What Is the Social Security Trust Fund?

• In a particular year, if Payroll taxes collected exceed the benefits paid, then the surplus is kept in a fund called the Social Security Trust Fund. The purpose of the trust fund is to provide a source of money for any future years in which payroll taxes might be less than benefits paid-it’s a fund to pay for future Social Security deficits, not to pay for current deficits in the rest of the government. But that is how it has been used.

• Trust Fund began to build during 1990’s anticipating future baby boomer retirements