If action is not taken, the Disability Insurance trust fund will not be able to pay full scheduled benefits by 2016. Workers and employers pay for disability protection through FICA taxes, deducted from wages and matched by the employer. The total tax is 6.2 percent of earnings (with ceilings). 5.3 percent of that tax goes into the Old-Age and Survivors Insurance (OASI) trust fund, sometimes call the retirement fund. The remaining 0.9 percent goes into the Disability Insurance trust fund. The Disability Insurance trust fund is expected to be depleted in 2016. After that date, taxes coming into the Disability trust fund would cover only about 76 percent of scheduled benefits. The trust fund has faced such emergencies before and Congress has never allowed the benefits to drop. A typical fix would be to temporarily allocate more of the 6.2% tax from the OASI (retirement) fund to the Disability fund. That would mean that both funds could pay full be...
The Forsythe Firm Social Security Disability Specialists--Fighting for your disability benefits so you don't have to. Free case evaluations. Huntsville (256) 799-0297 Nashville (615) 732-6159