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The Social Security trust funds are financial accounts in the U.S.
Treasury. There are two separate Social Security trust funds, the Old-Age
and Survivors Insurance (OASI) Trust Fund pays retirement and survivors
benefits, and the Disability Insurance (DI) Trust Fund pays disability benefits.
Social Security taxes and other income are deposited in these accounts,
and Social Security benefits are paid from them. The only purposes for
which these trust funds can be used are to pay benefits and program administrative
costs.
The Social Security trust funds hold money not needed in the current
year to pay benefits and administrative costs and, by law, invest it in
special Treasury bonds that are guaranteed by the U.S. Government. A market
rate of interest is paid to the trust funds on the bonds they hold, and
when those bonds reach maturity or are needed to pay benefits, the Treasury
redeems them.
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www.socialsecurity.gov
