Backgrounder posted October 4, 2016
Disability Insurance Fails Short-Term Solvency Test Even After Transfer from Social Security
Status of the SSDI Trust Fund
According to its Trustees, the Social Security Disability Insurance (SSDI) Trust Fund is on course to run dry in 2023. That is seven years later than the Trustees reported last year, when the SSDI Trust Fund was slated for insolvency in 2016. What happened?
In October 2015, Congress passed a temporary patch to shore up the SSDI program,…
Issue Brief posted September 13, 2016
Congress Needs to Address the PBGC’s Multiemployer Program Deficit Now
The Pension Benefit Guaranty Corporation (PBGC) is a government entity that provides mandatory insurance to private pension plans. If a private pension plan fails, the PBGC pays out insured benefits so that pensioners are not left penniless. The problem is, however, that the PBGC’s multiemployer program is itself insolvent and will likely run out of money to pay…
Backgrounder posted September 6, 2016
Government Intervention in Coal Mining Seven Decades Ago No Justification for Pension Bailout Today
Two bills introduced in Congress—S. 1714 in the Senate and H.R. 2403 in the House—would bail out the United Mine Workers of America (UMWA) pension plan with up to $490 million per year. Such action would set an incredibly dangerous precedent, opening the door to taxpayer bailouts of more than $600 billion in unfunded union pensions, not to mention trillions of dollars…
Backgrounder posted July 27, 2016
Why It Is Time to Reform Compensation for Federal Employees
The federal government pays its employees more than they would earn in the private sector. Economic studies consistently find that federal employees enjoy both higher pay and substantially higher benefits than comparable private-sector workers.
Alan Krueger, the former Chairman of President Barack Obama’s Council of Economic Advisers, documented this pay premium in the…
Issue Brief posted April 6, 2016
Rescuing Entitlements and Pensions: Study Shows Americans Can Work Longer
A new study from the National Bureau of Economic Research (NBER) estimates that Americans can work significantly longer than they currently do. According to the study, Americans could work an additional 2.5 years to 4.2 years on average between the ages of 55 and 69. This is equivalent to a 30 percent to 50 percent increase in employment among this age group.
Issue Brief posted April 1, 2016
Draft House Legislation Falls Short of Priorities for Puerto Rico
Congress should not lose sight of key conservative priorities as it considers whether (and how) to respond to the economic and fiscal crisis in Puerto Rico. The troubled territory has been a laboratory for progressive politics and crony capitalism for decades. Predictably, the government has smothered the private sector, and workers receive a lower share of income in…
Issue Brief posted March 22, 2016
Congress Should Not Give Puerto Rico Federal Tax Subsidies
Policymakers are considering extending federal tax credits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC)—but not the rest of the federal tax code—to Puerto Rico as a way to help the island emerge from its economic and fiscal crisis. This would amount to an expensive cash bailout and would not address the core problems that caused Puerto Rico’s…