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Are SSD benefits facing a potential decrease?

Many residents of Los Angeles lament the seemingly never-ending "crisis-to-crisis" style of governing that has been so prevalent over the last several years. However, when the two political parties control different branches of the government, consensus can be difficult to achieve. Compromise is usually the goal. According to a recent article, another "crisis" is quickly approaching -- and it could affect millions of Americans who receive Social Security disability benefits.

According to the article, which was written by a United States Senator, the Social Security disability trust fund, which is funded by payroll taxes, will become "insolvent" in 2016. The Senator postulates that the estimated 14 million Americans who receive SSD benefits could see a decrease in their monthly check of approximately 20 percent. It almost goes without saying that this kind of decrease in benefits could be devastating for many SSD benefits recipients.

As the article points out, this problem needs to be addressed sooner rather than later. The right solution, however, is subject to extensive debate. Many of our nation's leaders want to transfer money from the Social Security retirement fund to the Social Security disability trust fund. Others claim that this is just a short-term fix, and that the root of the problem needs to be addressed.

One thing seems to be all but certain: major legislation addressing Social Security disability could be put before the United States Congress within the next year or so. There is no telling if any changes will be retroactive or not. For anyone who believes they may be eligible to receive SSD benefits, the time to apply may be now.

Source: The Hill, "Another looming crisis: Social Security Disability Insurance," James Lankford, July 7, 2015

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