The Social Security trust funds are projected to become exhausted in 2033, according to the 2013
Social Security Trustees Report. If Congress does not act before then, the trust funds would be
unable to pay full Social Security benefits on time. The Social Security Act does not specify what
would happen to benefits if the trust funds became insolvent. However, it is clear that full Social
Security benefits could not be paid on time because the Antideficiency Act prohibits government
spending in excess of available funds. After insolvency, Social Security would continue to receive
tax income, from which approximately 77% of benefits could be paid. Either full benefit checks
would be paid on a delayed schedule or reduced benefits would be paid on time. In either case,
Social Security beneficiaries and qualifying applicants would remain legally entitled to full
benefits and could take legal action to claim the balance of their benefits.