Treasury Secretary Janet Yellen was warns Congress for months about the potential impact by raising debt limits, and one in every of many inherent penalties was delayed Social Security checks.
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Whereas the money stays to be there to pay beneficiaries, irrespective of debt ceiling negotiations, Yellen wrote that “virtually 50 million seniors could stop receiving Social Security checks for a while” if the federal authorities is unable to pay its funds.
Nonetheless, Social Security consultants talked about Congress will uncover a technique to confirm the checks come out on time.
Alicia H. Munnell, director of the Retirement Evaluation Center at Boston Faculty, wrote that if the Treasury doesn’t have enough cash available as a consequence of paying completely different non-Social Security funds, it could possibly’t topic new debt due to the debt ceiling, which can presumably delaying Social Security funds.
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Whatever the debt ceiling state of affairs, Munnell wrote to Congress does not want to be responsible for millions of people not receiving Social Security benefits and could be further potential than legal guidelines to ensure checks are nicely timed.
Within the meantime, others talked about that working up in opposition to the debt ceiling can nonetheless end in delays. “If a debt ceiling and a shutdown have been to happen on the same time, the revenue checks would nonetheless come out,” Jason Fichtner, vice chairman and chief economist on the Bipartisan Political Center, suggested CNBC. “They might probably be delayed, nonetheless new claims couldn’t be processed.”
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Fichtner moreover well-known that profitable dedicated confidentiality fund that can only be used to pay Social Security benefits, which is completely unbiased of the debt ceiling. They’ll prioritize Social Security funds, ”Fichtner talked about. “They’ll do it legally, they usually’re going to do it.”
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Remaining updated: October 12, 2021
This textual content initially appeared on GOBankingRates.com: Social Security Uncertainty: Could Debt Ceiling Issues Delay Payments?
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