New estimates say the trust fund that supports Social Security disability payments will run out of funds by 2017. Unless there is action in Washington, the program will be unable to pay full benefits to those who have been deemed disabled by the Government.
Social Security Administration Commissioner Michael J. Astrue commented on the news:
“It’s primarily economic desperation. People on the margins who get bad news in terms of a layoff and have no other place to go and they take a shot at disability.”
In the past 10 years, applications for Social Security disability benefits have boomed almost 50 percent. There are many factors to this rise, but many cite the down economy and baby boomers as the catalyst. This isn’t the first time the future of the Social Security disability fund has been on the brink of insolvency.
In 1994, Congress combined the retirement and disability funds to ensure the program did not become insolvent.
- Social Security disability on verge of insolvency (New Orleans City Business)
- Report: Disability fund losing cash (Politico)
- The latest economic worry – Social Security disability (NC Policy Watch)