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| Rep. Adrian Smith |
Nebraskans work hard each day to provide for their families. For generations, Americans have paid taxes into Social Security with the expectation the program will be there if they need it when they get older.
Without reform, the Social Security Trust Fund will continue toward insolvency. As our population has aged, the ratio of workers paying into Social Security has gone from 16-to-1 in 1950 to less than 3-to-1 today. Because of this change, Social Security is paying out more in benefits than it is taking in from workers. In fact, in the last six years the amount of benefit obligations Social Security would be unable to pay over the next 75 years has doubled to $10.6 trillion.
Two major accounts comprise Social Security: Old Age and Survivors Insurance (OASI), which pays out funds to those who have reached retirement age, and Social Security Disability Insurance (SSDI), which pays out funds to those who have been disabled and can no longer work. The SSDI fund in particular is in dire straits and without major reforms will go bankrupt in 2016. The OASI has problems of its own and is set to go insolvent sometime in the early 2030s.
If the SSDI fund runs out of money, nearly 11 million Americans will see a 20 percent reduction in benefits. This looming crisis needs long-term solutions, not another temporary bandage.
In order to address SSDI’s imminent insolvency, some in Washington want to kick the can down the road and move funds from the OASI fund to supplement the disability fund, without instituting any real reforms. Many Nebraskans facing difficulties obtaining their Social Security benefits are frustrated by the idea of taking from one fund to provide a temporary fix for another, and for good reason. Congress has shifted these funds 11 times since the 1950s, and yet we find ourselves facing the same problem in 2015.
It is time for us to address Social Security insolvency head-on. Earlier this year, the House of Representatives made a necessary change to House Rules to prohibit a transfer of funds from the retirement fund to the disability fund unless legislation is passed to improve the solvency of both funds. I fully support this effort to preserve Social Security for future generations rather than continuing to raid the retirement fund paid into by millions of Americans.
The House Ways and Means Committee is the committee of jurisdiction for Social Security reforms. My colleagues and I are holding hearings on this issue and are committed to finding lasting solutions. Recently, I was proud to again cosponsor Committee legislation to prohibit individuals from receiving both SSDI and unemployment benefits. SSDI benefits are intended for those who are physically unable to work, while unemployment benefits are intended for those who are able and are searching for employment – therefore, there should be no overlap in these two programs. Not only do we need to stop transferring money from one fund to another, but we also must find ways to combat waste, fraud and abuse.
Retirees and those nearing retirement in Nebraska should not have to worry about whether Social Security will be there when they need it most. In Congress, I will continue pursuing solutions to ensure the long-term solvency of Social Security.
Without reform, the Social Security Trust Fund will continue toward insolvency. As our population has aged, the ratio of workers paying into Social Security has gone from 16-to-1 in 1950 to less than 3-to-1 today. Because of this change, Social Security is paying out more in benefits than it is taking in from workers. In fact, in the last six years the amount of benefit obligations Social Security would be unable to pay over the next 75 years has doubled to $10.6 trillion.
Two major accounts comprise Social Security: Old Age and Survivors Insurance (OASI), which pays out funds to those who have reached retirement age, and Social Security Disability Insurance (SSDI), which pays out funds to those who have been disabled and can no longer work. The SSDI fund in particular is in dire straits and without major reforms will go bankrupt in 2016. The OASI has problems of its own and is set to go insolvent sometime in the early 2030s.
If the SSDI fund runs out of money, nearly 11 million Americans will see a 20 percent reduction in benefits. This looming crisis needs long-term solutions, not another temporary bandage.
In order to address SSDI’s imminent insolvency, some in Washington want to kick the can down the road and move funds from the OASI fund to supplement the disability fund, without instituting any real reforms. Many Nebraskans facing difficulties obtaining their Social Security benefits are frustrated by the idea of taking from one fund to provide a temporary fix for another, and for good reason. Congress has shifted these funds 11 times since the 1950s, and yet we find ourselves facing the same problem in 2015.
It is time for us to address Social Security insolvency head-on. Earlier this year, the House of Representatives made a necessary change to House Rules to prohibit a transfer of funds from the retirement fund to the disability fund unless legislation is passed to improve the solvency of both funds. I fully support this effort to preserve Social Security for future generations rather than continuing to raid the retirement fund paid into by millions of Americans.
The House Ways and Means Committee is the committee of jurisdiction for Social Security reforms. My colleagues and I are holding hearings on this issue and are committed to finding lasting solutions. Recently, I was proud to again cosponsor Committee legislation to prohibit individuals from receiving both SSDI and unemployment benefits. SSDI benefits are intended for those who are physically unable to work, while unemployment benefits are intended for those who are able and are searching for employment – therefore, there should be no overlap in these two programs. Not only do we need to stop transferring money from one fund to another, but we also must find ways to combat waste, fraud and abuse.
Retirees and those nearing retirement in Nebraska should not have to worry about whether Social Security will be there when they need it most. In Congress, I will continue pursuing solutions to ensure the long-term solvency of Social Security.
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