How Does Social Security Make the Current Budget Deficit Smaller

question 12

Essay

How does Social Security make the current budget deficit smaller than it otherwise would be?

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Definitions:

Actuarially Assumed

Actuarially assumed involves estimations or calculations made based on actuarial methods, often related to insurance or pensions, to predict future obligations or costs.

Defined Contribution Pension Plan

A retirement plan where an employer, employee or both make contributions, with future benefits dependent on investment performance.

IRS Approved

Indicates that a financial arrangement or practice has been sanctioned or recognized by the Internal Revenue Service.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated on a formula including salary history and duration of employment, with the employer bearing investment risk.