The financial outlook for Social Security is eroding more quickly than previously expected, as the coronavirus pandemic has drained government revenues and put additional strain on one of the nation’s most important social safety net programs. The overall finances for Medicare, however, are expected to hold steady, though the health program is still forecast to face financial pressure in the coming years.

Annual government reports released Tuesday on the solvency of the programs underscored the questions about their long-term viability at a time when a wave of baby boomers are retiring and the economy faces ongoing uncertainty as variants of the coronavirus surge. The US economy already faces soaring federal debt levels in the coming decades, but both Democrats and Republicans have been wary of making significant structural reforms to the popular programs.

"Having strong Social Security and Medicare programs is essential in order to ensure a secure retirement for all Americans, especially for our most vulnerable populations,"&nbsp;Treasury Secretary Janet Yellen said in a statement. "The Biden-Harris Administration is committed to safeguarding these programs and ensuring they continue to deliver economic security and health care to older Americans."

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Senior administration officials said that the long-term effects of the pandemic on the programs are unclear. The actuaries were forced to make assumptions about how long Covid would continue to cause unusual patterns of hospitalisations and deaths and whether it would contribute to long-term disabilities among survivors.

The Social Security Old-Age and Survivors Insurance Trust Fund will now be depleted in 2033, a year earlier than previously projected, according to the report. At that time, the trust fund will run out of reserves and the program will be insolvent, with new tax revenues failing to cover scheduled payments. The report estimated that 76 per cent&nbsp;of scheduled benefits will be able to be paid out unless Congress changes the rules to allow full payouts.

The Disability Insurance Trust Fund is now expected to be depleted by 2057, which is eight years earlier than previously thought, at which time 91 per cent of benefits will be paid.

Medicare’s finances are effectively holding steady. While tax revenue for the Medicare program did decline as a result of the COVID-related recession, Medicare also ended up spending less money than usual last year, as people avoided elective care.

Medicare’s hospital trust fund is projected to be unable to pay all of its bills beginning in 2026. This estimate is similar to those from Medicare’s trustees in recent years. Fixing that gap now could be achieved by increasing the Medicare payroll tax rate from 2.9 per cent&nbsp;to 3.67 per cent&nbsp;or by reducing Medicare spending by 16 per cent&nbsp;each year, the report notes.

But the report highlighted that the official estimate may be unrealistically optimistic. If certain policies set to expire in the next 10 years are extended, or if other expected policy changes occur, the projections would look substantially more worrying.

Long-term, the actuaries said they did not think COVID-19 itself would have substantial influence on Medicare spending on hospital care. On the one hand, the death of many vulnerable, older Americans from the virus may reduce future spending they would otherwise have received. On the other, the actuaries expect that some people may have additional health care needs from the syndrome known as long Covid.

The actuaries declined to make any estimates on the effect of Aduhelm, a very expensive Alzheimer’s treatment that was recently approved by the Food and Drug Administration. The report said that officials were waiting for Medicare to issue guidance on how the drug will be covered before making any calculations. The drug could represent tens of billions of dollars in spending each year.

Democrats in Congress are considering a host of changes to the Medicare program, such as adding new benefits, including coverage for dental, hearing and vision care. While these changes are expected to influence Medicare’s overall finances, none of them are likely to have major effects on the trust fund, which covers only hospital care.

The financial outlook for Social Security is eroding more quickly than previously expected, as the coronavirus pandemic has drained government revenues and put additional strain on one of the nation’s most important social safety net programs.

The financial outlook for Social Security is eroding more quickly than previously expected, as the coronavirus pandemic has drained government revenues and put additional strain on one of the nation’s most important social safety net programs. The overall finances for Medicare, however, are expected to hold steady, though the health program is still forecast to face financial pressure in the coming years. Annual government reports released Tuesday on the solvency of the programs underscored the questions about their long-term viability at a time when a wave of baby boomers are retiring and the economy faces ongoing uncertainty as variants of the coronavirus surge. The US economy already faces soaring federal debt levels in the coming decades, but both Democrats and Republicans have been wary of making significant structural reforms to the popular programs. "Having strong Social Security and Medicare programs is essential in order to ensure a secure retirement for all Americans, especially for our most vulnerable populations," Treasury Secretary Janet Yellen said in a statement. "The Biden-Harris Administration is committed to safeguarding these programs and ensuring they continue to deliver economic security and health care to older Americans." Also read | Hate crimes in US spiked 6% in 2020, highest in 12 years: FBI report Senior administration officials said that the long-term effects of the pandemic on the programs are unclear. The actuaries were forced to make assumptions about how long Covid would continue to cause unusual patterns of hospitalisations and deaths and whether it would contribute to long-term disabilities among survivors. The Social Security Old-Age and Survivors Insurance Trust Fund will now be depleted in 2033, a year earlier than previously projected, according to the report. At that time, the trust fund will run out of reserves and the program will be insolvent, with new tax revenues failing to cover scheduled payments. The report estimated that 76 per cent of scheduled benefits will be able to be paid out unless Congress changes the rules to allow full payouts. The Disability Insurance Trust Fund is now expected to be depleted by 2057, which is eight years earlier than previously thought, at which time 91 per cent of benefits will be paid. Medicare’s finances are effectively holding steady. While tax revenue for the Medicare program did decline as a result of the COVID-related recession, Medicare also ended up spending less money than usual last year, as people avoided elective care. Medicare’s hospital trust fund is projected to be unable to pay all of its bills beginning in 2026. This estimate is similar to those from Medicare’s trustees in recent years. Fixing that gap now could be achieved by increasing the Medicare payroll tax rate from 2.9 per cent to 3.67 per cent or by reducing Medicare spending by 16 per cent each year, the report notes. But the report highlighted that the official estimate may be unrealistically optimistic. If certain policies set to expire in the next 10 years are extended, or if other expected policy changes occur, the projections would look substantially more worrying. Long-term, the actuaries said they did not think COVID-19 itself would have substantial influence on Medicare spending on hospital care. On the one hand, the death of many vulnerable, older Americans from the virus may reduce future spending they would otherwise have received. On the other, the actuaries expect that some people may have additional health care needs from the syndrome known as long Covid. The actuaries declined to make any estimates on the effect of Aduhelm, a very expensive Alzheimer’s treatment that was recently approved by the Food and Drug Administration. The report said that officials were waiting for Medicare to issue guidance on how the drug will be covered before making any calculations. The drug could represent tens of billions of dollars in spending each year. Democrats in Congress are considering a host of changes to the Medicare program, such as adding new benefits, including coverage for dental, hearing and vision care. While these changes are expected to influence Medicare’s overall finances, none of them are likely to have major effects on the trust fund, which covers only hospital care.

