Many people are concerned about the future of Social Security. However, to understand the worry, it is best to look at the two trust funds that make up Social Security.

Financing Social Security

According to Think Advisor, there are two trust funds for the Social Security program. These two Trust Funds are the Old-Age and Survivors Insurance (OASI) trust fund and the Disability Insurance (DI) trust fund.

A 12.4% tax on workers’ earnings finances the two funds, Think Advisor notes. Splitting the finances into two, 10.6% of the 12.4% tax goes to the OASI fund. Meanwhile, the remaining 1.8% goes into the DI fund.

Purpose

The Trust Funds serve two purposes. These include paying beneficiaries what they’re entitled to and paying for any administrative costs associated, Think Advisor reports.

Finally, any remaining funds are required to be invested in special-issue Treasury bonds. These bonds are only available for Social Security investments.

Management

The Department of the Treasury manages these accounts. Meanwhile, a Board of Trustees oversees the Trust Funds’ financial operations. This board of trustees reports to Congress annually.

Looking Toward the Future

Think Advisor details, “future generations … will have to cover the future redemptions of bonds issued today because the federal government has used the money it received from Social Security to pay for education, wars, and other items.”

At Senior Security Alliance, we firmly believe this is wrong. Money collected and deposited into the Trust Funds belongs to eligible senior citizens as benefit payments.

This means the money should never be transferred to the General Fund, used to pay unrelated operating expenses, or be “borrowed” by the Federal government. This all detailed as right number 4 of our bill, The Senior Citizens Bill of Rights.

Check out how you can help urge the politicians in Washington pass our bill. Help us secure a more financially secure future for senior citizens.

Please sign our petition today –