The Board of Trustees of the Old Age and Survivors Insurance (OASI) Trust Fund reported in May, 2013 that the OASI will become insolvent by the year 2033. However, the Disability Insurance (DI) Trust Fund is on a trajectory of insolvency much sooner than that, by the year 2016. See https://www.socialsecurity.gov/OACT/solvency/NA_20130531.pdf.
In 1994 a similar issue came up with regards to the Disability Insurance Trust Fund’s imminent insolvency. The legislative fix was made by reallocating the OASDI payroll tax between the OASI and DI programs. See Id.
The Disability Insurance Trust Fund, which was established in 1956, is part of the Social Security Trust Fund. It receives deposits from the FICA payroll taxes and allocates amounts above and beyond what is needed for day-to-day operations of the disability insurance program to the DI Trust Fund. Any amounts in the Trust Fund not used for current expenses are then invested in interest-bearing federal securities. See https://www.investopedia.com/terms/d/disability-insurance-trust-fund.asp.
As is well known, the basic Social Security program was enacted during the presidency of Franklin Delano Roosevelt, in the year 1935 to be precise. Originally, it was just a retirement program, but disability insurance was added in 1956 under President Dwight D. Eisenhower. Medicare was enacted in 1965, under President Lyndon B. Johnson. See https://www.ssa.gov/history/hfaq.html.
So, it is likely the case in my opinion, that we tend to take these programs for granted because they have been around for most of our lifetimes. We may forget that there was a time when these federal programs did not exist; namely, for the first approximately one hundred and fifty or more years after the federal Constitution was ratified. So perhaps we need to be reminded from time to time that these programs do not automatically remain solvent and they do require funding and political will in order to continue.
This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.