In regard to the Social Security shortfall, perhaps a source of new funds could come from the “unvested” portion of the employer’s matching 401(k) contribution that results when an employee leaves a company before becoming fully vested. In my case, I left my job when I was only 60 percent vested in the matching portion of my 401(k). What happened to the remaining 40 percent? Does it just flow back to the employer?
When you consider how many people get laid off every year, there’s probably a substantial number of people who aren’t fully vested. If companies had to pay that into Social Security, at least it would benefit the system, even if it didn’t directly benefit the individual it was set aside for.
Also it seems like it wouldn’t cost employers anything beyond what they’ve already committed to. Wouldn’t the contribution already have been on the books as an expense?
