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Government postpones Social Security disability doomsday

The Bipartisan Budget Act of 2015 was recently signed by President Barack Obama. The budget creates a plan for government spending that will be in effect for the next two years, and it also does away with the debt limit. Included in the budget are vital provisions that will extend the financial viability of the Social Security Disability Trust Fund and will do away with a Social Security retirement-claiming strategy.

Various adjustments have been made to bolster the lasting power of the SSDI program. Without these adjustments, disability recipients would have suffered a 20 percent drop in benefits around the end of 2016. This would have been devastating for disabled persons throughout the United States, most of whom are already struggling to make financial ends meet.

The saving changes were achieved by way of a reallocation of payroll-taxes collected by the federal government, which will redirect more payroll tax dollars into the SSDI Trust Fund. This maneuver will allow the SSDI Trust Fund to stay solvent until 2022.

More legislation will be required if the fed wants to resolve the SSDI solvency issue once and for all. Many believe that these reforms should be made as soon as possible in order to avoid bigger problems later on down the road. The longer it takes to make them, the more money it will cost the American public.

Social Security disability benefits are a vital resource for disabled Americans to make financial ends meet. If you are disabled and struggling to obtain benefits, a Social Security disability lawyer may be able to help.

Source: Market Watch, "Crisis in Social Security disability insurance averted, but not gone," Jason J. Fichtner, Nov. 30, 2015

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In Minnesota, we handle Social Security Disability Insurance (SSDI) claims. Throughout the nation, we handle SSDI applications and appeals for people from Ohio to Kansas, North Dakota to Texas and everywhere in between.

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