THEY LOVE IT 

IN PEORIA

Take your average lunchtime

crowd. Usually, they don’t expect to

learn much about Social Security while

munching on their midday calories.

But such is not necessarily the case at

Court House Plaza in Peoria, Ill., when

a mime starts aping eaters. After drawing bystanders’ attention, she invites

them to listen in as two employees of

fictitious Al’s fast food restaurant begin

complaining about Social Security

taxes and end up discussing the benefits those taxes provide. 

The short drama is performed by

employees in Social Security’s Peoria

office to educate the public about the

important part Social Security plays in

the life of just about everyone in the

country. 

And their audiences find it’s a

unique and enjoyable way to get 

information about Social Security. 

"I learned not to complain about those

taxes because it does some good in the

long run," says Brian McDonald, one

of the lunchtime viewers. "The federal

program is a safety net for me and millions of Americans."

"It gave me a lot to think about,"

said Steve Weckel, another member of

the audience. "Social Security has far

greater meaning for me now. I’m glad

to know that Social Security not only

will help me through retirement, but

also will help those who fall onto bad

times."

Peoria’s Social Security Players are

a group of Social Security claims reps

and a field rep turned thespians for

the lunchtime drama. One member 

of the troupe, Amie Churchill, plays

the mime who initially attracts unsuspecting audiences. 

In the skit, Charles Killen learns

from Deanna Casey why he has to pay

a percentage of his paycheck into the

program and how the money benefits

himself and others. He learns that, as

he works and pays Social Security taxes,

he builds up credits that count toward

eligibility for future Social Security

retirement benefits, as well as current

protection with disability and survivors

benefits. Deana tells Charles that for

more than 60 years, Social Security has

been the most successful domestic government program providing economic

protection for Americans of all ages. 

When the skit is over, Field Rep 

Ed Slininger leaps out of the audience

to hand out Social Security pamphlets

and answer any questions. "We’re 

trying to get people to understand 

the Social Security program of today,

so they can make informed choices

about the Social Security program of

tomorrow," he says. 

Besides the restaurant skit, Peoria’s

Social Security Players perform two

other five-minute dramas. In one, the

audience is invited to listen in on a

father-daughter talk; in the other, to a

lunchtime chat between three friends

who discuss current benefits and 

proposals to change the program.

"We have to accept the responsibility that it is our job to educate the 

public," says Ed. "By taking our act to

the public during lunchtime, we can

provide them with some real food for

thought."

SOCIAL SECURITY

Volume 3, Number 7

TODAY

An official publication of the Social Security Administration January / February 1999

Photo: Fred Zwicky, Peoria Journal Star
MORE SOCIAL SECURITY MYTHS

DEBUNKED

Last year we published three of the top

myths going around about Social Security.

Here are some more, again, along with the

reasons they are just that – myths. 

Myth #4 "As a personal investment plan, Social

Security is a raw deal!"

Social Security isn’t really about deals

and personal investment schemes. The

word "social" in Social Security means 

that social objectives, such as raising the

standard of living for lower income workers

and keeping the

elderly out of

poverty, are

important 

elements of

Social

Security.

One of the reasons Social Security has

remained popular is because it combines

these social goals with a degree of individual equity. The benefit you get is based on

the money you pay in ... in effect, the more

you pay in, the higher your benefit. 

As one example, a baby boomer born

in 1949 who has average wages will pay

about $58,000 in Social Security taxes

before retirement. He or she will collect

$1,900 per month beginning at age 66 and

will recover all taxes paid in about 30

months. Factoring in interest that could

have been earned on the taxes paid, the

"investment" is recovered in about 13 years,

with a life expectancy of two to four years

beyond that point.

Myth #5 "My Social Security benefit is based on

my last five years of work ... or is it my highest

three?"

It’s neither. Benefits are based on earnings averaged over most of a worker’s lifetime. For all recent and future retirees, it’s

based on 35 years. Generally, fewer years

are used in disability and survivors computations.

Myth #6 "Social Security funds are

nothing but worthless IOUs!"

By law, all Social

Security money is

invested in treasury bonds, similar

to bonds purchased by millions

of other investors.

People who hold treasury bonds in their

portfolios generally

consider them

among the safest of their

investments. It’s odd that some

people consider similar bonds

held by Social Security "worthless."

It is true that, when Social Security

has to redeem the bulk of its bond holdings in the next century to help meet anticipated expenses, the government will have

to somehow raise the money to make good 

on its obligations to the trust funds. 

Myth #7 "Social Security would have no financial problems if Congress had kept its hands off

the trust funds and not spent Social Security

money for other purposes!"

This myth grows out of a misunderstanding of the trust fund investment procedures. Because Social Security reserves are

invested in treasury bonds, we are, in effect,

loaning money to the government ... just as

any other investor who buys treasury bonds

is loaning money to the government.

So, Social Security money is used for

other purposes. But that money has always

been paid back, with interest: $38 billion in

1996 alone.

In fact, bonds are purchased and

redeemed continually. Every day, Social

Security tax receipts come into the Treasury

and are immediately invested in government securities. And each month, the

Treasury Department redeems enough

bonds to cover the Social Security benefits

that must be paid that month. The remaining money stays in the trust funds and 

continues to earn interest.

ADVICE FOR TAX TIME 

Before you fill out that tax return, here

are a few things you might want to keep in

mind if you’re receiving Social Security 

benefits. Couples whose combined income

is between $32,000 and $44,000, and individuals with incomes between $25,000 and

$34,000, may have to pay federal income

tax on up to 50 percent of their Social

Security benefits. Couples whose combined

income exceeds $44,000, and individuals

whose income is over $34,000, may have to

pay taxes on up to 85 percent of their benefits. For those whose income is below these

levels, Social Security benefits are not taxed.

For tax purposes, income is defined as

the couple’s or individual’s adjusted gross

income as reported on Form 1040, plus 

one half of the total Social Security benefits

received for the year, plus nontaxable 

interest.

COMMISSIONER’S MESSAGE

Kenneth S. Apfel

Commissioner 

of Social Security 

Late last year,

President Clinton

convened the

first ever White

House Conference on Social

Security to bring

together people

from all walks of life to discuss how to

strengthen and protect Social Security for

future generations of Americans. I can think

of no more critical issue facing this nation,

and there is no better time than now to

strengthen Social Security.

Today, Social Security is not in crisis.

But we can’t wait to make the changes we

need to keep Social Security strong into the

21st century. Demographics will place very

real strains on our retirement system. By

2030, there will be twice as many older

Americans as there are today.

At the present time, our financing is

sound. But, the size of the financing gap will

double if we delay for a generation. We can

have modest change now, or much more

drastic changes if we wait.

I believe this is one of those defining

moments for the country. Do we use the

current budget surpluses for tax cuts, for

spending increases or for strengthening

Social Security? How much of the surpluses

would be needed to strengthen Social

Security? Draining the surpluses away 

before we answer those questions would 

be absolutely wrong.

There are difficult issues to talk

through. One central question in the

debate is whether we should return to a

purely pay-as-you-go system or advance 

fund more of the system in order to

increase national savings. And if a partial

advance funding option is pursued, should

Social Security invest a portion of growing

trust fund reserves in equities, or should

advance funding be done through individual savings accounts? And how can the 

surpluses help in this endeavor?

