DI Trust Fund Still Set To Reach Exhaustion In 2016
Media speculation that the Disability Insurance Trust Fund might get some more time before reserves run out went unfulfilled today.
The Social Security Board of Trustees issued its 2014 report on the long-term financial status of the trust funds, and stated the DI Trust Fund exhaustion date remains 2016. According to the 2014 report, the fund will run out of its reserves in the fourth quarter of 2016 leaving 81 percent of benefits payable through incoming revenue.
The report reaffirms the need for Congress to tackle this issue in the near future in order to maintain full benefits for SSDI recipients. Last week’s hearing by the Senate Finance Committee reviewed the routine option for lawmakers to reallocate tax revenues between the Old-Age and Survivors Insurance Trust Fund and the DI Trust Fund to continue fully funding SSDI beneficiaries. As reported at the hearing, reallocation of revenue has been enacted 11 times in the past by Congress.
The funding issue is likely to surface again Thursday, July 31, as the Senate Finance Committee holds a hearing on the nomination of Carolyn Colvin to the post of Social Security Administration commissioner.
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