In my career I’ve had the privilege of delivering many retirement classes to OIG offices and other law enforcement officers. I’ve been impressed when I hear of what they have done to safeguard the integrity of our systems. Image: Alexey Rotanov/Shutterstock.com
By: John GrobeWe’re beginning to hear the word “entitlement” bandied about as if it’s a bad thing. You have to admit that the word entitlement sounds a bit pejorative as if a person believes they are deserving of or entitled to certain benefits or privileges.
When those intent on cutting benefits such as Social Security use the word entitlement, they are hoping that their listeners think of undeserving parasites who are receiving government largesse that they do not deserve. In fact, Elon Musk recently said that “Most of the federal spending is entitlements, so that’s like the big one to eliminate.” Note the word “eliminate.”
Nothing could be further from the truth. When I searched for definitions of entitlement, one of the first ones I found was “a right to benefits specified by law or contract.” That’s what Social Security is. Since 1937, Social Security has been collecting payroll taxes and paying benefits to working Americans.
Since we’ve been working, we’ve been paying 6.2% of our salary (up to an annual tax cap) for our right to future Social Security benefits. Our employer has been doing the same, so a total of 12.4% of our earnings are being set aside (by law/contract) for our future financial security. These contributions are invested in Treasuries and the earnings are part of the Social Security trust fund which will pay us benefits in our old age.
Here’s how we should look at Social Security (and Medicare, too). They are earned benefits for which we’ve been paying payroll taxes for our whole career. The next time you hear someone use the word entitlement when describing Social Security or Medicare, inform them that the words they should be using are earned benefits and the reason you and others are “entitled” to them is that you’ve paid for them.
Having said all of the above, I don’t think that it’s time to panic about our earned benefits. President Trump has said he will not touch Social Security, Medicare, and Medicaid. He states that his administration will work on getting fraud out of the programs. My suggestion as to how to do this is to beef up the Offices of the Inspector General in the appropriate agencies so that they can go after the fraudsters who are taking advantage of the system. Yes, this would cost money, but it would save even more money than it costs. In my career I’ve had the privilege of delivering many retirement classes to OIG offices and other law enforcement officers. I’ve been impressed when I hear of what they have done to safeguard the integrity of our systems.
Furthermore, 96% of American wage earners pay into Social Security. And 71.6 million Americans received benefits from programs administered by the Social Security Administration in 2023. Any politicians who try to weaken the system will have a lot of angry voters to answer to.
Social Security Benefits in Federal Retirement
Social Security coverage is a basic element of the retirement package for FERS employees and for CSRS Offset employees. Regular CSRS employees may be eligible for certain Social Security benefits through Social Security-covered work before or after (and potentially during, for part-time outside work) their CSRS employment years, or through spouses covered by the system.
Employees covered by Social Security pay the standard 6.2 percent deduction toward the Social Security trust fund up to an annual maximum, $176,100 in 2025. All federal employees also contribute 1.45 percent of salary toward Medicare, which has no maximum; the Medicare deduction sometimes is presented as part of the “Social Security” salary deduction, even though the money goes to two separate programs.
John Grobe, President of Federal Career Experts, is an expert in the area of federal employee retirement and benefits. This expertise comes from his 26 year federal career in which he managed the retirement program in a 3,500-employee office of a large federal agency.
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
The Best Ages for Federal Employees to Retire
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
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