The center of any debate on advance

funding is whether government has the

capacity and the will to set resources aside

to meet future liabilities and to resist the

temptation to use the fund for tax cuts or

new spending programs.

Another central question is how to

ensure that the social responsibility aspects

of the program remain strong. It is especially important to those who have not had

high earnings or good health during their

lifetimes or who have little in the way of

pensions or savings. Income adequacy is at

the core – the very heart – of the program.

Everyone benefits from a system that keeps

millions of people out of poverty and 

provides protection for each individual

worker. We need to assure that the progressive features of our social insurance system

remain strong.

These are very big, very difficult and

very important issues. It’s fair to say that I

have not heard a consensus among the

American people about how to protect and

strengthen Social Security. That is, in fact,

the challenge that we must now turn to. It

will take courage to address an issue that

seems so far away. If we all work together,

with common purpose and determination,

we can ensure that our country has a social

insurance system for ourselves, our children

and our grandchildren that is as reliable,

universal, progressive and equitable as the

current system has been for our parents and

grandparents. Social Security is – and must

continue to be – very much a part of the

nation’s social fabric. 
LEGISLATION RESTORES SSI 

ELIGIBILITY TO NONQUALIFIED

NONCITIZENS

About 8,800 ‘nonqualified’ aliens 

who were receiving Supplemental

Security Income (SSI) when welfare

reform legislation went into effect will

remain eligible for benefits as a result 

of new legislation. The law clarifying 

benefits for noncitizens, extends the

eligibility of all ‘nonqualified’ aliens 

who were receiving SSI on August 22,

1996, indefinitely. 

SSI recipients classified as ‘nonqualified’ are individuals whose SSI records

show they do not meet oneof the alien

eligibility categories and whose SSI was

previously scheduled to end on October

1, 1998.

Social Security recently notified those

affected that their SSI payments will continue as long as they meet all eligibility

factors. Copies of the notices also were

sent to representative payees and authorized representatives. Nonqualified aliens

are reminded to let Social Security know

if their immigration status changes or if

they become naturalized U.S. citizens. 

MEET A 

BENEFICIARY

STILL GOING AFTER ALL THESE YEARS

Age is nothing but a number. How

many times have you heard this? However,

when you’re 105 years old, age is much

more. It’s about what you’ve done, the life

experiences you’ve built up along the way

and the energy you put into everything 

you do. 

Take Walter Beerman, a real estate 

broker and investor in Lakeland, Fla.

Despite the fact that he is 105, he still works

40 hours a week, is still married to Mildred,

his wife of 63 years, is still active in his

church and still drives himself around in a

Lincoln Town Car. His company, Beerman

Realty, has become a landmark in the

Lakeland area, and he is believed by many

to be America’s oldest worker.

He actually entered real estate by 

accident. During the 1930s, he owned a

coal business in Kentucky. Walter cashed

out of coal and moved to Sarasota, Fla., 

in 1950 where he planned to settle in for

retirement. 

"But," says Walter, "it wasn’t for me. It

was boring. All I did was watch television,

fish and play golf." He returned to work 

24 months later. This time, he chose real

estate because he wanted to get involved in

a business with potential for growth.

Fortunately, the ensuing years proved to be

a windfall, and he sold his second business

in 1966 to move to Lakeland. In Lakeland,

Walter went into real estate again, this time

with his son, Dave, who at 79, still works

with him. 

Walter started collecting Social Security

benefits in 1958 at age 65. But, because he

works, he still pays Social Security taxes,

too. And, as with anyone 70 and over, there

is no limit on the amount he can make and

still receive his full Social Security benefits. 

Walter describes the secret to his long

life. "Realize what you are and who you are.

Eat right. Live right. Think right. Negativism

will ruin your life. Also, life is so much

more enjoyable when you have good

friends and family."

Walter has watched the importance 

of Social Security grow during his lifetime.

According to him, Social Security has been

vital to older Americans because it provides

financial protection. He points out that

many elderly people lived in extreme

poverty before Social Security, especially

during the depression. 

He says, "Social Security is a wonderful

thing. It’s important to those who need 

it, and it’s important to me, too, because 

I know it’s doing its job."

In the past year, Walter has been a

guest on NBC’s "Tonight Show." He was

such a hit that host Jay Leno invited him

back for a return visit. Walter is now 105,

but his frank manner, energetic lifestyle

and keen intellect could easily mark him as

a man half his age.

For young people his advice is, "Have a

goal and stick to it. Be honest in everything

you do. Get on the right road and don’t let

anyone get you off track."

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 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.
SSA DOT GOV IS GROWING

EVERY DAY

Want to check out one of the

hottest sites on the Internet? Then

the next time you’re surfing the

web, go to www.ssa.gov, Social

Security’s official home page in

cyberspace. Usage has more than

doubled since summer, with more

than 11 million ‘hits’ per month.

And Social Security is keeping

equipment up to date so that your

hang time is at a minimum.

The most popular Social

Security addresses are: 

Laws and Regulations, which

includes The Social Security

Handbook; 

the forms page, with the

Request for a Personal Earnings

and Benefit Estimate Statement

and the Request for a Social

Security Number; 

the history page, an online trip

through Social Security’s past;

the electronics publications

page, with over 100 online

publications;

How to interpret your PEBES

response – 33 million Personal

Earnings and Benefit Estimate

Statements were mailed

last year, and 

the employer’s information 

page.

Other popular Social Security

addresses include the Year 2000

page and the Kid’s Pages. To find

a specific item, click on the site

map and choose from about 70

entries. Information is updated

daily.

FOR ALL THE FACTS ON 

DIRECT DEPOSIT

If you’re still receiving your

Social Security or Supplemental

Security Income benefits the old

way, by paper check that is, you

might want to consider signing up

for direct deposit. And the best

way to get all the facts is with the

new Social Security factsheet,

Receive Your Benefits by Direct Deposit.

It supplies the basic information

you’ll need if you’re thinking

about signing up. You can get a

copy by calling Social Security at 

1-800-772-1213.

Another good way of getting

the new factsheet on direct deposit

is through Social Security’s Fax

Line, 1-888-475-7000. Ask for document 114. You might also want a

copy of the new benefit rates for

1999. Ask for document 100, Social

Security Update – 1999.

When you call the Social

Security Fax Line, you can request

up to three documents at a time.

Social Security’s Fax Line

operates 24 hours a

day. 

You don’t need to call from a fax

machine, but you will need to know

your fax machine number when

you call. For a complete list of all

the documents available, ask for

the catalog, document number 0.

TAX WITHHOLDING CAN BE

AUTOMATIC 

If you are one of the eight million people who pay taxes on your

Social Security benefits, you know

what a bother it can be to make

estimated tax payments every quarter. But you may not know that

you can now have your taxes withheld from your payments automatically, thanks to a new service

offered jointly by Social Security

and the Internal Revenue Service. 

To take advantage of this feature, complete IRS Form W-4V,

Voluntary Withholding Request.

Select the percentage of your

monthly benefit you want withheld-- 7, 15, 28 or 31 percent. Only

these percentages can be used;

amounts in dollars are not acceptable. After you’ve made your selection, sign and return the form to

your local Social Security office

either by mail or in person. 

Remember, you are responsible for stating what percentage

you want withheld from your

monthly payment amount. If you

want to know how much a particular percentage is equal to in 

dollars, call Social Security.

