SSDI Funds Might Be Depleted by 2016
The Heritage Foundation recently released a report, “Social Security Disability Insurance Trust Fund Will Be Exhausted in Just Two Years,” that details the rapidly decline Social Security Disability Insurance (SSDI) Trust Fund and the need for reform.
The report reviews The 2014 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, often just simply referred to as the 2014 OASDI Trustees Report, which provides the current and projected status of the fund. As it stands, the fund is rapidly declining. “Without reform, all beneficiaries could face a nearly 20 percent cut in benefits beginning in 2016,” the Heritage report explains.
What’s amiss with SSDI funding?
SSDI benefit payouts have been rapidly expanding, which is quickly depleting the allotted resources. The report explains that the SSDI program as doubled since 2000, which is likely the result of various factors.
- the aging baby booming population.
- increased number of women in the workforce (and therefore, an increased number of people eligible for SSDI).
- increased retirement age.
- broadening definitions of disability.
- and, increased value in benefits.
Potential Benefit Reductions
The OASDI Trustees Report notes that at the current rate, the SSDI Trust Fund will be depleted in the fourth quarter of 2016. This could cause an average of a $218 (20 percent) reduction for beneficiaries. Many people rely heavily (or solely) on their SSDI payments, and these potential benefit reductions could be devastating.
The OASDI report recommends increasing the revenues to the DI Trust Fund, reducing costs by modifying the SSDI benefit level, adjusting eligibility requirements, or some combination of methods to preserve the DI Trust Fund reserves.
Obtaining Legal Help for SSDI Benefits
If you are applying for or have been wrongly denied of SSDI benefits, you can call Disability Help Group for help. Contact us today to speak to one of our disability representatives and learn about see how we may be able to assist you: 1-(800)-800-3332.