On the heels of news that many disability recipients could see their benefits cut off via cessation, comes news that those remaining on benefits could see those benefits reduced.
As many know, the Disability Trust fund is set to deplete by 2016 if additional funds are not reallocated to the fund before then. One way to avoid this is for Congress to divert money from the Retirement Trust Fund to the Disability Fund, an action that has happened numerous times in the past between the two accounts. Many large advocacy groups for both the disabled and aging support such a transfer.
However, a rule introduced into Congress, if passed, would prevent such a reallocation. If such a reallocation does not occur, disability recipients could see their benefits reduced by up to 20% by 2016.