Posted By Golson, McCracken Inc. || 4-Aug-2015

In an alarming new report, the trustees of the Social Security Disability trust fund confirmed what many financial experts have been predicting for some time: that the money used to support SSD beneficiaries could run out as early as late next year. If no action is taken, the trust fund depletion could result countless beneficiaries having their benefits cut by 19%.

As The New York Times and other news outlets report, the trustee announcement from last month again highlights a deep, bipartisan divide in Congress. President Obama and democrats have proposed replenishing the SSD fund by shuttling money from the Social Security Retirement fund—which is how the SSD fund has been replenished many times in the past.

However, Republicans, who currently control the majority in Congress, claim that merely transferring funds is insufficient and doesn’t address the larger financial issues that stand to threaten many public programs in the years to come. The White House has proposed combining the SS disability and retirement funds to keep both programs solvent through 2034, but that solution has been largely unpopular among Republicans.

“A Deep, Abrupt Cut in Benefits”

As The New York Times notes, the SSD program is a much-relied on branch of Social Security. Many of those with current SSD benefits were earning less than $43,000 at the time they became disabled. Among the 11 million people who now receive SSD benefits, the average annual allowance is only $14,000. A 19% drop of that kind of income could be devastating for both individuals and entire households that depend on disability benefits. For a more in depth look at this story, our firm recommends a recent episode of “The Diane Rehm Show” podcast.

At Golson, McCracken Inc., we know firsthand just what a difference Social Security Disability benefits can make in the lives of those who can no longer work to properly support themselves. If something isn’t done in Washington, these programs are in a very real danger and the well-being of millions of Americans in need could be jeopardized. We encourage you to email your Congressmen and Congresswomen and make them aware of just how important this issue is for our communities.

If you need assistance applying for and receiving Social Security Disability benefits, we invite you to contact our team of dedicated North Carolina SSD representatives today.