Annual Report 

of the

Supplemental

 Security

 Income Program

Social Security Administration

May 2005
.
SOCIAL SECURITY

The Commissioner

May 27, 2005

President George W. Bush

The White House

Washington, D.C.

The Honorable J. Dennis Hastert

Speaker of the House of Representatives

Washington, D.C.

The Honorable Richard B. Cheney

President of the Senate

Washington, D.C.

Gentlemen: 

I have the honor of transmitting to you the 2005 Annual Report of the Supplemental Security

Income Program (the ninth such report), in compliance with section 231 of the Personal

Responsibility and Work Opportunity Reconciliation Act of 1996.

In my commitment to SSA’s mission of managing America’s social security programs, two of

my top goals are: (1) delivering quality citizen-centered service in a timely and efficient manner,

and (2) providing accountable stewardship to taxpayers by ensuring superior financial,

performance and budget management and integrity in all payments, records and processes.

Emphasizing these two goals is particularly important for the SSI program. I hope that the

contents of this report will enable you to understand how seriously we take our role in this area.

Sincerely,

Jo Anne B. Barnhart

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001
.
EXECUTIVE SUMMARY

In the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193),

the Congress required the Commissioner of Social Security to report annually to the President and to the

Congress on the status of the Supplemental Security Income (SSI) program. A required element of these

reports is to provide projections of program participation and costs through at least 25 years. This report is

the ninth of such reports, and following are its major highlights and findings. 

Highlights of the SSI Program

 • The SSI program is a nationwide Federal assistance program administered by the Social Security

Administration (SSA) that guarantees a minimum level of income for needy aged, blind, or disabled

individuals. It acts as a safety net for individuals who have little or no Social Security or other income

and limited resources.

 • In January 2005, 6.8 million individuals

received monthly Federal SSI payments averaging $404 versus 6.6 million with an average

payment of $393 in January 2004.

 • Federal expenditures for cash payments under

the SSI program during calendar year 2004

increased 3.8 percent to $34.2 billion, and the

cost of administering the SSI program in fiscal

year 2004 increased 5.6 percent to

$2.8 billion. In 2003 the corresponding Federal expenditures and cost of administering

the SSI program were $32.9 billion and $2.7

billion, respectively.

Major Findings of the Report

 • By 2029, the end of the 25-year projection

period, the Federal SSI recipient population is

estimated to reach 8.7 million. The projected

growth in the SSI program over the 25-year period is largely due to the overall growth in the U.S.

population. The rate of participation is projected to vary somewhat by age group, with the overall participation of the 65 or older age groups projected to decline and the participation of the under 65 age

groups projected to increase slightly.

 • Expressed as a percentage of the total U.S. population, the number of Federal SSI recipients remained

essentially level at 2.2 percent in 2004, and is projected to increase gradually to 2.4 percent of the

population by 2029. 

 • Federal expenditures for SSI payments in calendar year 2005 are estimated to increase by $2.2 billion

to $36.4 billion, an increase of 6.4 percent from 2004 levels.

 • In constant 2005 dollars, Federal expenditures for SSI payments are projected to increase to $45.8 billion in 2029, a real increase of 1.1 percent per year.

 • When compared to the Gross Domestic Product (GDP), Federal SSI expenditures are projected to

decline over time, from the current level of 0.29 percent of GDP in 2004 to 0.24 percent of GDP by

2029. 

Disabled 65

or older

8%

Aged

12%

Disabled

under 18

18%

Disabled

18-64

62%

 SSI Federal Payments, Calendar Year 2004

$34.2 billion

(VII)

CONTENTS

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

A. RECENT PROGRAM EXPERIENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

B. SSI LEGISLATION SINCE THE 2004 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

C. CURRENT ISSUES FACING THE SSI PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . 6

A. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

B. THE BASIC PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

D. ASSISTANCE OF LAST RESORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

1. Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

3. Filing for Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

4. Eligibility Issues for Residents of Public Institutions or Medical Facilities . . . . . . . . . . . . 11

5. Personal Needs Allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6. Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

a. Spouse-to-Spouse Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

b. Parent-to-Child Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

c. Sponsor-to-Alien Deeming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 13

1. Earned Income Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2. Impairment-Related Work Expense Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

3. Work Expenses of the Blind Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4. Student Earned Income Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

5. Plan for Achieving Self-Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6. Special Provisions for Disabled People Who Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

7. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

8. Expedited Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

F. ADMINISTRATION OF THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

1. Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

5. Appeal Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

6. Fees for Attorneys and Non-attorney Representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

7. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2. Mandatory State Supplementary Payment Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3. Administration of State Supplementary Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4. Passalong Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
(VIII)

H. COORDINATION WITH OTHER PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

1. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2005-29 . . . . . . . . . 24

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . 27

C. FEDERAL PAYMENTS UNDER SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT . . 46

E. THE SSI PROGRAM’S SHARE OF SSA’S ADMINISTRATIVE COSTS 

AND BENEFICIARY SERVICES COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

V. APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

1. Basic Eligibility Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

2. Other Eligibility Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

a. Citizenship and U.S. Residency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

c. Drug Addiction and Alcoholism (DA&A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . . . . . . 55

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

3. Federal Benefit Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

f. Penalties for False or Misleading Statements or Withholding of Information. . . . . . . . . 58

4. Federal Benefit Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

5. Exclusions from Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

6. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

c. Transfer-of-Assets Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . . . . . . . 67

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

9. State Supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

10. Overpayment Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(IX)

C. HISTORICAL ALLOWANCE DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA 83

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 91

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . 93

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 97

1. Program Participation Data from the Supplemental Security Record (SSR). . . . . . . . . . . . 97

2. Program Participation Data from the Survey of Income and Program Participation (SIPP) 98

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

1. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

a. Analyses Using Survey of Income and Program Participation Data . . . . . . . . . . . . . . . . 99

b. National Survey of Children and Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

c. Evaluation of the Ticket to Work Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

d. Homeless Outreach Projects and Evaluation (HOPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

e. Youth Transition Demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

f. Florida Freedom Initiative (FFI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

g. Disability Program Navigators. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

h. Interim and Ongoing Medical Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

2. Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

III.H1 SSI State Supplementation and Coordination with Other Programs . . . . . . . . . . . . . . . . . . . . 23

IV.A1 Historical and Projected Population in the Social Security Area based on the 

Intermediate Assumptions of the 2005 OASDI Trustees Report, as of July 1, 1974-2029. . . . 25

IV.A2 SSI Federal Benefit Rate Increases and Levels: Historical and Projected on the Basis of

the Intermediate Assumptions of the 2005 OASDI Trustees Report, 1974-2029 . . . . . . . . . . . 26

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2029 . . . . . . . . . . . . . . . . . . 28

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2029. . . . . . . . . . . . . . . . . . 30

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2029 . . . . . . . 32

IV.B4 SSI Federally-Administered Terminations Due to Reasons Other Than Death, 

Calendar Years 1974-2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2029 . . . . . 34

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2029 35

IV.B7 SSI Recipients with Federal Benefits in Current-Payment Status as a Percentage of 

Selected Social Security Area Population Totals, as of December, 1974-2029 . . . . . . . . . . . . 37

IV.B8 SSI Recipients with Federally-Administered State Supplementary Benefits Only,

in Current-Payment Status as of December, 1974-2029 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

IV.B9 SSI Recipients with Federally-Administered Benefits in Current-Payment Status 

as of December, 1974-2029. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2005 . . . . . . . . . . . . . . . . . . 41

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2005 . . . . . . . . . . . . . . . . . . . . . 42

IV.C3 SSI Federal Payments in Constant 2005 Dollars, Calendar Years 1974-2029 . . . . . . . . . . . . . 44

IV.C4 SSI Federally-Administered State Supplementary Payments in Current Dollars, 

Calendar Years 1974-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2004 . . . . . . . . . 45

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2029 . . . . . . . . . . . . . . 47

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . 48

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

V.C1 Disabled Adult Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

V.C2 Disabled Child Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

V.D2 SSI Disabled Adult Reviews: Disposition of Continuing Disability Medical Reviews by

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

V.D3 SSI Disabled Child Reviews: Disposition of Continuing Disability Medical Reviews by

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
(XII)

V.E1 SSI Federally-Administered Blind or Disabled Working Recipients as of 

December, 1987-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

V.E2 SSI Federally-Administered Blind or Disabled Individuals with SSI Recipient Status

Participating in Other Work Incentives as of December, 1990-2004 . . . . . . . . . . . . . . . . . . . . 93

V.E3 Average Monthly Earnings of SSI Federally-Administered Blind or Disabled Working

Recipients, as of December, 1987-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2004 . . . . . . . 96

V.F1 Percentage of SSI Federally-Administered Recipients in Current-Payment Status

with Participation in Selected Programs Based on SSA Administrative Records, 

December, 2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

V.F2 Percentage of Noninstitutionalized SSI Federally-Administered Recipients with

Participation in Selected Programs Based on Data Collected Under Wave 3 of the

Survey of Income and Program Participation Matched to SSA Administrative Records, 

December, 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1975-2030 . . . . . . 29

IV.B2 SSI Federally-Administered New Entrants by Age Group, Calendar Years 1975-2030. . . . . . 31

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1975-2030 . . . . . . 35

IV.B4 SSI Recipients with Federal Benefits in Current-Payment Status, by Age Group, 

as of December, 1975-2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

IV.B5 SSI Recipients with Federal Benefits in Current-Payment Status as a Percentage of 

Selected Social Security Area Population Age Groups, as of December, 1975-2030 . . . . . . . 38

IV.C1 SSI Federal Payments, by Age Group, in Constant 2005 Dollars, Calendar Years 1975-2030 43

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1975-2030. . 46

V.E1 SSI Federally-Administered Blind or Disabled Working Recipients 

as of December, 1987-2004. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
.
1

I. INTRODUCTION

The Supplemental Security Income (SSI) program was established by Congress in 1972, with payments

beginning in January 1974. It is administered by the Social Security Administration (SSA). SSI replaced

the former Federal-State programs of Old-Age Assistance (OAA), Aid to the Blind (AB), and Aid to the

Permanently and Totally Disabled (APTD) in the 50 States and the District of Columbia. Residents of the

Northern Mariana Islands became eligible for SSI in January 1978.

Under the SSI program, each eligible person living in his/her own household and having no other countable income is provided in 2005 a monthly Federal cash payment of $579 ($869 for a couple if both members are eligible). Since 1975, these Federal SSI benefit rates have been increased by applying the same

cost-of-living adjustment that has been applied to benefits under the Old-Age, Survivors, and Disability

Insurance (OASDI) program. In addition to setting a Federal benefit standard, the legislation establishing

SSI also permitted individual States to supplement the Federal payment with an additional monthly

amount. As described in section III, these State supplementation payments can be either voluntary at the

option of the individual States or, in certain cases, mandatory under requirements in effect when the SSI

program began.

Under section 231 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, the

Commissioner of Social Security is required to submit a report on the SSI program to the President and

Congress no later than May 30 of each year. This is the ninth annual report on the SSI program. The legislative mandate requires that the report include:

 • A comprehensive description of the SSI program;

 • Historical and current data relating to (1) claims intake and dispositions at all levels of decision making; (2) demographic information about recipients, including program cost and prior enrollment in

other public benefit programs; (3) redeterminations, continuing disability reviews, and utilization of

work incentives; (4) administrative costs; and (5) State supplementation program operations; 

 • 25-year projections of future participation rates and program costs; 

 • A historical summary of statutory changes to title XVI of the Social Security Act; and

 • Summaries of any relevant research on the SSI program by SSA or others.

In addition, the legislation specified that the report may include views of the SSI program by the Social

Security Advisory Board.

Much of the required information is the subject of extensive ongoing research. In responding to each of the

specific requests for information, every effort has been made to provide the best information available at

this time. SSA will continue to make improvements upon such information, in order to provide the President and Congress with the input necessary to effectively manage this important part of our society’s

social safety net.
2005 SSI Annual Report

2

II. HIGHLIGHTS

The Supplemental Security Income (SSI) program is a nationwide Federal assistance program administered by the Social Security Administration (SSA) that guarantees a minimum level of income for needy

aged, blind, or disabled individuals. This section presents highlights of recent SSI program experience, a

summary of important changes to the program in the last year, a discussion of current issues facing the SSI

program, and a summary of the key results from the 25-year projections.

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During calendar year 2004, 1.9 million individuals applied for SSI benefits based on blindness or disability, an increase of 8 percent over 2003. An additional 138 thousand applied for SSI benefits based

on age, an increase of 2 percent from 2003. In 2004, 862 thousand applicants were awarded SSI benefits, an increase of 4 percent over the 828 thousand awarded benefits in 2003.

 • On average during calendar year 2004, 6.7 million individuals received Federal SSI benefits on a

monthly basis. This group was composed of 1.1 million aged recipients, 5.5 million disabled recipients, and 71 thousand blind recipients. Of the 5.5 million blind or disabled recipients, 0.7 million

were aged 65 or older. During the year, 7.6 million aged, blind, or disabled individuals received at

least 1 month’s Federal SSI benefit.

 • Federal expenditures for cash payments under the SSI program in calendar year 2004 totaled $34.2

billion, up from $32.9 billion in 2003.

 • On average during calendar year 2004, 2.5 million individuals received Federally-administered State

supplementary payments on a monthly basis. This group was composed of 0.6 million aged recipients, 1.9 million disabled recipients, and fewer than 50 thousand blind recipients. During calendar

year 2004, 2.8 million individuals received at least 1 month’s Federally-administered State supplementary payment.

 • State expenditures for Federally-administered supplements, excluding fees for Federal administration,

totaled $4.2 billion in calendar year 2004, up from $4.0 billion in 2003.

 • The percentage of SSI recipients participating in direct deposit more than doubled from 24 percent in

1995 to 49 percent in 2000, and has continued to increase, reaching 54 percent in 2004.

 • The cost of administering the SSI program in fiscal year 2004 was $2.8 billion, which was roughly

7 percent of total Federally-administered SSI expenditures.

 • In January 2005, 7.0 million individuals received Federally-administered monthly SSI benefits averaging $436. Of these, 6.8 million received monthly Federal SSI payments averaging $404, and

2.2 million received monthly State supplementation payments averaging $153.

B. SSI LEGISLATION SINCE THE 2004 ANNUAL REPORT

 • Since the 2004 SSI Annual Report was transmitted to the President and Congress on May 28, 2004,

there have been no legislative changes enacted that would have a significant effect on Federal expenditures made under the SSI program.
3

2005 SSI Annual Report

C. CURRENT ISSUES FACING THE SSI PROGRAM

Since last year’s annual report, the SSI program has continued to meet its objective by providing cash

assistance to almost seven million of the nation’s most vulnerable aged, blind and disabled individuals.

But as the SSI program continues to play a crucial role in the lives of these beneficiaries, it must also continue to evolve in a manner that allows for efficient program administration and results-oriented outcomes.

To this end, SSA continues to work on program integrity, SSI simplification, and other long-term objectives. 

Stewardship Issues

SSA continues to address program integrity through steady progress in carrying out the Corrective Action

Plan, as implemented through the ongoing efforts of the SSI Improvement Team. Under the Team’s direction, SSA has studied the use of touch-tone and voice recognition telephone technology in the reporting of

monthly wages, and is also evaluating the use of a centralized unit for wage reporting as opposed to localized, field office collection of such information. Final evaluation of the automated telephone study showed

the dollar accuracy of reported wages to be 92.2 percent, as compared to a 75.5 percent accuracy rate for

wage estimates on the Supplemental Security Record (SSR) before the reports. The one-year centralized

wage reporting pilot began in January 2005. Both of these studies are part of SSA’s effort to find the most

efficient and user-friendly manner in which beneficiaries and deemors can report earnings. 

Another study has focused on access to information held by financial institutions—an automation of the

bank account verification process currently used to evaluate an applicant’s accounts against the SSI

resource limits. Using a third-party vendor to electronically request bank account information on SSI

applicants, SSA was able to secure participation of 74 percent of all financial institutions within the New

York/New Jersey demonstration area, including 23 of the 24 largest national institutions. By utilizing data

supplied through the electronic exchanges, SSA found undisclosed accounts in more than 15 percent of

cases. The Agency is expanding the study based on the initial results, and working to identify common

case characteristics that might lead to a more targeted and efficient approach for uncovering unreported

bank accounts.

The Continuing Disability Review (CDR) process continues to play an important role in assuring that only

those persons who meet the standard of disability under the law stay on the benefit rolls. In FY 2004, SSA

conducted under its centralized process over 575,000 SSI-only CDRs, an increase of 51,000 over FY

2003. SSA estimates that the present value of lifetime SSI program savings resulting from these CDRs

conducted in the past year will be close to $2 billion. Redeterminations (in which all factors of eligibility

other than disability are reevaluated) also perform an important stewardship role. For FY 2004, SSA completed more than 2.2 million redeterminations, with an estimated $2.18 billion in savings (with consideration of overpayment recovery and future overpayment prevention) to the SSI program.

Finally, stronger debt collection tools have aided SSA in the recovery of outstanding SSI overpayments.

Cross-program recovery—the collection of an SSI overpayment through withholding of Social Security

benefits—has led to the collection of $138 million in the period since the program’s inception (April 2002)

through FY 2004. Expansion of this program, based on new legislative authority provided under the Social

Security Protection Act of 2004 (P.L. 108-203), is now allowing collection from Social Security benefits

even if the overpaid individual remains eligible for SSI. In addition to the cross-program recovery methods, credit bureau referrals and administrative offset have contributed substantially to SSA’s efforts to protect taxpayer funds.

An indication of the progress that SSA is making in its stewardship of the SSI program can be found in the

results of OMB’s Program Assessment Rating Tool (PART). The PART is a systematic method of assess-
2005 SSI Annual Report

4

ing the performance of programs across the Federal Government. It is a diagnostic tool used to identify

program strengths and weaknesses in four areas: (1) program purpose and design; (2) performance measurement, evaluations, and strategic planning; (3) program management; and, (4) program results. In 2004,

the SSI program was examined using PART, and the results were published in the President’s FY 2006

Budget. Under the PART rating system, the SSI program was found to be “moderately effective,” which is

the second highest of four PART effectiveness measures. Most important, however, OMB’s PART findings

regarding SSI issues for areas of the SSI program that require improvement are consistent with issues that

have been identified and addressed in the SSI Corrective Action Plan. 

Legislative Proposals and Regulatory Changes

In continuing efforts to improve and simplify the SSI program, the President’s FY 2006 budget includes a

number of SSI related legislative proposals. These proposals would: 1) eliminate the dedicated account

requirement in situations where a disabled child lives with his/her representative payee parent; 2) treat

most cash military compensation as earned income for SSI purposes; 3) require a quality assurance review

for 50 percent of SSI disability and blindness allowance determinations; and 4) for refugees and other noncitizens in refugee-like situations, temporarily expand from 7 to 8 years the length of time-limited eligibility for SSI benefits. 

Other developments within the SSI program have focused on regulatory efforts to simplify the consideration of income and resources. Effective March 9, 2005, SSA changed several rules related to SSI eligibility: 

 • Clothing has been eliminated from the definitions of income and in-kind support and maintenance; 

 • The dollar value limit on the exclusion of household goods and personal effects has been removed;

and, 

 • One automobile has been completely excluded from resources, if used to provide necessary transportation.

Meeting the Needs of Beneficiaries

As the analysis and debate about Social Security reform continues, issues relating to the SSI program may

also need to be addressed. Since its inception, SSI has acted as an adjunct to the Old-Age, Survivors, and

Disability Insurance (OASDI) programs in that SSI benefits were designed to fill the income needs of

aged, blind, or disabled individuals who either did not receive OASDI or whose OASDI benefit amounts

were below a level specified by Congress as a minimum floor of income. The Ways and Means Committee

stated in its report on H.R. 1, the Social Security Amendments of 1972 (P.L. 92-603) that SSI was designed

to meet the basic needs of “people who because of age, disability or blindness are not able to support

themselves through work (and who) may receive relatively small Social Security benefits.” Contributory

social insurance, the Committee concluded, “must be complemented by an effective assistance program.”1

Because SSI was intended to work in conjunction with the OASDI program as it existed in 1972, and as

the programs’ relationship is unchanged since then, the purpose and design of the SSI program may need

to be updated if Social Security reform results in substantive OASDI program changes.

1 Committee on Ways and Means Report on H.R. 1, p. 147, May 26, 1971.
5

2005 SSI Annual Report

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS

The major findings in the 25-year projections prepared for this report are summarized below:

 • Following small declines in the SSI recipient population in the late 1990s due to the combined impact

of Public Law 104-121 and Public Law 104-193, modest growth in the SSI rolls resumed in 2000, and

is expected to continue throughout the projection period largely due to the growth in the U.S. population. By 2029, the Federal SSI recipient population is estimated to reach 8.7 million. Expressed as a

percentage of the total U.S. population, the number of Federal SSI recipients is projected to increase

slightly from 2.2 percent of the population in 2004 to 2.4 percent by 2029. 

 • Federal expenditures for SSI payments in calendar year 2005 are estimated to increase by $2.2 billion

to $36.4 billion, an increase of 6.4 percent from 2004 levels. In constant 2005 dollars, SSI program

outlays are projected to increase to $45.8 billion in 2029, a real increase of 1.1 percent per year. 

 • When compared to the Gross Domestic Product (GDP), Federal SSI expenditures are projected to

decline over time, from the current level of 0.29 percent of GDP in 2004 to 0.24 percent of GDP by

2029.
2005 SSI Annual Report

6

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM 

This section presents a brief history and comprehensive description of the SSI program. This section also

includes information on the administration of the program and coordination with other programs.

A. BACKGROUND

Federal entitlement programs for the aged, blind, or disabled have their roots in the original Social Security Act of 1935. That Act established an old-age social insurance program to be administered by the Federal Government and an old-age means-tested assistance program to be administered by the States. Similar

programs for the blind or disabled were added to the Act in later years. Means-tested assistance provided a

safety net for individuals who were either ineligible for Social Security or whose benefits could not provide a basic level of income.

This means-tested assistance comprised three separate programs—Old-Age Assistance (OAA), Aid to the

Blind (AB), and Aid to the Permanently and Totally Disabled (APTD). Despite substantial Federal financing, these programs were essentially State programs. Federal law established only broad guidelines for

assistance. The Federal Government provided matching funds to support whatever payment levels the

States established, with no maximum or minimum standards. Consequently, each State was responsible for

setting its own standards for determining who would get assistance and how much they would receive.

Beginning in the early 1960s, this State-operated, Federally-assisted welfare system drew criticism that

was directed at the “crazy quilt” eligibility requirements and payment levels. Other criticism centered on

specific requirements, such as lien laws and provisions that required certain relatives to bear responsibility

for the maintenance of needy family members.

Responding to these concerns, Congress passed and the President approved the SSI program in 1972,

reversing the Federal and State roles with regard to adult assistance. Under the new arrangement, SSI

would provide a uniform Federal income floor while optional State programs supplemented that floor. The

new program was historic in that it shifted from the States to the Federal Government the responsibility for

determining who would receive assistance and how much assistance they would receive. 

B. THE BASIC PLAN

The main objective of the SSI program is to provide the basic cash support of needy aged, blind, or disabled individuals. Congress designed the SSI program based on the following principles:

 • Eligibility requirements and benefit standards that are nationally uniform and eligibility determinations based on objective criteria;

 • An assistance source of last resort for the aged, blind, or disabled whose income and resources are

below specified levels;

 • Incentives and opportunities for those recipients able to work or to be rehabilitated that would enable

them to reduce their dependency on public assistance;

 • An efficient and economical method of providing assistance;

 • Inducements to encourage States to provide supplementation of the basic Federal benefit and protection for former recipients of State adult assistance programs who were converted to the SSI program;

and
7

2005 SSI Annual Report

 • Appropriate coordination of the SSI program with the food stamp, medical assistance, and other programs.1

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA

Prior to the SSI program, the eligibility of aged, blind, or disabled individuals for Federally-funded adult

assistance depended on the State in which they lived. Benefit amounts varied from State to State. The SSI

program replaced the State-run programs with a national program with uniform standards and objective

eligibility criteria. These standards include:

 • A uniform limitation on the dollar amount or value of income and resources that an individual can

have and still qualify for SSI assistance. The countable income limits for individuals and couples are

equal to their respective Federal benefit rates2 and hence are increased annually according to changes

in the cost of living. Effective January 1, 2005, the Federal benefit rate is $579 a month for individuals and $869 a month for couples. The resource limit is $2,000 in countable resources for individuals

and $3,000 for couples.

 • A uniform standard of 65 as the minimum age requirement for assistance based on age.

 • A uniform definition of disability and blindness. The definitions for individuals 18 or older are the

same as those used for the Social Security Disability Insurance program. In order to be considered

disabled, an individual must have a medically determinable physical or mental impairment which is

expected to last or has lasted at least 12 continuous months or is expected to result in death and (1) if

18 or older prevents him/her from doing any substantial gainful activity3 or (2) if under 18 results in

marked and severe functional limitations. However, individuals for whom addiction to drugs or alcoholism is a contributing factor material to the determination of their disabilities are not eligible for

benefits. In order to be considered blind, an individual must have central visual acuity of 20/200 or

less in the better eye with the use of a correcting lens or have tunnel vision of 20 degrees or less.

 • Uniform standards for citizenship and residency. In order to be eligible for SSI, an individual

must be a citizen (or national) of the United States, an American Indian born in Canada

who is under section 289 of the Immigration and Nationality Act (INA), an American Indian

born outside the United States who is a member of a Federally recognized Indian tribe under section 4(e) of the Indian Self-Determination and Education Assistance Act, a noncitizen who was

receiving SSI benefits on August 22, 1996, or be a qualified alien in one of the following categories:

 — Certain noncitizens who are blind or disabled and were lawfully residing in the United States on

August 22, 1996;

 — Refugees (eligibility generally limited to the 7-year period after their arrival in the United

States);

 — Asylees (eligibility generally limited to the 7-year period after the date they are granted asylum);

1 For example, as explained in section III.H, SSI recipients in most States are also automatically eligible for Medicaid, which generally provides for their

medical needs.

