Many people may have missed this considering the busy holiday schedule during the last two months of 2015, but the headline is correct. Yes, the Social Security Disability Insurance (SSDI) Trust Fund is solvent through 2022. If this means nothing to you, you should know that less than a few months ago the SSDI Trust Fund was operating on fumes and it was estimated that SSDI recipients were set to face a nearly 20 percent reduction of benefits.
Routinely Congress has had the ability to shift funds between SSDI and the Social Security retirement Trust Fund to make-up shortages in either program, but a Republican controlled Congress took away this ability a year ago only to relent.
Congress removed this obstacle as part of the two-year budget deal passed and signed by President Barack Obama in early November.
Once again Congress was allowed to shift money between the two trust funds, which increased SSDI’s solvency through 2022.
As is the case when compromise comes into play there are people on both sides of this issue who are not overjoyed. Disability advocates can breathe a sigh of relieve that disabled workers who collect SSDI can count on current benefit amounts for at least the next seven years, but remain a bit annoyed because there was an opportunity to ensure the program was solvent through 2034 just like the retirement Trust Fund.
Those on the other side of the issue can take refuge in the fact that in seven short years, about the time another contentious presidential election is in full swing, the issue will be brought up again with an opportunity to make structural changes to the program.
The members of Congress are probably the biggest winners as they have ensured that tough questions about Social Security can be deflected for at least a few campaigns.
