2019 OASDI Trustees Report

III. FINANCIAL OPERATIONS OF THE TRUST FUNDS AND
LEGISLATIVE CHANGES IN THE LAST YEAR

A. OPERATIONS OF THE OLD‑AGE AND SURVIVORS INSURANCE (OASI) AND DISABILITY INSURANCE (DI) TRUST FUNDS, IN CALENDAR YEAR 2018

This section presents detailed information on the operations of the OASI and DI Trust Funds¹ during calendar year 2018. Chapter IV provides projections for calendar years 2019 through 2095.

1. OASI Trust Fund

Table III.A1 presents a statement of the income and cost of the Federal Old-Age and Survivors Insurance Trust Fund in calendar year 2018, and of the asset reserves in the fund at the beginning and end of the calendar year. As shown in this table, total trust fund income in 2018 amounted to $831.0 billion, while cost totaled $853.5 billion, a decrease in trust fund reserves during 2018 of $22.4 billion.

Total income during calendar year 2018 included $718.3 billion in payroll tax contributions. These contributions include initial appropriations of payroll taxes, made on an estimated basis, and adjustments to appropriations for prior years to reflect actual tax income. The OASI fund paid the General Fund $2.4 billion for the estimated amount of employee payroll-tax refunds, partially offsetting these gross contributions. Employees who work for more than one employer during a year and pay contributions on total earnings in excess of the contribution and benefit base are eligible for such refunds. Net payroll tax contributions were therefore $715.9 billion in 2018.

Net reimbursements from the General Fund of the Treasury amounted to $18 million in 2018. As shown in the table, almost all of that amount came from adjustments to prior year reimbursements based on Public Law 111-312, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, Public Law 112-78, the Temporary Payroll Tax Cut Continuation Act of 2011, and Public Law 112‑96, the Middle Class Tax Relief and Job Creation Act of 2012. These acts specified General Fund reimbursement for temporary reductions in employee and self-employment payroll taxes for earnings in 2011 and 2012.

Income to the OASI Trust Fund based on the taxation of OASI benefits amounted to $34.5 billion in 2018. As first required by the 1983 Social Security Amendments, this income comes from two separate sources: (1) Federal income taxation on up to 50 percent of an individual’s or couple’s OASI benefits under certain circumstances, and (2) a tax withheld from the benefits paid to certain nonresident alien beneficiaries. For the direct Federal income tax portion, Treasury transfers estimated amounts to the OASI Trust Fund in advance at the beginning of each calendar quarter. Treasury makes subsequent adjustments based on the actual amounts shown on annual income tax records. There were two such adjustments made in 2018 totaling $2.2 billion. The amount of income from direct Federal income taxation on OASI benefits constituted approximately 99 percent of income from benefit taxation. The remaining one percent of the income from benefit taxation is the amounts withheld from the benefits paid to nonresident aliens.

In 2018, the OASI Trust Fund earned $80.7 billion in net interest, which consisted of: (1) interest earned on the investments held by the trust fund, (2) interest on adjustments in the allocation of administrative expenses between the trust fund and the General Fund account for the Supplemental Security Income program, (3) interest arising from the revised allocation of administrative expenses among the trust funds, and (4) interest on certain reimbursements to the trust fund.

The remaining income, about $188 thousand, consisted of gifts received under the provisions authorizing the deposit of monetary gifts or bequests in the trust funds.

Table III.A1.—Operations of the OASI Trust Fund, Calendar Year 2018 

[In millions]

Total asset reserves, December 31, 2017					$2,820,309
Income:
	Net payroll tax contributions:
		Payroll tax contributionsa		$718,285
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-2,420
			Net payroll tax contributionsa		715,865
	Reimbursements from the General Fund:
		Reduction in payroll tax contributions due to P.L. 111-312, P.L. 112-78, and P.L. 112-96a		18
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		18
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		217
		All other, not subject to withholdinga		34,271
			Total income from taxation of benefitsa		34,488
	Investment income and interest adjustments:
		Interest on investments		80,655
		Interest adjustmentsc		b
			Total investment income and interest adjustments		80,655
	Gifts				b
Total income					831,026
Cost:
	Benefit payments:
		Monthly benefits and lump-sum death paymentsd		844,924
		Reimbursement from the General Fund for unnegotiated checks		-36
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		7
			Net benefit paymentsd		844,895
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				4,769
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	3,277
			Department of the Treasury	530
		Offsetting miscellaneous receipts		-1
		Miscellaneous reimbursements from the General Fund e		-6
			Net administrative expenses		3,800
Total cost					853,464
Net increase in asset reserves					-22,437
	Total invested assets			2,797,974
	Undisbursed balances f			-102
Total asset reserves, December 31, 2018					2,797,872

