SSB: Interest Income Is One Of The Only Ways To Grow The Fund |
Thu, November 7, 2024 |
And because of the increasing demands on social security from an aging population of contributors, Almendarez stressed that's why the fund has to grow. And that doesn't mean leaving it in the bank where it's getting a one or 2% return... |
And because of the increasing demands on social security from an aging population of contributors, Almendarez stressed that's why the fund has to grow. And that doesn't mean leaving it in the bank where it's getting a one or 2% return.
Now, whenever Social security publishes a notice of a proposed loan as it is required to do the blowback on social media is immediate and intense.
Almendarez today stressed they're not giving the fund's money away:
Leroy Almendarez, CEO - SSB
"I think the thing for the public when it came to social media was the loans. I think that's the one that they believe that you're giving away the money, when in fact, you're not. if a loan is approved, a loan is approved with an interest rate, you know, tied to it, which means we expect to get interest income, but that loan has to be properly collateralized because if there's any shortfall or as we refer to it, if your ability becomes impaired to pay, then we have the collateral and security against that loan."
All proposed social security investments must first be approved by an InvestmentCommittee and then sent to the multi sectoral board for approval.
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