It might seem curious, considering we have been living in the middle of a pandemic since March of this year due to COVID-19, but the Social Security disability trust fund has actually increased some compared to early 2019 when there was no pandemic.
The Social Security trust funds, both the retirement and disability funds, rely on funding through Social Security taxes, but since the pandemic began unemployment has increased resulting in less people paying Social Security taxes, but the Social Security disability trust fund has increased since the first quarter of 2019 when it was more than $96.5 million. According to Social Security, the trust fund was more than $97 million for the third quarter of 2020. Although Social Security is currently taking in less funds, reserves are increasing mainly due to less payments to Social Security disability recipients. The question is why is there fewer payments going to Social Security disability recipients?
There are a few potential reasons why this might be happening. One key factor is that Social Security closed all offices to the public back in March due to the pandemic. Social Security offices remain mostly closed, which is limiting the availability of many potential customers in applying for benefits. Social Security has allowed some in-office service by appointment only, but walk-in service has not been allowed for close to eight months. Social Security continues to serve customers online at its website, www.ssa.gov. Customers also have the option to obtaining services, including applying for benefits, by phone, but this can be problematic. Anyone who has tried to reach the Social Security Administration by phone knows it is not an easy proposition. Wait times for service by phone have always been long, and now that the number of phone calls to the agency has increased it has become even more difficult to obtain service by phone. These trends are likely to continue, at least in the short term, and may be the reason we are currently seeing less people receive disability payments.