2 See table IV.A2 for historical and estimated future Federal benefit rates.

3 “Substantial gainful activity” (SGA) is used to describe a level of work activity that is both substantial—i.e., involves the performance of significant

physical and/or mental duties which are productive—and gainful—i.e., performed for remuneration or profit. SGA rules do not apply to the SSI blind. Generally earnings from work activity of over $830 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $830 a month, he/she

generally would not be considered disabled. However, if an SSI recipient is earning over $830 a month, he/she could continue to be eligible for SSI. (See

“Incentives for Work and Opportunities for Rehabilitation” section III.E.) The SGA level of $830 was increased from $810 effective January 1, 2005 (69 FR

62502). Increases in the SGA level in subsequent years will be based on increases in the national average wage index.
2005 SSI Annual Report

8

 — Noncitizens who have had their deportations withheld under section 243(h) of the INA as in

effect prior to April 1, 1997, or who have had their removals withheld under section 241(b)(3) of

the INA (eligibility generally limited to the 7-year period after the date that deportation or

removal is withheld);

 — Cuban and Haitian entrants as defined by Federal statute, including: 1) Section 501(e) of the

Refugee Education Assistance Act of 1980; 2) former parolees and other aliens who became residents under the Cuban Adjustment Act of 1966; 3) aliens who became permanent residents

under the Nicaraguan and Central American Relief Act; and 4) aliens who became permanent

residents under the Haitian Refugee Immigration Fairness Act (eligibility for these categories is

generally limited to the 7-year period after the date that entrant status is granted);

 — Amerasian immigrants admitted pursuant to section 584 of the Foreign Operations, Export

Financing, and Related Programs Appropriations Act, 1988, and subsequent amendments (eligibility generally limited to the 7-year period after their arrival in the United States);

 — Noncitizen active duty Armed Forces personnel, honorably discharged veterans, and their

spouses and dependent children; or

 — Lawful permanent residents who have earned, or can be credited (from their spouses or parents)

with, 40 qualifying quarters of earnings.

Note: Qualified alien status includes noncitizens (or their parents or children) who have been battered

or subjected to extreme cruelty in the United States by a spouse or parent (or a member of the

spouse’s or parent’s family) with whom they live, and who have an approved petition, or have a petition pending, setting forth a prima facie case for adjustment of their immigration status. A complete

list of noncitizens who are considered qualified aliens can be found in the Glossary under “Qualified

Alien”. However, to be eligible to receive SSI benefits, these noncitizens also must be in one of the

categories listed above.

Finally, certain noncitizens may be eligible for SSI regardless of their immigration status if they have

been determined to be victims of trafficking in persons in the United States1. Such individuals are

treated for SSI purposes as refugees. That is, they are eligible for SSI for 7 years after a determination

is made that they are trafficking victims.

In addition to having to be a U.S. citizen (or national) or in one of the potentially eligible noncitizen

categories, an individual must reside in the 50 States, the District of Columbia or the Northern Mariana Islands. An individual also must be physically present in the United States2 for 30 consecutive

days, if he/she had been outside of the United States for 30 or more consecutive days. There are two

exceptions to the residency and physical presence requirements: 

 — Blind or disabled children who are citizens of the United States may continue to be eligible for

payments if they are living outside the United States with a parent who is on duty as a member of

the U.S. Armed Forces. This exception also applies to blind and disabled children of military

personnel who are born overseas, become blind or disabled overseas or applied for SSI benefits

while overseas.

1 Generally defined as the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services through the use of force, fraud, or

coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.

2 Fifty States, the District of Columbia or the Northern Mariana Islands.
9

2005 SSI Annual Report

 — Students studying abroad for not more than 1 year also may continue to be eligible for payments

if the studies are sponsored by a U.S. educational institution but could not be conducted in the

United States.

D. ASSISTANCE OF LAST RESORT

As a means-tested program, SSI takes into account all income and resources that an individual has or can

access. The amount of an individual’s countable income and resources are the measure of his/her need for

assistance.

1. Income

The amount of an individual’s income is used to determine both eligibility for, and the amount of, his/her

SSI benefit. As countable income increases, an individual’s SSI benefit amount decreases. Generally, ineligibility for SSI occurs when countable income equals the Federal benefit rate plus the amount of applicable Federally-administered State supplementary payment (State supplementation is discussed later).

The monthly Federal benefit rate1 is reduced dollar-for-dollar by the amount of the individual’s “countable” income—i.e., income less all applicable exclusions. Countable income is determined on a calendar

month basis. The result of this computation determines SSI eligibility and the amount of the benefit payable. These benefit rates are adjusted annually (in January) to reflect changes in the cost of living. 

When an individual lives in the household of another and receives support and maintenance in kind (i.e.,

generally room and board) from the householder, the Federal SSI benefit rate is reduced by one-third in

lieu of counting the actual value of the support and maintenance as unearned income. The value of food or

shelter-related items the individual receives in kind from persons other than the householder (including inkind assistance from outside the household in which he/she lives) is counted as unearned income.2 However, the amount that is countable is limited to an amount equal to one-third of the applicable Federal benefit rate plus $20.

SSI law defines two kinds of income—earned and unearned. Earned income is wages, net earnings from

self-employment, remuneration for work in a sheltered workshop, royalties on published work, and honoraria for services. All other income is unearned including, for example, Social Security benefits, other pensions, and unemployment compensation. The distinction between earned and unearned income is

significant because different exclusions apply to each type of income. 

However, not everything an individual receives is considered to be income. Generally, if the item received

cannot be used as, or to obtain food or shelter, it will not be considered as income. For example, if someone pays an individual’s medical bills, or offers free medical care, or if the individual receives money from

a social services agency that is a repayment of an amount he/she previously spent, that value is not considered income to the individual. In addition, some items that are considered to be income are excluded when

determining the amount of an individual’s benefit.

Income Exclusions3

The principal earned income exclusions are: 

1 See table IV.A2 for historical and estimated future Federal benefit rates.

2 SSA simplified the SSI program (70 FR 6340) by generally eliminating clothing from the definition of income and from the definition of in-kind support

and maintenance effective February 7, 2005.

3 A complete list of the SSI income exclusions can be found in section V.B.
2005 SSI Annual Report

10

 • The first $65 per month plus one-half of the remainder, 

 • Impairment-related work expenses of the disabled and work expenses of the blind, 

 • Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual, and 

 • Infrequent or irregularly received income (the first $30 received in a quarter). 

The principal unearned income exclusions are: 

 • The first $20 per month,1

 • Income set aside or being used to pursue a plan for achieving self-support by a disabled or blind individual, 

 • State or locally funded assistance based on need, 

 • Rent subsidies under the Department of Housing and Urban Development (HUD) programs and the

value of food stamps, and 

 • Infrequent or irregularly received income (the first $60 received in a quarter). 

2. Resources 

The amount of an individual’s resources is used to determine whether he/she is eligible for SSI in any

given month. SSI law states that eligibility is restricted to individuals who have countable resources, determined monthly, that do not exceed $2,000 ($3,000 for a couple). The law does not define what resources

are, but does stipulate what items are not considered resources.

Regulations stipulate that a resource is cash or other liquid asset or any real or personal property that individuals (or their spouses) own and could convert to cash to be used for their support and maintenance.

This definition is consistent with the general philosophy of the SSI program that only items that can be

used for an individual’s food or shelter should be used in determining his/her eligibility and benefit

amount. Not all resources an individual owns are counted. The value of an item may be totally excluded or

counted only to the extent that its value exceeds specified limits.

If an individual disposes of resources at less than fair market value within the 36-month period prior to

his/her application for SSI or at any time thereafter, he/she may be penalized. The penalty is a loss of benefits for a number of months (up to a 36-month maximum) obtained by dividing the uncompensated value

of disposed-of-resources by the Federal benefit rate plus the maximum State supplementary payment, if

any, applicable to the individual’s living arrangement. The penalty does not apply if, among other things,

the individual can show that the resources were disposed of exclusively for a purpose other than establishing SSI eligibility.

Resource Exclusions2

The principal resource exclusions are:

1 Any portion of this $20 amount not used to exclude unearned income may be used to exclude earned income.

2 A complete list of the SSI resource exclusions can be found in section V.B.
11

2005 SSI Annual Report

 • The home and land appertaining to it, regardless of value;

 • Life insurance policies whose total face value does not exceed $1,500;

 • Burial funds not in excess of $1,500 each for an individual and spouse (plus accrued interest);

 • Household goods, if needed for maintenance, use and occupancy of the home, and personal effects1;

 • An automobile, if used to provide necessary transportation;2

 • Property essential to self-support;

 • Resources set aside to fulfill a plan to achieve self-support; and

 • Amounts deposited into either a Temporary Assistance for Needy Families (TANF) or “Assets for

Independence Act” individual development account (IDA), including matching funds, and interest

earned on such amounts.

3. Filing for Other Benefits 

As the “program of last resort,” SSI benefits are provided to eligible individuals only to the extent that

their needs are not met by other sources. That is, after evaluating all other income and resources, SSI pays

what is necessary to bring an individual to the statutorily prescribed income “floor.” In keeping with this

principle, SSI law requires that SSI applicants and recipients file for other payments for which they may

be entitled, such as annuities, pensions, retirement or disability benefits, worker’s compensation, and

unemployment insurance benefits. 

SSA must provide an individual with written notice of potential eligibility for other benefits and of the

requirement to take all appropriate steps to pursue these benefits. The individual has 30 days from receipt

of the notice to file for the benefits involved. 

4. Eligibility Issues for Residents of Public Institutions or Medical Facilities 

State and local governments—rather than the Federal Government—traditionally have taken the financial

responsibility for residents of their public institutions. The SSI program continues this long-standing public assistance policy. People who are residents of public institutions for a full calendar month are generally

ineligible for SSI unless one of the following exceptions applies:

 • The public institution is a medical treatment facility and Medicaid pays more than 50 percent of the

cost of care, or in the case of a child under age 18, Medicaid and/or private health insurance pays

more than 50 percent of the cost of care;

 • The public institution is a publicly operated community residence which serves no more than

16 residents; 

 • The public institution is an emergency shelter for the homeless (payments are limited to no more than

6 months in any 9-month period);

1 The $2,000 value limit was removed effective February 7, 2005 (70 FR 6340).

2 SSA also changed the evaluation of automobiles as an excludable resource, effective February 7, 2005 (70 FR 6340). Under the old rules, one automobile

could be excluded (regardless of value) if necessary for employment, medical treatment or essential daily activities. If not excludable under this criteria, one

automobile could be excluded to the extent its current market value did not exceed $4,500. The new exclusion, applicable to any one automobile used for

transportation, simplifies the evaluation of this resource.
2005 SSI Annual Report

12

 • The recipient was eligible under section 1619(a) or (b)1 for the month preceding the first full month in

the public institution and is permitted by the institution to retain any benefits (payable for up to 2

months); or

 • A physician certifies that the recipient’s stay in a medical facility is likely not to exceed 3 months and

continued SSI eligibility is needed to maintain and provide for the expenses of the home to which the

individual will return.

5. Personal Needs Allowance 

When individuals enter medical treatment facilities in which more than half of the bill is paid by the Medicaid program, their monthly Federal payment standard is generally reduced to $30, beginning with the

first full calendar month they are in the facility. In the case of an individual under age 18, the $30 payment

standard is also applicable if more than half of the bill is paid by private insurance or a combination of

Medicaid and private insurance. The theory behind this provision is that the individual’s basic needs are

being met by the medical facility. In these cases, the SSI program provides up to $30 a month, which is

intended to take care of small comfort items not provided by the institution. 

6. Deeming 

In certain situations the income and resources of others are counted in determining whether an individual’s

income and resources fall below the levels established by law. This process is called “deeming” and is

applied in cases where an eligible individual lives with an ineligible spouse, an eligible child lives with an

ineligible parent, or an eligible noncitizen has a sponsor.2 In concept, the practice takes into account the

responsibility of the spouse, parent, or sponsor to provide for the basic needs of the eligible individual. 

a. Spouse-to-Spouse Deeming 

When an eligible individual lives in the same household with a spouse who is not eligible for SSI, the ineligible spouse’s income and resources are deemed to be available to the eligible individual. In determining

the amount of income and resources available to the eligible individual, all applicable exclusions are used.

In addition, a living allowance is provided for the ineligible spouse, as well as any ineligible children

under age 183 living in the household. The allowance reduces the amount of income to be deemed.

Spouse-to-spouse deeming is intended to result in the same amount of income available to the couple as

would be available if both members of the couple were aged, blind, or disabled and eligible for SSI.

Deeming does not apply when the eligible individual is not living in the same household as the ineligible

spouse. However, if the ineligible spouse’s absence is temporary or is due solely to an active duty assignment as a member of the U.S. Armed Forces, deeming would continue to apply. 

b. Parent-to-Child Deeming 

A child under age 18 is subject to deeming from an ineligible natural or adoptive parent (and that parent’s

spouse, if any) living in the same household. Certain amounts of the parent’s income are excluded, living

allowances are provided for the parent(s) and an allocation is set aside for each ineligible child under

age 183 who is living in the household. Deeming to a child would continue if the parent is absent from the

household but the absence is temporary or is due solely to active duty assignment as a member of the U.S.

1 See section III.E.6 of this report for a description of the special section 1619 provisions for disabled people who work.

2 Deeming also applies to an individual who lives with an essential person (a concept carried over from the former State assistance plans). However, there

are fewer than 100 of these cases remaining.

3 Under age 21, if a student.
13

2005 SSI Annual Report

Armed Forces. If a child lives in a household in which all members are receiving public assistance benefits, that child is not considered to be receiving any support and deeming would not apply. 

c. Sponsor-to-Alien Deeming 

The income and resources of noncitizens are deemed to include those of their sponsors. The way the

income and resources are deemed and the length of the deeming period depend on whether the sponsor

signed a legally enforceable affidavit of support1 or the previous version of the affidavit. Generally, individuals who entered the country before 1998 did so under the old version of the affidavit.2

Under the old version of the affidavit, deeming of the sponsor’s income and resources lasts until the noncitizen has been in the United States for 3 years.3 Living allowances equal to the Federal benefit rate are

provided for the sponsor, and allowances equal to one-half of the Federal benefit rate are provided for each

of the sponsor’s dependents. Allowances are also provided for the sponsor and his/her family members in

determining deemed resources. These allowances reduce the amount of the sponsor’s income and

resources deemed to the noncitizen.

For noncitizens admitted into the United States under a legally enforceable affidavit of support, deeming

generally applies until the noncitizen becomes a U.S. citizen. Deeming ends before citizenship if the noncitizen has earned, or can be credited with, 40 qualifying quarters of earnings. Children and spouses of

workers may be credited with quarters earned by the worker. A quarter otherwise earned after 1996 does

not count as one of the required 40 if the noncitizen or worker received Federal means-tested public benefits during the relevant period. 

Also for this group of noncitizens, deeming does not apply for specified periods if the noncitizens or their

children or parents have been battered or subjected to extreme cruelty while in the United States or if

sponsors leave the noncitizens indigent by not providing them with sufficient support. 

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

SSI benefits provide a basic level of assistance for individuals who are blind or disabled with limited earnings ability due to their impairments. Nonetheless, for recipients who want to work, the SSI program is

designed to encourage and support their work attempts in order to help them achieve greater degrees of

independence. The SSI program includes a number of work incentive provisions that enable recipients

who are blind or disabled to work and retain benefits or to increase their levels of work activity without

the loss of SSI disability status or Medicaid. These incentives provide higher amounts of income or

resource exclusions as recognition of the expenses associated with working or as inducements to seek

rehabilitation services and support for work efforts. 

The SSI program also includes provisions to help disabled beneficiaries obtain vocational rehabilitation

and employment support services. These provisions were revised by legislation establishing the Ticket to

Work program, which is described in section III.E.7.

1 Legally enforceable affidavits of support are required by Public Law 104-208.

2 The Immigration and Naturalization Service now known as the United States Citizenship and Immigration Services (USCIS) began using the new, legally

enforceable affidavits on December 19, 1997. However, if a potential immigrant had a visa issued before that date, the sponsor would sign an old version of

the affidavit even if the affidavit was signed after December 19, 1997.

3 For a temporary period—January 1994 through September 1996—the deeming period was 5 years.
2005 SSI Annual Report

14

1. Earned Income Exclusion 

The first $65 ($85 if the individual has no income other than earnings) of any monthly earned income plus

one-half of remaining earnings are excluded for SSI benefit computation purposes. This general earned

income exclusion is intended to help offset expenses incurred when working. It assures that SSI recipients

who are working will be rewarded for their efforts by having greater total income than those who do not

work.

2. Impairment-Related Work Expense Exclusion 

The costs of certain impairment-related services and items that a disabled (but not blind) individual needs

in order to work are excluded from earned income in determining SSI eligibility and benefit amounts. 

In calculating these expenses, amounts equal to the costs of certain attendant care services, medical

devices, equipment, prostheses, vehicle modifications, residential modifications to accommodate wheelchairs and similar items and services are deductible from earnings. The costs of routine drugs and routine

medical services are not deductible unless these drugs and services are necessary to control the disabling

condition. 

3. Work Expenses of the Blind Exclusion 

Any earned income by a blind individual that is used to meet expenses needed to earn that income is

excluded from earned income in determining SSI eligibility and benefit amounts. A deductible expense

need not be directly related to the worker’s blindness; it need only be an ordinary and necessary work

expense of the worker.

Some frequently excluded work expenses include transportation to and from work, meals consumed during work hours, job equipment, licenses, income or FICA taxes, and costs of job training. 

4. Student Earned Income Exclusion 

The student earned income exclusion is an additional exclusion for an individual who is under age 22 and

regularly attending school. It is intended to help defray the cost of educational training. Under current regulations, up to $1,410 of earned income per month but no more than $5,670 per year may be excluded.1

5. Plan for Achieving Self-Support 

A plan for achieving self-support (PASS) allows a disabled or blind individual to set aside income and

resources to get a specific type of job or to start a business. This may involve setting aside funds for education or vocational training. Funds can even be set aside to purchase work-related equipment or pay for

transportation related to the work goal. The income and resources that are set aside are excluded under the

SSI income and resources tests. 

The individual must have a feasible work goal, a specific savings or spending plan, and must provide for a

clearly identifiable accounting for the funds which are set aside. The PASS must be approved by SSA. The

individual must then follow the plan and negotiate revisions as needed. SSA monitors the plans once

approved by reviewing them periodically to ensure the individual’s progress towards attaining the work

goal. 

1 Increased from $1,370 and $5,520, respectively, effective January 1, 2005 (69 FR 62497). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.
15

2005 SSI Annual Report

6. Special Provisions for Disabled People Who Work 

This work incentive generally is referred to by its section number in the Social Security Act, section 1619.

Under section 1619(a), disabled individuals who would cease to be eligible because of earnings over the

substantial gainful activity level can receive special cash benefits as long as they:

 • Continue to have the disabling condition,

 • Have income under the amount which would cause ineligibility for any payment under SSI income

counting rules, and

 • Meet all other nondisability requirements for SSI payment.

In many States, being a recipient of the special benefit permits the individual to be eligible for Medicaid

benefits.

Under section 1619(b), “SSI recipient” status for Medicaid eligibility purposes also is provided to individuals:

 • Whose earnings preclude any SSI payment but are not sufficient to provide a reasonable equivalent of

the SSI, social services, and Medicaid benefits that the individuals would have in the absence of earnings; and 

 • Whose ability to continue working would be seriously inhibited by the loss of social services and

Medicaid benefits. 

To qualify for extended Medicaid coverage under section 1619(b) an individual must: 

 • Have a disabling condition,

 • Need Medicaid in order to work,

 • Not be able to afford equivalent medical coverage and publicly funded personal or attendant care

which would be lost without assistance, 

 • Meet all nondisability requirements for SSI payment other than earnings, and 

 • Have received a regular SSI cash payment in a previous month within the current period of eligibility.

(In some States, the individual must have qualified for Medicaid the month preceding the first month

of 1619 eligibility.) 

In determining whether individuals’ earnings are not sufficient to provide them with the equivalent benefits they would be eligible for if they stopped working, their earnings are compared to a threshold amount

for their State of residence. Section 1619(b) status continues if the earnings are at or below the threshold.

If earnings exceed the State threshold, an individualized assessment of the need for Medicaid is made and

1619(b) status may continue. 

7. Vocational Rehabilitation/Ticket to Work Program

Since the beginning of the SSI program, State Vocational Rehabilitation (VR) agencies have provided services to those blind or disabled SSI recipients whom they accepted as clients. SSA has traditionally reimbursed the VR agency for services provided in situations where the services result in the individual’s
2005 SSI Annual Report

16

working at the substantial gainful activity level for a continuous period of 9 months, and in certain other

limited situations.

The Ticket to Work and Work Incentives Improvement Act of 1999 (“the Ticket legislation”) established a

Ticket to Work and Self-Sufficiency program (Ticket to Work program) under which a blind or disabled

beneficiary may obtain vocational rehabilitation, employment and other support services from a qualified

private or public provider referred to as an “employment network” (EN), or from a State VR agency. In

addition, the Ticket legislation provided for a new procedure for compensating ENs under an outcome or

outcome-milestone payment system1. By expanding the pool of providers and giving the providers incentives for achieving success, this program seeks to expand a disabled beneficiary’s access to these services

in order to assist the beneficiary in finding, entering, and retaining employment and reducing his/her

dependence on cash benefits. Regulations issued by the Commissioner became effective January 2002.

After being phased in gradually beginning in 2002, the Ticket to Work program has been in operation

nationwide since November 2003. Under this program SSA provides eligible individuals who receive SSI

benefits due to blindness or disability with a Ticket to Work document (“ticket”). These individuals may

use the ticket to obtain the vocational rehabilitation services, employment services and other support services needed to return to work, or go to work for the first time. The Ticket to Work program provides that

as long as the beneficiary is “using a ticket” as defined by the Commissioner, SSA will not initiate a continuing disability review. Individuals not eligible for a ticket may still request services from a State VR

agency, which must decide whether they are eligible for services under the Rehabilitation Act of 1973.

ENs and State VR agencies are the only providers of VR services to SSI disabled recipients who can be

compensated for those services by SSA. All ENs are compensated through the new outcome-based system. State VR agencies are compensated under the traditional VR reimbursement system for those cases

where they have not elected to participate as an EN. Any services provided by the State VR agencies to

SSI recipients who are not yet eligible for a ticket will be compensated under the traditional VR reimbursement system.

Individuals receiving SSI benefits who improve medically and, therefore, are no longer considered disabled or blind can continue to receive SSI benefits if they are actively participating in the Ticket to Work

program, or another approved program of VR services, employment services, or other support services,

and SSA determines that continuation or completion of the program will increase the likelihood that they

will be permanently removed from the SSI rolls. SSI benefits and Medicaid generally continue until the

approved program is completed or until the individual ceases to participate in the program.

8. Expedited Reinstatement

A disabled or blind individual whose eligibility for SSI payments was ended because of earnings can

request expedited reinstatement of his/her SSI benefits without filing a new application. To qualify for

expedited reinstatement, the individual must make the request within 60 months after his/her eligibility

ended and must have a disabling medical condition that (1) is the same as (or related to) the disabling

medical condition that led to the previous period of eligibility and (2) prevents him/her from performing

substantial gainful activity. In determining whether the individual is disabled or blind, the medical

improvement review standard is applied. Normal nonmedical requirements for SSI eligibility still apply.

An individual requesting expedited reinstatement may receive up to 6 months of provisional benefits while

his/her request is pending. These benefits generally are not considered an overpayment if the request is

1 State VR agencies generally have the option on a case-by-case basis of electing to be paid under an EN payment system or under the traditional cost reimbursement payment system.
17

2005 SSI Annual Report

denied. Provisional benefits may include Medicaid but do not include any State supplementary payments.

Provisional benefits also may be received by the individual’s spouse at a couple’s rate if the spouse was

previously eligible for SSI as a spouse.

F. ADMINISTRATION OF THE SSI PROGRAM

The framers of the SSI program chose SSA to administer the SSI program because the basic system for

paying monthly benefits to a large number of individuals was already in place in the form of the Social

Security program, and SSA had a long-standing reputation for dealing with the public in a fair and humane

manner.

1. Application Process

Individuals can apply for SSI benefits at any one of the approximately 1,300 SSA field offices around the

country or through SSA teleservice centers. The claims process includes the application interview, the

obtaining of necessary evidence and documentation, and the adjudication of the claim. Although many of

the eligibility requirements for the Social Security program and the SSI program are different, the application process is very similar. Many times, individuals file for benefits under both programs at the same

time.

SSA corroborates information provided by applicants for SSI through independent or collateral sources.

Generally, the basic responsibility for obtaining evidence lies with the claimant, although SSA often gives

advice and assistance on ways to obtain the needed information. Because of the special circumstances of

the SSI population (for example, financial need, old age, or illness), SSA makes special efforts to assist

claimants in obtaining the necessary proofs.

With regard to disability and blindness claims, SSA makes determinations of all of the nonmedical eligibility factors while each State’s Disability Determination Services (DDS) makes determinations of the

medical eligibility factors.

Applicants and recipients are required to report events and changes of circumstances that may affect their

SSI eligibility and benefit amounts. Such reports are required, for example, when an individual has a

change in the amount of his/her income or resources, changes living arrangements, or leaves the United

States. Failure or delay in submitting a required report can result in a penalty being assessed against the

individual’s SSI benefit. The penalty is $25 for the first such failure or delay, $50 for the second such failure or delay, and $100 for each subsequent failure or delay.

2. Determination of Eligibility

SSI applications have no retroactivity and become effective in the month after the month of filing or the

month after all eligibility requirements are met, whichever is later. Eligibility for benefits is determined on

a current monthly basis. The amount of the monthly benefit generally is determined using income in the

second month preceding the month for and in which the benefit is paid (a method called retrospective

monthly accounting). However, at the start of a period of eligibility or re-eligibility, the benefits for the

first and second months are both determined using the income received in the first month. (One-time, nonrecurring income would only be counted in the month received.)

SSI recipients are required to have their nonmedical eligibility factors redetermined periodically, generally

every 1 to 6 years depending on their specific situation. 
2005 SSI Annual Report

18

In addition to these nonmedical reviews, medical reviews are conducted on disabled or blind recipients in

order to determine if they continue to be disabled or blind. For administrative efficiency the medical

reviews are done most often on those disabled or blind recipients whose medical conditions are considered

likely to improve. Medical reviews are required for disabled or blind recipients, for example, under the

following circumstances:

 • When earnings of recipients exceed the substantial gainful activity level;1

 • At least once every 3 years for recipients under age 18 whose medical conditions are considered

likely to improve;

 • Within 12 months after birth for recipients whose low birth weight is a contributing factor material to

the determination of their disability, unless the Commissioner determines that the impairment is not

expected to improve within 12 months of the child’s birth; and

 • Within 1 year after attainment of age 18 and using the adult eligibility criteria, for recipients whose

eligibility for SSI benefits was established under the disabled child eligibility criteria.

