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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSSDI trust fund depleted by 2016
Haven't heard anyone mention this before. SSDI (Disability Insurance) started running a deficit in 2005 and will deplete it's trust fund by 2016.
"However, the Disability Insurance (DI) program satisfies neither the long-range test nor the short-range test. DI costs have exceeded non-interest income since 2005, and the Trustees project trust fund exhaustion in 2016, two years earlier than projected last year. The DI program faces the most immediate financing shortfall of any of the separate trust funds; thus lawmakers need to act soon to avoid reduced payments to DI beneficiaries four years from now."
http://www.ssa.gov/oact/trsum/
L0oniX
(31,493 posts)What are you supposed to do while waiting? Live in the streets? Eat at free food lines? Beg from churches? Well at least we can afford to have continual wars.
GiveMeFreedom
(976 posts)in hand, the SS agents will hand you SSDI in two weeks, if you live that long. I know I am that person with the diagnosis. So far I have outlived my prognosis and loving it, although I am getting sicker. It's been two years now since I retired. Peace.
elleng
(130,156 posts)'Yet, the series aired on NPR sensationalizes this growth, as well as the DI trust funds projected shortfall. History tells a less dramatic story. Since Social Security was enacted, Congress has "reallocated" payroll tax revenues across the OASI and DI trust fundsabout equally in both directions some 11 times to account for demographic shifts. In 1994, the last time such reallocation occurred, SSA actuaries projected that similar action would next be required in 2016. They were right on target. We are deeply concerned that the series Unfit for Work failed to tell the whole story and perpetuated dangerous myths about the Social Security disability programs and the people helped by this vital system. We fear that listeners may come away with an incorrect impression of the program as opposed to an understanding of the program actually based on facts.
As former Commissioners of the agency, we could not sit on the sidelines and witness this one perspective on the disability programs threaten to pull the rug out from under millions of people with severe disabilities. Drastic changes to these programs would lead to drastic consequences for some of America's most vulnerable people. With the lives of so many vulnerable people at stake, it is vital that future reporting on the DI and SSI programs look at all parts of this important issue and take a balanced, careful look at how to preserve and strengthen these vital parts of our nations Social Security system.'
http://www.democraticunderground.com/101660179
We could live without alarmists, thanks.
madville
(7,397 posts)If all the trust funds are used to cover all the projected shortfalls, everything is depleted by 2027. Some action will have to be taken by 2016 however to use the regular SS trust fund to cover the DI shortfall.
elleng
(130,156 posts)'Congress has "reallocated" payroll tax revenues across the OASI and DI trust fundsabout equally in both directions some 11 times to account for demographic shifts. In 1994, the last time such reallocation occurred, SSA actuaries projected that similar action would next be required in 2016. They were right on target. We are deeply concerned that the series Unfit for Work failed to tell the whole story and perpetuated dangerous myths about the Social Security disability programs.'
SS and Congress KNOW what they're doing, and are perfectly prepared for 2016.
unrepentant progress
(611 posts)The Social Security trustees are not idiots.
Here's an open letter from eight former Social Security administrators that was written in response to the outrageously misleading NPR report. In part it explains why SSDI has grown so much, how it was projected for back in 1994, and what has been done about it in the past.
...Since Social Security was enacted, Congress has "reallocated" payroll tax revenues across the OASI and DI trust fundsabout equally in both directions some 11 times to account for demographic shifts. In 1994, the last time such reallocation occurred, SSA actuaries projected that similar action would next be required in 2016. They were right on target.
http://socsecnews.blogspot.com/search/label/Campaign%20Against%20Social%20Security%20Disability
As the Boomers die off, and the economy improves, the number of people receiving disability insurance benefits will shrink -- just as it will for regular old-age Social Security benefits. All that's required right now is for Congress to reallocate monies across the trust funds. Granted, given the current crop of obstructionists in Congress that might seem precarious, but short of a coup, this too shall past.
madville
(7,397 posts)If they get money from the other trust funds it will last through 2027 until all funds are depleted.
elleng
(130,156 posts)as we continue to pay into the program.
madville
(7,397 posts)The trust funds won't be depleted within the next 20 years?
elleng
(130,156 posts)Funny meeting you here!