Retirement and Disability Trust Funds-Social Security Most Common Questions #3 - boomerblasts.net

Retirement and Disability Trust Funds–Social Security Most Common Questions #3

 

$150 Billion Transferred From Retirement Fund To Disability Fund. Will That Affect My Social Security Check?

Josh Jalinski, the Financial Quarterback, WOR Radio NYC Interviews Donna Davis

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Caller #3–Janice. I heard three weeks ago that $150 billion was transferred into the Disability Fund. How does that affect Social Security checks in the Future?

Answer—No actual funds were transferred from one account to the other. What did change was the percentage of payroll tax that goes into each of the two Social Security Funds. Social Security has a Retirement Fund and a Disability Fund. You pay 6.2% in payroll tax, and some of that goes into each fund. Right now 3.83% goes into the Retirement Fund, and 2.37% goes into the Disability Fund. These percentages will last for three years at which time they may be adjusted again. A change like this has occurred 11 times in the past and is routine. Your payment will not be affected.

Janice—Disability is riddled with fraud. I see many young people at the Social Security office.

Answer—Disability averages .6% fraudulent cases, which is extremely low. Unfortunately, those are the ones we hear about. There are very stringent criteria you need to meet to be able to qualify for Disability. Not all disabled individuals are eligible for Disability. Only those that have worked and contributed to the Social Security system for over ten years or their families qualify.

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