Laws
governing the Social Security program and Trust Funds require the trustees to
release a report on the status of the Trust Funds. It’s supposed to be released by March 31st
of the year following the period being reported on. So the 2014 Trustee Report was due to be
released March 31st, 2014 covering 2013. But it wasn’t released on time. And it wasn’t released in April or May. And as of June 29th, it still
hadn’t been released.
Why
is it important for the report to be released in a timely manner? Any changes that might be indicated could be
considered during the current year’s budget cycle.
Beginning
with at least the 2005 report, the Trustees have been urging “The
projected trust fund (future) deficits should be addressed in a timely manner
to allow for a gradual phasing in of the necessary changes and to provide
advance notice to workers. The sooner
adjustments are made the smaller and less abrupt they will have to be.” Source: 2005 Trustee Report
But
one party has been standing in the way of those meaningful reforms. That party won’t even recognize that there is
a problem, let alone work towards a solution.
With Democrat Sen. Harry Reid acting as the Majority Leader in the
Senate, he issued the following claims while holding a “Hands Off Social
Security” rally.
‘“Social Security has not contributed one penny to the debt or the deficit.”
“It’s in great shape for the next many decades.”
“ Let’s worry about Social Security when it’s a problem – today it’s not a problem.”’
"Reid’s remarks on MSNBC last week that he would only be open to changing Social Security in 20 years.”
Source: March 28, 2011; The Fiscal Times; article by Michelle Hirsch
The
2014 Trustee Report included some concerning information. The Social Security Disability Trust Fund was
expected to run out of funds in 2016.
All the Social Security Trust Funds were projected to run out of funds
by 2033. By themselves those are alarming,
but a look back to the 2005 report showed the projection was for the trust
funds to last till 2041. So in just
eight years of time, the timeframe for the trust funds to run out of money has
gotten sixteen years closer. Will that
trend continue in the 2014 report?
Another
source for alarming news about Social Security is the WH OMB budget
projections. In President Obama’s 2010
Budget Social Security Outlays were projected to exceed Social Security Payroll
Tax Receipts by $200 billion over the ten year projections. In the 2015 Budget the shortfall was
projected to be $2 trillion. So as the
Senate Democrats hold up any meaningful reforms and as President Obama’s
administration fails to put forth any recommendations, the day that Social
Security will run out of funds gets much closer.
Possibly
this helps explain why the Social Security Trustees haven’t issued their
mandated Trustee report on the Trust Funds in what looks like an already tough
election year for Congressional Democrats.
It’s reasonable to project the timeframe for the trust funds to run out
of money will be even sooner than in the last report.
It’s
time for us to demand the trust fund report be released.
