The Social Security cash crunch Congress can't ignore

CNN Money ^ | June 17, 2014 | By Jeanne Sahadi

[Oldeconomybuyer]

It's highly unlikely that Congress will reform Social Security any time soon.

But there is a near-term cash crunch in one part of Social Security that lawmakers must resolve in the next year or two.

The trust fund for Social Security disability benefits, which is separate from the fund for retirement benefits, is on track to be insolvent -- most likely by the end of 2016 but no later than 2017.

So unless Congress acts to replenish the fund beforehand, the program will only be able to pay an estimated 80% of promised benefits to 8.8 million disabled workers, plus the benefits paid to their spouses and dependents if the disabled worker was the primary breadwinner.

[TurboZamboni]

They can just deem it paid.

[I am Richard Brandon]

What percentage of the payments is made to fraudulent claims?

[babygene]

“What percentage of the payments is made to fraudulent claims?”

A lot more than 20% I would bet...

[Pontiac]

Congress is largely populated by misfits and cowards.

[Pentagon Leatherneck]

I wonder what the recent upsurge of “disabilities” under the Obama administration has to do with bringing on the insolvency.

TC

[Ruy Dias de Bivar]

The social Security system is fine. Here is the promise from 1984! You do TRUST the Government programs don’t you? (Snark)

http://www.socialsecurity.gov/history/ssa/usa1964-2.html

Self-Supporting

“The program is designed so that contributions plus interest on the investments of the social security trust funds will be sufficient to meet all of the costs of benefits and administration, now and into the indefinite future—without any subsidy from the general funds of the Government.

Both the Congress and the Executive Branch, regardless of political party in power, have scrupulously provided in advance for full financing of all liberalizations in the program.”

And HERE is where YOUR money goes! Read and weep!

http://www.socialsecurity.gov/OACT/ProgData/fundFAQ.html#n4

[I cannot think of a name]

psssst.

Remember when clintoon “ended welfare as we know it”?

Revert to the disability laws of 1991 and see what happens to this problem.

(As with most things the bent one ‘accomplished’ the way to end something is just to hide it someplace else.)

[WVKayaker]

What percentage of the payments is made to fraudulent claims?

I met a guy a couple of months ago that draws "SS disability". He is in his 40's.

His disability? He is so damned fat that he can do nothing but sit around and eat! His attitude is that he is owed those payments because he cannot get a job due to his "disability".

In the meantime, I am 66 and still working so I can keep things from going south when the payments I receive cannot be made by a broke Fedrool Gum't. I paid into the SS system for 46 years, and will never receive that money bank, much less with interest! With all of the farad and waste today, I see small chance that they can continue. Of course, their best chance is with inflation eating my dollars away.

Did anybody foresee hamburger for $6 a pound, milk at $5 a gallon, or home heating costs for $1200 per month?

[TexasGator]

“Did anybody foresee hamburger for $6 a pound, milk at $5 a gallon, or home heating costs for $1200 per month? “

Where are you?

Here hamburger is $3.69, milk about $4 and my Jan heating bill was $130.00 including hot water.

[grania]

what percentage of the payments is made to fraudulent claims?

Not just fraudulent, but claims that go on far longer than they had to. When unemployment rates skyrocketed, you also had people whose handicaps might not have disqualified them for a more robust job market, but their disabilities now make them rely on those checks and that medical service.

I have a relative who has been on disability for over 15 years. Once one gets on disability, it's very difficult to break loose. The person gets whatever care they give them, can't get a little better for fear of losing the benefits, and is pretty much stuck where their medical care is. They can't have much in the way of assets, they can't get part time work without it cutting into their benefits and maybe eliminating them. On disability besides medical they get a disability check, food stamps, ObamaPhones.

I see what it can do to a perso. It's heartbreaking. If anyone needs to go on disability, the smartest thing they can do, if it's possible is to get out of that downward spiral ASAP.

JMHO

[WVKayaker]

Where are you?

I am not paying those prices. I read about them online (and everybody knows that everything online is true!). I only used those to illustrate what is in the future for us "old folks".

