of your ‘new SSavings account’.

CERV is not about the elimination of Social Security. Rather, it is about initiating a positive change in the way we fund Social Security. In fact, consider ‘new SSavings’ accounts, along with the power of compound interest, invested in FDIC insured bank CDs, or insurance company investment vehicles or even some pension funds. All of these are safe and can adequately yield 5%. We are not talking about individuals investing for themselves in the stock market! The system of payroll deductions would still apply. The difference, and it’s BIG, is that the money would go directly into your ‘new SSavings account’, not to the U.S. Treasury’s General Fund!!!!!!! Remember, there is no Social Security Trust Fund.