How is Social Security disability funded?

On Behalf of | Sep 28, 2019 | Social Security Disability

If you live in Philadelphia and are unable to work because of a disability or illness, you may be entitled to Social Security disability insurance or Supplement Security income. This fund is created by the government and often has strict requirements for who receives benefits, which can be extremely frustrating when you need the money to get by. One important thing to understand is how the disability account is funded.

According to the Social Security Administration, the Social Security Act Amendments of 1956 created the Disability Insurance Trust Fund and it became effective in 1957. There is a Board of Trustees that consists of employees of the federal government. Two are presidential appointees and under the Social Security Amendments of 1983, they serve two four-year terms and must be confirmed by the United States Senate. The other four are included because of their position in the government and include:

  • Commissioner of Social Security
  • Secretary of Labor
  • Secretary of the Treasury
  • Secretary of Health and Human Services

The fund receives money from taxes paid under the Self-Employment Contributions Act and the Federal Insurance Contributions Act. If the taxes received are not needed to pay expenses immediately, they are deposited into the fund to be used at a later day. Deposits are made into the fund every single day. Any funds not withdrawn are then invested and the interest must be deposited in the fund.

In simple terms, the taxes you pay while you are employed provide money for the Social Security fund. When you are disabled and no longer able to work, an attorney may be able to help you secure the funds you need from the fund to live and take care of yourself.

This is for educational purposes and should not be interpreted as legal advice.

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