Social security is projected to be insolvent a year earlier than previously forecast

India added 472,075 employees to the state-run social security fund in February, after adding 604,557 in January, new data on payrolls released on Wednesday showed, giving a guide to how many new jobs are being created in the non-farm sector.

The Employees Provident Fund released provisional figures for six months that showed that 3.11 million workers joined the fund during the September 2017 to February 2018 period, partly due to a pick up in the economy and federal support.

“The data shows there was a good increase in jobs every month in the last six months which will now help fill the missing link for policy-making,” said Soumya Kanti Ghosh, chief economist at the country largest lender, the State Bank of India.

The new data could help Prime Minister Narendra Modi deflect criticism that promises made before the 2014 election for stronger jobs growth were not being kept despite the fastest economic growth of any major economy.

To bring more of the vast workforce into the organised sector, Modi this year announced the state would partially cover employers’ contributions to the EPF for three years.

The government says it will cover an amount up to 12 percent of employees’ salaries.

Critics say the new data overestimates job creation in the organised sector as many workers, who were working on a contract with same companies, were added to the fund due the state incentives.

It is mandatory for employers and employees of companies with 20 or more workers to contribute to the EPF, though the government plans to amend the rules so that companies with 10 or more employees have to open an account with the fund for their workers.&nbsp;

The government says it will cover an amount up to 12 percent of employees’ salaries.

India added 472,075 employees to the state-run social security fund in February, after adding 604,557 in January, new data on payrolls released on Wednesday showed, giving a guide to how many new jobs are being created in the non-farm sector. The Employees Provident Fund released provisional figures for six months that showed that 3.11 million workers joined the fund during the September 2017 to February 2018 period, partly due to a pick up in the economy and federal support. “The data shows there was a good increase in jobs every month in the last six months which will now help fill the missing link for policy-making,” said Soumya Kanti Ghosh, chief economist at the country largest lender, the State Bank of India. The new data could help Prime Minister Narendra Modi deflect criticism that promises made before the 2014 election for stronger jobs growth were not being kept despite the fastest economic growth of any major economy. To bring more of the vast workforce into the organised sector, Modi this year announced the state would partially cover employers’ contributions to the EPF for three years. The government says it will cover an amount up to 12 percent of employees’ salaries. Critics say the new data overestimates job creation in the organised sector as many workers, who were working on a contract with same companies, were added to the fund due the state incentives. It is mandatory for employers and employees of companies with 20 or more workers to contribute to the EPF, though the government plans to amend the rules so that companies with 10 or more employees have to open an account with the fund for their workers.

India shows jobs growth as 3.11 million join social security fund in six months

The Amarinder Singh government has decided to create a dedicated social security fund for the poor and deprived sections of society.

The Punjab Cabinet on Saturday gave its assent to table The Punjab Social Security Bill, 2018 in the ongoing Budget session of the assembly.

A spokesperson in the Chief Minister&#39;s Office said the Bill relates to social services in the form of pension to senior citizens, old-aged, widows, destitute women, physically challenged persons, health and accident insurance, scholarship for education of children belonging to deprived sections, and other such financial assistance to the poor and needy as may be considered necessary.

The Social Security Fund would be administered by a trust headed by the chief minister and comprising the finance minister, welfare minister and social security minister, besides various experts.

&nbsp;

The Punjab Cabinet on Saturday gave its assent to table The Punjab Social Security Bill, 2018 in the ongoing Budget session of the assembly

The Amarinder Singh government has decided to create a dedicated social security fund for the poor and deprived sections of society. The Punjab Cabinet on Saturday gave its assent to table The Punjab Social Security Bill, 2018 in the ongoing Budget session of the assembly. A spokesperson in the Chief Minister's Office said the Bill relates to social services in the form of pension to senior citizens, old-aged, widows, destitute women, physically challenged persons, health and accident insurance, scholarship for education of children belonging to deprived sections, and other such financial assistance to the poor and needy as may be considered necessary. The Social Security Fund would be administered by a trust headed by the chief minister and comprising the finance minister, welfare minister and social security minister, besides various experts.

Punjab says will set up social security fund