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THE SHOCKING FACTS ABOUT SOCIAL SECURITY'S FUTURE

By
Real Estate Agent with Bill Cherry, Realtor 0124242

I have a longtime friend who is a federal attorney, and has been for many years.  He sent this to me.

THE TRUTH ABOUT SOCIAL SECURITY

One of the least known facts about Social Security is that, although the government does have a moral obligation to pay Social Security benefits to those who have earned them, the government does not have a legal obligation to do so.
In a 1960 ruling by the United States Supreme Court, the court ruled that nobody has a "contractual earned right" to Social Security benefits. Section 1104 of the 1935 Social Security Act specifically states,
"The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress."
According to the above strong language, Congress could do whatever it wanted to do with regard to changing or even eliminating Social Security.
Some did not take the language seriously because they thought it was probably unconstitutional. However, in 1960, in the case of Fleming v. Nestor, the Supreme Court upheld the denial of benefits to Nestor, even though he had contributed to the program for 19 years and was already receiving benefits In its ruling, the Supreme Court established the principle that entitlement to Social Security benefits "is not a contractual right."

As a result of the 1960 Supreme Court ruling, the future of Social Security is totally in the hands of Congress and the President.
They have the legal authority to amend any and all parts of the Social Security Act, as well as the authority to either increase or decrease Social Security benefits.
 
 
BILL CHERRY, REALTORS
Dallas - Park Cities
Since 1964
214 503-8563

Comments (4)

David Spencer
Keller Williams Northland - Kansas City, MO
Show Me real estate in Kansas City

Well, just have to keep burying it in the yard because mattresses get replaced.

Oct 14, 2011 10:04 AM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Bill,

It is of course, unexpected for me, but listen, even if the goverment had the legal obligation, if they run out of money and out of borrowing, what good is their obligation?

It seems they already stripping our children and grandchildren of money to pay today, so isn't that how Ponzi sheme works?

Oct 14, 2011 10:39 AM
Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

Bill, politicians don't have the will to directly cut social security benefits, at least for folks at or near receiving them.  What they'll do is continue to devalue the dollar with deficit spending, and reduce or eliminate cost of living adjustments.  The same effect will be achieved.  Shame on them for their lack of responsibility.

Oct 16, 2011 01:05 AM
TERI LINDSAY
Reno, NV
STAGELIGHT HOME STAGING CO.

Bill, we can only hope that Congress will be morally responsible and pay us what we (in my case, unwillingly, paid from each and every paycheck since I was 14) earned and allowed the government to "hold in trust" to provide income through retirement and old age.  "It's" all such a mess...... how could each and every elected administration and the prevailing Congress of each admistration, be so stupid (or corrupt) to not know the future they were creating.

Oct 16, 2011 04:58 PM