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a

Includes adjustments for prior calendar years.

b

Between -$0.5 and $0.5 million.

c

Includes: (1) interest on adjustments in the allocation of administrative expenses between the trust fund and the General Fund account for the Supplemental Security Income program, (2) interest arising from the revised allocation of administrative expenses among the trust funds, and (3) interest on certain reimbursements to the trust fund.

d

Includes net reductions for the recovery of overpayments.

e

Reimbursements for costs incurred in performing certain legislatively mandated activities not directly related to administering the OASI program.

f

A negative balance represents a situation where the actual cash payments exceeded the amount of invested securities of the OASI Trust Fund that were redeemed to make such payments. In this situation, future redemption of additional invested securities will be required to pay for this shortfall.

Note: Totals do not necessarily equal the sums of rounded components.

Of the $853.5 billion in total OASI cost in 2018, $844.9 billion were for net benefit payments, including recovered overpayments, reimbursements from the General Fund for unnegotiated checks, and the reimbursable costs of vocational rehabilitation services.² Net benefit payments increased by 5.8 percent from calendar year 2017 to calendar year 2018. This increase is due primarily to: (1) an increase in the average number of beneficiaries during the year and (2) an increase in the average monthly benefit amount. The increase in the average benefit amount in 2018 was due in part to the automatic cost-of-living benefit increase of 2.0 percent which became effective for December 2017 under the automatic-adjustment provisions in section 215(i) of the Social Security Act. In addition, new beneficiaries tend to have higher monthly benefit amounts than previous beneficiary cohorts, because their initial benefits are based on average wages, which tend to rise faster than the cost of living.

The Railroad Retirement Act requires an annual financial interchange between the Railroad Retirement program and the OASDI program. The purpose of the interchange is to put the OASI and DI Trust Funds in the same financial position in which they would have been had railroad employment always been covered directly by Social Security. The Railroad Retirement Board and the Social Security Administration calculated an interchange of $4.8 billion from the OASI Trust Fund to the Social Security Equivalent Benefit Account for June 2018.

The remaining $3.8 billion of cost for the OASI Trust Fund were for net administrative expenses. The Social Security Administration charges administrative expenses incurred to administer the OASI program directly to the trust fund on an estimated basis. Periodically, as actual expenses are recorded, adjustments are made to the allocations of administrative expenses for prior periods. These adjustments affect the OASI Trust Fund, the DI Trust Fund, the Hospital Insurance (HI) Trust Fund, the Supplementary Medical Insurance (SMI) Trust Fund, and the General Fund account for the Supplemental Security Income program, and include appropriate interest adjustments. As described earlier, the trust fund accounting records such interest adjustments under investment income.

For 2018, the cost incurred by the Social Security Administration to administer the OASI program was 86 percent of OASI net administrative expenses. The Social Security Administration charged such costs to the trust fund in the amount of $3.3 billion in 2018. In addition, the Department of the Treasury charged the trust fund $0.5 billion in 2018 for services provided in administering the OASI program. A relatively small offset to administrative expenses of $1 million in 2018 represents income from miscellaneous receipts due to the trust fund, which may include refunds, penalties, fees, and other receipts.

Finally, the General Fund of the Treasury makes net reimbursements for administrative costs incurred by the Social Security Administration in performing certain legislatively mandated activities that are not directly related to paying OASI benefits. These reimbursements include $5 million in costs associated with union activities related to administering the OASI program and $1 million in costs of providing information to participants in certain pension plans in 2018. These miscellaneous reimbursements totaled $6 million in 2018.

The asset reserves shown for the OASI Trust Fund at the end of calendar year 2018 totaled $2,797.9 billion, consisting of $2,798.0 billion in U.S. Government obligations and, as an offset, an extension of credit of $102 million against securities to be redeemed within the first few days of the following year. The effective annual rate of interest earned by the reserves in the OASI Trust Fund during calendar year 2018 was 2.9 percent, slightly lower than the 3.0 percent earned during calendar year 2017. Table VI.A4, presented in appendix A, shows a detailed listing of OASI Trust Fund holdings by type of security, interest rate, and year of maturity at the end of calendar years 2017 and 2018.

