SOCIAL SECURITY

LEADS THE NATION’S

COMPUTERS INTO 

21ST CENTURY 

Social Security is at the forefront 

of a government-wide effort to make

computers even smarter as we

approach the 21st century.

Smart as they are, computers store

dates in a 2-digit format, and when 

the century changes, they’d assume

that “00” means the year 1900 instead

of the year 2000. As a result, numbers

based on dates would be incorrect.

For example, subtracting December

31, 1995, from December

31, 2005, to determine

someone’s

age would

produce

the 

incorrect

answer of

“minus 90”

instead 

of the 

correct

answer of

10.

Social

Security

depends

heavily on

computer

operations.

Over 30

million

lines of software now in use are datesensitive. In addition, many forms are

printed with dates. Social Security

began working to convert its computers in 1989 to process dates using four

digits, which will solve the problem. 

It expects to have its computers converted to a four-digit standard by 

1998. Because of its expertise, the

President asked the Social Security

Administration to lead government

agencies in identifying strategies to

deal with the year 2000 computer 

systems issue that will affect federal

agencies and the private sector. 

The 2-digit format is an old 

industry standard and was used

because computer pioneers did not 

know it would last until the new 

century. Also, in earlier years, computer storage space was too precious to

devote four digits to designate the

year. 

The turn of the century poses an

enormous challenge for the data 

processing community in every 

federal, state, local, public, and 

private sector business and 

organization around the world.

Unfortunately, there is no universal

quick-fix that will solve everyone’s

problems. The code in every 

computer system will have to be 

converted line-by-line. This is very

labor-intensive, and very costly.

While each organization must find

solutions that meet its unique needs,

Social Security leads discussions on

cross-cutting aspects of the problem.

These include interagency data

exchanges and the availability of a

wide range of vendor products.

GUARDIANS OF THE PUBLIC TRUST

As an independent agency, the

Social Security Administration (SSA)

took over new responsibilities for 

stewardship of the Social Security trust

funds. One result: the agency’s efforts

to combat fraud are enhanced.

When Social Security was part of 

the Department of Health and Human

Services (DHHS), the HHS Office of

the Inspector General carried out the

job of investigating allegations of fraud

and abuse of Social Security programs.

On March 31, 1995, SSA became an

independent agency and assumed

responsibility for these functions with

the creation of its own Office of the

Inspector General (OIG.)

In preparation for the significant

job of protecting the integrity of our

programs, SSA’s OIG will hire approximately 100 new investigative agents to

work in offices around the country to

handle the significant volume of fraud

referrals it receives. During a recent

month, investigators received almost

270 allegations of fraud, waste, abuse

or mismanagement in Social Security

programs. Recently, an SSA fraud hotline was unveiled to provide an additional means by which the public and

SSA employees can report suspected

instances of fraud. The hotline is available for live operator assistance from

Monday through Friday from 10 a.m

to 4 p.m. EST. Recorded messages are

available 24 hours a day. The 

hotline number is 1-800-269-0271. 

In addition, an address is available 

for reporting suspected fraud for

those who choose not to use the 

hotline. The address is: Social 

Security Administration, Office of 

the Inspector General, P.O. Box

17768, Baltimore, MD 21235.

Social Security’s OIG is committed

to deterring, preventing, detecting,

and prosecuting fraud with whatever

means are necessary to guarantee the

protection of taxpayer dollars against

those elements of society that would

attempt to defraud the Social Security

and Supplemental Security Income

programs.

Volume 1, Number 4 An official publication of the Social Security Administration January / February 1997

SOCIAL SECURITY

TODAY
MEET A 

BENEFICIARY

Emma Riley

FUTURE BRIGHTER

FOR DEAF CHILD

Emma Riley, now 4

years old, was born deaf.

Her parents, Jeff and

Christy, were themselves

barely out of adolescence.

They found the problems

associated with caring for

a disabled child too heavy

for their fragile marriage.

They divorced, and with

Emma’s mother earning

a minimum wage salary

and her father able to

provide only modest

child support, they were

uncertain of where to

turn for help.

Friends told them

about the Supplemental

Security Income (SSI)

program. SSI pays monthly checks to people who

are 65 or older, or blind,

or have a disability and

who don’t own much or

have a lot of income.

Under SSI, disabled 

children also can collect

benefits if they have a

physical or mental problem that qualifies under

the Social Security 

program. People who get

SSI usually get Medicaid,

too, which helps pay doctor and hospital bills. 

Emma’s mother,

Christy, applied for SSI in

April 1993 at her local

Social Security office in

Ironton, Ohio. “I was

unsure what I needed 

to do or what evidence I

had to provide,” Christy

said, “but the Social

Security representative

explained everything

very carefully and

patiently.” 

In May 1993,

Emma received her

first SSI check and

in August 1993

became 

eligible for Medicaid 

benefits. 

“It seemed like a godsend,” Christy says.

“Neither her father nor 

I had medical insurance

and money was very tight.

I don’t know how we

would have managed

without SSI.”

Today, Emma is no

longer receiving SSI

because her family’s

financial picture has

brightened. Emma attends

special classes that teach

her sign language and

she will be mainstreamed

into the local school 

system when she begins

kindergarten next year. 

“I have great hopes for

Emma’s future. 

I tell her that

she can be

anything

she wants

to be. 

And the SSI program was

there when we needed it

to help give Emma a start

toward realizing a

brighter future.”

HIGHER EARNINGS,

HIGHER BENEFITS

Over two million

Social Security beneficiaries received an early

benefit increase in their

December 3 payment.

When people work 

after they begin receiving benefits, Social

Security automatically

recomputes their 

earnings record, and

those additional

earnings

can

sometimes produce an

increase in their benefit

amount.

The average monthly

benefit increase was

$26.23, and the average

retroactive amount was

$123.59.

WORLD-CLASS 

SERVICE

New Englanders send it

to the bank

The Social Security

Administration (SSA) and

the Administration on

Aging (AoA) recently

signed an agreement to

work together to deliver

services to older people.

Tapping into that agreement, the Boston regional offices of both agencies

are jointly promoting

Social Security’s direct

deposit program. The

goal is to increase the

number of people

who receive their

Social Security benefits through direct

deposit, and to

make it easier for

them to do so.

Currently, in

New England

states, 

between 51 and 79 percent of Social Security

beneficiaries use direct

deposit. Of those who

receive Supplemental

Security Income (SSI),

only 15 to 41 percent use

direct deposit.

SSA and AoA will

jointly send direct deposit

materials to Area

Agencies on Aging,

senior centers, and the

Massachusetts Councils

on Aging and Nutrition

sites throughout New

England. These materials

will emphasize the safety,

convenience, and security

of having checks go

directly to the bank. 

Because it costs the

government forty two

cents to process and mail

a paper check, compared

to only two cents for

direct deposit, taxpayers

save forty cents each time

someone uses direct

deposit instead of a

check.

Social Security’s

Boston regional office

recently targeted its

efforts in one New

Hampshire county. In

this county, 14,800 people

receive their benefits by

direct deposit. On the

other hand, Social

Security mails out paper

checks to more than

7,400 beneficiaries and to

970 SSI recipients. 

The New England

Automated Clearing

House Association and

two county bank branches joined Social Security

in a special drive to sign

up more people for

direct deposit. Those who

sign up will find it fast,

safe, and efficient. There

is no need to worry about

a paper check being lost,

stolen, or misplaced. 

Social Security’s

Boston regional office

is working with agencies on federal, state,

and local levels to 

provide world-class 

service to its clients and

to taxpayers nationwide.
DISABILITY

CASE REVIEWS

INCREASE

In fiscal year 1996, 

Social Security reviewed

nearly 518,000 cases of 

people receiving Social

Security and Supplemental

Security Income disability

benefits to verify that they’re

still disabled. This 

is more than twice the 

number of continuing 

disability reviews conducted

during fiscal year 1995, and

the second largest volume of

cases processed since 1983.

In 1997, a more efficient

review process and additional funding from Congress

will permit Social Security to

substantially increase the

number of case reviews of

disabled adults and children. A recent law changed

the definition of disability

for children receiving

Supplemental Security

Income, and requires that

Social Security review the

cases of certain children 

to be sure that they are 

disabled under the new 

definition. In late November

and early December, Social

Security notified approximately 260,000 childhood

recipients about the new law

and the upcoming disability

review. 

COMMISSIONER’S

MESSAGE

For the 

past three years,

I have had the

privilege of 

serving as the Commissioner of

Social Security. It has been an

exceptional and rewarding experience. However, for personal family

reasons I am resigning effective

January 31.

Social Security is our nation’s

most important domestic program.

My commitment has been to fulfill

our responsibilities to the working

men and women who look to Social

Security to help safeguard their

financial future. Our priority goals

have been world-class service delivery, enhanced public confidence in

the program, and creation of a 

supportive work environment for

employees. We made significant

accomplishments toward these 

goals during my tenure.

World-class service.

In 1995, Social Security’s toll-free

telephone service was recognized 

by an independent financial services

firm as the best among public and

private sector businesses, surpassing

organizations such as Nordstrom

and Disney. In fiscal year 1996, we

answered 89.9 percent of our calls

within five minutes. That is, within

five minutes of calling our 800 number, callers received access to either

an automated service or a live

agent.

Enhanced public confidence

As Commissioner, I have worked

to enhance the public’s confidence

in the Social Security program,

replacing alarmist rhetoric with the

facts. Social Security does not face

an immediate crisis. However, the

sooner we begin to address the

long-term financial issues that face

the program, the less difficult our

choices will be. I have instituted a

major educational campaign to better inform the American public

about the current program so they

have the knowledge required to

become active participants in discussions regarding its future. 

Supportive work environment for

employees

To deliver efficient, effective, and

caring service to our customers, our

workforce must have a supportive

environment, and the technology

required to perform well. Toward

this end, we committed $1.1 billion

over five years toward increased

automation of local offices. Already,

this has resulted in better service to

the public. 

I am confident that the Social

Security Administration, as an 

independent agency, is positioned

to meet the many challenges it will

face in the coming years. It has

been an honor to serve as its

Commissioner.

ANOTHER CHANCE FOR MEDICARE

If you’re eligible for

Medicare Medical Insurance

(Part B) but have not yet

enrolled, you’ll have a

chance to sign up during

the annual general enrollment period that runs from

January 1 through March

31, 1997. This 3-month general enrollment period will

give you another opportunity to enroll if you did not do

so when you were first eligible or if you dropped your

coverage in the interim. If

you enroll now, coverage

will begin July 1, 1997.

If you did not enroll

when you first were eligible,

your Medicare Part B premium will be 10 percent higher than the basic monthly

premium for each year 

you were eligible but not

enrolled. For 1997, the basic

monthly Medicare Part B

premium is $43.80. 

If you’re age 65 or 

older and not eligible for

Medicare’s premium-free

Hospital Insurance (Part A)

coverage, you can buy this

coverage along with Part B

coverage during the annual

enrollment period. 

People who want to sign

up for Part B Medicare coverage should call their local

office or Social Security’s

toll-free number, 1-800-772-

1213 between 7 a.m. and 7

p.m. any business day.

SOME TAXES MAY BE DUE

You should be aware that

you may have to pay taxes

on some of your Social

Security benefits. Couples

whose “combined income”

is more than $44,000 and

individuals with income

exceeding $34,000 may pay

income tax on up to 85 percent of their Social Security

benefits. Couples whose

combined income is

between $32,000 and

$44,000 may pay tax on up

to 50 percent of their benefits, as will be true for individuals whose income is

between $25,000 and

$34,000. If your income is

below these levels, Social

Security benefits are not

taxed.

The taxes are due along

with other taxes you pay

when you file your tax return.

Because the law prohibits

Social Security from withholding taxes from your

benefits, you may want to

file quarterly estimated tax

returns and pay at that time.

(Note: “Combined

income” is an individual’s or

married couple’s adjusted

gross income as reported on

the Form 1040, plus onehalf of the total Social

Security benefits received

for the year, plus nontaxable

interest.) 

ONE LESS REPORT TO FILE

People who receive 

Social Security benefits 

and earn over the annual

limit are spending less time

filing government reports.

The Social Security

Administration (SSA) eliminated the annual earnings

report for most Social

Security beneficiaries.

Instead, the earnings information their employers

report on W-2s or income

reported on self-employment tax returns will be

used to adjust their benefits.

Previously, working beneficiaries were required to

report their earnings on a

separate report no later

than April 15. Eliminating

the annual report also

reduces SSA’s administrative

costs.

There are a few instances

when a beneficiary still

needs to file an annual earnings report. Generally, working beneficiaries who must

meet the earnings test need

to file annual reports when

their actual earnings are not

the same amount as those

reported on their W-2

and/or self-employment tax

return. Also, persons who

are eligible to receive benefits under the monthly earnings test or whose situation

is unusual, should call their

local Social Security office

to find out whether they

must file an annual report.

KEEP IN MIND

Shirley S. Chater 

Commissioner of 

Social Security

Who’s the

Social Security

beneficiary?

You can’t tell just by looking who’s 

getting Social Security benefits

because a parent died, is disabled, or

retired.

Today, 3 million kids under age 18 

get monthly Social Security benefits, 

based on a parent’s earnings. And, 

Social Security protects more than 

70 million kids.

To learn more about Social Security, 

call 1-800-772-1213. Ask for the 

booklet Basic Facts About Social 

Security.

P.S. It’s Timmy (on the left).

For the times that count,

count on Social Security.

PUBLISHER’S BOX

Permission to reprint

articles, giving credit 

to the Social Security

Administration, is granted. We welcome your

comments and invite

suggestions for future

editions. Please direct

your correspondence to

Editor, Social Security

Today, Room 4-J-10 West

High Rise, 6401 Security

Boulevard, Baltimore,

MD 21235, or fax to

Margaret.D.Pagan@ssa.gov.

