For years Social Security’s trustees (of which I am one) have warned that lawmakers must act to address the troubled finances of the program’s disability insurance (DI) trust fund. Congress has nearly run out of time to do so. Legislation will be required during this Congress or, at the very latest, in a rush at the beginning of the next one, to prevent large sudden benefit cuts. The House of Representatives recently passed a procedural rule to prepare for the coming legislative debate. In this column I explain the issues in play.
The Problem
The problem in a nutshell is that Social Security’s disability trust fund is running out of money. The latest trustees’ report projects a reserve depletion date in late 2016. By law Social Security can only pay benefits if there is a positive balance in the appropriate trust fund (there are two: one for old-age and survivors’ benefits (OASI), the other for disability benefits). Absent such reserves, incoming taxes provide the only funds that can be spent. Under current projections, by late 2016 there will only be enough tax income to fund 81 percent of scheduled disability benefits. In other words, without legislation benefits will be cut 19 percent.
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4 comments:
NO problem. The govt will just transfer funds from the old-age funds to keep the loafers on the dole, then decrease social security payments again..
not everyone is a 'loafer' most were harder working people who by no fault of their own have become unable to work. I am one of those. if not for ssd I would have NOTHING coming in. You try to survive like that.
Yet, we just gave Pakistan another 250 million bucks only because they support Muslim terrorists.
Hate to say it but I have seen many who are on Disability and they are getting around better than me and I am a full time/own my own business person.
To the point, they really could work if they wanted to but why when they get paid to not work. My health has deteriorated over the years but I still go into my office every day even though I have health issues. I happen to know several people who are milking the system who really are able to work but won't work because then their free money stops.
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