March 24, 2004 (PLANSPONSOR.com) - Delaware
Investments has announced the arrival of four large cap value
equity investment managers and the appointment of a new head
of equity investments.
Delaware announced the arrival of Ty Nutt, Robert
Vogel, Anthony Lombardi and Jordan Irving in the new
investment manager roles.
The four large cap value equity investment mangers join
Delaware from similar positions at Merrill Lynch Investment
Managers, according to a news release.
Signing up as the new Head of Equity Investments is
Patrick Coyne, who has served as an investment professional
at the firm since 1989, including serving last year as
Delaware’s co-head of Fixed Income team.
In the new role, Coyne oversees the firm’s domestic equity
asset management teams.
Social Security now has an unfunded liability of
$10.4 trillion.With 2004’s figures, theannual cost of Social Security benefits now
represents 4.3%
of Gross Domestic Product (GDP) and is projected to
rise to 6.6% of GDP in 2078
, according to the 2004 reading of the Annual Report
of the Board of Trustees of the Federal Old-Age and
Survivors Insurance and Disability Insurance Trust Funds
prepared by theSocial Security and Medicare Trustees.
Although the insolvency date remained the same,
shifted down was theprojected 75-year actuarial deficit in
the combined Old-Age and Survivors Insurance (OASI) and
Disability Insurance (DI) Trust Funds which is 1.89% of
taxable payroll, down slightly from 1.92% in last year’s
report.
The Trustees offer ways Social Security can be
brought into actuarial balance over the next 75
years.
This includes either an immediate increase in
payroll taxes of 15%, an immediate reduction in benefits of
13% or some combination of the two.
Yet this would only sustain the system until 2078; to
sustain past that time would require even greater
changes.
However, only getting worse was Medicare’s unfunded
liability, which now stands six-times greater than Social
Security’s at $61.6 trillion; accounting for $16.6 trillion
of that figure is the prescription drug benefit.
That unfunded liability now means Medicare will run
dry by 2019, earlier than the 2026 projected just last
year.
Overall, t
he projected 75-year actuarial deficit in
the Hospital Insurance (HI) Trust Fund is now 3.12% of
taxable payroll, up from 2.40% in last year’s
report.
This is being attributed mainly to higher actual and
projected hospital expenditures, as well as lower actual
and projected taxable payroll, and new Medicare
legislation.
To correct this dire situation, the Trustee
sayHI could be brought into actuarial balance
over the next 75 years by an immediate 108% increase in
program income, an immediate 48% reduction in program
outlays or some combination of the two.
In total, the long-term deficits in Social Security
and Medicare total $72 trillion, nearly seven times the
size of the U.S. economy.