Tampa, FL (Law Firm Newswire) September 29, 2015 - Recipients of Social Security disability could experience an automatic 19 percent cut in benefits as the disability trust fund is projected to run out of money by the end of next year.
Eleven million Americans rely on disability benefits from Social Security, which turned 80 on Aug. 14. Disabled workers and their families receive an average monthly payment of $1,019, which adds up to $12,228 a year. A 19 percent cut would decrease average annual benefits to under $10,000.
“A cut to benefits would be detrimental to the millions of disabled people and their families who rely on disability benefits, which may potentially be their only source of income,” said David W. Magann, a prominent attorney in Tampa, Florida, whose firm specializes in Social Security disability law. “For them, finding employment can often be challenging due to their disabilities.”
A solution to the crisis would be for Congress to redirect tax revenue to the disability fund from the much larger retirement trust, which receives about 85 percent of the money. Doing so would result in both programs having enough funds to pay full benefits until 2034, according to Social Security trustees.
Although the depletion of the disability trust fund has been expected for years, lawmakers have yet to resolve the issue and reach an agreement. While President Barack Obama and Democrats have backed the shifting of tax revenue from one trust to the other, Republicans claim that it would be the equivalent of robbing seniors to pay the disabled. They view the funding crisis as an opportunity to improve the disability program’s finances by combating waste and fraud, placing restrictions on eligibility and encouraging disabled workers to return to the workforce.
“Lawmakers need to find the least disruptive way in which to deal with the Social Security disability crisis and save the program for future generations of Americans,” said Magann. “Waiting to come up with a solution will make it harder to maintain the program as one that pays for itself. The public also needs time to prepare and adjust to the changes Congress will make.”
David W. Magann, P.A.
156 W. Robertson St.
Brandon, FL 33511
Call: (813) 657-9175
4012 Gunn Highway #165
Tampa, Florida 33618