scientsts get it - why don't economists?

[acroyear]

Mike the Mad Biologist:

Roughly one-third of all Social Security payouts go to the disabled. One thing I haven't heard in all of the discussion about private Social Security accounts is how these accounts would work for the disabled. Suppose you're 45, middle class, and unable to work anymore. How much could your private account be worth? Maybe the privatizers haven't answered this, because the answer is straightforward: not very much.

A comment here says that the disability payments, while administered by SSA, are actually drawn from the general fund, not the (retirement) trust, and so shouldn't be affected.

Comments

[rsteachout.livejournal.com]

The funds for disability payments do not come from the SS Trust Fund, but from the U.S. general fund. SSA only administers the program. I wrote a long-assed explanation of this about a year and a half ago in reply to a question from dawntreader90

[acroyear70.livejournal.com]

I've left that as a comment on the original post. I'll see what dialog it produces.

[acroyear70.livejournal.com]

re-read this thread. Someone who I know actually receives payments from those programs says that SSDI *is* paid through the FICA tax, not the general fund.

this implies that how it is handled (along with medicare) when FICA is shrunk in favor of privatization IS still an issue that needs to be worked out, should privatization plans go forward.

[rsteachout.livejournal.com]

See allie's comment below. Since the original post didn't specify which program, I assumed it was SSI -- a program that all disabled individual's may qualify for. SSDI is only for workers who've earned enough SS work credits and then become disabled. From the Social Security Administration's web page:

The Social Security Administration is responsible for two major programs that provide benefits based on disability: Social Security Disability Insurance (SSDI), which is based on prior work under Social Security, and Supplemental Security Income (SSI). Under SSI, payments are made on the basis of financial need.

Social Security Disability Insurance (SSDI) is financed with Social Security taxes paid by workers, employers, and self-employed persons. To be eligible for a Social Security benefit, the worker must earn sufficient credits based on taxable work to be "insured" for Social Security purposes. Disability benefits are payable to blind or disabled workers, widow(er)s, or adults disabled since childhood, who are otherwise eligible. The amount of the monthly disability benefit is based on the Social Security earnings record of the insured worker.

Supplemental Security Income (SSI) is a program financed through general revenues. SSI disability benefits are payable to adults or children who are disabled or blind, have limited income and resources, meet the living arrangement requirements, and are otherwise eligible. The monthly payment varies up to the maximum federal benefit rate, which may be supplemented by the State or decreased by countable income and resources. See http://www.socialsecurity.gov/notices/supplemental-security-income/text-benefits-ussi.htm for an explanation of SSI benefit payment rates.

Since the two programs can be combined, overall benefits will not be affected. Where the SSDI payments end, the SSI payments (theoretically)can fill in.

[acroyear70.livejournal.com]

see, I saw "disabled" and assumed SSDI. go fig.

[acroyear70.livejournal.com]

actually, i think i meant this icon.