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.
Social Security Today - July/August 1996

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Social Security Today

July-August 1996

______________________________________________________________

Trust funds secure 

Funds growing but long-term problems remain

The Social Security trust funds are solvent for more than three decades into the future,

according to the 1996 Annual Board of Trustees Report.

The Board of Trustees is required by law to report annually to Congress on the current and

estimated future financial condition of the Old Age and Survivors Insurance (OASI) and

Disability Insurance (DI) Trust Funds. The report uses annually updated economic and

demographic assumptions, reflecting the nation's most recent experience and best

available research. The report reflects little change from those of the past three years.

The 1996 report shows that income to the combined OASDI trust funds amounted to

$399.5 billion in calendar year 1995, and expenditures were $339.8 billion. OASDI trust

fund assets thus increased by $59.7 billion, and at the end of last December stood at

$496.1 billion.

The report also states that the combined OASDI trust funds are expected to grow until

2019, and then to decline until they will be exhausted in 2029. Both of these dates are

one year sooner than estimated in the 1995 report, due primarily to a technical correction.

Shirley S. Chater, Commissioner of Social Security, has noted that, contrary to what many

people believe, Social Security will not be "broke" in 2029. The Social Security system will

continue to receive payroll taxes--enough to cover 77 percent of the full benefit costs at

that time.

"While there are long-range financing problems for Social Security," Commissioner Chater

said, "there is also ample time to discuss alternatives and to find a resolution that has the

full support of the American people."

The 1996 trustees report on the status of the Medicare trust funds was less favorable. The

estimated depletion of the Hospital Insurance Trust Fund will occur in the year 2001,

based on the most probable economic and demographic assumptions. This is one year

earlier than had been forecast by the trustees last year.

The six members of the Social Security and Medicare Board of Trustees are: the Secretary

of the Treasury, Robert Rubin; the Secretary of Labor, Robert Reich; the Secretary of

Health and Human Services, Donna Shalala; the Commissioner of Social Security, Shirley

Chater; and two members appointed by the President and confirmed by the Senate to

represent the public--Stephen Kellison and Marilyn Moon.

_______________________________________________________

Commissioner's Message

Welcome to Social Security Today. This new publication aims to inform you of news

JUN OCT MAY

9

1996 1997 2000

8 captures

13 Jun 97 - 9 May 01

Cl

H
Social Security Today - July/August 1996

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and trends in Social Security, in an upbeat style that puts a human face on Social Security

and our services.

Your organization and thousands of others formerly subscribed to Social Security

Courier. That publication has been discontinued, and, with this issue, Social Security

Todaytakes its place. Although the format of the publication has changed, we will

continue to provide you with updates on Social Security subjects of interest to you.

In this issue we summarize news of the 1996 trustees report, which forecasts Social

Security financing for the 21st century. We also report on important changes in the rules

for paying benefits to stepchildren. There's information to help you protect your income

tax refund. We tell you about Social Security's role in running a "general store" of

government services in Atlanta. We allow you to meet a Social Security beneficiary, and

profile an example of world class service.

We hope that our plans for Social Security Todaymeet your needs. You're the best

judge of that, so please let us know your reactions to this issue. You can write to Editor,

Social Security Today, at Room 4-J-9 West High Rise, Baltimore MD 21235. Or you can

fax your comments to us at 410-965-3906, or send e-mail to Margaret.D.Pagan@ssa.gov.

Thank you for your interest in Social Security.

Shirley S. Chater 

Commissioner of Social Security

____________________________________________________________

MEET A BENEFICIARY 

Grace Kelley 

Survivors benefits make the difference

Social Security survivors benefits have helped many people get on with their lives after the

loss of a loved one. An example that strikes close to home is Grace Kelley (no relation to

the late movie star). Grace can personally attest to the value of Social Security survivors

benefits.

The death of her husband in a motorcycle accident nine years ago left Grace a widow with

two children, wondering how she and her family would manage. Her brother-in-law helped

her apply for Social Security survivors benefits. At the time, Grace was amazed that she

and her children were entitled to monthly checks based on her husband's work and

earnings. Her older son, Todd, because he was turning age 18, could receive benefits only

for a short time, while benefits for Grace and her younger son, Josh, continued. The

monthly Social Security income paid food and household expenses.

With some college credits and limited part-time work experience, Grace was keenly aware

that any job she might get would not match what her husband had earned. She was also

aware that, because of the earnings limits on people receiving Social Security benefits, fulltime earnings might cause her benefits as a mother to stop.

So she decided to return to college to complete her education. Grace and Todd attended

college at the same time. Because her benefits as a mother would end when Josh attained

age 16, Grace needed to complete all the credits required for graduation within two

months after her benefits ceased. She had to work diligently to meet her goal. After

graduating from college and beginning work, Grace saved part of Josh's survivor benefits

to help with his college expenses.

Grace is grateful for the five years that survivors benefits were paid on her husband's

record. "Survivors benefits gave me an amazing opportunity to change my life for the

better as well as guide my two sons' lives in a positive, fulfilling direction. By giving us a

choice, the survivors program allowed three of us to return much more than we ever
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took."

Several years ago, Grace came to work for Social Security. Her personal experience adds a

special dimension to her work as a claims representative, especially when families apply

for survivors benefits. 

_____________________________________________________________

GRACE KELLEY SIDEBAR

Too few people appreciate just how valuable Social Security survivors benefits can be to

young families. But these numbers tell the tale---

Number of people receiving survivors benefits. . . ..7.4 million

Number of children receiving survivors benefits......1.9 million

Average monthly benefit payment for a widowed 

mother or father with two children................$1,400

It is also important to know that--

approximately 1 in 5 of today's 20 year olds will die before reaching age 65;

Social Security survivors benefits for an average wage earner with a spouse and two

children are equivalent to a $300,000 life insurance policy.

____________________________________________________________

"I can't afford to save!"

The May-June issue of the Social Security Courier discussed the first two legs of

the three-legged stool of retirement support: pensions and Social Security. This

article on savings rounds out the series.

Many people say they can't afford to save. In today's world, you can't afford notto save.

No matter how little you earn, you should peg a few dollars as savings each month. There

are at least two good reasons to do so.

Advanced medical technology means longer life spans. Life expectancy

beyond retirement now ranges between 20 and 30 years. Most analysts project that

workers need to save 18 percent of their earnings to live comfortably throughout

retirement. While younger workers will not begin with a savings rate this high, they

should strive to reach this figure well before the end of their careers.

Many employers no longer offer pension plans. No longer can workers depend

on employers to provide one third of the amount needed for a comfortable

retirement. Many are getting out of the business of company pensions, and

encouraging employees to make up the difference with savings. Right now, threequarters of the workers in large businesses have employer-provided pensions,

compared to only one-quarter of workers in small businesses.

When you see your savings begin to grow, you'll want to add more, completing your

three-legged stool of support.

________________________________________________________________

U.S. General Store In Atlanta 

One-stop shopping for federal and local government services

Going from place to place to take care of business during the day can be complicated and

time consuming. That's why it's good to know that the Social Security Administration is

one of the government agencies to offer services with just one stop in Atlanta, Ga., site of
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the U.S. General Store for Small Business.

The store, located at 675 Ponce de Leon Avenue in Atlanta City Hall East, celebrated its

grand opening in June. It is the second such store of its kind created by federal agencies

in coordination with the Federal Executive Board and the National Performance Review.

The first opened in July 1995 in Houston, Texas.

Shirley S. Chater, Commissioner of Social Security, set the tone at the ribbon cutting

ceremony as she said, "Today, we're not just cutting the red ribbon; we're cutting the red

tape. We're getting everyone together in one location ready to give you all the information

you need. No longer do you need to race from one office to get information on your Social

Security payment to another for help with your Internal Revenue Service form. Here, there

is a team of experts ready to help you. We like to call it One Stop Shopping -- because just

like the General Store of old, everything you need is right here. And because of this unique

and exciting approach, working to serve you, and not just here at the General Store, but

throughout government, we are all winners."

Cross-trained customer service representatives are skilled in answering questions,

completing transactions and resolving problems. All services are free, including those from

Social Security. A Social Security representative answers general questions, sets up

appointments, and offers other Social Security services.

The layout resembles a bank, with counters for general services and desks for more

specialized assistance. Kiosks providing electronic information and transaction services are

also available. The store provides one-stop government services to businesses, ranging

from assistance in complying with regulations and solving tax problems to obtaining loans

for your business. 

____________________________________________________

KEEP IN MIND

Protect your tax refund

If you usually get a tax refund, but you owe Social Security money because you received

more benefits than you should have, you may not get your refund next year. The Internal

Revenue Service can reduce or withhold your Federal income tax refund to collect the

delinquent debt. To keep this from happening, you can pay your past-due debt by credit

card, cash, check, or money order. To pay by installments, you must make arrangements

with your local Social Security office.

When a non-citizen needs a Social Security number

Aliens with permission from the Immigration and Naturalization Service (INS) to work in

the United States, need a Social Security number. Also, federal laws require that aliens

who live in the U.S. but are not permitted to work have a Social Security number to be

claimed as a dependent on a tax return or to enlist in the U.S. military service.

State and local laws, conforming with federal law, may require a Social Security number to

transact business related to taxes, general public assistance, a driver's license, or

registration of a motor vehicle. Find out how to get the Social Security card you need by

calling 1-800-772-1213. 

______________________________________________________

WHAT'S NEW

Rules for stepchildren

As the result of a new law, a stepchild can receive benefits on a stepparent's earnings

record only if the child depends on the stepparent for at least one-half of his or her

financial support. The new law also requires that the stepchild's benefits end if the
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stepparent becomes divorced from the child's parent after June 30, 1996. The child's

benefits terminate in the month following the month the divorce becomes final. The

divorce must be reported to Social Security as soon as it becomes final.

New beneficiaries to be paid by direct deposit

People who plan to apply for Social Security benefits will have their monthly benefit

payment deposited into their bank account.

Beginning July 26, 1996, anyone who begins receiving a federal payment must use direct

deposit.That includes anyone who receives a benefit payment, federal wage, salary, or

retirement payment, or vendor and expense reimbursement payment. This includes new

Social Security beneficiaries. People already on the Social Security and Supplemental

Security Income (SSI) rolls who get checks will continue to be paid by check for the

present. Also, new beneficiaries who don't have a bank account will be paid by check.

Planning for Tomorrow

A free, nationwide satellite broadcast entitled "Social Security: Planning for Tomorrow" will

be aired September 18 (from 1-3 p.m. EDT) for the nation's employers and employees.

This live, interactive broadcast will be packed with valuable information workers need to

know as they plan their financial future. Viewers will learn that Social Security is more than

a retirement program. It also provides disability and survivor benefits that protect workers

(and their families) from loss of income if they become disabled or die before retiring.

These are the satellite coordinates: KU Band -- Telstar 401, 97 Degrees West, Transponder

K11 Full, Downlink Frequency 12040 MHz, Audio 6.2/6.8; C Band Telstar 402, 89 Degrees

West, Transponder 8 Horizontal, Downlink Frequency 3860 MHz, Audio 6.2/6.8.

If you don't have access to a satellite network, you may find one at your public library,

local college, or at another employer's facility in your area.

For more information, write to: Social Security Administration, "Planning for Tomorrow,"

Room 4100, Annex Building, Baltimore, Maryland 21235. Or you may access our Internet

Home Page at http:/www.ssa.gov.

Eastern European Jews benefit from agreement

Thousands of elderly German-speaking Jews who settled in the United States after fleeing

their Nazi-occupied homelands in Eastern Europe are now eligible for German Social

Security benefits. This comes as the result of a new U.S.-German agreement.

To apply, contact the nearest German consulate.

You may request more information from the Consulate or write to: 

Social Security Administration 

Office of International Policy 

P.O. Box 17741 

Baltimore, MD 21235 

Or you may access the Social Security Administration's Internet Home Page at

http://www.ssa.gov.

_____________________________________________________

CALL US! 

For more information about Social Security, call our toll-free number, 1-800-772-1213. You

may call this number to request a Personal Earnings and Benefit Estimate Statement (SSA7004) which gives an estimate of your Social Security benefit based on your lifetime

earnings; to request publications you may need; to apply for a new or replacement Social

Security card; to verify the amount of Social Security benefits you receive each month; and
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for other requests. The best times to call are late in the week and month.
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Social Security Today

Volume 1, Number 2 

September-October 1996

DIRECT DEPOSIT OF YOUR CHECK

If you apply for and receive Social Security or Supplemental Security Income (SSI) benefits, your monthly

benefit payment will go directly into your account at the bank, credit union or other financial institution. If

you're planning to apply for benefits, please bring information about your bank and account number with

you.

Advantages of Direct Deposit

Direct deposit is fast, efficient, cost effective and provides beneficiaries a degree of "security." When your

check goes directly from the U.S. Treasury to the bank, you have:

no paper check to be lost or stolen,

no waiting for the check to be delivered,

your assurance that your money gets to the bank

no waiting in line at the bank to cash your check.

Also, your money is available the same day you would have received a check.

Twenty-six Million People Can't Be Wrong

More than 60 percent of the 43 million people who get Social Security already receive their benefit by direct

deposit. Taxpayers would save $9.6 million a month if the 24 million Social Security and SSI beneficiaries

who now receive checks changed to direct deposit. That's because the government saves 40 cents each time

someone uses direct deposit instead of a check. It costs 42 cents to process and mail each check, compared

to 2 cents for direct deposit.

How to Switch

Beneficiaries who now get checks can easily switch to direct deposit. The next time you're in your bank, ask

about automatic enrollment. It is a new method by which the bank sends your account information directly

to Social Security. You don't have to contact Social Security.

For the present, Social Security will pay new beneficiaries who don't have a bank account by check.

However, they will be required to switch to direct deposit by January 1999. Those who don't have a bank

account at that time will have available to them a special debit-only account at a designated bank.

WELFARE REFORM:

New Law Changes SSI Rules

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 was signed by the President on

August 22, 1996. It changes the Supplemental Security Income (SSI) rules for children, noncitizens and

others. A summary of the major provisions follows.

SSI for Children

JUN OCT FEB

9

1996 1997 2001

5 captures

13 Jun 97 - 9 May 01

Cl

H
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A new definition of disability requires that, to qualify, children must have more serious physical and mental

limitations than before. Because of these changes, some children may no longer be considered disabled. The

law requires us to review the cases of certain children who are now eligible for SSI to see if they are

disabled under the new definition.

Continuing disability reviews will be conducted every three years for children under age 18. These reviews

must also be done no later than 12 months after birth for infants whose eligibility was based on low birth

weight. When recipients attain age 18, Social Security will redetermine their eligibility using the rules for

adults filing new claims.

In addition to the new definition of disability, the reforms affect children who live in certain institutions

where private health insurance pays for their care. The monthly payment for these children will be reduced

to $30. Before, the $30 SSI payment applied only when Medicaid paid more than half the cost of their care.

The new law requires that Social Security notify all people affected by these changes. Over 300,000 notices

to the representative payees of disabled children will be mailed in November and December.

SSI for Noncitizens

The new law changes the way we pay SSI to noncitizens. Only those people in the following categories may

receive SSI:

Refugees, people granted asylum and aliens whose deportation has been withheld (subject to a fiveyear eligibility limit).

Certain active duty military personnel and honorably discharged veterans of the U.S. Armed Forces.

Spouses and unmarried dependent children of military personnel or veterans may also qualify.

Noncitizens who have been lawfully admitted for permanent residence and have a total of 40 quarters

of work.

During February and March 1997, notices will be send to over 1,000,000 recipients affected by these

changes.

Other Changes

The new law provides for payments of up to $400 to some correctional institutions that give information

leading to timely suspension of SSI payments. It also denies eligibility for people who are fleeing

prosecution, fugitive felons, and those violating a condition of probation or parole.

People who are convicted of making fraudulent statements about their residence to get benefits in two or

more states will be denied benefits for 10 years.

For more information about provisions of this new law, contact your local Social Security office.

COMMISSIONER'S MESSAGE

Shirley S. Chater, Commissioner of Social Security

As we do each year, the Social Security Administration recently prepared a report that shows our progress in

providing world-class service to our customers. I'd like to share a few highlights with you.

When you contact a Social Security office, you have the right to expect to be treated with courtesy, to have

your requests handled by knowledgeable, helpful public servants, and to receive service swiftly and

efficiently. We are making certain that your expectations are met.

You have told us that we are doing well. In a survey of people who were served by Social Security in 1995,

79 percent said our service was a good or better than the best service they have received from other

government agencies. We are pleased with this success.
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Our toll-free telephone service has been rated in an independent survey as superior to phone service from

private sector companies such as Federal Express and LL Bean. In 1995, we handled 62.3 million telephone

calls -- up to 1.5 million calls a day on our busiest days. And with more people preferring to use the phone

to do their Social Security business, we are continuing to assign staff to provide responsive, courteous

service on 1-800-772-1213. In fiscal year 1995, 72.5 percent of all callers reached our toll-free number

within five minutes of first dialing. And, since early this year, when major improvements were made in the

agency telecommunications system, that number has risen to over 90 percent on all but our busiest days.

In this cyberspace age, Social Security is on the cutting edge of computer communications. The agency's

home page on the World Wide Web, Social Security Online, has won praise as a top site on the Internet.

It features up-do-date information on Social Security programs and services, and offers computer users the

opportunity to communicate with us via e-mail. The public accesses our home page about 50,000 times each

month.

Social Security also handles large volumes of customer mail, answering about 10,000 letters last year.

When applying for benefits or conducting other business, customers may make appointments at local offices.

In fiscal year 1995, 84 percent of visitors with appointments were served within 10 minutes of their arrival.

And 90 percent say they are pleased with Social Security's office locations and hours.

Our workload measurements show that we processed over 16.8 million requests for new or replacement

Social Security cards; over 235 million reports of earnings; over seven million claims for retirement, disability,

survivors and Supplemental Security Income benefits; and over 95 million adjustments to beneficiary

records.

At Social Security, we focus on becoming the nation's best at providing world-class service. With each new

service innovation, the agency moves a step closer to that goal.

If you would like a copy of our full report, "Social Security: Report to Our Customers," please send us a fax

at 410-965-0696, or telephone us at 410-965-0921.

MEET TWO BENEFICIARIES

Appreciation of Social Security benefit increases with age for 92-year-old couple

An old adage says "The afternoon knows what the morning never expected." Nicholas and Filomena

Giannuzzi, of Howard Beach, N.Y., are both 92 years old, and they now know from firsthand experience the

value of a Social Security program that they were uncertain about in younger days.

"When I first started making contributions for old-age insurance benefits," Nicholas said, "I had no idea how

much I would depend upon Social Security in the future." Both he and Filomena have now been receiving

Social Security retirement benefits for 27 years. Nicholas was 31 years old when the original Social Security

Act was passed in 1935. When the first Social Security tax was deducted from his check in January, 1937, he

was 33 and he and Filomena had just marked their eighth anniversary.

At the time, Nicholas worked as a tool and dye maker, but later taught school. Filomena stayed at home

with their three children. When Nicholas and Filomena turned 65 in 1969, he filed for Social Security

retirement benefits in Brooklyn. Filomena, also 65, was entitled to Social Security spouse benefits.

Under Social Security, a woman who is not eligible for Social Security benefits on her own work record is

entitled to a benefit equal to as much as 50 percent of her husband's benefit. A married woman who works

can get a benefit based on her own earnings--plus any difference between her own benefit and a spouse's

benefit.

"I would never have been able to retire if it hadn't been for Social Security," said Nicholas. "I'm very grateful

for the income it provides for me and my wife." Social Security benefits to the Giannuzzi's over the years

have amounted to many times the amount of the Social Security taxes he paid while working.
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__________________________________________________________

Meet Two Beneficiaries--SIDEBAR

Over 26 million retired workers and 3 million dependents of those workers receive Social Security

benefits each month.

