Free Consultation

1-866-998-2545

SOCIAL SECURITY LAW: Social Security’s Surplus in 2009 Dissolved

February 9, 2010

Washington- The federal agency said the economic slump would “further aggravate the budget deficit”, adding that the problem may still continue up to the next year.

In a press conference, Social Security Chief Actuary Stephen Goss said the problem “is worse than expected” as the trust fund “will continue to be negative for at least two years.”

According to a data released by Social Security, the agency has accumulated more than $2.5 trillion trust fund between 1984 and before the recession as it has collected more taxes than the benefits it paid.

But in 2009, the agency has only collected $3 billion taxes, a $60 billion decline from the previous year.

Some analysts said the problem has been triggered by three factors: there is a significant decline of payroll tax revenue due to rising unemployment rate in the US; the monthly payments were increased by 5.8 percent due to high energy prices last year; and the number of retired workers and disabled individuals collecting payments rose by 20 percent and 10 percent, respectively.

List of Cities and Counties in California