2016 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 2015

This section presents detailed information on the operations of the OASI and DI Trust Funds¹ during calendar year 2015. Chapter IV provides projections for calendar years 2016 through 2090.

1. OASI Trust Fund

Table III.A1 presents a statement of the income and disbursements of the Federal Old-Age and Survivors Insurance Trust Fund in calendar year 2015, 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 receipts in 2015 amounted to $801.6 billion, while disbursements totaled $750.5 billion, an increase in trust fund reserves during 2015 of $51.0 billion.²

Total receipts during calendar year 2015 included $681.9 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 receipts. 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 $679.5 billion in 2015.

Net reimbursements from the General Fund of the Treasury amounted to $0.3 billion in 2015. As shown in the table, adjustments to prior year receipts 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, account for almost all of the reimbursement for the year, or about $266 million. These acts specified General Fund reimbursement for temporary reductions in employee and self-employment payroll taxes for earnings in 2011 and 2012.

The remainder was a reimbursement of $12 million in 2015 under the provisions of Public Law 110-246, the Food, Conservation, and Energy Act of 2008.

Income based on taxation of OASI benefits amounted to $30.6 billion in 2015. About 99 percent of this income represents amounts credited to the trust funds, generally in advance of the actual receipt of taxes by the Treasury. These credited amounts represent the net amount of initial estimated taxes transferred for tax liabilities in 2015 and adjustments to initial amounts transferred for prior periods. The remaining one percent of the total income from taxation of benefits represents amounts withheld from the benefits paid to nonresident aliens.

In 2015, the OASI Trust Fund earned $91.2 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 Social Security Act authorizes the deposit of monetary gifts or bequests in the trust funds. In 2015, there were no such receipts by the OASI Trust Fund.

Table III.A1.—Operations of the OASI Trust Fund, Calendar Year 2015 

[In millions]

Total asset reserves, December 31, 2014					$2,729,233
Receipts:
	Net payroll tax contributions:
		Payroll tax contributionsa		$681,896
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-2,393
			Net payroll tax contributionsa		679,503
	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		266
		Reimbursements directed by P.L. 110-246		12
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		278
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		191
		All other, not subject to withholdinga		30,363
			Total income from taxation of benefitsa		30,554
	Investment income and interest adjustments:
		Interest on investments		91,225
		Interest adjustmentsc		2
			Total investment income and interest adjustments		91,227
	Gifts				—
Total receipts					801,561
Disbursements:
	Benefit payments:
		Monthly benefits and lump-sum death paymentsd e		742,939
		Reimbursement from the General Fund for unnegotiated checks		-33
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		2
			Net benefit paymentsd e		742,908
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				4,258
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	2,996
			Department of the Treasury	390
		Offsetting miscellaneous receipts		-4
		Miscellaneous reimbursements from the General Fund f		-6
			Net administrative expenses		3,376
Total disbursementse					750,542
Net increase in asset reservese					51,019
	Total invested assetse			2,760,518
	Undisbursed balancese g			19,734
Total asset reserves, December 31, 2015e					2,780,251

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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

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $19.7 billion. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year.

f

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

g

Primarily consists of benefit payments designated to be paid on January 3, 2016 that were actually paid on December 31, 2015, as well as a relatively small amount of cash held by the Department of Treasury for payment of benefits.

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

Of the $750.5 billion in total OASI disbursements in 2015, $742.9 billion was for net benefit payments,³ including recovered overpayments, reimbursements from the General Fund for unnegotiated checks, and the reimbursable costs of vocational rehabilitation services.⁴ Net benefit payments increased by 5.1 percent from calendar year 2014 to calendar year 2015. This increase is due primarily to: (1) an increase in the total number of beneficiaries and (2) an increase in the average benefit amount. The increase in the average benefit amount in 2015 was due in large part to the automatic cost-of-living benefit increase of 1.7 percent which became effective for December 2014 under the automatic-adjustment provisions in section 215(i) of the Social Security Act. In addition, new beneficiaries tend to have higher benefits than previous cohorts.

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 $4.3 billion from the OASI Trust Fund to the Social Security Equivalent Benefit Account for June 2015.

The remaining $3.4 billion of disbursements from the OASI Trust Fund represents 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, they adjust the allocations of administrative expenses for prior periods. These adjustments affect the OASI Trust Fund, the DI Trust Fund, the HI Trust Fund, the 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 2015, the cost incurred by the Social Security Administration to administer the OASI program was 89 percent of OASI net administrative expenses. The Social Security Administration charges such costs to the trust fund ($3.0 billion in 2015). In addition, the Department of the Treasury charges to the trust fund expenses ($0.4 billion in 2015) for services provided in administering the OASI program. A relatively small offset ($4 million in 2015) to administrative expenses 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 legislatively mandated activities that are not directly related to the OASI program. These reimbursements include the costs associated with union activities related to administering the OASI program ($4 million in 2015) and with the provision of information to participants in certain pension plans ($2 million in 2015). These miscellaneous reimbursements totaled $6 million in 2015.

