In a previous blog post we highlighted the fact that the Social Security Old Age and Survivor’s Trust Fund looks to be in good shape for years to come and that the fund continues to take in more money than it is paying out. In political and economic terms we call this a surplus. Although we cannot claim the same for the Disability Insurance Trust fund, things are getting better.
Social Security also recently released its final numbers for 2015 on the performance of the Social Security Disability Insurance (SSDI) Trust Fund.
Prior to the end of 2015 Congress approved shifting funds from the Old Age and Survivor’s Trust Fund to the SSDI Trust Fund because the SSDI Trust Fund was running low and in danger of being able to pay just 80 percent of benefits to disabled workers. As we said, the Old Age and Survivor’s Trust Fund is in good shape and the SSDI Trust Fund not so much, but there is certainly room for optimism.
Regardless of additional money coming from the other Trust Fund, the SSDI Trust Fund is moving in the right direction.
For example, in 2011 Social Security took in more than $106 billion, but paid out more than $132 billion, which resulted in a more than $26 billion deficit. For the next couple of years the deficits increased as it grew to more than $31 billion in 2012 and more than $32 billion in 2013. This trend reversed in 2014 as the deficit declined to a little more than $30 billion in 2014 and shrunk to less than $28 billion in 2015, the lowest deficit since 2011.
Obviously if the trend continues, which is expected, the SSDI Trust Fund will move closer to a balance, which is good for not only disabled workers, but also those who received benefits from the Old Age and Survivor’s Trust Fund.
For more information about the Trust Fund click here.
