{"id":23473,"date":"2024-06-01T05:21:27","date_gmt":"2024-06-01T15:21:27","guid":{"rendered":"http:\/\/thefilipinochronicle.com\/backup\/?p=23473"},"modified":"2024-06-09T04:11:05","modified_gmt":"2024-06-09T14:11:05","slug":"strong-economy-low-unemployment-and-higher-job-and-wage-growth-extend-social-security-trust-funds-to-2035","status":"publish","type":"post","link":"https:\/\/thefilipinochronicle.com\/backup\/2024\/06\/01\/strong-economy-low-unemployment-and-higher-job-and-wage-growth-extend-social-security-trust-funds-to-2035\/","title":{"rendered":"Strong Economy, Low Unemployment, and Higher Job and Wage Growth Extend Social Security Trust Funds to 2035"},"content":{"rendered":"\n
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by Jane Burigsay-Yamamoto<\/em>

The Social Security Board of Trustees recently released its annual report on the financial status of the health of the Social Security Trust Funds.

The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to have enough dedicated revenue to pay all scheduled benefits and associated administrative costs until 2035, one year later than projected last year, with 83% of benefits payable at that time.

In the 2024 Annual Report to Congress, the Trustees announced:

– The asset reserves of the combined OASI and DI Trust Funds declined by $41 billion in 2023 to a total of $2.788 trillion.

– The total annual cost of the program is projected to exceed total annual income in 2024 and remain higher throughout the 75-year projection period.\u00a0 Total cost began to be higher than total income in 2021.\u00a0 Social Security\u2019s cost has exceeded its non-interest income since 2010.

– The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2035.\u00a0 At that time, there would be sufficient income coming in to pay 83% of scheduled benefits.

Martin O\u2019Malley, Commissioner of Social Security, said:

\u201cThis year\u2019s report is a measure of good news for the millions of Americans who depend on Social Security, including the roughly 50% of seniors for whom Social Security is the difference between poverty and living in dignity — any potential benefit reduction event has been pushed off from 2034 to 2035.\u00a0 More people are contributing to Social Security, thanks to strong economic policies that have yielded impressive wage growth, historic job creation, and a steady, low unemployment rate.\u00a0 So long as Americans across our country continue to work, Social Security can \u2014 and will \u2014 continue to pay benefits.\u201d

\u201cCongress can and should take action to extend the financial health of the Trust Fund into the foreseeable future, just as it did in the past on a bipartisan basis. Eliminating the shortfall will bring peace of mind to Social Security\u2019s 70 million-plus beneficiaries, the 180 million workers and their families who contribute to Social Security, and the entire nation,\u201d he added.

Other highlights of the Trustees Report include:

– Total income, including interest, to the combined OASI and DI Trust Funds amounted to $1.351 trillion in 2023.\u00a0 ($1.233 trillion from net payroll tax contributions, $51 billion from taxation of benefits, and $67 billion in interest)

– Total expenditures from the combined OASI and DI Trust Funds amounted to $1.392 trillion in 2023.

– Social Security paid benefits of $1.379 trillion in calendar year 2023.\u00a0 There were about 67 million beneficiaries at the end of the calendar year.

– The projected actuarial deficit over the 75-year long-range period is 3.50% of taxable payroll \u2013 lower than the 3.61% projected in last year\u2019s report.

– During 2023, an estimated 183 million people had earnings covered by Social Security and paid payroll taxes.

– The cost of $7.2 billion to administer the Social Security program in 2023 was a very low 0.5% of total expenditures.

– The combined trust fund asset reserves earned interest at an effective annual rate of 2.4% in 2023.

\u201cI will continue to urge Congress to protect and support Social Security and restore the growth of the funds. Whether Congress chooses to eliminate the shortfall by increasing revenue, reducing benefits, or some combination, is a matter of political preference, not affordability,\u201d Commissioner O\u2019Malley said.

\u201cCongress currently has several bills that address the shortfall without benefit cuts — it should debate and vote on these and any other proposals.\u00a0 It\u2019s critical that Congress acts quickly to address the projected trust fund shortfalls, to gradually phase in necessary changes as the Trustees have recommended.\u201d

The Board of Trustees usually comprises six members.

Four serve by virtue of their positions with the federal government: Janet Yellen, Secretary of the Treasury and Managing Trustee; Martin O\u2019Malley, Commissioner of Social Security; Xavier Becerra, Secretary of Health and Human Services; and Julie Su, Acting Secretary of Labor.

The two public trustee positions are currently vacant.

View the 2024 Trustees Report at www.ssa.gov\/OACT\/TR\/2024\/<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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