By law, the Department of the Treasury must invest trust fund reserves in interest-bearing securities backed by the full faith and credit of the United States Government. The securities currently held by the OASI Trust Fund are entirely special issue securities sold by the Treasury only to the trust funds. These special issues are of two types: short-term certificates of indebtedness and longer-term bonds. Daily trust fund tax income is invested in the short-term certificates of indebtedness which mature on the next June 30 following the date of issue. The trust fund normally acquires long-term special-issue bonds when special issue securities of either type mature on June 30 and must be reinvested. The amount of long-term bonds acquired on June 30 is equal to the amount of special issue securities maturing (including accrued interest earnings), plus tax income for that day, less amounts required to meet cost on that day.

Section 201(d) of the Social Security Act provides that the obligations issued for purchase by the OASI and DI Trust Funds shall have maturities fixed with due regard for the needs of the funds. The usual practice has been to reinvest the maturing special issue securities, as of each June 30, so that the value of the total portfolio of special issue securities maturing in each of the next 15 years are approximately equal. Accordingly, the Department of the Treasury, in consultation with the Chief Actuary of the Social Security Administration, selected the amounts and maturity dates of the special-issue bonds purchased on June 30, 2018, so that the maturity dates of the total portfolio of special issue securities were spread evenly to the extent possible over the 15‑year period 2019 through 2033. The bonds purchased on that date have an interest rate of 2.875 percent, reflecting the average market yield, as of the last business day of the prior month, on all of the outstanding marketable U.S. obligations that are due or callable more than 4 years in the future. Table III.A7 shows additional details on the investment transactions during 2018, including the amounts of bonds purchased on June 30, 2018.

2. DI Trust Fund

Table III.A2 presents a statement of the income and cost of the Federal Disability Insurance Trust Fund in calendar year 2018, and of the asset reserves in the fund at the beginning and end of the calendar year.

Line entries in the DI statement are similar to those in the OASI statement. The explanations of the OASI entries generally apply to DI as well.

Of the $172.3 billion in total income, $169.2 billion was net payroll tax contributions.

Of the $146.8 billion of total cost, $143.7 billion was net benefit payments. The total level of net benefit payments in 2018 increased by 0.7 percent from total net benefit payments paid in 2017, largely due to an increase in average benefit amounts and an offsetting decrease in the average number of beneficiaries. Non-interest income, and total income, exceeded total cost in 2018 due primarily to the temporary reallocation of the payroll tax rate from OASI to DI for years 2016 through 2018. DI total cost exceeded non-interest income from 2005 to 2015, and exceeded total income to the trust fund from 2009 to 2015.

Table III.A2.—Operations of the DI Trust Fund, Calendar Year 2018

[In millions]

Total asset reserves, December 31, 2017					$71,480
Income:
	Net payroll tax contributions:
		Payroll tax contributionsa		$169,769
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-583
			Net payroll tax contributionsa		169,186
	Reimbursements from the General Fund:
		Reduction in payroll tax contributions due to P.L. 111-312, P.L. 112-78, and P.L. 112-96a		3
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		3
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		4
		All other, not subject to withholdinga		526
			Total income from taxation of benefitsa		530
	Investment income and interest adjustments:
		Interest on investments		2,626
		Interest adjustments c		3
			Total investment income and interest adjustments		2,628
	Gifts				—
Total income					172,347
Cost:
	Benefit payments:
		Monthly benefitsd		143,656
		Reimbursement from the General Fund for unnegotiated checks		-19
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		103
			Net benefit paymentsd		143,741
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				174
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	2,745
			Department of the Treasury	96
		Demonstration projects		19
		Miscellaneous reimbursements from the General Fund e		-4
			Net administrative expenses		2,856
Total cost					146,770
Net increase in asset reserves					25,577
	Total invested assets			97,201
	Undisbursed balancesf			-144
Total asset reserves, December 31, 2018					97,057

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a

Includes adjustments for prior calendar years.

b

Between -$0.5 and $0.5 million.

c

Includes: (1) interest on adjustments in the allocation of administrative expenses between the trust fund and the General Fund account for the Supplemental Security Income program, (2) interest arising from the revised allocation of administrative expenses among the trust funds, and (3) interest on certain reimbursements to the trust fund.

d

Includes net reductions for the recovery of overpayments.

e

Reimbursements for costs incurred in performing legislatively mandated activities not directly related to administering the DI program.

f

A negative balance represents a situation where the actual cash payments exceeded the amount of invested securities of the DI Trust Fund that were redeemed to make such payments. In this situation, future redemption of additional invested securities will be required to pay for this shortfall.

