Social Security Policy Options -2015

"Social Security, which marked its 80th anniversary in 2015, is the largest single program in the federal government’s budget. The program has two parts: Old-Age and Survivors Insurance (OASI), which pays benefits to retired workers, to their dependents and survivors, and to some survivors of deceased workers; and Disability Insurance (DI), which makes payments to disabled workers and to their dependents until those workers reach the age at which they are eligible to receive full retired-worker benefits under OASI. Social Security currently has about 60 million beneficiaries. Outlays for Social Security totaled $888 billion in fiscal year 2015, accounting for nearly one-quarter of all federal spending. Although Social Security is part of the overall federal budget, its funding mechanism of dedicated revenues sets it apart from many other government programs. Benefits for OASI and DI alike are financed from trust funds (often identified collectively as the combined, or OASDI, trust funds), which are credited with tax revenues, mainly from payroll taxes, and interest on the funds’ balances.1 As long as a trust fund’s balance is sufficient to cover required payments, benefits can be paid without the need for any legislative action..."
Social Security