Social Security Fund Trust Report Shows Improvement over Last Year But Depletion Is Still on the HorizonBy Kenton Koszdin Law Office on May 1, 2019 | In Social Security Disability
In the most recent annual report published by the Trustees for the Social Security Funds, the prediction date for when the old age fund will be depleted – 2034 – remains unchanged from last year. However, the outlook for the disability fund has improved dramatically, pushing the depletion date back to 2052 from 2032.
The annual Trustee report, issued April of each year, calculates how long each Social Security Fund will last, accounting for taxes coming into the funds and beneficiary payments going out. The depletion dates are when each of the funds is expected to run out of money so only incoming taxes will support benefit payments.
The Disability Insurance Trust Fund makes Social Security Disability (SSDI) payments to disabled workers and their families. Benefits for retired workers, their families and the families of deceased workers are paid out of the Old-Age and Survivors Insurance (OASI) Trust Fund.
These payments are big numbers, with the combined Social Security disability and old-age benefits totaling $853 billion in 2018.
Why the Major Shift that Extended the Depletion Date for the Disability Fund?
The dramatic 20-year extension of the Disability Trust Fund has several rationales including:
- Favorable experience for SSDI applications, which have regularly declined since 2010. Our thriving economy is part of the reason as employment is easier to find.
- Favorable experience for SSDI beneficiary awards.
- A declining birth rate which allows the Funds to predict that there will be fewer SSDI applicants in the future.
What Will Happen If Congress Allows the Funds to Reach Their Depletion Thresholds?
When each of the funds is depleted, the current plan is that beneficiaries will continue to receive payments but in reduced amounts:
- SSDI recipients will receive 91% of their monthly benefit
- Recipients of the Old Age (retirement) payments will receive 77% of their monthly benefit
However, it is very unlikely that Congress will let this issue go unresolved. Taken together, the funds for both SSDI and retirement benefits will last one year more than last year’s report indicated. The combined funds will be depleted in 2035. Our legislators must take action well before that date to keep these programs solvent.
Let Us Help with Your Workers’ Compensation Claim
If you or a loved one has been denied Worker’s Compensation or Social Security Disability (SSD) benefits, it’s important to get an attorney experienced in these types of cases involved immediately. Call our Los Angeles County office at 800.438.7734 for your initial free consultation, either in our office or in the comfort of your own home. The Kenton Koszdin Law Office, Social Security attorney in Van Nuys, can help you navigate the application process for the best possible outcome for you and your family.