As we noted last week, there are funding issues with Social Security Disability. The program is looking at a shortfall next year. While critics of the program like to suggest all number of reasons for this shortfall, suggesting that it has only come about recently, in fact, it has been projected for more than 20 years.
Social Security administers two main programs, the retirement program and the disability program. They are both funded out of the same payroll tax, but that tax is allocated to the two programs in different ratios. Both programs have trust funds that receive part of that allocation, and those funds and the current receipts from the payroll tax pay for the current benefits.
For millions of Americans, Social Security represents an important part of their future income. It may be the monthly payment from the retirement program that will make up a significant component, if not virtually all of their future retirement income.
It is a somewhat uncomfortable truth that most people on Social Security disability (SSD) are really ill. They suffer various ailments, whether mental, physical or a combination of both. They are on the program because their condition makes it impossible for them to successfully hold a job.