3. Payment of Benefits

SSI benefits generally are paid on the first day of each month. If the first of the month falls on a weekend

or legal public holiday, benefit payments are delivered on the first working day preceding such Saturday,

Sunday, or holiday. While SSA strongly encourages all SSI beneficiaries to receive their monthly benefits

by direct deposit, benefit payments are also made by check if individuals do not wish to have their benefits

sent directly to a financial institution. Monthly benefit payments include both the Federal SSI and State

amounts if the recipient lives in a State in which SSA administers the State supplementary payment. (See

section III.G.) Eligible couples generally receive their monthly benefits in one payment.

4. Representative Payees 

When SSI recipients are incapable of managing their benefits or are declared legally incompetent, SSA

appoints representative payees for them, and their SSI benefits are sent to the representative payees. In

many cases the representative payee is a spouse, a parent, or other close relative who will act in the recipient’s best interest. In some cases, an SSA-approved organization may be appointed and some organizations have been authorized by SSA to collect a fee from the benefit for acting as payee. The fee cannot

exceed the lesser of 10 percent of the benefit amount or a specified amount ($32 a month in 2005 ($61 a

month for disabled recipients who also have a drug addiction or alcoholism condition)).

Representative payees may use an SSI recipient’s benefit only for the use and benefit of the recipient and

must account for all benefits received. Representative payees also are required to report any changes that

may affect SSI recipients’ eligibility and payment amount and may be held liable for certain overpayments

that occur. In cases in which a child is due a retroactive payment that exceeds six times the Federal benefit

rate, the representative payee is required to establish a separate (dedicated) account at a financial institution to maintain the retroactive payment. Expenditures from the account must be used primarily for certain

expenses related to the child’s impairment.

5. Appeal Rights 

Recipients must be informed in writing in advance of adverse actions SSA plans to take and must be given

the opportunity to request that their benefits continue while a decision at the first level of appeal is pend1 Medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
19

2005 SSI Annual Report

ing. Recipients can qualify for payment continuation when they appeal an adverse action within 10 days of

receiving the advance notice. Slightly different rules apply to medical cessation cases. When appealing

medical cessation cases, individuals may elect to have their benefits continued at both the reconsideration

and hearing levels of appeal.

6. Fees for Attorneys and Non-attorney Representatives

At any time, an individual may appoint a representative in any dealings with the Social Security Administration. If such a representative is an attorney, he/she must be in good standing, have the right to practice

law before a court, not be disqualified or suspended from acting as a representative in dealings with Social

Security, and not be prohibited by any law from acting as a representative. If the individual is not an attorney, he/she must meet qualifications specified by the Commissioner (e.g., be of good character and able to

provide valuable service to claimants).

A representative may charge and receive a fee for his/her services, but the Social Security Administration

generally decides how much the fee shall be. While the Social Security Act does not establish a maximum

fee, most attorneys use a process that limits their maximum fee to the lesser of 25 percent of the retroactive payment or $5,300 1. A representative cannot charge or receive more than the fee amount authorized.

The SSI program has traditionally differed from the Social Security program in that amounts could not be

withheld from an individual’s SSI benefits to pay for attorney fees. SSI claimants were responsible for

paying such fees directly to their attorneys. However, beginning February 28, 2005, direct payment of

attorney fees has temporarily been extended to the SSI program under the same process and in the same

manner as fees are directly paid in the Social Security program. As in the fee process for the Social Security program, attorneys are now charged an assessment of the smaller of 6.3 percent of each authorized fee

withheld or $75. The flat-rate cap is adjusted based on annual cost-of-living adjustments, rounded down to

the next lower dollar. In addition, the Commissioner is conducting a nationwide demonstration project

providing for extension of fee withholding for non-attorney representatives under Social Security and SSI.

In order to be eligible to participate in the demonstration project, non-attorney representatives will have to

meet specified prerequisites that include: having a bachelors’ degree or equivalent; having experience in

representing claimants before SSA; having liability insurance; passing a criminal background check; and,

passing an examination given by SSA that tests relevant knowledge of the Social Security Act and recent

court decisions. The SSI fee withholding and direct payment of fees, and the demonstration project provisions, are temporary in that their authority ends after 5 years.

7. Advance Payments 

The SSI program has provisions which help to respond to the immediate needs of new claimants. These

procedures are in addition to State and local programs designed to help those in need, pending decisions

on their SSI status. 

a. Emergency Advance Payments 

A new claimant who faces a financial emergency, and for whom there is a strong likelihood of being found

eligible, may receive up to 1 month’s SSI benefits, the Federal payment amount plus any applicable State

supplement. The amount paid is recovered from later SSI payments (in full from the first payment or in

increments over no more than a 6-month period, depending upon the circumstances). However, if the

claim is subsequently not allowed because of not finding disability or blindness, repayment would be

waived. If the claim is disallowed for other reasons, the amount paid would be an overpayment and processed as such.

1 Fee agreements prior to February 1, 2002, were limited to the lesser of 25 percent of the retroactive payment or $4,000.
2005 SSI Annual Report

20

b. Presumptive Disability or Blindness 

Up to 6 months’ payments may be made to an individual applying for benefits based on disability or blindness when the available evidence reflects a high degree of probability that his/her impairment will meet

the definition of disability or blindness and he/she is otherwise eligible. These payments are not considered overpayments if the individual is later determined not to be disabled or blind.

G. STATE1 SUPPLEMENTATION

In designing the SSI program, Congress recognized that States, in many instances, would want to provide

a higher level of income maintenance than was available under the Federal program. At the same time

States were given the option to either provide no supplementation to the Federal assistance payments or to

supplement those payments based on their views of the needs of their citizens. They were mandated to

assure that their citizens would not receive lower benefits under the Federal program than they had under

the former State program. The following paragraphs describe the various forms of State supplementation

that currently exist. Table III.H1 summarizes State-specific participation in these programs as well as other

programs requiring State and Federal coordination as discussed in section III.H.

1. Optional State Supplementary Payment Programs 

For individuals who first became eligible for SSI in 1974 or later, each State could supplement Federal

payments to whatever extent it found appropriate with respect to the needs of its citizens and resources of

the State. Currently, 45 States have optional State supplementary payment programs.

Some States provide supplementary payments to all individuals eligible for SSI benefits, while others may

limit them to certain SSI recipients such as the blind or residents of domiciliary-care facilities, or may

extend them to persons ineligible for SSI because of excess income. States’ flexibility in setting supplementary payments, however, has been significantly restricted by the passalong provisions (see section 4

below).

2. Mandatory State Supplementary Payment Programs 

States are required2 to maintain the December 1973 income levels of individuals who were transferred

from the former State adult assistance programs to the SSI program in 1974, except for Texas which has a

constitutional bar against mandatory State supplementation. Over the years, many individuals who were

converted to SSI from the State benefit rolls in December 1973 have died and others have had their

incomes increased above the December 1973 level. As a result, there are few individuals who continue to

receive mandatory State supplementary payments.

3. Administration of State Supplementary Payments 

A State may administer its supplementary program or enter into an agreement under which SSA will make

eligibility determinations and payments on behalf of the State. Under State administration, the State pays

its own program benefits and absorbs the full administrative costs. Under Federal administration, States

are required to pay SSA a $9.06 fee for each supplementary payment issued in fiscal year 2005. Fees are

projected to rise in succeeding fiscal years, based on changes in the consumer price index.

1 References to State include, in addition to the 50 States, the District of Columbia. The applicable State supplementation provisions would also apply to the

Northern Mariana Islands if it began making State supplementary payments.

2 Requirement does not affect West Virginia, since, in 1973, SSI Federal benefit rates exceeded the applicable income standards under the State’s adult

assistance programs.
21

2005 SSI Annual Report

States that administer their own supplementary payment programs establish their own eligibility criteria.

States with Federally-administered programs must adhere to SSI eligibility criteria in all aspects except

that they may establish additional income exclusions. 

4. Passalong Provisions

When the SSI program began in 1974, there were no requirements that States maintain their efforts with

regard to levels of State supplementary payments. However, in 1976 in reaction to States reducing their

supplementary payment amounts when SSI payments were increased, Congress mandated that States pass

along SSI benefit increases resulting from cost-of-living adjustments. 

To meet the passalong (or maintenance-of-effort) requirement, a State may either maintain each State payment level from year-to-year—the “payment levels” method—or it may spend the same amount of money,

in the aggregate, that it spent for supplementary benefits in the 12-month period preceding the increase in

the SSI benefit rate—the “total expenditures” method. Currently, 41 States use the levels method and 9 use

the expenditure method. West Virginia has no optional supplementary plan and was not required to establish a mandatory plan because Federal SSI income standards exceeded all payments made under the

State’s adult assistance programs in 1973. 

H. COORDINATION WITH OTHER PROGRAMS

SSI benefits are not the only form of assistance available to needy aged, blind, or disabled individuals.

Medicaid, food stamps, and temporary State assistance also are important in keeping individuals from sliding further into poverty. SSA plays a limited but important role in helping States with regard to administration of Medicaid and food stamp programs, and provisions in the SSI statute assure that payments made by

States or under the Social Security program are not duplicated by SSI benefits. 

1. Windfall Offset 

If a person receives SSI payments, and is later determined to be entitled to retroactive Social Security benefits, such retroactive benefits are reduced by the amount of SSI payments the person would not have been

eligible for had the Social Security benefits been paid in the month they were due. This process is called

the “windfall offset” and was enacted to prevent windfall payments to individuals when Social Security

and SSI payments were paid for the same period. 

2. Medicaid Determinations 

Generally, SSI recipients are categorically eligible for Medicaid. A State may either use SSI eligibility criteria for determining Medicaid eligibility, or use its own criteria as long as the criteria are no more restrictive than the State’s January 1972 medical assistance standards. Forty States use SSI criteria and 11 States

use eligibility criteria more restrictive than those of the SSI program. 

States also may enter into agreements with SSA for SSA to make Medicaid eligibility determinations on

their behalf, as long as the eligibility requirements of the State’s Medicaid plans are the same as those for

the SSI program. Under these agreements, SSA determines only when an individual is eligible for Medicaid; SSA does not determine Medicaid ineligibility. SSA has Medicaid determination agreements with

33 States. 
2005 SSI Annual Report

22

Continued Medicaid eligibility is provided for certain Social Security beneficiaries who lose SSI eligibility due to entitlement to Social Security benefits, or due to a change in Social Security benefits resulting

from:

 • Cost-of-living adjustments,

 • Actuarial increases in disabled widow(er)s benefits before age 60,

 • Changes in the definition of disability for widow(er)s benefits, or

 • Increases in or entitlement to disabled adult child benefits.

3. Food Stamp Applications 

SSI recipients in all States, except California,1 may be eligible for food stamps. Under agreements entered

into by the Secretary of Agriculture and SSA, Social Security offices notify Social Security and SSI applicants and recipients of their potential benefits under the Food Stamp program and make food stamp applications available to them. 

The law also provides for Social Security offices to take food stamp applications from potentially eligible

or eligible SSI households which are not already receiving food stamps and which do not have a food

stamp application pending. Food stamp applications from SSI households may be taken in connection with

initial SSI claims or at the time of a redetermination. Food stamp applicants have the option of applying at

Social Security offices or applying at State food stamp offices if expedited service is required. Social

Security offices forward the food stamp applications and any supporting documents to the local food

stamp offices within 1 day of taking the application. Eligibility is determined by the food stamp office. 

4. Interim Assistance Reimbursement 

SSA may enter into agreements under which States or local governments are reimbursed for basic needs

assistance provided during the period that either an eligible individual’s SSI application for benefits was

pending, or the individual’s SSI benefits were suspended and subsequently reinstated (the interim period).

Under these interim assistance reimbursement agreements, if the individual has given SSA written authorization, SSA sends an individual’s first SSI benefit check relating to the interim period to the State or local

jurisdiction that had provided the interim assistance. The State then deducts the amount it is owed and is

required to forward the remainder to the claimant within 10 days.2 Thirty-nine States have interim assistance agreements with SSA. 

1 California “cashes out” food stamps and SSI recipients there receive a cash payment in their State supplementary payment in lieu of food stamps.

2 Beginning in August, 1996, in certain disabled children’s cases, SSA first reimburses the State, then pays the remainder into special dedicated financial

institution accounts for the children. In all other cases where the retroactive benefits exceed a certain amount, SSA reimburses the State, then pays the

remainder in installments to the recipient or his/her representative payee.
23

2005 SSI Annual Report

1 See body of text for description of the various forms of State supplementation.

2 State no longer has any recipients receiving mandatory minimum State supplementation.

3 Mandatory minimum State supplementation program is Federally-administered. No optional program.

4 Mandatory minimum State supplementation program is Federally-administered.

5 State provides assistance only in initial application cases. No assistance provided during periods that SSI benefits are suspended or terminated. 6 State does not have a mandatory minimum State supplementation program.

Table III.H1.—SSI State Supplementation 1 and Coordination with Other Programs

 United States and 

District of Columbia

Optional State program—

Administered by:

Method of mandatory 

passalong of benefit 

increases from 

cost-of-living adjustments

Medicaid eligibility 

determination—

Interim 

assistance 

reimbursement 

agreement 

with SSA

Based on: Agreement 

with SSA 

to 

determine 

State eligibility

Federal 

(SSA)

Federal 

& State

“Payment

levels”

“Total

expenditures”

Federal 

criteria

State

criteria

Alabama 2 * * ** Alaska * * * * Arizona * * * ** Arkansas 3 * * * California * * * ** Colorado * * * * * Connecticut 2 * * ** Delaware * * * * * District of Columbia * ** * * Florida 2 * * * * * Georgia 3 * * ** Hawaii * * * * Idaho * ** Illinois * * * * Indiana 2 * * ** Iowa * * * * * Kansas 3 ** * Kentucky 2 * * * * * Louisiana 4 * * ** Maine * * * * * Maryland 4 * * * ** Massachusetts * * * * * Michigan * * * * * 5

Minnesota 2 * * * * Mississippi 3 * ** Missouri * * * * Montana * * * ** Nebraska * * * * Nevada 2 ** * * New Hampshire * * * * 5

New Jersey * * * ** New Mexico * * * * * 5

New York ** * * * North Carolina * * * * * North Dakota 2 ** * Ohio 4 * * * * Oklahoma * ** Oregon * * * * Pennsylvania ** * * * Rhode Island 2 * * * * * 5

South Carolina 2 * * ** South Dakota 4 * * * * Tennessee 3 * * ** Texas 6 * * * * Utah 2 ** * * Vermont 2 * * * * * Virginia 2 * * ** Washington * * * * * West Virginia 6 * * Wisconsin * * * * * Wyoming * * **

Total number of 

States . . . . . . . . . . . 30 9 6 41 9 40 11 33 39
2005 SSI Annual Report

24

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER 

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2005-29

As described in section III, eligibility for payments under the SSI program depends on satisfying a collection of requirements related to the socioeconomic status of the individual, as well as the evaluation of disability or blindness for all persons under age 65, and for certain individuals at ages 65 or older.

Consequently, future SSI program participation and expenditures will depend on a variety of difficult-topredict factors including the performance of national and local economies, distribution of personal

income, the prevalence of disability in the general population, and the determination of disability as

defined by the Social Security Act. Nevertheless, for planning purposes it is important to develop projections of future program participation and expenditures to the extent that we can understand and model the

impact of these factors on the SSI program. The projections presented in this section reflect the latest

efforts in this regard.

This section includes projections of program participation and expenditures under the SSI program for a

period of 25 years as required by the provisions of Public Law 104-193 which mandate this report. Our

current projection model disaggregates the basic population by single year of age and gender in order to

better understand and project the various transitions in and out of payment status. Transitions into payment

status are projected separately for: (1) new entrants resulting from an application for program benefits and

(2) returns to payment status from suspended status. Movements out of payment status are projected separately for (1) terminations due to death and (2) suspensions of payment due to all other reasons.1 The

assumptions and methods used in preparing these projections are reexamined each year in the light of

recent experience and new information about future conditions, and revised if warranted. The presentation

of projection results in the remainder of this section provides SSI population information by selected age

groups. Where certain recipient categories have overlapping age distributions, recipient category totals are

also shown.

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS

As in previous annual reports, the estimates presented in this section have been prepared in a manner

which accounts for the basic demographic changes expected to occur over the next 25 years. In addition,

the indexation of the Federal benefit rate depends on a projection of the Consumer Price Index (CPI) over

that same 25-year period. These estimates are based on the intermediate demographic projections and CPI

assumptions developed for the 2005 Annual Report of the Board of Trustees of the Federal Old-Age and

Survivors Insurance and Disability Insurance (OASDI) Trust Funds.2 Detailed discussion of these demographic and economic parameters is presented in sections V.A and V.B of that report.3 The key assumptions utilized directly for the projections presented in this report are summarized in the following two

tables. Table IV.A1 presents population projections summarized for the age subgroups that are used in the

presentation of SSI participant projections discussed in the next section.

1 The two main reasons other than death for termination of SSI payments are (1) failure to satisfy income and resource limitations of the SSI program and

(2) recovery from a qualifying disability.

2 House Document 109-18, published April 5, 2005.

3 Ibid, Section V.A, Demographic Assumptions and Methods and Section V.B, Economic Assumptions and Methods.
25

2005 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components. Historical population data subject to revision.

As described in section III.D.1, the monthly Federal benefit rate is adjusted in January of each year to

reflect changes in the level of consumer prices. The adjustment factor is based on the year-to-year increase

in the CPI for the third quarter of the calendar year. This cost-of-living adjustment is identical to the

adjustment of Social Security benefits under the OASDI program. In previous years, occasional ad hoc

increases were also applied to the Federal benefit rates, either in place of or in addition to the automatic

adjustments. The history of legislation affecting the Federal benefit rates is presented in table V.A1. Table

IV.A2 presents a complete history of the cost-of-living adjustment factors and Federal benefit rates since

the inception of the program, along with projections of such amounts consistent with the economic

assumptions underlying the SSI expenditure estimates discussed in section IV.C.

Table IV.A1.—Historical and Projected Population in the Social Security Area based on the 

Intermediate Assumptions of the 2005 OASDI Trustees Report, as of July 1, 1974-2029

[In thousands]

Year

Age groups1

1 Age as of last birthday.

Total

0-17 18-34 35-49 50-64 65-74 75 or older all ages

Historical data:

1974 .................. 70,713 60,129 36,328 32,819 13,883 8,883 222,755

1975 .................. 69,726 62,092 36,311 33,165 14,188 9,117 224,599

1976 .................. 68,736 63,980 36,478 33,437 14,509 9,362 226,501

1977 .................. 67,830 65,644 36,887 33,705 14,840 9,618 228,524

1978 .................. 67,001 67,223 37,470 33,940 15,167 9,886 230,687

1979 .................. 66,271 68,855 38,044 34,110 15,483 10,170 232,932

1980 .................. 65,747 70,443 38,565 34,240 15,773 10,464 235,233

1981 .................. 65,421 71,537 39,565 34,297 16,045 10,763 237,627

1982 .................. 65,209 72,120 41,104 34,246 16,332 11,093 240,104

1983 .................. 65,146 72,586 42,665 34,125 16,594 11,426 242,541

1984 .................. 65,233 72,912 44,170 34,030 16,834 11,743 244,922

1985 .................. 65,458 73,116 45,663 33,931 17,113 12,054 247,335

1986 .................. 65,747 73,222 47,273 33,754 17,448 12,356 249,800

1987 .................. 65,983 73,301 48,966 33,650 17,738 12,675 252,313

1988 .................. 66,184 73,426 50,663 33,666 17,961 12,993 254,892

1989 .................. 66,613 73,360 52,428 33,723 18,167 13,316 257,608

1990 .................. 67,474 72,883 54,229 33,842 18,371 13,658 260,458

1991 .................. 68,588 72,127 55,998 34,072 18,595 13,992 263,372

1992 .................. 69,706 71,312 57,642 34,552 18,805 14,324 266,342

1993 .................. 70,731 70,569 59,179 35,203 18,956 14,635 269,273

1994 .................. 71,633 69,853 60,784 35,840 19,032 14,938 272,081

1995 .................. 72,363 69,189 62,510 36,403 19,048 15,273 274,786

1996 .................. 72,978 68,684 63,832 37,397 18,981 15,638 277,511

1997 .................. 73,458 68,372 64,660 38,900 18,880 15,978 280,248

1998 .................. 73,799 68,208 65,474 40,390 18,748 16,279 282,898

1999 .................. 74,118 68,139 66,241 41,843 18,615 16,562 285,517

2000 .................. 74,403 68,354 66,821 43,253 18,558 16,866 288,255

2001 .................. 74,706 68,817 67,230 44,710 18,538 17,193 291,193

2002 .................. 75,021 69,413 67,499 46,213 18,550 17,467 294,164

2003 .................. 75,234 69,862 67,643 47,811 18,609 17,641 296,800

2004 .................. 75,413 70,021 67,723 49,556 18,746 17,747 299,207

Projected:

2005 .................. 75,609 70,099 67,802 51,365 18,960 17,838 301,673

2006 .................. 75,763 70,310 67,771 53,123 19,301 17,901 304,170

2007 .................. 75,810 70,813 67,484 54,779 19,816 17,926 306,628

2008 .................. 75,770 71,548 66,969 56,381 20,454 17,929 309,050

2009 .................. 75,728 72,332 66,346 58,015 21,106 17,950 311,477

2010 .................. 75,739 73,063 65,682 59,639 21,783 18,006 313,912

2011................... 75,807 73,755 65,056 61,009 22,651 18,074 316,352

2012 .................. 75,921 74,384 64,540 62,033 23,759 18,158 318,795

2013 .................. 76,079 74,878 64,153 62,908 24,933 18,287 321,238

2014 .................. 76,294 75,171 63,918 63,748 26,075 18,472 323,677

2015 .................. 76,560 75,264 63,906 64,443 27,198 18,713 326,084

2016 .................. 76,842 75,303 64,122 64,891 28,260 19,036 328,455

2017 .................. 77,097 75,443 64,435 65,120 29,245 19,471 330,812

2018 .................. 77,259 75,749 64,692 65,235 30,233 19,984 333,152

2019 .................. 77,314 76,180 64,811 65,333 31,318 20,518 335,473

2020 .................. 77,339 76,622 64,843 65,427 32,451 21,092 337,774

2021 .................. 77,503 76,917 64,955 65,407 33,446 21,820 340,048

2022 .................. 77,801 77,072 65,266 65,151 34,261 22,739 342,289

2023 .................. 78,098 77,173 65,778 64,689 35,025 23,727 344,490

2024 .................. 78,387 77,175 66,424 64,129 35,817 24,714 346,646

2025 .................. 78,653 77,083 67,140 63,534 36,609 25,709 348,728

2026 .................. 78,892 76,973 67,867 62,975 37,326 26,696 350,729

2027 .................. 79,108 76,915 68,524 62,520 37,919 27,687 352,673

2028 .................. 79,299 76,914 69,037 62,190 38,398 28,717 354,554

2029 .................. 79,463 76,962 69,365 62,009 38,760 29,814 356,374
2005 SSI Annual Report

26

1 Increases prior to 1984 were effective for the payment due on July 1 of the year. Increases shown for 1984 and later are effective for the payment due on

January 1 of the year.

2 A concept carried over from the former State assistance plans. There are currently fewer than 100 of those cases remaining.

3 Benefits paid in January, 1974 were based on the Federal benefit rates established by Public Law 92-603, enacted October 30, 1972: $130.00 for individuals; $195.00 for couples; and $65.00 for essential persons. Retroactive payments were subsequently made to adjust initial payments to the higher Federal

benefit rates established by Public Law 93-233, enacted December 31, 1973.

4 Ad hoc increases as specified in the law.

5 Originally determined as 2.4 percent, but pursuant to Public Law 106-554, enacted December 21, 2000, is effectively now 2.5 percent. 6 Benefits originally paid in 2000 and through July 2001 were based on Federal benefit rates of $512.00 and $530.00, respectively. Pursuant to Public Law

106-554, monthly payments beginning in August 2001 were effectively based on the higher $531 amount. Lump-sum compensation payments were made

based on an adjusted benefit rate for months prior to August 2001.

Table IV.A2.—SSI Federal Benefit Rate Increases and Levels: Historical and Projected on the Basis of the Intermediate 

Assumptions of the 2005 OASDI Trustees Report, 1974-2029

Year

Benefit rate

increase 1

Federal benefit rate

Individual Couple Essential person 2

Historical data:

Initial benefit paid January 1, 1974 3............... — $140.00 $210.00 $70.00

1974....................................................... 4 4.3% 146.00 219.00 73.00

1975....................................................... 8.0 157.70 236.60 78.90

1976....................................................... 6.4 167.80 251.80 84.00

1977....................................................... 5.9 177.80 266.70 89.00

1978....................................................... 6.5 189.40 284.10 94.80

1979....................................................... 9.9 208.20 312.30 104.20

1980....................................................... 14.3 238.00 357.00 119.20

1981....................................................... 11.2 264.70 397.00 132.60

1982....................................................... 7.4 284.30 426.40 142.50

1983....................................................... 4 7.0 304.30 456.40 152.50

1984....................................................... 3.5 314.00 472.00 157.00

1985....................................................... 3.5 325.00 488.00 163.00

1986....................................................... 3.1 336.00 504.00 168.00

1987....................................................... 1.3 340.00 510.00 170.00

1988....................................................... 4.2 354.00 532.00 177.00

1989....................................................... 4.0 368.00 553.00 184.00

1990....................................................... 4.7 386.00 579.00 193.00

1991....................................................... 5.4 407.00 610.00 204.00

1992....................................................... 3.7 422.00 633.00 211.00

1993....................................................... 3.0 434.00 652.00 217.00

1994....................................................... 2.6 446.00 669.00 223.00

1995....................................................... 2.8 458.00 687.00 229.00

1996....................................................... 2.6 470.00 705.00 235.00

1997....................................................... 2.9 484.00 726.00 242.00

1998....................................................... 2.1 494.00 741.00 247.00

1999....................................................... 1.3 500.00 751.00 250.00

2000....................................................... 5 2.5 6 513.00 769.00 257.00

2001....................................................... 3.5 6 531.00 796.00 266.00

2002....................................................... 2.6 545.00 817.00 273.00

2003....................................................... 1.4 552.00 829.00 277.00

2004....................................................... 2.1 564.00 846.00 282.00

2005....................................................... 2.7 579.00 869.00 290.00

Projected:

2006....................................................... 2.0 591.00 886.00 296.00

2007....................................................... 2.2 604.00 906.00 302.00

2008....................................................... 2.7 620.00 930.00 310.00

2009....................................................... 2.8 637.00 956.00 319.00

2010....................................................... 2.8 655.00 983.00 328.00

2011....................................................... 2.8 674.00 1,011.00 337.00

2012....................................................... 2.8 693.00 1,039.00 347.00

2013....................................................... 2.8 712.00 1,068.00 357.00

2014....................................................... 2.8 732.00 1,098.00 367.00

2015....................................................... 2.8 752.00 1,129.00 377.00

2016....................................................... 2.8 773.00 1,160.00 387.00

2017....................................................... 2.8 795.00 1,193.00 398.00

2018....................................................... 2.8 817.00 1,226.00 409.00

2019....................................................... 2.8 840.00 1,261.00 421.00

2020....................................................... 2.8 864.00 1,296.00 433.00

2021....................................................... 2.8 888.00 1,332.00 445.00

2022....................................................... 2.8 913.00 1,369.00 457.00

2023....................................................... 2.8 938.00 1,408.00 470.00

2024....................................................... 2.8 965.00 1,447.00 483.00

2025....................................................... 2.8 992.00 1,488.00 497.00

2026....................................................... 2.8 1,020.00 1,529.00 511.00

2027....................................................... 2.8 1,048.00 1,572.00 525.00

2028....................................................... 2.8 1,078.00 1,616.00 540.00

2029....................................................... 2.8 1,108.00 1,662.00 555.00
27

2005 SSI Annual Report

Estimates presented in the sections that follow are based on the assumptions described in this section. Furthermore, for purposes of making these estimates, it is assumed that no changes will occur during the projection period in the present statutory provisions and regulations under which the SSI program operates.