Social Security Today also is

available at the Social

Security Internet site,

http://www.ssa.gov.
MEDICARE SERVICE CENTER OPENS

If you live in or visit

Philadelphia, Pa., and have a

question about Medicare, you can

get an answer at the country’s

first walk-in customer service

center. The purpose of this 

center, called “Your Medicare

Center,” is to make it easier for

the elderly to get information

about Medicare.

Staffed by employees of the

Health Care Financing

Administration, which runs the

Medicare program, the center

will provide educational services

and problem resolution.

Educational services include

making available materials and

videos on a variety of issues

including eligibility, enrollment,

coverage, managed care, and

long-term care.

NEW HELP FOR SMALL BUSINESSES

The Social Security

Administration (SSA) and Pitney

Bowes, Inc. are testing a new way

for small businesses to securely

file their annual W2 and W3

information with SSA via the

Internet. This method of filing

could reduce the millions of

paper forms that Social Security

receives from small businesses at

tax time each year. 

The test is being coordinated

through CommerceNet, an

industry and government 

consortium promoting 

electronic commerce. It

will provide important information

on the ability

to move

data 

securely across open networks.

This information is crucial to the

development of full scale customer services on open networks

such as the Internet.

Social Security and Pitney

Bowes will select up to 100 small

businesses to participate. Each

will be given the software needed

to prepare its tax forms and submit them securely via the

Internet. The test begins in

January, when the filing season

begins, and ends in March, 1997. 

Staff will use several databases

to help resolve problems for 

beneficiaries. Problems may

involve issues related to claims,

premiums, deductibles, qualityof-care, and dual eligibility. Staff

will also handle complaints.

The center is located at level 

3 in the Gallery at Market East

shopping center.

PAST-DUE SUPPLEMENTAL SECURITY

INCOME PAID IN INSTALLMENTS

Adults who are due more 

than $5808 (not including the

monthly state supplement) in

retroactive Supplemental

Security Income (SSI) payments,

will now receive the money in

installments, according to a new

law. Installment payments will 

be made every

six months. 

The law also provides 

for an increase in the amount

of the installment payment in

certain cases where the person:

— has debts for food, 

clothing or shelter,

— has expenses for disability 

related items and services,

— is purchasing a home.

The full amount of the

retroactive payment — even if 

it exceeds $5808 — will be paid

to a person who is terminally ill.

The full amount will also be paid

to a person who was formerly eligible for benefits but is now ineligible and likely to remain ineligible for the next 12 months.

PROOF OF CITIZENSHIP

When you apply for Social

Security benefits you must prove

your United States citizenship or

lawful alien presence, according

to a new law. If you were born in

the U.S., your U.S. birth certificate, which serves as evidence 

of your age, will also serve as 

evidence of citizenship. If you’re

a U.S. citizen born outside the

United States, you can prove

your citizenship by presenting

your Report of Birth Abroad or

a U.S. passport. If you’re a

naturalized U.S citizen, 

you can present either 

your Certificate of

Naturalization or a 

current U.S. passport. 

If, however, you 

are not a U.S. citizen and 

applying for Social Security 

benefits, you must prove that 

you are lawfully present in this

country, as determined by the

Immigration Naturalization

Service (INS). You can prove

your lawful presence by submitting the appropriate unexpired

document issued by INS. 

For more information about

what evidence of your U.S. 

citizenship or lawful alien status

is acceptable when you file for

Social Security benefits, call or 

visit a local Social Security office.

You also can call our toll-free

number, 1-800-772-1213. Our

lines are busiest early in the

week and early in the month, 

so if your business can wait, 

it’s best to call at other times.

NEW WELFARE REFORM FACTSHEETS

If you need information

about recent welfare reform 

legislation, there’s a new factsheet Supplemental Security Income

For Noncitizens available from

Social Security. The factsheet

explains how the new laws

change the way we pay

Supplemental Security Income

(SSI) benefits to noncitizens.

The new laws apply to people

who are already receiving SSI

payments and to people who are

applying for payments.

The factsheet is available 

in the following five languages

for non-English speaking 

people: Spanish, Russian, 

Vietnamese, Korean, 

and Chinese.

Also available is 

the factsheet, 

A New Definition of

Disability for Children.

This factsheet, in 

English and Spanish, 

describes how the law

changes the definition of 

disability for children under

the SSI program.

To order a free copy of 

Supplemental Security Income 

for Noncitizens or A New 

Definition of Disability for

Children, call Social Security’s

toll-free number, 1-800-772-1213.

All versions of the factsheets are

also available on the Internet

server at http://www.ssa.gov.

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PERMIT NO. G-11

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OFFICE OF COMMUNICATIONS

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BALTIMORE MD 21235

OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE, $300

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WHAT , S NEW

Social Security Administration

SSA Publication No. 05-10110
ADVISORY COUNCIL

SETS STAGE FOR TALKS

The recent report of the Advisory

Council on Social Security sets the

stage for national dialogue on the

future of the Social Security system.

Although the council was unable 

to reach agreement on how to best

finance the program, it did reach

agreement on key issues designed 

to protect the program and its 

beneficiaries. For instance, there was

agreement that:

– It is of great importance to the

nation that a compulsory Social

Security system be continued.

– Maintaining full cost-of-living 

adjustments is one of Social Security’s

most important contributions to 

individual security and should be 

continued. 

– Social Security benefits should not

be “means-tested” because it would

discourage personal savings.

– Benefits of low-wage workers should

be protected.

The council also reached 

agreement on several other issues,

including the following key

items which would

improve

the 

economic health 

of the 

program.

These

include:

– building

up additional

reserve funding;

– extending

mandatory

coverage to 

newly-hired state and local government employees, to achieve the longstanding goal of universal coverage;

and requiring that current beneficiaries share in any sacrifices that might

be necessary, preferably by applying

some new taxes to Social Security 

benefits.

THREE ALTERNATIVE PLANS

The council developed three

options for future financing of the

program.

The Maintenance of Benefits option

would maintain the present Social

Security benefit structure essentially

as is, while partially reducing the

long-range deficit through several

small steps (such as taxing benefits to

the extent they exceed what the worker paid in). To eliminate the remaining deficit, the plan would consider

investing part of the trust funds in the

stock market, which should allow the

funds to earn a higher return than

when invested in government securities (as the law currently requires).

The Individual Accounts option

would gradually lower the growth 

of Social Security benefits, while also creating mandatory

individual accounts funded by 

additional employee contributions of

1.6 percent of payroll. The accounts

would be held by the federal 

government, and individuals would

have limited choices on how to invest

the funds. 

The Personal Security Account plan

would gradually replace Social

Security with a “two-tiered” system.

For example, the first tier would be 

a flat monthly benefit of about $410

in 1996 for workers with 35 years of

employment. The second tier would

be the privately owned Personal 

Security Accounts, financed by taking

five percentage points of the current 

payroll tax and redirecting it to the

personal security account. Unlike the

Individual Accounts plan, the funds in

these accounts would not be held or

managed by the federal government.

Under this plan, there would also 

be a transition cost equal to an 

additional 1.5 percent of payroll for

72 years, including the repayment 

of additional funds that would need

to be borrowed from general U.S.

government revenues in the early

years of the transition.

A FOUNDATION FOR DECISION

The work of

the Advisory

Council provides a good

foundation for

the task that lies

ahead – ensuring

that the Social

Security

program

will be

the best

one for

future 

generations

of Americans.

SOCIAL SECURITY IS PREPARING

FOR BABY BOOMERS’ RETIREMENT

Wednesday will become an important day in the lives of future Social

Security beneficiaries. It’s the day that

their Social Security benefits will be paid.

People who apply for benefits

beginning May 1, 1997 will not

receive their benefit on the third of

the month as in the past. Instead they

will receive it on a second, third, or

fourth Wednesday of the month.

When a person applies for benefits,

the Social Security representative will 

tell him or her when to expect benefit payment. The benefit award notice

will also have this information.

Benefits received in June will use the

new cycling schedule.

The day a person receives benefits will be determined by the birth

date. Here’s how it works: 

Birth date between the: Benefit paid on the:

1st - 10th Second Wednesday

11th - 20th Third Wednesday

21st - 31st Fourth Wednesday

Generally, the day in the month a 

person receives benefits will depend

on the birth date of the person on

whose record benefits are paid. For

example, a retired or disabled worker’s benefit payment day will be

determined by his or her birth date. 

(Continued on page 2)

Volume 1, Number 5 An official publication of the Social Security Administration March / April 1997

SOCIAL SECURITY

TODAY
MEET A 

BENEFICIARY

Larry Wineke 

Social Security helps

heart transplant patient 

On his 38th birthday,

Larry Wineke began to

feel ill with extreme

shortness of breath and

flu-like symptoms.

Noting that his symptoms failed to improve

and he grew weaker, his

doctor referred him to a

local hospital where

medical tests revealed

that an infectious virus

was slowly destroying his

heart.

Doctors treated him

with various medications

that allowed him to 

continue working as a

science teacher and football coach at Calvert Hall

College High School in

Baltimore. But eventually, Larry suffered a setback that required surgical intervention. Though

surgery helped, his 

condition continued to

deteriorate until only a

heart transplant could

save his life. 

Receiving financial

support from the community, Larry was able to

have his name placed on

lists at two hospitals to

receive the transplant.

“By that time, I could not

work. But I did not

know I could file for

Social Security disability,”

he said. “I thought Social

Security was only for

retirement.” 

Larry was near death

before a donor was

found. In November

1995, surgeons wheeled

him into the operating

room at Johns Hopkins

Hospital where he

received a heart transplant. He remained hospitalized for three

months.

Now, at age 44, he is

back to work, recovering

from the surgery and his

long stay in the hospital. 

“It was a miracle,” he

says. “I never gave up

hope because of the support of my wife, the community, the doctors, and

nurses. But now I have

many bills to pay for my

surgery and medication.”

Larry contacted his

local Social Security

office in the fall of 1995

and began receiving regular monthly benefits.

Now he says, “My Social

Security disability benefits really help out. We

were able to keep our

house.”

Though Larry is

back to work, his Social

Security disability benefits are extended until he

is further along in his

recovery. The family,

which includes Larry’s

wife, Sue, and their two

sons, Michael, age 16,

and Ryan, 14, are happy

to have their father back

in good health and can

enjoy life once again. 

DISABILITY AT A GLANCE

Disability under the

Social Security program

is based on the inability

to work. The person 

also must be insured

under the Social Security 

program. To be considered disabled, one must

be unable to do any kind

of work for which he or

she is suited. Since Social

Security generally does

not pay benefits for 

partial disability or for

short-term disability, the

impairment must be

expected to last for at

least a year or result in

death. Social Security disability benefits can 

be paid at any age.

A disability beneficiary is automatically

enrolled in Medicare

after getting benefits for

two years. In addition,

certain family members

may also qualify for benefits on the record of a disabled person.

Many disability beneficiaries attempt to go

back to work. To help

them succeed, Social

Security provides work

incentives which allow

for cash benefits and

Medicare coverage. 

If you would like

more information about

the disability program or

work incentives, call our

toll-free number –

1-800-772-1213. 

DISABILITY REDESIGN

UPDATE

Beginning April 

1997, the Social Security

Administration plans to

test a claims process

model that combines 

key disability redesign 

initiatives. Testing will

take place at eight sites

around the country, and

will have a universe of

30,000 cases randomly

selected over a 9-month

period. 

The combined model

will test the following

redesign features:

– A single decisionmaker 

A highly trained disability

examiner in the State

Disability Determination

Service will be authorized

to sign the disability

determination form for

most cases. Mental 

impairment cases and

Supplemental Security

Income childhood 

disability claims will

require the signature of a

medical consultant.

– Pre-decision interview for 

initial claims 

If a decision will be less

than fully favorable to the

claimant, the decisionmaker will offer the

claimant a pre-decision

interview, either face-toface or by telephone.

– Elimination of the 

reconsideration step 

If a claimant chooses to

appeal a decision, the first

level of appeal will be a

hearing before an

Administrative Law Judge.

– Adjudication Officer

When a hearing is

requested, the adjudication officer will work with

claimants and/or their

representatives to define

the issues for appeal by

obtaining new evidence

and developing the

claimant’s record. Where

the evidence warrants it,

the Adjudication Officer

may issue a revised fully

favorable decision, and

eliminate the need for a

hearing. 

Data on sample 

cases will be collected

after all appeals have

been decided. 

SOCIAL SECURITY IS

PREPARING FOR BABY

BOOMERS’ RETIREMENT

(Continued from page 1)

A spouse’s benefit payment day will be determined by the worker’s

birth date.

People who currently

get Social Security will

continue to receive benefits on the third day of the

month. The same is true

for people who begin

receiving benefits from

both Social Security and

Supplemental Security

Income (SSI). SSI will

continue to be paid on

the first of the month.

Adding new benefit

payment days will let

Social Security give better

service to all beneficiaries

and callers. This becomes

increasingly important as

Social Security prepares

for the retirement of baby

boomers. Over the next

25 years, the benefit population will grow from 

the current 50 million 

to more than 76 million.

By spreading benefit 

payment dates over the

month, Social Security

will be able to provide

faster, more efficient 

service, especially to those

who call Social Security’s

toll-free number 1-800-

772-1213 about their

monthly benefit. 
COMMISSIONER’S

MESSAGE 

Hubert Humphrey once said that

“the true moral test of government is

how it treats those in the dawn of life

– the children; those in the twilight 

of life – the aged; and those who are

in the shadow of life – the sick, the

needy, the disabled.” 

Supplemental Security Income

(SSI) is our national answer to his

important test. SSI gives our neediest,

the elderly, blind, and disabled a 

measure of financial security. SSI

helps these men and women living 

in poverty by providing a floor of

income which they can rely on. 

Contrary to the image some try 

to create, SSI is not a program filled

with undeserving people getting rich

off the federal government. Nothing

could be further from the truth. In

fact, for millions of Americans, SSI

benefits are the only thing standing

between them and destitution. More

than half of SSI’s 6.5 million recipients have no other source of income.

