[June 04, 2013]BALTIMORE, Md. -- The Social
Security board of trustees released its annual report Friday on the
long-term financial status of the Social Security trust funds. The
combined assets of the Old-Age and Survivors Insurance, and the
Disability Insurance trust funds are projected to become depleted in
2033, unchanged from last year, with 77 percent of benefits still
payable at that time. The DI Trust Fund will become depleted in
2016, also unchanged from last year's estimate, with 80 percent of
benefits still payable.
In the 2013 annual report to Congress, the trustees announced:
The combined trust
fund reserves are still growing and will continue to do so
through 2020.
Beginning with
2021, the cost of the program is projected to exceed income.
The projected
point at which the combined trust fund reserves will become
depleted, if Congress does not act before then, comes in 2033 --
the same as projected last year. At that time, there will be
sufficient income coming in to pay 77 percent of scheduled
benefits.
The projected actuarial deficit over
the 75-year long-range period is 2.72 percent of taxable payroll
-- 0.05 percentage point larger than in last year's report.
"The Social Security trust funds' projected depletion dates have
not changed, and three-fourths of benefits would still be payable
after depletion. But the fact remains that Congress needs to act to
ensure the long-term solvency of this vital program," said Carolyn
W. Colvin, acting commissioner of Social Security. "The projected
year for Disability Insurance Trust Fund depletion remains 2016, and
legislative action is needed as soon as possible to address this
financial imbalance."
Other highlights of the report:
Income, including
interest on the combined trust funds, amounted to $840 billion
in 2012, with $590 billion in net contributions, $27 billion
from taxation of benefits, $109 billion in interest, and $114
billion in reimbursements from the general fund of the Treasury
-- almost exclusively resulting from the 2012 payroll tax
legislation.
Total expenditures
from the combined trust funds amounted to $786 billion in 2012.
Non-interest
income fell below program costs in 2010 for the first time since
1983. Program costs are projected to exceed non-interest income
throughout the remainder of the 75-year period.
The asset reserves
of the combined trust funds increased by $54 billion in 2012 to
a total of $2.73 trillion.
During 2012, an
estimated 161 million people had earnings covered by Social
Security and paid payroll taxes.
Social Security
paid benefits of $775 billion in calendar year 2012. There were
about 57 million beneficiaries at the end of the calendar year.
The cost of $6.3
billion to administer the program in 2012 was a very low 0.8
percent of total expenditures.
The combined trust fund asset reserves
earned interest at an effective annual rate of 4.1 percent in
2012.
The board of trustees is comprised of six members. Four serve by
virtue of their positions with the federal government: Jacob J. Lew,
secretary of the Treasury and managing trustee; Carolyn W. Colvin,
acting commissioner of Social Security; Kathleen Sebelius, secretary
of health and human services; and Seth D. Harris, acting secretary
of labor. The two public trustees are Charles P. Blahous III and
Robert D. Reischauer.
