The Hill News

Since the Social Security Trustees report was released last week, we’ve heard a lot about the year 2033. That’s the year when the Social Security trust funds as a whole will run out of money and will no longer be allowed to pay full benefits. The real year to pay attention to, though, is 2016, when the Social Security Disability Insurance fund runs out of money.
 
What does this mean? It means that within half a decade, during the next presidential term, the disability program will no longer have the legal resources to fully pay its 12 million beneficiaries. At that point, current law calls for an immediate 20 percent benefit reduction for all disabled individuals.
 
Most observers don’t worry much about this year. They assume that when 2016 comes around, politicians will simply reallocate money from the old age program into the Social Security program and viola, problem solved. I wouldn’t be so sure that transferring the money will be so ea! sy â€" and I’m not sure it should be.

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