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Saturday, November 20, 2010

Older Workers More Disabled, and Employers Don't want them. Raising Soc. Sec. Age Bad Idea.


The truth about private sector jobs is that elected politicians don't know anything about them, or they wouldn't be trying to do what they say must be done to save Social Security.

Why is raising the retirement age completely unconnected to the real world? In the real world, employers don't hire older workers because they often require higher pay and benefits, something first time unskilled workers are rarely provided.
Now the GAO has added one more reason why politicians should stop chipping away at the our social safety nets and instead, add to them.

AP: Raising the retirement age for Social Security would disproportionately hurt low-income workers and minorities, and increase disability claims by older people unable to work, government auditors told Congress.

The projected spike in disability claims could harm Social Security's finances because disability benefits typically are higher than early retirement payments, the Government Accountability Office concluded.

"There's more to consider than simply how much money the program would save by raising the retirement age," said Sen. Herb Kohl, D-Wis., chairman of the Senate Special Committee on Aging.

The commissions professional politicians "tough love" stance toward senior citizens is a solution devoid of private sector realities. The deficit commission's leaders (would gradually) "increase the full retirement age to 69 in about 2075 ... early retirement age would go to 64 ... the new thresholds wouldn't be fully phased in until today's 4-year-olds are ready to retire."

The GAO demonstrates the how upside down the commissions logic is:

"For many workers, reducing early retirement payments or delaying eligibility would provide an incentive to put off retiring, resulting in more earnings and potentially more savings for later in life, according to the watchdog agency's report." But it "could create a financial hardship for those who cannot continue to work because of poor health or demanding workplace conditions," the report said.

"Some people just can't continue to work beyond age 62 for either health reasons or they're just not able to find jobs," said David Certner, legislative policy director for
AARP. About one-fourth of workers age 60 and 61 — just under the early retirement age — reported a health condition that limited their ability to work. "Just because we tell people they should work longer doesn't mean that there are employers out there willing to hire people."

If just a few points needs to be argued by Democrats to save and support Social Security, it would be the following:
Workers older than 55 are less likely than younger workers to lose their jobs, the report said. But when older workers get laid off, they are less likely to find other employment. The GAO report says raising the age when workers can get early benefits would hurt the program's finances because of the expected increase in disability claims.

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2 comments:

  1. As someone at age 75 who planned to retire on November 30th 2011, a little over a year from now I found myself caught up in a "RIF" with PRT this past April. As a “Victim”, yes a “Victim” of state budget cuts I can speak to the cold hard facts that many state workers most likely will experience in the coming months and year. I use the term “victim” because although I was let go for budget cuts I might as well have been fired. I would have taken a pay cut or reduction in hours, anything other than what happened to me. I was not offered a transfer to any other agency or given any type of severance package. I was told on April 20th that I had just 10 days before I along with nine other PRT employees would loose our jobs.

    Since August 1988, I worked for the S.C. Department of Parks, Recreation and Tourism (SCPRT) as a Travel Development Coordinator at the S.C. Welcome Center on I-85 at the Georgia state line. In those years, I represented my state to the absolute best of my abilities. I took pride knowing that I was the first South Carolinian those first-time visitors to our State (and the United States for that matter) would encounter. I treated each traveler with kindness and hospitality. Over the years, I made many friends, and the “regulars” took to calling me “Miss Jo.”

    Each day I faithfully drove the 80-mile round trip to and from my home in Liberty, SC. and I was looking forward to my upcoming November 30, 2011, retirement date. Imagine my surprise when on April 20th of this year, over six months ago, two employees from the Columbia office greeted me at the Welcome Center with a letter stating that “it has been determined that your term of service with the Agency will end effective close of business on April 30, 2010.” I was completely shocked, and six months later I still am. I was given a ten-day notice. Six of those were scheduled as regular days off so I was told to just take the other four as sick days and you want need to come back. As I said before I might as well have been fired.