And for another 2.4 million, SSI is 

a supplement to those elderly who

receive the smallest of Social Security

benefits and have little additional

income. 

We know that the accuracy of 

eligibility status is of paramount

importance to protect SSI itself, and,

of course, the recipients. Therefore,

we have a number of procedures and

initiatives in place to ensure the

integrity of the program.

Make no mistake: we have a zerotolerance for fraud. With our new

Inspector General at the lead, in the

past two years, we have more than

doubled our number of investigators

working in the field. We are also

establishing new mechanisms, such 

as computer-matching agreements

with states and other public agencies,

for obtaining and verifying income

and other relevant information

regarding continuing eligibility of SSI

recipients. We also encourage our

employees and the public to come forward with concerns; we now have a

new national hotline, 1-800-269-0271,

just for this purpose.

Further, we have agreements with

approximately 3,500 federal, state,

and local prisons, to obtain ongoing

reports on their prison populations,

so that we can suspend benefits for

any SSI recipient who is incarcerated,

as is required by law.

Again, our zero-tolerance of fraud

means that those few individuals who

attempt to cheat this important 

program know that Social Security is

tracking them down, will prosecute

them, and will seek the strongest 

punishment available under law.

Additionally, with our strengthening

the eligibility process review, and new

programs which will help the disabled

become independent, SSI is not only

facing the challenges of today; it is

ensuring the financial security for

those who need it the most for years

to come.

WE WON’T KEEP YOU IN 

SUSPENSE

Each year, Social Security

receives reports from employers across the nation representing the earnings of millions of

workers. Social Security posts

these earnings to the worker’s

earnings record, and later uses

them to determine eligibility

for Social Security benefits,

and the amount of those 

benefits. A very high percentage of the earnings reports

Social Security receives are 

correct, and posted timely.

Sometimes, however, 

Social Security will receive an

earnings report that does not

match the name and Social

Security number already on

our records. When that happens, the agency goes to great

lengths to find the correct

record to which to credit the

earnings. 

First, we apply some 

tolerances for common errors,

such as the use of nicknames,

misspellings of names, or 

transposing a letter in a name

or a numeral in the Social

Security number. If that doesn’t

work, we attempt to contact

workers or their employers to

resolve the discrepancy.

As a result of these and

other efforts, we are eventually

able to post almost 80 percent of the earnings reports

that originally did not match.

Only after we have exhausted

all of these means do we place

the earnings in a “suspense

file.” This is a file where earnings are placed that cannot be

credited to a specific earnings

record. But, once an item goes

into the suspense file, it does

not simply remain there. We

continue to make all

efforts to post as many

wage items as possible. 

Social Security is 

concerned about the

effect of any unposted

earnings on a person’s eligibility

and benefits. You

can help by taking the following

steps to make

sure your earnings are properly

credited:

– Request a free

Personal Earnings 

and Benefit Estimate

Statement

(PEBES). 

PEBES gives

workers a yearby-year listing

of all earnings posted

to Social

Security

records. When you receive

it, check to make sure your

records of earnings agree with

ours. To request a PEBES by

telephone, call 1-800-772-1213.

Or contact us at our Internet

address, http://www.ssa.gov.

– When you change your name

for any reason, let us know.

One name on your Social

Security record and another

on your wage report could

delay the crediting of your

earnings.

– Carefully review your W-2

Form to make sure your

employer has your correct

name and Social Security

number.

PROFILE ON 

WORLD-CLASS SERVICE

Direct Service Unit gets the

Hammer Award

The mission: build a 

government that works better

and costs less. The accomplishment: Social Security’s

Direct Service Unit (DSU).

Recognizing the accomplishment, Vice President Gore’s

National Performance Review

recently presented to the DSU

its prestigious Hammer

Award. 

Vice President Gore 

presents this award to teams 

of federal employees who

make a significant contribution toward the mission. How

did Social Security do it? To

make government work better,

Social Security needed more

people in jobs that directly

serve the public. To make government cost less, the agency

had to fill those jobs without

hiring any new employees. 

By accepting volunteers

from throughout headquarters 

in Baltimore and placing them

in the DSU, Social Security

solved both problems. Twelve

weeks of training honed them

into a team. When they

emerged as the Direct Service

Unit, they set out to improve

the level of service Social

Security provides to the public.

During its first phase of

operations, the DSU is

responding to calls from the

public to Social Security’s tollfree number, 1-800-772-1213. 

In its first nine months, the unit

of 155 employees responded 

to 312,510 customer inquiries.

The DSU also is a laboratory in which to test new ideas

for improving service.

Currently, the DSU is being

tested as a site for answering

Social Security questions posted on the Internet.

Feedback from customers 

has led to another proposal for

testing. Many customers want to

file a claim for benefits using

Social Security’s toll-free 800

number. The DSU is exploring

ways to do this.

The DSU is successful partly

because employees love working there. Many had served in

jobs with no public contact

and did not feel connected to

the primary purpose of Social

Security, which is to serve the

public. “Now,” says Art Webster,

Director of the DSU, “when

the DSU receives a telephone

call or answers a question 

posted on the Internet that

ends with a satisfied customer,

employees feel a sense of 

satisfaction.” Receiving the

Hammer Award makes it 

even better.

John J. Callahan

Acting Commissioner of Social Security
IRS MAY RECOMPUTE 

YOUR TAXES

“Checking it twice,” is good

advice at any time, and it would

be well to apply this wisdom to

your income tax returns. This

year, for the first time, if you 

do not show a correct Social

Security number on your tax

return, the Internal Revenue

Service (IRS) may recompute

your taxes. Recent changes in

tax law require that Social

Security numbers be listed 

correctly on the return before 

a person can claim a personal

exemption, the child care credit, or the earned income credit.

When processing tax returns,

IRS checks the names and

Social Security numbers of taxpayers, their spouse, and all

dependents born before

December 1, of that tax year.

If IRS discovers an incorrect

or missing Social Security number, they will recompute the

income tax. For example, if you

claim a child care credit, but

don’t have a Social Security

number for the child, IRS will

recompute the taxes and not

allow the child care credit. 

For those who do not have 

a Social Security number for

themselves or a dependent, now

is a good time to apply. Contact

your local Social Security office

or call Social Security’s toll-free

number, 1-800-772-1213, to

make an appointment. You’ll

need to show proof of age and

U.S. citizenship (or lawful alien

status), and verify your identity.

If the number is for a child,

the same identifying information is needed. A birth

certificate or school

record can be used to

verify identity.

Non-residents, resident

aliens, and dependents of a lawfully admitted alien working in

the U.S. who cannot get a Social

Security number should apply

for an Individual Taxpayer

Identification Number (ITIN).

To get an ITIN, call the IRS’s

toll-free number, 1-800-TAXFORM (1-800-829-3676) and ask

for Form W-7, Application for IRS

Individual Taxpayer Identification

Number.

Everyone must use either 

a Social Security number or

ITIN on his or her tax return.

The IRS will no longer accept

temporary numbers or “applied

for” as reasons for not having

the proper number, except in

cases where a child is born in

December of that tax year.

WHEN TIME MATTERS

Do you need Social Security

information but don’t have

time to visit our offices? Use

Social Security’s toll-free number, 1- 800-772-1213. It’s convenient, quick, and easy. A friendly, automated voice answers,

thanks you for calling Social

Security, and explains how to

continue your call. For – 

– an application for a new or

replacement Social Security

card, press or say 1;

– information about your earnings and future

Social Security

benefits, press

or say 2;

– proof of current payments,

press or say 3;

– Medicare information or a

replacement Medicare card,

press or say 4; or 

– the address and working

hours of the office nearest you,

press or say 5.

To speak with a representative, press or say 6, or remain

on the line. Representatives

are available between 7 a.m.

and 7 p.m. When a representative answers, you may ask for

one who speaks Spanish and

you will be connected with a

Spanish-speaking representative. If you speak a language

other than English or Spanish,

you should have someone 

who speaks English or Spanish

with you when you call. Other

languages are not available at

this time. When the office is

closed in the evening between

7 p.m. and 7 a.m. and on weekends and holidays, two additional options are available. 

For a list of –

– pamphlets, press or say 6, and

– general information messages, press or say 7.

For some services, you may

be asked to leave your name,

address and, in some cases your

Social Security number, so we

can send the

information

to you.

FIRST CLASS MAIL

POSTAGE AND FEES PAID

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PERMIT NO. G-11

SOCIAL SECURITY ADMINISTRATION

OFFICE OF COMMUNICATIONS

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BALTIMORE MD 21235

OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE, $300

FIRST CLASS

WHAT , S NEW

Social Security

Administration

SSA Publication 

No. 05-10110

KEEP IN MIND

PUBLISHER’S BOX

Social Security Today is

designed to provide timely

and relevant information

about the retirement, survivors, disability, and

Supplemental Security

Income programs, as well as

important Medicare information.

Each issue of Social

Security Today contains items

that should be of interest to

your constituency.

Permission to reprint 

articles, giving credit to the

Social Security

Administration, is granted.

We would appreciate your

sending tearsheets when

you reprint this material. 

We welcome your comments and invite suggestions for future editions.

Please direct your correspondence to Editor, 

Social Security Today,

Room 4-J-10 West High

Rise, 6401 Security

Boulevard, Baltimore, 

MD 21235, or fax to

Margaret.D.Pagan@ssa.gov.

Social Security Today also is

available at the Social

Security Internet site,

http://www.ssa.gov.
SOCIAL SECURITY

TRUST FUNDS SOLVENT

UNTIL 2029

Long range outlook unchanged

The Social Security trust funds are

in good fiscal condition and will remain

so well into the next century, says the

Social Security Board of Trustees which

recently released its 1997 report on the

Old Age and Survivors Insurance

(OASI) and Disability Insurance (DI)

Trust Funds. The Social Security trust

funds support benefit payments to 

nearly 44 million Americans. 

The report concludes that even 

with no changes in current law, the

combined Social Security trust funds

will be able to pay benefits for the next

32 years, until 2029, no change from the

date reported last year. At that time, the

Trustees estimate, Social Security will

still be collecting tax revenues – $2.2

trillion in 2029 alone – sufficient to

cover about three-fourths of it’s annual

expenditures. 

The Trustees emphasized that it is

important to address the issue of Social

Security’s long-range insolvency within a

reasonable period to allow time to

phase in any necessary changes and to

allow workers to adjust their retirement

plans to take account of those changes.

At the same time, the Board stressed

that there is ample time to discuss and

evaluate alternative solutions with deliberation and care. They stated that the

size of the long-range deficit – 2.23 percent of total payroll – is such that longrange balance could be restored within

the framework of Social Security’s present structure. 

“The health of the Social Security

program is important for millions of

Americans and their families,” Treasury

Secretary Robert Rubin said. “There 

is no need for immediate action, but 

we believe the long-range deficit in the

Social Security funds should be

addressed in a timely way to allow workers an opportunity to adjust their retirement planning in response to program

changes.”

Acting Social Security Commissioner

John J. Callahan added, “This report

reinforces the message that we must

address the long-range issues facing

Social Security, but we are not on the

eve of a crisis. There is time to act carefully and wisely in a bipartisan manner

to enact reforms in the coming years

that will ensure the long-term financial

viability of the Social Security program.” 

The Board of Trustees

reports to Congress

annually on the current and estimated

future financial condition of the trust

funds, as required by law. The report

uses annually updated economic and

demographic assumptions, reflecting

the Nation’s recent experience and

available research. Based on their intermediate assumptions, the Trustees also

report — 

• About 144 million workers in 1996

were covered by the Social Security

program and nearly 44 million individuals were receiving retirement, 

disability and survivors benefits each

month. 

• Income to Social Security’s OASDI

trust funds in 1996 totaled $424.5 billion, and outgo totaled $353.6 billion.

In 1995 income was $399.5 billion,

and outgo was $339.8 billion.

• The trust fund reserves stood at $567

billion at the end of 1996. (In 1995,

the trust fund reserves were $496.1

billion) By law, the trust fund reserves

are invested in government securities.

In 1996, the reserves earned $38.7 billion in interest at an effective annual

rate of 7.6 percent. 

• Administrative expenses for the

OASDI program were $3 billion in 

1996, or about 

0.9 percent of 

benefit payments. 

The Board of

Trustees is 

composed of six

members: the

Secretary of the

Treasury, the

Secretary of Labor, 

the Secretary 

of Health 

and Human

Services, the

Commissioner of

Social Security, and

two public members who are

appointed by the

President and 

confirmed by the

Senate to serve

four-year terms,

Stephen Kellison

and Marilyn Moon.

Volume 1, Number 6 An official publication of the Social Security Administration May / June 1997

SOCIAL SECURITY

TODAY

MEDICARE FUNDS FACE 

EXHAUSTION

The same trustees report that shows

Social Security Trust Funds are in good

shape for the next three decades, has a

dire forecast for Medicare. According

to the best estimates, the Health

Insurance Trust Fund faces eminent

exhaustion, with a depletion date just

four years away, 2001. 

“Legislative changes should be made

this year,” the trustees say in conclusion.

“Even so, changes enacted this year to

slow Medicare’s growth would achieve

most of their savings in the year 2000

and beyond, dangerously close to when

the HI Trust Fund will be exhausted. 

“Medicare cannot stay exactly as it is

and it is misleading to think that any

part of the program – beneficiary premiums, provider payments, controls on

utilization, covered services or revenues

– can be exempt from change.” ‘
CENTENARIANS HAVE

SPECIAL TIES TO

SOCIAL SECURITY

Seeing double is 

nothing new for Selma

Boehne and Hortense

Heitmuller. They were

born identical twins in

October 1896. 

While growing up, in

Washington, D.C., along

with three brothers and

two sisters, Selma and

Hortense were inseparable. But one Sunday

morning, in church,

Selma met John Boehne,

a young Army sergeant

from Indiana serving in

World War I. The couple

started a romance and

when 25-year-old John

returned, he proposed to

Selma, then 24. They were

wed at the church where

they met in April 1920.

After the wedding, the

young couple moved to

Evansville, IN. Hortense

remained in Washington,

D.C., to care for her 

parents. John promised

Selma that one day he

would take her back to

her home town. Over the

years, while Selma was

busy raising two sons,

John became interested 

in politics and in 1930, 

he was elected to serve

the 8th District of Indiana

in Congress. With his 

new position, John kept

his promise, and while

Congress was in session,

the family lived in

Washington, D.C. 

During the 12 years 

he served in Congress,

John was a member of 

the House Ways and

Means Committee, which

drafted the original Social

Security Act. He was

among the onlookers

when President Franklin

Roosevelt signed the historic legislation in 1935.

After leaving Congress,

John became a corporate

tax counselor. He died in

1975 at age 81.

In 1987, Selma and

Hortense decided to sell

their homes and move

closer to their church, 

in which they both had

been very active. They 

are together once again,

residing in a retirement

home in Silver Spring,

MD. Both receive Social

Security benefits.

“I didn’t know at the

time what a big impact

the Social Security Act

would have on the country,” said Selma. “And I

certainly never thought

that one day my sister and

I would collect benefits.

I’m really proud that my

husband was part of that

historic event.”

YOU MUST PROVE 

YOUR CITIZENSHIP

WHEN APPLYING FOR

SOCIAL SECURITY

When you file a claim

for Social Security benefits, you must now prove

your United States citizenship or prove that

you are lawfully present

in this country. This

requirement is the result

of welfare reform legislation enacted last August. 

Here’s how to prove

citizenship: If you were

born in the United

States, your U.S. birth

certificate, which you

must present as evidence

of your age, will serve as

evidence of your citizenship. If you’re a U.S. 

citizen born outside the

United States, you can

prove your citizenship by

presenting your Report

of Birth Abroad or your

U.S. passport. If you’re a

naturalized U.S. citizen,

you can present either

your Certificate of

Naturalization or your

current U.S. passport. 

If, however, you’re

not a U.S. citizen and 

filing a claim for Social

Security benefits, you

must prove that you 

are lawfully present in

this country. You can

prove your lawful presence by submitting the

appropriate unexpired

document issued by the

Immigration and

Naturalization Service. 

POVERTY LEVELS RAISED FOR

1997– CERTAIN MEDICARE

BENEFICIARIES AFFECTED

Do you know what a

Quimby is? Or a Slimby? If

these terms sound unfamiliar,

this article probably isn’t for

you. But if you understand the

jargon, read on. 

(For those uninitiated, a

QMB is a Qualified Medicare

Beneficiary; a SLMB is a

Specified Low-Income

Medicare Beneficiary.) 

Recently announced

changes in the Federal Poverty

Guidelines have increased 

the threshold levels for QMBs

and SLMBs. Here’s how the

programs work. 

Federal law requires that

state Medicaid programs pay

Medicare costs for certain

elderly and disabled people

with low incomes and limited

resources. This means that 

low income beneficiaries don’t

have to pay as much money 

out of their own pockets for

hospital, physician and other

services covered by Medicare.

The savings can amount to

hundreds, if not thousands of

dollars each year. 

The QMB program helps

people with limited resources

whose incomes are at or below

the national poverty level. It

covers the costs of Medicare

premiums, co-insurance and

deductibles that Medicare 

beneficiaries normally pay out

of their own pockets. 

Qualified Medicare

Beneficiaries pay only for the

supplies and services not 

covered by Medicare, such as

routine physicals, dental care,

hearing aids and eyeglasses. 

In some states, QMBs have to

pay nominal cost sharing

amounts for each doctor’s visit

or other benefits that require 

a copayment. 

The SLMB program covers

people whose incomes are

slightly higher than the poverty

level, but not more than 20

percent higher. People who

qualify for help under SLMB,

do not have to pay the $43.80

monthly Part B Medicare premium. They still have to pay

Medicare deductibles, co-insurance and charges for health

care not covered by Medicare. 

Here are the new monthly

thresholds for the QMB program: 

Individual Couple 

For 48 Continental 

States and D.C. – 

$ 678 $ 905 

For Alaska – 

$ 843 $1,126 

For Hawaii – 

$ 776 $1,037

And for the SLMB program: 

Individual Couple 

For 48 Continental 

States and D.C. – 

$ 809 $1,081 

For Alaska – 

$1,007 $1,347 

For Hawaii – 

$ 927 $1,240 

Additionally, resources, such

as bank accounts, stocks and

bonds, may not exceed $4,000

per person or $6,000 per 

couple. Generally, resources

are assets a person owns, 

however, an individual’s home,

one automobile, burial plots,

home furnishings, personal

jewelry and life insurance, do

not count. 

For More Information 

The rules to qualify for

either program vary from 

state to state, but in general,

individuals must be entitled 

to Medicare Part A – Hospital

Insurance. 

Only the states can decide 

if an individual is eligible for

help through the QMB or

SLMB programs. Those who

think they might qualify should

contact the appropriate state 

or local social service agency 

to apply. For more information

about the QMB or SLMB 

programs, call the Health Care

Financing Administration, 

1- 800-683-6833. 

FOR MORE INFORMATION If you’d like more information

about any of the items in Social 

Security Today, there’s an easy way to

find out more. Just call Social Security

at 1-800-772-1213 weekdays between 

7 a.m. and 7 p.m. To make sure you

get through as fast as possible call

early in the day. Other good times to

call are later in the week and later in

the month. If you have access to the

Internet, you can also get a variety of 

information about Social Security 

programs at www.ssa.gov. 

JO ANNE BARNHART

JOINS SOCIAL SECURITY

ADVISORY BOARD

The Social Security

Advisory Board now has

a new member, Jo Anne

Barnhart, who was

appointed to fill the

vacancy created when

Pete Singleton resigned.

Ms. Barnhart is a political and public policy

consultant to state and

local governments, 

specializing in program

designs for welfare and

social services. From

1990 to 1993, she served

as Health and Human

Services’ Assistant

Secretary for Children

and Families. In the 

mid-1980s she served 

as Social Security’s

Associate Commissioner

for Family Assistance. In

addition, she served in a

variety of staff postions

in the U.S. Senate. 

Ms. Barnhart says,

“Social Security will be

going through some big

changes in the future

and as a baby boomer

myself, the recommendations that the Board will

be putting forth will

affect the future of my

entire generation.” 

The seven-member

Social Security Advisory

Board advises the

Commissioner of Social

Security on policies 

related to the old-age,

survivors and disability

insurance programs and

to the Supplemental

Security Income program. The 1994 legislation that made the Social

Security Administration

an independent agency

also created the Advisory

Board. 

A REMINDER FOR 

HOUSEHOLD EMPLOYERS 

If you pay someone to 

work in your house, a cook, a

cleaning person, or a gardener

for instance, remember, if his

or her wages from you exceed

$1,000, you’ll have to report

those wages and pay Social

Security and Medicare taxes 

on them. As an employer, you

must pay your share of the

taxes, 7.65 percent of wages,

along with the employees’

share, also 7.65 percent. You

can either withhold your

employee’s share from his or

her salary or pay it from your

own funds. 

For more information about

Social Security coverage for

household employers, call 

1-800-772-1213 and ask for the

factsheet Household Workers.

Additional information is also

available in IRS Publication

926, Household Employer’s Tax

Guide, available from the IRS by

calling 1-800-829-3676.
COMMISSIONER’S

MESSAGE 

When President Clinton asked

me to serve as Acting Commissioner

of Social Security, I accepted without reservation. I know from my

years of working for Congress and

the Department of Health and

Human Services that few government agencies are as highly regarded

as the Social Security Administration.

And I know how important the 

programs we administer are to the

millions of people who rely on

them, everyday. 

While at the Social Security

Administration, I will do everything

possible to ensure that our efforts 

to provide customers with high

quality service are aggressively 

carried forward. 

One of the issues that has 

surfaced since I came on board 

has been the concerns of the public

about our new on-line Personal

Earnings and Benefit Estimate Statement

(PEBES) service. As many of you

know, we are in the process of 

conducting a number of public

forums on interactive PEBES service

to assess the nature of these concerns and their validity. 

The PEBES shows workers how

much they’ve paid into Social

Security over the years and what

they can expect to get back out

when they are eligible. Each year,

about 3.5 million people request

Personal Earnings and Benefit

Estimate Statements. 

Since the Personal Earnings 

and Benefit Estimate Statement is

possibly the most valuable document American workers have 

available today to plan for their 

own economic security, I believe 

it’s important to make this information readily accessible, in a convenient format. The ability to deliver

world-class public service – even in

the near future – necessitates the

exploration of Internet possibilities. 

At the same time this agency is,

and has always been, vigilant about

protecting the privacy of the people

we serve. While many security features have been built into the online PEBES service already, we want

to ensure that our safeguards meet

the highest standards of privacy and

computer security. When all the

information is in, we will decide the

future direction of on-line PEBES

service. 

In the meantime, PEBES 

service will continue to be available

through the mail. I also want to

invite those of you who have

Internet access to visit our site at

www.ssa.gov. You will find a surprising amount of useful information

on a variety of Social Security topics. 

I look forward to meeting many

of you in the months ahead. 

GET THE FACTS BY FAX

Need information about

Social Security’s disability program? Or what you need to do 

to get a Social Security number?

Or how your retirement benefit

is figured? Now you can get all

the facts about Social Security

right at your fax machine. 

Social Security has always had

numerous pamphlets and factsheets available as part of it’s 

public information program, but

as times change, Social Security’s

way of getting information out to

people has changed, too. Now

frequently requested information

is available almost instantaneously. And it’s all part of Social

Security’s emphasis on providing

the public with world-class service. 

Social Security has nearly 

200 pamphlets and factsheets

available by fax. Most are a page

or two in length, however, some

are more in-depth publications.

Most items are available in

English. A number are also available in Spanish and other languages as well. 

To get a copy of the Fax

Catalog, call Social Security at 

1-888-475-7000 from a touchtone phone. A voice menu will

lead you through the steps you

need to follow. You do not have

to call from your fax machine

but you will need to have your

fax number handy. You can

request up to three documents

each time you call. Fax service is

available 24 hours a day. About a

thousand requests for fax information are handled monthly and

the service is expanding. 

John J. Callahan

Acting Commissioner of Social Security

OLDER CAREGIVERS 

FILLING A GAP

Each year, the President of

the United States proclaims May

as Older Americans’ Month – a

time to acknowledge the nation’s

older citizens and examine the

issues that affect them. Since the

average American is living longer

than ever before, focusing the

nation’s attention on its older 

citizens has never been more

appropriate. But increase

longevity, coupled with changing

systems for health care delivery,

also mean more Americans of all

ages are caring for older family

members and friends who need

on-going assistance. 

In the U.S., more than 22 

million informal caregivers, both

family and friends, look after the

needs of as many as five million

older individuals every day. Often,

older individuals are caregivers

themselves. Recent estimates show

that 12 percent of the caregivers

are 65 or older. And almost a 

third of them are providing care

for friends and neighbors, not 

relatives. These informal caregivers are the lifelines that their

older relatives and friends rely on,

not only for daily care, but for 

critical information about

community services and national

programs set up to assist them.

Thousands of older individuals

also care for younger mentally

impaired and physically challenged family members every day. 

Caregivers play a critical role

in enhancing the quality of life

for older Americans. Social

Security stands with those who

recognize the contributions and

needs of older Americans

throughout the month of May.

Social Security pays benefits to

more than 90 percent of

Americans aged 65 and older,

playing a major role in reducing

poverty among the aged. 

The Agency on Aging in each

state or area has more information about this year’s Older

Americans’ Month celebration.

Older individuals and caregivers

can get information on support

services including home and 

community-based care services

through their state or local

Agency on Aging. These organizations are generally listed under

“Aging” or “Social Services” in 

the city or county government sections of the telephone directory. 

Individuals who have difficulty

identifying the closest aging 

network organization can call 

the Eldercare Locator, 1-800-677-

1116, Monday through Friday

from 9 a.m. to 11 p.m., Eastern

Time. The Eldercare Locator is 

a public service of the

Administration on Aging set up

to identify local public and private resources and services available to assist older people as well

as their caregivers. 

EMPLOYEES GET NEW SERVICE

Employers now have a toll-free 

number to contact Social Security

for answers to wage reporting

questions. It’s 1-800-772-6270

and it’s staffed workdays from 

7 a.m. to 7 p.m. Eastern time. At

present, employers can get

answers to questions about magnetic media filing, Medicare

reporting error notices and

Social Security/Internal

Revenue reconciliation of W-2

data. The service will be expanded later to answer other types of

employer questions. 
PROOF OF BENEFITS IS EASY

There may be times when you

need to prove how much you

receive in Social Security benefits.

Let’s say you’re moving to a new

apartment and your prospective

landlord needs to know the

amount of your monthly Social

Security benefits. What do you

do? How do you prove your benefit amount? 

First, check your personal tax

records. Every January we send

you a Form SSA-1099 showing the

amount of benefits you received

in the past year. The form is considered official proof of your benefit amount. If you can’t find your

Form 1099, call the Social

Security toll-free number (1-800-

772-1213) or visit your local Social

Security office. You’ll need to

prove your identity to receive a

verification of your benefits.

Don’t worry, no one can receive

your benefit information unless

Social Security has your written

consent. 

ONE MORE THING 

FOR NEW BRIDES

June brides should be sure to

add one more must-do to the list

of things they need to take care of

to insure the success of their new

life. They need to change the

name on their Social Security

records if they are going to use

their new names at work. 

One of the most common 

mistakes in wage reporting 

occurs when brides forget to

change their name. If their earnings are reported under their 

new name, Social Security 

computers may not be able to

process them because the name

and number are not consistent

with their Social Security records. 

NONCITIZENS MUST PROVE 

ELIGIBILITY FOR SSI

Social Security recently sent

out notices to more than 895,000

noncitizens explaining that they

have up to 90 days to submit

proof of U.S. citizenship or eligible alien status so that they can

continue receiving Supplemental

Security Income (SSI) payments.

As spelled out in the welfare

reform legislation enacted last

year, most noncitizens, with some

exceptions, will lose their eligibility for SSI payments. To be eligible

for SSI, individuals must be U.S.

citizens or nationals, or legal

aliens in certain categories,

including some refugees and

some asylees. 

An Immigration and

Naturalization Service factsheet

explaining how to become a U.S.

citizen went out with the Social 

Security notices. Individuals who

have done so will need to bring

their naturalization papers to

their local Social Security office to

update their records. 

Those who meet one of the 

eligible alien categories, should

bring an unexpired INS Form 

I-94, or one of the other documents listed in the notice to their

local Social Security office.

Original documents are required

– Social Security does not accept

photocopies. 

People who submit proof of

eligibility on time will receive a

notice from Social Security showing their eligibility category.

Those who have not contacted

Social Security or submitted proof

of eligibility will be sent a second

notice indicating that their payments will end in August or

September. The notices explain

the appeal rights process, and

what recipients should do if they

become U.S. citizens, or if their

alien status changes. 

Individuals who have questions

about the notice should contact

their local Social Security office as

soon as possible. 

NEW BENEFICIARIES GET NEW

PAYMENT DATES

If you applied for Social

Security on or after May 1, 1997,

the date you were born will determine the day of the month you

receive your benefits. Here’s how

it works – 

Birth Date Payment Day 

1st - 10th Second Wednesday 

11th - 20th Third Wednesday 

21st - 31st Fourth Wednesday 

Social Security beneficiaries

who applied before May 1, 1997

will continue to receive payments

on the third of the month;

Supplemental Security Income

recipients on the first. When you

apply for benefits, your Social

Security representative will tell

you when you can expect your

payments. 

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No. 05-10110

KEEP IN MIND

Social Security Today is published bi-monthly

to keep readers up to date on important information about the Retirement, Survivors and

Disability Insurance programs, Supplemental

Security Income and Medicare. Permission is

given to reprint articles, pictures and information. We would appreciate crediting the

Social Security Administration as the source.

Please direct correspondence to Editor, Social

Security Today, 4-J-10 West High Rise, 6401

Security Boulevard, Baltimore, MD 21235 or

send e:mail to Richard.W.Schwartz@ssa.gov.

Social Security Today is also available on

Internet at www.ssa.gov. 
SOCIAL SECURITY 

IS ON TELEVISION

If you ever wanted to find out

more about how Social Security works,

or the services Social Security offers,

or what you need to do before you

apply for Social Security benefits, you

may be able to find the answer on television. Social Security has more than a

dozen videos available to explain how

various aspects of the program works.

Some are general in scope, others are

intended for specific audiences. All

are available free of charge. If you

would like a copy for your group or

organization, just call Social Security’s

Distribution Center, 1-410-965-0945.

Here is a list of the Social Security

videos with a brief description and

running times.

PLANNING FOR TOMORROW 60:00

Explains how successful financial

planning depends on your investments,

your pensions and the three programs

that make up Social Security — retirement insurance, survivors insurance

and disability insurance.

PLANNING YOUR FUTURE WITH PEBES 4:00

Explains how the “Personal

Earnings and Benefit Estimate

Statement” (PEBES)” can help you

plan for retirement. 

CHANGING FOCUS 19:00

Explains what people nearing

retirement age need to know about

Social Security before they retire.

PROMISES TO KEEP: WORK INCENTIVES 15:00

Explains work incentives that allow

disabled beneficiaries to return to

work without losing Medicare/

Medicaid protection until they are

secure in their new employment.

FOCUSING ON SERVICE 14:00

From enumeration at birth to the

“Personal Earnings and Benefit

Estimate Statement,” this video takes

viewers through all of the free services

provided by Social Security.

SSI: A FRIEND INDEED 21:00

Gives a brief overview of the

Supplemental Security Income (SSI)

program, who it helps and how individuals should apply.

EVOLUTION OF SOCIAL SECURITY 30:00

Introduces viewers to the philosophy behind one of the most successful

federal programs and answers some of

the tough questions about Social

Security. (A Spanish version is also available: La Evolution del Seguro Social.)

SSI HELPING KIDS 13:00

Demonstrates changes in the 

quality of life four physically challenged children and their families

experience when they receive

Supplemental Security Income (SSI).

Volume 2, Number 1 An official publication of the Social Security Administration July / August 1997

SOCIAL SECURITY

TODAY

WIDOWS AND WIDOWERS MAY

BE ELIGIBLE FOR HIGHER

BENEFITS

Social Security is making sure 

widows and widowers who are receiving survivors benefits don’t miss out

on the opportunity to get a higher

retirement benefit. Using a new automated system, Social Security reminds

surviving spouses four months before

they reach age 65 that they may be 

eligible for a higher benefit based on

their own earnings record. 

Here’s how that’s possible. Widows

and widowers can begin receiving

Social Security survivors benefits based

on their deceased spouses’ record as

early as age 60 (age 50, if they are 

disabled). When they reach age 65,

they may be eligible for a higher 

benefit based on their own earnings

record. Although surviving spouses

are told at the time they apply for 

survivors benefits that they may be 

eligible for a higher retirement 

benefit at age 65, many fail to contact

Social Security to file a claim. 

Earlier this year, Social Security

identified more than 200,000 surviving spouses who were eligible for 

higher retirement benefits. They were

notified by letter and asked to contact

Social Security. By now, most of those

notified have filed a claim and are

already receiving the higher benefit.

The switch to retirement benefits can’t

be automatic. The person must file a

separate claim for retirement benefits. 

If the surviving spouse decides 

not to apply for retirement benefits at

65, his or her future retirement benefit increases each year by a certain 

percentage year until he or she reaches age 70. For example, the benefit

amount for a person born in 1930

increases by 4.5 percent.
MEET A

BENEFICIARY

Marge Blake

Activity At Any Age 

Keeps Life Interesting

Looking at her schedule, you’d never

know 68-year-old retirement beneficiary

Marge Blake is actually retired. In fact, her

calendar has more things to do now than

when she worked. 

“Keeping going at a variety of activities,

is what makes life interesting,” she says.

And she should know about keeping life

interesting for seniors. Before she retired,

Marge was Director of Senior Services for

Highland Park, Illinois. Today, she’s enjoying a lot of the programs she helped to

develop while she was working.

Marge didn’t set out to be a career

woman. “There was a period of having children and being a mother,” she says. Marge

had three children. One son died at 34.

Her other son and a daughter still live in

Illinois. Marge is also a great-grandmother.

“They all live in the area so I’m close

enough to see them when I want to, but

they’re not right on the doorstep.”

Her 30-plus year career began when,

after a divorce, she went to work for the

Illinois’ Park District Programs. “They had

just started a senior program and I thought

doing that sort of work would be exciting.

People then didn’t know how to develop

programs or services for older people.” 

During her career, Marge was the driving force in DuPage and Cooke Counties

in creating such community services 

for seniors 

as reduced cab fares, 

bus service in the central 

business district, subsidized

senior housing and reduced 

tuition college education programs at

senior- convenient locations. 

But getting people interested in senior

activities was challenging. “There’s a lot of

denial on the part of many people. They

don’t want to be identified as senior citizens.”

One of the things Marge believes keeps

people young at any age is education. “I

have always gone to school and still follow

up on courses that interest me.” During a

summer vacation years ago, Marge took a

course on social services at Oxford

University. And six years later, she returned

to England to take a course in gerontology

at the University of Birmingham. “Services

for seniors are far more accessible in

England than here.” 

When it came time to retire, Marge visited the Waukegan, Illinois Social Security

office to sign up for benefits. But Social

Security isn’t her only source of income.

She’s quick to point out that a lot of her

activities are made possible by the retirement planning she did early on. “I did the

smart thing. I had an automatic deduction

taken out of my pay and set up my own

retirement account. That was before the

days of IRAs. So I have income from that

source, my pension from the city, and, of

course, Social Security.” 

This past spring, Marge completed a

course in the cultural history of western

civilization and is now taking a course in

wetland management. “We’ve had four

training sessions and several field trips. 

We have 94 percent of 

Illinois’ wetlands in

this part of the state. But there is so much

development, the developers have been

compensating by digging drainage ponds

and retention basins. We have 23 ponds

right here in our community. It’s creating 

a significant flooding problem.”

Three years ago Marge completed a

walk across England on a Sierra Club trip.

“We started on the Irish Sea and walked to

the North Sea. The route led us just south

of Scotland, through the moors and the

lake district. Besides the natural scenery,

the land was dotted with estated farm 

houses with families still living in them.” 

Other activities? “I’m chairing a study

committee on aging sponsored by the

League of Woman Voters and another

studying proposed expressways. The only

way to make sure your position is heard is

to get actively involved. I recently testified

before the Illinois House Appropriations

Committee on the need for oversight for

the tollway authority.” 

Marge has no idea how many people

she meets. “It’s a lot,” she says, “but the

politicians don’t need to worry. I’m not

planning on running for office.”

Marge’s advice for other retirees and

near retirees? “Number one is be financially ready for retirement. After that, it’s 

get a life outside your career and your job.

Even though I enjoyed my career, it just

isn’t enough. I find the people who aren’t

happy in retirement haven’t established

any other interest. People who have not

gone outside their businesses or their

careers or their families are not very 

interesting people. People who are happy

in retirement are those who have a 

lot of interests to pursue.”
COMMISSIONER’S

MESSAGE

John J. Callahan

Acting Commissioner of Social Security

As many of you know, the Personal

Responsibility and Work Opportunity

Reconciliation Act, commonly known as the

Welfare Reform, has had a tremendous

impact on our Agency and on a significant

number of the people we serve. Over the

past few months, I have traveled across the

country meeting with legal noncitizens and

had a chance to learn first hand about some

of the real life effects welfare reform has

had. The stories I have heard are of men

and women and children who are disabled

by disease or accidents, people who depend

on Supplemental Security Income (SSI) as

their only source of income. 

Welfare reform was never intended to

put elderly and disabled immigrants into

economic hardship. It was meant to force

able-bodied people to work.

President Clinton has emphasized the

need to change provisions of the 1996 

welfare reform law that he considers unfair.

Misfortune can affect anyone at anytime,

and there must be some protection against

that possibility. Government policies must be

changed to provide that protection.

Earlier this year, the President signed

into law an emergency supplemental bill

that included a one-month extension of 

SSI payments for noncitizens who were

receiving SSI on August 22, 1996. This is 

an important first step. 

Legislation currently making its way

through both the House and Senate will

restore SSI on a permanent basis to this 

vulnerable part of our population. It has

been one of my chief concerns since I

became Acting Commissioner, and I have

worked hard to ensure that our elected 

officials were made aware of this situation

and to ensure that steps to correct it are 

not sidetracked.

Until permanent legislation is passed

and signed into law, we will continue to work

with community service agencies to identify

those people who are affected by welfare

reform and let them know what steps they

must take to become citizens. 

An important point we want to get

across to all legal noncitizens is that they

may continue receiving benefits if they do

become citizens. And we are working to

encourage them to do so.

Historian Oscar Handlin said, “Once I

thought to write a history of the immigrants

in America. Then I discovered that the

immigrants were America.” That statement

emphasizes the significance of the

Administration’s efforts to ensure fair and

equitable treatment for the country’s legal

immigrants...both now and in the future. 

SOCIAL SECURITY’S 

ON THE RADIO

Have you heard from Social

Security lately? This summer 

millions of people will ... on the

radio when Social Security releases a

package of public service announcements (PSAs) to keep people

informed about the nation’s old age,

survivors and disability insurance

programs. One PSA tells how Social

Security affects a variety of people,

young people who are survivors of a

deceased worker, disabled workers,

early retirees, even baby boomers

who have parents collecting Social

Security. As the PSA explains, one

out of every six Americans collect

some sort of Social Security benefit. 

Another PSA tells about a 

cornerstone for planning your financial future, the “Personal Earnings

and Benefit Estimate Statement”. A

third lets younger workers know

about the increase in retirement age. 

The PSAs will be released in

August to 8,000 radio stations

nationally, and they’ll be available in

both English and Spanish. So ‘stay

tuned’ for information from Social

Security. 

INELIGIBLE 

NONCITIZENS TO

RECEIVE ADDITIONAL

SSI PAYMENTS

New legislation now extends

Supplemental Security Income (SSI)

payments through September 1997

for noncitizens whose SSI eligibility

would have ended in August 1997

under welfare reform legislation. A

supplemental appropriations bill

signed into law by the President

changes the original ending date

from August 22, 1997, to September

30, 1997, for ineligible noncitizens

who were receiving SSI when the

1996 welfare reform law was enacted. Under this extension, affected

recipients will receive their last

checks in September 1997, and SSI

eligibility will be suspended effective

October 1, 1997. 

EXHIBITING

SOCIAL SECURITY

Several new exhibits will go 

into service at the national and 

local levels for Social Security 

shortly. A state-of-the-art, interactive

multi-media kiosk will be the centerpiece of the national display where

the public can get the latest 

information about Social Security.

Table-top exhibits for local use are

also in the works.

At Social Security’s information

booths, convention goers will be

able to step up to a CD-ROM 

operated kiosk and take “The Social

Security Challenge,” an interactive

quiz game about Social Security

incorporating sound and animation. 

For smaller public events, Social

Security reps will use new 88 inch by

51 inch table-top exhibits depicting

beneficiaries from all walks of life. 

LOCAL SHERIFFS HELPING 

SOCIAL SECURITY 

SAVE DOLLARS

Local sheriffs in Louisiana are

helping taxpayers save money. How?

By providing timely information to

Social Security about inmates who

are receiving Supplemental Security

Income (SSI), payments to those

individuals can be stopped and tax

dollars can be saved. 

Here’s how it works. Under federal law, recipients confined to jails,

prisons and certain public institutions for more than 30 days —

where their need for food, clothing

and shelter are being met — are not

eligible for SSI. Since it’s not easy

for Social Security to find out when

someone enters an institution, having the institution notify us, allows

us to stop payments timely. (Editor’s

note: The money for SSI payments

comes from general revenues raised

through taxes, not from the Social

Security trust funds.) 

Louisiana sheriffs have been providing the local Social Security office

with names of inmates, which are

then computer-matched against lists

of SSI recipients to determine whose

SSI payments should be suspended.

From March 1996 through March

1997, reports furnished by local sheriffs in the Huma-Thibodaux area

saved $49,000, a substantial amount

from one jurisdiction. 

Beginning in March 1997, jails

and prisons can now receive incentive payments for timely reporting —

$400 for reports made to Social

Security within 30 days of confinement and $200 for reports made

after 30 days but within 90 days of

confinement. 

Because of limited staffing and

resources, not all jurisdictions

throughout the U.S. have been able

to supply Social Security with the

information it needs. The incentive

payments help offset some of the

data collection costs incurred by

smaller law enforcement offices and

encourage other law enforcement

officers to jump on the bandwagon.

In Louisiana, sheriffs mail their

inmate lists to the Huma Social

Security office where staffers monitor them to see which inmates have

been incarcerated for more than 30

days. Since April, the sheriffs began

sending shorter, narrowed-down lists

that help Social Security reduce the

time required to locate people

whose checks need to be stopped.

Through the efforts of Louisiana

sheriffs, and increased participation

of other law enforcement officers

nationwide, the collection of inmate

data is helping save taxpayer dollars

and ensuring that SSI payments are

made only to eligible individuals. In

all, it’s one more step in Social

Security’s effort to provide world

class service.

WHAT , S NEW
MANY COMPANY

PENSIONS 

LACK THIS FEATURE

Social Security is portable.

If you change jobs, you’ll never

lose your Social Security coverage. You earn it — and you

keep it — when you and your

employer pay Social Security

taxes on your earnings. This is

not the case with many company pensions. When you change

jobs, you’ll get back any money

you contributed to the pension

fund. But, depending on the

terms of the company pension

contract, you may never realize

any benefit from the money

your company paid on your

behalf. 

When you’re working and

paying into Social Security,

you’re building valuable Social

Security coverage that protects

you and your family now and in

the future. For example, if you

become severely disabled and

unable to work, you and your

dependents may be eligible for

monthly Social Security benefits. You’re also building your

retirement coverage. And,

when you die, your family

could be eligible for survivors

benefits.

Social Security may be only

part of your financial future,

but it’s an important part that

stays with you if you change

jobs. 

SOCIAL SECURITY

STILL PAYS DEATH

PAYMENT

When a person who has

earned enough Social Security

credits dies, Social Security pays

a $255 one-time payment to the

spouse. Only the person’s widow

or widower or minor children

who meet certain requirements

can receive this payment. To be

eligible, the widow or widower

must have been living in the

same household as the deceased

when he or she died. If there is

no eligible surviving spouse, the

payment can be made to any

children of the deceased worker

who were entitled to, or eligible

for, benefits on the person’s

earnings record. A divorced

spouse is not eligible for this 

special payment. The $255 

payment does not affect the

widow(er)’s eligibility for

monthly survivors benefits based

on the deceased spouse’s

record.

FREEDOM OF

INFORMATION 

ON THE NET

In March, Social Security

became one of the first federal

agencies to develop an Internet

home page for the Freedom of

Information Act (FOIA) activities. The new home page gives

the public access to FOIA information including instructions,

policy and procedures as well as

a guide on how to make FOIA

requests. The information 

provided at the site is based on

data most frequently requested

by the public.

The following information

may be requested through the

new FOIA home page:

• policy statements and Social

Security manuals and instructions;

• final opinions from adjudicating administrative cases;

and

• an index of Social Security’s

administrative staff manuals

and instructions.

To access the FOIA home

page, go to:

http://www.ssa.gov

The new web site will be

updated on a ongoing basis.

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Social Security Today is published

bimonthly to keep readers up to date on

important information about the

Retirement, Survivors and Disability

Insurance programs, Supplemental Security

Income and Medicare. Permission is given

to reprint articles, pictures and information.

We would appreciate crediting the Social

Security Administration as the source.

Please direct correspondence to Editor, 

Social Security Today, 4-J-10 West High

Rise, 6401 Security Boulevard, Baltimore,

MD 21235 or send e:mail to 

RichardW.Schwartz@ssa.gov. Social 

Security Today is also available on the

Internet at www.ssa.gov.

FOR MORE INFORMATION

If you’d like more 

information about any of

the items in Social Security

Today, there’s an easy way 

to find out more. Just call

Social Security at 1-800-772-

1213 weekdays between 

7 a.m. and 7 p.m. To make

sure you get through as fast

as possible, call early in the

day. Other good times to

call are later in the week

and later in the month. If

you have access to the

Internet, you can also get a

variety of information about

Social Security programs at

www.ssa.gov.

KEEP IN MIND
ACCESS VS. PRIVACY

Should information be provided

online?

What do Social Security’s customers think about retrieving their

Personal Earnings and Benefit

Estimate Statement (PEBES)

through the Internet?

This became an important question for the

Agency this spring and

summer. 

Our customers gave us

their answers loud and

clear. In general, they

applauded use of the

Internet to give people

access to their own 

personal information in

Social Security records.

But they also said we

needed to do more to

ensure confidentiality

— to make sure 

the information

goes to the right

person. 

Accordingly,

Acting

Commissioner

John J.

Callahan

announced on

September 4 that

the Agency will 

provide a new, online

version of the PEBES

to Internet users by

the end of 1997

using important

security authentication features,

namely: 

• People will have the choice of whether

or not they want their personal information available to them on the Internet.

To “unlock” their information, they will

need to tell Social Security. 

• The information

in their 

statements will be benefit estimates only. 

Online statements will not include their

earnings histories, which many people

consider sensitive. But people will be

able to get the full PEBES statement,

including their earnings information, 

if they request that the statement be

mailed to them. 

• Only those members of the public

with registered e-mail accounts will 

participate. Social Security will e-mail

them an activation code, which users

will send back to Social Security as 

part of the personal authentication 

procedure. 

“We believe

these additional

features provide

sufficient protection of individual privacy to

justify offering a PEBES 

service once

again on the

Internet,”

Dr. Callahan

said. 

The

PEBES

offers an

important

service to the

public by providing wage and

benefit information that

workers and their families can use

in financial planning. The full

statement provides a year-byyear listing of the worker’s

earnings; the estimated

amount of Social Security

taxes paid; and estimates of

retirement, disability and

survivor benefits payable. 

Volume 2, Number 2 An official publication of the Social Security Administration September / October 1997

SOCIAL SECURITY

TODAY

WELFARE REFORM UPDATE 

A new law now expands

Supplemental Security Income (SSI)

eligibility for many noncitizens. The

Balanced Budget Act of 1997, signed by

President Clinton on August 6, 1997

provides relief to noncitizens in the SSI

program who were affected by 1996

welfare reform legislation. Under this

new law, legal immigrants who were

receiving SSI as of August 22, 1996 will

remain eligible for SSI as long as they

continue to meet all the other eligibility requirements. Also, more categories

of noncitizens are now eligible for SSI,

and the length of time certain noncitizens can receive SSI has been extended. The noncitizen provisions of the

Balanced Budget Act are retroactive to

August 22, 1996, the enactment date of

the welfare reform legislation. A brief

summary of the noncitizen provisions

follows. 

EXTENDED ELIGIBILITY PERIOD

Refugees, asylees and individuals

whose deportation has been withheld

can be eligible for SSI payments for up

to seven years. Previously, the time limit

was five years. The extended eligibility

period gives individuals more time to

meet their citizenship requirements.

NEW ELIGIBILITY CATEGORIES

• Certain legal immigrants who were in

the United States on August 22, 1996,

but not receiving SSI, and who are

blind or disabled under Social

Security’s rules are eligible for SSI,

regardless of their age or the date

their disability or blindness began. 

• Certain Cuban or Haitian entrants

are eligible for SSI for up to seven

years after the date their entrant 

status was granted.

• Certain Amerasian entrants are 

eligible for SSI for up to seven years

from the date of their admission to

the U.S.

• Certain American Indians who are

born outside the U.S., or who are

members of federally recognized

Indian tribes can be eligible for SSI. 

In late August, Social Security sent

“good news” notices to approximately

570,000 SSI recipients whose eligibility

will continue. More information about

the noncitizen provisions of the new law

is available at local Social Security offices.
MEET A 

BENEFICIARY

BECKI STRIVES FOR SUCCESS

We all have hopes and dreams. Becki

Rohyans wanted to attend college, not

something terribly out of the ordinary for

many high school students, but for a Downs

syndrome child, seemingly impossible. And

yet at 22, Becki now attends Carroll College

in Helena, Montana and is actually running

out of classes to take.

Becki is one of about 700,000 disabled

adult children who get Social Security 

benefits. In all, payments amount to about

$300 million monthly.

After graduating from Capital High

School in Helena, the next natural step was

college. As one of her counselors put it,

“We’ve always allowed Becki to make the

choices in the small things. And now it was

time to let her make a major choice.”

Before Becki graduated from high

school, she received a grant from the

Mental and Advisory Council of Montana

that included money to make a video 

documenting her achievements. That video

helped Becki land a spot at Carroll College

auditing classes. She’s also completed a 

second video documenting her life in

college.

At Carroll College, Becki has

studied theater and acting, something

she’s very fond of, adolescent and

child psychology, music and personal

wellness. While she’ll never be a biologist or physicist, college allows her

the opportunity for academic growth and

stimulation as well as the opportunity to

form personal and social relationships. 

Beside auditing one or two classes a

semester, Becki also holds down two parttime jobs. One is at a law firm where she

does a variety of light tasks and according

to her employer fits very well into the social

aspects of the company. Another is at a day

care center where she works in the kitchen

and dining areas and gets everyone ready to

leave when the day’s over. Since Becki cannot read or write she uses a picture schedule to keep track of her busy days. Her jobs

allow her the opportunity for continued

growth and development as an individual,

gaining confidence in her abilities. She

knows she’s making a positive contribution.

And she’s making her hopes and

dreams come true.

Becki is the first person with Downs syndrome in Montana to attend college. But it

certainly isn’t her only accomplishment. In

1994, she received a Yes I Can Award presented by the Foundation for Exceptional

Children in Denver, Colorado. It was one of

only 35 such awards given in the U.S. and

Canada. She also competes regularly in the

Special Olympics where she consistently

takes the blue ribbon in the fast walking

competition. 

Becki was adopted by the Rohyans

when she was four months old. At the 

time she was receiving SSI payments and

continued to receive them as part of her

adoption agreement. Becki is severely 

disabled with Downs syndrome, a genetic

condition that affects her mental and 

physical abilities. She also has a chronic

heart problem. “The doctors at the adoption agency thought nature would take its

course, and they didn’t even tell us that she

had a hole in her heart big enough to drive

a truck through,” says Becki’s mom, Jill

Rohyans. “But we decided on a more

aggressive approach. After spending several

months in the hospital as a baby, Becki has

never been back, although she continues to

take oxygen to supplement her breathing

to this day. We could never have done it

without Becki’s Medicaid.” 

When Ken Rohyans, Becki’s adopted

dad retired, her benefits were switched to

Social Security disabled child payments.

And when she reached 18, they were

changed to Disabled Adult Child benefits.

As a Social Security beneficiary, Becki’s hospital and doctor expenses are now covered

by Medicare. 

Becki’s goals for the future? She’s looking forward to moving out on her own. But

finding the right housing situation is taking

time. She needs help with medication and

someone to prepare her meals. But in time

it will come, because Becki has a way of setting goals and making them happen. 

As Becki’s sister Amy put it, “Becki has

come so far, from a little child who wasn’t

supposed to make it, to a grown

woman who is experiencing life to the

fullest degree.”
COMMISSIONER’S

MESSAGE

I am pleased 

to let you know

that Social

Security received

one of the highest

ratings ever — 85

percent —- in our

annual customer

satisfaction survey. 

The survey confirms that Social

Security and its

employees are meeting the expectations of

our 51 million beneficiaries and 145 million

workers paying into the system. Our 65,000

employees are among the best in government and take their commitment to public

service seriously.

Customer satisfaction survey results also

show — 

• courtesy rates were high, ranging from

84 percent for field office representatives

to 87 percent for 800-number representatives; 

• ratings of staff knowledge, helpfulness

and clarity of information provided were

more than 80 percent; 

• 82 percent of those surveyed were satisfied with written communications; and 

• the majority of customers —- 61 percent

— rated Social Security service as better

or much better than that of other federal,

state and local government agencies. 

In November 1996, three thousand 

customers were surveyed. Customers 

sampled for the survey were selected

because they applied for benefits, received

a decision on a claim or an appeal, received

a notice that their payment status changed,

or reported a new address or other change

in personal information. The survey questionnaire —- with a response rate of 78 

percent — included contacts made through

the mail, our toll-free telephone number 

or field office visits or calls. 

Since 1984, the customer satisfaction 

survey has been our barometer of customer

satisfaction. Results are reported to 

congressional oversight agencies, as well as

to the general public and are used to assess

customer preferences in planning for the

future. This year’s results were up from a 

79 percent satisfaction rate in 1976.

Last year, Dalbar, Inc., a Boston financial

services company, rated Social Security 

number one in providing the best telephone 

service in the country.

The work that our employees do every 

day directly contributes to such a positive

image. These results show that our efforts 

do pay off and that the service we are 

providing is truly world class.

DIVORCED SPOUSES MAY

BE ELIGIBLE FOR SOCIAL

SECURITY 

Perhaps you know someone who

fits this description: age 62 or older,

divorced, marriage lasted at least 

10 years, presently unmarried. That

person could be eligible for Social

Security benefits even though the 

ex-spouse is still working and even if

the ex-spouse has remarried.

If the ex-spouse has not applied

for benefits, but can qualify for them

and is 62 or older, the divorced

spouse can receive benefits on the

ex-spouse’s Social Security earnings

record provided that they have been

divorced for at least two years and

meet the requirements listed above.

And, contrary to some beliefs,

the amount a divorced person

receives doesn’t affect the amount of

benefits another spouse receives on

that record.

If the ex-spouse is deceased, 

the divorced spouse may be able to

receive benefits even if their marriage

did not last for 10 years. That is 

possible if the divorced spouse is 

caring their natural or legally adopted child who is under age 16 or 

disabled. And the benefits will 

continue until the child reaches age

16 or the child’s disability ceases.

Also, if the ex-spouse is deceased,

the divorced spouse can begin receiving Social Security benefits at age 60.

It’s important to know that many

women can get higher benefits based

on their ex-husband’s work record

than they can get on their own record.

If you know a divorced person

who is 62 or older and may be entitled

to Social Security benefits as an exspouse, encourage them to apply for

benefits. The person will need to

know the ex-spouse’s Social Security

number, or provide his or her date

and place of birth and parents’ names.

To find out if he or she can

receive Social Security benefits as an

ex-spouse, the person should call

Social Security at 1-800-772-1213,

business days, between 7 a.m. and 

7 p.m. to speak to a service rep.

WHAT’S NEW ON FAX 

Do you know what to do when

someone misuses your Social Security

number? If you answered no, you 

can find out easily from the one of

the newest additions to Social Security

fax catalog. The July 1997 factsheet,

When Someone Misuses Your Social

Security Number, was recently added 

to Social Security’s fax catalog. The

catalog has about 200 pamphlets and

factsheets that are available by fax. 

To get the factsheet, call Social

Security’s fax line at 1-888-475-7000

from a touch-tone phone. A voice

menu will lead you through the steps

you need to follow. You do not have

to call from a fax machine, but you

will need to supply your fax number.

When requesting When Someone

Misues your Social Security Number ask

for document 109.

The 1997 factsheet Government

Pension Offset, has also been added to

the fax catalog. Ask for document 102.

And if you want to find out how your

disability claim is reviewed, ask for

document 602, Reviewing Your

Disability.

Other recently updated documents available by fax are —

106 How Your Retirement Benefit is

Figured

108 Benefits for Children

155 The Definition of Disability for

Children

306 Social Security Retirement Planning:

What You Need to Know

307 When to Retire

312 Understanding the Role of the Social

Security Trust Funds

313 What You Should Know About

Social Security in Retirement

314 When Social Security Is for

Children

315 Social Security Changes Affect

Changing Roles of Women

316 Social Security as Life Insurance

Social Security’s fax line operates

24 hours a day. You can request up to

three documents each time you call. 

WHAT , S NEW

Kenneth S. Apfel recently became the

13th Commissioner of Social Security

and the first confirmed Commissioner

since SSA became an independent

agency in 1995. Prior to joining SSA, he

served as the Associate Director of the

White House Office of Management

and Budget and as the Assistant

Secretary for Management and Budget

at Health and Human Services. 
ATTORNEY’S FEES

MUST BE APPROVED

You have a right to choose 

an attorney or other qualified

person to represent you in most

Social Security matters. However,

you should also be aware of what

your attorney may charge. 

To charge you a fee for his 

or her services, your representative must first file either a fee

agreement or a fee petition 

with Social Security. Your 

representative cannot charge 

you more than the amount that is

approved. If either you or your

representative disagree with the

approved fee, you can ask Social

Security to review the information provided. 

If a representative charges 

or collects a fee without Social

Security’s approval, or charges or

collects too much, he or she may

be suspended or disqualified

from representing anyone before

Social Security. He or she may

also face criminal prosecution. 

For more information about

your right to representation, call

Social Security at 1-800-772-1213

and ask for the factsheet, 

Social Security: Your Right To

Representation, SSA Publication

No. 05-10075.

PARENTS’ BENEFITS

A parent’s worst fear is losing a

child. But what if that child 

is an adult who was supporting

the parents? What will they do?

Social Security could be the

answer. 

If you’re 62 or older and a

deceased son or daughter supported you, you may be eligible

for parents’ benefits from Social

Security. Here are some of the

requirements you need to meet

for parents’ benefits — 

• You must be 62 or older; 

• You must have been receiving at

least half of your support from

your child; 

• Your son or daughter must have

been fully insured with Social

Security; and 

• You have not remarried after

your child’s death. 

To qualify as a parent of your

deceased child, you must be

either- 

• the natural parent of the 

worker

• the stepparent of the worker by

a marriage before the worker

reached 16; or 

• a parent who legally adopted

the worker before his or her

16th birthday. 

For complete information

about survivors and parents’ 

benefits, call Social Security at 

1-800-772-1213 and ask for the

booklets, Social Security: Survivors

Benefits, and Social Security:

Understanding The Benefits. 

WORKING WITH 

THE JAYCEES

What do Social Security 

and the United States Junior

Chamber of Commerce have in

common? In 1995, the JAYCEES,

the largest organization in the

U.S., representing individuals 

25-39, questioned Social

Security’s future solvency and

whether young Americans knew

enough about the system. 

Since then, the Jaycees 

have been working with Social

Security to raise the public’s

understanding of Social Security

and seek positive solutions to

safeguard the long-term economic health of the nation’s 

old age, survivors and disability

insurance program. As part of

that effort, the JAYCEES have

conducted more than 200 town

hall meetings across the country.

The meetings give Social Security

reps an opportunity to explain

how the system works and discuss

alternative financing solutions for

the future. And it’s one more way

Social Security is providing worldclass service. JAYCEE President

Mike Marshall of Princeton,

Indiana, has been compiling the

input from the town hall meetings and plans to present the

findings to Congress sometime in

the future. 

A QUESTION FOR

NURSING HOMES 

Are your patients being overpaid? Some Supplemental

Security Income (SSI) recipients

in nursing homes or intermediate

or long-term care facilities are

getting money they’re not 

eligible to receive. Here’s why.

When Medicaid pays for over 50

percent of your SSI recipient’s

care, his or her monthly SSI payments are reduced to no more

than $30, since Medicaid will be

paying for your patient’s basic

needs instead of SSI. 

Benefits are reduced beginning with the first full month of

residence in your facility. If the

admission is not reported to

Social Security promptly —

Public Law 103-387 requires 

notification within two weeks of

admission — recipients may

receive more benefits than

they’re eligible for, causing an

overpayment. 

Social Security needs the 

following information as soon as

possible after your SSI patient is

admitted. 

• patient’s name and Social

Security number; 

• the name and address of your

facility; 

• the date of admission; and 

• who will be paying for the 

recipient’s care. 

Additionally, to help us decide

whether payments should continue in each situation, Social

Security would like to know if

your records contain a written

statement from the attending

physician indicating that your SSI

patient’s stay is expected to last

for 90 days or more. 

You can make your reports by

FAX, by phone or in writing to

your local Social Security office.

But be sure the report gets to us

no later than 14 days after your

patient’s admission. 

RETIREMEMT AGE

INCREASING

When Social Security was set

up in 1935, the age for retirement benefits was 65. But only

about half of those working actually lived long enough to collect

them. Today with vastly

improved conditions in the work

place and advances in health

care, Americans are living longer

than ever before. The average

male lives to 76, females about 2

years longer.

It’s no surprise then that

when it came time to ‘fix’ Social

Security, one of the changes legislated in 1983 was a gradual

increase in the age to collect full

retirement benefits. As the chart

shows, people born in 1938 are

the first to be affected. When the

increase is fully phased in, you’ll

have to be 67 for full retirement

benefits. 

Here’s the run down on retirement ages that could affect you. 

Year of birth Full retirement age 

1937 or earlier 65 

1938 65 and 2 months 

1939 65 and 4 months 

1940 65 and 6 months 

1941 65 and 10 months 

1943-1954 66 

1955 66 and 2 months 

1956 66 and 4 months 

1957 66 and 6 months 

1958 66 and 8 months 

1959 66 and 10 months 

1960 and later 67

Of course, you’ll still be able

to take early retirement benefits

when you reach 62. But the

amount will be reduced to take

into account the longer period of

time you’ll be receiving benefits. 

FIRST CLASS MAIL

POSTAGE AND FEES PAID

SOCIAL SECURITY ADMINISTRATION

PERMIT NO. G-11

SOCIAL SECURITY ADMINISTRATION

OFFICE OF COMMUNICATIONS

4-J-10 WEST HIGH RISE

BALTIMORE MD 21235

OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE, $300 FIRST CLASS

Social Security Administration

SSA Publication No. 05-10110

Social Security Today is published

bimonthly to keep readers up to date on important information about the Retirement,

Survivors and Disability Insurance programs,

Supplemental Security Income and Medicare.

Permission is given to reprint articles, pictures

and information. We would appreciate crediting the Social Security Administration as the

source. Please direct correspondence to Editor,

Social Security Today, 4-J-10 West High

Rise, 6401 Security Boulevard, Baltimore,

MD 21235 or send e:mail to

Richard.W.Schwartz@ssa.gov. Social

Security Today is also available on Internet

at www.ssa.gov. 

FOR MORE INFORMATION

If you’d like more information

about any of the items in Social

Security Today, there’s an easy way

to find out more. Just call Social

Security at 1-800-772-1213 weekdays between 7 a.m. and 7 p.m.

To make sure you get through as

fast as possible call early in the

day. Other good times to call are

later in the week and later in the

month. If you have access to the

Internet, you can also get a variety

of information about Social

Security programs at www.ssa.gov. 

KEEP IN MIND
CHANGES IN SOCIAL

SECURITY FOR 1997

Social Security and Supplemental

Security Income (SSI) beneficiaries

will receive a 2.9-percent cost-of-living increase for 1997. The increase

will first appear in the payments

Social Security beneficiaries receive

on January 3, 1997, and SSI recipients receive on December 31, 1996.

BENEFITS INCREASE

The average monthly Social

Security benefit for a retired worker

will increase from $724 before the

cost-of-living adjustment to $745 in

January 1997. The average monthly

benefit for a couple where both

spouses are receiving benefits will be

$1,256 in January 1997, compared

with $1,220 before the increase.

Average monthly disability benefits

will be $704 in January 1997, compared with $684 before the increase.

A young widow with two children

who received an average monthly

family payment of $1,436 before the

cost-of-living adjustment will receive

$1,478 in 1997.

The maximum federal SSI

monthly benefit for one person

will be $484 in January 1997, 

up from $470 in 1996. For a

couple, the maximum

monthly amount will

increase to $726 in

January 1997, up

from $705 a year

earlier. Because

some states add

money to the

federal benefit, total payment amounts

may vary from

one state to

another.

CHANGES BASED ON CONSUMER 

PRICE INDEX

The annual increase in both

Social Security and SSI benefits is

based on the rise in the Consumer

Price Index over a year’s time. Most

private pensions do not provide

automatic cost-of-living increases.

Other features that become effective January 1, 1997, based on

“automatic adjustment” provisions

in the law, are: 

– The Social Security “wage base” for 

1997 will be $65,400, up from 

$62,700 in 1996. The wage base is 

the maximum amount of earnings 

taxed for Social Security.

– The combined Social Security and 

Medicare tax rate will not change 

in 1997. For employees, it remains 

at 7.65 percent (6.2 percent for 

Social Security and 1.45 percent 

for Medicare).The tax rate for 

self-employed persons remains at 

15.3 percent (12.4 percent for 

Social Security and 2.9 percent for 

Medicare). 

– As in 1996, all wages and salaries 

will be subject to the Medicare 

portion of the Social Security tax—

1.45 percent for employees and 

2.9 percent for the self-employed. 

– The amount of earnings needed to 

earn one quarter of coverage, or a 

Social Security “credit,” will be $670

in 1997, up from $640 in 1996. No

more than four credits can be 

earned in a year. Thus, anyone 

earning at least $2,680 in 1997 will 

receive the maximum of four 

credits. To be eligible for Social 

Security benefits, a worker needs a 

specific number of credits. The 

number depends on his or her 

date of birth and the type of 

benefit involved. Most people need 

40 credits to be eligible for retirement benefits, but some younger 

people may qualify for disability 

benefits with as few as six credits.

– The maximum amount of money 

that beneficiaries between the ages 

of 65 and 69 can earn in 1997 

without reducing the amount of 

their Social Security benefits is 

$13,500. For every $3 a person 

earns over this limit, $1 is withheld

from his or her benefit. In 1996, 

the limit was $12,500.

– For people under age 65, the 

corresponding limit will be $8,640. 

For every $2 a person under age

65 earns

over this

amount,

$1 is

withheld

from

benefits.

– The benefits

of people aged 

70 or older who

continue to work are

not reduced, no matter how

much they earn.

MEDICARE PROGRAM 

INFORMATION

The hospital deductible and

premium to be paid by Medicare

beneficiaries are recalculated each

year to reflect changes in the cost of

health care or changes in Medicare

law. Following are the rates effective

January 1, 1997, as compared with

rates for 1996.

RATES 

Hospital Insurance (Part A) 1996 1997

For first 60 days in hospital/Hospital Insurance deductible $736 $760

For days 61-90 in hospital /Beneficiary pays per day 184 190

For days 91-150 in hospital/Beneficiary pays per day 368 380

For first 20 days of therapeutic care in a skilled-nursing facility 

following at least three consecutive days in the hospital, Medicare 

pays 100 percent of covered expenses

For days 21-100 in skilled-nursing facility/Beneficiary pays per day 92 95

Medical Insurance (Part B) 

Monthly premium 42.50 43.80

Volume 1, Number 3 

TODAY

An official publication of the Social Security Administration November/December 1996

SOCIAL SECURITY
MEET A 

BENEFICIARY

Joan Fountain

“If Social Security’s

door had been closed,

I do not know where I

would be right now,”

says Ms. Joan Fountain

of Sacramento, Calif.

Ms. Fountain today

is a business consultant

and motivational

speaker whose clients

include some of the

largest companies in

the United States. But

it was not always so.

A little more than

20 years ago, Joan

Fountain suffered from

addiction to foods and

other substances. At

the time, she weighed

420 lbs., was anxietyridden, and housebound. She felt trapped

by physical ailments

and deep despair. After

surviving a bout with

medical complications

due to morbid obesity,

she applied for Supplemental Security

Income (SSI) disability

benefits. 

She saw SSI not only

as an income support

program, but as an

avenue toward improving her life. “Under

the provisions of the

SSI program, I was

able to receive medical

care through the

Medicaid program and

also get into a state

vocational rehabilitation program. 

I got the support that I

needed, and that was

the beginning of the

turnaround in my life.”

Four years later, Ms.

Fountain had regained

her health and no

longer needed SSI.

She entered college

and earned a degree

from California State

University, becoming a

behavioral counselor. 

She is now a highly

sought-after motivational speaker and the

author of an inspirational book, Nothing

Bad Happens, Ever.

“I can honestly tell

you that the SSI program was a lifesaver for

me,” says Ms. Fountain.

“It is a program that

really impacts people’s

lives.”

PROFILE ON

WORLD-CLASS 

SERVICE

Faster service for

Tennessee residents

What happened

when employees from

the Social Security

Administration and the

state of Tennessee put

their heads together?

They created the

Tennessee Electronic

Access Project, resulting in faster service for

Tennessee residents. 

Critical data from

state files is often

required to process

claims for Social

Security benefits. Such

information includes

vital statistics, wage

information, and

motor vehicle and 

driver’s license registration. In the past, Social

Security obtained this

data through written

requests, telephone,

fax, or by having Social

Security employees go

to the state agency.

The Electronic Access

Project now provides

on-line access to this

data for use by Social

Security employees

throughout Tennessee. 

During the first year

of the project, Social

Security offices in

Tennessee made over

48,000 inquiries to the

state for data to process

claims. Besides making

the claims process

faster, the project is

saving thousands of

dollars for taxpayers.

According to Shirley S.

Chater, Commissioner

of Social Security, the

Tennessee project is a

model for other federal-state collaborations.

“It is also a part of our

ongoing efforts to provide world-class service

to the citizens of

Tennessee and the

nation,” she said.

The success of this

project has resulted in

similar data-exchange

initiatives in other

states. For the project,

the agencies received

the Hammer Award.

This coveted award is

given by the National

Performance Review 

to agencies that find

ways to make the 

federal government

less expensive and

more efficient. 

SSI is one of two disability programs administered by the Social

Security Administration.

It provides monthly

cash payments to aged,

blind, or disabled persons who don’t own much

or have a lot of income.

More than six million

people now receive SSI

payments, about five

million of them because

of disability.

In contrast, the

Social Security disability

program pays monthly

benefits to disabled

individuals based on

their work record.

Both programs use

the same strict criteria

for determining disability. This definition says

that a person must have

a physical or mental

problem that keeps them

from working, and that

is expected to last at

least a year, or to result

in death.

If you would like

more information about

the SSI disability program or about vocational rehabilitation under

SSI, you can call Social

Security’s toll-free number—1-800-772-1213—

between 7 a.m. and 7 p.m.

any business day.

SUPPLEMENTAL SECURITY INCOME
COMMISSIONER’S

MESSAGE

Should all or

part of the

money you contribute to Social

Security be invested in the private

market? The answer, and any resulting change to our current Social

Security system, will have a major

social and economic impact on all

Americans. It is an issue that has

received much attention in recent

months. But many questions remain.

Before considering any change, policy-makers need to carefully examine at least four major points.

First, the millions of Americans

who work hard and pay into the

Social Security system can rest

assured that their investment is

guaranteed. While the private 

market might, under some circumstances, benefit some investors, it

involves risk. Benefits could go

down. Many are not comfortable or

familiar with the ups and downs of

investing in the private market. 

Second, Social Security taxes pay

for more than just retirement benefits. Disability and survivor’s benefits, as well as Medicare coverage,

are also parts of the package of 

benefits paid by Social Security and

Medicare taxes. Whether one could

buy equivalent coverage on the

open market is an open question. 

Third, there are potentially 

significant costs associated with a

transition to a privatized system. If

the system were privatized, workers

would continue paying the same

amount of payroll taxes they now

pay, but, under one plan being 

considered, they would pay higher

income taxes for the next 75 years

to finance the move to a privatized

system. 

Lastly, the administrative and 

program costs of a privatized system

could be significantly greater than

the present system. Groups usually

cite the Chilean social security 

system as a model of privatization.

But Chilean workers typically pay 

25 percent or more for coverage

roughly equivalent to Social Security

and Medicare. In addition, their 

system spends up to 15 percent of

its revenues to cover administrative

costs. The Social Security

Administration runs a larger system

for less than one percent of revenues.

I have always encouraged full and

open discussion about the future of

Social Security. But discussion must

be based on a careful examination

of all the issues. As we examine various proposals, we must be prepared

to ask critical questions. Social

Security has remained this nation’s

most important domestic program

because change has occurred

through careful deliberation and

discussion. We need to ensure that

this continues.

SOCIAL SECURITY HELPS YOUR

FINANCIAL PLANNING

If you’re between age 52

and 56 and not already

thinking about retirement,

maybe you should be. At

least, you could be planning

your financial future so

you’ll be prepared when you

decide to quit work. You’ll

get help with your planning

sometime in the next few

months when Social Security

sends you a Personal Earnings

and Benefit Estimate Statement

(PEBES).

The Congress directed

Social Security to send a

PEBES to people who have

earned Social Security credits

and who are not currently

receiving Social Security 

benefits. The purpose is to

help them better understand

the value of Social Security

in their lives as they plan

their financial future. The

mailings began in 1995 to

people age 60 and older. In

1996, statements were sent 

to people age 57-59. In 1997,

they will go to people age 52-

56. Beginning October 1,

1999, every worker age 25

and older will receive a

PEBES each year. 

The PEBES provides valuable information:

– a year-by-year display of 

earnings your employers 

(or you, if self-employed)

have reported to Social 

Security. 

– an estimate of Social

Security benefits you and 

your family may be 

eligible to receive now 

and in the future.

PLAN TO RETIRE IN 1997?

CONTACT SOCIAL SECURITY NOW

If you’re age 62 or older

and planning on retiring any

time in 1997, you should

contact Social Security now.

Because you can work and

collect benefits at the same

time, it may be to your

advantage to have your benefits begin in January even

though you don’t plan to

retire until later in the year.

In some cases, the choice of

retirement month could

mean additional benefits for

you and your family. For

your benefit application to

be effective in January 1997,

you should file for benefits

any time before January 31,

1997.

For more information, or

to make an appointment to

discuss your plans, call Social

Security’s toll-free number, 

1-800-772-1213, any business

day between 7 a.m. and 7

p.m. The telephone lines are

busiest early in the week and

early in the month, so it’s

best to call at other times. 

BENEFITS TO DRUG ADDICTS AND

ALCOHOLICS WILL END

People who receive Social

Security and Supplemental

Security Income disability

benefits based on drug

addiction or alcoholism and

did not respond to a Social

Security notice earlier this

year, will have their cash 

benefits and health care 

coverage stopped effective

January 1, 1997. 

In June 1996, Social

Security notified over

200,000 drug addicts and

alcoholics about a new law

that prohibits the payment of

benefits to individuals whose

disability is based on drug

addiction or alcoholism. The

notices informed them of

their right to appeal Social

Security’s identification of

them as drug addicts or 

alcoholics within 60 days of

receipt of the letter.

For individuals who filed

an appeal, Social Security

reviewed their claims to see 

if they would be found disabled without considering

their addiction to drugs or

alcohol. Benefits will continue after December 1996 if

they are disabled on the basis

of a different impairment.

However, if disability was still

found to be based only on

drug addiction or alcoholism, monthly payments,

Medicare, and Medicaid coverage end January 1, 1997. 

People who missed the

deadline for appealing their

claim can still file an appeal.

However, they will have to

show there was a good reason

for not filing on time. If

Social Security decides that

the delay in filing was justified, the appeal will be

processed as if it had been

filed on time. But, if Social

Security decides there was

not a good reason for the

late appeal, the appeal will

not be processed. The individual may file a new claim

for benefits.

KEEP IN MIND

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WHEN YOU CALL,

WE ANSWER

One of the best measures

of service delivery is the performance of Social Security’s

national toll-free telephone

number, 1-800-772-1213.

Our goal for 1996 is to have

an 85 percent five-minute

access rate. That is, within

five minutes of calling our

800 number, 85 percent of

callers will get either an

automated service or an

agency representative.

To help achieve that goal,

we enhanced the telephone

automation system and

increased the capacity for

handling calls in several

offices. We also staffed and

trained a special unit to

handle calls. The result has

been that, since January, we

have achieved an 89.9 percent five-minute access rate.

Our access rate last year was

73.5 percent. 

PUBLISHER’S BOX

Social Security Today is

designed to provide timely

and relevant information

about the retirement, survivors, disability, and Supplemental Security Income programs, as well as important

Medicare information.

Each issue of Social

Security Today contains items

that should be of interest to

your constituency. Permission

to reprint articles, giving

credit to the Social Security

Administration, is granted.

We would appreciate your 

sending tearsheets when you

reprint this material. 

We welcome your comments and invite suggestions

for future editions. Please

direct your correspondence

to Editor, Social Security

Today, Room 4-J-10 West

High Rise, 6401 Security

Boulevard, Baltimore, MD

21235, or fax to 410-965-

3903 or send e-mail to

Margaret.D.Pagan@ssa.gov.

Social Security Today also is

available at the Social

Security Internet site,

http://www.ssa.gov.

Social Security has published three issues of Social Security Today,

which replaced the Social Security Courier. Please put an “X” 

on the line to let us know whether you wish to:

_____ remain on the mailing list.

_____ be removed from the mailing list.

If no response, your address will be removed from our mailing list, and 

you will not receive further issues of Social Security Today.

Five-digit number on your mailing label:____________________________

Name__________________________________________________________

Organization____________________________________________________

Address________________________________________________________

City________________________ State_____________ Zip______________

Please complete and send to Social Security Today, P.O. Box 17743,

Baltimore, MD 21223 or fax to 410-965-0696. 

Shirley S. Chater 

Commissioner of 

Social Security
WHAT EVERY WOMAN

SHOULD KNOW

What every woman should

know she can learn from a new

booklet. Whether a woman

works, has worked, or has never

worked outside the home, it is

important that she know exactly

what Social Security coverage

means to her. She should also

know about Social Security 

coverage for anyone she may

hire as a household worker or

provider of child care. She

needs to know that if she

receives a pension for work not

covered by Social Security, 

her Social Security benefits

could be affected. To order 

Social Security: What Every Woman

Should Know, call 1-800-772-1213.

This booklet is also available on

the Internet server at

http://www.ssa.gov.

FIRST CLASS MAIL

POSTAGE AND FEES PAID

SOCIAL SECURITY ADMINISTRATION

PERMIT NO. G-11

SOCIAL SECURITY ADMINISTRATION

OFFICE OF COMMUNICATIONS

4-J-10 WEST HIGH RISE

BALTIMORE MD 21235

OFFICIAL BUSINESS

PENALTY FOR PRIVATE USE, $300

FIRST CLASS

WHAT , S NEW

Social Security Administration

SSA Publication No. 05-10110

NOTICES TO CHILDREN

If you receive Supplemental

Security Income (SSI) payments

for a child with a disability, Social

Security will notify you about an

upcoming review of the child’s

case. The notice will explain a

recent law which established a

new definition of disability for

children. Under the new definition, children must have more

serious physical and mental limitations to qualify for SSI. The law

also requires that Social Security

review the cases of certain children who are now eligible for SSI

to see if they are disabled under

the new definition.

Over a two-month period

starting in early November, more

than 300,000 notices will be

mailed to representative payees

of children with disabilities.

Contact your local Social Security

office for more information

about the disability review.

JUST THE FAX

You can now request over 165

Social Security informational documents through a new service,

Fax Catalog. These documents

include:

– fact sheets about specialized 

aspects of the Social Security

program,

– foreign language documents, 

– talking points on subjects of 

current interest, and

– research tables and actuarial 

reports. 

Fax Catalog is easy to use. Call

1-888-475-7000 and a voice menu

will lead you through the simple

steps needed to receive the documents you need. When you call,

you should have at hand the telephone number of a fax machine

to which you want the documents

sent. You can request up to three

documents with each phone call. 

MARRIED? 

To find out whether a child

beneficiary has tied the knot,

Social Security mailed forms 

popping the question to their

representative payees. Since children who marry cannot receive

benefits on the record of their

parent or guardian, the Agency 

is recontacting payees to prevent

overpayments to the child. Forms

are being mailed to over one million payees of children between

ages 15 and 17. If you receive

benefits for a child, please

complete and return the form

promptly.

MORE DISABILITY CASES TO BE

REVIEWED

If you receive Social Security

and/or Supplemental Security

Income disability benefits, Social

Security regularly looks at your

case to verify that you are still 

disabled. These continuing 

disability reviews ensure that only

people with disabilities remain

on the rolls.

More funding from Congress

and a streamlined review

process will let Social Security

increase the number of continuing 

disability reviews in 1997. A

recent law changed the 

definition of disability for

children receiving

Supplemental Security

Income. Social Security 

will use the new definition

when reviewing the cases

of childhood disability

recipients. More

information about

continuing disability reviews is available from your

local Social

FAST FACT

Social Security’s administrative

budget is less than one percent of

the revenues it brings in each year.

FAST FACT

You can get an application for food stamps 

at your local 

Social

Security 

office.