Ninety-five percent of those age 65 and older receive benefits or will be eligible for benefits when

they or their spouses retire.

Thirty-eight percent of people over age 65 would live in poverty if they did not receive Social

Security benefits.

The average retired worker receives $720 a month in benefits, which equals about 42% of

earnings before retirement.

The retirement age will raise gradually to 67 for people born in 1960 or later.

_________________________________________________________

WHEN TRAGEDY STRIKES

World class service went world-wide following the tragic loss of lives of those aboard TWA Flight 800. At

11:30 a.m., a message came from Italy across the Internet to Social Security headquarters in Baltimore. It

said simply, "I lost my wife in the TWA flight 800. She was part of the working crew. What do I need to do

to settle the matter with Social Security? Please give me all useful information."

The receiving office recognized the urgency of the message, and took it to the office responsible for

handling international claims. By 4:00 p.m., using the Internet, Social Security sent the name, address and

phone number of persons to contact at the U.S. Embassy in Rome or the American Consulate General in

Naples. We alerted both offices that the widower might call.

One week later, the widower, Professor Antonio DiLuccio, caught a train to the Consulate in Naples. At that

time, he applied for the $255 lump sum death benefit and returned later to file claims for survivors benefits

for the couple's two children.

_________________________________________________________

When Tragedy Strikes--SIDEBAR

To help families who file claims following a disaster that involves the loss of many lives, Social Security

uses special procedures. These involve:

Sending a Social Security representative to the site of the disaster to take claims.

Working with relief agencies to help identify victims.

Using a passenger manifest or newspaper account listing the identified victims as evidence of death.

Estimating the most recent earnings so as to compute the highest possible benefit.

_________________________________________________________

PROFILE ON WORLD CLASS SERVICE

Hospital Patients Receive Service On Site

Social Security provides world-class service to you even when you're hospitalized. A joint effort by employees

from the Chicago Near Southwest (NSW) Social Security Office and the Cook County Hospital now makes it

possible for people to apply for disability benefits without having to call or visit a Social Security office. The

largest public hospital in the United States, Cook County is part of Chicago's Westside Medical Center, which
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also includes four other hospitals, a rehabilitation facility, and a psychiatric facility.

Every day, six interviewers from the Chicago NSW office travel to the hospital to conduct bedside interviews

with patients. Hospital staff helps the interviewers by quickly providing the needed medical records. By

interviewing at the hospital and teaming with hospital staff, claimants receive their benefit checks three

weeks sooner than before, and the cost of processing claims is lower.

In 1995, more than 2900 claims for disability benefits were processed through the joint efforts of Cook

County staff and Social Security personnel. Currently, Social Security interviewers process an average of 55

claims each month, which includes claims taken from patients in all Westside Medical Center facilities.

The Chicago NSW office recently received the government's prestigious Hammer Award for their Cook

County project. At the award ceremony, Shirley S. Chater, Commissioner of Social Security, stated, "The

success of this project has taught us that teamwork is a good way to make life better for the people we

serve. This project is a model for what we can accomplish by forging a partnership with hospitals in other

cities. By seeking ways to streamline the claims process and expedite collection of evidence, we can provide

the best possible service to our customers."

PUBLISHER'S BOX

Social Security Today provides 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 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 Blvd.

Baltimore, MD 21235,

or fax to 410-965-0696, 

or 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 two 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.

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. 
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___________________________________________________

KEEP IN MIND

Requests for Information From Social Security Records

When members of the public request information from Social Security records by telephone, Social Security

employees must take certain steps to identify the caller. While these steps may seem cumbersome at times,

there's a reason for it.

Because Social Security keeps personal information on millions of people, we must be very careful to verify

the identity of the people who call us.

If you ask a friend or family member to call Social Security, you need to be with them when they call so we

will know that you want them to help. (The natural parent or legal guardian can speak for a minor child.)

Every American should enjoy the confidence of knowing that the personal information they give to Social

Security remains private.

False Advertising Victimizes the Unwary

Misleading advertisers victimize Americans by printing "Social Security" on their literature to entice the public.

