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Forbes
14-04-2025
- Business
- Forbes
Social Security Operational Reforms Don't Fix Looming Solvency Threat
Operational changes, staffing reductions, and database access issues at the Social Security Administration have garnered substantial attention in recent weeks. While such changes may affect customer service and the integrity of the agency's programs, none address the serious fiscal challenges facing Social Security. While the Biden administration focused on expanding SSA's workforce to improve customer service, the Trump administration and its Department of Government Efficiency have taken a different approach. Initial activities have been directed at addressing perceived fraud risks and database accuracy issues, as well as generating savings through workforce reductions, grants terminations, and full overpayment clawbacks. Although instances of fraud and other types of improper payments at SSA—particularly in the Old-Age and Survivors Insurance program—are modest compared with other federal agencies, that hasn't stopped allegations that fraud is rampant there. Some of those claims are being driven by concerns over Social Security number usage and database upkeep practices involving death records. Access by DOGE to SSA's systems has also raised privacy concerns because of the extremely sensitive nature of the data. Prudent fraud investigation, however, shouldn't fuel the false notion that operational improvements can fix Social Security's solvency issues. DOGE has yet to uncover program abuses that amount to anything close to the biggest fraud in history. With a long-forecasted wave of Baby Boomer retirements now crashing down on the system, the greatest threat facing Social Security remains the solvency of the trust funds used to pay beneficiaries. Few programs garner as much enthusiastic support as Social Security, particularly OASI—one of the largest line items in the federal budget. Unfortunately, that spirit is engendered to some extent by a misunderstanding of the nature of the program and its financial operations. In particular, the program is viewed by some as being tantamount to a traditional retirement savings plan: Funds are contributed through payroll taxes, earn interest through the years, and are set aside for a worker's benefit as a lifetime monthly payment after retirement. While that is not an unreasonable expectation given the dedicated nature of payroll taxes, the reality is more complex. Social Security is better characterized as a social insurance program that not only provides retirement income but also life and disability insurance. Benefits are based on a formula that considers your earnings history, the age at which you take benefits, and other factors. And not everyone gets back what they've contributed. While many will receive more than they paid in, others, particularly those with higher lifetime earnings, can receive less. To be sure, bookkeeping entries record amounts contributed, but they are not reserved specifically for a worker's future benefit. Instead, Social Security is funded on a pay-as-you-go basis. The contributions of current workers are the primary source of funds used to pay current beneficiaries. For cash management purposes, Social Security collections are invested daily in special-issue Treasury securities. Historically, any payroll tax collections not needed to pay beneficiaries have been used to fund other federal spending, with the government leaving behind IOUs when it swept such surpluses. With Social Security payments now exceeding payroll tax collections and other trust fund earnings, some of those IOUs, in the form of Treasury securities, are being redeemed to pay beneficiaries. In turn, the government must borrow other money from the public to raise the cash needed. As a result, the financial operations of SSA are closely intertwined with the rest of the federal budget. Treating Social Security balances as interchangeable with other monies collected by the government runs contrary to the impression held by some that there exist overflowing trust funds in the nation's treasury to pay current and future retirees. But the government defines the term trust fund differently than it is commonly used. Rather than managing a trust fund on behalf of a beneficiary who has an enduring right to the trust's income, the government owns the assets of the Social Security trust funds and can enact legislation to change program terms at any time. Given demographic shifts forcing fewer workers to support more retirees, Social Security trust funds—as accounting constructs, not pots of gold—are scheduled under current law to be insufficient to make full payments within the next 10 years. According to a 2024 trustees report, OASI revenues will be enough to pay only 79% of scheduled benefits after its reserves are exhausted in 2033. Such a benefit reduction would be extremely unpopular, so the likelihood of a political compromise to address the shortfall is high—but the nation's elected leaders have so far shown little willingness to address the matter with urgency. Delaying reform makes more severe the measures that will be needed to fix the problem. Reform options include some combination of revising benefits and eligibility criteria, adjusting payroll taxes, and borrowing from the public to cover the shortfall. Given the must-pass nature of such legislation, a golden opportunity exists to solve not only for the fiscal challenges facing Social Security but also perhaps to serve as a catalyst to reach a broader agreement on putting the U.S. on a more sustainable fiscal path, a topic explored in depth in a paper I authored for Arnold Ventures last year.
Yahoo
31-03-2025
- Business
- Yahoo
What is social securty? When will I receive my check payment benefits? SSA, SSI disability dates
Millions of Americans who receive a monthly check from the Social Administration Association may have concerns about future checks and payments as part of the Donald Trump administration's efforts to cut federal spending, Social Security is enduring job cuts, office closings, a revamped customer service strategy – and scrutiny for fraud. Social Security payments for most recipients come out on Wednesdays throughout the month. Those who get Supplemental Security Income (SSI) should get their payment on Tuesday, April 1. The Social Security Administration suggests if you don't receive your payment on the expected date, allow three additional mailing days before contacting the agency; most arrive timely because 99% of beneficiaries are paid electronically. Social security was created to promote economic security for country's population and initially designed to pay a continuing income to retired workers age 65 or older, according to Here's a look at when additions were introduced: 1939: Survivors Insurance − for families of a deceased worker 1956: Disability Insurance − for disabled workers and their family members 1965: Medicare − providing health insurance for our beneficiaries 1972: Supplemental Security Income −needs-based program funded by the U.S. Treasury general fund to provide payments to people with limited income and resources who are ages 65 and older, blind or disabled. Children with disabilities can also receive SSI. One in five Americans currently receive social security benefits, with more than 65 million beneficiaries. The Social Security Administration's yearly distribution schedules for 2025 and 2026 are available online so that you can use the calendar for budgeting purposes. Regular Social Security retirement benefits will be sent out on the SSA's usual schedule: Wednesday, April 9: Birth dates between the first and 10th of the month. Wednesday, April 16: Birth dates between the 11th and the 20th of the month. Wednesday, April 23: Birth dates between the 21st and the 31st of the month. Supplemental Security Income provides monthly benefits to those with limited income or resources who are 65 or older, blind or have a qualifying disability. Children with a qualifying disability can also get SSI, according to the SSA's website. In general, adults who qualify for SSI do not have monthly wages above $2,019. Those who may be eligible for SSI can begin the application process online, in person at your local Social Security office, or by calling 1-800-772-1213 (TTY 1-800-325-0778) from 8 a.m. to 7 p.m. local time during the work week. Supplemental Security Income checks will be sent out on the following dates in 2025, according to the SSA calendar. Tuesday, April 1, 2025 Thursday, May 1, 2025 Friday, May 30, 2025 (Check for June 2025) Tuesday, July 1, 2025 Friday, Aug. 1, 2025 Friday, Aug. 30, 2025 (Check for September 2025) Wednesday, Oct. 1, 2025 Friday, Oct. 31, 2025 (Check for November 2025) Monday, Dec. 1, 2025 Wednesday, Dec. 31, 2025 (Check for January 2026) For a schedule of social security payment distributions, check out the Social Security Administration's calendar. Visit to find the Social Security Administration office nearest you. Call , according to Wait times for the national number tend to be shorter in the morning from 8 to 10 a.m. and later in the day from 4 to 7 p.m. Shorter wait times also tend to occur Wednesday through Friday, as well as later in the month. Several automated telephone services are aslo available 24 hours a day. Chris Sims is a digital content producer for Midwest Connect Gannett. Follow him on Twitter: @ChrisFSims. This article originally appeared on Louisville Courier Journal: My social security benefits 2025: When Kentucky can expect SSA check payments