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM

This section presents projections of the various subpopulations which lead to the numbers of persons

receiving Federal SSI payments. As described above, the model that produces these projections is structured to handle population flows by single-year-of-age.1 Correspondingly, the tables in this section present

population totals by selected age groupings for the SSI recipient categories of (1) aged and (2) blind or

disabled. The following paragraphs discuss these age groupings and recipient categories in more detail.

 • The aged category includes those individuals whose eligibility for SSI benefits is established based

on meeting the age-652-or-older requirement for assistance, and other SSI eligibility requirements

including income and resource limits. In December 2004, there were 1.211 million aged recipients of

Federally-administered SSI payments. 

 • The blind or disabled category includes those individuals whose eligibility is established based on

meeting the definition of blindness or disability and the applicable income and resource limits as well

as any other SSI eligibility requirements. This category is often subdivided into two subcategories

based on age: blind or disabled adults (age 18 or older) and blind or disabled children (under age 18).

In December 2004, there were 5.777 million blind or disabled recipients of Federally-administered

SSI payments 

 — The blind or disabled adults subcategory includes those individuals age 18 or older who meet

the definition of blindness or disability for individuals age 18 or older and SSI income and

resource limits. Included in this category are students age 18 to 21 who must meet the adult definition of disability and differ from other adults only in that they qualify for a special student

earned income exclusion. After attainment of age 65, these individuals generally continue to be

classified as blind or disabled adults (rather than aged). In December 2004, there were 4.784 million blind or disabled recipients of Federally-administered SSI payments age 18 or older, including 7 thousand students who used the special student earned income exclusion and 766 thousand

disabled or blind recipients age 65 or older.

 — The blind or disabled children subcategory includes those individuals whose eligibility is established based on meeting the definition of blindness or disability for individuals under age 18.

These children are subject to parent-to-child deeming until they reach the age of 18. At age 18

these individuals continue to be eligible for SSI if they meet the definition of blindness or disability for individuals age 18 or older and, as a result, are reclassified as blind or disabled adults.

In December 2004, there were 993 thousand blind or disabled recipients of Federally-administered SSI payments who were under age 18.

Table IV.B1 presents historical and projected numbers of persons applying for SSI benefits, by calendar

year of application. Figure IV.B1 presents this same information in graphical form. Actual numbers of

applications received in 2004 were about 7.3 percent higher than were received in 2003 following

increases of 9.6 percent and 3.4 percent in 2002 and 2003, respectively. The actual result for 2004 was 6.6

1 Population flows are projected on a calendar-year-age basis, with activity throughout a given year tabulated according to age at the end of the calendar

year. Tabulations of recipients in current-payment status are provided as of December of each calendar year at which time calendar year of age and age last

birthday are the same. However, the tabulations that reflect activity throughout the calendar year are summarized according to calendar year of age and will

not correspond precisely to tabulations summarized according to age last birthday. For example, applications for the 0-17 age group for a given calendar year

include applications only for those individuals who are under 18 at the end of the calendar year.

2 Individuals may apply for SSI benefits based on age as of the day preceding their 65th birthday.
2005 SSI Annual Report

28

percent higher than estimated for 2004 in the 2004 Annual Report. This 3-year growth in applications is

likely related to the downturn in the economy that began early in 2001. Our short-term projections of numbers of applications reflect a continuation of that higher level of applications over the next 2 years, but

return to a path consistent with longer term historical trends as the economy is assumed to recover. Longer

term trends in applications are estimated to continue to grow from current levels roughly in line with overall population growth, as was assumed in last year’s report.

1 Based on data reported in the Integrated Workload Management System (formerly known as the District Office Workload Report).

2 “All” column estimated by the Office of Research, Evaluation, and Statistics using a 10-percent sample and published in the SSI Annual Statistical

Report.

3 Includes conversions from State programs and applications received in 1973. 4 Estimated totals revised from prior SSI Annual Reports.

5 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B1.—SSI Federally-Administered Applications,1 Calendar Years 1974-2029

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 2, 3 . 125 590 626 1,303 158 20 1,434 1,496 2,822 2,931 5,752

1975 2, 4 . 94 276 258 443 15 5/ 238 145 1,086 382 1,468

1976 . . . . 82 260 250 384 8 5/ 175 80 984 254 1,239

1977 . . . . 100 286 246 401 7 1 174 84 1,040 259 1,298

1978 . . . . 94 276 256 413 7 5/ 170 88 1,046 258 1,304

1979 . . . . 106 282 268 426 7 5/ 178 84 1,090 262 1,352

1980 . . . . 122 310 272 438 8 1 187 89 1,151 276 1,427

1981 . . . . 78 206 173 271 5 5/ 88 42 733 130 864

1982 . . . . 88 246 206 278 11 1 93 48 830 141 971

1983 . . . . 102 258 225 311 5 1 122 68 902 190 1,092

1984 . . . . 103 267 247 321 7 5/ 178 108 944 286 1,230

1985 . . . . 114 294 297 409 7 5/ 151 73 1,122 223 1,345

1986 . . . . 122 316 334 426 7 1 150 81 1,205 231 1,437

1987 . . . . 108 287 299 331 7 1 134 66 1,033 200 1,233

1988 . . . . 114 282 301 317 7 1 131 69 1,021 200 1,221

1989 . . . . 116 297 323 329 7 5/ 146 76 1,072 222 1,294

1990 . . . . 149 335 380 356 6 5/ 156 71 1,226 227 1,454

1991 . . . . 237 391 453 391 7 5/ 159 68 1,479 227 1,706

1992 . . . . 339 453 522 407 8 5/ 163 64 1,728 226 1,955

1993 . . . . 473 506 570 416 7 5/ 158 61 1,973 218 2,191

1994 . . . . 517 492 571 402 6 5/ 136 52 1,989 188 2,177

1995 . . . . 473 435 524 363 6 5/ 121 44 1,801 165 1,966

1996 . . . . 431 393 500 345 9 1 108 44 1,678 153 1,831

1997 . . . . 306 317 438 307 8 1 82 35 1,377 117 1,494

1998 . . . . 318 317 453 331 9 1 96 39 1,428 136 1,563

1999 . . . . 338 317 470 336 6 5/ 107 39 1,468 145 1,614

2000 . . . . 337 321 486 341 6 5/ 102 39 1,493 140 1,633

2001 . . . . 351 346 502 354 4 5/ 98 35 1,558 134 1,691

2002 . . . . 385 388 550 384 4 5/ 105 38 1,711 142 1,853

2003 . . . . 400 404 565 408 4 5/ 100 36 1,781 135 1,916

2004 . . . . 420 438 604 452 4 5/ 101 37 1,919 138 2,057

Projected:

2005 . . . . 424 430 594 467 5 5/ 100 37 1,921 137 2,057

2006 . . . . 403 408 572 464 5 5/ 108 37 1,852 145 1,997

2007 . . . . 382 380 536 463 6 5/ 112 37 1,767 149 1,916

2008 . . . . 376 374 520 471 6 5/ 115 37 1,747 152 1,899

2009 . . . . 372 371 507 479 6 5/ 117 37 1,735 154 1,889

2010 . . . . 369 372 499 488 7 5/ 119 37 1,735 156 1,890

2011 . . . . 369 375 493 495 7 5/ 125 37 1,739 161 1,900

2012 . . . . 370 378 489 502 8 5/ 131 37 1,746 168 1,914

2013 . . . . 371 380 486 509 8 5/ 136 37 1,753 174 1,927

2014 . . . . 372 380 484 515 8 5/ 142 38 1,760 179 1,939

2015 . . . . 373 380 485 519 8 5/ 147 38 1,766 185 1,950

2016 . . . . 374 380 487 521 8 5/ 151 39 1,770 190 1,960

2017 . . . . 375 381 489 521 9 5/ 155 40 1,774 195 1,969

2018 . . . . 376 384 490 520 9 5/ 160 41 1,778 201 1,979

2019 . . . . 376 386 490 520 9 5/ 166 42 1,783 208 1,991

2020 . . . . 377 389 490 521 9 5/ 171 43 1,786 215 2,001

2021 . . . . 379 389 492 519 10 5/ 175 45 1,789 221 2,009

2022 . . . . 380 390 495 515 10 5/ 179 47 1,790 226 2,017

2023 . . . . 381 390 500 510 10 5/ 183 49 1,792 232 2,024

2024 . . . . 383 390 505 505 10 5/ 187 51 1,793 238 2,031

2025 . . . . 384 389 511 500 10 5/ 190 53 1,795 244 2,038

2026 . . . . 385 389 516 496 10 5/ 193 55 1,796 248 2,044

2027 . . . . 386 389 521 493 10 5/ 194 57 1,798 251 2,049

2028 . . . . 386 389 524 491 10 5/ 195 59 1,801 254 2,055

2029 . . . . 387 389 526 492 10 5/ 196 61 1,804 257 2,062
29

2005 SSI Annual Report

The adjudication of these applications involves an evaluation of levels of income and resources available

to the applicants, as well as other eligibility factors including marital and citizenship status and living

arrangements. In addition, in over 90 percent of the cases, an evaluation of an alleged impairment must be

done by the appropriate State Disability Determination Service. An unfavorable disability determination

may then be appealed by the applicant through several administrative levels of appeal. If all administrative

levels of appeal are exhausted, the applicant may in turn carry his/her appeal to the Federal courts. Data on

recent historical experience for this disability decision process are presented in section V.C. 

Table IV.B2 and figure IV.B2 present historical and projected numbers of persons who are ultimately

awarded SSI eligibility as a result of this decision process. In that table and graph, we are essentially

counting individuals as being awarded in the first month that they move into SSI payment status. For this

reason, we refer to these individuals as “new entrants” rather than “awards.”1 The numbers of new

entrants into SSI payment status increased in 1998 and again slightly in 1999 following a period of decline

ending in 1997. In 2000, the numbers of new entrants experienced a small decrease but resumed growing

in 2001 and continued growing through 2004 with an increase in 2004 of 4.1 percent. The growth in

awards in recent years has not kept pace with the growth in applications, and the number of claims pending adjudication has grown. Our projections assume that the level of new entrants will continue at a somewhat higher level for the next few years, reflecting both the continued assumed higher level of applications

in the next couple of years and the reduction in pending claims, as more administrative resources become

available to process claims. Over the longer term the numbers of new entrants are estimated to increase

gradually in line with the projected growth in applications.

 Figure IV.B1.—SSI Federally-Administered Applications by Age Group, Calendar Years 1975-2030

[In thousands]

1 In addition, these counts differ slightly from other similar totals identified as “awards” and published by the Office of Research, Evaluation, and Statistics

(ORES) in the Annual Statistical Supplement to the Social Security Bulletin. The ORES totals are similar in concept to those used in this report, but differ

slightly due to the timing of the action being tabulated. For example, ORES does not count a disability benefit as being awarded until the disability decision

is made. In contrast, under the procedures used in this report, individuals first coming on the SSI rolls through a finding of presumptive disability would be

counted as a “new entrant” in the first month of presumptive disability payment.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Projected

75 or older
2005 SSI Annual Report

30

1 Represents period in which first payment was made, not date of first eligibility for payments.

2 Historical totals estimated based on 1-percent or 10-percent sample data.

3 Totals for 1974 include recipients converted from previous State programs as well as new entrants to the SSI program during 1974. 4 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B2.—SSI Federally-Administered New Entrants, Calendar Years 1974-2029

[In thousands]

Calendar year 1

Blind or disabled, by age group Aged, by age group Totals 2

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 3. . . . 63 390 381 925 141 18 1,211 1,268 1,919 2,479 4,398

1975 . . . . . 58 133 105 272 16 4/ 216 131 584 347 931

1976 . . . . . 43 105 88 207 9 4/ 147 70 452 218 669

1977 . . . . . 48 104 84 184 8 1 140 69 429 209 637

1978 . . . . . 43 92 76 154 6 4/ 127 66 370 193 563

1979 . . . . . 44 87 62 133 4 4/ 116 53 330 169 499

1980 . . . . . 41 92 61 142 4 4/ 125 59 341 184 524

1981 . . . . . 37 77 49 106 3 4/ 80 37 272 117 389

1982 . . . . . 38 63 51 90 4 4/ 72 31 245 103 348

1983 . . . . . 47 88 62 117 3 4/ 95 51 317 146 463

1984 . . . . . 47 109 78 142 4 4/ 131 78 380 209 589

1985 . . . . . 48 104 80 148 4 4/ 106 46 384 152 536

1986 . . . . . 55 127 109 153 5 4/ 110 51 449 161 610

1987 . . . . . 48 119 106 157 5 4/ 116 52 435 167 602

1988 . . . . . 50 101 108 146 5 1 112 56 412 167 579

1989 . . . . . 48 113 115 155 5 4/ 127 62 436 189 625

1990 . . . . . 76 136 134 182 5 4/ 149 66 533 215 748

1991 . . . . . 126 146 172 200 6 4/ 139 54 650 193 844

1992 . . . . . 221 199 221 233 6 4/ 133 48 881 181 1,062

1993 . . . . . 235 194 221 225 6 4/ 136 49 881 185 1,066

1994 . . . . . 204 164 207 215 6 4/ 116 42 796 157 953

1995 . . . . . 177 147 207 218 5 4/ 105 36 755 141 895

1996 . . . . . 145 134 193 203 6 1 93 35 681 128 809

1997 . . . . . 116 111 171 178 4 4/ 68 25 580 93 673

1998 . . . . . 135 117 181 194 7 1 78 30 634 108 742

1999 . . . . . 140 114 186 195 5 4/ 88 33 640 120 760

2000 . . . . . 145 112 180 191 5 4/ 84 31 633 115 748

2001 . . . . . 157 121 185 198 4 4/ 79 28 665 107 772

2002 . . . . . 171 128 195 212 4 4/ 82 29 710 111 821

2003 . . . . . 180 132 194 214 4 4/ 77 27 724 104 828

2004 . . . . . 183 138 202 231 4 4/ 78 27 757 105 862

Projected:

2005 . . . . . 189 144 213 252 5 4/ 80 27 804 107 911

2006 . . . . . 184 148 225 270 6 4/ 88 29 834 117 951

2007 . . . . . 175 137 210 269 7 4/ 91 29 799 121 919

2008 . . . . . 170 133 200 270 8 4/ 94 29 780 123 903

2009 . . . . . 167 129 190 270 7 4/ 95 29 763 124 887

2010 . . . . . 166 128 185 272 7 4/ 96 29 758 125 884

2011 . . . . . 166 127 181 273 7 4/ 100 29 754 129 883

2012 . . . . . 166 127 179 275 7 4/ 105 29 755 134 889

2013 . . . . . 166 128 177 279 8 4/ 110 29 759 139 897

2014 . . . . . 167 128 177 283 8 4/ 114 30 762 143 906

2015 . . . . . 168 127 177 286 8 4/ 118 30 765 148 913

2016 . . . . . 168 127 177 287 8 4/ 121 31 767 152 919

2017 . . . . . 168 127 178 287 8 4/ 125 31 769 156 925

2018 . . . . . 169 128 178 287 8 4/ 128 32 771 161 931

2019 . . . . . 169 129 178 287 9 4/ 133 33 772 167 939

2020 . . . . . 170 130 178 287 9 4/ 138 34 773 172 945

2021 . . . . . 170 130 178 286 9 4/ 141 36 774 177 950

2022 . . . . . 171 131 180 285 9 4/ 144 37 775 181 956

2023 . . . . . 171 131 182 283 9 4/ 147 39 776 186 962

2024 . . . . . 172 131 184 280 10 4/ 150 40 776 191 967

2025 . . . . . 172 130 186 278 10 4/ 153 42 776 195 971

2026 . . . . . 173 130 188 276 10 4/ 155 44 776 198 975

2027 . . . . . 173 130 190 274 9 4/ 156 45 776 201 977

2028 . . . . . 173 130 191 272 10 4/ 157 47 777 203 980

2029 . . . . . 174 131 192 272 10 4/ 157 48 777 206 983
31

2005 SSI Annual Report

Some of the persons receiving SSI benefits in a year will be removed from current-payment status during

the year because of death or the loss of SSI eligibility. The loss of eligibility can occur either as the result

of an evaluation of the individual’s nonmedical factors of eligibility, including income and resources, or

due to a determination that he/she is no longer disabled as defined under the Social Security Act.1 For

example, disabled children, upon attainment of age 18, lose eligibility if they do not qualify for benefits

under the disabled adult eligibility criteria. For purposes of this presentation, we refer to the net reduction

in the number of SSI recipients in payment status during a period as the number of SSI terminations for

that period. 

In the following tables, we have separated the numbers of people moving out of payment status into those

leaving due to death (table IV.B3), and those leaving for all other reasons (table IV.B4). Table IV.B5 and

figure IV.B3 present historical and projected numbers of total terminations by calendar year. 

Actual experience for terminations in 2004 was 7.8 percent higher than anticipated in the 2004 Annual

Report. Terminations due to death were 5.9 percent lower than anticipated, but terminations due to reasons

other than death were 13.8 percent higher than estimated last year. Much of the difference between actual

2004 results and the estimated terminations in last year’s report is attributable to a higher than estimated

level of temporary suspensions in December 2004. The return of many of these cases to current-payment

status in 2005 results in lower estimated net terminations in 2005. The primary reasons for this temporary

phenomenon include (1) higher than usual increases in OASDI benefits under the Automatic Earnings

Reappraisal Operation (AERO), (2) the fact that December 2004 contained five Fridays, and hence potentially more paydays, and (3) ongoing processing of the Special Disability Workload (SDW), a group of

cases involving SSI recipients whose OASDI-insured status was not recognized at the time the insured status was attained. The effects of the first of these factors are not assumed to continue in the future, while

the effects of items 2 and 3 are expected to continue for the next several years..

 Figure IV.B2.—SSI Federally-Administered New Entrants by Age Group, Calendar Years 1975-2030

[In thousands]

1 Some historical details on income and resource redeterminations and the results of continuing disability reviews are presented in section V.D. Section V.E

presents information on certain incentive programs intended to encourage disabled SSI recipients to return to work.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
2005 SSI Annual Report

32

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2029

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 3 8 34 7 2 40 97 55 137 192

1975 . . . . 1 5 12 35 10 2 39 108 65 147 212

1976 . . . . 2 5 9 36 12 1 34 103 64 137 201

1977 . . . . 1 5 12 30 15 1 36 101 65 137 203

1978 . . . . 2 5 8 34 16 2 31 95 67 126 193

1979 . . . . 2 6 9 32 18 2 29 92 67 121 189

1980 . . . . 3 5 9 31 22 1 27 100 71 127 198

1981 . . . . 3 5 8 31 24 2 21 92 73 112 186

1982 . . . . 3 4 8 28 21 2 16 80 65 96 161

1983 . . . . 3 6 8 25 21 3 15 79 65 94 158

1984 . . . . 3 4 9 29 18 5 13 83 67 96 163

1985 . . . . 2 6 10 29 24 6 17 84 77 101 178

1986 . . . . 2 8 12 28 22 8 15 83 80 98 178

1987 . . . . 3 8 13 30 23 10 15 82 87 97 184

1988 . . . . 5 8 14 31 25 12 16 81 95 97 191

1989 . . . . 3 8 16 33 23 12 15 78 95 93 187

1990 . . . . 4 9 18 36 22 14 16 75 103 92 194

1991 . . . . 4 9 20 39 23 17 17 74 112 91 203

1992 . . . . 4 11 22 38 22 15 16 69 111 84 195

1993 . . . . 6 13 27 41 23 17 16 72 127 88 215

1994 . . . . 6 14 27 41 23 17 16 69 127 85 212

1995 . . . . 6 13 30 43 24 18 16 65 135 81 216

1996 . . . . 7 12 30 44 24 18 16 67 135 83 218

1997 . . . . 5 10 24 43 24 19 15 64 127 79 206

1998 . . . . 5 9 24 43 25 20 14 64 127 78 205

1999 . . . . 5 9 25 45 25 21 13 63 131 76 207

2000 . . . . 5 8 27 46 25 21 12 61 132 73 205

2001 . . . . 5 8 28 47 25 22 11 60 135 71 207

2002 . . . . 5 8 28 49 24 21 11 58 135 70 205

2003 . . . . 5 9 28 51 26 21 10 56 138 66 204

2004 . . . . 5 8 27 52 25 22 10 56 140 65 205

Projected:

2005 . . . . 6 9 28 53 27 21 10 57 143 67 210

2006 . . . . 6 9 29 56 28 22 10 59 150 70 220

2007 . . . . 6 10 29 59 29 22 10 59 154 70 224

2008 . . . . 6 10 29 61 30 22 11 59 158 70 228

2009 . . . . 6 10 28 63 31 23 11 59 161 70 231

2010 . . . . 6 10 28 65 32 23 11 58 164 69 233

2011 . . . . 6 10 27 67 33 24 11 58 167 69 236

2012 . . . . 6 10 27 68 34 24 12 57 169 69 238

2013 . . . . 6 10 26 69 36 24 12 57 171 69 240

2014 . . . . 6 10 26 70 37 25 13 57 174 69 243

2015 . . . . 6 10 26 70 38 25 13 56 176 69 245

2016 . . . . 6 10 26 71 40 25 14 56 178 70 248

2017 . . . . 6 11 26 71 41 26 14 56 181 70 251

2018 . . . . 6 11 26 71 42 27 14 56 183 71 253

2019 . . . . 6 11 26 71 43 27 15 56 185 71 256

2020 . . . . 6 11 26 71 45 28 16 57 187 72 259

2021 . . . . 6 11 26 71 46 29 16 57 189 74 262

2022 . . . . 6 11 26 71 47 30 16 58 190 75 265

2023 . . . . 6 11 26 70 48 31 17 59 192 76 268

2024 . . . . 6 11 26 69 49 32 17 61 194 78 272

2025 . . . . 6 11 27 69 50 33 18 62 195 80 275

2026 . . . . 6 11 27 68 51 34 18 64 197 82 278

2027 . . . . 6 11 27 67 51 35 19 65 198 84 282

2028 . . . . 6 11 28 67 52 36 19 67 199 86 285

2029 . . . . 6 11 28 66 52 37 19 69 200 88 289
33

2005 SSI Annual Report

1 Historical totals estimated based on 1-percent or 10-percent sample data.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B4.—SSI Federally-Administered Terminations Due to Reasons Other Than Death, Calendar Years 1974-2029

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 5 33 34 69 12 2 27 29 154 56 210

1975 . . . . 7 50 44 104 15 2 88 91 221 180 401

1976 . . . . 11 70 61 139 24 1 107 133 306 240 546

1977 . . . . 13 65 56 110 19 1 76 92 265 168 433

1978 . . . . 11 64 49 97 18 1 64 86 241 150 391

1979 . . . . 12 59 43 96 23 1 58 85 234 144 378

1980 . . . . 19 48 43 80 23 1 44 77 214 121 334

1981 . . . . 17 43 39 72 21 1 49 86 192 134 326

1982 . . . . 19 48 43 79 23 1 50 87 212 137 348

1983 . . . . 18 43 36 63 14 1 25 61 175 86 261

1984 . . . . 13 51 37 77 21 1 37 60 200 98 298

1985 . . . . 11 42 37 68 13 2 23 54 172 77 249

1986 . . . . 18 49 47 73 16 3 34 60 206 94 300

1987 . . . . 19 51 48 75 17 3 32 57 214 89 302

1988 . . . . 19 52 51 74 15 5 33 59 216 93 309

1989 . . . . 19 55 52 72 16 4 33 58 218 91 308

1990 . . . . 14 52 57 73 17 8 40 68 221 108 330

1991 . . . . 20 50 70 84 18 5 33 58 248 91 339

1992 . . . . 39 68 94 103 19 8 34 56 329 90 419

1993 . . . . 34 73 97 106 22 8 37 55 340 92 433

1994 . . . . 41 73 101 107 18 8 32 49 348 81 429

1995 . . . . 47 81 111 115 20 7 32 48 382 80 461

1996 . . . . 47 89 128 119 21 8 29 49 413 78 491

1997 . . . . 128 105 147 115 18 8 24 40 522 64 586

1998 . . . . 67 89 112 110 19 8 22 38 406 61 466

1999 . . . . 119 111 120 116 20 9 24 43 495 68 563

2000 . . . . 84 99 111 112 22 9 22 38 437 61 498

2001 . . . . 65 95 111 118 20 9 22 38 418 60 478

2002 . . . . 78 100 122 133 20 9 20 35 463 55 517

2003 . . . . 72 95 122 135 20 9 20 36 453 56 509

2004 . . . . 85 101 136 156 23 9 24 38 510 62 572

Projected:

