Is the Social Security Disability Fund Disappearing?

According to the Social Security Administration (SSA), the Social Security Disability Insurance Trust Fund will run out of money in 2016.

Once that happens,  at least eleven million disabled Americans face these steep cuts in their benefits, beginning next year. 

Here’s why: The number of workers paying into the system is going down; the number of folks who are getting older and becoming disabled is going up.

But this is not the first time the Social Security Disability Insurance Trust Fund has faced insolvency. It happened in  the 1990’s and Congress found a solution:  it moved money from retirement funds to disability funds.  It’s also gone the other way.  In 1983, money to the Disability Fund was reduced and given to the Retirement Fund.


The acting Social Security Commissioner supports doing this again and says it wouldn’t affect the solvency of the Social Security program.  But some in Congress want changes in the disability program and see this as an opportunity.

Stay tuned, it’s likely to be the eleventh hour before this giant problem is addressed and in the meantime, a lot of folks are going to have to sweat it out.

Author: Cheryl Coon