Ever since the fiscal cliff, the nation’s eyes have been firmly set on the Social Security Administration and on whether the agency could staunch the flow of money from important government programs such as Social Security Disability and Supplemental Security Income. And while recent media outlets have been providing the nation with a bleak forecast that seems to be getting worse as the months go on, the Social Security Board of Trustees recently calmed concerns about the benefits’ trust fund in their May release of its annual report.
While the board acknowledged that the trust fund is spending more money than it is gaining, it once again affirmed that the projected 2033 depletion for OASDI (Old-Age and Survivors Insurance and Disability Insurance) and the 2016 depletion of the DI Trust Fund have remained unchanged since last year.
But despite quelling growing concerns that the funds would deplete faster than expected, Acting Commissioner Carolyn Colvin stresses that Congress needs to act on the fact that the cost of the programs exceed their income. It’s a point some of our readers may remember us making in a past post. Because even though the programs will still be able to pay out benefits even after their depletion dates, they will only be able to sustain about three-fourths of the programs’ beneficiaries.
Many Illinois residents, as well as others across the nation, worry about the state of Social Security and whether it will be able to sustain long-term stability for future generations. It’s projected depletion also raises questions about current and future claims. Will more applications be denied as a result of dwindling funds? Will beneficiaries be able to stay financially afloat after their benefits are reduced? And most important, has Congress considered any viable solutions to a problem that could impact hundreds of thousands of people nationwide?
Source: The Social Security Administration, “Social Security Board of Trustees: No Change in Projected Year of Trust Fund Reserve Depletion,” Press Release, Mark Hinkle, May 31, 2013