While we celebrated the 80th anniversary of Social Security last week, we will be the first to admit that there are still challenges its programs face. The Associated Press had an interesting story recently discussing the Social Security Disability Insurance (SSDI) program and its ongoing funding hurdles. Many experts say the easiest way to deal with this issue would be to shift tax revenues from the Social Security Administration’s (SSA) retirement fund to the SSDI program.
Nevertheless, this fix is running into problems, because as the AP noted, “Republicans in Congress are resisting.” Unless Congress does something to alleviate funding issues soon, the SSDI trust fund is expected to exhaust itself in late 2016, which would trigger an automatic 19 percent cut in SSDI benefits for recipients.
According to the AP:
- The average monthly payment for SSDI recipients and their families is $1,019, or about $12,228 a year.
- A 19 percent cut would lower the average annual benefit to less than $10,000.
- Federal law divides tax revenues between the SSDI trust fund and the retirement fund. The retirement fund gets about 85 percent of revenues and the rest goes to disability.
- The retirement fund has enough money to pay full benefits until 2035.
- If Congress redirects the tax revenue, the retirement fund would only lose one year of solvency.
When you review this information, a potential solution becomes clear: redirect the tax revenue. Additionally, as this information shows, many people who collect SSDI live modestly, and a 19 percent cut to their benefits would be catastrophic for their income.
Let Our Tulsa Social Security Disability Attorneys Help You
Our Tulsa Social Security attorneys will continue to update you about ongoing SSDI funding issues. While the news coming out of Washington may be negative, it is our hope that our officials will do what is best, and continue to fund the SSDI program at its current levels or better.
We suggest visiting our Social Security FAQ page if you have questions about qualifying for benefits. Our Tulsa disability attorneys represent disabled citizens who truly need assistance. You can reach us by calling the phone number or by using the contact form on this page.
Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys