Social Security’s Disability Trust Fund Improves

Posted January 27, 2017 by Premier Disability Services, LLC® Social Security has released the final 2016 numbers on the Disability Insurance Trust Fund. The Trust Fund is a separate account in the United States Treasury. A fixed proportion of the taxes received under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act are deposited into the fund to the extent that such taxes are not needed immediately to pay expenses. Taxes are deposited in the fund on every business day.

The trust fund provides automatic spending authority to pay monthly benefits to disabled-worker beneficiaries and their spouses and children. With such spending authority, the Social Security Administration does not need to periodically request money from the Congress to pay benefits.

Funds not withdrawn for current expenses are invested in interest-bearing Federal securities, as required by law; the interest earned is also deposited in the trust fund.

The Trust Fund balance had been declining over the last few years until there was a temporary reallocation of FICA revenues at the beginning of 2016.

Disability Insurance (Amounts in millions)
Quarter	Total income	Total outgo	Net increase in asset reserves	Asset reserves at end of quarter
Qtr 1, 2015	$30,582	$36,483	$-5,901	$54,343
Qtr 2, 2015	33,697	37,241	-3,544	50,799
Qtr 3, 2015	27,508	36,651	-9,143	41,656
Qtr 4, 2015	26,808	36,206	-9,397	32,259
Qtr 1, 2016	39,509	36,509	2,999	35,258
Qtr 2, 2016	45,519	37,049	8,470	43,728
Qtr 3, 2016	38,457	36,444	2,012	45,740
Qtr 4, 2016	36,512	35,914	598	46,338