Disability Insurance Trust Fund

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.

RELATED TERMS
  1. Social Security Number - SSN

    A nine-digit number assigned to citizens, some temporary residents ...
  2. Social Security

    A United States federal program of social insurance and benefits ...
  3. Pension Pillar

    One of three pension formats as outlined by the World Bank in ...
  4. Pension Plan

    A type of retirement plan, usually tax exempt, wherein an employer ...
  5. Social Security Administration ...

    A U.S. government agency created in 1935 by President Franklin ...
  6. Disability-Income (DI) Insurance

    An insurance product that provides supplementary income in the ...
Related Articles
  1. Retirement

    Introduction to Social Security

    You've probably contributed to this fund, but will you reap the benefits? Find out here.
  2. Insurance

    What's The Difference Between Medicare And Medicaid?

    One program is for the poor; the other is for the elderly. Learn which is which.
  3. Personal Finance

    Special Trusts For Special Needs

    If you or someone you love has a disability, these trusts can help ease the cost of care.
  4. Retirement

    Maximize Your Social Security Benefits

    The plan's cost of living adjustments can provide protection against inflation.
  5. Retirement

    Lump Sum Versus Regular Pension Payments

    If you're about to retire, you may be facing this dilemma soon. Find out what your options are.
  6. Wealth Management

    How Linked Benefit Insurance Policies Work

    Linked benefit policies can be a viable alternative to traditional long-term care insurance. Here's how they work.
  7. Savings

    Employee Wellness Perk: For Your Financial Health

    A growing number of employers offer free financial wellness programs that supply tools to help employees handle money issues and build a strong future.
  8. Stock Analysis

    (ADP) Who are ADP's Main Competitors?

    Explore ADP's primary competitors in its two major segments, with brief descriptions of the scale and offerings of companies such as SAP, Oracle and Workday.
  9. Entrepreneurship

    Credit (Receivables) Insurance: Does Your Business Need It?

    This type of insurance will reimburse your business if customers don’t pay their bills. It’s not cheap, but some companies shouldn’t be without it.
  10. Products and Investments

    Top 401(k) Shortcomings: What to Know

    Many 401(k) plans are riddled with flaws that can impede retirement savers in many ways. Here are ten of the most common imperfections.
RELATED FAQS
  1. How does a defined benefit pension plan differ from a defined contribution plan?

    Learn the differences between defined benefit plans and defined contribution plans when reviewing employer-sponsored qualified ... Read Answer >>
  2. What is the maximum I can receive from my Social Security retirement benefit?

    Understand the maximum Social Security benefit amount for someone retiring in 2016 at full retirement age and the basics ... Read Answer >>
  3. Am I losing the right to collect spousal Social Security benefits before I collect ...

    The new budget eliminates this benefit for anyone who hasn't reached age 62 by December 31, 2015. Read Answer >>
  4. What's the difference between Social Security Disability Insurance (SSDI) and Supplemental ...

    Both Social Security Disability Insurance and Supplemental Security Income are administered by the Social Security Administration, ... Read Answer >>
  5. Can a Flexible Spending Account (FSA) be used for dental?

    Learn if Flexible Spending Accounts (FSAs) are used to pay for dental expenses. Discover which dentistry procedures can be ... Read Answer >>
  6. How does my spousal Social Security benefit work?

    Understand the basics of spousal Social Security benefits, when you are eligible to apply, and how your age and employment ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center