There have been many articles in the past year about how the Social Security Disability Insurance (SSDI) program and the Supplemental Security Income (SSI) program will run out of money in late 2016. This does not mean the funding will run out entirely, but there will only be enough money to fund 80 percent of all benefits claims. In other words, if something isn’t done soon, anyone receiving a benefits award will have their check cut by around 20 percent. This is estimated to be around 10 million Americans who will be hurt if something isn’t done soon.
In the past, Congress would just allocate money from the Social Security old age and retirement fund and use it to fund the disability benefits fund. The reason this was possible is because the money withheld from your paycheck to pay for Social Security goes into two separate funds. While the United States Social Security Administration runs both funds, since they are designed for different purposes, the money must be used for its respective purpose. However, in the past, Congress could easily reallocate money. Not only is this possible, it would be rather painless, since the retirement fund has full funding until the year 2034. If one year of funding was taken from the retirement fund, meaning it would only be funded until 2033, that would be enough money to fund the Social Security Disability Insurance program for the next dozen or so years. Continue reading