Keep An Eye On The Disability Trust Fund

      There’s one part of the Trustees report that hasn’t gotten much attention. While the Old-Age and Survivors Trust Fund is projected to run dry by 2032, the separate Disability Trust Fund is projected to be in balance through at least 2099.

     I don’t think it at all likely that disability benefits will be paid in full while retirement benefits are cut to 78% of current benefits. Actually, I think it’s almost inconceivable that there will be any cuts in benefits but we’ll probably have some brinksmanship as we approach the deadline. One way of putting off doing anything for a bit is to combine the two Trust funds or allow inter fund borrowing, which is what was done in the past when the Disability Trust Fund ran short. That approach would extend the deadline to act by a couple of years.