However, if you have questions

about your tax liability, call IRS, 

1-800-829-1040.

Each time you want to change

or stop a withholding, complete a new W-4V and send it

directly to Social Security.

If your benefits stop for some

reason, your withholding also

will stop and will not start

again until you complete a

new 

W-4V. If your benefits are temporarily suspended or deferred,

your request will be held and

honored once benefits resume. 

To get a Voluntary Withholding

Request, Form W-4V, call IRS tollfree, at 1-800-829-3676. Your local

Social Security office does not

have these forms. However, the

forms are available on the

Internet, at www.ssa.gov.

Keep in mind, automatic withholdings are totally voluntary. If

you prefer, you can continue paying your taxes quarterly, without

making any changes.

If you have any questions

about voluntary tax withholding,

contact your local Social Security

office or call 1-800-772-1213.

MEDICARE SIGN-UP ENDS

MARCH 31

If you’re eligible for Medicare

Part B (Medical Insurance) but

haven't signed up, you can do so

now, during the General

Enrollment Period, which runs

through March 31. 

Beneficiaries with or without

Medicare Part A (Hospital

Insurance) who originally decided

not to sign up for Part B when

they first became eligible, as well

as those who had Part B at one

time but dropped it, can enroll

during this three-month period

(January – March).

Medicare Part B helps pay for

doctors' visits, outpatient hospital

treatment, and other medical 

services and supplies not covered

by Medicare Part A.

The 1999 premium for

Medicare Part B is $45.50 a

month. However, those who sign

up now instead of when they 

were originally eligible will have 

an additional 10 percent added 

to their premium for each full 

12-month period they could have

been enrolled in Part B but

weren’t. If you sign up any time

during the General Enrollment

Period, your coverage will begin

July 1, 1999.

If you are 65 or older and not

eligible for Medicare’s premiumfree Part A, you can sign up for

this coverage along with Part B

coverage or for Part B only.

Premiums will vary depending on

how long you worked in a job in

which you paid Medicare taxes. 

To sign up for Medicare or 

for more information, call, write

or visit your local Social Security

office, or call our toll-free number,

1-800-772-1213.

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

KEEP IN MIND
TWINS REUNITED IN

SAN JUAN

By Myrna Perez,

Public Affairs Officer, San Juan

Separated at birth 49 years ago, the

Melendez sisters thought they might

never get to meet one another. But

with our help, Carmen Rosa Melendez

Soto and Carmen Lydia Melendez

Mateo finally have been reunited.

Several months ago, a local news

reporter called our office and asked if

we could help Carmen Lydia locate

her twin sister. The reporter explained

that when the twins were born, the

mother was very young and could

afford to keep only one of the babies.

A search revealed a Carmen Rosa

Melendez in New York. We agreed to

send a confidential letter through her

employer, asking if she would like to

get in touch with her sister.

Carmen Rosa Melendez Soto grew

up in New York as an adopted, only

child. Several years ago, Carmen Rosa

learned that she had a twin sister. Still,

the letter regarding her long lost twin

came as quite a surprise to Carmen

Rosa.

“At first glance, I thought the letter

was informing me that somebody was

using my name and Social Security

number,” said Carmen Rosa. “When I

realized the letter was about my sister, I

was overjoyed.”

The producers of “Eso Vale,” a 

television show here in Puerto Rico,

arranged for a surprise meeting

between the twins on the air. Carmen

Rosa flew to San Juan and met her

birth mother just prior to the show.

“I was excited and nervous at the

same time,” said Carmen Rosa.

“Meeting my birth mother was incredible. As I walked onto the stage to meet

Carmen Lydia, I was filled with emotion. I think everyone in the studio

had tears in their eyes when my sister

and I embraced for the first time.”

Since the broadcast, Carmen Rosa

has visited with her sister and has met

her other eight siblings along with a

host of relatives.

“I’m overwhelmed by the number

of relatives I have in Puerto Rico,” said

Carmen Rosa. “It’s funny. My sister and

I grew up in two totally different

worlds, but we have a lot in common.

For instance, we’re both very quiet,

and we like to help people.” 

The Melendez sisters now talk by

phone at least once a week. And, in

July, the sisters hope to celebrate their

50th birthdays together in Puerto Rico.

“We’re trying to make up for lost

time,” said Carmen Rosa. “I guess I’ll

always wonder what it would have been

like to grow up with my family in

Puerto Rico. But I’m so grateful to

Social Security for finally bringing us

together.” 

Ed’s note: Social Security records are kept

confidential, but under certain compelling

humanitarian or financial circumstances,

Social Security will help to get needed information to a missing person by forwarding a

letter to that person.

SOCIAL SECURITY

Volume 4, Number 2

TODAY

An official publication of the Social Security Administration March / April 1999

Photo: Courtesy Primera Hora/Andre Kang
MEET A 

BENEFICIARY

AERIALIST FINDS A SAFETY NET IN 

SOCIAL SECURITY

There’s something magical about going

to the circus. Whether it’s the aroma of 

cotton candy, peanuts and popcorn, the

sheer athletic prowess and death defying

feats of the highwire walkers, the magnificence of the elephants, horses and large

felines, or the ringmaster welcoming you 

to the greatest show on earth, it all adds up

to a unique sensation that captivates young

and old alike. 

While boys and girls dream about running away from home to join the circus,

Mario Wallenda was actually 

performing in the circus as a

member of The Great Wallendas,

the most famous wire-walking 

and acrobatic troupe in circus 

history. According to Mario, he

and his relatives learned to walk

the highwire as early as age 4. 

In fact, Mario spent more time

playing on the wire than he 

did on the ground. It was not

unusual as a small child to play

at heights from 10 to 30 feet.

Led by his father, the legendary Karl Wallenda, the 

Great Wallendas were world

renowned for their dexterity,

precise teamwork and sheer

courage. The signature feat of

the Wallendas was the famed

seven-man pyramid. “We practiced and performed it a few

hundred times and we never

fell,” says Mario. But unfortunately, the Great Wallendas did

fall during a performance in

Detroit in 1962. Mario’s cousin,

Dieter, and his brother-in-law, 

Dick, both died in the accident. Karl

grabbed one of the young performers saving

her life, but Mario fell to the ground. He was

the only one who hit the ground and survived, but he would never walk again.

Mario says he doesn’t remember the

accident, yet he has always been philosophical about it. “Anybody that ever fell either

got better in six months or a year or they

were killed,” he says. “That’s just the way 

it is. You play, you pay. I don’t know why I

lived, but I didn’t die and I didn’t get 

better, and here I am.”

It took several months for Mario, barely

in his twenties, to recover. He credits his

Aunt Yeddy and his nurse, Linda, for helping him to recover. Shortly after his recovery, a courtship began, and Linda became

his wife. Mario went on to have a successful

career in Sarasota, Fla, working for a large

contact lens manufacturer. 

In 1975, he suffered a pressure sore

caused by his immobility which sent him to

the hospital. When the injury was almost

healed he rolled over in his bed and

snapped his left femur. Later, while still 

hospitalized, he broke the leg again. He

seriously considered amputation, but Linda

persuaded him to get a second opinion.

“The second doctor thought the leg could

be saved,” he says. 

According to Mario, it was at this time

that Social Security came into play. “I was

off for most of 1976. Social Security was one

of the best things that happened to me. I

spent most of the year in the hospital, and

Social Security came through with regular

monthly payments I could count on.”

