Since 1983, every US President has borrowed from Social Security to pay for government expenditures. However, there is no evidence that any of the presidents has stolen a dime from Social Security.
“In other words, the Social Security trust fund, which is what is authorized to pay benefits, has been loaning money to the U.S. government.” Some have claimed that the government's borrowing from Social Security is “stealing,” but Johnson explained to VERIFY that this is misinformation.
The Department of the Treasury (Treasury) can also withhold Social Security benefits to collect delinquent non-tax debts owed to other federal agencies under the Debt Collection Improvement Act of 1996 (Public Law 104-134). Treasury controls this activity and will contact you if you owe a non-tax debt.
All members of Congress, the President and Vice President, Federal judges, and most political appointees, were covered under the Social Security program starting in January 1984.
As of 2021, the Trust Fund contained (or alternatively, was owed) $2.908 trillion. The Trust Fund is required by law to be invested in non-marketable securities issued and guaranteed by the "full faith and credit" of the federal government. These securities earn a market rate of interest.
President Franklin Roosevelt would choose the social insurance approach as the "cornerstone" of his attempts to deal with the problem of economic security.
The idea of Congress stealing from Social Security and not paying interest is a complete myth. There are, however, tangible reasons for Social Security's struggles, many of which can be tied to long-running demographic shifts.
As the Social Security Old Age and Survivors Insurance Trust (OASI) faces depletion by 2033, President Joe Biden has suggested to bolster funds in the trust and help fill the $22.4 trillion funding shortage shown in the 2023 Trustees Report.
As a stop-gap measure, Congress passed legislation in 1981 to permit inter-fund borrowing among the three Trust Funds (the Old-Age and Survivors Trust Fund; the Disability Trust Fund; and the Medicare Trust Fund). This authority was to lapse at the end of 1982.
While you may have heard at some point that Social Security is no longer taxable after 70 or some other age, this isn't the case. In reality, Social Security is taxed at any age if your income exceeds a certain level.
Bottom line. Current workers will still receive Social Security benefits after the trust fund's reserves become depleted in 2034, but it's possible that future retirees will only receive 78% of their full benefits unless Congress acts.
Under normal conditions, the Treasury sends Social Security payments one month in arrears. That means the check you receive in June covers your benefits for the month of May. If the debt ceiling isn't raised, the Social Security payments due to be sent to beneficiaries in June would most likely still go out.
The Social Security trust funds hold money not needed in the current year to pay benefits and administrative costs and, by law, invest it in special Treasury bonds that are guaranteed by the U.S. Government.
In the proposals presented to the Commission, the use of retirement bonds--and annuities based on bond accumulations- would also replace the entire benefit structure of Social Security for the future.
The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $22,320. (We deduct $1 from benefits for each $2 earned over $22,320.) The earnings limit for people reaching their “full” retirement age in 2024 will increase to $59,520.
Will Social Security still be around when I retire? Yes. The Social Security taxes you now pay go into the Social Security Trust Funds and are used to pay benefits to current beneficiaries. The Social Security Board of Trustees now estimates that based on current law, in 2041, the Trust Funds will be depleted.
In 2024, if you're under full retirement age, the annual earnings limit is $22,320. If you will reach full retirement age in 2024, the limit on your earnings for the months before full retirement age is $59,520.
Beneficiaries are living longer, meaning the program pays recipients over a longer period of time. And about 10,000 baby boomers are retiring every day. The share of workers paying into the system (via payroll taxes) has been falling relative to the number of beneficiaries, creating an imbalance.
The Social Security Act limits trust fund expenditures to benefits and administrative costs. Benefits to retired workers and their families, and to families of deceased workers, are paid from the OASI Trust Fund. Benefits to disabled workers and their families are paid from the DI Trust Fund.
If you earn above the income thresholds that trigger taxation at the federal level, and you live in one of the 13 states that also tax Social Security benefits to some varying degree, then, and only then, can your Social Security benefits be described as being taxed twice.
February 2005 – Republican President George W. Bush outlined a major initiative to reform Social Security which included partial privatization of the system, personal Social Security accounts, and options to permit Americans to divert a portion of their Social Security tax (FICA) into secured investments.
If you have no record of paying into the system, you will not receive payouts. If you have not reported income and evaded taxes for a lifetime, then you have no right to Social Security benefits.
Current taxes and any accumulated surplus fund everyone's benefits. Payroll tax contributions are not reserved for future payouts to the particular taxpayer. Fewer workers are left to contribute toward the benefits of each retiree as Baby Boomers retire and the U.S. population ages.