Social Security
Social Security refers to the federal Old-Age, Survivors, and Disability Insurance (OASDI) program passed in 1935. Social Security is a social insurance program that is primarily funded through dedicated payroll taxes called Federal Insurance Contributions Act tax (FICA). Tax deposits are formally entrusted to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund. According to the 2012 Annual Report of the Social Security Trustees, Social Security’s expenditures exceeded non-interest income in 2010 and 2011, the first such occurrences since 1983, and the Trustees estimate that this deficit will continue. The deficit of non-interest income relative to expenditures was about $49 billion in 2010 and $45 billion in 2011, and the Trustees project that it will average about $66 billion between 2012 and 2018 before rising steeply as the number of beneficiaries continues to grow at a substantially faster rate than the number of covered workers. After 2020, Treasury will redeem trust fund assets in amounts that exceed interest earnings until exhaustion of trust fund reserves in 2033.
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Social Security Disability Insurance Program is Financially Unsustainable

9/15/15
from NCPA,
9/8/15:

Social Security's disability fund will be depleted within the next year.

Social Security needs a long-term solution as soon as possible. The 2015 Social Security Board of Trustees' report indicates that within the next year the disability fund will be depleted. In fact, the Disability Insurance (DI) trust fund has an increasing gap between the amount it receives and the amount it pays out, writes Veronique de Rugy of the Mercatus Center. - The Disability Insurance fund has operated with deficits since 2009. - Benefits have doubled between 1998 and 2014, from $70 billion to $142 billion. - In previous years deficits were financed by government securities, accrued during years that Social Security was generating a surplus, but all stockpiles will be obsolete in year. Possible policy options include short term solutions such as raising payroll taxes to cover the deficits, or shifting assets to cover the Disability Insurance fund. However, these are simple solutions to a complex problem and will result in even greater damage in the long run.

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