“Most people think they’re never going

to need Social Security,” Mario says. “I didn’t think I would. When you’re young, you

think you’ve got the world. But it came in

handy for me.” Because of Social Security,

Mario has been able to return to his job,

but he still faces health

challenges that would

have caused less determined individuals to 

simply give up. 

Mario seldom goes to

the circus anymore and

when he does, it’s only to

see relatives. “I enjoyed

traveling most of all.

Performing was all right,

but what I really liked

was the elephants.”

Even though his

father Karl, died at age

76 while skywalking in

Puerto Rico and his

beloved Aunt Yeddy died

skywalking 100 feet above

the ground, and even

though other relatives

have died or suffered

injuries, Mario insists he

would walk the highwire

if he could do it all over

again. “Absolutely,” he

says. “I’d do it without a

second thought. That’s

what we lived for.”

THE FUTURE OF 

SOCIAL SECURITY

If you’re a TV viewer, you’ll probably see 

us soon with cranes, helicopters and other

heavy-duty equipment building a Social

Security card. Our “construction” public

service announcement explains that Social

Security has been changing over the last six

decades and will need to change again to

meet the needs of America’s 76 million

baby boomers. The spot invites viewers to

call 1-800-772-1213 and ask for the booklet,

The Future Of Social Security. It’s scheduled to

begin airing this spring.

ANNCR: Over the last six

decades,

Social Sevcurity has changed

to meet the needs of society.

As 76-million baby boomers approach retirement,

Social Security will need to

change once again.

Understanding the problems

and the proposed solutions

is the first step to building an

informed decision. For more

information call 

1-800-772-1213 and ask for

the booklet, The Future Of

Social Security.

While you are reading 

Social Security Today

(about 15 minutes)...

We’ve issued 160 

new Social Security

Numbers,

...170 people visited Social Security’s website (www.ssa.gov),
SENIORS DOT GOV GOES LIVE

Look for a new website hosted by Social

Security — Access America for Seniors. The

website offers one-stop service to millions 

of seniors now discovering the ease and

convenience of the Internet. The address is

www.seniors.gov. 

Access America for Seniors offers a wide

range of links to federal government information and services including information

on Medicare, nursing homes, HUD housing

and VA benefits. You can link to the U.S.

Postal Service to look up a ZIP code or get

a form to notify the post office of a change

of address, link to the Office of Personnel

Management to look for a federal job opening, or link to Social Security’s own website

(www.ssa.gov) to find your nearest Social

Security office.

One of two new services Social Security

is providing at www.ssa.gov is a request for 

a replacement SSA-1099, the benefit statement from Social Security that people use

when filing their income tax returns. Social

Security expects to receive about 870,000

requests this year for forms to replace originals that were lost or mutilated. Providing

the request form on the Internet saves beneficiaries time and saves the government

about $1.50 for each request. 

A second statement, the benefit verification letter frequently used by low-income

aged and disabled beneficiaries to establish

eligibility for state and local assistance, is

also available either directly from Social

Security’s website or by linking to it via

Access America for Seniors. In extending

these services on the Internet, Social

Security has put in place appropriate privacy and security safeguards. The online

request form requires users to enter their

name, Social Security number, date of birth,

place of birth and mother’s maiden name

to verify the requester’s identity. This information must match the information in

Social Security records exactly before the

agency generates a response. The statements are mailed only to the beneficiary’s

address in Social Security records. This is

the address where beneficiaries receive

their checks or, if they have direct deposit,

their official notices regarding their Social

Security benefits. (Of course the statements

are also available by writing to Social

Security, by calling 1-800-772-1213, or by 

visiting a Social Security office in person.) 

Although Access America for Seniors is

available 24 hours a day, Internet requests

for the statements from Social Security can

be made only Monday through Friday, 

8 a.m. through 9 p.m. and Saturdays from 

9 a.m. to 4 p.m., Eastern time. 

COMMISSIONER’S MESSAGE

Kenneth S. Apfel

Commissioner 

of Social Security 

It’s no secret.

Our economy is

strong, stronger

than it’s been 

in the past 30

years. We’ve had

the fastest wage

growth in more

than two decades, the lowest peacetime

unemployment rate in 41 years and the

highest home ownership rate in history.

We’ve gone from annual budget deficits 

of $300 billion to a surplus this year of

about $76 billion. That budget surplus is

the first in a generation and projections

call for more and larger surpluses in the

years to come. These strong economic

forecasts present us with a real window of

opportunity to save Social Security for the

21st century.

But here’s a fact most Americans are

not aware of. If Social Security were to 

disappear tomorrow, more than half of all

older Americans would wake up poor the

following day. Social Security is the major

source of income for two-thirds of the

elderly. For one-third of the elderly, Social

Security is virtually the only income they

have.

There’s more. Today, Americans are

living longer, healthier lives, which of

course is good news. But that also means

that by 2030, we’ll have twice as many

older Americans as today – 70 million

compared to 35 million. While there are

currently three workers supporting each

Social Security beneficiary, by 2032 there

will be only two workers supporting each

beneficiary. At that time, the Social

Security trust funds will be exhausted and

tax revenues will be able to pay only about

three-quarters of the benefits due. 

That’s why we must act and we must

act now. We can’t just celebrate today’s

prosperity; we have to use it to prepare for

tomorrow’s challenges. President Clinton

has proposed a framework to strengthen

Social Security that will help us meet the

challenge of the next century. He proposes

transferring 62 percent of the budget 

surplus, about $2.7 trillion, to Social

Security over the next 15 years. A small

part of that money, about 20 percent,

would be invested in private markets to

earn a better rate of return. That investment would represent about 4 percent of

the total stock market. By contrast, state

and local government pension funds 

represent about 10 percent of the stock

market today. The funds would be invested by private money managers, not

by the government. And any risks

would be borne by the government,

not by individuals. There would also

be safeguards to avoid politicizing

the investment process. These

actions would move the date of 

the Social Security trust fund

exhaustion from 2032 to 2055. 

The President has provided

this framework and direction for increasing the solvency of Social Security. He has

called for bipartisan action to place Social

Security on sound footing for a full 75

years. What better time to act than now,

while we have these budget surpluses that

can be used to ensure the retirement security for millions of Americans?

SOCIAL SECURITY GETS AN A

Social Security is at the top of its class.

The Maxwell School of Citizenship and

Public Affairs at Syracuse University recently

rated Social Security as the best-run government agency.

The assessment, called the Government

Performance Project, selected 15 agencies

representing an array of services, and

ranked them in five areas – finances,

human resources, information technology,

capital investment and managing

for results. Social Security aced

the first four categories and took a

“B” in managing for results. Social

Security was the only agency to score

an overall “A” grade.

“There is a strong correlation

between performance and public

confidence in government,” Social

Security Commissioner Kenneth

Apfel pointed out when the

results were announced. “When

we make government work, public confidence and trust in government rises.

“We administer programs that affect the

lives of virtually all Americans,” he added.

“This year, more than 26 million people 

will walk into our 1,300 offices across the

country. More than 70 million people will

call our 800 number. You can imagine how

important it is to have effective information

systems and financial management systems

so we can handle this workload. We know

our monthly benefit payments are an

important part of the quality of life for 50

million Americans ... and millions more

who are protected in case of death or

disability.