2005 . . . . 69 99 125 153 19 9 15 34 473 48 521

2006 . . . . 76 106 125 155 20 9 19 34 490 53 543

2007 . . . . 69 111 127 164 20 9 19 34 499 52 551

2008 . . . . 81 114 126 169 21 10 19 33 521 52 573

2009 . . . . 76 116 124 175 22 10 20 34 524 53 577

2010 . . . . 72 119 122 178 23 10 20 34 524 55 579

2011 . . . . 70 123 119 178 24 10 21 35 524 56 581

2012 . . . . 71 126 116 179 25 11 22 35 528 57 585

2013 . . . . 72 126 115 182 26 11 23 34 533 57 590

2014 . . . . 72 125 114 185 27 11 24 34 535 58 593

2015 . . . . 72 124 114 187 28 11 25 34 536 59 595

2016 . . . . 72 125 114 188 29 11 26 34 539 60 599

2017 . . . . 73 126 114 188 30 12 26 34 542 60 602

2018 . . . . 73 127 114 187 31 12 27 34 544 62 605

2019 . . . . 72 128 114 187 32 12 28 34 546 63 609

2020 . . . . 72 129 114 187 33 13 29 35 548 64 612

2021 . . . . 72 130 114 186 33 13 30 35 549 66 614

2022 . . . . 73 130 115 185 34 13 31 36 550 67 617

2023 . . . . 73 130 116 183 35 14 32 37 551 69 619

2024 . . . . 73 130 118 181 35 14 32 38 551 70 622

2025 . . . . 73 130 119 179 36 15 33 39 552 72 624

2026 . . . . 73 130 120 177 36 15 34 40 553 74 627

2027 . . . . 74 131 122 176 37 16 34 42 554 76 630

2028 . . . . 74 131 122 175 37 16 35 43 555 77 633

2029 . . . . 74 131 123 174 37 17 35 44 556 79 635
2005 SSI Annual Report

34

1 Historical totals estimated based on 1-percent or 10-percent sample data.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2029

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 5 36 42 103 19 4 67 126 209 193 402

1975 . . . . 8 55 56 140 25 3 127 199 287 326 613

1976 . . . . 13 75 71 174 35 3 141 236 371 377 748

1977 . . . . 14 71 68 140 34 3 112 194 330 305 636

1978 . . . . 14 70 58 130 34 3 94 181 308 276 584

1979 . . . . 13 65 52 128 41 2 88 177 301 265 566

1980 . . . . 22 53 52 111 45 2 70 177 284 248 532

1981 . . . . 20 48 47 103 45 3 69 177 266 246 512

1982 . . . . 21 52 51 107 43 2 65 168 277 233 510

1983 . . . . 21 49 44 87 34 4 39 140 240 180 419

1984 . . . . 16 55 46 106 39 6 50 144 267 194 461

1985 . . . . 13 47 47 97 37 8 40 138 249 178 427

1986 . . . . 21 58 59 101 38 11 48 143 287 192 478

1987 . . . . 22 59 61 106 40 13 47 138 301 185 486

1988 . . . . 24 60 65 105 39 18 49 140 311 189 500

1989 . . . . 22 63 69 105 39 15 47 136 312 183 496

1990 . . . . 18 61 75 109 39 22 56 144 324 200 524

1991 . . . . 25 60 90 123 40 22 50 132 360 182 542

1992 . . . . 42 78 115 140 41 23 50 125 440 175 614

1993 . . . . 40 86 124 148 45 24 54 127 467 181 648

1994 . . . . 47 87 128 148 41 24 48 118 475 166 642

1995 . . . . 54 94 142 158 44 25 47 113 517 160 677

1996 . . . . 54 101 158 163 45 27 45 116 548 161 710

1997 . . . . 133 116 172 159 43 26 39 105 648 143 792

1998 . . . . 73 98 136 153 44 29 36 102 533 138 671

1999 . . . . 124 120 146 161 45 31 38 106 626 144 770

2000 . . . . 89 107 138 159 46 29 35 99 569 134 703

2001 . . . . 70 103 139 166 45 31 34 98 554 132 685

2002 . . . . 83 108 150 182 44 30 31 93 598 124 722

2003 . . . . 76 104 149 186 46 30 31 92 591 122 713

2004 . . . . 90 109 163 208 48 31 34 93 650 127 777

Projected:

2005 . . . . 74 107 153 206 46 31 24 91 616 115 732

2006 . . . . 82 115 154 211 48 31 29 94 640 123 763

2007 . . . . 75 120 156 222 49 31 29 93 653 122 776

2008 . . . . 87 124 155 230 51 32 30 92 679 122 801

2009 . . . . 82 126 153 238 53 33 30 92 685 123 808

2010 . . . . 78 129 150 243 55 33 31 93 688 124 812

2011 . . . . 76 133 146 245 57 34 33 93 691 126 817

2012 . . . . 77 136 143 247 60 35 34 92 697 126 823

2013 . . . . 78 136 142 251 62 35 35 91 704 127 831

2014 . . . . 78 135 140 255 64 36 36 91 708 127 836

2015 . . . . 78 134 140 257 67 36 38 90 712 128 840

2016 . . . . 79 135 140 259 69 37 39 90 718 129 847

2017 . . . . 79 136 140 259 71 38 40 90 722 131 853

2018 . . . . 79 138 140 259 73 39 42 90 727 132 859

2019 . . . . 79 139 140 259 75 40 43 91 731 134 865

2020 . . . . 78 140 140 258 77 41 45 91 734 137 871

2021 . . . . 79 141 140 257 79 42 46 93 737 139 877

2022 . . . . 79 141 141 255 81 43 47 95 740 142 882

2023 . . . . 79 141 142 253 82 45 48 97 743 145 888

2024 . . . . 79 141 144 250 84 46 49 99 745 148 893

2025 . . . . 79 141 146 247 86 48 51 101 747 152 899

2026 . . . . 80 141 148 245 87 49 52 104 749 156 905

2027 . . . . 80 142 149 243 88 50 53 107 752 160 912

2028 . . . . 80 142 150 242 89 52 54 110 754 164 918

2029 . . . . 80 142 150 241 89 53 54 114 757 168 924
35

2005 SSI Annual Report

Combining the number of persons coming on the SSI payment rolls during a year with the number of those

already receiving benefits at the beginning of the year, and subtracting the number leaving the rolls during

the year, yields the number of persons receiving Federally-administered SSI payments at the end of the

specified period. Individuals receiving Federal SSI payments, who comprise the great majority of Federally-administered recipients, are presented in table IV.B6 and in figure IV.B4. The net effect of actual

experience in 2004 was that there were roughly 0.9 percent fewer Federal SSI recipients at the end of 2004

than estimated for the 2004 Annual Report.

 Figure IV.B3.—SSI Federally-Administered Terminations by Age Group, Calendar Years 1975-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2029

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 70 338 321 756 109 13 1,010 1,019 1,606 2,029 3,635

1975 . . . . 106 395 352 838 164 14 963 1,062 1,869 2,025 3,893

1976 . . . . 124 420 352 813 208 14 864 1,003 1,932 1,867 3,799

1977 . . . . 147 442 358 800 249 16 785 980 2,013 1,765 3,778

1978 . . . . 165 460 361 791 277 16 728 958 2,069 1,686 3,755

1979 . . . . 176 472 359 764 307 16 656 938 2,094 1,593 3,687

1980 . . . . 188 500 351 750 342 17 609 925 2,149 1,533 3,682

1981 . . . . 194 514 349 720 366 17 541 888 2,160 1,430 3,590

1982 . . . . 191 517 346 683 386 21 459 871 2,144 1,329 3,473

1983 . . . . 198 555 366 692 412 28 449 890 2,250 1,339 3,590

1984 . . . . 210 595 393 700 406 48 463 884 2,352 1,347 3,699

1985 . . . . 226 634 426 717 402 72 462 860 2,477 1,322 3,799

1986 . . . . 240 688 475 739 397 91 465 827 2,630 1,291 3,922

1987 . . . . 249 717 524 756 392 113 464 804 2,751 1,268 4,019

1988 . . . . 254 738 564 774 387 127 468 777 2,844 1,245 4,089

1989 . . . . 263 757 613 799 382 145 488 760 2,959 1,247 4,206

1990 . . . . 306 788 677 840 389 156 508 749 3,156 1,257 4,412

1991 . . . . 395 833 769 897 390 166 542 736 3,451 1,279 4,730

1992 . . . . 555 920 877 970 402 173 577 727 3,898 1,304 5,202

1993 . . . . 721 990 979 1,034 410 179 604 720 4,312 1,324 5,636

1994 . . . . 839 1,032 1,071 1,089 425 182 610 716 4,638 1,326 5,965

1995 . . . . 915 1,058 1,150 1,134 435 188 601 713 4,880 1,315 6,194

1996 . . . . 954 1,066 1,198 1,176 444 192 586 711 5,029 1,296 6,326

1997 . . . . 878 1,039 1,196 1,198 457 193 547 704 4,960 1,251 6,212

1998 . . . . 885 1,038 1,238 1,243 464 197 521 705 5,063 1,226 6,289

1999 . . . . 845 1,005 1,274 1,278 474 195 499 704 5,072 1,203 6,275

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Historical Projected

75 or older

35-49

65-74

50-64

18-34

0-17
2005 SSI Annual Report

36

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Historical data: (Cont.)

2000 . . . . 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

2001 . . . . 879 995 1,329 1,353 493 196 461 703 5,245 1,165 6,410

2002 . . . . 912 1,002 1,344 1,394 502 200 447 705 5,354 1,152 6,505

2003 . . . . 956 1,023 1,353 1,436 511 204 430 703 5,482 1,133 6,614

2004 . . . . 990 1,044 1,350 1,476 515 208 412 699 5,584 1,111 6,695

Projected:

2005 . . . . 1,038 1,077 1,372 1,543 524 215 407 697 5,769 1,104 6,873

2006 . . . . 1,067 1,117 1,393 1,626 534 219 409 688 5,955 1,096 7,052

2007 . . . . 1,088 1,148 1,391 1,696 548 223 415 679 6,095 1,094 7,189

2008 . . . . 1,090 1,175 1,379 1,755 568 226 424 670 6,192 1,094 7,286

2009 . . . . 1,093 1,194 1,355 1,811 585 230 433 662 6,268 1,095 7,362

2010 . . . . 1,101 1,208 1,330 1,862 601 234 442 653 6,335 1,095 7,431

2011 . . . . 1,111 1,218 1,306 1,900 624 237 456 643 6,395 1,099 7,494

2012 . . . . 1,120 1,223 1,287 1,928 651 240 473 633 6,450 1,107 7,556

2013 . . . . 1,129 1,227 1,272 1,954 677 243 491 626 6,501 1,118 7,619

2014 . . . . 1,137 1,231 1,258 1,979 702 246 511 621 6,553 1,132 7,685

2015 . . . . 1,145 1,235 1,251 1,996 725 250 532 618 6,603 1,150 7,753

2016 . . . . 1,151 1,240 1,252 2,005 748 254 551 620 6,650 1,170 7,821

2017 . . . . 1,156 1,246 1,255 2,007 769 261 568 625 6,695 1,193 7,888

2018 . . . . 1,157 1,256 1,257 2,007 791 269 587 632 6,736 1,219 7,956

2019 . . . . 1,157 1,268 1,255 2,005 815 275 609 640 6,776 1,249 8,024

2020 . . . . 1,157 1,276 1,253 2,002 841 282 631 650 6,812 1,281 8,093

2021 . . . . 1,163 1,280 1,256 1,995 861 292 648 667 6,847 1,315 8,162

2022 . . . . 1,168 1,285 1,264 1,980 880 303 662 688 6,880 1,350 8,230

2023 . . . . 1,173 1,288 1,277 1,961 898 314 677 710 6,912 1,387 8,299

2024 . . . . 1,179 1,289 1,292 1,941 918 324 693 733 6,942 1,426 8,368

2025 . . . . 1,184 1,289 1,308 1,920 936 333 709 756 6,970 1,465 8,435

2026 . . . . 1,189 1,291 1,323 1,901 949 342 725 779 6,996 1,504 8,499

2027 . . . . 1,194 1,293 1,336 1,886 959 352 738 803 7,019 1,541 8,560

2028 . . . . 1,198 1,296 1,345 1,874 966 362 749 829 7,041 1,577 8,618

2029 . . . . 1,201 1,300 1,350 1,867 970 372 756 856 7,061 1,612 8,673

 Figure IV.B4.—SSI Recipients with Federal Benefits in Current-Payment Status, by Age Group, 

as of December, 1975-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2029 (Cont.)

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
37

2005 SSI Annual Report

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. Since

2000 the growth rate for the Federal SSI recipient population has averaged over 1.4 percent per year. Our

projections indicate that by 2010 we expect to gradually return to the modest growth rate of less than 1

percent per year over the remainder of the 25-year projection period. In order to place this projected

growth in the context of overall population growth, table IV.B7 and figure IV.B5 present Federal SSI

recipients as percentages of selected Social Security Area population totals.

1 Blind or disabled recipients as a percentage of the total Social Security Area population.

2 Aged recipients as a percentage of the 65 or older Social Security Area population.

3 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations.

Table IV.B7.—SSI Recipients with Federal Benefits in Current-Payment Status as a Percentage of 

Selected Social Security Area Population Totals, as of December, 1974-2029 

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled1 Aged 2 All 3

Historical data:

1974 . . . . 0.10 0.55 0.89 2.29 0.77 0.14 7.18 11.26 0.72 8.77 1.63

1975 . . . . .15 .63 .97 2.51 1.14 .15 6.69 11.42 .83 8.55 1.73

1976 . . . . .18 .65 .96 2.42 1.41 .14 5.87 10.51 .85 7.70 1.67

1977 . . . . .22 .67 .96 2.36 1.66 .17 5.21 9.99 .88 7.10 1.65

1978 . . . . .25 .68 .95 2.32 1.80 .16 4.73 9.50 .89 6.62 1.62

1979 . . . . .27 .68 .94 2.23 1.96 .15 4.18 9.03 .90 6.11 1.58

1980 . . . . .29 .70 .90 2.19 2.14 .16 3.82 8.66 .91 5.76 1.56

1981 . . . . .30 .72 .87 2.10 2.26 .16 3.34 8.09 .91 5.26 1.50

1982 . . . . .29 .71 .83 2.00 2.34 .19 2.78 7.68 .89 4.77 1.44

1983 . . . . .30 .76 .84 2.03 2.46 .24 2.68 7.64 .92 4.71 1.47

1984 . . . . .32 .81 .88 2.06 2.39 .40 2.72 7.38 .96 4.65 1.50

1985 . . . . .35 .87 .92 2.11 2.32 .58 2.67 7.00 1.00 4.47 1.53

1986 . . . . .37 .94 .99 2.19 2.25 .72 2.63 6.57 1.05 4.27 1.56

1987 . . . . .38 .98 1.05 2.25 2.19 .87 2.59 6.22 1.09 4.12 1.59

1988 . . . . .38 1.00 1.09 2.30 2.14 .96 2.59 5.87 1.11 3.97 1.60

1989 . . . . .40 1.03 1.15 2.36 2.09 1.07 2.66 5.60 1.14 3.91 1.63

1990 . . . . .45 1.09 1.23 2.47 2.10 1.12 2.74 5.38 1.21 3.87 1.69

1991 . . . . .57 1.16 1.35 2.62 2.08 1.17 2.89 5.17 1.30 3.88 1.79

1992 . . . . .79 1.30 1.50 2.78 2.12 1.19 3.05 4.99 1.46 3.89 1.94

1993 . . . . 1.02 1.41 1.63 2.91 2.15 1.20 3.17 4.84 1.59 3.90 2.08

1994 . . . . 1.17 1.49 1.74 3.01 2.22 1.20 3.19 4.72 1.70 3.87 2.18

1995 . . . . 1.26 1.54 1.81 3.09 2.28 1.21 3.15 4.59 1.77 3.80 2.25

1996 . . . . 1.31 1.56 1.86 3.08 2.34 1.21 3.09 4.46 1.80 3.72 2.27

1997 . . . . 1.20 1.52 1.84 3.02 2.42 1.19 2.90 4.34 1.76 3.56 2.21

1998 . . . . 1.20 1.52 1.88 3.02 2.48 1.19 2.78 4.26 1.78 3.48 2.21

1999 . . . . 1.14 1.48 1.91 3.00 2.55 1.16 2.68 4.19 1.77 3.40 2.19

2000 . . . . 1.14 1.45 1.94 2.98 2.60 1.15 2.60 4.10 1.77 3.32 2.18

2001 . . . . 1.18 1.44 1.97 2.97 2.65 1.13 2.48 4.03 1.79 3.23 2.19

2002 . . . . 1.22 1.44 1.99 2.97 2.70 1.13 2.40 3.98 1.81 3.17 2.20

2003 . . . . 1.28 1.46 2.00 2.95 2.73 1.14 2.30 3.95 1.84 3.10 2.22

2004 . . . . 1.32 1.49 1.99 2.92 2.73 1.16 2.18 3.90 1.86 3.02 2.23

Projected:

2005 . . . . 1.38 1.54 2.02 2.95 2.74 1.19 2.13 3.87 1.91 2.97 2.27

2006 . . . . 1.41 1.59 2.06 3.01 2.73 1.21 2.09 3.81 1.95 2.92 2.31

2007 . . . . 1.44 1.61 2.07 3.05 2.72 1.24 2.06 3.76 1.98 2.86 2.34

2008 . . . . 1.45 1.63 2.07 3.07 2.73 1.25 2.04 3.71 2.00 2.81 2.35

2009 . . . . 1.45 1.64 2.05 3.07 2.73 1.27 2.02 3.66 2.01 2.77 2.36

2010 . . . . 1.46 1.65 2.03 3.08 2.71 1.29 1.99 3.60 2.01 2.71 2.36

2011 . . . . 1.47 1.64 2.02 3.08 2.69 1.30 1.97 3.52 2.02 2.65 2.36

2012 . . . . 1.48 1.64 2.00 3.08 2.67 1.31 1.94 3.46 2.02 2.59 2.36

2013 . . . . 1.49 1.64 1.99 3.08 2.65 1.32 1.92 3.39 2.02 2.54 2.36

2014 . . . . 1.50 1.64 1.97 3.08 2.63 1.32 1.92 3.32 2.02 2.49 2.37

2015 . . . . 1.50 1.64 1.96 3.08 2.61 1.32 1.91 3.26 2.02 2.46 2.37

2016 . . . . 1.50 1.65 1.95 3.08 2.59 1.32 1.91 3.20 2.02 2.43 2.37

2017 . . . . 1.50 1.65 1.94 3.08 2.58 1.32 1.91 3.15 2.02 2.41 2.38

2018 . . . . 1.50 1.66 1.94 3.07 2.57 1.32 1.91 3.10 2.02 2.38 2.38

2019 . . . . 1.50 1.66 1.94 3.06 2.55 1.32 1.91 3.06 2.01 2.36 2.39

2020 . . . . 1.50 1.66 1.93 3.06 2.54 1.31 1.91 3.02 2.01 2.35 2.39

2021 . . . . 1.51 1.66 1.93 3.05 2.54 1.30 1.91 2.98 2.01 2.33 2.39

2022 . . . . 1.51 1.67 1.93 3.05 2.53 1.30 1.91 2.94 2.00 2.33 2.40

2023 . . . . 1.51 1.67 1.93 3.04 2.53 1.29 1.91 2.92 2.00 2.32 2.40

2024 . . . . 1.51 1.67 1.94 3.04 2.53 1.28 1.91 2.89 2.00 2.31 2.41

2025 . . . . 1.51 1.67 1.94 3.03 2.52 1.26 1.91 2.87 1.99 2.31 2.41

2026 . . . . 1.51 1.68 1.94 3.03 2.52 1.25 1.92 2.85 1.99 2.31 2.42

2027 . . . . 1.51 1.68 1.94 3.02 2.51 1.24 1.93 2.83 1.99 2.31 2.42

2028 . . . . 1.52 1.69 1.94 3.02 2.50 1.23 1.94 2.82 1.98 2.32 2.43

2029 . . . . 1.52 1.69 1.94 3.01 2.49 1.22 1.94 2.80 1.98 2.32 2.43
2005 SSI Annual Report

38

For the totals shown in table IV.B7, the percentages are calculated using the population age group totals

corresponding to the age groups in the Federal recipient categories. Because the ratios for the separate

recipient categories are computed as percentages of differing base populations, the percentage for the total

SSI recipient population is not the arithmetic sum of the percentages for the respective recipient categories. As indicated in the table, the percentage of the total Social Security Area population who were receiving Federal SSI payments declined from the inception of the program through the early 1980s. In 1983,

this percentage started increasing and continued to increase through 1996. Due to factors described previously, the percentage of the total population receiving Federal SSI payments declined in 1997, but has leveled out since and is expected to increase gradually over the projection period. 

The various subcategories of Federal SSI recipients, however, follow significantly different growth patterns in relationship to their respective population totals. The aged Federal SSI recipient population

declines steadily as a percentage of the 65 or older population throughout the historical and projection

periods. In contrast, except for recent decreases due to the eligibility redeterminations and continuing disability reviews mandated by Public Law 104-193, the number of blind or disabled children receiving Federal SSI payments increased steadily as a percentage of the under age 18 population, with the increase

being quite steep in the early 1990s. The total blind or disabled Federal SSI recipient population as a percentage of the total population remained fairly level until the early 1980s when it started increasing and

continued to increase through 1996. After the modest decrease in the late 1990s due to the implementation

of legislation described in other sections, the number of blind or disabled persons receiving Federal SSI

payments began a gradual increase as a percentage of the total population that is estimated to continue

through 2010 and then level off at about 2 percent of the total population.

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B8.

 Figure IV.B5.—SSI Recipients with Federal Benefits in Current-Payment Status as a Percentage of 

Selected Social Security Area Population Age Groups, as of December, 1975-2030

0%

2%

4%

6%

8%

10%

12%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

0-17

18-34

35-49

50-64

65-74

75 or older

Total

Historical Projected
39

2005 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

The combined numbers of persons receiving either a Federal SSI payment or a Federally-administered

State supplement are displayed in table IV.B9.

In examining the recent history of SSI participation and the projections of such participation in the near

future, certain patterns are worth noting. The rapid increase in the total number of SSI participants in the

early 1990s is a function of the growth in the numbers of disabled adults and children. The growth in the

numbers of children receiving SSI resulted in large part from the Supreme Court decision in the case of

Table IV.B8.—SSI Recipients with Federally-Administered State Supplementary Benefits Only,

in Current-Payment Status as of December, 1974-2029

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1 12 20 57 13 1 138 120 104 257 361

1975 . . . . 1 15 25 74 21 2 144 138 139 282 421

1976 . . . . 1 14 27 87 26 2 134 146 156 280 437

1977 . . . . 1 16 27 94 35 2 136 150 174 286 460

1978 . . . . 1 16 26 93 41 2 127 155 180 282 462

1979 . . . . 1 18 25 89 49 2 121 157 184 278 462

1980 . . . . 2 20 26 82 52 2 112 162 185 274 460

1981 . . . . 1 19 26 75 58 2 94 155 181 248 429

1982 . . . . 1 18 23 68 53 2 82 137 165 219 384

1983 . . . . 1 17 19 50 44 4 65 111 136 176 312

1984 . . . . 1 18 23 50 47 7 68 116 147 184 331

1985 . . . . 1 21 28 53 45 8 67 115 157 182 339

1986 . . . . 1 23 31 55 45 11 66 116 166 182 348

1987 . . . . 1 26 36 60 43 12 72 115 178 187 366

1988 . . . . 1 26 42 59 44 14 74 114 187 188 375

1989 . . . . 2 28 45 60 45 16 76 115 195 192 387

1990 . . . . 2 31 54 60 44 17 82 116 208 197 405

1991 . . . . 2 29 54 59 42 17 78 108 203 186 389

1992 . . . . 2 29 55 59 37 16 70 97 197 167 364

1993 . . . . 2 29 58 59 34 15 64 88 197 151 348

1994 . . . . 2 28 59 56 32 14 59 81 192 139 331

1995 . . . . 3 25 59 56 32 14 54 77 188 131 320

1996 . . . . 2 21 54 53 29 13 49 68 172 116 288

1997 . . . . 2 20 55 53 29 13 46 65 172 111 283

1998 . . . . 2 18 54 55 28 13 43 63 171 106 277

1999 . . . . 2 18 57 58 28 13 43 62 177 105 282

2000 . . . . 2 17 57 60 29 13 42 61 179 103 282

2001 . . . . 2 17 56 62 29 12 41 59 179 100 278

2002 . . . . 3 17 57 64 30 12 42 58 183 100 283

2003 . . . . 3 18 58 67 30 12 42 58 188 100 288

2004 . . . . 3 18 58 70 31 12 43 58 193 100 293

Projected:

2005 . . . . 3 19 57 74 31 12 42 57 196 99 295

2006 . . . . 3 20 58 78 32 12 43 57 203 100 303

2007 . . . . 3 20 58 82 33 12 44 57 208 101 310

2008 . . . . 3 20 58 85 35 12 45 57 212 102 315

2009 . . . . 3 20 57 88 36 12 45 57 215 103 318

2010 . . . . 3 20 56 90 37 12 46 57 218 103 322

2011 . . . . 3 20 55 92 38 12 47 57 221 103 325

2012 . . . . 3 20 54 94 40 12 48 56 224 104 328

2013 . . . . 3 21 54 95 42 13 49 56 227 105 332

2014 . . . . 3 21 53 96 43 13 51 56 229 107 336

2015 . . . . 3 21 53 97 45 13 53 56 232 109 341

2016 . . . . 3 21 53 98 46 13 55 56 234 111 345

2017 . . . . 3 21 53 98 48 14 57 57 237 113 350

2018 . . . . 3 21 53 98 49 14 59 57 239 116 355

2019 . . . . 3 21 53 98 51 15 61 58 241 119 360

2020 . . . . 3 21 53 98 52 15 63 59 243 122 365

2021 . . . . 3 22 53 98 53 16 65 61 244 126 370

2022 . . . . 3 22 53 97 55 16 66 63 246 129 375

2023 . . . . 3 22 54 96 56 17 68 65 248 133 381

2024 . . . . 3 22 54 95 57 18 69 68 249 137 386

2025 . . . . 3 22 55 94 58 18 71 70 250 141 391

2026 . . . . 3 22 56 93 59 19 72 72 251 145 396

2027 . . . . 3 22 56 92 59 19 74 74 252 148 400

2028 . . . . 3 22 56 92 60 20 75 77 253 152 404

2029 . . . . 3 22 57 91 60 20 75 80 253 155 408
2005 SSI Annual Report

40

Sullivan v. Zebley, which greatly expanded the criteria used for determining disability for children. The

growth in the numbers of disabled adults is a more complicated phenomenon which is still not completely understood. However, extensive research conducted under contract to SSA and the Department of