Note: Totals do not necessarily equal the sums of rounded components.

During 2018, the reserves in the DI Trust Fund increased by $25.6 billion, from $71.5 billion at the end of 2017 to $97.1 billion at the end of 2018. This $97.1 billion consisted of $97.2 billion in U.S. Government obligations and, as an offset, an extension of credit of $144 million against securities to be redeemed within the first few days of the following year. The effective annual rate of interest earned by the asset reserves in the DI Trust Fund during calendar year 2018 was 3.1 percent, slightly lower than the 3.2 percent earned during calendar year 2017. Table VI.A5 shows a detailed listing of DI Trust Fund holdings by type of security, interest rate, and year of maturity at the end of calendar years 2017 and 2018.

Section 201(d) of the Social Security Act provides that the Treasury securities issued for purchase by the OASI and DI Trust Funds shall have maturities fixed with due regard for the needs of the funds. Each year, bond purchases for each trust fund are made on June 30, taking into account the projected reserve depletion date in the most recently issued Trustees Report. The usual practice has been to reinvest the maturing special issue securities, as of each June 30, so that the values of the securities maturing in each of the next 15 years are approximately equal. However, as of June 2018, the Trustees projected that the reserves in the DI Trust Fund would be depleted within 15 years. Therefore, the Department of the Treasury, in consultation with the Chief Actuary of the Social Security Administration, selected the amounts and maturity dates of the DI special-issue bonds purchased on June 30, 2018, so that the bonds would mature over the 14-year period 2019-32. The bonds purchased have an interest rate of 2.875 percent, reflecting the average market yield, as of the last business day of the prior month, on the outstanding marketable U.S. obligations that are due or callable more than 4 years in the future. As of June 30, 2018, most of the invested asset reserves of the DI Trust Fund had maturity dates of June 30 in 2019 through 2023, so this investment approach required that all bond purchases on June 30, 2018 be split over the maturity dates of June 30, 2024 through June 30, 2032. Table III.A7 shows details on investment transactions during 2018.

3. OASI and DI Trust Funds, Combined

Table III.A3 presents a statement of the operations of the OASI and DI Trust Funds on a hypothetical combined basis.³ The entries in this table represent the sums of the corresponding values from tables III.A1 and III.A2. The two preceding subsections that cover OASI and DI provide a description of the nature of these income and cost transactions.

Table III.A3.—Operations of the Combined OASI and DI Trust Funds,
Calendar Year 2018 

[In millions]

Total asset reserves, December 31, 2017					$2,891,789
Income:
	Net payroll tax contributions:
		Payroll tax contributionsa		$888,054
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-3,003
			Net payroll tax contributionsa		885,051
	Reimbursements from the General Fund:
		Reduction in payroll tax contributions due to P.L. 111-312, P.L. 112-78, and P.L. 112-96a		21
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		21
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		220
		All other, not subject to withholdinga		34,797
			Total income from taxation of benefitsa		35,017
	Investment income and interest adjustments:
		Interest on investments		83,280
		Interest adjustments c		3
			Total investment income and interest adjustments		83,283
	Gifts				b
Total income					1,003,373
Cost:
	Benefit payments:
		Monthly benefits and lump-sum death paymentsd		988,580
		Reimbursement from the General Fund for unnegotiated checks		-55
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		111
			Net benefit paymentsd		988,635
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				4,942
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	6,022
			Department of the Treasury	625
		Offsetting miscellaneous receipts		-1
		Demonstration projects		19
		Miscellaneous reimbursements from the General Fund e		-10
			Net administrative expenses		6,656
Total cost					1,000,233
Net increase in asset reserves					3,140
	Total invested assets			2,895,175
	Undisbursed balancesf			-246
Total asset reserves, December 31, 2018					2,894,929

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a

Includes adjustments for prior calendar years.

b

Between -$0.5 and $0.5 million.

c

Includes: (1) interest on adjustments in the allocation of administrative expenses between the trust funds and the General Fund account for the Supplemental Security Income program, (2) interest arising from the revised allocation of administrative expenses among the trust funds, and (3) interest on certain reimbursements to the trust funds.

d

Includes net reductions for the recovery of overpayments.

e

Reimbursements for costs incurred in performing certain legislatively mandated activities not directly related to administering the OASI and DI programs.

f

A negative balance represents a situation where the actual cash payments exceeded the amount of invested securities of the OASI and DI Trust Funds that were redeemed to make such payments. In this situation, future redemption of additional invested securities will be required to pay for this shortfall.