“Our goal is to do all of this – and 

more – correctly, to do it timely, and to

do it with the utmost courtesy and 

consideration for our customers. 

“But it does not just happen. It takes

the dedicated work of the management

team and all 65,000 agency employees ... all

committed to excellence and results.”

WHO PAYS 

SOCIAL SECURITY TAXES

Ever wonder who pays Social Security

taxes? Why you do, of course, if you work.

And so do more than 140 million other 

people. You pay 7.65 percent of your gross

wages (6.2 percent for Social Security up to

the $72,600 wage base in 1999, and 1.45

percent for Medicare without a limit on

earnings). 

But it doesn’t end there. Your employer

matches your tax payments dollar for dollar.

In many cases, Social Security forms an

important component in your employer’s

retirement plan. If you’re self-employed,

you pay the combined employee/employer

tax. However, there are special deductions

you can take when you file your taxes to offset part of your taxes. So you see, both

workers and employers have an important

stake in Social Security.

180 people applied 

for benefits,

850 people

received a 

statement from

Social Security

showing how

much they’ll

receive in 

benefits when 

they are eligible,
WE’RE READY FOR THE YEAR 2000

Late last year, President Clinton

announced that Social Security had

completed testing its computer 

systems, and all critical systems are

now Y2K compliant. In fact, Social

Security and the Treasury Department have been making benefit

payments using the updated software since October. 

That’s good news for the 

49 million Americans who count

on Social Security each month to

get their payments out on time

and in the right amount. In making the announcement,

President Clinton said,

“The Social Security

Administration is now

100 percent compliant

with our standards and

safeguards for the year

2000. To make absolutely certain, the system has

been tested and 

validated by a panel of

independent experts;

the system works; it is

secure. And therefore,

older Americans can

feel more secure.”

For those not familiar with the year 2000

problem, or what

techies in the computer

business call the Y2K

problem, it’s a calendar

glitch that can affect

computer systems worldwide. Early computers

had limited space so they

were programmed to read only

the last two numbers in a date.

When we get to January 1, 2000,

because there is no instruction for

the 19 to go to 20, it could cause

computers to shut down or malfunction. Because Social Security

relies on a vast computer network

to keep track of earnings for 145

million workers, take six million

applications for benefits a year,

and pay monthly benefits to 49

million beneficiaries, the agency

began working on the problem as

soon as it was identified in 1989.

Since then, Social Security has

taken the lead among government

agencies in fixing the problem.

In a very labor-intensive effort,

Social Security checked and fixed

hundreds of systems and millions

of lines of software. Nearly 2,800

employees including 700 programmers were involved in preparing

for the year 2000.

The Social Security system has

now been tested and validated. In

addition, Social Security will continue to test the system throughout 1999 to assure continued 

operational efficiency. The federal

systems supporting Social Security

are ready for the 21st century, and

Social Security will be able to provide benefits without interruption

to the nation’s seniors throughout

1999 and into the year 2000. 

YOUR WINDOW ON Y2K

Do you want to find out what

Social Security is doing to make

sure its computer operations are

ready for January 1, 2000? If so, 

be sure to check out our Internet

website at www.ssa.gov/year2000

to see what steps we’re taking to

ensure that there will be no 

interruption in benefit payments

or any other business we conduct

as we move into the new century.

You can also link from this web

page to other agencies to learn

about Y2K preparations throughout government.

DISABILITY BENEFITS CAN 

CONTINUE WHILE YOU WORK

Don’t let the fear of losing your

disability payments or your medical coverage discourage you from

trying to work. Under special rules

called “work incentives,” you can

continue to receive cash benefits

and health care coverage while

you test your ability to work on a

regular basis. Different work

incentives are available, depending

on whether you receive Social

Security or Supplemental Security

Income disability payments.

If you’re thinking about going

back to work, look into these special rules. They’re designed to

help you make the transition to

full-time employment without the

risk of losing your benefits.

However, be sure to let Social

Security know that you’re returning to work, even if it’s only on a

trial basis. 

For more information, call

Social Security at 1-800-772-1213

and ask for the booklet, Working

While Disabled—How We Can Help

(Publication No. 05-

10095). You

can also

obtain

information about work

incentives on the

Internet at www.ssa.gov.

REPORTING REMINDERS

As most people who work and

get Social Security know, it’s no

longer necessary to report your

wages to Social Security if you earn

more than the annual exempt

amount. That’s because the information is now supplied by the

Internal Revenue Service based on

the earnings reported on your W-2

or self-employment tax return.

But there are some things you still

need to let Social Security know

about. For instance, if your earnings change during the year, you’ll

need to revise your earnings estimate that you filed when you

applied for benefits. 

Here are some other things you

should report to Social Security.

• If you change your address,

you’ll want to be sure to let Social

Security know so you can get your

1099 benefit statement and other

important information at your new

address.

• If you change your bank or

open a new account, you’ll want 

to let Social Security know so your

direct deposit can go to the proper location. You’ll need to supply

your old and your new account

information when you do. 

• You’ll also want to let Social

Security know if a beneficiary dies.

• If you get married or divorced,

it could affect the amount of your

benefits. Be sure to let Social

Security know. 

• If you change your name

because of marriage, divorce or

court order, you should notify

Social Security so the name on

your records can be changed.

• If you are caring for a child

who is under 16 or disabled, you

should notify Social Security if the

child leaves your care. You’ll need

to supply the name and address of

the person the child is living with.

To notify Social Security of any

changes, just call 1-800-772-1213. 

A REMINDER FOR 

SELF-EMPLOYED WORKERS

If you’re self-employed it’s up

to you to make sure you report

your earnings accurately and on

time. Otherwise, when

it’s time to collect Social

Security benefits, you

may not get all the 

benefits you are entitled

to receive. Social Security 

benefit amounts are calculated on

the amount of earnings or selfemployment income

that is posted on your

record.

You are considered

self-employed if you

operate a trade, business or profession, either

by yourself or as a partner.

Self-employed people,

unlike individuals who

work for an employer, do

not receive W-2s listing

their earnings. Therefore,

self-employed people

whose net earnings are

$400 or more in a year must

report those earnings on an 

IRS Schedule SE along with their 

regular IRS 1040 tax form. 

The Social Security tax rate 

for 1998 is 15.3 percent on selfemployment net earnings up to

$68,400. If your net earnings

exceeded $68,400, you continued

to pay the Medicare portion of the

Social Security tax, 2.9 percent, 

on the rest of your earnings. (The

1999 earnings limit is $72,600.)

If you discover that you have

not reported all of your selfemployment income in a particular year, you may have time to

make corrections. The deadline

for reporting self-employment

income so you can get credit for 

it on your Social Security record 

is 3 years, 3 months, and 15 days

from the last day of the tax year in

which the income was earned. For

more information about reporting

self-employment income, call our

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

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

KEEP IN MIND

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.

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 21235-6401

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

Social Security Today is also available on the

Internet at www.ssa.gov.

2,400 people called

Social Security 

for information or 

to report changes.

(1-800-772-1213),

And we paid

$11.8 million 

to beneficiaries 

and the Social

Security’s trust

funds have earned

$1.4 million in 

interest.

We’ve been busy,

What can we do

for you?