Health and Human Services suggested that this growth was the result of a combination of factors including

(1) demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term

structural changes in the economy, and (4) changes in other support programs (in particular the reduction

or elimination of general assistance programs in certain States). The recent modest changes in program

participation reflects the combined effects of recent legislation described in previous sections, along with

changes in some of the factors mentioned above.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B9.—SSI Recipients with Federally-Administered Benefits in Current-Payment Status 

as of December, 1974-2029

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 71 349 341 813 122 14 1,148 1,138 1,710 2,286 3,996

1975 . . . . 107 410 378 911 185 16 1,107 1,200 2,007 2,307 4,314

1976 . . . . 125 434 379 900 234 15 999 1,149 2,088 2,148 4,236

1977 . . . . 147 458 385 893 284 18 921 1,130 2,187 2,051 4,238

1978 . . . . 166 476 387 884 319 17 855 1,113 2,249 1,968 4,217

1979 . . . . 177 490 384 852 357 17 777 1,095 2,278 1,872 4,150

1980 . . . . 190 521 377 833 393 20 721 1,086 2,334 1,808 4,142

1981 . . . . 195 533 375 795 424 19 635 1,043 2,341 1,678 4,019

1982 . . . . 192 535 369 751 439 23 541 1,008 2,309 1,549 3,858

1983 . . . . 198 572 386 742 456 32 514 1,001 2,386 1,515 3,901

1984 . . . . 212 613 417 751 453 54 531 999 2,499 1,530 4,029

1985 . . . . 227 655 454 769 447 80 530 975 2,634 1,504 4,138

1986 . . . . 241 711 506 794 442 102 531 942 2,796 1,473 4,269

1987 . . . . 251 743 560 816 436 124 536 920 2,930 1,455 4,385

1988 . . . . 255 764 606 833 431 142 543 891 3,030 1,433 4,464

1989 . . . . 265 785 658 859 427 160 564 875 3,154 1,439 4,593

1990 . . . . 309 819 731 900 432 172 589 865 3,363 1,454 4,817

1991 . . . . 397 863 823 956 432 183 620 845 3,654 1,465 5,118

1992 . . . . 556 949 932 1,029 440 189 647 824 4,095 1,471 5,566

1993 . . . . 723 1,019 1,036 1,093 445 194 667 808 4,509 1,475 5,984

1994 . . . . 841 1,060 1,130 1,146 457 196 669 797 4,830 1,466 6,296

1995 . . . . 917 1,083 1,209 1,190 467 202 656 790 5,068 1,446 6,514

1996 . . . . 955 1,087 1,252 1,229 472 205 634 778 5,201 1,413 6,614

1997 . . . . 880 1,059 1,251 1,252 486 205 593 770 5,133 1,362 6,495

1998 . . . . 887 1,056 1,292 1,298 492 209 564 768 5,234 1,332 6,566

1999 . . . . 847 1,024 1,331 1,336 503 208 543 765 5,249 1,308 6,557

2000 . . . . 847 1,011 1,360 1,373 513 209 525 764 5,312 1,289 6,602

2001 . . . . 882 1,012 1,385 1,415 522 209 502 762 5,424 1,264 6,688

2002 . . . . 915 1,019 1,401 1,458 532 212 489 763 5,536 1,252 6,788

2003 . . . . 959 1,040 1,410 1,503 541 216 471 761 5,670 1,233 6,902

2004 . . . . 993 1,062 1,408 1,546 546 221 455 756 5,777 1,211 6,988

Projected:

2005 . . . . 1,041 1,096 1,429 1,616 555 227 449 754 5,965 1,203 7,167

2006 . . . . 1,071 1,137 1,451 1,704 566 230 452 745 6,158 1,197 7,355

2007 . . . . 1,092 1,168 1,449 1,778 582 235 459 737 6,303 1,195 7,499

2008 . . . . 1,093 1,195 1,437 1,840 602 237 469 728 6,405 1,196 7,601

2009 . . . . 1,097 1,214 1,412 1,898 621 241 478 719 6,483 1,198 7,681

2010 . . . . 1,104 1,229 1,386 1,952 638 246 488 710 6,554 1,199 7,752

2011 . . . . 1,114 1,238 1,361 1,992 662 249 503 699 6,617 1,202 7,819

2012 . . . . 1,123 1,243 1,342 2,022 691 253 521 690 6,674 1,211 7,885

2013 . . . . 1,132 1,248 1,325 2,049 718 256 541 682 6,728 1,223 7,951

2014 . . . . 1,140 1,252 1,311 2,075 746 259 562 677 6,782 1,239 8,021

2015 . . . . 1,149 1,256 1,304 2,093 770 264 585 674 6,835 1,259 8,094

2016 . . . . 1,155 1,261 1,304 2,102 794 268 606 676 6,884 1,281 8,166

2017 . . . . 1,159 1,267 1,308 2,105 816 275 625 682 6,931 1,307 8,238

2018 . . . . 1,160 1,278 1,310 2,105 839 283 645 690 6,975 1,335 8,310

2019 . . . . 1,160 1,289 1,308 2,103 866 290 670 698 7,016 1,368 8,384

2020 . . . . 1,161 1,298 1,306 2,100 893 297 694 709 7,055 1,403 8,458

2021 . . . . 1,166 1,302 1,309 2,092 915 307 713 728 7,091 1,440 8,532

2022 . . . . 1,171 1,307 1,318 2,077 934 320 728 751 7,126 1,480 8,606

2023 . . . . 1,176 1,310 1,331 2,057 954 331 745 775 7,159 1,520 8,680

2024 . . . . 1,182 1,311 1,346 2,036 974 341 762 800 7,191 1,563 8,753

2025 . . . . 1,187 1,311 1,363 2,014 994 351 780 826 7,220 1,606 8,826

2026 . . . . 1,192 1,312 1,379 1,994 1,008 361 797 851 7,247 1,648 8,895

2027 . . . . 1,197 1,315 1,392 1,979 1,018 371 812 878 7,271 1,689 8,961

2028 . . . . 1,201 1,318 1,401 1,966 1,026 381 823 906 7,293 1,729 9,023

2029 . . . . 1,205 1,322 1,406 1,958 1,030 393 831 936 7,314 1,767 9,082
41

2005 SSI Annual Report

C. FEDERAL PAYMENTS UNDER SSI

In order to estimate future amounts of Federal expenditures under SSI, the projected Federal benefit rates

shown in table IV.A2 are first modified to reflect actual payment levels, taking into account historical and

projected levels of adjustments for other actual or deemed income. Combining these actual payment levels

with the projected numbers of persons receiving Federal SSI payments yields estimates of the amounts of

Federal SSI payments. Historical amounts of such payments on a calendar year basis are shown in table

IV.C1. For purposes of this presentation, these payment amounts are computed on a cash-flow basis consistent with the concepts used to define SSI obligations for the Federal Budget. As a result, for months

after January 1978, SSI payments due on the first of the month are tabulated in the previous month, if the

first of the month falls on a weekend or Federal holiday.1

1 Total historical payments for 1974-77 agree with those presented in the Annual Statistical Supplement to the Social Security Bulletin. Total historical payments for 1978-83 are estimated.

2 Includes 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

3 Partially estimated.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Using this cash-flow concept causes these payments to differ from similar amounts shown in other Social

Security Administration publications, such as the Annual Statistical Supplement to the Social Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement are tabulated for

the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are

actually paid. In particular, since January 1 of each year is a Federal holiday, SSI payments due on

1 Public Law 95-216, the Social Security Amendments of 1977, enacted December 20, 1977, added a statutory requirement that SSI payments, which are

normally due on the first of the month, be delivered early when the normal delivery date falls on a Saturday, Sunday or Federal holiday. When the first of the

month falls on a weekend or Federal holiday, all payments due on that day are paid in the previous month. Payments presented on a cash-flow basis are tabulated according to the month in which they are actually paid.

Table IV.C1.—SSI Federal Payments in Current Dollars,1 Calendar Years 1974-2005

[In millions]

Calendar 

year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1974........... $40 $438 $452 $968 $135 $17 $825 $958 $2,050 $1,783 $3,833

1975........... 128 537 499 1,099 190 17 812 1,031 2,471 1,843 4,314

1976........... 176 605 541 1,147 241 17 762 1,023 2,727 1,785 4,512

1977........... 227 671 579 1,174 298 17 721 1,016 2,966 1,737 4,703

1978 2 ........ 302 781 655 1,312 381 18 736 1,111 3,449 1,847 5,296

1979........... 340 809 650 1,296 429 21 667 1,093 3,546 1,760 5,306

1980........... 397 931 731 1,420 544 28 642 1,230 4,051 1,872 5,923

1981........... 458 1,079 821 1,542 654 32 643 1,320 4,586 1,963 6,549

1982........... 512 1,211 883 1,590 704 38 630 1,364 4,937 1,994 6,931

1983........... 574 1,372 985 1,704 774 58 624 1,440 5,466 2,064 7,530

1984........... 659 1,576 1,128 1,835 836 102 670 1,512 6,136 2,182 8,318

1985........... 736 1,709 1,250 1,924 833 160 699 1,499 6,611 2,198 8,809

1986........... 831 1,929 1,452 2,043 848 209 731 1,479 7,312 2,210 9,522

1987........... 900 2,081 1,618 2,157 846 259 765 1,444 7,860 2,210 10,069

1988........... 955 2,228 1,818 2,303 874 304 814 1,449 8,481 2,263 10,744

1989........... 1,025 2,431 2,048 2,481 936 366 881 1,479 9,286 2,361 11,647

1990........... 1,201 2,660 2,395 2,792 969 407 987 1,532 10,423 2,519 12,943

1991........... 1,678 3,129 2,966 3,305 1,060 463 1,169 1,637 12,601 2,806 15,407

1992........... 3,154 3,900 3,577 3,790 1,124 487 1,303 1,690 16,033 2,993 19,026

1993........... 3,909 4,465 4,164 4,188 1,208 513 1,471 1,759 18,447 3,230 21,677

1994........... 4,167 4,504 4,666 4,533 1,274 538 1,566 1,814 19,682 3,380 23,063

1995........... 4,657 4,777 5,155 4,896 1,357 565 1,599 1,900 21,407 3,499 24,906

1996........... 4,947 5,004 5,614 5,298 1,427 590 1,643 1,977 22,880 3,621 26,501

1997........... 4,920 5,031 5,564 5,410 1,505 614 1,586 2,046 23,044 3,632 26,675

1998........... 4,965 5,150 5,901 5,777 1,588 635 1,542 2,136 24,017 3,678 27,695

1999........... 4,835 5,132 6,185 6,037 1,660 654 1,503 2,206 24,503 3,709 28,212

2000........... 4,789 5,121 6,404 6,293 1,717 675 1,470 2,309 24,999 3,779 28,778

2001........... 5,104 5,354 6,817 6,783 1,838 713 1,470 2,454 26,608 3,924 30,532

2002........... 5,353 5,484 7,048 7,131 1,909 738 1,433 2,520 27,663 3,953 31,616

2003........... 5,686 5,715 7,243 7,532 1,984 771 1,408 2,601 28,932 4,009 32,941

2004........... 6,036 5,954 7,384 7,943 2,054 809 1,366 2,657 30,179 4,023 34,202

2005 3 ........ 6,579 6,363 7,737 8,561 2,171 868 1,353 2,765 32,278 4,117 36,395
2005 SSI Annual Report

42

January 1 of years 1979 and later are actually paid in December of the previous year. Thus, for example,

the calendar year 2004 payment amounts shown in table IV.C1 reflect payments made in January-December, 2004, and include the payments due on January 1, 2005 (which were actually paid in December,

2004), but not the payments due on January 1, 2004 (which were actually paid in December, 2003). Second, beginning in 1991, SSI obligations as accounted for in the Federal Budget are not reduced for certain

recovered overpayments which are remitted directly to the Department of the Treasury. The payments

shown in the Annual Statistical Supplement continue to report an amount which is reduced by such overpayment recoveries, as was done for the Budget prior to 1991.

Corresponding amounts of SSI outlays on a fiscal year1 basis are presented in table IV.C2 for fiscal years

1978-2005. Fiscal years prior to 1978 are omitted from table IV.C2 since historical SSI payment amounts

on a fiscal year basis for years prior to 1978 are not readily available. As with the calendar year figures,

these fiscal year amounts are shown on a cash-flow basis. Consequently, fiscal years 1979 and later may

contain 11, 12, or 13 months of payments, depending on whether October 1 of the current and succeeding

fiscal years falls on a weekend.2 Fiscal year 1978 contains 13 months of payments.

1 Payment due on October 1 of fiscal year paid in previous fiscal year.

2 Partially estimated.

3 Includes estimated payment due on October 1 of fiscal year 2006.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

1 Fiscal years 1977 and later cover the 12-month period ending September 30. For example, fiscal year 2005 payments include payments made from October 1, 2004 through September 30, 2005.

2 Generally, for fiscal years 1979 and later, the number of months of payments included in the fiscal year is:

•11 months if October 1 of the current, but not the succeeding fiscal year falls on a weekend;

•12 months if October 1 of both the current and succeeding fiscal years falls during the week (all payments made in the fiscal year due);

•12 months if October 1 of both the current and succeeding fiscal years falls on a weekend (both payments due on October 1 paid in preceding fiscal 

year); and

•13 months if October 1 of the succeeding, but not current, fiscal year falls on a weekend.

Table IV.C2.—SSI Federal Payments in Current Dollars, Fiscal Years 1978-2005

[In millions]

Fiscal

year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1978 . . . . . . $206 $740 $668 $1,438 $312 $22 $772 $1,076 $3,386 $1,848 $5,234

1979 1 . . . . 226 711 620 1,265 331 20 656 954 3,172 1,610 4,782

1980 . . . . . . 372 877 698 1,360 506 26 629 1,184 3,840 1,813 5,653

1981 . . . . . . 442 1,039 797 1,508 625 31 647 1,307 4,442 1,954 6,396

1982 . . . . . . 499 1,181 861 1,570 693 36 640 1,356 4,840 1,996 6,836

1983 . . . . . . 596 1,416 1,024 1,783 806 56 660 1,510 5,680 2,170 7,850

1984 1 . . . . 588 1,411 1,005 1,665 760 85 613 1,391 5,514 2,004 7,517

1985 . . . . . . 713 1,662 1,215 1,895 828 145 691 1,502 6,459 2,193 8,652

1986 . . . . . . 800 1,864 1,386 1,995 840 196 723 1,487 7,080 2,209 9,290

1987 . . . . . . 880 2,030 1,565 2,119 845 242 755 1,448 7,681 2,203 9,884

1988 . . . . . . 1,009 2,356 1,898 2,425 932 316 860 1,559 8,935 2,419 11,354

1989 1 . . . . 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 1 . . . . 1,039 2,378 2,115 2,479 876 362 879 1,394 9,247 2,273 11,521

1991 . . . . . . 1,519 2,975 2,772 3,141 1,032 447 1,120 1,608 11,886 2,728 14,614

1992 . . . . . . 2,684 3,621 3,398 3,653 1,099 476 1,269 1,680 14,932 2,949 17,881

1993 . . . . . . 3,817 4,377 3,977 4,033 1,175 502 1,420 1,730 17,880 3,150 21,029

1994 . . . . . . 4,328 4,771 4,866 4,756 1,344 569 1,659 1,930 20,635 3,588 24,223

1995 1 . . . . 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 1 . . . . 4,543 4,595 5,123 4,830 1,305 540 1,510 1,808 20,936 3,317 24,254

1997 . . . . . . 4,933 5,004 5,529 5,340 1,478 606 1,602 2,027 22,890 3,629 26,519

1998 . . . . . . 4,915 5,114 5,816 5,688 1,567 630 1,548 2,110 23,729 3,658 27,387

1999 . . . . . . 4,901 5,152 6,123 5,975 1,638 648 1,506 2,180 24,438 3,685 28,123

2000 . . . . . . 5,152 5,500 6,827 6,692 1,822 718 1,599 2,453 26,710 4,052 30,763

2001 1 . . . . 4,597 4,869 6,170 6,125 1,670 652 1,352 2,236 24,083 3,588 27,671

2002 . . . . . . 5,290 5,456 6,998 7,041 1,889 731 1,444 2,500 27,405 3,944 31,349

2003 . . . . . . 5,558 5,623 7,170 7,390 1,957 759 1,417 2,572 28,456 3,989 32,445

2004 . . . . . . 5,910 5,868 7,327 7,797 2,031 796 1,380 2,638 29,729 4,018 33,748

2005 2, 3 . . 6,902 6,697 8,191 8,980 2,291 912 1,458 2,932 33,972 4,389 38,362
43

2005 SSI Annual Report

When projecting dollar amounts over longer periods of time, the changing value of the dollar due to inflation can make meaningful comparisons of such amounts difficult. For this reason, in projecting SSI expenditures for 25 years, some means of removing inflation is generally desirable. The Consumer Price Index

for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor Statistics and used to

determine annual increases in the SSI Federal benefit rate as described in table IV.A2, is an appropriate

means of standardizing projected SSI costs over time. Constant-dollar values of Federal SSI benefit payments (those adjusted by the CPI) are presented in table IV.C3 for both the historical period, calendar

years 1974-2004, and the full 25-year projection period, 2005-29. This same information is presented in

graphical form in figure IV.C1.

The future growth in the “constant dollar” estimates is attributable primarily to the underlying growth in

the U.S. population as shown in table IV.A1, since, after the spike in terminations in 1997, the SSI recipient population is projected to remain fairly constant as a percentage of the total U.S. population. However, a small part of the growth in estimated payments is due to some underlying real growth in the

assumed average SSI benefit. This results from a projected increase in the disabled child recipients and a

decrease in aged recipients as a percentage of the total SSI recipient population, along with the fact that

disabled children typically have a much larger SSI benefit than do aged recipients.1

1 Disabled children typically have higher monthly Federal payment amounts because they have, on average, much lower countable income than do adult

recipients.

 Figure IV.C1.—SSI Federal Payments, by Age Group, in Constant 2005 Dollars, Calendar Years 1975-2030

[In billions]

$0

$10

$20

$30

$40

$50

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Constant 2005 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
2005 SSI Annual Report

44

1 Includes 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.C3.—SSI Federal Payments in Constant 2005 Dollars, Calendar Years 1974-2029

[In millions]

Calendar year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . $153 $1,662 $1,716 $3,678 $514 $66 $3,133 $3,638 $7,788 $6,772 $14,560

1975 . . . . 447 1,870 1,738 3,826 662 61 2,829 3,590 8,604 6,418 15,022

1976 . . . . 579 1,994 1,782 3,778 794 55 2,509 3,370 8,982 5,879 14,861

1977 . . . . 704 2,075 1,791 3,633 921 54 2,231 3,142 9,177 5,373 14,550

1978 1 . . . 868 2,242 1,880 3,768 1,095 52 2,113 3,191 9,905 5,304 15,210

1979 . . . . 876 2,086 1,676 3,340 1,107 54 1,718 2,818 9,139 4,536 13,675

1980 . . . . 903 2,116 1,662 3,227 1,237 63 1,459 2,795 9,206 4,254 13,460

1981 . . . . 945 2,224 1,692 3,179 1,349 65 1,325 2,722 9,453 4,047 13,500

1982 . . . . 996 2,354 1,716 3,090 1,369 74 1,224 2,652 9,600 3,876 13,476

1983 . . . . 1,083 2,590 1,860 3,217 1,461 109 1,178 2,718 10,319 3,896 14,214

1984 . . . . 1,202 2,875 2,057 3,347 1,525 186 1,222 2,758 11,191 3,980 15,171

1985 . . . . 1,297 3,011 2,203 3,391 1,468 282 1,232 2,641 11,652 3,873 15,525

1986 . . . . 1,442 3,347 2,519 3,544 1,471 363 1,268 2,565 12,686 3,833 16,519

1987 . . . . 1,507 3,484 2,710 3,612 1,417 434 1,282 2,418 13,163 3,700 16,863

1988 . . . . 1,539 3,591 2,930 3,711 1,409 490 1,312 2,335 13,669 3,647 17,316

1989 . . . . 1,576 3,735 3,146 3,812 1,439 562 1,354 2,273 14,270 3,627 17,897

1990 . . . . 1,754 3,885 3,498 4,078 1,414 594 1,442 2,237 15,223 3,679 18,903

1991 . . . . 2,354 4,389 4,161 4,636 1,488 649 1,640 2,297 17,677 3,937 21,614

1992 . . . . 4,299 5,317 4,877 5,167 1,532 664 1,776 2,304 21,857 4,080 25,937

1993 . . . . 5,183 5,919 5,521 5,553 1,602 680 1,950 2,332 24,458 4,282 28,740

1994 . . . . 5,392 5,828 6,037 5,866 1,648 697 2,027 2,347 25,468 4,374 29,842

1995 . . . . 5,857 6,007 6,484 6,157 1,706 711 2,011 2,390 26,923 4,401 31,324

1996 . . . . 6,048 6,118 6,864 6,477 1,745 721 2,009 2,417 27,973 4,427 32,399

1997 . . . . 5,882 6,014 6,652 6,467 1,799 734 1,896 2,446 27,547 4,341 31,888

1998 . . . . 5,857 6,076 6,962 6,816 1,873 750 1,819 2,519 28,333 4,339 32,672

1999 . . . . 5,582 5,924 7,139 6,970 1,917 754 1,735 2,547 28,286 4,282 32,568

2000 . . . . 5,342 5,712 7,144 7,020 1,915 753 1,640 2,576 27,885 4,215 32,101

2001 . . . . 5,542 5,814 7,402 7,365 1,995 775 1,597 2,665 28,893 4,261 33,154

2002 . . . . 5,734 5,874 7,549 7,638 2,044 790 1,535 2,699 29,629 4,234 33,862

2003 . . . . 5,958 5,988 7,590 7,893 2,079 808 1,475 2,725 30,316 4,200 34,516

2004 . . . . 6,164 6,080 7,540 8,111 2,097 826 1,395 2,713 30,817 4,108 34,925

Projected:

2005 . . . . 6,579 6,363 7,737 8,561 2,171 868 1,353 2,765 32,278 4,117 36,395

2006 . . . . 6,814 6,600 7,898 9,005 2,207 883 1,359 2,753 33,408 4,112 37,520

2007 . . . . 6,902 6,766 7,876 9,351 2,263 899 1,370 2,724 34,058 4,095 38,152

2008 . . . . 6,929 6,918 7,818 9,665 2,343 911 1,399 2,698 34,583 4,097 38,680

2009 . . . . 6,964 7,035 7,701 9,964 2,417 927 1,429 2,677 35,008 4,106 39,113

2010 . . . . 7,036 7,138 7,585 10,252 2,492 947 1,462 2,656 35,451 4,117 39,568

2011 . . . . 7,124 7,222 7,486 10,484 2,601 963 1,505 2,620 35,881 4,125 40,005

2012 . . . . 7,214 7,274 7,413 10,667 2,725 982 1,557 2,590 36,276 4,146 40,422

2013 . . . . 7,286 7,306 7,347 10,824 2,838 998 1,614 2,563 36,600 4,177 40,777

2014 . . . . 7,363 7,335 7,294 10,964 2,952 1,012 1,677 2,546 36,920 4,223 41,144

2015 . . . . 7,430 7,361 7,276 11,053 3,054 1,032 1,742 2,538 37,207 4,280 41,487

2016 . . . . 7,488 7,399 7,297 11,100 3,156 1,053 1,803 2,547 37,492 4,350 41,843

2017 . . . . 7,535 7,457 7,341 11,125 3,256 1,085 1,862 2,572 37,801 4,434 42,235

2018 . . . . 7,556 7,532 7,369 11,126 3,359 1,120 1,924 2,601 38,062 4,525 42,587

2019 . . . . 7,572 7,612 7,379 11,126 3,476 1,154 1,996 2,633 38,319 4,629 42,948

2020 . . . . 7,595 7,681 7,391 11,123 3,594 1,188 2,068 2,678 38,572 4,746 43,318

2021 . . . . 7,646 7,714 7,425 11,085 3,693 1,233 2,124 2,746 38,797 4,870 43,667

2022 . . . . 7,692 7,752 7,492 11,011 3,783 1,286 2,168 2,833 39,017 5,001 44,018

2023 . . . . 7,739 7,784 7,589 10,923 3,878 1,336 2,218 2,921 39,250 5,139 44,388

2024 . . . . 7,795 7,810 7,702 10,831 3,979 1,385 2,271 3,015 39,502 5,286 44,787

2025 . . . . 7,840 7,817 7,805 10,721 4,066 1,430 2,324 3,110 39,678 5,434 45,112

2026 . . . . 7,858 7,818 7,892 10,612 4,126 1,471 2,377 3,206 39,777 5,583 45,361

2027 . . . . 7,844 7,810 7,947 10,506 4,160 1,511 2,424 3,306 39,778 5,730 45,507

2028 . . . . 7,837 7,816 7,988 10,429 4,188 1,554 2,462 3,414 39,811 5,876 45,687

2029 . . . . 7,823 7,821 8,000 10,370 4,200 1,599 2,487 3,529 39,814 6,015 45,829
45

2005 SSI Annual Report

Although detailed projections of SSI State supplementary payments are not prepared, historical information on the amounts of such supplements is presented in tables IV.C4 and IV.C5. These amounts are consistent with those presented in the Annual Statistical Supplement to the Social Security Bulletin and are

shown only for the two broad recipient categories.

Note: Totals do not necessarily equal the sums of rounded components.

1 Data provided by individual States are partially estimated. In addition, a few States do not provide updated payment data in particular years. In those cases, data for the previous year are used.

