The Social Security board of trustees released its annual report yesterday on the long-term financial status of the Social Security Trust Funds with some good news<\/p>\n
The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance trust funds are projected to become depleted in 2035\u2014one year later than projected last year, with 80 percent of benefits payable at that time.<\/p>\n
The OASI trust fund is projected to become depleted in 2034, the same as last year\u2019s estimate, with 77 percent of benefits payable at that time. <\/p>\n
The DI Trust Fund is estimated to become depleted in 2052, which is 20 years beyond last year\u2019s estimate of 2032, with 91 percent of benefits still payable.<\/p>\n
In the 2019 Annual Report to Congress, the Trustees announced:<\/p>\n
\u2022\u00a0The asset reserves of the combined OASI and DI trust funds increased by $3 billion in 2018 to a total of $2.895 trillion.
\n\u2022\u00a0The total annual cost of the program is projected to exceed total annual income, for the first time since 1982, in 2020 and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2020. Social Security\u2019s cost has exceeded its non-interest income since 2010.
\n\u2022\u00a0The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is now 2035\u2014gaining one year from last year\u2019s projection. At that time, there would be sufficient income coming in to pay 80 percent of scheduled benefits.
\n\u201cThe trustees recommend that lawmakers address the projected trust fund shortfalls in a timely way in order to phase in necessary changes gradually and give workers and beneficiaries time to adjust to them,\u201d said Nancy A. Berryhill, acting Social Security commissioner. \u201cThe large change in the reserve depletion date for the DI Fund is mainly due to continuing favorable trends in the disability program. Disability applications have been declining since 2010, and the number of disabled-worker beneficiaries receiving payments has been falling since 2014.\u201d<\/p>\n
Other highlights of the trustees report include:
\nTotal income, including interest, to the combined OASI and DI Trust Funds amounted to just over $1 trillion in 2018. ($885 billion from net payroll tax contributions, $35 billion from taxation of benefits, and $83 billion in interest)<\/p>\n
\u2022\u00a0Total expenditures from the combined OASI and DI Trust Funds amounted to $1 trillion in 2018.
\nSocial Security paid benefits of nearly $989 billion in calendar year 2018. There were about 63 million beneficiaries at the end of the calendar year.
\nThe projected actuarial deficit over the 75-year long-range period is 2.78 percent of taxable payroll \u2013 lower than the 2.84 percent projected in last year\u2019s report.
\nDuring 2018, an estimated 176 million people had earnings covered by Social Security and paid payroll taxes.
\nThe cost of $6.7 billion to administer the Social Security program in 2018 was a very low 0.7 percent of total expenditures.
\nThe combined Trust Fund asset reserves earned interest at an effective annual rate of 2.9 percent in 2018.<\/p>\n
The board of trustees usually comprises six members. Four serve by virtue of their positions with the federal government: Treasury Secretary Steven T. Mnuchin as managing trustee; Berryhill; Health and Human Services Secretary Alex M. Azar II,; and Labor Secretary R. Alexander Acosta. Two public trustee positions are currently vacant.
\nView the 2019 Trustees Report at\u00a0www.socialsecurity.gov\/OACT\/TR\/2019\/. (PR)<\/p>\n","protected":false},"excerpt":{"rendered":"
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