Social Security paid 

$11,800,000 

to beneficiaries,
SOCIAL SECURITY

TODAY

Volume 4, Number 3 An Official Publication of the Social Security Administration May / June 1999

GOOD NEWS FOR

MEDICARE, TOO

The Trustees also reported good news for the

Medicare Trust Fund. The projected depletion

date has been extended to 2015, up seven years

from last year's projection.

The Trustees credited the combination of a

robust economy and restrained expenditures for

extending the life of the trust fund and cutting

the projected 75-year deficit by one-third since

the last report.

“In the last two years, we extended the life of

the trust fund by a full 14 years and cut the

actuarial deficit by two-thirds,” the Trustees

said. “But we must keep working for a consensus on how to protect and modernize

Medicare.”

LINEUP THE

The Social Security 

trust funds have

gained two additional

years of solvency. As

announced in the

1999 Annual Report of

the Social Security

Board of Trustees, the long-range projections show that Social Security

assets will be depleted in 2034 rather

than 2032 as predicted last year. The

trust funds support benefit payments

to more than 44 million Americans.

In announcing the news, Social

Security Commissioner Kenneth Apfel

said that the improvement in the

financial condition of the trust funds 

is due to continued strong economic

growth characterized by reduced

unemployment, higher wages and 

low inflation. “In addition,” he said,

“recent adjustments by the Bureau 

of Labor Statistics to improve the 

measurement of the Consumer Price

Index contributed to the improved

outlook of the Social Security program.”

The trustees reported that trust fund

expenditures will begin to exceed tax

revenues in 2014, a year later than

estimated in 1998. And beginning in

2022, trust fund assets will have to be

drawn down to pay benefits until 2034

when the reserves will be exhausted.

At that time, tax revenues will be 

sufficient to pay only 71 percent of 

the benefit obligations.

Over the 75-year long-range actuarial forecast, the projected actuarial 

balance is a deficit of 2.07 percent of

taxable payroll, compared to 2.19 

percent projected a year ago.

As they did last year, the trustees

urged legislative action in the immediate future to restore long-term balance

to Social Security. “We welcome these

favorable developments for Social

Security and Medicare,” Treasury

Secretary Robert Rubin said.

“Nonetheless, the need to put these

programs on sound financial footing 

for the long term must still be met. We

should move forward on a bipartisan

basis to finish the job by using the 

Solvency Jumps

Good News for Medicare

Early Retirement 

Commissioner’s Message

ADVICE FOR

BRIDES

NEW800SERVICE

FOR MEDICARE

Meet a

Beneficiary 

Myths

Health Insurance For Kids

HELP WITH MEDICARE EXPENSES

TOP1OINTERNET SERVICES

LIMIT INCREASES FOR

DISABLED BENEFICIARIES

1

1

2

2

2

3

4

4

4

5

5

6

Continued on pg. 5

Solvency Jumps to 203 4
Getting married? If you’re going to be

a bride anytime soon, there’s one way to

save yourself some time and confusion.

And that’s to be sure to notify Social

Security that you have a new name. The

reason is simple. Often brides’ earnings

are reported under their new names.

But unless Social Security is notified 

of the change, we are unable to process

those earnings because the name and

Social Security number don’t match. 

So if you’re going to be using your new

name in the workplace, be sure to let

Social Security know.

And it’s easy to do. Just stop by any

Social Security office with proof of your

old and new names. Your marriage 

certificate will work fine. You’ll also

need proof of your identity. It's as easy

as that. Your Social Security number

will remain the same. That’s yours for 

a lifetime. But your records will be

updated to show your new married name,

and you’ll be getting credit for all your

earnings without delay.

2

SOCIAL SECURITY TODAY

Retirement in the age 50s

bracket has becoming

increasingly popular in

recent years. Some early

retirements are the result

of company downsizings. Others may

occur because the worker simply wants

to enjoy more leisure time or pursue 

a hobby. Whatever the reason for 

leaving the workforce earlier than the

usual retirement age, it can affect the

amount of your Social Security retirement benefits.

Before we explain how early retirement can affect your benefits, you

need to know how we calculate

them. Social Security benefits are based on your

earnings averaged

over 35 years of

your working

lifetime. First, we

adjust your actual

earnings to account

for changes in average wages since 

the year the earnings were received.

Then we calculate your average

monthly adjusted earnings during the

35 years in which you earned the

most. Benefits are not, as some people

think, based on your last five or last 

10 years of work. 

Unfortunately, some people also

think that once they have earned 40

credits (formerly known as quarters of

coverage), they are then eligible for

the maximum Social Security benefit.

Not true. Earning 40 credits makes

you eligible for retirement benefits at

a certain age; it has nothing to do with

the amount of your benefits. We use

the formula described above to calculate how much you will receive.

Sometimes people ask, “Will I be

penalized if I retire early?” No, you

won't be penalized; but, because we're

looking at your highest 35 years, you'll

have less opportunity to replace your

years of lower earnings with years of

higher earnings. This probably will

reduce the amount of your monthly

benefits.

And now a few words about

retirement age. You can

retire as early as 62

with a reduction

in benefits. The

full retirement

age for people born

before 1938 is 65.

Because of a change in the law, an

increase in the full retirement age is

being phased in for people born after

1938. When fully phased in, it will be

67 for workers born in 1960 or later. 

So, if Monday mornings are getting

more difficult to deal with and you're

thinking about leisure-time activities

more and more, you may want to 

consider the effect your decision 

will have on your Social Security 

Early Retirement

Can Affect Your

Social Security Benefits GOOD

ADVICE

FOR

BRIDES

Older

Americans

Month

One of the most remarkable achievements of this century is the increased

longevity Americans are enjoying.

Over the years, Social Security has

played a major role in ensuring that

these added years are an opportunity

to reap the benefits of a lifetime of

working rather than an addendum

spent in uncertainty and financial

despair.

In May, we celebrate Older Americans

Month. Its aim is to raise public

awareness of the expanded horizons

increasing longevity provides for people of all ages. During this time, we

want to focus public attention on

issues related to older Americans.

And one of the most prominent of

these is the future of Social Security.

When Older Americans Month was

established in 1963, only 17 million

Americans had reached their 65th

birthday. Today, there are more than

33 million Americans age 65 and older

living in the United States. By the year

2030, the figure is expected to double.

In 1940, an American could expect to

spend 7 percent of his or her adult life

in retirement. Today, that figure is 26

percent. A long retirement has become

commonplace. The fastest-growing

segment of the population is people

age 85 and older. 

These changing demographics, of

course, are the driving force behind

the need to change Social Security.

Social Security comprises more than

50 percent of the income for twothirds of the elderly population. It is

by far the most important source of

income for older Americans.

As our most recent trustees report

shows, the Social Security trust funds

are in better shape now than they

were a year ago. We expect that we

won’t have to begin drawing on them

until 2014, and that they won’t be

depleted until 2034. But the good 

economic news does not mean that 

we do not have to act to ensure that

Social Security will be there for future

generations. In fact, the time to act is

now, while we have the benefits our

robust economy is affording us. 

Kenneth S. Apfel, Commissioner of Social Security

Continued on pg. 6

Continued on pg. 6

Commissioner's Message
SOCIAL SECURITY TODAY

3

Medicare has more to 

offer – more benefits,

more information and

more help with questions about Medicare.

Three places you can get that help are

the new Medicare+Choice toll-free telephone line at 1-800-MEDICAR(E)

(1-800-633-4227), the Medicare & You

handbook and on the web at

www.medicare.gov.

