Following up on equine Social Security

Since the last Mane Attraction exclusively on Harnesslink, several questions have arisen on the particulars of this new, innovative Equine Social Security Program.

First and foremost, personally, I am not intelligent enough to put a plan of this magnitude together…but I have laid some groundwork here.—kind of food-for-thought.

It would take a group of very smart individuals to do so who would be dedicated to this just cause for our four-footed family members.

But, in my eyes, it could be something like this…

As mentioned in the last Mane Attraction, the Equine Social Security Program (ESSP) could be funded by a 1/2 of 1% Equine Social Security Tax (ESST) on total purses paid in the United States for any given year.

Last year, purses in the United States were $483,775,811, meaning that the ESST would be funded to the tune of $2,418,879.06 with similar amounts for funding accruing each year thereafter.

This, actually, is no different than the Social Security here in the U.S. as, virtually, EVERYONE in the workforce pays into Social Security…not knowing if they will ever reach the age of entitlement, currently 66 years and four months up to 67 years, depending on your birth year.

All horses foaled in the United States would be registered for ESSP with foreign bred horses also eligible by building up the necessary “points” based on seasons raced and number of starts, not knowing, of course, whether they will ever be eligible for benefits.

And, like our Social Security, all horses racing would be painlessly raying into the ESSP as they cross the wire with their 1/2 of 1% contribution as the dimes and dollars add up.

The best of the best will, no doubt, be taken off of the racetrack at age three, four or five. Many others will not be able to make it to age 10 or 12 as the racing wars take its toll.

The neat thing about this plan is—just like the Social Security program in the U.S. where every employee in the workforce pays into Social Security—every horse “working” on the racetrack would, indirectly, be paying a very small, virtually unnoticeable fee into the ESSP.

In the case of a winner going for a purse of $20,000 ($19,800 with ESST in play) and winning, its contribution to the ESSP would be $49.50) . In the case of a horse finishing 5th in a race with a purse of $4,000 ($3,980 after ESST), its contribution would be 99 cents (yes, less than one dollar.}

It’s the same premise that the 5% fee for trainers and drivers is now deducted…only 1/10th of that deduction for the ESSP/

The number of “points” required for participation in the program would have to be determined, however,, like the Social Security program in the United States, “points” would be accumulated on a capped yearly basis based on “x” number of based points with additional points earned by number of starts in a year, which could be classified in the following manner as a sample.

Horses registered for the ESSP program would get five (5) points with additional points added each year in the following manner…

Starts                                           Points

1-5                                                10

6-10                                              15

11-15                                            20

20 or more                                    25

In other words, Any U.S. bred horse would automatically have five (5) points to start with additional points added once they begin their respective racing careers.

A total of 250 points would earn a horse full participation in the ESSP with 200 points needed for 80% vesting, 150 points for 60% vesting, 100 points earning 40% vesting and 50 points earning 20% vesting in the program.

Eligibility would be automatic when the horse is required to retire—at 15—with early eligibility at an age to be determined, possibly age 10 or 12 with those horses allowed 75% of the benefits earned, again, similar to the U.S. program with those folk eligible at 62 with limited benefits.

There would be a disability clause with younger, disabled horses for horses 2 to 4 years-old with 37.5 points earning 15% participation, 5 to 7 with 75 points earning 30% participation and horses 8 to 10 years-old with 150 points earning 50% participation.

When purse checks, drivers checks and trainers’ checks are issued, one singular check could be written to the ESSP from each track, I.e. Meadowlands total purses on June 8 is $113,000 with $565 for the ESSP, $5,621.75 for driver’s fees, $5,621.75 for trainer’s fees leaving $101,191.50 for owner distribution.

Upon speaking about this innovative, overdue plan, one horseman said, “Great idea…but the horsemen will NEVER go for it!

But, think about this…

At Oak Grove Racing and Gaming on Sunday, purses total $139,000 and, under the ESSP plan, the contribution would be $695 with $6,950 fees for drivers deducted and the same 5% for trainers leaving $124,405 for the owners on this one day.

Before the hootin’ and howlin’ starts, remember that, based on pari-mutuel handle at the track, purses just might be in the $20,000 to $30,000 range for that day.

It’s the same situation for many of our tracks. If purses were based on handle, $20,000 purses would become $3,000 and $5,000 purses would struggle to be $1,000, so it’s not to much to ask to help get this program started.

We are talking peanuts here for the welfare of the warriors who keep this sport humming year-after-year and it’s about time something is done to save their lives and help other organizations do the same thing.

Yes, it’s the same “welfare” enjoyed by many horsemen racing at tracks with purses bolstered by a casino.

Last season, 17,031 horses raced in the United States (Canada added around another 4,000.)

A total of 472 were aged 12 and up…less than 3 percent!

So, what’s the bottom-line cost?

Well, if ALL of these 472 were to earn 100% ESSB (Equine Social Security Benefits) and received $200 per month, the cost would be $94,400 or $1,132,800 per year.

Of course, that number is inflated somewhat as only a handful of horses race at 14 for full benefits with horses 12 and 13 applying early, receiving 75% eligibility status.

The number of horses eligible will, of course, grow each year, so, the benefits pool will have to  be adjusted but there will also be attrition, as well.

With a three to five year buildup of funding when the program kicks off, the ESSP could be off and racing for standardbred horses with a $10,000,000 start, certainly incentive enough to save lives and prevent abuse and malnutrition.

As mentioned in the last Mane Attraction, there are many 501-C3 charitable organizations that protect the horse in its aged years and many of these horses become useful as therapeutic horses assisting “children of all ages” who have suffered traumatic circumstances.

Many are funded solely by donations, as evidenced by the Amateur Driving Clubs—the United States Harness Drivers Club, Meadowlands Amateur Drivers Club, The New England Amateur Drivers Club, the Great Lakes Amateur Driving Association and the American Harness Drivers Club, to name a handful.

Add to that our availability of “grants” made to places like the Standardbred Retirement Foundation, Volunteer Equine Advocates, Tomorrow’s Rainbow Steele Magnolia Sanctuary, Bit-By-Bit and so many others that devote their time and lives saving horses…all of a sudden, we’ve really got something!!

Monthly benefits could be substantial covering expenses to keep our equine heroes well fed, healthy and useful to society well after their racing days are over.

No more malnutrition…no more neglect…no more kill pen.

That last sentence, itself, should be enough to take action…

To read the first part of this column, click here.

by John Berry, for Harnesslink