Social Security Annual Report: No Change in Trust Fund

Posted on Jul 29, 2014

The Social Security Board of Trustees released it annual report on July 28, 2014. The report for the disability trust fund again shows that it will not be able to make full benefit payments beginning in 2016 unless congressional action is taken. The report showed that the combined trust fund consistently of retirement, survivors and disability had no change from last years report. The combined funds are slovent until 2033.The report calls for legislative action. In the past, congressional action has consisted of reallocating the trust funds to assure solvency. This action has occurred over 11 times in the last 30 years. The reallocation of funds has been split evenly between the funds.Reallocation does not involve an increase in taxes only a temporay shift in funds. In the past this action has occurred without controversy. The shortfall of funds was predicted in 1983 when actuaries raised the retirement age.The factors contributing to the shortfall include the aging of the baby boomers, increase of the number of women in the workforce, expansion of coverage to more workers and to a small extent the recent recession.

What happens if Congress takes no action? The disability fund will only be able to pay 81% of benefits. Acting Commissioner Colvin stated, "But the fact remains that Congress can ensure the long-term solvency of this vital program by taking action.,..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."

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Timothy J. Cuddigan
Omaha Social Security and Veterans Disability Lawyer With Over 40 Years Experience