2011   Financial Report of the United States Government

Financial Statements

Statements of Social Insurance

The Statements of Social Insurance provide estimates of the status of the most significant social insurance programs: Social Security, Medicare, Railroad Retirement, and Black Lung social insurance programs, which are administered by the Social Security Administration (SSA), HHS, the Railroad Retirement Board (RRB), and the Department of Labor (DOL), respectively. The estimates are actuarial present values 2 of the projections and are based on the economic and demographic assumptions representing the trustees’ reasonable estimates as set forth in the relevant Social Security and Medicare trustees’ reports and in the agency financial report of HHS and DOL (Black Lung) and in the relevant agency performance and accountability reports for the SSA and RRB. The projections are based on the continuation of program provisions contained in current law.

The magnitude and complexity of social insurance programs, coupled with the extreme sensitivity of projections relating to the many assumptions of the programs, produce a wide range of possible results. In preparing the Statements of Social Insurance, Government management considers and selects assumptions and data that it believes provide a reasonable basis for the assertions in the statement. However, because of the large number of factors that affect the Statements of Social Insurance and the fact that such assumptions are inherently subject to substantial uncertainty (arising from the likelihood of future events, significant uncertainties, and contingencies), there will be differences between the estimates in the Statements of Social Insurance and the actual results, and those differences may be material. Note 26—Social Insurance describes the social insurance programs, reports long-range estimates that can be used to assess the financial condition of the programs, and explains some of the factors that impact the various programs. Using this information, readers can apply their own judgment as to the condition and sustainability of the individual programs. The Statement of Changes in Social Insurance Amount reconciles the change between the current valuation period and the prior valuation period.

United States Government
Statements of Social Insurance (Note 26)
Present Value of Long-Range (75 Years, except Black Lung) Actuarial Projections
(In billions of dollars)
2011
2010
2009
2008
2007
 
Federal Old-Age, Survivors and Disability Insurance (Social Security): 14
  Revenue (Contributions and Earmarked Taxes) from:
    Participants who have attained eligibility
    age (62 and over)
726 672 575 542 477
    Participants who have not attained eligibility age 20,734 19,914 18,559 18,249 17,515
    Future participants 20,144 19,532 18,082 17,566 16,121
      All current and future participants 41,603 40,118 37,217 36,357 34,113
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (62 and over)
(8,618) (8,096) (7,465) (6,958) (6,329)
    Participants who have not attained eligibility age (34,042) (32,225) (30,207) (29,021) (27,928)
    Future participants (8,100) (7,744) (7,223) (6,933) (6,619)
      All current and future participants (50,760) (48,065) (44,894) (42,911) (40,876)
    Present value of future expenditures in
    excess of future revenue
(9,157) 1 (7,947) 2 (7,677) 3 (6,555) 4 (6,763) 5
 
Federal Hospital Insurance (Medicare Part A): 14
  Revenue (Contributions and Earmarked Taxes) from:
    Participants who have attained eligibility
    age (65 and over)
262 248 209 202 178
    Participants who have not attained eligibility
    age
7,581 7,216 6,348 6,320 5,975
    Future participants 7,260 6,944 5,451 5,361 4,870
    All current and future participants 15,104 14,408 12,008 11,883 11,023
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(2,923) (2,648) (2,958) (2,747) (2,558)
    Participants who have not attained eligibility
    age
(12,887) (12,032) (18,147) (17,365) (15,639)
    Future participants (2,546) (2,411) (4,673) (4,506) (5,118)
    All current and future participants (18,356) (17,091) (25,778) (24,619) (23,315)
    Present value of future expenditures in
    excess of future revenue
(3,252)1 (2,683)2 (13,770)3 (12,736)4 (12,292)5
 
Federal Supplementary Medical Insurance (Medicare Part B): 14
  Revenue (Premiums) from:
    Participants who have attained eligibility
    age (65 and over)
570 538 498 461 433
    Participants who have not attained eligibility
    age
3,651 3,460 4,224 3,859 3,184
    Future participants 865 839 1,270 1,158 1,172
    All current and future participants 5,086 4,836 5,992 5,478 4,789
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(2,343) (2,166) (2,142) (1,986) (1,834)
    Participants who have not attained eligibility
    age
(13,489) (12,587) (16,342) (14,949) (12,130)
    Future participants (3,108) (2,984) (4,672) (4,262) (4,257)
      All current and future participants (18,940) (17,737) (23,156) (21,197) (18,221)
      Present value of future expenditures in
      excess of future revenue 6
(13,854)1 (12,901)2 (17,165)3 (15,719)4 (13,432)5
 
Federal Supplementary Medical Insurance (Medicare Part D): 14
  Revenue (Premiums and State Transfers) from:
    Participants who have attained eligibility
    age (65 and over)
173 165 140 123 167
  Participants who have not attained eligibility age 1,608 1,626 1,442 1,380 1,627
  Future participants 703 694 618 604 611
      All current and future participants 2,484 2,486 2,199 2,107 2,405
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(695) (646) (595) (581) (794)
    Participants who have not attained eligibility age (6,438) (6,355) (6,144) (6,527) (7,273)
    Future participants (2,817) (2,714) (2,632) (2,856) (2,699)
      All current and future participants (9,950) (9,715) (9,371) (9,964) (10,766)
  Present value of future expenditures in
  excess of future revenue 6
(7,466)1 (7,229)2 (7,172) 3 (7,857) 4 (8,361) 5
 