The asset reserves shown for the OASI Trust Fund at the end of calendar year 2015 totaled $2,780.3 billion, consisting of $2,760.5 billion in U.S. Government obligations and cash totaling $19.7 billion that would have been invested at the end of the year except for the advance payment of benefits scheduled for payment on January 3, 2016.⁵ The effective annual rate of interest earned by the reserves in the OASI Trust Fund during calendar year 2015 was 3.3 percent, slightly lower than the 3.6 percent earned during calendar year 2014. 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 2014 and 2015.

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. Those securities currently held by the OASI Trust Fund are special issues, that is, securities sold only to the trust funds. These special issues are of two types: short-term certificates of indebtedness and longer-term bonds. Daily receipts are 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 issues 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 issues maturing (including accrued interest earnings), plus tax receipts for that day, less amounts required to meet expenditures 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 issues, as of each June 30, so that the value of the 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, 2015, so that the maturity dates of the total portfolio of special issues were spread evenly over the 15‑year period 2016 through 2030. The bonds purchased on that date have an interest rate of 2.000 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 2015, including the amounts of bonds purchased on June 30, 2015.

2. DI Trust Fund

Table III.A2 presents a statement of the income and disbursements of the Federal Disability Insurance Trust Fund in calendar year 2015, 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 $118.6 billion in total receipts, $115.4 billion was net payroll tax contributions.

Of the $146.6 billion of total disbursements, $143.4 billion was net benefit payments.⁶ Net benefit payments increased by 1.2 percent from calendar year 2014 to calendar year 2015. This increase in DI benefit payments was due to the same factors described earlier for OASI benefit payments. Total DI disbursements exceeded non-interest income in years 2005 through 2015 and exceeded total income in years 2009 through 2015.

Table III.A2.—Operations of the DI Trust Fund, Calendar Year 2015

[In millions]

Total asset reserves, December 31, 2014					$60,244
Receipts:
	Net payroll tax contributions:
		Payroll tax contributionsa		$115,796
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-406
			Net payroll tax contributionsa		115,389
	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		45
		Reimbursements directed by P.L. 110-246		2
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		47
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		4
		All other, not subject to withholdinga		1,067
			Total income from taxation of benefitsa		1,071
	Investment income and interest adjustments:
		Interest on investments		2,087
		Interest adjustmentsc		1
			Total investment income and interest adjustments		2,088
Total receipts					118,595
Disbursements:
	Benefit payments:
		Monthly benefitsd e		143,282
		Reimbursement from the General Fund for unnegotiated checks		-19
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		107
			Net benefit paymentsd e		143,370
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				419
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	2,715
			Department of the Treasury	68
		Demonstration projects		14
		Miscellaneous reimbursements from the General Fund 7		-4
			Net administrative expenses		2,792
Total disbursementse					146,581
Net increase in asset reservese					-27,985
	Total invested assetse			26,101
	Undisbursed balancese g			6,157
Total asset reserves, December 31, 2015e					32,259

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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

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $6.1 billion. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year.

f

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

g

Primarily consists of benefit payments designated to be paid on January 3, 2016 that were actually paid on December 31, 2015, as well as a relatively small amount of cash held by the Department of Treasury for payment of benefits.

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

During 2015, the reserves in the DI Trust Fund decreased by $28.0 billion, from $60.2 billion at the end of 2014 to $32.3 billion at the end of 2015. The $32.3 billion reserves in the DI Trust Fund at the end of calendar year 2015 consisted of $26.1 billion in U.S. Government obligations and cash totaling $6.2 billion. The effective annual rate of interest earned by the asset reserves in the DI Trust Fund during calendar year 2015 was 4.6 percent, slightly higher than the 4.5 percent earned during calendar year 2014. Table VI.A5, presented in appendix A, 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 2014 and 2015.

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. The usual practice has been to reinvest the maturing special issues, 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 2015, 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, 2015, so that the amount of special issues would mature on June 30, 2016. The bonds purchased have an interest rate of 2.000 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. As of June 30, 2015, the DI Trust Fund had already redeemed all of the bonds coming due on June 30, 2016, so this investment approach required that all bond purchases on June 30, 2015 be invested in bonds with a maturity date of June 30, 2016. Table III.A7 shows additional details on the investment transactions during 2015.

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.⁷ 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 expenditure transactions.