Besides trying to sell a product, firms also try to sell a service. For a fee, of course. The public is often

unaware that they can obtain information at no cost from the Social Security Administration.

If you suspect you have received misleading advertising, send the complete mailing, including the envelope

to: Office of the Inspector General, Room 300 Altmeyer Building, Social Security Administration, 6401

Security Blvd., Baltimore, MD 21235. Also, you may call our toll-free number 1-800-772-1213 and request

the factsheet Misleading Advertising.

Toward Better Privacy

Avoid giving your Social Security number when you don't have to. You must give your Social Security

number to get a job. Also, because your Social Security number is the identification number used by the

Internal Revenue Service, you must show it when filing taxes, opening a bank account, buying stocks or

savings bonds, and other instances involving money. You also must show it to enlist in the U.S. military.

State and local governments use the Social Security number to administer laws related to public assistance,

food stamps, drivers' license and the registration of motor vehicles. Some states have laws requiring your

Social Security number to receive state services; in other states giving your number is voluntary. If you

aren't sure, be sure to ask!

If a business or other private enterprise asks for your Social Security number, you can refuse to give it.

However, that may mean doing without the purchase or service for which your number was requested.

Social Security Reference Works on CD-ROM

One compact disk containing three, major Social Security publications can now be purchased from the

Government Printing Office (GPO). They are the Program Operations Manual System, Social Security

Handbook, and the Social Security Rulings and Acquiescence Rulings.

A 12-month subscription costs $234. Mail requests for the CD to Superintendent of Documents, P.O. Box

371954, Pittsburgh, PA 15250-7954. Include a check payable to the Superintendent of Documents.

The GPO will also accept fax orders on (202) 512-2250, or you may call (202) 512-1800. For these orders,

say whether paying by VISA or MasterCard and include the card number and expiration date.
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800 Number Automated Service

Many calls to Social Security can now be handled by automated equipment. You can request an application

for a Social Security card, a Personal Earnings and Benefit Estimate Statement, proof of your current benefit

or directions to your local field office, all without having to speak to a representative. Automated services are

available 24 hours a day, 7 days a week.

Annual Report Eliminated

If you're receiving Social Security benefits while you're working, you may never have to send the Social

Security Administration another annual report of earnings. SSA has eliminated the separate report for most

beneficiaries beginning in January 1977. Instead, SSA will adjust benefits using the earnings reported by

employers on W-2s or income reported on self-employment tax returns. To avoid paying you too little or too

much, SSA will send you a notice sometime in August to ask whether your earnings have changed during the

year. You'll also be asked to estimate your 1997 earnings.

Trust Fund Data on the "Net"

Are the Social Security trust funds a mystery to you? Don't worry. If you surf the "net," it's easy to keep in

touch with the latest information about the Social Security trust funds. Use this Internet address:

http://www.ssa.gov/OACT.

You'll find monthly reports on the invested assets of the Old-Age and Survivors Insurance and the Disability

Insurance (OASDI) Trust Funds. The reports show the amount held at the end of the month by type of

security, interest rate, and maturity date for each trust fund.

You'll also find up-to-date monthly information on trust fund income and expenditures. The income consists

of taxes paid by employees and employers, money received from the taxation of benefits, interest on

investments, and other income such as reimbursements from the Treasury and gifts from citizens.

Expenditures consist of benefit payments, annual transfers to the Railroad Retirement program for its role in

collecting Social Security taxes and paying Social Security-equivalent benefits, and the OASDI program's

administrative expenses. Data also are available on beneficiaries receiving monthly benefits and on benefits

awarded.

Although some concerns revolve around the future of the trust funds, the Social Security Board of Trustees

projects the system has enough money to pay full benefits for the next 32 years. This means there is time

for Congress to make changes to safeguard the program's financial future. If no changes are made, trust

funds will be exhausted in 2029, but even then Social Security will be able to pay 77 percent of benefits

from incoming revenues.

Fast Fact

To help motor vehicle agencies keep accurate records, Social Security will, on request, verify that the Social

Security number a person gives when filing for a drivers' license matches other identifying information in its

records.