Social Security Old-Age and Survivors Insurance, and Disability Insurance (OASDI)
Trust Funds are projected to become depleted in 2034, the same as last year’s
projection, with 79% of benefits payable in 2034. The DI Trust Fund itself will become depleted in 2023,
seven years further out than last year’s projection of 2026, with 89% of
benefits payable in 2023.
The annual report of the Social Security Trust Funds also indicated that total assets of the OASDI Trust Funds increased by $23 billion in 2015 to a total of $2.82 trillion. The combined trust fund reserves are still growing and will continue to do so through 2019. However, beginning in 2020, the total cost of the program is expected to exceed income. In order for the combined OASDI funds not to become depleted in 2034, Congress will need to take some action, the Social Security Administration said.
“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,” said Carolyn Colvin, Acting Commissioner of Social Security. “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 allocation. Now is the time for people to engage in the important national conversation about how to keep Social Security strong.”
The report also indicated that total income to the OASDI Trust Funds was $920 billion in 2015, while total expenditures were $897 billion to a total of 60 million Social Security beneficiaries. The projected actuarial deficit over the 75-year-long projection is 2.66% of taxable payroll, 0.02 percentage points smaller than last year’s report. During 2015, 169 million working Americans contributed to Social Security through their payroll taxes.
The annual report can be viewed from here.