Will There Be Deep Social Security Benefit Cuts In 2016?

Photo of piggy bankFor months, people have been worried about issues with the Social Security disability trust, which was projected to run out of money later this year. Legislators in Washington and here at home have been arguing about the topic furiously, but solutions have been hard to come by.

Will There Be Deep Social Security Benefit Cuts In 2016?

Many senators have called for a reform of the SSDI system. Their goal is to make the system stricter than it already is to decrease Social Security fraud, but some question whether fraud is the problem with the system. The fraud incidence rate for Social Security is less than 1 percent, and measures could make the system even more difficult for people with disabilities to claim their benefits.

To prevent certain security measures—and even longer waits for people waiting for their benefits—the Senate voted to shift tax revenue from the Social Security retirement fund to the disability trust. Since the retirement fund has enough money to last until 2035, the transfer should give legislators more time to figure out solutions to keep the disability trust healthy.

This move will help keep the Social Security disability trust funded for another seven years, and will prevent a 19 percent cut in benefits, which could cost many claimants $193 a month. However, the system still has problems to be worked out, but by working together we can hopefully figure out solutions that will balance the disability trust and allow more Americans with real disabilities to get the help and benefits that they need.

From the attorneys at Troutman & Troutman, helping Oklahomans with disabilities through their applications and appeals.

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