Social Security Disability Fund Set to Run Out of Money in 2016
There are approximately 11 million people throughout the United States who receive Social Security disability benefits, but according to the federal government, there will be some steep cuts coming to those benefits next year unless Congress acts quickly.
The trustees who oversee Social Security said the trust fund for disability benefits will run out of money toward the end of 2016, which would lead to an automatic 19 percent slash in the amount of benefits people receive. To avoid this cut, Congress would have to take some quick action.
One simple fix would be to shift some tax revenue from the Social Security retirement fund. Congress has taken such action in the past, and it makes some economic sense to do so, as the retirement fund is significantly larger. However, while the move has support from President Barack Obama, congressional Republicans say they want there to be some changes made to the Social Security disability program to reduce instances of fraud and to encourage disabled workers to attempt to get back in to the work force.
Right now, the average monthly benefit amount received by disabled workers and their families is $1,017. If the benefits would get cut, the average family would see benefits reduced by nearly $200 per month. Trustees say the retirement fund currently has enough money to pay full benefits until 2035, at which point it will still collect enough through income tax to pay about 75 percent of benefits.
To learn more about issues affecting the amount of Social Security disability benefits you might receive, contact the knowledgeable North Carolina attorneys at Lanier Law Group.