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A recent report from The Center on Budget and Policy Priorities asserts that the recession has had a multifold effect on Social Security Disability Insurance (SSDI). On one hand, it’s increased the number of individuals applying for benefits, but it’s also limited the program’s tax revenues and interest gains.
Like many agencies and companies, the SSA didn’t anticipate the rapid decline of the financial sector in 2008. Therefore, they didn’t plan their figures and budget accordingly, and their revenue unfortunately ended up being 20% less than they projected. (This revenue comes from a combination of salaries, taxes on wages and self-employment income, paid by both employers and employees.)
The spike in unemployment during the recession contributed to this discrepancy due to the plummet in taxable payroll revenues.
The Center on Budget and Policy Priorities’ report points out that in 2014, SSDI spending was less than projected for the year, but even then, the trust fund was $152 billion lower than projected in 2008. This suggests that the SSA’s financial woes are less the result of SSDI benefits being awarded too liberally and perhaps more due to an issue of underfunding. Hopefully, just as finances slowly stabilized after the recession, lawmakers and the SSA will reach conclusions that will benefit disabled American citizens and stay within a reasonable budget.
If you have a disabling condition and believe you may be eligible for Social Security Disability Insurance, the expert team of Jan Dils, Attorneys at Law, can help you get the benefits you deserve. Contact us toll-free at 1.877.526.3457 or by e-mail to schedule your free initial consultation today.
Jan Dils, Attorneys at Law