Disability Insurance Trust Fund

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DEFINITION of 'Disability Insurance Trust Fund'

An account within the Social Security Trust Fund used to pay benefits to individuals deemed to be disabled and incapable of productive work. The Disability Insurance Trust Fund receives deposits from FICA considered to be over and above the amount needed for day-to-day operations of disability insurance under social security. These funds are held in trust and any funds not required for current expenses are invested in interest-bearing federal securities.

BREAKING DOWN 'Disability Insurance Trust Fund'

The Disability Insurance Trust Fund was created in 1956 as a part of the Social Security Act Amendments of 1956. The fund's board of trustees consists of six members, two of which are appointed by the President, and the remaining four are automatically selected due to their positions in the federal government; These four positions are: Secretary of the Treasury, Secretary of Labor, Secretary of Health and Human Services and the Commissioner of Social Security.

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RELATED FAQS
  1. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
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    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  3. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>
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    Social Security payments are not included in the U.S. definition of the gross domestic product (GDP). Transfer Payments For ... Read Full Answer >>
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    The U.S. Social Security Administration, or SSA, is headquartered in Woodlawn, Maryland, a suburb just outside of Baltimore. ... Read Full Answer >>
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    The Social Security tax rate is 12.4% as of 2015. Of that amount, the employee is responsible for half, or 6.2%, and the ... Read Full Answer >>

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