US pension plan to run permanent deficits

WASHINGTON (AP) — New congressional projections show the U.S. government pension plan known as Social Security running permanent annual deficits unless lawmakers act to shore up the massive retirement and disability program.

The Congressional Budget Office said Wednesday that Social Security will pay out $45 billion more in benefits this year than it will collect in payroll taxes, further straining U.S. finances. The deficits will continue until the Social Security trust funds are eventually drained, in about 2037.

Previously, the budget office said Social Security would start running permanent deficits in 2016. In the short term, Social Security is suffering from a weak economy that has payroll taxes lagging and applications for benefits rising. In the long term, Social Security will be strained by the growing number of retirees.