Tag Archives: social security trust fund

Social Sec.: From Controversial to Near Universal Support

“Never in the history of the world has any measure been brought here so insidiously designed as to prevent business recovery, to enslave workers and to prevent any possibility of the employers providing work for the people.” Did you think this was a quote from the recent debates surrounding Obamacare? In fact, the quote comes from a 1935 statement regarding passage of the Social Security Act, which instituted benefits for retired Americans and those whose loved ones passed away. Just as much animosity surrounded other landmark legislative events like the expansion of Social Security into providing disability benefits and the creation of Medicare to provide healthcare for our nation’s senior citizens. We look at these programs much differently today in 2012 than at the time of their passage. Social Security in general today enjoys wide spread support from conservatives and liberals alike. Here are some recent poll numbers regarding Social…
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How SSI Benefits Differ From SSDI Benefits

In Wednesday’s post, we discussed how SSDI benefits are a form of insurance, because you can only receive them if you have worked long enough to have paid enough in FICA taxes to be eligible for the benefits. SSI benefits often get lumped in with SSDI benefits, but the two have important differences. The one trait they do share is that the Social Security Administration uses the same criteria of “disability” to evaluate eligibility for both types of benefits, but that is about where the similarities end, however. SSI or Supplemental Security Income benefits are not a type of disability insurance like SSDI is. SSI benefits are a form of financial assistance for low income, disabled Americans. President Nixon created SSI in 1974 in order to standardize the way that states were providing the same type of benefits. Nixon brought all those different programs under the auspices of SSI, a…
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SSDI Benefit Cuts May Be Around the Corner

What the media usually talks about when they mention that Social Security is running out of money are Social Security retirement benefits. As far as retirement benefits go, those funds are expected to run out decades down the line, assuming nothing changes by then, which is unlikely. A more pressing concern, though, is the financial state of Social Security disability benefits. 3 years left for SSDI benefits? Several newspapers have run articles in recent weeks about the fact that disability benefits will start running out of money around 2015 or 2016. In this case, “disability benefits” refers specifically to Social Security Disability Insurance (“SSDI”) benefits and not SSI benefits. The source of funding for SSDI benefits is the same as that for retirement benefits – the Social Security Trust Fund, which draws money in from the Social Security payroll tax. The Trust Fund is divided into two parts: the Old-Age…
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