Social Security to start cashing government IOUs - KMOV.com

Social Security to start cashing government IOUs

WASHINGTON (AP) -- The new chairman of the House subcommittee overseeing Social Security says that Congress must shore up the program. But Democrat Earl Pomeroy says change isn't needed in the next few months, even though the program is projected to pay out more money this year than it collects in taxes.

There is no danger to current benefits. But to cover its shortfall, Social Security will cash in IOUs -- Treasury Bonds collected by loaning surplus tax dollars to the federal government. Those bonds will help preserve benefits until 2037.

Experts including Social Security chief actuary Stephen Goss say the longer-term issues need to be addressed. If current financial pressure makes people look more seriously at the program's troubles, he says it could be a "good thing."

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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