2 Includes amounts not distributed by recipient category.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-2004

[In millions]

Calendar year Aged

Blind or

disabled Total

1974 ................................................ $631 $632 $1,264

1975 ................................................ 674 729 1,403

1976 ................................................ 635 753 1,388

1977 ................................................ 627 804 1,431

1978 ................................................ 636 855 1,491

1979 ................................................ 661 928 1,590

1980 ................................................ 757 1,091 1,848

1981 ................................................ 731 1,108 1,839

1982 ................................................ 694 1,104 1,798

1983 ................................................ 645 1,066 1,711

1984 ................................................ 645 1,148 1,792

1985 ................................................ 694 1,278 1,973

1986 ................................................ 759 1,484 2,243

1987 ................................................ 849 1,714 2,563

1988 ................................................ 873 1,798 2,671

1989 ................................................ 954 2,001 2,955

1990 ................................................ 1,038 2,201 3,239

1991 ................................................ 999 2,232 3,231

1992 ................................................ 1,023 2,412 3,435

1993 ................................................ 934 2,336 3,270

1994 ................................................ 876 2,240 3,116

1995 ................................................ 864 2,253 3,118

1996 ................................................ 833 2,155 2,988

1997 ................................................ 824 2,090 2,913

1998 ................................................ 838 2,165 3,003

1999 ................................................ 921 2,380 3,301

2000 ................................................ 943 2,439 3,381

2001 ................................................ 956 2,505 3,460

2002 ................................................ 1,051 2,768 3,820

2003 ................................................ 1,098 2,906 4,005

2004 ................................................ 1,133 3,045 4,178

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2004

[In millions]

Calendar year Aged

Blind or

disabled Total 2

1974 ................................................ $89 $49 $149

1975 ................................................ 88 74 162

1976 ................................................ 88 77 166

1977 ................................................ 85 87 172

1978 ................................................ 91 88 180

1979 ................................................ 105 100 207

1980 ................................................ 117 106 226

1981 ................................................ 120 113 237

1982 ................................................ 125 119 276

1983 ................................................ 135 132 270

1984 ................................................ 141 152 299

1985 ................................................ 138 165 311

1986 ................................................ 147 185 340

1987 ................................................ 146 205 359

1988 ................................................ 150 224 381

1989 ................................................ 160 251 419

1990 ................................................ 177 281 466

1991 ................................................ 200 310 529

1992 ................................................ 216 323 550

1993 ................................................ 219 341 566

1994 ................................................ 225 354 585

1995 ................................................ 228 356 590

1996 ................................................ 225 307 539

1997 ................................................ 228 303 681

1998 ................................................ 259 429 808

1999 ................................................ 271 461 853

2000 ................................................ 283 488 893

2001 ................................................ 295 494 895

2002 ................................................ 283 507 911

2003 ................................................ 291 546 912

2004 ................................................ 266 521 895
2005 SSI Annual Report

46

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT

For SSI, an appropriate relative measure of program costs is produced by comparing estimated annual SSI

costs to the Gross Domestic Product (GDP)1. In addition to providing an inflation-independent measure of

the cost of the SSI program, this provides a useful perspective on the proportion of the total output of the

U.S. economy needed to provide Federal SSI benefits. As is shown in table IV.D1 and figure IV.D1, the

total cost of the SSI program after 2005 is projected to decline relative to GDP.

Table IV.D1 and figure IV.D1 present a concise summary of Federal expenditures under the SSI program.

Following the initial higher costs of the program, total Federal SSI payments during the 1980s were a

fairly constant percentage of GDP (0.21 percent). During the early 1990s, SSI experienced rather rapid

growth (to 0.34 percent of GDP in 1996) due to a combination of factors discussed earlier in section IV.

Legislation enacted in 19962 resulted in a drop in the cost of SSI as a percentage of GDP in 1997. As mentioned earlier, the estimates prepared for this report project total participation in the SSI program to remain

a stable proportion of the U.S. population. Federal SSI expenditures, after adjusting for growth in prices,

are projected to grow slightly faster than the population due to the estimated small amount of real growth

in the SSI average benefit, as discussed previously in section IV.C. Since the real growth projected for

GDP under the 2005 Trustees Report intermediate assumptions is greater than the combined effects of

increases in SSI participation and the estimated real increase in the SSI average benefit, Federal SSI payments are projected to decline as a percentage of GDP over the next 25 years, reaching 0.24 percent of

GDP by 2029.

1 The total value of goods and services produced in the United States.

2 Public Law 104-121 and Public Law 104-193.

 Figure IV.D1.—SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1975-2030

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
47

2005 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components. Historical GDP amounts subject to revision.

Table IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2029 

Calendar 

year

GDP

(In billions)

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . $1,500 0.003 0.029 0.030 0.065 0.009 0.001 0.055 0.064 0.137 0.119 0.256

1975 . . . . 1,638 .008 .033 .030 .067 .012 .001 .050 .063 .151 .112 .263

1976 . . . . 1,825 .010 .033 .030 .063 .013 .001 .042 .056 .149 .098 .247

1977 . . . . 2,031 .011 .033 .029 .058 .015 .001 .036 .050 .146 .086 .232

1978 . . . . 2,295 .013 .034 .029 .057 .017 .001 .032 .048 .150 .080 .231

1979 . . . . 2,563 .013 .032 .025 .051 .017 .001 .026 .043 .138 .069 .207

1980 . . . . 2,790 .014 .033 .026 .051 .020 .001 .023 .044 .145 .067 .212

1981 . . . . 3,128 .015 .034 .026 .049 .021 .001 .021 .042 .147 .063 .209

1982 . . . . 3,255 .016 .037 .027 .049 .022 .001 .019 .042 .152 .061 .213

1983 . . . . 3,537 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 . . . . 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .211

1985 . . . . 4,220 .017 .040 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 . . . . 4,463 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .213

1987 . . . . 4,739 .019 .044 .034 .046 .018 .005 .016 .030 .166 .047 .212

1988 . . . . 5,104 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .211

1989 . . . . 5,484 .019 .044 .037 .045 .017 .007 .016 .027 .169 .043 .212

1990 . . . . 5,803 .021 .046 .041 .048 .017 .007 .017 .026 .180 .043 .223

1991 . . . . 5,996 .028 .052 .049 .055 .018 .008 .019 .027 .210 .047 .257

1992 . . . . 6,338 .050 .062 .056 .060 .018 .008 .021 .027 .253 .047 .300

1993 . . . . 6,657 .059 .067 .063 .063 .018 .008 .022 .026 .277 .049 .326

1994 . . . . 7,072 .059 .064 .066 .064 .018 .008 .022 .026 .278 .048 .326

1995 . . . . 7,398 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 . . . . 7,817 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 . . . . 8,304 .059 .061 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 . . . . 8,747 .057 .059 .067 .066 .018 .007 .018 .024 .275 .042 .317

1999 . . . . 9,268 .052 .055 .067 .065 .018 .007 .016 .024 .264 .040 .304

2000 . . . . 9,817 .049 .052 .065 .064 .017 .007 .015 .024 .255 .038 .293

2001 . . . . 10,128 .050 .053 .067 .067 .018 .007 .015 .024 .263 .039 .301

2002 . . . . 10,487 .051 .052 .067 .068 .018 .007 .014 .024 .264 .038 .301

2003 . . . . 11,004 .052 .052 .066 .068 .018 .007 .013 .024 .263 .036 .299

2004 . . . . 11,736 .051 .051 .063 .068 .017 .007 .012 .023 .257 .034 .291

Projected:

2005 . . . . 12,359 .053 .051 .063 .069 .018 .007 .011 .022 .261 .033 .294

2006 . . . . 13,020 .053 .052 .062 .071 .017 .007 .011 .022 .262 .032 .294

2007 . . . . 13,710 .053 .052 .060 .072 .017 .007 .010 .021 .260 .031 .292

2008 . . . . 14,424 .052 .052 .058 .072 .018 .007 .010 .020 .258 .031 .289

2009 . . . . 15,160 .051 .051 .056 .073 .018 .007 .010 .020 .256 .030 .286

2010 . . . . 15,926 .050 .051 .054 .073 .018 .007 .010 .019 .253 .029 .283

2011 . . . . 16,721 .050 .051 .052 .073 .018 .007 .011 .018 .251 .029 .280

2012 . . . . 17,534 .050 .050 .051 .073 .019 .007 .011 .018 .249 .028 .277

2013 . . . . 18,369 .049 .049 .049 .073 .019 .007 .011 .017 .247 .028 .275

2014 . . . . 19,232 .049 .049 .048 .073 .020 .007 .011 .017 .244 .028 .272

2015 . . . . 20,127 .048 .048 .047 .072 .020 .007 .011 .016 .242 .028 .269

2016 . . . . 21,055 .048 .047 .047 .071 .020 .007 .012 .016 .239 .028 .267

2017 . . . . 22,022 .047 .047 .046 .070 .020 .007 .012 .016 .237 .028 .265

2018 . . . . 23,025 .047 .046 .045 .069 .021 .007 .012 .016 .235 .028 .263

2019 . . . . 24,072 .046 .046 .045 .067 .021 .007 .012 .016 .232 .028 .261

2020 . . . . 25,150 .045 .046 .044 .066 .021 .007 .012 .016 .230 .028 .259

2021 . . . . 26,276 .045 .045 .044 .065 .022 .007 .012 .016 .228 .029 .256

2022 . . . . 27,440 .044 .045 .043 .064 .022 .007 .013 .016 .226 .029 .255

2023 . . . . 28,652 .044 .044 .043 .062 .022 .008 .013 .017 .223 .029 .253

2024 . . . . 29,904 .044 .044 .043 .061 .022 .008 .013 .017 .221 .030 .251

2025 . . . . 31,204 .043 .043 .043 .059 .022 .008 .013 .017 .219 .030 .249

2026 . . . . 32,558 .043 .043 .043 .058 .022 .008 .013 .017 .216 .030 .247

2027 . . . . 33,985 .042 .042 .043 .056 .022 .008 .013 .018 .213 .031 .244

2028 . . . . 35,479 .041 .041 .042 .055 .022 .008 .013 .018 .210 .031 .241

2029 . . . . 37,030 .041 .041 .042 .054 .022 .008 .013 .018 .207 .031 .238
2005 SSI Annual Report

48

E. THE SSI PROGRAM’S SHARE OF SSA’S ADMINISTRATIVE COSTS 

AND BENEFICIARY SERVICES COSTS

The SSI program is administered by the Social Security Administration. Section 201(g)(1) of the Social

Security Act provides that administrative expenses for the SSI program, including Federal administration

of State supplementation payments, may be financed from the OASDI Trust Funds. The trust funds are

reimbursed from the General Fund of the Treasury for any such SSI administrative expenditures. These

reimbursements include adjustments for any interest losses the trust funds may have incurred as a result of

such expenditures. The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving SSA the responsibility for the SSI

program because of its existing field office network and its administrative and automated data processing

facilities. Because of the integration of the administration of the SSI and OASDI programs, it was desirable to fund them from a single source, with reimbursement to the trust funds based on a Government

Accountability Office-approved method of cost analysis of the respective expenses of the SSI and OASDI

programs, and a final settlement by the end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected administrative costs of the SSI program.

1 This activity funds the reimbursement to the OASI and DI Trust Funds from the General Fund of the

Treasury for the SSI program’s share of SSA’s administrative expenses, as well as reimbursements from participating States for SSA’s administration of the SSI State Supplementation Program.

2 Includes payments to State Vocational Rehabilitation (VR) agencies and Employment Networks for VR

services and payments under the Ticket to Work program. Payments for referral and monitoring services for

Drug Addicts and Alcoholics are also included through December 1996. These payments were terminated

effective January 1997. The increase in the estimate for fiscal year 2005 reflects an assumption that State

budgets will continue to improve, enabling the States to restore some lost vocational rehabilitation service

capacity and serve a greater number of SSI beneficiaries.

3 Reflects a one-time payment to State VR agencies for prior year expenses.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2005

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1 Beneficiary

services 2

1978.................................................................. $539 $31.6

1979.................................................................. 611 57.0

1980.................................................................. 668 33.1

1981.................................................................. 717 37.3

1982.................................................................. 780 12.0

1983.................................................................. 846 8.0

1984.................................................................. 864 3 84.0

1985.................................................................. 956 3.0

1986.................................................................. 1,023 7.2

1987.................................................................. 977 9.5

1988.................................................................. 976 12.9

1989.................................................................. 1,052 20.0

1990.................................................................. 1,075 28.3

1991.................................................................. 1,230 33.1

1992.................................................................. 1,426 36.0

1993.................................................................. 1,468 32.3

1994.................................................................. 1,780 33.8

1995.................................................................. 1,978 48.2

1996.................................................................. 1,953 71.8

1997.................................................................. 2,055 77.3

1998.................................................................. 2,304 46.0

1999.................................................................. 2,493 52.0

2000.................................................................. 2,321 53.7

2001.................................................................. 2,397 43.9

2002.................................................................. 2,522 54.0

2003.................................................................. 2,656 37.0

2004.................................................................. 2,806 38.6

2005 (estimated)............................................... 2,929 77.0
49

2005 SSI Annual Report

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of

correcting lenses, or with tunnel vision of 20 degrees or less. An individual

transferred from a State Aid to the Blind (AB) program to SSI is eligible if he/

she received such State aid in December 1973 and continues to meet the October 1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment expected

to result in death or that has lasted or can be expected to last for a continuous

period of at least 12 months. For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred

from a State Aid to the Permanently and Totally Disabled (APTD) program to

SSI is also eligible if he/she received such State aid in December 1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls in

December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973 must

meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at the

substantial gainful activity level may continue to receive a special benefit under

section 1619 and retain eligibility for Medicaid under title XIX of the Social

Security Act. This special benefit status may continue as long as the recipient

has the disabling impairment and meets all nondisability SSI eligibility criteria.

States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December

31, 1983. Beginning in January 1984, under a 1-year demonstration project, this

provision was continued for persons already eligible for either regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments are made

permanent. The provisions were amended effective July 1, 1987, with significant modifications to simplify administration and to allow free movement

between regular SSI disability payments and either the special cash benefit or

Medicaid eligibility under section 1619. The distinction between a disabled person eligible for regular SSI payments and one eligible for 1619(a) is that the latter has several months with gross earnings above the SGA level. Previously,

section 1619(a) status required completion of a trial work period and the determination that the work was SGA.
2005 SSI Annual Report

50

Act

1996

Public Law 104-193, 

enacted August 22

For individuals under age 18, the “comparable severity” standard is eliminated

and replaced with a requirement that a child be considered disabled if he/she has

a medically determinable impairment that results in “marked and severe functional limitations,” and meets the existing statutory duration requirement. The

law also eliminates references to “maladaptive behaviors” from the personal/

behavioral domain of the mental disorders in the Listing of Impairments for

children, and discontinues the use of individualized functional assessments for

children.

SSI eligibility is prohibited for an individual in any month during which such an

individual is a fugitive felon, fleeing prosecution, or violating State or Federal

conditions of probation or parole. In addition, SSI eligibility is prohibited for 10

years for those convicted of fraudulently claiming residence to obtain benefits

simultaneously in two or more States. 1

2. Other Eligibility Provisions

a. Citizenship and U.S. Residency

1972

Public Law 92-603, 

enacted October 30

The individual must reside within one of the 50 States or the District of Columbia and be a citizen or an alien lawfully admitted for permanent residence or

permanently residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such

a month.

1976

Public Law 94-241, 

enacted March 24

Eligibility for SSI is extended to residents of the Northern Mariana Islands,

effective January 9, 1978.

1980

Public Law 96-265, 

enacted June 9

The income and resources of the immigration sponsors of aliens applying for

SSI are considered in determining eligibility for and the amount of payment.

After allowances for the needs of the sponsor and his/her family, the remainder

is deemed available for the support of the alien applicant for a 3-year period

after admission to the United States for permanent residence. This provision

does not apply to those who become blind or disabled after admission, to refugees, or to persons granted political asylum. (See section 2.g. for subsequent

changes to sponsor-to-alien deeming provisions.)

1989

Public Law 101-239, 

enacted December 19

SSI eligibility is continued for a disabled or blind child who was receiving SSI

benefits while living in the United States and is now living with a parent who is

a member of the U.S. Armed Forces assigned to permanent duty ashore outside

the United States, but not where the parent is stationed in Puerto Rico or the territories and possessions of the United States.

1993

Public Law 103-66, 

enacted August 10

Above provision made applicable where the parent is a member of the U.S.

Armed Forces and stationed in Puerto Rico or the territories and possessions of

the United States.

1This last provision was repealed in 1999 by Public Law 106-169 and replaced with a provision providing for nonpayment of benefits for up to 24 months for knowingly making false or misleading statements regarding material

facts.
51

2005 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless

they are in a “qualified alien” category and meet one of certain exceptions such

as lawful permanent residents who earn or can be credited with 40 qualifying

quarters of earnings, certain refugee type categories eligible for up to 5 years of

time limited eligibility, or active duty U.S. military or veterans and their spouses

and children. Extends eligibility for aliens receiving SSI as of August 22, 1996

(the enactment date of the law) for 1 year after the enactment date for those

aliens found ineligible under the new standards.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens (and their children) who have been battered or subjected to extreme cruelty by a spouse or parent or a member of the spouse’s or parent’s family living

in the same household.

1997

Public Law 105-18, 

enacted June 12

Extends eligibility for aliens receiving SSI as of August 22, 1996, until September 30, 1997, for those found ineligible under the new alien standards of Public

Law 104-193.

Public Law 105-33, 

enacted August 5

Further amends Public Law 104-193 to add Cuban and Haitian entrants, and the

child of a parent who has been battered or subjected to extreme cruelty, to the

list of qualified aliens. Provides that Cuban and Haitian entrants and Amerasian

immigrants qualify for time limited eligibility, and increases the time limit from

5 to 7 years for all time-limited categories. Additional exceptions are added for

qualified aliens: (1) lawfully residing in the United States and receiving SSI

benefits on August 22, 1996; and (2) lawfully residing in the United States on

August 22, 1996 and meeting the definition of blind or disabled in the Social

Security Act.

Certain noncitizen American Indians are excepted from the alien nonpayment

provisions of Public Law 104-193.

Extends eligibility for “nonqualified aliens” receiving SSI as of August 22,

1996, until September 30, 1998.

1998

Public Law 105-306, 

enacted October 28

Permanently extends eligibility of all remaining “nonqualified aliens” who

were receiving SSI benefits when Public Law 104-193 was enacted on August

22, 1996.

2000

Public Law 106-386, 

enacted October 28

Noncitizens, regardless of their immigration status, may be eligible for SSI to

the same extent as refugees, if they are determined to be victims of “severe

forms of trafficking in persons.”

2004

Public Law 108-203, 

enacted March 2

Extends SSI eligibility to blind or disabled children who are U.S. citizens living

with a parent assigned to permanent U.S. military duty outside of the United

States, and who were not receiving SSI benefits while in the United States. Previously, only blind or disabled children who received an SSI benefit for the

month before the parent reported for permanent duty abroad were eligible.

Effective April 2004 for applications filed after enactment. 
2005 SSI Annual Report

52

Act b. Other Benefits

1980

Public Law 96-272, 

enacted June 17

SSI applicants and recipients are not required as a condition of eligibility to

elect to receive Veterans Administration pensions under the Veterans and Survivors’ Pension Improvement Act of 1978 if the State of residence lacks a medically-needy program under title XIX.

c. Drug Addiction and Alcoholism (DA&A)

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and

terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies

and Federal, State, or local government agencies in representative payee selection. These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$50 (adjusted annually after 1995 by the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State is

required.

1996

Public Law 104-121, 

enacted March 29

An individual is not considered disabled if DA&A is a contributing factor material to a finding of disability.

Applies DA&A representative payee requirements enacted under Public Law

103-296 to disabled SSI recipients who have a DA&A condition and are incapable of managing their benefits. In addition, these recipients shall be referred to

the appropriate State agency administering the State plan for substance abuse

treatment.
53

2005 SSI Annual Report

Act d. Institutionalization

1972

Public Law 92-603, 

enacted October 30

An individual who is an inmate of a public institution is ineligible for SSI payments unless the institution is a facility approved for Medicaid payments and is

receiving such payments on behalf of the person. Under regulations, the Medicaid payment must represent more than 50 percent of the cost of services provided by the facility to the individual.

1976

Public Law 94-566, 

enacted October 20

An inmate of a publicly operated community residence serving no more than 16

persons may, if otherwise eligible, receive SSI.

1983

Public Law 98-21, 

enacted April 20

Payments may be made to persons who are residents of public emergency shelters for the homeless for a period of up to 3 months in any 12-month period.

1986

Public Law 99-643, 

enacted November 10

Effective July 1, 1987, disabled or blind recipients who were receiving special

SSI payments or had special SSI recipient status under section 1619 in the

month preceding the first full month of institutionalization, may receive payments based on the full Federal benefit rate for the initial 2 full months of institutionalization, if they reside in certain public medical, psychiatric or Medicaid

facilities, or in private Medicaid facilities.

1987

Public Law 100-203, 

enacted December 22

Effective January 1, 1988, payments may be made to persons who are residents

of public emergency shelters for the homeless, for up to 6 months in a 9-month

period.

Effective July 1, 1988, continued payment of SSI benefits for up to 3 months is

permitted, at the rate that was applicable in the month prior to the first full

month of institutionalization, for individuals whose expected institutional stay

on admission is not likely to exceed 3 months, as certified by a physician, and

for whom the receipt of benefits is necessary to maintain living arrangements to

which they may return.

1996

Public Law 104-193, 

enacted August 22

Effective December 1996, institutionalized children under age 18 whose private

health insurance is making payments to the institution may receive no more than

$30 per month in Federal SSI.

e. Vocational Rehabilitation and Treatment

1972

Public Law 92-603, 

enacted October 30

Blind or disabled individuals receiving Federal SSI benefits who are under age

65, must be referred to the State agency providing services under the Vocational

Rehabilitation Act and must accept the services offered. States are reimbursed

for the cost of services.

1976

Public Law 94-566, 

enacted October 20

Blind or disabled children under age 16 must be referred to the State agency

administering crippled children’s services or to another agency designated by

the State. States are reimbursed for the cost of services.

Of funds provided for these services, at least 90 percent must be used for children under age 6 or for those who have never attended public schools.
2005 SSI Annual Report

54

Act

1980

Public Law 96-265, 

enacted June 9

Disabled SSI recipients who medically recover while enrolled in approved

vocational rehabilitation programs of State VR agencies, may continue to

receive benefits during their participation in such programs if the Commissioner

of Social Security determines that continuation in the program will increase the

probability that they leave the rolls permanently.

1981

Public Law 97-35, 

enacted August 13

Funding no longer provided under title XVI for medical, social, developmental

and rehabilitative services to disabled or blind children.

Reimbursement for the cost of rehabilitation services will be made only if the

services result in the recipient’s return to work for a continuous period of

9 months. The work must be at the substantial gainful activity earnings level.

1984

Public Law 98-460, 

enacted October 9

Authorizes the reimbursement of States for the cost of VR services provided to

individuals who (1) continue to receive benefits after medical recovery because

they are participating in a State VR program or (2) refuse, without good cause,

to continue in or cooperate with the VR program in which they had been participating.

1987

Public Law 100-203, 

enacted December 22

Extends the provision for continuation of payments to disabled SSI recipients

who have medically recovered while enrolled in an approved vocational rehabilitation program to include blind SSI recipients.

1990

Public Law 101-508, 

enacted November 5

Reimbursement authorized for the cost of vocational rehabilitation services provided in months in which the individual was not receiving Federal SSI payments, if:

 • SSI recipient status for Medicaid eligibility purposes was retained under

work incentive provisions, or 

 • Benefits were in suspense 1 status (for a reason other than cessation of disability or blindness), or

 • Federally-administered State supplementation was received.

Extends benefit continuation provision to disabled SSI recipients who medically

recover while participating in a non-State VR program.

1999

Public Law 106-170, 

enacted December 17

Establishes a Ticket to Work and Self-Sufficiency program which will provide

SSI (and OASDI) disability beneficiaries with a ticket that can be used to obtain

vocational rehabilitation services, employment services, or other support services, from an employment network (EN) of their choice.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
55

2005 SSI Annual Report

Act

An EN chooses one of the two EN payment options at the time it submits an

application to SSA to become an EN. The chosen payment system will apply to

all beneficiaries served. An EN can elect to receive payment under the:

 • Outcome payment system, under which it can receive payment for up to 60

outcome payment months; or

 • Outcome-milestone payment system, under which it can receive payment

for up to four milestones (established by regulation) in addition to outcome

payments. These milestones must occur before the EN enters the first

month for which it is eligible for an outcome payment. Four milestone payments plus 60 months of reduced outcome payments equal 85 percent of

the total that would be available if the EN chose the outcome payment system.

The four milestones are based on gross earnings exceeding the substantial gainful activity level for specified months. An outcome payment month is any

month in which SSA does not pay any Federal disability cash benefits to a beneficiary because of work or earnings.

Also eliminates the requirement that blind or disabled SSI recipients age 16

through 64 be referred to the State VR agency and accept the services offered.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994

Public Law 103-296, 

enacted August 15

During each of fiscal years 1996, 1997, and 1998, requires SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In

addition, during the same period, requires SSA to redetermine the SSI eligibility

of at least one-third of all child SSI recipients who reach age 18 after April 1995

during the 1-year period following attainment of age 18. Redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.

1996

Public Law 104-193, 

enacted August 22

Repeals the requirement that SSA redetermine the eligibility of at least one-third

of all child SSI recipients who reach age 18 after April 1995 during the 1-year

period following attainment of age 18.

Requires a CDR:

 • At least once every 3 years for SSI recipients under age 18 who are eligible

by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is

a contributing factor material to the determination of their disability.

Requires eligibility redetermination under the adult disability standard for all

child SSI recipients eligible for the month before the month in which they attain

age 18.

Requires redetermination of eligibility for children considered disabled based

on an individual functional assessment and/or consideration of maladaptive

behavior.

Requires the representative payee of a child SSI recipient whose continuing eligibility is being reviewed to present evidence that the recipient is receiving

treatment which is considered medically necessary and available for the condition which was the basis for providing SSI benefits.
2005 SSI Annual Report

56

Act

1997

Public Law 105-33, 

enacted August 5

Modifies provision of Public Law 104-193 to extend from 12 to 18 months the

period for redetermining the disability of children under age 18 under the new

childhood disability standard.

Modifies provision of Public Law 104-193 to permit SSA to schedule a CDR

for a disabled child for whom low birth weight is a contributing factor material

to the determination of disability, at a date after the child’s first birthday if the

Commissioner determines the impairment is not expected to improve within 12

months of the child’s birth.

Modifies provision of Public Law 104-193 to provide SSA the authority to

make redeterminations of disabled childhood recipients who attain age 18, more

than 1 year after the date such recipient attains age 18.

1999

Public Law 106-170, 

enacted December 17

Prohibits the initiation of a CDR during the period that a recipient is “using a

ticket” under the Ticket to Work program.

g. Deeming of Income and Resources

1972

Public Law 92-603, 

enacted October 30

Deeming occurs when the income and resources of certain family members living in the same household with the SSI recipient are considered in determining

the amount of the SSI payment. These family members are the ineligible spouse

of an adult recipient and the ineligible parents of a child recipient under age 21.

