Discuss Question 13 Discuss Question 11

Discuss Question 12

12. FISCAL KNOWLEDGE: Absent reform, Social Security’s Disability Insurance Trust Fund will run out of money within the next seven years.

ANSWER: True – According to the 2011 Annual Report of the Social Security Board of Trustees, the Social Security Disability trust fund, which pays benefits for the Disability Program, is scheduled to run out of money in 2018, absent any reform. This is different from the Social Security pension program, which is projected to be funded for a longer period of time; however, it too is projected to eventually run out of money, absent reform.

 

7 Responses to “Discuss Question 12”

  1. Dennis says:

    Interesting answer – could be correct. Question: Has the Disability trust fund piggybank not been robbed and replaced with IOU’s? Or is that just the retirement fund? Please provide a more complete answer. Thank you.

  2. Jeff says:

    Another crystal ball question. When have 7 year projections ever been right? When the dot com crash happened did anyone predict the housing bubble 7 years later? The questions should be “The Social Security Board of Trustees says…”, making the answer True. Otherwise, the answer is Unknown.

  3. Richard Witty says:

    If the disability trust fund is insignificant relative to the general social security trust fund, why include this question?

  4. bob says:

    I didn’t think there was such a thing as a “Social Security Disability trust fund”. Is Social Security not part of the general Federal budget. A trust fund suggests that there is a separate account set aside with actual money in it.

  5. steve miller says:

    Not really sure where this response comes from. There WAS a trust fund for SSA in the past, long since robbed and replaced with govt unfunded liability, aka debt. However, the SSI, the disability arm of the SS program is not even associated with SSA. It is a general fund welfare program ADMINISTERED by SS. Further, there is no part of FICA that pays for the disability program, meaning that there never has been a trust fund. Therefore, the basis for the question is false.

  6. Tim Singstock says:

    Social Security is already in the red. There are four parts to social security:
    1. Retirement benefits which we associate with Social Security
    2. Disability benefits
    3. Survivor benefits (for children who lose an income earning parent)
    4. Supplemental Income

    If we prioritize in this order, we can and should be able to fund social security for a longer duration.

  7. Jim Joyce says:

    Considering that We the People (that’s US) now have to borrow into
    all spending, how can any modern Gutenberg government project under funding, become underfunded, or be completely unfunded at any point in time- unless by policy? Ahh, the politics of our Federal budgetary process. Ahh, those fiscal budget experts! Happy to be counted among those who have taken this test.

Leave a Reply