by Dale Coberly
VERY SHORT POST ON SOCIAL SECURITY DISABILITY INSURANCE
The Committee for a Responsible Federal Budget has issued a “call for
papers” with suggestions for “fixing” SSDI. I expect that by
“fixing” they mean cutting people off and getting them back to work.
After all, even people on IV’s could work as telephone solicitors.
But I would like to contribute my own observation:
SSDI could be put into “actuarial solvency” for the next seventy five
years… according to current Trustees Report projections…. by
raising the SSDI share of the payroll tax by two tenths of one
percent for each the worker and the employer. This would be an extra
dollar-sixty per week for each. This amount would NOT grow over
time. In fact it could be reduced (that’s the surprise) by about
half a tenth of a percent each after ten years… when the SSDI
trust fund begins to overshoot it’s target reserve.
I have no idea if the total SSDI cost is a reasonable cost for
disability insurance. My guess is that it is, given YOUR risks of
becoming disabled and what SSDI would pay as compared to private
disability insurance. I would like to see other opinions… or even
expert knowledge… about this.
It should be noted that this increase in the SSDI premium would not
be in addition to the needed increase in the OASDI (what people
usually mean by “Social Security”) premium, but a part of the
otherwise needed “one tenth of one percent per year” increase.. the
total increase in the payroll tax for Social Security would remain
“about 2% phased in over twenty years.” This increase would be
needed to pay for your longer life expectancy as compared to previous