Synopsis: Social Security report states combined asset reserves of Old Age, Survivors Insurance, and Disability Insurance (OASDI) Trust Funds projected to become depleted in 2034.
The Social Security Board of Trustees has just released its annual report on the long-term financial status of the Social Security Trust Funds.
The combined asset reserves of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected last year, with 79 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2023, extended from last year's estimate of 2016, with 89 percent of benefits still payable.
In the 2016 Annual Report to Congress, the Trustees announced:
"I am pleased that Congress passed legislation, signed into law by President Obama last November, to avert a projected shortfall in the Disability Insurance Trust Fund. With the small, temporary reallocation of the Social Security contribution rate, the DI fund will now be able to pay full disability benefits until 2023, and the retirement fund alone will still be adequate into 2035, the same as before the reallocation," said Carolyn W. Colvin, Acting Commissioner of Social Security. "Now is the time for people to engage in the important national conversation about how to keep Social Security strong. The public understands the value of their earned benefits and the importance of keeping Social Security strong for the future."
Other highlights of the Trustees Report include:
The Board of Trustees usually comprises six members. Four serve by virtue of their positions with the federal government: Jacob J. Lew, Secretary of the Treasury and Managing Trustee; Carolyn W. Colvin, Acting Commissioner of Social Security; Sylvia M. Burwell, Secretary of Health and Human Services; and Thomas E. Perez, Secretary of Labor. The two public trustee positions are currently vacant.
View the 2016 Trustees Report at www.socialsecurity.gov/OACT/TR/2016/