May 12, 2015

Responsibly Confronting Social Security Disability's Financing Crisis

Charles Blahous

J. Fish and Lillian F. Smith Chair

Jason J. Fichtner

Former Senior Research Fellow

Mark J. Warshawsky

Former Senior Research Fellow

The Social Security Disability Insurance (DI) trust fund’s projected 2016 depletion will require Congress to act soon to prevent large, sudden benefit cuts.

Experts on both sides of the aisle have noted that a “quick fix” of simply shifting payroll taxes from Social Security’s much larger retirement trust fund (OASI) into DI, without further reform, could cost Congress its last chance to solve Social Security’s broader financing problems before it is too late. What more responsible reform options are available?