I posted this on the Bakeen oil blog "Million Dollar Way". The best blog on North Dakota oil.

http://milliondollarway.blogspot.com/2011/01/social-security-now-running-deficit-not.html#comment-form
On a practical note "assumed income" could look at things like the current market cost of housing versus the actual housing costs paid by the person.  To give a personal example I paid off my mortgage in 2005 and my housing is zero debt. My real time housing costs are quite low, probably $1K per month less than market rent.  Would this be "assumed income" if SS were means tested?

We have a real "slippery slope" here if some bureaucrat starts to define "assumed income" in means testing for SS.

As for getting both pensions and SS I have a good county/state level pension which was basically a "shotgun IRA".  I had 5% taken out of my check for three decades.  We also had a portfolio manager who staunchly resisted "political statement divestitures".  He had a 30 year annual return of 11% before the 2008 crash.
Other local pension funds never met a divestiture they didn't like and their rate of return over the same period is 0% to 4%.

Anyway, I'd stay start with a benefits freeze so there is pressure to look at the "slush fund" aspects of SS.

I follow this stuff.  This was long but I need a new spiel to cross post on my http://65y.com blog.

Minnesota Governor Mark Dayton opposes letting states declare bankruptcy.

http://blogs.twincities.com/politics/2011/01/dayton-opposes-letting-states.html

Dayton opposes letting states declare bankruptcy

By Bill Salisbury on January 25, 2011 3:44 PM | No Comments

Gov. Mark Dayton today announced his opposition to federal proposals to offer states bankruptcy protection.
That puts the DFL at odds with former Republican Gov. Tim Pawlenty, who earlier this week said bankruptcy protection is worth considering to enable states to avoid costly pension liabilities.
Here's Dayton's statement:

St. Paul--Governor Mark Dayton, who serves on the Executive Committee of the National Governor's Association, stands in support of the statement issued this morning by Washington Governor Chris Gregoire and Nebraska Governor Dave Heineman, Chair and Vice Chair of the NGA:

"The nation's governors strongly oppose federal proposals to provide states with bankruptcy protection.

"Allowing states to declare bankruptcy is not an authority state leaders have asked for nor would they use. The mere existence of a law allowing states to declare bankruptcy only serves to increase interest rates, raise the costs of state government and create more volatility in financial markets."

While Minnesota faces a serious $6 billion deficit in the next biennium, Governor Dayton is committed to balancing the budget, as required in the State Constitution, using a fair and balanced approach. Filing for bankruptcy to avoid pension liabilities would not be a viable option for Minnesota.

Governor Dayton said, "Taxpayers expect government to be responsible with their money, investing in essential government services like education and infrastructure and that is what we must do to get Minnesota working again. State government will be held accountable for how we balance the budget, and not to file for bankruptcy to avoid our financial obligations."

Additionally, Gov. Dayton points to the 2010 Pension Reform Act as an example of proactive reform on the part of the state to create cost savings while protecting Minnesota retirees. The Pension Reform Act, which received bipartisan support in the legislature and was signed into law by Governor Pawlenty, shows that there are proactive alternatives to bankruptcy for states in financial crisis. The measure lowered pension costs by nearly $6 billion.

The 2010 Pension Reform Act includes provisions to increase vesting periods, increase employer and employee contribution rates, lower deferred interest rates for inactive members and lower refund interest rates. At the end of FY2010, the Minnesota State Retirement System, the Public Employees Retirement Association and the Teachers Retirement Association combined have lowered their unfunded liability by over $5.5 billion.

A pension is a contractual obligation between workers and their employer and the pension system does not add to the state's deficit. Ninety percent of retired public workers continue to live in Minnesota after retirement, and their spending stimulates the state economy and adds jobs in local communities.

States Warned of $2 Trillion Pensions Shortfall

http://www.cnbc.com/id/41129099

US public pensions face a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.   (READ MORE AT LINK)

Europe starts confiscating private pension funds.

http://washingtonexaminer.com/blogs/beltway-confidential/2011/01/europe-starts-confiscating-private-pension-funds

The U.S. isn't the only place that's facing a major pension fund crisis. The Christian Science Monitor has this alarming report:

People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.

The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.

The article goes on to detail other pension grabs in Bulgaria, Poland, France and Ireland. Obviously, this is a cautionary tale for America. If fiscal austerity becomes a real issue in the U.S. the way that it's been reaching critical mass in Europe -- don't think that U.S. lawmakers regard your either your personal wealth or money they might owe you as sacrosanct. Government has a habit of looking out for itself.