[tabi] SSDI benefits soon to be cut by 20%

  • From: "Chip and Allie Orange" <acorange@xxxxxxxxxxx>
  • To: <tabi@xxxxxxxxxxxxx>
  • Date: Wed, 31 Dec 2014 16:55:01 -0500

Hi all,


When I went looking for an article to provide an update on the SSDI funding
emergency, I found this report from the Heritage Foundation:





I've excerpted a summary of the report below; it was written last August.
I'm wondering if anyone has any newer information?



"...Status of the DI Trust Fund 

In 2013 the DI program marked its fifth straight year of deficits, with the
trust fund declining $32.3 billion (26 percent) from $122.7 billion to $90.4
billion. Each dollar in benefits was met with only 75 cents in payroll tax
contributions. According to the Social Security trustees' intermediate
projections, the DI program faces a 10-year projected shortfall of $267

In actuarial terms, the 2013 deficit amounted to 0.32 percent of taxable
payroll. To keep the DI trust fund solvent over the next 75 years, benefits
would need to be cut by almost 20 percent immediately or the DI payroll tax
would need to increase 17 percent. As discussed below, the program's history
of shortfalls suggests that these estimates may understate the true

As the DI program continues to pay benefits in excess of contributions, the
DI trust fund is projected to be exhausted at the end of 2016. At that
point, incoming contributions will be sufficient to cover about 80 percent
of benefit payments. Absent legislation to reform the program or reallocate
or borrow resources, benefits will be cut across the board when the trust
fund runs dry.  ... "


Chip Orange


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