If you call 1-800-MEDICAR(E), you can

talk with an English or Spanish-speaking

customer service rep between 8 a.m. and

4:30 p.m. for help with questions about

Medicare, including– 

• general information about Medicare;

• updated information about health plan

options in your community; 

• general information about Medicare

supplemental insurance (Medigap); and

• telephone numbers for assistance with

billing questions about Medicare claims

or for help with more complex questions

about your health insurance.

You can also request a copy of the

Medicare & You handbook, an audio tape

of the handbook in English or Spanish

or updated information about health

plans available in your community. And

you can listen to pre-recorded answers 

to frequently asked questions.

If you have a teletypewriter (TTY) 

or telecommunications device for the

deaf (TDD), you can call toll-free 

1-877-486-2048.

With the new Medicare+Choice, you

may have a wider variety of options on

how you receive health care, whether

from original fee-for-service Medicare 

or managed care plans. Original feefor-service Medicare is available to all

beneficiaries. Medicare managed care

plans are available in many parts of the

country. However, if you are satisfied

with the way you currently receive

Medicare services, you don’t have to 

do anything at all.

The information, whether you get it on

the Internet, from 1-800-MEDICAR(E)

or from the Medicare & You handbook,

will help you and your family make 

the right decisions to meet your health

care needs. 

1-800-MEDICAR

(E

)

1-800-633-4227

MEDICARE BEGINS NEW 800 SERVICE

is published bimonthly to keep readers up to date on

the Retirement, Survivors and Disability Insurance

programs, Supplemental Security Income and Medicare.

SOCIAL SECURITY

TODAY

Permission is given to reprint articles, pictures and 

information. Please credit the Social Security

Administration as the source. Direct correspondence to

Editor, Social Security Today, 4-J-10 West High Rise,

6401 Security Boulevard, Baltimore, MD 21235-6401

or send e-mail to Richard.W.Schwartz@ssa.gov. For more

information about any of the items in Social Security

Today, call Social Security at 1-800-772-1213, 

weekdays between 7 a.m. and 7 p.m. You can also get 

a variety of information about Social Security programs,

including this publication, on the Internet at

www.ssa.gov.

“Sir, this is the first time I’ve ever talked to a phone

who’s had something meaningful to say back. Thank you.”
SOCIAL SECURITY TODAY

4

You’ve all heard the stories

about Social Security going

broke for whatever reason.

Well, Social Security isn’t

going broke and here are

some of the reasons why these myths are

just that – stories.

Social Security is poorly managed!

Out of every dollar collected in Social

Security taxes, less than a penny is used to

cover administrative expenses. All the rest

is funneled directly into benefit payments

or into the Social Security trust funds.

Social Security is going broke

because of all the benefits paid to

people who never worked and never

paid Social Security taxes!

All Social Security beneficiaries must

meet an “insured status” requirement. In

other words, you have to work and pay

taxes for a pre-determined period of time

before you are eligible for benefits.

Some people who have never worked

and, of course, never paid Social Security

taxes receive “dependents” and “survivors”

benefits. But they are eligible for those 

payments on the account of someone who

is insured – someone who has worked and

paid Social Security taxes.

Social Security is going broke

because of illegal aliens and others

who get those supplemental Social

Security payments!

Many people confuse Supplemental

Security Income (SSI) with Social Security.

SSI is not a Social Security benefit. It is a

federal welfare program that Social

Security administers. SSI is funded from

general tax revenues, not Social Security

taxes.

Under the SSI program, only low-income

elderly and disabled immigrants living in

this country legally qualify for payments.

MORE MYTHS DEBUNKED

Meet Theresa Zezulak. Thirty-three

year-old Theresa Zezulak has been

receiving Social Security benefits since

1993 as a disabled adult child. That’s

when her father, George Zezulak,

retired.

Theresa was born with a severe form

of cerebral palsy. Her doctors predicted

that she would probably require 

institutional care for most of her life.

“That was just unacceptable to us,”

Theresa’s mother Pat said. “We never

believed that for a moment. The

whole family, including a brother and

two sisters, worked together to give

Theresa every opportunity to grow 

up and lead a normal life. We tried to 

expose her

to a lot of

external stimuli so she’d have as much

opportunity as possible.”

And the effort has paid off. Theresa

now works as a volunteer in the medical records department at Christ

Hospital in Chicago and as a file clerk

in the hospital’s vocational services

department. She hopes to land a fulltime job in social work in the future. 

Social Security pays monthly benefits

to unmarried disabled sons and

daughters of retired, deceased and

disabled workers. The disability must

occur before the child reaches 22 and

Meet A Beneficiary 

What’s new:

Affordable

Health Insurance Available

for Kids

A new program is under way to

provide affordable health insurance 

to over 10 million of our nation’s 

children who are currently uninsured.

The Children’s Health Insurance

Program (CHIP) is the largest single

expansion of children’s health 

insurance in 30

years. It aims

to make

health care

services such as doctor visits, prescription drugs and hospital care available

to the estimated one out of seven children without health insurance today.

Over the next five years, CHIP will

provide $24 billion to cover millions 

of uninsured children in working 

families. Each state is developing its

own Children’s Health Insurance

Program to make health care more

affordable for kids who need it. To

find out more, call 1-877-KIDS-NOW.

Additional information is available on

the national kids website at 

www.hrsa.gov/childhealth.

Continued on pg. 5
surpluses to pay down the national debt

and substantially extend the exhaustion

date of the Social Security and Medicare

trust funds.” (In his State of the Union

Address, President Clinton proposed

transferring 62 percent of the budget

surpluses, about $2.8 trillion, to Social

Security over the next 15 years and

investing about 20 percent of the transferred surpluses in private markets to

earn a better rate of return.)

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 experiences 

and available research. Based on their

intermediate assumptions, the trustees

also reported, “About 148 million people

worked in jobs covered by Social Security

in 1998 and 44.2 million beneficiaries

were on the rolls at the end of the year.”

Income to

Social

Security’s

combined Old

Age, Survivors

and Disability

Insurance Trust

Funds totaled

$489.2 billion and

expenditures were

$382.3 billion.

• The trust fund reserves increased by

$106.9 billion to $762.5 billion at the end

of December.

• Interest income was $49.3 billion, representing an effective annual interest

rate of 7.2 percent. The average interest

rate on new securities purchased was

5.6 percent.

SOCIAL SECURITY TODAY

If you have Medicare and your

income and resources are limited, you

may be eligible for help with some of

your medical expenses. State governments have programs that help pay

Medicare costs for certain elderly and

disabled people. If you qualify, you

could save $546 or more this year in

Medicare premiums, even more if 

you use Medicare services.

To be eligible for these state programs, you must meet certain requirements:

• You must have Medicare Hospital

Insurance (Part A).

• Your financial resources, or the

things that you own, cannot be more

than $4,000 ($6,000 for a couple).

• Your monthly income must be less

than $947 ($1,265 for a couple).

If you are eligible for help, your state

government will pay your Medicare

Medical Insurance (Part B) monthly

premium – $45.50 in 1999. And

depending on your income and financial resources, you may not have to

pay certain Medicare deductibles and

coinsurance payments.

To find out if you qualify for help,

call your local medical assistance, 

welfare or social services office. You

can also call Social Security at 

1-800-772-1213 or contact your local

Social Security office. People who are

deaf or hard of hearing should call 

at 1-800-325-0778 (TTY). Be sure to

ask what documents you’ll need to

submit with your application. Most

likely you’ll be asked to supply proof

of your income, resources, identity

and residence.

If you are eligible, you can look 

forward to future Medicare savings.

5

YOU MAY BE

ELIGIBLE

FOR HELP

WITH

MEDICARE

EXPENSES

“Keep this in

mind...”

TOP

10 

INTERNET SERVICES

If you’ve ever stopped by Social

Security’s online website, you’re one 

of a growing number of people who

are finding the convenience of getting

information without leaving their 

keyboards. More than 1,000 people 

a day are visiting Social Security Online

to find their nearest Social Security

office, check out how much they have

credited to their Social Security earnings record, learn how to apply for

Social Security benefits or find out

what they need to do to change their

name on their Social Security records.

And the address they all go to is

www.ssa.gov.

Social Security Online houses one 

of the largest collections of online

information in any government

agency and it’s probably a good way 

to get the information you need. 

But have you ever wondered what

Internet services people are requesting most often? If so, here’s a rundown on the most frequently accessed

items.

• Request for Earnings and Benefit 

Estimate Statement;

• Application for a Social Security card; 

• Frequently asked questions and

answers about Social Security;

• The Social Security Handbook, a basic

program reference;

• The most widely used public forms; 

• Publications on retirement, disability

and survivors benefits and

Supplemental Security Income for the

aged, blind and disabled, many available in both English and Spanish;

• Full text of official agency rulings;

• Social Security Teacher’s Kit, a teaching

aid for high school teachers;

• Summary of the trustees' annual report

of the Social Security trust funds; and

• Brief factsheets on more than two

dozen specific aspects of the Social

Security programs. 

You may download, copy and print

material from Social Security Online

and redistribute it to others free of

charge. There are no copyright

restrictions.

SOLVENCY JUMPS TO 2034

from pg. 1

payments continue for as long as the

disability lasts. Social Security currently pays $342 million in monthly benefits to 713,000 disabled adult 

children. 

Theresa walks with the assistance of 

a walker and has some speech and

language difficulties. In high school, 

a counselor once told her that she

would never make it through college.

“That really put me down,” Theresa

said. “It only made me try harder.”

And Theresa did make it to college,

too, and while there lived on campus.

Her parents believed the experience

would make her more independent.

In 1991, after five years, Theresa 

was graduated from Southern Illinois

University with a bachelor’s degree 

in social work. “It gave me a real sense

of accomplishment,” she said. “I felt

wonderful.” 

She is a determined daughter, her

father, George, points out. “I give her

credit for what she’s done and what

she’s doing now. It may take her 10

“Beneficiary” from pg. 4

Concluded on pg. 6

Concluded on pg. 6
SOCIAL SECURITY TODAY

6

Social Security must remain a rock

solid benefit that current and future

beneficiaries can count on. Today’s

good news must not lull us into complacency. We should not just celebrate

today’s prosperity but use it to meet

the challenges of the future. We cannot rest until we are able to meet our

commitments to our youngest workers. Social Security must be on firm

financial footing when they retire.

The strong economy has given us 

a unique window of opportunity to

strengthen Social Security. By acting

sooner rather than later, in good 

economic times, we can make gradual

changes to the system that will allow

people time to plan adequately for

their retirement years. If we have 

the courage to make the thoughtful

decisions for Social Security now, we

will strengthen Social Security for

future generations of Americans.

We believe wholeheartedly that the

President and Congress must continue

bipartisan efforts to restore the longterm fiscal health of the trust funds.

Without changes, the Social Security

Old-Age, Survivors and Disability

Insurance Trust Funds will be able to

pay only about 71 percent of benefits

when the reserves are depleted in

2034. Devoting a portion of the budget surpluses to Social Security over

the next 15 years is critical to achieving a balanced resolution to the 

Social Security shortfall.

We must work together to make the

decisions necessary to ensure that

Social Security will be there for future

generations. If we have the courage to

act now, we can restore public confidence to our government institutions

and strengthen Social Security for

future generations of Americans. 

Kenneth S. Apfel 

Commissioner 

COMMISSIONER’S MESSAGE

from pg. 2 steps to someone else’s two or three,

but she can do it. It took her a little

longer in college, but she did it. I

believe everybody has the potential to

do what he or she wants to do.” 

One of the activities that Theresa was

exposed to early in life was horseback

riding, and she’s stuck with it. “She

has a special relationship with horses,”

her mother explains. Theresa now

rides weekly at the Hanson Center in

Burr Ridge.

Theresa’s parents urge people to

accept others with disabilities and to

work for more accessibility for this

valuable group of Americans. Pat also

points out that without Social Security,

things would have been a lot tougher

for Theresa. And it’s something she

can count on throughout her life.

Theresa sums up her independence

saying, “I’m not a stay-at-home person. I’m out in the community doing

something, helping other people.”

“Beneficiary” from pg. 5

retirement benefits before you take

the big leap into retirement.

For more information about how

retirement benefits are figured, call 

or visit your local Social Security 

office or call our toll-free number, 

1-800-772-1213 to ask for the factsheet, Social Security – How Your

Retirement Benefit Is Figured. The factsheet also is available on our website,

www.ssa.gov.

WHAT ELSE IS NEW:

Limit Increases for

Disabled Beneficiaries

On July 1, the amount disabled adult

beneficiaries can earn while still remaining eligible for benefits will jump from

$500 to $700 per month. This is the

first increase in the level of substantial

gainful activity (SGA) since 1990. 

“This increase will allow more

beneficiaries with disabilities to

return to the workforce and enable

them to lead more productive,

self-sufficient lives,” said Social

Security Commissioner Kenneth

S. Apfel.

To be eligible to continue receiving

Social Security or Supplemental

Security Income disability benefits, a

beneficiary must be unable to engage

in any substantial gainful activity that

exceeds the $700 limit.

The increase reflects the level of the

growth in average wages since 1990.

Currently, less than one half of 1 percent of disability beneficiaries leave the

rolls voluntarily and return to work.

Each year since 1991, approximately

400,000 disability beneficiaries have

remained on the rolls and also participated in the workforce. The higher

SGA level is expected to prompt additional beneficiaries to venture into the

workforce.

“As a nation, we are best served when

all of our citizens have the opportunity

to contribute their talent, ideas and

energy to the workforce,” Commissioner

Apfel said. “We must continue to seek

new ways to ensure that persons with

disabilities can share the benefits of our

economic prosperity.”

The limit on substantial gainful activity

for people receiving Social Security 

disability benefits based on blindness is

$1,100. This limit is adjusted annually

based on the national average wage

index.

“Early Retirement” from pg. 2

• Administrative expenses were $3.5 

billion, or about 0.9 percent of benefit

payments for the year. 

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 fouryear terms. The current public members are Stephen Kellison and Marilyn

Moon, currently serving terms that

began on July 20, 1995.

“Solvency Jumps” from pg. 5

Social Security Administration SSA Publication No. 05-10110

“This increase will allow more

beneficiaries with disabilities to

return to the workforce and 

enable them to lead more 

productive, self-sufficient lives,”

said Social Security Commissioner

Kenneth S. Apfel.

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