Disability Trust Fund In Jeopardy
CONGRESS MUST REPLENISH THE TRUST FUND
For more than two decades, Congress has been fully aware that in 2016 is would need to replenish the Social Security Disability Insurance Trust Fund. They must replenish it, in order to continue paying full Social Security Disability benefits for recipients. Despite this commonly known fact, on January 6, 2015, the House of Representatives adopted rules of procedure that bar the House from making a reallocation that would stabilize the Disability Trust Fund through 2033 without accompanying cuts to Social Security Eligibility, coverage, or benefits. The House adopted this rule the night before the vote, with no debate and no opportunity for input from the public.
The adopted rule only affects the House, not the Senate. The House can vote to waive the rule’s requirements to allow reallocation, but they have unnecessarily blocked the simple and sensible way to take care of the shortfall. The sensible choice, which has been used before, is reallocation.
DO NOT RAISE TAXPAYER CONTRIBUTIONS
Over the last five decades, on a bipartisan basis, Congress has repeatedly addressed shortfalls in both of Social Security’s two funds. The two funds are the Old-Age and Survivors Insurance Trust fund and the Disability Insurance Trust Fund. A temporary shift of Social Security’s incoming revenues to the Disability Insurance Trust Fund – called reallocation – will extend the Disability Insurance Trust Fund’s solvency for almost two decades, without cutting coverage, eligibility, or benefits.
Reallocation does not have to increase taxpayer contributions. Also, reallocation has happened 11 times in the past, about equally in both directions. Sometimes, reallocating more to the Disability Insurance Trust Fund and sometimes, more to the OAS Trust Fund. Using reallocation, the solvency of the overall Social Security system stays the same, with the combined funds remaining fully solvent through 2033. See NOSSCR Social Security Forum, Volume 37, Number 1, January 2015.
President Obama’s proposed SSA budget for the fiscal year 2016 included a provision for a five-year reallocation, starting January 2016, to shore up the Disability Insurance Trust Fund. While we can debate whether or not reallocation is a proper long-term solution. It is certainly a simple short-term solution that does not raise taxes. Additionally, it does not put beneficiaries in jeopardy of losing their benefits.
If you have questions about your disability case in Utah, Nevada, Idaho, or California, then call us. Or, contact Cannon Disability Law using this website. We can help you apply for disability benefits at www.ssa.gov. We want to be your disability team. Contact us for free. We do not charge an attorney fee until we win your case. If we do not win your case, you will not owe an attorney fee. You have nothing to lose by requesting your free consultation. Don’t wait. Call today.