Recently in Social Security Solvency Category

Seniors Facing Inconvenience with Increased Social Security Office Closures

August 21, 2014

Baby boomers may be most in need of Social Security payments. However, seniors are likely to find it more and more difficult to apply for disability benefits, or appeal rejected disability claims, because many Social Security offices around the country are facing closure.

The Social Security Administration blames budget crunches and shortage of resources for this increased number of closures. The agency has been closing down a record number of offices. As a result, more and more seniors are being forced to go online to get help for their Social Security benefits claims, instead of walking into an office.

Since 2010, the Social Security Administration has closed down 64 field offices across the country. That is the largest number of such office closures over a five-year period in the agency's history. The agency has also decided to close down 533 temporary mobile offices that were specifically situated to serve claimants in remote areas.

There are only approximately 1,235 field offices that are still open, but in many of them, hours have been reduced, so that the agency can continue to maintain these offices while maintaining control over its finances.

A congressional report criticizes the agency's position, and specifically calls into question the criteria for making the decision to close down field offices. It recognizes that these closures have the hardest impact on seniors because less are likely to use online services.

Child Victims of Gun Crimes and Social Security Benefits

June 12, 2014

Georgia recently became the most gun-friendly state in the country when a piece of legislation became law that allows people to take guns into schools, bars and churches.

Governor Nathan Deal recently signed the bill, officially allowing licensed gun owners in the Peach State to carry their weapons everywhere in the state, except the Capitol Building. So if you enter a church, bar, school, or even Hartsfield-Jackson International Airport, there are likely to be people carrying guns around you. The law, called the Safe Carry Protection Act of 2014, allows people to carry almost everywhere, but also permits local businesses to decide whether they want to allow guns on their property.

The most debated part of this legislation is that which involves guns inside schools. Even if a school decides to choose not to allow guns inside campus, there are likely to be bitter and very acrimonious debates and lawsuits involving the issue of guns in classrooms.

According to data published in the journal Pediatrics, the majority of child gunshot injuries involve intentional assault with a firearm. More than 4,500 gunshot injuries are the result of intentional assault. Roughly 2,000 are accidental injuries, and 270 are the result of suicide attempts. Typically, the kinds of injuries that result from such gun violence are fractures, open wounds, heavy bleeding or catastrophic brain or spinal injuries. The challenges the United States faces with respect to gun violence is significant, with a fatality rate for gun violence that is approximately 10 times the rate in other developed countries.

Social security disability benefits can be available to families who must care for a child injured by a gun or other weapon. The most important thing you can do after a tragic event involving injury to a child is plan for their future physical and emotional needs. It's not easy, but it's an important step in making sure your child and your family are cared for.

Policy Group Comes out in Support of Social Security

September 28, 2012


With all this election-year talk of "victims" and "47 percentages," many Americans are understandably concerned about the state of Social Security and their continued eligibility for benefits. Last month, the Center on Budget and Policy Priorities, which is a nonpartisan policy group working on policy and public programs that affect Americans in low and moderate income groups, released a report that supported the continuance of Social Security benefits.

In the report, the Central Budget and Policy Priorities says that the Social Security Disability Insurance program provides very vital and important benefits to workers, who have no other way of earning an income after they suffer disabilities or medical impairment.

The Center for Budget and Policy Priorities report takes aim at those critics of Social Security who say that spending on Social Security is out of control. The report clearly speaks out against those allegations, saying that much of the rise in federal disability payments is a result of demographic factors.

For instance, there has been a slow and steady aging of the American population and an increase in the number of baby boomers. There has been an increase in the number of women who are working, and an increase in the Social Security retirement age. There are other external factors like financial crises and the resulting economic downturn that have also contributed to higher numbers of payments being made by Social Security.

The Center for Budget and Policy Priority is calling on policymakers to address the depletion of the Social Security Disability Insurance program, in order to avoid shortfalls in the future.

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Lisa Siegel is a Social Security disability lawyer, helping persons with disabilities in the metro Atlanta region recover their rightful disability benefits. If you are eligible for Social Security, and have had a claim denied, speak with us to learn your rights.

SOCIAL SECURITY: IS IT SOLVENT, WILL IT CONTINUE TO MAKE PAYMENTS AND WHAT DOES THE FUTURE HOLD?

May 30, 2012


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According to the 2012 Board of Trustees Report for the Social Security and Medicare Trust Funds, released on April 23, 2012, the funds, though relatively stable, are being impacted by the recession. The 2012 report finds that, if no Congressional action is taken, the Social Security Old Age and Survivors Insurance (OASI) will be able to pay 100% of scheduled benefits until the year 2033. Following that, scheduled benefits would still be paid at a reduced level of about 75% after 2033 using incoming payroll tax revenue. However, the need to shore up the Disability Insurance (DI)Trust fund is much more immediate with exhaustion projected to occur in 2016. Although like the OASI fund, the DI fund would continue to pay 75% of scheduled benefits with incoming payroll tax revenue.

There are two Social Security Trust Funds - The Old Age and Survivors (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. The Social Security program administers benefits through a social insurance program. It is funded through payroll FICA taxes. The employer and employee each pay 6.2% of earnings (or 4.2% for the 2011-2012 temporary payroll tax holiday for the worker portion) and 1.45% of earnings for health insurance under Medicare Part A up to an income cap of $110,100 a year. The portion of this premium that pays for disability insurance is .9%. The remainder pays for Old Age and Survivors Insurance (OASI). Today 1 in 6 Americans receives Social Security.

News reports that Social Security is soon to be "bankrupt" are misleading. The 2012 Trustees Report found that Social Security is 100% solvent through 2033. In 2011, Social Security had a surplus. Social Security revenue plus interest income was in excess of outgoing payments by $69 billion dollars. Reserves are projected to grow to $3.1 trillion by the end of 2020. After 2033, if Congress takes no action, workers and employer contributions alone will cover 75% of scheduled benefits.

Actuaries anticipate there will be a shortfall by 2033 of 25% of income over outgo due to the number of baby boomers reaching age 65 and increasing longevity of many seniors. Without an increase to the Social Security contribution rate, a gap will likely occur. .

Many news reports also inaccurately suggest that the increasing number of disabled workers has affected the long-term solvency of these funds. In August 2011, 8.5 million former workers received disabled workers benefits, as did 1.8 million of their children. Recipients of SSDI have nearly doubled between 1995 and 2011. The number of beneficiaries increased in a large part because women have now been in the workforce long enough to be insured for benefits; and a large number of baby boomers entered their disability prone years. One solution to this more immediate concern relating to Disability Insurance is for Congress to authorize inter-fund borrowing or re-allocate the 6.2% between the two funds.

In the current political climate, many people may wonder whether the United States can continue to afford the Social Security program. One helpful way to evaluate this is to compare the benefits scheduled against the size of the US economy. Social Security benefits are now 4.9% of the United States economy or Gross Domestic Product (GDP) and are projected to rise to 6.4% in 2035 remaining between 6.0 to 6.1% through 2090. This increase is smaller than the growth in spending that occurred when baby boomers entered public school.

The average disabled worker receives $1,070/month or about $12,820 a year. The poverty guideline in this county is $10,890 a year. Those workers with one or more dependent children had average family benefits of $1,640.00 or $19,690 a year. The poverty guidelines for a family of three are $18,530.00.

For many recipients of Social Security, this is their main form of income. Nearly one-half (46%) of disabled worker beneficiaries rely on benefits for 90% or more of their total income.

With many seniors and disabled American citizens relying so heavily on Social Security benefits, it is incumbent on lawmakers to act now to phase-in long-term solutions to these challenges.