What the media usually talks about when they mention that Social Security is running out of money are Social Security retirement benefits. As far as retirement benefits go, those funds are expected to run out decades down the line, assuming nothing changes by then, which is unlikely. A more pressing concern, though, is the financial state of Social Security disability benefits.
Three Years Left for SSDI Benefits?
Several newspapers have run articles in recent weeks about the fact that disability benefits will start running out of money around 2015 or 2016. In this case, “disability benefits” refers specifically to Social Security Disability Insurance (“SSDI”) benefits and not SSI benefits.
The source of funding for SSDI benefits is the same as that for retirement benefits – the Social Security Trust Fund, which draws money in from the Social Security payroll tax. The Trust Fund is divided into two parts: the Old-Age and Survivors Insurance (“OASI”) part and the Disability Insurance (“DI”) part. Supplemental Security Income (“SSI”) benefits, although administered by the Social Security Administration, come up from an entirely different source of funds.
SSDI and retirement benefits fall under a category of federal spending known as mandatory spending. Congress and the President do not negotiate mandatory spending every year; Congress has to pay mandatory spending items unless it changes the law. SSDI benefits will continue to be paid, but, if it starts running out of money, there will be consequences for SSDI beneficiaries, which we go into on Wednesday.
SSDI benefits play a big role in keeping families out of poverty, particularly in smaller communities. Do you or a family member suffer from a severe disability? A Tulsa Oklahoma Social Security disability attorney can provide you with guidance on qualifying for disability benefits.
Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys