Is the Social Security Program in a crisis situation?
There seems to be consensus that the payroll taxes will continue to fund a surplus for the Social Security Trust Fund till about 2018 albeit an ever decreasing surplus, at which time the payments to social security recipients will begin to outstrip the income from the payroll taxes. This date was at first predicted to be about 2012, but has since been pushed back to 2018. At that time, it will be necessary to begin redeeming the U.S. Treasury Bonds in the Trust Fund to fund the shortfall. Depending on whos figures you choose to accept, the Annual Report of the Social Security and Medicare Boards of Trustees or the nonpartisan Congressional Budget Office, it would be anywhere between 2042 and 2052 that the Trust Fund including the interest on the bonds is depleted. At that point, the payroll taxes, if they remain at present levels, are supposed to be able to pay about 73% of what is due retirees. Assets in the Old Age and Survivors Insurance (OASI) Trust Fund at the end of 2003 were $1.
