Show Says Social Security Financially Financial IY Sound From Dept of Health Education and Welfare Social Security Adm Office Provo Utah Some Some people may have been disturbed recently by published reports alleging that the old-age old and survivors insurance program was v running into financial trouble trou trou- ble I can assure you that the program is financially sound and that there will be enough money money money mon mon- ey to pay all future benefits and I think that the facts about how the system is financed will show you that this is true This program is financed out of ot the social security tax contributions contributions contributions con con- of employees and their employers and the self- self employed These tax contributions contributions Lions go into a separate Trust Fund in the U. U S. S Treasury and that part of the fund not needed for current expenditures is in invested invested invested in- in vested in interest-bearing interest U. U S. S government ment bonds The interest on these bonds is added to the fund In the 20 years since 1937 the Trust Fund ha has hai grown to 23 billion Under this schedule employed people now pay a social security tax o of 2 per cent o of their wages wag wag- es up to per year A matching 2 2 per cent is paid by their employers Self em people pay a tax o of 3 8 3 per cent of their net earnings up to per y year ar A fixed percentage of this tax goes into the disability insurance T Trust r u s t Fund to finance disability insurance ante ance nce benefits During the fiscal year which ended June 30 1957 income to the Trust Fund totaled 71 bil bil- bil- bil lion Of this 65 billion was tax contributions and million million mil mil- lion was interest on the invested invest invest- ed assets o of the Fund Benefit payments and administrative ex expenses expenses ex- ex expenses totaled less than 67 billion So the Fund in increased increased increased in- in creased by more than mullions mil mul- lion lions The Trust Fund has increased every year since the n went into operation in 1937 and since the long range trend of the Fund is upward it will continue con- con continue to increase But it has been seen anticipated that there willbe willbe will be je periods when the margin of income over outgo would nar nar- narrow narrow narrow row and that outgo might even exceed income for a aime time ime before each increase In Inthe inthe the tax rate becomes effective With the income from the taxes taxes taxes tax tax- es now scheduled in the law and the he interest on investments there here will be enough money to pay all future benefits The old- old age and survivors insurance system system tem tern is supporting self-supporting and it wi will continue to be support self i ing A Asocial social security representative tive five will be in Manti Monti at the City offices on August between 1030 a a. a am a.m. m. m and p. p pm p.m. m. m o 0 |