The annual report released today by the Social Security Board of Trustees said the year the combined assets of the Old-Age and Survivors Insurance, and Disability Insurance (OASDI) Trust Funds are projected to become depleted is unchanged from predictions last year, with 77% of benefits still payable at that time. The DI (Disability Insurance) Trust Fund will become depleted in 2016, also unchanged from last year’s estimate, with 80% of benefits still payable.
The Social Security Board of Trustees also found that:
- The combined trust fund reserves are still growing and will continue to do so through 2020. Beginning with 2021, the cost of the program is projected to exceed income;
- The projected point at which the combined trust fund reserves will become depleted, if Congress does not act before then, comes in 2033; and
- The projected actuarial deficit over the 75-year long-range period is 2.72% of taxable payroll — 0.05 percentage point larger than in last year’s report.
“The Social Security Trust Funds’ projected depletion dates have not changed, and three-fourths of benefits would still be payable after depletion,” said Carolyn W. Colvin, acting commissioner of Social Security. “But the fact remains that Congress needs to act to ensure the long-term solvency of this vital program. The projected year for Disability Insurance Trust Fund depletion remains 2016, and legislative action is needed as soon as possible to address this financial imbalance.”
Other highlights of the report include:
- Income including interest to the combined OASDI Trust Funds amounted to $840 billion in 2012 ($590 billion in net contributions, $27 billion from taxation of benefits, $109 billion in interest, and $114 billion in reimbursements from the General Fund of the Treasury—almost exclusively resulting from the 2012 payroll tax legislation);
- Total expenditures from the combined OASDI Trust Funds amounted to $786 billion in 2012;
- Non-interest income fell below program costs in 2010 for the first time since 1983. Program costs are projected to exceed non-interest income throughout the remainder of the 75-year period;
- The asset reserves of the combined OASDI Trust Funds increased by $54 billion in 2012 to a total of $2.73 trillion;
- During 2012, an estimated 161 million people had earnings covered by Social Security and paid payroll taxes;
- Social Security paid benefits of $775 billion in calendar year 2012. There were about 57 million beneficiaries at the end of the calendar year;
- The cost of $6.3 billion to administer the program in 2012 was a very low 0.8% of total expenditures; and
- The combined Trust Fund asset reserves earned interest at an effective annual rate of 4.1% in 2012.
The report, as well as related information, can be found at http://www.socialsecurity.gov/OACT/TR/2013/.