Former Federal Official Casts Doubt on SSA Trust Fund’s Reliability | Law Firm Newswire

Former Federal Official Casts Doubt on SSA Trust Fund’s Reliability

Tampa, FL (Law Firm Newswire) April 10, 2015 - In an interview on March 12, David Walker, former comptroller general of the United States, warned that rising costs for Social Security, public pensions and healthcare could jeopardize the nation’s safety net for workers.

Walker was the comptroller general of the United States from 1998 to 2008. He served as head of the Government Accountability Office (GAO) during the same period. Now, his comments support a recent Social Security Administration (SSA) warning that the Disability Insurance Trust Fund, in particular, could run out of money as early as next year.

Walker shared his concerns while appearing on CNBC’s “On the Money,” predicting that Congress will resort to reallocating payroll revenues from the retirement portion of the trust fund to the disability portion. He emphasized that such a temporary measure will not effectively address the disability fund’s solvency problem.

“According to the trustees, it’s supposed to go to zero, the so-called trust fund, in 2016,” Walker said in the interview. “Washington has a tendency to put Band-Aids on open wounds, rather than trying to actually do what needs to be done.”

The Social Security system, which was established in 1935, provides benefits to 58 million people, including 41 million retirees and their dependents, 6 million survivors of deceased workers, and another 11 million disabled workers and their dependents.

“Walker is probably correct that Congress will opt to reallocate payroll revenues going to the retirement fund and the disability fund in order to temporarily shore up the latter,” said David W. Magann, a prominent attorney in Tampa, Florida, whose law firm specializes in Social Security Disability law. “Capitol Hill has a track record of favoring such temporary fixes, especially for the Social Security Trust Fund.”

Walker called for three phased-in solutions to properly address Social Security’s financial woes: increasing the retirement age for younger workers, due to a longer life expectancy for Americans; changing the benefit formula to provide more money for lower-income retirees and less money for higher-income retirees; and raising the payroll tax cap from the current $118,500 to about $200,000. Walker did not speak in support of raising the tax rate above 6.2 percent for both employers and employees, as some economists urge, calling that “regressive.”

“It is important to discuss the future of the Social Security Trust Fund openly. We need substantive, effective ideas that will solve the long-term finances of Social Security,” Magann said. “Social Security is a vital lifeline for millions of Americans. The problems it faces need meaningful solutions, and soon.”

David W. Magann, P.A.
Main Office:
156 West Robertson Street
Brandon, FL 33511
Call: (813) 657-9175

Tampa Office:
18715 N Dale Mabry Hwy
Lutz, FL 33548

View Larger Map

  • Be Aware of How You Could Lose Your Social Security Benefits
    1.Cessation of Disability: Usually a “cessation of benefits” occurs when you are not seeking regular and continuing treatment for the medical problems in the original determination for the grant of benefits. Also, if you are able to make enough money to pass above a certain threshold earnings amount, then you’ll stop getting disability benefits. For […]
    NEW MENTAL LISTINGS Effective: January 17, 2017 After a revision of the Diagnostic and Statistical Manual (DSM), and thousands of public comments later, the Social Security Administration (SSA) has published significant revisions to its mental impairment listings.  SSA had issued a Notice of Proposed Rule Making in August 2010, proposing what at the time appeared to be […]
  • SSA is Heading For Delays Again After Recent Cutbacks & Years of Improvement
    Service Cuts, Computer Problems Cloud Social Security’s 79th Birthday: The Social Security Administration should have reason to celebrate. After all, August 14, 2014, marked the 79th anniversary of the day when President Franklin Roosevelt signed the Social Security Act, which ushered in the landmark entitlement program. However, the agency’s birthday was a less than cheerful […]
  • SSA is Ramping Up Disability Reviews in 2014
    The Social Security Disability Benefits Reform Act of 1984 (“DBRA 1984”) was passed by a unanimous, bipartisan vote in the House and Senate (99-0) in September 1984. President Reagan signed the law on October 9, 1984, when it became Pub. L. No. 98-460. One of the main provisions required “medical improvement” before benefits could be terminated where […]
  • Never Allow A Non-Attorney to Represent You At Your Social Security Hearing!
    You should NOT have a non-attorney clerk at your hearing?  This seems obvious, but several Florida law firms and any company identifying themselves as “Experts”, some who are advertising on TV, are sending non-attorney clerks to Social Security Hearings simply because its cheaper for them to do so rather than have an actual attorney appear. How in […]

Tags: , , , , ,

Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required