April 9, 2009
"rath" wrote: However in the modern world ( not the USA ) social security is something that is there to provide support for the poorest & most disadvantaged.
& there are many category's of it in Australia.
Single parent payments.
Old age pensions.
First Social Security is not welfare, welfare is something completely different. Everyone has SS deducted from their paychecks, up to a maximum amount of earnings each payday, and it is matched by the employer, something around 15% split between employee and employer. Everyone pays into it, and if you are self employed the same SS is called self employment tax. Again it is not welfare, where people like low income people can collect it at any age. Minimum age for SS is 62, unless you are on some sort of SS disability. SS also gives money to minors who have a deceased parent.
Disability (in California) is called SDI and is around 4% taken out of your paycheck, has nothing to do with social security, nor is it welfare. It is paid by the same state department as State Unemployment, however only the employer pays into the unemployment fund, and it can only be collected under layoffs, or justified reason for terminating. You can not just quit a job and collect unemployment, again it is not a welfare, it is a paid plan. If after a year of state disability, you are determined to be permanently disabled, you can go on permanent Social Security disability, but it is very hard to do. You have to prove you are unable totally to work, and unable to be trained for new career. The minimum age I think is 55.
Company pensions also have nothing to do with SS, or any of the above. Some pension plans are the old $$$ paid of each year of service, which just about all companies are not offering these kinds of pension plans anymore. They have all gone to 401K plans for new hires. 4 01K you contribute to and the employers usually have some sort of matching $$$, and you pick the funds in the program you want to invest in. Some pension plans like State employees are some sort of % of salary base pay, times your years of service. Those usually are done in lieu of SS plans. Many State, police, firemen, military pensions can be started after only 20 years of service, they are not required to be minimum ages of 55 and up. Those pensions are grooving to be a monumental expense for the taxpayers.
Welfare plans are plans you do not contribute into, like you do with SS, SDI, Pension Plans, 401ks, etc. These all are plans which you contribute into. When you say SS is welfare you are 100% wrong. SS you must have a number of Qualifying years, plus minimum age to collect is 62(or special circumstances defined), and the earlier you collect, the less you get. Welfare is a completly different program and you do not pay into a fund earmarked for yourself. A persons record of SS is sent to them annually, showing you what you have earned for certain ages. Even if you are a millionaire, you paid into it up to a maximum annual amount. It is still there money, taken from earned income. Their benefit payment will be higher, based on the fact they contributed more into their own individual fund.
Medicare, also not a welfare program, is paid into along with your SS weekly, and you do not qualify until age 65. It has many parts, and you are required to pay for part B and D. (A is major hospitalization, B is regular doctors visits, outpatient surgery, an D is prescriptions)
I do not think we have anything like what you are calling family payments, or single parent payments, unless the true welfare plans are the equivilant, as well as food stamps.
Bottom line Rath is you do not know what you are talking about, when you say Social Security is Welfare--they are clearly 2 different programs.
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