There is a whole lot of misinformation re: the SSTF. It lives! In a hearing yesterday the Chief Actuary, Mr Goss, explained that every check is issued from the trust fund.

What Happened to the $2.6 Trillion Social Security Trust Fund? You have to read the comments.

What happens is the FICA revenues come in and are placed into the SSTF account. SSA authorizes the monthly payments and Treasury writes check every Wednesday. Aug 3 is the 1st Wed.

What treasury does is redeem the SSTF special treasuries (convert them from intra-governmental to publcly owned). There is no change in the debt/debt ceiling as it was first calculated when received and placed into the trust fund.

During periods when there are monthly surpluses, that surplus is transferred to the Genera Fund. That?s is the way nearly every TF works, and for SS it was written into the original bill. Since 1935-7 it has operated this way with some minor differences.

Now, when there are SS deficits, Treasury just redeems the correct amount of SSTF bonds to cover the difference. That?s the way it was designed to work! http://www.forbes.com/sites/merrillm...-trust-fund/2/


The Galveston plan, which I wrote about a few months ago here, is also a very good option. http://www.forbes.com/sites/merrillm...d-prospered/2/