Thursday, July 12, 2012

Reneging on retirement benefits

Chicago Friday 8 June  2012

Voice of the People, Chicago Tribune


A Voice of the People letter "Retirement benefits" [Friday 8 June]
suggests "If teachers were enrolled in Social Security rather than
 the Teachers' Retirement System, the employer contribution could
not be reneged upon like it has been in Illinois for decades...."

The United States Supreme Court has never been asked to determine
if Social Security is Constitutional. But in the 1960 Fleming vs
Nestor decision (determining the eligibility of a specific
individual) the did say:

"….The noncontractual interest of an employee covered by the
[Social Security] Act cannot be soundly analogized to that of
the holder of an annuity, whose right to benefits are based 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 and
which Congress probably had in mind when it expressly reserved
the right to alter, amend or repeal any provision of the Act...."

The United States Congress wrote their right to renege in the original
Social Security Act when they wrote it 77 years ago.

Arnold  Nelson

No comments: