Trustees: Social Security Trust Fund Exhausted In 2040.

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The trust fund for Social Security will be depleted in 2040, and Medicare will exhaust its trust fund reserves in 2018, trustees for the programs said today. Their annual report showed deterioration in the financial condition of both of the government's two largest benefit programs, the Associated Press reported. A year ago, the depletion of the Social Security trust fund had been projected to occur in 2041 and the Medicare hospital insurance fund in 2020. Last year's report advanced by a year the date at which Social Security payments will exceed its revenues, to 2017 from 2018, and the year by which the Social Security surplus will be wiped out, to 2041 from 2042. Treasury Secretary Snow cited those changes as evidence to support the Bush administration's case that Congress needed to act quickly to address Social Security's problems. But Republican majorities in the House and Senate were unable to come to any agreement on legislation. Last year's report showed a slight improvement in Medicare's finances, delaying by a year to 2020 the projected date at which its Hospital Insurance Trust Found would become insolvent.