Social Security disability insurance: participation in the Trends and their implications for accounting

Social Security disability insurance (DI) program shall pay cash benefits by the nonelderly adults (younger than the age of 66) which cannot be considered "substantial" work on the subject to a livestock aid application but disabilidád worked in the past, the program pays benefits to some of these adult dependents. In 2009 the disability Insurance program have paid almost eight million disabled beneficiaries benefits and about 2 million of the recipients of the spouses and children.

Between the years 1970 and 2009, the amount of benefits in the host DI more than tripled, from 2.7 million in the form of 9.7 million (unless otherwise specified, all years are calendar years). This jump, which significantly outpaced the growth over this period, the working age population, there are a number of changes — the specific characteristics of the federal policy ' capacity, and employment opportunities. In addition, during those years on average than acquisition cost DI per person receiving benefits rose from about $ 6,900 approximately 12,800 euros (in 2010).As a result, than expenditure DI program, including administrative costs, increased by almost seven times for the period 1970-2009, climbing to 18 billion-dollar 124 billion euro (in 2010). most DI beneficiaries after two years, shall also be entitled to Medicare; these benefits in one fiscal year 2009 of approximately 70 billion dollars.

The current legislation of the program is not Batman Checks financially sustainable. The expenditure related to staff in active employment are drawn from the Insurance fund, financed mainly through the payroll tax 1,8%; the Fund had a balance of EUR 204 billion at the end of the year 2009.The US budget (CBO) is projected that by 2015 the number of benefits, DI 11,4 million and a total expenditure of climbing 147 billion dollars (2010 dollar; see Figure 1). However, DI trust fund will be credited to the tax revenue is about 20% less than the costs, as well as three years later in the year 2018, trust fund shut down, THE CBO's estimates.Without legislative action being taken to reduce the cost of the program to add it to the DI fixed federal income or transfer other federal funds the social security administration is not the legal power to the entire DI benefits in this respect.

Changes can be implemented to process the Trust Fund exhaustion. Some proposed would program dedicated to reduce costs, and other revenue. One approach would be to reduce the costs of benefits DI set up policies that would make the work more viable option for people with disabilities, however, little evidence is available, the effectiveness of these policies and their costs more than the backup copy may replace all discounts DI benefits savings.