Railroad Retirement:
  Revenue (Contributions and Earmarked Taxes) from:
    Participants who have attained eligibility 6 5 5 5 5
    Participants who have not attained eligibility 46 47 48 43 41
    Future participants 65 66 70 54 54
      All current and future participants 117 118 123 102 100
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility (109) (105) (102) (97) (93)
    Participants who have not attained eligibility (86) (88) (91) (88) (86)
    Future participants (28) (27) (30) (26) (26)
      All current and future participants (223) (220) (223) (212) (205)
  Present value of future expenditures in
  excess of future revenue 7
(106) 1 (103) 2 (100) 3 (109) 4 (105) 5
 
Black Lung (Part C):
  Present value of future revenue in excess
  of future expenditures 8
5 9 6 10 6 11 5 12 5 13
 
Total present value of future expenditures in excess of future revenue (33,830) (30,857) (45,878) (42,970) (40,948)
 
Social Insurance Summary: 14
  Participants who have attained eligibility age:
    Revenue (e.g., Contributions and earmarked taxes) 1,737 1,628 1,427 1,333 1,260
    Expenditures for scheduled future benefits (14,688) (13,661) (13,262) (12,369) (11,608)
    Present value of future expenditures in
    excess of future revenue
(12,951) (12,033) (11,835) (11,036) (10,348)
  Participants who have not attained eligibility age:
    Revenue (e.g., Contributions and earmarked taxes) 33,620 32,263 30,621 29,851 28,342
    Expenditures for scheduled future benefits (66,942) (63,287) (70,931) (67,950) (63,056)
    Present value of future expenditures
    in excess of future revenue
(33,322) (31,024) (40,310) (38,099) (34,714)
 
Closed-group – Total present value of future expenditures in excess of future revenue (46,272) (43,057) (52,145) (49,135) (45,062)
  Future participants:
    Revenue (e.g., Contributions and earmarked taxes) 29,037 28,075 25,491 24,743 22,828
    Expenditures for scheduled future benefits (16,594) (15,875) (19,224) (18,578) (18,714)
    Present value of future revenue in
    excess of future expenditures
12,443 12,200 6,267 6,165 4,114
 
Open-group – Total present value of future expenditures in excess of future revenue (33,830) (30,857) (45,878) (42,970) (40,948)
1 The projection period is 1/1/2011 -12/31/2085 and the valuation date is 1/1/2011.
2 The projection period is 1/1/2010 -12/31/2084 and the valuation date is 1/1/2010.
3The projection period is 1/1/2009 -12/31/2083 and the valuation date is 1/1/2009.
4 The projection period is 1/1/2008 -12/31/2082 and the valuation date is 1/1/2008.
5 The projection period is 1/1/2007 -12/31/2081 and the valuation date is 1/1/2007.
6 These amounts represent the present value of the future transfers from the General Fund of the Treasury to the Supplementary Medical Insurance Trust Fund. These future intragovernmental transfers are included as income in both HHS’ and the Centers for Medicare & Medicaid Services’ Financial Reports but are not income from the Governmentwide perspective of this report.
7 These amounts approximate the present value of the future financial interchange and the future transfers from the General Fund of the Treasury to the Social Security Equivalent Benefit Account (see discussion of Railroad Retirement Program in the unaudited supplemental information section of this report). They are included as income in the Railroad Retirement Financial Report but are not income from the Governmentwide perspective of this report.
8 Does not include interest expense accruing on the outstanding debt.
9 The projection period is 9/30/2011 -9/30/2040 and the valuation date is 9/30/2011.
10 The projection period is 9/30/2010 -9/30/2040 and the valuation date is 9/30/2010.
11 The projection period is 9/30/2009 -9/30/2040 and the valuation date is 9/30/2009.
12 The projection period is 9/30/2008 -9/30/2040 and the valuation date is 9/30/2008.
13 The projection period is 9/30/2007 -9/30/2040 and the valuation date is 9/30/2007.
14 Participants for the Social Security and Medicare programs are assumed to be the “closed-group” of individuals who are at least 15 years of age at the start of the projection period, and are participating as either taxpayers, beneficiaries, or both, except for the 2007 Medicare programs for which current participants are assumed to be at least 18 instead of 15 years of age.

Totals may not equal the sum of components due to rounding.

The accompanying notes are an integral part of these financial statements.

Footnotes

2 Present values recognize that a dollar paid or collected in the future is worth less than a dollar today, because a dollar today could be invested and earn interest. To calculate a present value, future amounts are thus reduced using an assumed interest rate, and those reduced amounts are summed.(Back to Content)


Last Updated:  February 16, 2012