Published: Wed, June 06, 2018
Medicine | By Earnest Bishop

Social Security says system's costs will exceed income this year

Social Security says system's costs will exceed income this year

The United States' largest publicly funded medical insurance program will run out of money sooner than expected, according to an official projection released on Tuesday.

If Congress fails to enact needed Social Security reforms before then, there would be sufficient funds to pay just 79% of promised benefits in 2034, slightly better than the 77% of benefits projected in last year's report.

The Social Security program's costs are expected to exceed its income this year, marking the first time that has happened since 1982 and forcing the USA government to dip into the retirement system's trust fund to pay benefits to participants.

Nancy Berryhill, the acting commissioner of the Social Security Administration, acknowledged that while the projected depletion date of the combined Social Security Trust Funds has not changed, "The fact remains that Congress can keep Social Security strong by taking action to ensure the future of the program".

So far that does not appear to have happened, to judge from the annual report of the trustees of Social Security and Medicare, a group that includes three Trump cabinet officers.

Canadian dollar slips as Trump mulls bilateral NAFTA talks
They believe that bilateral agreements are easier to amend and easier to exit than deals that involve more than two countries. The EU and Canada have also promised retaliatory tariffs . "I'm waiting to hear what their reaction is going to be frankly".

"With modest legislated increases in revenue, Social Security will be able to pay all scheduled benefits for the foreseeable future", the nonprofit organization said in a background report issued in advance of the trustees' report. It's also the unpredictability of health care costs, which can be jolted by high-priced breakthrough cures, and which regularly outpace the overall rate of economic growth. None of those top officials was present Tuesday; an aide cited scheduling conflicts. The public trustees are usually more candid, but those posts remain unfilled. And the trustees now say that program is going to be insolvent in 2026 - or roughly the same time as we are from the passage of Obamacare.

Democrats have for months asserted that Republicans would use the deficit - swollen by tax cuts - as "an excuse to cut Social Security and Medicare", in the words of Senator Chuck Schumer of NY, the Democratic leader.

House Speaker Paul Ryan, R-Wis., has always been an advocate for overhauling the programs, introducing a voucher-like system for Medicare and calling for partially privatizing Social Security.

Democrats, meanwhile, want to extend the social safety net by spending more on health care and education. That money is invested in special government securities, which also collect interest.

Like this: