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And workers get credit for the full tax for purposes of calculating their future benefits.
These recipients must pay Social Security tax on their earnings, even though doing so will not enhance their future benefits.
Its workers built up their future benefits by about $6 billion, a new labor contract with the United Automobile Workers added $2.1 billion in obligations, and interest rates fell, increasing obligations.
The city would also change the way pension payments were calculated to mitigate the common practice of uniformed officers accumulating hundreds of hours of overtime in their final year to maximize their future benefits.
Even so, discussion focuses on how to curtail what will go out to people who are paying top dollar for their future benefits while ignoring any serious adjustment to what is paid to today's subsidized retirees.
If this is true, then workers may well view a cut in Social Security taxes as diminishing their future benefits, which may cause them to increase their saving rather than spend the additional cash flow.
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The Times report found that some soon-to-be-retired workers were allowed to take advantage of work rules to increase their paychecks and, as a result, their future benefit payments.
Social Security makes this assumption because it's afraid that people will compare their future benefit with their current pay, infering a higher replacement rate than will actually end up being the case because their earnings will also likely grow through retirement.
So for younger people, in particular, Social Security is significantly understating their likely future benefit.
The S.E.C.'s proposed rules will require companies to disclose more about executives' perks and stock-option grants and about their future pension benefits.
Public employees occupy capitol buildings to protect their bargaining power for future benefits negotiations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com