Table III.A3.—Operations of the Combined OASI and DI Trust Funds,
Calendar Year 2015 

[In millions]

Total asset reserves, December 31, 2014					$2,789,476
Receipts:
	Net payroll tax contributions:
		Payroll tax contributionsa		$797,691
		Payments from the General Fund of the Treasury for payroll tax contributions subject to refunda		-2,800
			Net payroll tax contributionsa		794,892
	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		311
		Reimbursements directed by P.L. 110-246		14
		Payroll tax credits due to P.L. 98-21a		b
			Net General Fund reimbursementsa		325
	Income based on taxation of benefit payments:
		Withheld from benefit payments to nonresident aliens		195
		All other, not subject to withholdinga		31,430
			Total income from taxation of benefitsa		31,625
	Investment income and interest adjustments:
		Interest on investments		93,312
		Interest adjustmentsc		3
			Total investment income and interest adjustments		93,314
	Gifts				—
Total receipts					920,157
Disbursements:
	Benefit payments:
		Monthly benefits and lump-sum death paymentsd e		886,221
		Reimbursement from the General Fund for unnegotiated checks		-52
		Payment for costs of vocational rehabilitation services for disabled beneficiaries		109
			Net benefit paymentsd e		886,278
	Financial interchange with the Railroad Retirement “Social Security Equivalent Benefit Account”				4,677
	Administrative expenses:
		Costs incurred by:
			Social Security Administration	5,711
			Department of the Treasury	457
		Offsetting miscellaneous receipts		-4
		Demonstration projects		14
		Miscellaneous reimbursements from the General Fund f		-9
			Net administrative expenses		6,169
Total disbursementse					897,123
Net increase in asset reservese					23,034
	Total invested assetse			2,786,619
	Undisbursed balancese g			25,891
Total asset reserves, December 31, 2015e					2,812,510

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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

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $25.9 billion. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year.

f

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

g

Primarily consists of benefit payments designated to be paid on January 3, 2016 that were actually paid on December 31, 2015, as well as a relatively small amount of cash held by the Department of Treasury for payment of benefits.

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

Table III.A4 compares estimates of total income and total expenditures for calendar year 2015 from the 2011 through 2015 Trustees Reports to the corresponding actual amounts for 2015.

Table III.A4.—Comparison of Actual Calendar Year 2015 Trust Fund Operations
With Estimates Made in Prior Reports, Based on Intermediate Assumptions ^a 

[Amounts in billions]

		Total incomeb			Total expenditures c
		Amount	Difference from actual (percent)		Amount	Difference from actual (percent)
OASI Trust Fund:
	Estimate in 2011 report	$893.7	11.5		$757.2	0.9
	Estimate in 2012 report	851.6	6.2		773.8	3.1
	Estimate in 2013 report	826.9	3.2		770.3	2.6
	Estimate in 2014 report	816.8	1.9		758.7	1.1
	Estimate in 2015 report	796.3	-.7		754.7	.6
	Actual amount	801.6	—		750.5	—
DI Trust Fund:
	Estimate in 2011 report	129.7	9.4		153.8	5.0
	Estimate in 2012 report	124.7	5.2		159.3	8.7
	Estimate in 2013 report	123.1	3.8		155.2	5.9
	Estimate in 2014 report	121.2	2.2		151.0	3.0
	Estimate in 2015 report	117.6	-.8		149.9	2.3
	Actual amount	118.6	—		146.6	—
OASI and DI Trust Funds, combined:
	Estimate in 2011 report	1,023.4	11.2		911.0	1.5
	Estimate in 2012 report	976.3	6.1		933.2	4.0
	Estimate in 2013 report	950.0	3.2		925.5	3.2
	Estimate in 2014 report	938.0	1.9		909.7	1.4
	Estimate in 2015 report	913.9	-.7		904.7	.8
	Actual amount	920.2	—		897.1	—

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1

Percentage differences are calculated prior to rounding.

2

“Actual” income for 2015 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.

3

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $19.7 billion for the OASI Trust Fund and $6.1 billion for the DI Trust Fund. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year.

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 2015, the OASDI program was providing monthly benefits to about 60.0 million people. The OASI Trust Fund was providing benefits to about 49.2 million people and the DI Trust Fund was providing benefits to about 10.8 million people. The number of people receiving benefits from the OASI Trust Fund grew by 2.2 percent while the number of people receiving DI benefits fell by 1.1 percent during calendar year 2015. These changes reflect the gradual aging of the population, with the baby-boom generation 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 2014 and 2015, by type of beneficiary, for each trust fund separately.

