Social Security Fund Exhaustion: A new report from the Congressional Research Service projects exhaustion of Social Security trust funds in 2033. At that time, it is projected the program would have enough income from taxes to pay 77% of scheduled benefits until 2087, when that number would fall to 72% of benefits. The CRS reports that the Social Security Act does not stipulate what would happen to benefit payments when the funds run out, but anticipates that either full benefit payments would be delayed or reduced benefits would be paid on time. According to the CRS, prompt action by Congress is needed to avoid the funds insolvency. The two policy options presented in the report are an across the board cut in benefits and an increase in the payroll tax rate.
Posted on: Wed, 30 Oct 2013 18:35:15 +0000
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