Chuck Blahous of the Mercatus Institute, one of Social Security’s public trustees, has a very good article over at e21 on the impending insolvency of Social Security’s Disability Insurance program:
The problem in a nutshell is that Social Security’s disability trust fund is running out of money. The latest trustees’ report projects a reserve depletion date in late 2016. By law Social Security can only pay benefits if there is a positive balance in the appropriate trust fund (there are two: one for old-age and survivors’ benefits (OASI), the other for disability benefits). Absent such reserves, incoming taxes provide the only funds that can be spent. Under current projections, by late 2016 there will only be enough tax income to fund 81 percent of scheduled disability benefits. In other words, without legislation benefits will be cut 19 percent.
Check out the whole article here.