 

Table III.A5.—Distribution of Benefit Payments^a by Type of Beneficiary or Payment, Calendar Years 2014 and 2015 

[Amounts in millions]

				Calendar year 2014			Calendar year 2015
				Amount	Percentage of total		Amount	Percentage of total
Total OASDI benefit payments				$848,443	100.0		$886,221	100.0
	OASI benefit payments			706,821	83.3		742,939	83.8
	DI benefit payments			141,622	16.7		143,282	16.2
OASI benefit payments, total				706,821	100.0		742,939	100.0
	Monthly benefits:
		Retired workers and auxiliaries		592,578	83.8		626,378	84.3
			Retired workers	560,120	79.2		592,423	79.7
			Spouses	27,484	3.9		28,760	3.9
			Children	4,974	.7		5,195	.7
		Survivors of deceased workers		114,044	16.1		116,352	15.7
			Aged widows and widowers	90,862	12.9		92,748	12.5
			Disabled widows and widowers	2,330	.3		2,368	.3
			Parents	21	b		21	b
			Children	19,192	2.7		19,597	2.6
			Widowed mothers and fathers caring for child beneficiaries	1,638	.2		1,618	.2
	Lump-sum death payments			199	b		209	b
DI benefit payments, total				141,622	100.0		143,282	100.0
		Disabled workers		132,154	93.3		133,945	93.5
		Spouses		598	.4		588	.4
		Children		8,870	6.3		8,749	6.1

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a

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $19.7 billion for the OASI Trust Fund and $6.1 billion for the DI Trust Fund. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year.

b

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 2015 totaled $6.2 billion. This amount is equal to 0.7 percent of total expenditures and 0.7 percent of non-interest income. Table III.A6 shows corresponding percentages for each trust fund separately and for the OASDI program as a whole for each of the last 5 years.

Table III.A6.—Administrative Expenses as a Percentage of Non-interest Income and of Total Expenditures, Calendar Years 2011-2015

Calendar year	OASI Trust Fund			DI Trust Fund			OASI and DI Trust Funds, combined
	Non-interest income	Total expenditures		Non-interest income	Total expenditures		Non-interest income	Total expenditures
2011	0.6	0.6		3.0	2.2		0.9	0.9
2012	.5	.5		2.8	2.1		.9	.8
2013	.5	.5		2.6	1.9		.8	.7
2014	.5	.4		2.6	2.0		.8	.7
2015	.5	.4		2.4	1.9		.7	.7

The acquisition and disposition of securities during calendar year 2015 changed the invested reserves of the OASI Trust Fund and the DI Trust Fund. Table III.A7 presents these investment transactions for each trust fund separately and for the trust funds combined.

 

Table III.A7.—Trust Fund Investment Transactions, Calendar Year 2015

[In millions]

			OASI Trust Fund	DI Trust Fund	OASI and DI Trust Funds, combined
Invested asset reserves, December 31, 2014a			$2,729,270	$60,311	$2,789,582
Acquisitions:
	Special issues:
		Certificates of indebtedness	741,358	117,740	859,098
		Bondsb	236,969	4,502	241,471
		Total acquisitions	978,328	122,242	1,100,570
Dispositions:
	Special issues:
		Certificates of indebtednessc	759,732	121,234	880,966
		Bonds	187,349	35,218	222,566
		Total dispositionsc	947,080	156,452	1,103,532
Net increase in invested asset reservesc			31,247	-34,210	-2,962
Invested asset reserves, December 31, 2015a c			2,760,518	26,101	2,786,619

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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, 2015. The interest rate on these purchases was 2.00 percent.

3

Benefit payments which were scheduled to be paid on January 3, 2016 were actually paid on December 31, 2015 as required by the statutory provision for early delivery of benefit payments when the normal payment delivery date is a Saturday, Sunday, or legal public holiday. The amount of these payments made on an accelerated basis was approximately $19.7 billion for the OASI Trust Fund and $6.1 billion for the DI Trust Fund. For comparability with the values for historical years and the projections in this report, all trust fund operations and asset reserves reflect the 12 months of benefits scheduled for payment in each year. Redemptions of special issues and invested asset reserves reflect the early redemption required in order to pay benefits on a timely basis as required by law.

Note: All 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

In order to provide values that are comparable with other years, asset reserves shown for the end of 2015 reflect the 12 months of benefits scheduled for payment in 2015 and thus exclude the benefits scheduled for payment on January 3, 2016, which were actually paid on December 31, 2015 as required by the law.

3

As noted in footnote e of table III.A1 and elsewhere in this report, benefit payments shown for 2015 reflect the 12 months of benefits scheduled for payment in 2015 and thus exclude the benefits scheduled for payment on January 3, 2016, which were actually paid on December 31, 2015 as required by the law.

4

Vocational rehabilitation services 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.

5

As noted in footnotes e and g of table III.A1 and elsewhere in this report, asset reserves shown for the end of 2015 reflect the 12 months of benefits scheduled for payment in 2015 and thus exclude the benefits scheduled for payment on January 3, 2016, which were actually paid on December 31, 2015 as required by the law.

6

As noted in footnote e of table III.A2, and elsewhere in this report, benefit payments shown for 2015 reflect the 12 months of benefits scheduled for payment in 2015 and thus exclude the benefits scheduled for payment on January 3, 2016, which were actually paid on December 31, 2015 as required by the law.

7

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.