Kenneth Kowalski\'s letter, Plain Dealer, December 21, 2004 under the
heading \"Differing views on Social Security\" is a diatribe of
nonsense. Let\'s dispel his flailing(s) and suggest a real solution.

Raising the \"payroll tax\" to include all earnings will not even come
close to securing your Social Insecurity, and Kowalkski is insecure as
noted in his comments disparaging a \"free market\" and his yearning to
be carried by the Government. (There is no free lunch, and Government
spends our tax dollars like a drunken sailor\... obfuscating the facts,
building a pool of quicksand in our paths where you will sink as your
Government and the ilk of John Kerry, Nancy Pilosi, and Ted Kennedy
blind you with smoke and mirrors.)

Facts: Social Security was instituted in 1935 as a temporary measure to
assist aging American Citizens during the Great Depression. The
Retirement age was set at age 65, the same as Germany\'s program under
Bismarck. Also, in 1935, life expectance was age 64 in America\...
meaning most people did not live to collect Social Security.

More Facts: Social Security, which should have been weeded out following
the Great Depression, has become an untenable permanent fixture and a
crutch to many Americans encouraging them to avoid providing for their
own old age. Today, life expectancy is age 78 which means \"on average
Social Security beneficiaries are living 14-years longer than those in
1935. If we were to \"index\" full retirement benefit age (similar to
the indexing of your Social Security Benefit), the \"Full Benefit Age\"
would be age 78.

Congress several years ago changed Social Security to slowly move the
\"Full Benefit Age\" to age 67, and under current law that will come to
past in the future. This is untenable over the long run, given an
ever-increasing life expectancy.

Proposed solution:

\(1\) All current legal Social Security benefit recipients will be
carried with indexing for inflation according to the CPI.

\(2\) All Citizens, age 50 and over, who are contributing to Social
Security will be guaranteed at least a benefit equal to the current
program. Whereby, citizens less than age 50 will be on the proposed
program.

\(3\) President George W. Bush\'s proposed private accounts must be the
foundation with a mandatory 5% of wages up to the Wage Base Maximum
(Currently approx. \$89,000) going into your Private account with no
artificial maximum. (The remaining 1.2% and the full 6.2% employer match
of your Social Security Tax payment will go to the Government.

\(4\) The \"Full Benefit Age\" must be increased immediately to age 70.
With an eye on age 75 within 20-years.

\(5\) Social Security must be indexed for inflation which means benefits
will maintain purchasing power.

\(6\) The fraud unit of Social Security and Medicare/Medicaid must be
beefed-up to provide maximum oversight, and the illegals and citizens
who perpetrate fraud on the Social Security System will be punished, pay
restitution and forfeit all future benefits (with the exception of their
\"private account\" after paying 100% restitution) even though they will
still be required to pay the \"payroll tax.\"

Let\'s do it! The time for fussing is past. Waiting is not an option.

\*\*\* \*\*\* \*\*\*

Joseph F. Kerner, MSPA

Member-American Society of Pension Actuaries