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Joyce Hrouda worked for 35 years with the Social Security System. She is a retired Social Security District Manager from Kalispell, MT and was also responsible for the Northwest Region of Montana. 

Joyce is a long time BPW member. She is a Past State BPW President '89-90' & '95-96', plus she is currently President of our recently formed BPW State Foundation.

Joyce is also a member of SCORE (Service Corp of Retired Executives) who work with people to give support and information in their business or if they are starting a business.

In Joyce Hrouda's  Presentation about "Privatizing Social Security - Should
we do it?", she said that if they did Privatization and a person had an account,
it would be that person's account only and would not provide for spouse or other family member benefits such as for a wife or children. If funds remain in the account at death they would be part of the estate. Also, it would take money out of the Social Security to start it, and it would not be a solution to Social Security's solvency.

Listed below are possibilities for Solvency of Social Security.

Social Security Options – (Projected 75-year shortfall - $3,991 billion)

  • 1. Private accounts: -- Would require borrowing $750 billion to $2 trillion to transition to personal accounts.
    Would have on-going administrative costs of up to 20% if handled through mutual funds/stockbrokers.
  • 2. Raise cap on wages from $90,000 to 140,000 or eliminate cap.
    a. If benefits are capped at present level, raises $4,646 billion over 75 years.
    b. Increase benefits in accordance with increased contributions, raises $3,696 billion over 75 years.
  • 3. Raise full retirement age to 70. Retirement age is 67 now for full benefits: raise gradually each year to 68, 69 then 70. (Brings in between $296 billion to $1,436 billion).
  • 4. Eliminate early benefits (amount saved – unknown).
  • 5. Raise FICA taxes ¼ % (currently 6.2%, to 6.225%) (Savings not known)
  • 6. Cover newly hired state and local government employees. (Adds to Trust Fund as hired.)
  • 7. Figure cost of living (COLA’s) differently.
    a. Reduce by 1% - saves $3,188 billion over 75 years.
    b. Reduce by ½ % - saves $1,668 billion over 75 years.
  • 8. Invest Trust Fund balance in stocks and bonds.
    a. 40% invested @ 6 ½ % - $1,922 billion over 75 years.
    b. 40% invested @ 5 ½ % - $1,394 billion over 75 years.
  • 9. Fund Social Security with a Value Added Tax (VAT) – on imports (similar to Sales Tax).
  • 10. Across the board benefit cut for new retirees.
    a. 5% - Saves $1, 288 billion over 75 years.
    b. 3% - Saves $781 billion over 75 years .
  • 11. Tax all Social Security benefits – (Saving over $697 billion over 75 years.)
  • 12. Increase number of working years calculated for benefits
    a. from 35 to 38 – saves $549 billion over 75 years or
    b. from 35 to 40 – saving $887 billion over 75 years.
  • 13. Set aside $2,000 for each child from birth to age 18 in a personal account invested in stocks and/or bonds. Child would draw benefits at retirement or if disabled. Assuming 2 million children born each year, would cost $4 billion a year.

Additional revenue needed represents 0.54 % of the G.D.P. (gross domestic product) – equivalent to 3% of Federal spending. (Less than is being spent on Iraq.)

The current budget deficit – over 3.6% of the economy

Trade deficit – 6% of G.D.P.

DVD's of Joyce's presentation at MCAT are available for $7.50 from Caryl Wickes-Connick ( 406-542-1307).