I moved to the Philippines last year. I live in a beachfront 3-bedroom house ($275 a month rent), have a full-time live-in housekeeper/cook ($55 a month), pay 189PhP ($3.90) for a kilo (2.2 pounds) of ground round, and pay only $140-150 month for air-conditioning/electricity (No HEAT necessary, thanks. We have plenty!!!) I pay about $40 a month for two satellite boxes with too many channels (including FoxNews), and $70 a month for DSL/Phone.

I have a sweet Filipina wife of 30, and life is better than good! We starred a Pizzeria/coffee shop/ bakery business in January, and the income already pays for all that. In addition, it keeps me from getting so fat like the guy I mentioned, and keeps me busy and out of trouble! I enjoy the people that come here, as the Filipinos are some of the friendliest, family-oriented people on Earth!

(Typical Pinoy family photo taken from internet!)

[neocon1984]

I have done a lot of SSD evaluations as a psychologist. A LOT of people try to collect based on depression, stress and unemployability (e.g., a prison record). Every state is different in how they handle the claims. Unfortunately, if people hire the right lawyers, a judge will overturn initial administrative denials.

[OldPossum]

So, you’re 66 and have a wife of 30. Interesting.

Have you met AlexW? He is 69 or so, lives in The Philippines with his wife and son of 3 years of age, so I imagine she is within that age group.

[WVKayaker]

So, you’re 66 and have a wife of 30. Interesting.

It is not unusual here. The culture is such that age is not as important as personal security. That is something we all seek. Here, there are many ladies of all ages looking for a mate and "foreigners" are prime pickings.

Wages here for a good job are 300-400 Ph Pesos per day, or around 10-12000 per month. The exchange rate is now 44 +/-, so that is around $200-300 monthly income.

My wife and I were brought together through a mutual friend, who also has a Filipina wife. I subscribe to a Yahoo group (Living in the Philippines) and see the trials and tribulations of folk living with or hoping to find a mate here. Most that find one have a good life with a good mate. Some of the girls are pure gold-diggers, but most are just hoping to not have the same life in which they were raised.

My sweetie's family lives in rural Davao del Norte, in a "hollow block" house on a dirt/gravel road, in an area with frequent flooding. They got their household water from a hand-dug well in the yard, and scoop the water with a plastic bucket on the end of a bamboo pole, when I first visited there. I bought and installed a hand-pump, and water line from a holding tank, which is elevated and provided gravity flow. The first time I saw their well, I decided to help, after looking at the eyeballs looking at me (frogs) from the water.

Life is different here, but it is better than the one I was living there...

[OldPossum]

Got good life insurance? With that wide disparity in ages, it’s almost a 100 percent guarantee that she will be a widow.

[WVKayaker]

With that wide disparity in ages, it’s almost a 100 percent guarantee that she will be a widow.

You sure seem worried about it. Maybe too much.

You say 100% guarantee? You don't know my family history, nor hers. You only look at numbers on a computer screen and make an ASSumption, based on your reading of what I stated. Ha!

My family has many members still alive in their 90's and even an Aunt and Uncle that were in the 100+ side of life. I am in good health.

Filipino longevity is much shorter, due to life issues of being raised in poverty and want. Early medical care is available only to the wealthy, and there are not that many here.

Yes, there is a good chance she will survive me, but not 100%. My life assurance policy is to establish a good business model, give her a good foundation, and try to live as long as I can.

I am buying property and will build a nice home in her province on a productive farm which will will provide for her latter years, and give me something to stay busy. I hope you have done as much for your spouse, if you have one!

[OldPossum]

I do have a spouse and she is five years older than I. Given that women live longer on average than men, there’s a very good chance that we will expire at about the same time.

And she is provided for, by her own efforts, having a very good pension plan. Additionally, we have financial assets in common.

I would add that American men tend to marry women younger than themselves—but not 33 years younger! That’s another generation younger. Given that men, on average, live shorter lives than women accounts for the huge number of widows in this country. That makes for a lot of unhappiness.

[Chickensoup]

That makes for a lot of unhappiness.

_______________

That is a big assumption OP. LOL

[OldPossum]

Oh sure, I imagine it’s a real blast to be a widow. Sorry, overlooked that possibility.