The Social Security Board of Trustees recently released its annual report on the long-term financial status of both the retirement and disability trust funds indicating there was no change in the projected year of trust fund reserve depletion. Is this good news or bad news?
I guess it depends on if you are a cup is half-full or half-empty type of person.
The good news is the trust fund is not expected to be depleted any sooner than expected, but the bad news is there was also no projected extension of how long it will take before both funds run out.
Although the retirement and survivor trust fund is expected to be depleted by 2033, the more pressing issue is with the disability insurance trust fund that is expected to be depleted by 2016. This does not mean that all the money in the disability insurance trust fund will be gone by 2016, but it does mean that during the year of 2016 only about 81 percent of total benefits will be payable. Considering we are past the halfway point of 2014 there is some reason to be alarmed, the Social Security commissioner is.
“The disability insurance Trust Fund’s projected depletion year remains 2016, and legislative action is needed as soon as possible to address this financial imbalance,” Social Security Acting Commissioner Carolyn Colvin said.
All of this information is certainly not news as Congress has known for decades that, eventually if nothing is done, the Social Security disability insurance Trust Fund would run dry.
The question remains, when will Congress act to extend the life of the disability insurance trust fund. If we are not at the midnight hour of this issue we are certainly at the 11 p.m. hour and it has to concern people when the agency’s own commissioner is begging congress to act.
To see the full report click http://www.ssa.gov/OACT/TR/2014/.
