Muncie Times, Muncie, Delaware County, 16 April 1998 — Page 16

The Muncie Times, April 16,1998, Page 16

Clinton lectures on Social Security

the Mortgage Experts

By Kenneth S. Apfei Commissioner of Social Security

AT AMERICAN NATIONAL BANK

During President Clinton’s recent State of the Union address, he voiced his strong commitment to Social Security. The president is asking that decisions oh spending federal budget surpluses be delayed until the country address the critical challenges facing the Social Security system. As President Clinton put it, “Save Social Security first.” He made it clear that he intends to work with the Congress in a bipartisan effort to protect and preserve a program that ensures the continued economic security of Americans of all ages. He also emphasized that the time to act is now, so that we can avert any future financing crisis. Toward this end, the president is calling for a national dialogue on how we can best achieve this goal. He has called on the American Association of Retired Persons and the Concord Coalition to sponsor regional bipartisan forums throughout the country on Social Security. The president and vice President A1 Gore, as well as members of the Cabinet, will participate in these forums. The president has invited legislators from both parties to join in the forums. By year’s end, the president will convene a bipartisan conference on Social Security at the White House, followed by meetings with the congressional leadership. I join the president in encouraging public participation in the dialogue that will take place in the months ahead. Social Security has always been a dynamic program that has adapted to the changing needs of society. The process that will take place between now and the end of the year will provide all Americans with the opportunity to influence the changes that will ensure that the system will continue to provide a floor of income protection for future generations. Questions and Answers Q. I retired last year from the life insurance business. Last month, I received sales commissions totaling $8,000 for life insurance policies that I sold before I retired. Will these commissions count as earnings for this year and reduce my Social Security benefits? A. The $8,000 in commissions will not count toward the earning limit because you did the work to earn that amount before you retired. For more information, call Social Security at 1-800-772-1213 and request the factsheet, “Special Payments After Retirement.” Q. I’ve heard some people say that Social Security benefits are “weighted.” What does that mean? A. Although the higher your earnings, the higher your benefit, Social Security uses a method of figuring benefits that replaces a higher proportion of the earnings of workers with low average lifetime earnings and those with families because they have less of an opportunity to save or invest for their retirement. Workers with low wages receive a replacement rate of about 60 percent of their earnings, average wage earners receive about 42 percent, and higher-paid workers receive approximately 26 percent.

BRIAN JACKSON • PAT DAVIS • SERONA BARTLETT

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