    In September of 2006 I was told how great it would be for me to join the TERI program by PRT HR. I was told that unless I quit the program on my own that I could be assured that I could work for the next five years. Because I was born before January 1, 1936, a special one-time tax rule applied to me if I worked the entire five years and because of this fact, I decided to participate in the TERI plan. Little did I know that my decision to participate in TERI would come back to cost me my job on April 30th of this year when PRT decided as one person in HR put it “……..to get rid of all the TERI people” I had nineteen months left to earn both my salary and the TERI but PRT ended my job and I was told nine other PRT employees. I was the only person from the Welcome Centers that was let go all of the others were with the Parks Department. I was also the oldest employee with the Welcome Centers and one of the oldest in all of PRT.

    I have also been denied from receiving any unemployment insurance benefits by the “new” Department of Employment and Workforce because it is there “policy” not to pay TERI participants, although I initially qualified for a grand total of $155. A week. What makes even less sense is why would you get rid of employees that are paying into the retirement system but not earn any credit. In 41 months, I paid a total over $6,000. Which was taken out of my checks but went into the states general fund but not to me. Therefore, while there is all of the talk about the shortfall in the retirement system I ask you does it make any sense to “get rid of the TERI people”.

    If you are with PRT or any other state of South Carolina agency be warned if this can happen to me it can happen to anyone and if you are coming into South Carolina from Georgia on I-85 and you look to your right and spot the Welcome Center on the hill please think of Miss Jo and the many hours that I spent greeting newcomers from all over world to South Carolina I job that I loved and would still be doing if I had a choice.

    Miss Jo

    ReplyDelete
  2. As someone at age 75 who planned to retire on November 30th 2011, a little over a year from now I found myself caught up in a "RIF" with PRT this past April. As a “Victim”, yes a “Victim” of state budget cuts I can speak to the cold hard facts that many state workers most likely will experience in the coming months and year. I use the term “victim” because although I was let go for budget cuts I might as well have been fired. I would have taken a pay cut or reduction in hours, anything other than what happened to me. I was not offered a transfer to any other agency or given any type of severance package. I was told on April 20th that I had just 10 days before I along with nine other PRT employees would loose our jobs.

    Since August 1988, I worked for the S.C. Department of Parks, Recreation and Tourism (SCPRT) as a Travel Development Coordinator at the S.C. Welcome Center on I-85 at the Georgia state line. In those years, I represented my state to the absolute best of my abilities. I took pride knowing that I was the first South Carolinian those first-time visitors to our State (and the United States for that matter) would encounter. I treated each traveler with kindness and hospitality. Over the years, I made many friends, and the “regulars” took to calling me “Miss Jo.”

    Each day I faithfully drove the 80-mile round trip to and from my home in Liberty, SC. and I was looking forward to my upcoming November 30, 2011, retirement date. Imagine my surprise when on April 20th of this year, over six months ago, two employees from the Columbia office greeted me at the Welcome Center with a letter stating that “it has been determined that your term of service with the Agency will end effective close of business on April 30, 2010.” I was completely shocked, and six months later I still am. I was given a ten-day notice. Six of those were scheduled as regular days off so I was told to just take the other four as sick days and you want need to come back. As I said before I might as well have been fired.

    In September of 2006 I was told how great it would be for me to join the TERI program by PRT HR. I was told that unless I quit the program on my own that I could be assured that I could work for the next five years. Because I was born before January 1, 1936, a special one-time tax rule applied to me if I worked the entire five years and because of this fact, I decided to participate in the TERI plan. Little did I know that my decision to participate in TERI would come back to cost me my job on April 30th of this year when PRT decided as one person in HR put it “……..to get rid of all the TERI people” I had nineteen months left to earn both my salary and the TERI but PRT ended my job and I was told nine other PRT employees. I was the only person from the Welcome Centers that was let go all of the others were with the Parks Department. I was also the oldest employee with the Welcome Centers and one of the oldest in all of PRT.

    I have also been denied from receiving any unemployment insurance benefits by the “new” Department of Employment and Workforce because it is there “policy” not to pay TERI participants, although I initially qualified for a grand total of $155. A week. What makes even less sense is why would you get rid of employees that are paying into the retirement system but not earn any credit. In 41 months, I paid a total over $6,000. Which was taken out of my checks but went into the states general fund but not to me. Therefore, while there is all of the talk about the shortfall in the retirement system I ask you does it make any sense to “get rid of the TERI people”.

    Miss Jo

    ReplyDelete