Recent news report from the CNN likewise claimed that the approximately 58 million people who are currently relying on Social Security benefits would still be paid on time, provided that the law and history are any guide.
Fortunately, the money that funds Social Security is automatically authorized and not depending on Congress arriving to a compromise on any new federal spending measure, the report noted.
Nevertheless, although there is no doubt that the Social Security payments would not get affected by the shut down, it is not yet clear whether the Social Security Administration (SSA) has retained sufficient staffing during the shut down to process without delaying any new applications for benefits.
In such event, one thing is definite, since most if not all payments get paid through direct deposit or debt card, understaffing would not be a problem when it comes to paying out recipients. This is because making those electronic payments is less labor intensive than it used to be during the paper check era.
However, although such brief shutdown may not impede Social Security benefits, the lawmakers’ failure to increase the country’s borrowing limit could. If the debt ceiling is not raised, the Treasury Department will eventually run out of funds to pay all its dues, the report further said.
It was last Monday midnight when the government shut down following a conflict among Democratic President, Barack Obama, Democratic-controlled Senate and the Republican-controlled House of Representatives. In U.S. history, this is the 17th time that the federal government shut down. The most recent was in 1995.
