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US & WorldPoliticsSocial Security Solvency in Adopting Rules for the 114th Congress

Social Security Solvency in Adopting Rules for the 114th Congress

Section 3, Subsection q, page 7 of the new 114th Congressional rules (H. Res. 5) includes a provision to block shift funding of Social Security Disability Insurance (SSDI).

Disability Insurance (DI or SSDI) is the largest income replacement group program run by the United States federal government. In November 2014, the Disability Insurance program paid benefits to almost 8.4 million disabled beneficiaries.

According to a Summary of the 2014 Annual Reports, “DI Trust Fund reserves expressed as a percent of annual cost (the trust fund ratio) declined to 62 percent at the beginning of 2014.” The Trustees projected in the annual report that the trust fund would deplete in late 2016. The trustees continue that the “DI costs have exceeded non-interest income since 2005 and the trust fund ratio has declined in every year since peaking in 2003.”

In 2006, David Autor and Mark Duggan wrote on behalf of the National Bureau of Economic Research, that the growth of SSDI usage had been the loosening of the SSDI screening process that took place in 1984, following the signing into law of the Social Security Disability Benefits Reform Act of 1984 (P.L. 98-460).

Social Security Solvency. Subsection (q) creates a point of order against legislation that would reduce the actuarial balance of the Federal Old-Age and Survivors Insurance Trust Fund, but provides an exemption to the point of order if a measure improves the overall financial health of the combined Social Security Trust Funds. This subsection would protect the Old-Age and Survivors Insurance (OASI) Trust Fund from diversion of its funds to finance a broken Disability Insurance system.
LPH
Layne Heinyhttp://www.layneheiny.com
LPH is a high school physics teacher interested in the Apple iPad and iPhone, Microsoft Surface, Tablet PCs, and other mobile devices. He resides with one large dog who begs for pizza, hamburgers, French fries, and anything else on the dinner table.

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