2012   Financial Report of the United States Government

Financial Statements of the United States Government for the Years Ended September 30, 2012, and 2011

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. They 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 2of 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 statements. 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 Insurancedescribes 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. The Statements of Changes in Social Insurance Amounts reconcile 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)
2012
2011
2010
2009
2008
 
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)
847 726 672 575 542
    Participants who have not attained eligibility age 22,703 20,734 19,914 18,559 18,249
    Future participants 21,649 20,144 19,532 18,082 17,566
      All current and future participants 45,198 41,603 40,118 37,217 36,357
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (62 and over)
(9,834) (8,618) (8,096) (7,465) (6,958)
    Participants who have not attained eligibility age (37,753) (34,042) (32,225) (30,207) (29,021)
    Future participants (8,890) (8,100) (7,744) (7,223) (6,933)
      All current and future participants (56,477) (50,760) (48,065) (44,894) (42,911)
    Present value of future expenditures in
    excess of future revenue
(11,278)1 (9,157)2 (7,947)3 (7,677)4 (6,555)5
 
Federal Hospital Insurance (Medicare Part A): 14
  Revenue (Contributions and Earmarked Taxes) from:
    Participants who have attained eligibility
    age (65 and over)
302 262 248 209 202
    Participants who have not attained eligibility
    age
7,929 7,581 7,216 6,348 6,320
    Future participants 7,367 7,260 6,944 5,451 5,361
    All current and future participants 15,598 15,104 14,408 12,008 11,883
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(3,369) (2,923) (2,648) (2,958) (2,747)
    Participants who have not attained eligibility
    age
(14,919) (12,887) (12,032) (18,147) (17,365)
    Future participants (2,891) (2,546) (2,411) (4,673) (4,506)
    All current and future participants (21,179) (18,356) (17,091) (25,778) (24,619)
    Present value of future expenditures in
    excess of future revenue
(5,581)1 (3,252)2 (2,683)3 (13,770)4 (12,736)5
 
Federal Supplementary Medical Insurance (Medicare Part B): 14
  Revenue (Premiums) from:
    Participants who have attained eligibility
    age (65 and over)
635 570 538 498 461
    Participants who have not attained eligibility
    age
3,826 3,651 3,460 4,224 3,859
    Future participants 884 865 839 1,270 1,158
    All current and future participants 5,344 5,086 4,836 5,992 5,478
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(2,646) (2,343) (2,166) (2,142) (1,986)
    Participants who have not attained eligibility
    age
(14,303) (13,489) (12,587) (16,342) (14,949)
    Future participants (3,211) (3,108) (2,984) (4,672) (4,262)
      All current and future participants (20,159) (18,940) (17,737) (23,156) (21,197)
      Present value of future expenditures in
      excess of future revenue 6
(14,815)1 (13,854)2 (12,901)3 (17,165)4 (15,719)5
 
Federal Supplementary Medical Insurance (Medicare Part D): 14
  Revenue (Premiums and State Transfers) from:
    Participants who have attained eligibility
    age (65 and over)
179 173 165 140 123
  Participants who have not attained eligibility age 1,510 1,608 1,626 1,442 1,380
  Future participants 661 703 694 618 604
      All current and future participants 2,349 2,484 2,486 2,199 2,107
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility
    age (65 and over)
(694) (695) (646) (595) (581)
    Participants who have not attained eligibility age (5,866) (6,438) (6,355) (6,144) (6,527)
    Future participants (2,568) (2,817) (2,714) (2,632) (2,856)
      All current and future participants (9,128) (9,950) (9,715) (9,371) (9,964)
  Present value of future expenditures in
  excess of future revenue 6
(6,778)1 (7,466)2 (7,229)3 (7,172)4 (7,857)5
 
Railroad Retirement:
  Revenue (Contributions and Earmarked Taxes) from:
    Participants who have attained eligibility 7 6 5 5 5
    Participants who have not attained eligibility 56 46 47 48 43
    Future participants 78 65 66 70 54
      All current and future participants 141 117 118 123 102
  Expenditures for Scheduled Future Benefits for:
    Participants who have attained eligibility (119) (109) (105) (102) (97)
    Participants who have not attained eligibility (95) (86) (88) (91) (88)
    Future participants (34) (28) (27) (30) (26)
      All current and future participants (248) (223) (220) (223) (212)
  Present value of future expenditures in
  excess of future revenue 7
(107)1 (106)2 (103)3 (100)4 (109)5
 
Black Lung (Part C):
  Present value of future revenue in excess
  of future expenditures 8
59 510 611 612 513
 
Total present value of future expenditures in excess of future revenue (38,554) (33,830) (30,857) (45,878) (42,970)
 
Social Insurance Summary: 14
  Participants who have attained eligibility age:
    Revenue (e.g., Contributions and earmarked taxes) 1,970 1,737 1,628 1,427 1,333
    Expenditures for scheduled future benefits (16,662) (14,688) (13,661) (13,262) (12,369)
    Present value of future expenditures in
    excess of future revenue
(14,692) (12,951) (12,033) (11,835) (11,036)
  Participants who have not attained eligibility age:
    Revenue (e.g., Contributions and earmarked taxes) 36,024 33,620 32,263 30,621 29,851
    Expenditures for scheduled future benefits (72,936) (66,942) (63,287) (70,931) (67,950)
    Present value of future expenditures
    in excess of future revenue
(36,912) (33,322) (31,024) (40,310) (38,099)
 
Closed-group – Total present value of future expenditures in excess of future revenue (51,604) (46,272) (43,057) (52,145) (49,135)
  Future participants:
    Revenue (e.g., Contributions and earmarked taxes) 30,639 29,037 28,075 25,491 24,743
    Expenditures for scheduled future benefits (17,589) (16,594) (15,875) (19,224) (18,578)
    Present value of future revenue in
    excess of future expenditures
13,050 12,443 12,200 6,267 6,165
 
Open-group – Total present value of future expenditures in excess of future revenue (38,554) (33,830) (30,857) (45,878) (42,970)
1 The projection period is 1/1/2012-12/31/2086 and the valuation date is 1/1/2012.
2 The projection period is 1/1/2011-12/31/2085 and the valuation date is 1/1/2011.
3 The projection period is 1/1/2010-12/31/2084 and the valuation date is 1/1/2010.
4 The projection period is 1/1/2009-12/31/2083 and the valuation date is 1/1/2009.
5 The projection period is 1/1/2008-12/31/2082 and the valuation date is 1/1/2008.
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 advances from the General Fund of the Treasury to the Social Security Equivalent Benefit Account and future repayments from the Social Security Equivalent Benefit Account to the General Fund (see discussion of Railroad Retirement Program in the unaudited required supplementary 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 9/30/2012-9/30/2040 and the valuation date is 9/30/2012.
10 The projection period is 9/30/2011-9/30/2040 and the valuation date is 9/30/2011.
11 The projection period is 9/30/2010-9/30/2040 and the valuation date is 9/30/2010.
12 The projection period is 9/30/2009-9/30/2040 and the valuation date is 9/30/2009.
13 The projection period is 9/30/2008-9/30/2040 and the valuation date is 9/30/2008.
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.

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 27, 2013