PREDICTING WHAT MAY COME
The Increase and Decrease of Social Security Trust Funds
In late April, the Social Security Board of Trustees reported that the financial health of the Federal Disability Insurance Trust Fund had the capability to pay benefits until 2065. This 13-plus year extension is due to several reasons. As people grow older and leave Social Security disability in favor of retirement, or grow older and pass away, it results in an increase of trust fund savings. The more people who aren’t receiving those funds means there is a higher amount for those individuals who will remain for many years. However, with the COVID-19 pandemic, it’s highly possible these positives may be negated. Although it’s unsure what the effects will be, I believe increased unemployment combined with a possible payroll tax cut could have negative impacts. Because of the financial difficulties thousands of Americans are now finding themselves in, it’s speculated that the trust fund savings may be depleted far earlier than first depicted.
Despite being surrounded by unknown variables, it is possible to theorize how this may happen. The Bipartisan Policy Center has come up with several different methods the COVID-19 virus can be an influence in the coming years by looking back to the Great Recession from 2007–2009. They speculate that if the country experiences a second Great Recession — either on the same level or worse than the first recession — it could lead to the depletion of trust funds as early as 2026. While this drop may be alarming, it’s important to keep in mind it is just speculation for the time being. The data we’re receiving now may be outdated in a month or even a week from now. As we continue to push through this crisis and more current information becomes available, I will be sure to keep everyone as updated as possible.
COVID-19’S IMPACT ON SOCIAL SECURITY DISABILITY
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isn’t working because they lost their job, but they are able to work and are looking for a new job. The unemployment benefits are to help them in the meantime. By contrast, when someone applies for disability, they’re saying they are ready and willing to work full time, but the mental or physical problems they have cause significant problems and limitations that keep them from working consistently. In my experience, if a judge sees that someone applied for disability as soon as they stopped receiving unemployment, without a new diagnosis or any solid evidence that their condition has worsened, there may be trouble. Anyone who has been diagnosed with COVID-19 and wants to apply for disability might want to talk to someone who knows what they’re doing before making a decision about the best direction for them to go. If you feel overwhelmed, uncertain, or have any questions about how the virus may impact you, call my office.
–Brian Gillette
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