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madville

(7,397 posts)
Mon Apr 8, 2013, 12:38 AM Apr 2013

SSDI 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/




10 replies = new reply since forum marked as read
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SSDI trust fund depleted by 2016 (Original Post) madville Apr 2013 OP
...and you have to hire a lawyer to get SSDI ...and wait for at least 2 years. L0oniX Apr 2013 #1
With a diagnosis of Metastatic Renal Cell Carcinoma GiveMeFreedom Apr 2013 #10
Facts here. Its been discussed. elleng Apr 2013 #2
The report covers that madville Apr 2013 #4
Yes, and the SS Commissioners' letter says: elleng Apr 2013 #6
It's not a cause for concern unrepentant progress Apr 2013 #3
It covers that in the report I referenced madville Apr 2013 #5
No depletion, elleng Apr 2013 #7
So the SSA report is wrong? madville Apr 2013 #9
Hi, progress! elleng Apr 2013 #8
 

L0oniX

(31,493 posts)
1. ...and you have to hire a lawyer to get SSDI ...and wait for at least 2 years.
Mon Apr 8, 2013, 12:45 AM
Apr 2013

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)
10. With a diagnosis of Metastatic Renal Cell Carcinoma
Mon Apr 8, 2013, 01:29 AM
Apr 2013

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)
2. Facts here. Its been discussed.
Mon Apr 8, 2013, 12:47 AM
Apr 2013

'Yet, the series aired on NPR sensationalizes this growth, as well as the DI trust fund’s 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 funds–about 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 nation’s Social Security system.'

http://www.democraticunderground.com/101660179

We could live without alarmists, thanks.

madville

(7,397 posts)
4. The report covers that
Mon Apr 8, 2013, 12:52 AM
Apr 2013

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)
6. Yes, and the SS Commissioners' letter says:
Mon Apr 8, 2013, 01:09 AM
Apr 2013

'Congress has "reallocated" payroll tax revenues across the OASI and DI trust funds–about 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.

3. It's not a cause for concern
Mon Apr 8, 2013, 12:51 AM
Apr 2013

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.

The growth that we’ve seen was predicted by actuaries as early as 1994 and is mostly the result of two factors:baby boomers entering their high -disability years, and women entering the workforce in large numbers in the 1970s and 1980s so that more are now "insured" for DI based on their own prior contributions. The increase in the number of children receiving SSI benefits in the past decade is similarly explained by larger economic factors, namely the increase in the number of poor and low-income children. More than 1 in 5 U.S. children live in poverty today and some 44 percent live in low-income households. Since SSI is a means-tested program, more poor and low-income children mean more children with disabilities are financially eligible for benefits. Importantly, the share of low-income children who receive SSI benefits has remained constant at less than four percent.

...Since Social Security was enacted, Congress has "reallocated" payroll tax revenues across the OASI and DI trust funds–about 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)
5. It covers that in the report I referenced
Mon Apr 8, 2013, 12:55 AM
Apr 2013

If they get money from the other trust funds it will last through 2027 until all funds are depleted.

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