GAO’s reports and testimonies give Congress, federal agencies, and the public timely, fact-based, non-partisan information that can improve government operations and save taxpayers billions of dollars.
More Americans remaining in the workforce at older ages could lead to benefits at several levels. First, working longer will allow older workers to bolster their retirement savings. Second, hiring and retaining older workers will help employers deal with projected labor shortages.
In the 21st century our nation faces a growing fiscal imbalance. A demographic shift will begin to affect the federal budget in 2008 as the first baby boomers become eligible for Social Security benefits. This shift will increase as spending for federal health and retirement programs swells.
Under the current Social Security benefit formula, retired workers can receive benefits at age 65 that equal about 50 percent of preretirement earnings for an illustrative low-wage worker but only about 30 percent for an illustrative high-wage worker.
The Chairman of the Subcommittee on Human Resources, House Committee on Ways and Means requested responses to some additional questions he had about GAO's recent testimony before the full Committee on waste, fraud and abuse in certain Social Security and welfare programs.
Social Security is an important social insurance program affecting virtually every American family. It is the foundation of the nation's retirement income system and also provides millions of Americans with disability insurance and survivors' benefits.
This testimony discusses the long-term viability of the Social Security program. Social Security's Trust Funds will not be exhausted until 2038, but the trustees now project that the program's cash demands on the rest of the federal government will begin much sooner.
Pursuant to a congressional request, GAO discussed the Pension Benefit Guaranty Corporation's (PBGC) management of its contracting responsibilities, focusing on: (1) the basis for PBGC's decisions regarding the use of contractors versus government personnel to address its workloads; (2) PBGC's processes...