Note: Totals do not necessarily equal the sums of rounded components.

Table III.A4 compares estimates of total income and total cost for calendar year 2018 from the intermediate projections in the 2014 through 2018 Trustees Reports to the corresponding actual amounts for 2018.

Table III.A4.—Comparison of Actual Calendar Year 2018 Trust Fund Operations
With Estimates Made in Prior Reports, Based on Intermediate Assumptions ^a 

[Amounts in billions]

		Total income  b			Total cost
		Amount	Difference from actual (percent)		Amount	Difference from actual (percent)
OASI Trust Fund:
	Estimate in 2014 report	$965.3	16.2		$920.5	7.9
	Estimate in 2015 report	949.7	14.3		909.8	6.6
	Estimate in 2016 report	873.2	5.1		873.2	2.3
	Estimate in 2017 report	873.6	5.1		859.0	.6
	Estimate in 2018 report	828.2	-.3		853.6	c
	Actual amount	831.0	—		853.5	—
DI Trust Fund:
	Estimate in 2014 report	d	d		167.1	13.9
	Estimate in 2015 report	d	d		165.7	12.9
	Estimate in 2016 report	181.4	5.3		159.4	8.6
	Estimate in 2017 report	182.6	6.0		152.5	3.9
	Estimate in 2018 report	172.9	.3		149.3	1.7
	Actual amount	172.3	—		146.8	—
OASI and DI Trust Funds, combined:
	Estimate in 2014 report	1,105.0	10.1		1,087.6	8.7
	Estimate in 2015 report	1,088.4	8.5		1,075.5	7.5
	Estimate in 2016 report	1,054.7	5.1		1,032.5	3.2
	Estimate in 2017 report	1,056.2	5.3		1,011.5	1.1
	Estimate in 2018 report	1,001.1	-.2		1,002.8	.3
	Actual amount	1,003.4	—		1,000.2	—

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a

Percentage differences are calculated prior to rounding.

b

“Actual” income for 2018 reflects adjustments to payroll tax contributions for prior calendar years (see appendix A for description of these adjustments). “Estimated” income also includes such adjustments, but on an estimated basis.

c

Between -0.05 and 0.05 percent.

d

In the annual reports for 2014 and 2015, the DI Trust Fund was projected to become depleted in calendar year 2016 under the intermediate assumptions. Under those circumstances, scheduled benefits could not be paid in full on a timely basis, so that certain projected items of income such as income from taxing benefits and interest on trust fund reserves could not be meaningfully projected. Accordingly, total DI Trust Fund income was not reported for 2018 in those earlier reports. Following the tax rate reallocation enacted in the Bipartisan Budget Act of 2015, the DI Trust Fund was not projected to become depleted until after 2018 in the 2016 through 2018 reports, and thus an estimate for total income was reported. Appendix A presents a detailed description of the components of income and cost, along with complete historical values.

Note: Totals do not necessarily equal the sums of rounded components.

A number of factors contribute to differences between estimates and subsequent actual amounts, including: (1) actual values for key demographic, economic, and other variables that differ from earlier assumed levels; and (2) legislation that was enacted or other administrative initiatives that were finalized after the Trustees completed their estimates.

At the end of calendar year 2018, the OASDI program was providing monthly benefits to about 62.9 million people. The OASI Trust Fund was providing benefits to about 52.7 million people and the DI Trust Fund was providing benefits to about 10.2 million people. The number of people receiving benefits from the OASI Trust Fund grew by 2.4 percent while the number of people receiving DI benefits fell by 2.4 percent during calendar year 2018. These changes are in large part due to the gradual aging of the population, with the earliest cohorts of the baby-boom generation now moving above normal retirement age, where DI benefits are no longer applicable. Table III.A5 shows the estimated distributions of benefit payments in calendar years 2017 and 2018, by type of beneficiary, for each trust fund separately.

