Is the Social Security Fund Out of Money?

Everyone has heard the rumors that the Social Security Administration (“SSA”) is running out of money. Earlier this month, SSA released its annual report, which explains the realities of the situation. While the combined trust fund reserve is still growing, it is expected to exceed the income the trust fund is bringing in, starting in 2020. This means that if Congress does not address the depletion beforehand, SSA will only be able to pay recipients 79% of their scheduled benefits beginning in 2034.

SSA also revealed that it paid out benefits of $886 million in 2015. These benefits were issued to 60 million beneficiaries last year.

Take a look at the report and spend some time perusing the numbers. It helps to explain why the SSA has become a hot button this election year, as it is quite apparent that changes must be made to ensure that this vital beneficiary system can provide for future generations.

Got a question about SSDI or SSI that you need us to answer? Please check out our website at www.westcoastdisability.com . We try to provide you with helpful information on our website that will allow you to successfully navigate the Social Security Disability process. Also, feel free to email me your questions at megan@westcoastdisability.com or call me at (800) 459-3017 x 103.

 

California Public Employees Beware: You May Be Opting Out of Social Security for You and Your Family

California has provisions that prevent certain public workers from “double-dipping” from both state pensions and Social Security benefits. Such provisions affect some teachers, police officers, firefighters, and other public civil servants. Prior to 1983, public employees could collect a state pension and Social Security earned from other types of work that they performed in the private sector. Congress, however, prohibited certain public employees from receiving both a state pension and Social Security in 1983.

Thus, even if you paid into Social Security for many years, you may be forfeiting your right to collect Social Security benefits that you earned in the private sector once you become a public employee of the State of California. Your children and spouse are also prohibited from collecting survivor’s benefits on your Social Security number if you become a public employee who is prohibited from “double-dipping.” This is the case even if your child or spouse never worked in the public sector.

U.S. Senator Dianne Feinstein is hoping to get this law changed so workers are entitled to the benefits they worked hard to obtain. In the meantime, however, always check with your human resource department when starting a new job to see what benefits you are entitled to and to make sure you are not inadvertently opting out of your Social Security benefits.

For more information on the possible pitfalls of public pensions, please read: http://www.nbclosangeles.com/news/local/Ripoff-Social-Security-and-California-Teachers.html

Got a question about SSDI or SSI that you need us to answer? Please check out our website at www.westcoastdisability.com . We try to provide you with helpful information on our website that will allow you to successfully navigate the Social Security Disability process. Also, feel free to email me your questions at megan@westcoastdisability.com or call me at (800) 459-3017 x 103.