Social Security Disability Fund Could Run Out

[Better Believe It]

3. The projected shortfall is neither a surprise, nor a matter of great concern.

From the Strengthen Social Security Coalition


Concern has been raised that as early as 2017 the Social Security Disability Insurance Trust Fund will not be able to pay 100 percent of promised benefits. This is easily remedied by reallocating revenues from the much larger Old Age and Survivors Insurance Trust Fund to the Disability Insurance Trust Fund. Congress has done reallocations between trust funds several times before. Combined, both programs are fully funded for the next 25 years or more. Such a reallocation does not require any benefit cuts or revenue increases.

The projected shortfall in the Disability Insurance trust fund, projected to occur as early as 2017, is neither a surprise, nor a matter of great concern.

•Social Security’s income and assets are held in two trust funds, the Old Age and Survivors Insurance Trust Fund (OASI) and the smaller Disability Insurance Trust Fund (DI). •OASI represents about 82 percent of total Social Security spending; DI represents about 18 percent.
•Social Security’s major source of income is from a 12.4 percent levy on wages up to $106,800, assessed on both employers and employees. Of those payroll tax contributions, 10.6 percent goes to the OASI Trust Fund, and 1.8 percent goes to DI. Neither fund can pay benefits unless it has sufficient income and assets to cover costs.

Read the full article at:

http://strengthensocialsecurity.org/disability-insurance-news-flash-no-news-here