 

Table III.A5.—Distribution of Benefit Payments by Type of Beneficiary or Payment, Calendar Years 2017 and 2018 

[Amounts in millions]

				Calendar year 2017			Calendar year 2018
				Amount	Percentage of total		Amount	Percentage of total
Total OASDI benefit payments				$941,461	100.0		$988,580	100.0
	OASI benefit payments			798,722	84.8		844,924	85.5
	DI benefit payments			142,740	15.2		143,656	14.5
OASI benefit payments, total				798,722	100.0		844,924	100.0
	Monthly benefits:
		Retired workers and auxiliaries		680,233	85.2		723,542	85.6
			Retired workers	644,181	80.7		686,099	81.2
			Spouses	30,493	3.8		31,615	3.7
			Children	5,559	.7		5,828	.7
		Survivors of deceased workers		118,279	14.8		121,175	14.3
			Aged widows and widowers	94,307	11.8		96,623	11.4
			Disabled widows and widowers	2,375	.3		2,372	.3
			Parents	20	a		20	a
			Children	20,048	2.5		20,660	2.4
			Widowed mothers and fathers caring for child beneficiaries	1,529	.2		1,500	.2
	Lump-sum death payments			210	a		207	a
DI benefit payments, total				142,740	100.0		143,656	100.0
		Disabled workers		133,871	93.8		134,962	93.9
		Spouses		551	.4		536	.4
		Children		8,318	5.8		8,158	5.7

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a

Less than 0.05 percent.

Note: Benefits are monthly benefits and lump-sum death payments. Totals do not necessarily equal the sums of rounded components.

Net administrative expenses of the OASI and DI Trust Funds in calendar year 2018 totaled $6.7 billion, equal to 0.7 percent each of total cost and total income. Table III.A6 shows corresponding percentages for each trust fund separately and for OASDI as a whole for the last 5 years.

Table III.A6.—Administrative Expenses as a Percentage of Total Income and
of Total Cost, Calendar Years 2014-2018

Calendar year	OASI Trust Fund			DI Trust Fund			OASI and DI Trust Funds, combined
	Total income	Total cost		Total income	Total cost		Total income	Total cost
2014	0.4	0.4		2.6	2.0		0.7	0.7
2015	.4	.4		2.4	1.9		.7	.7
2016	.4	.4		1.7	1.9		.7	.7
2017	.4	.5		1.6	1.9		.6	.7
2018	.5	.4		1.7	1.9		.7	.7

The acquisition and redemption of securities during calendar year 2018 changed the invested reserves of the OASI and DI Trust Funds. Table III.A7 presents investment transactions for each fund separately and combined.

 

Table III.A7.—Trust Fund Investment Transactions, Calendar Year 2018

[In millions]

			OASI Trust Fund	DI Trust Fund	OASI and DI Trust Funds, combined
Invested asset reserves, December 31, 2017a			$2,820,368	$71,624	$2,891,992
Acquisitions:
	Special issue securities:
		Certificates of indebtedness	801,981	174,308	976,289
		Bonds b	176,890	32,617	209,507
		Total acquisitions	978,870	206,925	1,185,795
Redemptions:
	Special issue securities:
		Certificates of indebtedness	797,475	172,027	969,502
		Bonds	203,789	9,321	213,110
		Total redemptions	1,001,265	181,348	1,182,613
Net increase in invested asset reserves			-22,394	25,577	3,183
Invested asset reserves, December 31, 2018a			2,797,974	97,201	2,895,175

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a

Invested asset reserves differ from total asset reserves by the amount of undisbursed balances. See tables VI.A4 and VI.A5 for details.

b

Purchased on June 30, 2018. The interest rate on these purchases was 2.875 percent.

Note: Investments are shown at par value. Totals do not necessarily equal the sums of rounded components.

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1

See www.ssa.gov/oact/ProgData/fundsQuery.html.

2

Vocational rehabilitation services under the OASI program are furnished to disabled widow(er) beneficiaries and to those children of retired or deceased workers who receive benefits based on disabilities that began before age 22. The trust funds reimburse the providers of such services only in those cases where the services contributed to the successful rehabilitation of the beneficiary.

3

The OASI and DI Trust Funds are distinct legal entities which operate independently. To illustrate the actuarial status of the program as a whole, the fund operations are often combined on a hypothetical basis.