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Wednesday 17 August 2022
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Are There Changes Coming to NY Social Security Laws?

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Recent legislation concerning the debt ceiling affects how social security, the nation’s largest social insurance program, will continue to be funded, the timeline on benefits payments, and more. For those who work in more dangerous jobs, this information is extremely relevant. For example, according to the U.S. Bureau of Labor Statistics, the metal fabrication industry is on track to add 12,000 jobs in the next 10 years.

With more people entering this field, the chances that at least some of them will become injured on the job and need to collect from this fund is great. The big question for New York state residences is whether these changes will be affecting New York social security laws.

What is Social Security Disability Insurance?

Title II, also known as Social Security Disability Insurance (SSDI), is one of two programs run by the Social Security Administration (SSA). Title 16 is the Supplemental Security Income (SSI) program and is the other branch under the SSA. While both programs provide supplemental income to individuals, there are different qualifications for each program in order to become eligible. For SSDI, an individual must be physically or mentally restricted from being employed because of a disability. In other words, this program is for those who have worked at least 5 of the last 10 years before becoming disabled.

Why Do Social Security Disability Insurance Payments Matter?

For individuals with a disability, these payments can help them obtain the care they require, which is good because this help can be hard to find.

In fact, according to the Association of American Medical Colleges, by 2025 there will be an estimated deficit of between 14,900 and 35,600 primary care physicians, and specialties that are non-primary care are estimated to experience a deficit of between 37,400 and 60,300. What this means is that patients may have to travel farther or pay more in order to get the care they need, making the legislation changes coming to SSA increasingly important to pay attention to.

How Does Recent Legislation Affect NY Social Security Laws?

There have been recent changes to SSDI, and most of them are positive changes. For example, the compassionate allowances for those collecting SSDI have been expanded, making it easier and more straightforward to obtain the benefits needed for those who have a disability. A 5.9% increase in benefits has also been recently approved for the 2022 year.

Unfortunately, trust funds that help to fund the SSI program as a whole have been projected to be depleted a year sooner than previously estimated. This means that the way the program will be funded in the future is changing. Read on for information on changes coming to the way SSI will be funded.

How Will SSI Be Funded in the Future

The recent talks over the legislation of the national debt ceiling have brought into question how the nation’s largest social insurance program will be funded in the future. These changes will be effective in 2022.

  • The earnings subject to social security income tax will raise to those with incomes up to $147,000.
  • The retirement age for people to receive full benefits will raise to 67 for those born in 1960.

Another proposed change that is still in talks, but may affect NY social security laws going forward is taxes on the benefits of recipients of SSI payments in both programs could go up, affecting how much your payments are.

This information is most relevant to those who are about to or are already receiving some kind of SSI benefit as the amount that is taxed on those supplemental payments may increase in the future. In order to be prepared, continue to keep a lookout for changes to NY social security laws.