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Thread: Social Security

  1. #1

    Social Security

    A trust established by Congress for the benefit of workers in old age.
    Trustees are Congress and the Social Security Administration. Notice the settlor is also a trustee.
    Beneficiaries are workers.

    The funds for the pool of this trust come from the beneficiaries who "pay-as-they-go" into the system.

  2. #2
    Flemming v. Nestor (1960)

    Of special importance in this case is the fact that eligibility for benefits, and the amount of such benefits, do not in any true sense depend on contribution to the program through the payment of taxes, but rather on the earnings record of the primary beneficiary.
    But each worker's benefits, though flowing from the contributions he made to the national economy while actively employed, are not dependent on the degree to which he was called upon to support the system by taxation. It is apparent that the noncontractual interest of an employee covered by the Act cannot be soundly analogized to that of the holder of an annuity, whose right to benefits is bottomed on his contractual premium payments.
    To engraft upon the Social Security system a concept of "accrued property rights" would deprive it of the flexibility and boldness in adjustment to ever-changing conditions which it demands.

    ...

    We must conclude that a person covered by the Act has not such a right in benefit payments as would make every defeasance of "accrued" interests violative of the Due Process Clause of the Fifth Amendment.

  3. #3
    Senior Member Trust Guy's Avatar
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    Quote Originally Posted by shikamaru View Post
    The funds for the pool of this trust come from the beneficiaries who "pay-as-they-go" into the system.
    First , under Old Age Benefits, you may never become a collecting beneficiary unless you complete 40 quarters of reported Wage Income to qualify . If you have not got 10 years on file you don’t qualify .

    Deductions into the SS Retirement fund are ”Gifts” levied from your Estate ( "Wage Earnings" ) , as are Wage Withholding . Gifts to the Government .

    Recall the SS-5 Application is “Required to obtain or retain a benefit” . Obligation 24. - 2 . Also note Purpose of information collection 22. - 3 & 5 .



    IRS 6209 Manual , Section 2. Tax Returns and Forms

    W-2 , W-4 , 1099 Series , etc. all Tax Class 5 = Gift and Estate Tax . ( “Information Return Processing” )

    1040 Series are listed as Tax Class 2 , 6 . 2 = Information Return. ( 22. - 3 ? )

    Class 6 is a little difficult to trace down . It’s utilized as Class Identifier in the 6209 , but not defined within the Manual . We do find a Class 6 in BATF regs so we may presume it to be related to BATF specific Business . Brewery as I recall .

    SS deductions ( “Gifts” ) are put into an erstwhile “Trust Account” pool for qualifying SS Accounts . As such there is no direct title to the account , only entitlement to access the benefits under specific conditions .

    There are different circumstances in regards to Supplemental Security Income ( FICA ) and Unemployment ( FUTA ) deductions . All of which go into the same "Trust Account" , as I recall.
    Last edited by Trust Guy; 05-26-11 at 11:45 PM.
    Not to be construed as Legal Advice, nor a recommended Course of Action. I will stand corrected.

  4. #4
    The legislation contained on this web site is subject to Crown Copyright protection

  5. #5
    These IOUs are non-marketable; The government has the legal authority to declare these IOUs null and void. Since these IOUs are not traded, such action would have little effect on financial markets, and foreign governments would probably consider such action as an internal matter between the American government and its citizens.

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