Social Security Trustees: Disability Insurance Program Will Be Insolvent in 2016
The Social Security Disability Insurance (SSDI) Trust Fund is on course to run dry in 2016, at which point it will be able to pay only about 80 percent of current benefits. Despite health improvements and technological advancements, the SSDI rolls have continued to rise, with more than 5 percent of working-age individuals now receiving benefits. Substantial inefficiencies, adverse incentives, outdated standards, and widespread fraud and abuse plague the program. These problems should not be ignored by allowing SSDI to raid the Old-Age and Survivors Insurance (OASI) Trust Fund through a payroll tax reallocation. Lawmakers should provide limited borrowing for SSDI—conditioned on the enactment of substantial reforms to improve the integrity and long-run solvency of the SSDI program.