After deduction of personal allocations for the spouse (or parents) and for ineligible children in the home, and after application of income exclusions, any

remaining income of the spouse (or parents) is added to the income of the eligible person.

1980

Public Law 96-265, 

enacted June 9

Children aged 18 or older are not subject to parental deeming.

Sponsor’s income and resources deemed to an alien for 3 years.

1989

Public Law 101-239, 

enacted December 19

Disabled children receiving home care services under State Medicaid programs,

who are ineligible for SSI because of deeming of parental income, and who

received SSI benefits limited to $30 while in a medical treatment facility, may

receive the $30 monthly allowance that would be payable if the recipient were

institutionalized.

1993

Public Law 103-152, 

enacted November 24

Sponsor-to-alien deeming period extended from 3 years to 5 years, effective

January 1, 1994, through September 30, 1996.

Considers an ineligible spouse or parent who is absent from the household due

to active military service to be a member of the household for deeming purposes.

1996

Public Law 104-193, 

enacted August 22

Deeming of income and resources from an immigration sponsor to a noncitizen

continues until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor

signs a new legally enforceable affidavit of support.
57

2005 SSI Annual Report

Act

1996

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add two exceptions to the sponsor-to-alien

deeming:

 • Provides that if the noncitizen is indigent and would be unable to obtain

food and shelter without SSI benefits even after receiving support from the

sponsor, then only the amount of income and resources actually provided

by the sponsor will be counted for a 12-month period after a determination

of indigence; and

 • Provides that in certain cases, deeming would not apply for a 12-month

period (with some options for extension) if the noncitizen (or his/her children) has been battered, or subjected to extreme cruelty by family members.

1997

Public Law 105-33, 

enacted August 5

Amends Public Law 104-208 to add an additional exception to sponsor-to-alien

deeming when the parent of a noncitizen has been battered or subjected to

extreme cruelty by family members.

3. Federal Benefit Payments

a. Windfall Offset

1980

Public Law 96-265, 

enacted June 9

Offset (by reduction of retroactive Social Security benefits) to prevent persons

whose initial OASDI payment is retroactive from receiving more in total benefits than if they were paid the benefits when regularly due.

1984

Public Law 98-617, 

enacted November 8

Offset provision expanded to allow for reduction of retroactive SSI benefits and

to apply in cases of OASDI benefit reinstatement.

b. Proration of Benefit

1982

Public Law 97-248, 

enacted September 3

Benefit for first month of eligibility to be prorated by the number of days in the

month for which an application has been filed and there is eligibility.

1996

Public Law 104-193, 

enacted August 22

Changes the effective date of an SSI application to the first day of the month

following the date on which the application was filed or on which the individual

first becomes eligible, whichever is later. This, in effect, eliminates prorated

payments in initial claims.

c. Retrospective Monthly Accounting

1981

Public Law 97-35, 

enacted August 13

Changes the method of computing the SSI benefit to one under which the benefit amount is computed on a monthly basis and is based on income and other

characteristics in the previous (or second previous) month.

1984

Public Law 98-369, 

enacted July 18

Changes the method of computing the SSI benefit to persons receiving title II

payments. The effect of the increased title II income at the time of the cost-ofliving increase is not delayed as it otherwise would be.
2005 SSI Annual Report

58

Act

1987

Public Law 100-203, 

enacted December 22

Provides an exception to retrospective monthly accounting so that amounts

received under Aid to Families With Dependent Children (AFDC), foster care,

refugee cash assistance, Cuban-Haitian entrant assistance, or general and child

welfare assistance provided by the Bureau of Indian Affairs are counted only in

the month received.

1993

Public Law 103-66, 

enacted August 10

Changes the method of computing the SSI benefit to persons receiving the value

of the one-third reduction. The effect of the increased value at the time of the

cost-of-living increase is not delayed as it otherwise would be. Effective January

1995.

2004

Public Law 108-203, 

enacted March 2

Eliminates triple counting of one-time, nonrecurring income by providing that

this income will be counted only for the month that the income is received, and

not for any other month during the transition to retrospective monthly accounting during the first 3 months of an individual’s SSI eligibility. Effective April

2005.

d. Uncashed Checks

1981

Public Law 97-35, 

enacted August 13

States that have Federally-administered supplements to be credited their share

of SSI checks that remain unnegotiated for 180 days.

1987

Public Law 100-86, 

enacted August 10

SSI checks now unnegotiable after 1 year. States are credited their share of SSI

checks after 1 year rather than 180 days.

e. Rounding of Payment Amounts

1982

Public Law 97-248, 

enacted September 3

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent cost-of-living adjustments will be calculated on the

previous year’s benefit standard before rounding.

f. Penalties for False or Misleading Statements or Withholding of 

Information

1999

Public Law 106-169, 

enacted December 14

Provides for the nonpayment of OASDI and SSI benefits (6, 12 and 24 months,

respectively, for the first, second, and third or subsequent violations) for individuals found to have knowingly made a false or misleading statement of material fact for use in determining eligibility for benefits.

2004

Public Law 108-203, 

enacted March 2

Expands the administrative sanction of nonpayment of benefits to situations

where an individual has failed to disclose material information, if the person

knew or should have known that such failure was misleading.

Authorizes Federal courts to order a defendant convicted of defrauding Social

Security, Special Veterans’ Benefits, or SSI to make restitution to SSA. Restitution funds would be deposited to the trust funds or General Fund of the Treasury, as appropriate. Effective with respect to violations occurring on or after

the date of enactment.
59

2005 SSI Annual Report

4. Federal Benefit Rates

Basic benefit standards are used in computing the amount of Federal SSI payments. Benefit levels differ

for individuals and couples living in households and for persons in Medicaid institutions. Individuals or

couples living in their own households receive the full Federal benefit. If an individual or couple is living

in another person’s household and receiving support and maintenance there, the Federal benefit is reduced

by one-third. The Federal benefit rates for persons in households are increased annually to reflect

increases in the cost of living. Legislation affecting the level of Federal benefit rates since the inception of

the SSI program are summarized in table V.A1.

1 For those in another person’s household receiving support and maintenance there, the Federal benefit rate is reduced by one-third. 2 For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.

3 Public Law 92-603, enacted October 30, 1972.

4 Includes persons in private institutions whose care in not provided by Medicaid.

5 Public Law 93-66, enacted July 9, 1973.

6 Public Law 93-233, enacted December 31, 1973.

7 Public Law 93-368, enacted August 7, 1974.

8 Subject to automatic provisions, see table IV.A2.

9 Public Law 98-21, enacted April 20, 1983. 10 Public Law 100-203, enacted December 22, 1987.

Table V.A1.—Federal Benefit Rates Set by Legislation

Act Living arrangements 1

Amount 2

Individual Couple Conditions

1972 3 ....... Own household 4 $130.00 $195.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 5 ....... — 140.00 210.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 6 ....... — 140.00 210.00 Effective January 1, 1974.

1973 6 ....... — 146.00 219.00 Effective July 1, 1974.

1974 7 ....... — — — Mechanism established for providing cost-of-living 

adjustments coordinated with earlier legislation applying to 

OASDI cash benefits. SSI payments to be increased by the 

same percentage as OASDI benefits and at the same time.

— 8157.70 8 236.60 Effective July 1, 1975.

1983 9 ....... — 304.30 456.40 Effective July 1, 1983 (general benefit increase).

— 8 314.00 8 472.00 Effective January 1, 1984.

1973 5 ....... Increment for 

“essential person” 

in household

65.00 — Was to be effective January 1, 1974. For persons transferred 

from OAA, AB, or APTD programs who were receiving 

payments in December 1973 under a State plan that took 

account of “essential persons” in the household.

— 70.00 — Was to be effective July 1, 1974.

1973 6 ....... — 70.00 — Effective January 1, 1974.

— 73.00 — Effective July 1, 1974.

1974 7 ....... — — — Mechanism established for providing cost-of-living 

adjustments.

— 8 78.90 — Effective July 1, 1975.

1983 9 ....... — 152.50 — Effective July 1, 1983 (general benefit increase).

— 8 157.00 — Effective January 1, 1984.

1972 3 ....... Receiving institutional 

care covered by 

Medicaid

25.00 50.00 Effective January 1, 1974. Must be receiving more than 50 

percent of the cost of the care from Medicaid (title XIX of 

the Social Security Act).

1987 10 ..... — 30.00 60.00 Effective July 1, 1988. Must be receiving more than 50 percent 

of the cost of the care from Medicaid (title XIX of the Social 

Security Act).
2005 SSI Annual Report

60

Act 5. Exclusions from Income

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

The first $60 of earned or unearned income per calendar quarter for an individual or couple; the next $195 and one-half the remainder of quarterly earned

income. Unearned income includes Social Security benefits, other government

or private pensions, veterans’ benefits, and workers’ compensation.

1981

Public Law 97-35, 

enacted August 13

The first $20 of earned or unearned income per month for an individual or couple; the next $65 and one-half the remainder of monthly earned income.

Unearned income includes Social Security benefits, other government or private

pensions, veterans’ benefits, and workers’ compensation.

2000

Public Law 106-554, 

enacted December 21

Earnings of persons defined as Social Security statutory employees are treated

as self-employment income for SSI purposes.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Any amount of tax rebate issued to an individual by any public agency that is

based on either real property or food purchase taxes.

Grants, scholarships, and fellowships used to pay tuition and fees at an educational institution.

Income required for achieving an approved self-support plan for blind or disabled persons.

Work expenses of blind persons.

For blind persons transferred from State programs to SSI, income exclusions

equal to the maximum amount permitted as of October 1972 under the State

programs.

Irregularly or infrequently received income totaling $60 or less of unearned

income and $30 of earned income in a calendar quarter.

Payment for foster care of ineligible child residing in recipient’s home through

placement by a public or private nonprofit child care agency.

One-third of any payment received from an absent parent for the support of a

child eligible for SSI.

Certain earnings of a blind or disabled child under age 22 regularly attending an

educational institution.

State or local government cash payments based on need and designed to supplement SSI payments.
61

2005 SSI Annual Report

Act

1976

Public Law 94-331, 

enacted June 30

Disaster assistance from income for 9 months and application of one-third

reduction for 6 months for certain victims of disasters occurring between January 1, 1976 and December 31, 1976.

Public Law 94-566, 

enacted October 20

Any assistance based on need (including vendor payments) made to or on behalf

of SSI recipients, which is paid and wholly funded by State or local governments.

The value of assistance provided under certain Federal housing programs.

1977

Public Law 95-113, 

enacted September 29

Food stamps, Federally donated food, and the value of free or reduced price

food for women and children under the Child Nutrition Act and National School

Lunch Act.

Public Law 95-171, 

enacted November 12

Provisions for exclusions for support and maintenance under the Disaster Relief

and Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1, 1978.

1980

Public Law 96-222, 

enacted April 1

Earned income tax credit treated as earned income (temporarily excluded from

1975 through 1980).

Public Law 96-265, 

enacted June 9

Remunerations received in sheltered workshops and work activity centers are

considered earned income and qualify for earned income exclusions.

Impairment-related work expenses paid by the individual (including cost for

attendant care, medical equipment, drugs, and services necessary to control an

impairment) are deducted from earnings when determining if an individual is

engaging in substantial gainful activity. Impairment-related work expenses are

excluded in calculating income for benefit purposes if initial eligibility for benefits exists on the basis of countable income without applying this exclusion.

1981

Public Law 97-35, 

enacted August 13

Modifies provision under which irregularly or infrequently received income is

excluded to conform to change from quarterly to monthly accounting; amounts

excludable: $20 or less of unearned income and $10 of earned income in a

month.

1982

Public Law 97-377, 

enacted December 21

From December 18, 1982, to September 30, 1983, certain home energy assistance payments are excluded if a State agency certified that they are based on

need.

1983

Public Law 97-424, 

enacted January 6

Support or maintenance assistance (including home energy assistance) provided

in kind by a nonprofit organization or in cash or in kind by certain providers of

home energy is excluded if the State determines that the assistance is based on

need. Provision is applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that the assistance is based on need. Provision is applicable through June

1985.
2005 SSI Annual Report

62

Act

1984

Public Law 98-369, 

enacted July 18

The 1983 provisions for support and maintenance and home energy assistance

continue to October 1, 1987.

1986

Public Law 99-498, 

enacted October 17

Educational assistance used for educational expenses under the Higher Education Act of 1965 as amended.

1987

Public Law 100-203, 

enacted December 22

The 1983 provisions for support and maintenance and home energy assistance

made permanent.

Excludes death payments (for example, proceeds from life insurance) from SSI

income determinations to the extent they were spent on last illness and burial.

Modifies the 1982 resource exclusion for burial funds to extend the exclusion to

any burial fund of $1,500 or less maintained separately from all other assets,

thereby allowing interest to be excluded from income if retained in the fund.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Interest on agreements representing the purchase of an excluded burial space.

Payments from the Agent Orange Settlement.

Value of a ticket for domestic travel received as a gift and not cashed.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit (including the child health insurance portion).

Payments received from a State-administered fund established to aid victims of

crime.

Impairment-related work expenses excluded from income in determining initial

eligibility for benefits.

Payments received as State or local government relocation assistance.

Payments received under the Radiation Exposure Compensation Act.

Redefines as earned income, royalties earned in connection with any publication

of the individual’s work, and honoraria received for services rendered (previously defined as unearned income).

1993

Public Law 103-66, 

enacted August 10

Hostile fire pay to members of the uniformed services.

Payments received as State or local government relocation assistance made permanent.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.
63

2005 SSI Annual Report

Act

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Interest on funds deposited in an individual development account.

Any adjustments made to prior payments from other Federal programs to

account for the error in the computation of the Consumer Price Index during

1999.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit is excluded in determining eligibility for meanstested programs, including SSI.

2004

Public Law 108-203, 

enacted March 2

Changes the calculation of infrequent and irregular income from a monthly to a

quarterly basis. Excludes from the determination of an individual’s income all

interest and dividend income earned on countable resources. Effective July

2004.

Permits the student earned income exclusion to apply to any individual under

age 22 who is a student. Thus, students under age 22 who are married or heads

of households would be eligible for the exclusion. Effective April 2005.

Excludes from the determination of income any gift to an individual for use in

paying tuition or educational fees, just as grants, scholarships, and fellowships

for such use are currently excluded from the determination of income. Effective

June 2004.

6. Resources

1972

Public Law 92-603, 

enacted October 30

Countable resources limited to $1,500 or less for an individual and to $2,250 or

less for a couple.

1984

Public Law 98-369, 

enacted July 18

Limit on countable resources raised by $100 a year for individuals and $150 a

year for couples, beginning in calendar year 1985 through 1989. The respective

limits would become $2,000 for an individual and $3,000 for a couple in 1989

and thereafter.

1999

Public Law 106-169, 

enacted December 14

Includes generally in the countable resources of an individual the assets of a

trust which could be used for the benefit of the individual or spouse.
2005 SSI Annual Report

64

Act a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

A home of reasonable value—established by regulation as not exceeding a fairmarket value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding

a market value of $1,200.

An automobile may be excluded, regardless of value, if the individual’s household uses it for employment or medical treatment, or if it is modified to be operated by or for transportation of a person with a disability.

Life insurance with face value of $1,500 or less.

1976

Public Law 94-569, 

enacted October 20

The recipient’s home, regardless of value, is excluded from consideration in

determining resources.

1977

Public Law 95-171, 

enacted November 12

Assistance received under the Disaster Relief and Emergency Assistance Act of

1974 for 9 months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market value; personal goods and household effects increased to $2,000 of

equity value.

1982

Public Law 97-248, 

enacted September 3

The value, within prescribed limits, of a burial space for the recipient, spouse,

and immediate family is excluded. In addition, $1,500 each (less the value of

already excluded life insurance and any amount in an irrevocable burial arrangement) may be set aside for the burial of the recipient and spouse.

1984

Public Law 98-369, 

enacted July 18

The unspent portion of any retroactive title II or title XVI payment is excluded

for 6 months following its receipt, and the individual must be given written

notice of the time limit on the exclusion.

1985 Regulations permit exclusion, regardless of value, of an automobile needed for

essential transportation or modified for a person with a disability. The $4,500

current market value limit applies only if no automobile could be excluded

based on the nature of its use.

1987

Public Law 100-203, 

enacted December 22

Provides for suspension of the 1980 transfer of assets provision, in any month

that it is determined that undue hardship would result.

Real property that cannot be sold for the following reasons: it is jointly owned;

its sale would cause the other owner(s) undue hardship due to loss of housing;

its sale is barred by a legal impediment; or, the owner’s reasonable efforts to sell

have been unsuccessful.

Temporarily extends the 1984 exclusion of retroactive title II and title XVI benefits from 6 months to 9 months (the longer exclusion applies to benefits paid in

fiscal years 1988 and 1989).
65

2005 SSI Annual Report

Act

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

2004

Public Law 108-203, 

enacted March 2

Increases to 9 months and makes uniform the time period for excluding from

resources amounts attributable to payments of past-due Social Security and SSI

benefits and earned income and child tax credits. Effective for such payments

received on or after the date of enactment.

2005 Regulations permit exclusion, regardless of value, of:

 • One automobile if used for transportation for the beneficiary or a member

of the beneficiary’s household; and

 • Personal goods and household effects.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Assets of a blind or disabled individual that are necessary to an approved plan of

self-support.

Tools and other property essential to self-support (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Specifies that no limitation can be placed on property essential to self-support

used in a trade or business, or by an individual as an employee (including the

tools of a tradesperson and the machinery and livestock of a farmer).

Payments from the Agent Orange Settlement.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit excluded for the month following the month the credit

is received.

Payments received from a State-administered fund established to aid victims of

crime excluded for a 9-month period. Individual not required to file for such

benefits.

Payments received as State or local government relocation assistance

excluded for a 9-month period. (The provision expired 3 years after its effective

date.)

Payments received under the Radiation Exposure Compensation Act.

1993

Public Law 103-66, 

enacted August 10

Makes permanent the 9-month exclusion of payments received as State or local

government relocation assistance.
2005 SSI Annual Report

66

Act

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.

1996

Public Law 104-193, 

enacted August 22

Dedicated financial institution accounts required to be established for large pastdue benefits for disabled individuals under age 18 with a representative payee.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Funds deposited by an individual in an individual development account and the

interest on those funds.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit in the month of receipt and in the following

month.

2004

Public Law 108-203, 

enacted March 2

Excludes grants, scholarships, fellowships, or gifts to be used for tuition or educational fees from an individual’s countable resources for 9 months after the

month of receipt.

c. Transfer-of-Assets Penalties

1980

Public Law 96-611, 

enacted December 28

Assets transferred for less than fair market value for the purpose of establishing

eligibility for benefits under the Social Security Act are counted as resources for

24 months after transfer.

1988

Public Law 100-360, 

enacted July 1

Removes the transfer-of-assets penalty for transfers made July 1, 1988, or later.

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.
67

2005 SSI Annual Report

Act 7. Presumptive and Emergency Payments and Interim Assistance

Reimbursement

a. Presumptive Payments

1972

Public Law 92-603, 

enacted October 30

A person applying on the basis of disability who meets all other criteria of eligibility, and is likely to be disabled, may receive payments for 3 months pending

the disability determination.

1976

Public Law 94-569, 

enacted October 20

Presumptive payment provision was extended to persons applying on the basis

of blindness.

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.

b. Emergency Advance Payments

1972

Public Law 92-603, 

enacted October 30

Any applicant who can be presumed to meet the criteria of eligibility, but has

not yet been determined eligible, and who is faced with a financial emergency

may receive an immediate cash advance of up to $100.

1987

Public Law 100-203, 

enacted December 22

Increases the maximum emergency advance payment amount to the maximum

amount of the regular Federal SSI monthly benefit rate, plus, if any, the Federally-administered State supplementary payment.

1996

Public Law 104-193, 

enacted August 22

Applicants who have a financial emergency may receive an emergency advance

payment in the month of application, which, effective with this law, is always

prior to the first month of eligibility. These advance payments are recouped by

proportional reductions in the recipient’s first 6 months of SSI benefits.

c. Interim Assistance Reimbursement

1974

Public Law 93-368, 

enacted August 7

SSA may enter into agreements with the States to repay them directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The repayment is made from the first check due to the individual. This

legislation expires June 30, 1976.

1976

Public Law 94-365, 

enacted July 14

The authority to repay the State for interim assistance is made permanent.

1987

Public Law 100-203, 

enacted December 22

Extends interim assistance reimbursement to situations in which payments are

made by States or political subdivisions to persons whose SSI payments were

suspended or terminated and who subsequently are found to be eligible for such

benefits. Also clarifies that the payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim

period.
2005 SSI Annual Report

68

Act 8. Medicaid Eligibility

1972

Public Law 92-603, 

enacted October 30

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the

State Medicaid plan in effect on January 1, 1972.

States can accept SSA determination of eligibility, or make their own determination.

1976

Public Law 94-566, 

enacted October 20

Preserves the Medicaid eligibility of recipients who become ineligible for cash

SSI payments due to the cost-of-living increases in Social Security benefits.

1980

Public Law 96-265, 

enacted June 9

Blind or disabled recipients under age 65 no longer eligible for either regular or

special SSI payments because of their earnings may retain SSI recipient status

for Medicaid eligibility purposes under the following conditions: (1) they continue to have the disabling impairment, (2) they meet all nondisability eligibility

criteria except for earned income, (3) they would be seriously inhibited from

continuing employment without Medicaid services, and (4) their earnings are

insufficient to provide a reasonable equivalent of SSI payments and Medicaid.

In States that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid benefits depends on the State’s specific eligibility and program requirements.

The Medicaid provision of the 1980 legislation was in effect from January 1,

1981, through December 31, 1983. Under a 1-year demonstration project,

beginning January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.

1984

Public Law 98-460, 

enacted October 9

Medicaid provision of 1980 legislation extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-272, 

enacted April 7

Restores Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI when their title II benefits increased in 1984 because of a change in

the Social Security disabled widow(er)s benefits reduction factor.
69

2005 SSI Annual Report

Act

1986

Public Law 99-643, 

enacted November 10

The SSI recipient status for Medicaid eligibility provision of the 1980 amendments is made permanent.

Effective July 1, 1987, certain expenses are excluded from earnings when determining sufficiency of earnings to establish SSI recipient status eligibility for

Medicaid purposes:

 • Impairment-related work expenses of disabled persons,

 • Work expenses of blind persons,

 • Income required for achieving an approved self-support plan, and

 • The value of publicly funded attendant care services.

Effective July 1, 1987, preserves the Medicaid eligibility of recipients who

become ineligible for SSI payments because of entitlement to, or an increase in,

Social Security disabled adult child benefits on or after the effective date.

Effective July 1, 1987, requires all States to provide Medicaid coverage for

recipients in special SSI status (either receiving special SSI payments or in the

special recipient status described for 1980) if they received Medicaid coverage

the month before special SSI status.

1987

Public Law 100-203, 

enacted December 22

Effective July 1, 1988, restores or preserves the Medicaid eligibility of persons

aged 60 or older who are eligible for Social Security benefits as widows or widowers (but not eligible for Medicare) and who become ineligible for SSI payments or State supplementation because of the receipt of old-age or survivors

insurance benefits under Social Security.

1990

Public Law 101-508, 

enacted November 5

Age limit for retention of SSI recipient status for Medicaid eligibility purposes

(1980 and subsequent work incentive provisions, above) is eliminated.

Preserves the Medicaid eligibility of SSI recipients who become ineligible for

payments when they become entitled to Social Security disabled widow(er)s

benefits following the revised definition used for their disability.

1997

Public Law 105-33, 

enacted August 5

Requires States to continue Medicaid coverage for disabled children who were

receiving SSI payments as of August 22, 1996 and would have continued to be

eligible for such payments except that their eligibility terminated because they

did not meet the revised SSI childhood disability standard established under

Public Law 104-193.
2005 SSI Annual Report

70

Act 9. State Supplementation

1972

Public Law 92-603, 

enacted October 30

States are given the option of providing supplementary payments both to recipients transferred from the State program and to those newly eligible for SSI.

States may either administer the payments themselves or have the Social Security Administration make payments on their behalf. When State supplementary

payments are Federally-administered, the Social Security Administration makes

eligibility and payment determinations for the State and assumes administrative

costs.

“Hold harmless” protection, which limits a State’s fiscal liability to its share of

OAA, AB, and APTD expenditures for calendar year 1972, is provided to States

electing Federal administration of their supplementary plans. This provision

applies only to supplementary payments that do not, on the average, exceed a

State’s “adjusted payment level.” (The adjusted payment level is the average of

the payments that individuals with no other income received in January 1972; it

may include the bonus value of food stamps. Adjustments are provided for payments that had been below State standards.)

1973

Public Law 93-66, 

enacted July 9

Provides for mandatory State supplementation as assurance against reduction of

income for persons who received State assistance in December 1973 and were

transferred to SSI. These supplementary payments must equal the difference

between (1) the amount of the State assistance payment that the individual

received in December 1973 plus other income and (2) his/her Federal SSI payment plus other income.

1976

Public Law 94-585, 

enacted October 21

After June 30, 1977, when the Federal SSI payment level is increased by a costof-living increase, such an increase will be excluded in calculating the “hold

harmless” amount.

Requires States to maintain State supplementation payments at the level of

December 1976 (“maintenance of payments”) or to continue to pay in supplements the same total annual amounts (“maintenance of expenditures”) when the

Federal SSI payment level is increased and thereby pass through any increases

in Federal benefits without reducing State supplements.

1982

Public Law 97-248, 

enacted September 3

Begins a 3-year phase out of “hold harmless” protection. Effective with fiscal

year 1985, Wisconsin and Hawaii (the only remaining “hold harmless” States)

assumed the full cost of their supplementary payments.

1983

Public Law 98-21, 

enacted April 20

Federal pass-through law is adjusted (1) by substituting the State supplementary

payment levels in effect in March 1983 for those in effect in December 1976 as

the levels that States must maintain in complying with the pass-through requirements, and (2) with regard to the $20 (individual) and $30 (couple) increase in

the Federal SSI standard in July 1983, by requiring States to pass through only

as much as would have been required if the SSI cost-of-living adjustment had

been made in July 1983.
71

2005 SSI Annual Report

Act

1987

Public Law 100-203, 

enacted December 22

Provides for Federal administration of State supplements to residents of medical

institutions.

Provides for required pass through of $5 increase in Federal rate for persons

whose care in institutions is paid in substantial part by Medicaid.

1993

Public Law 103-66, 

enacted August 10

Requires States to pay fees for Federal administration of their State supplementation payments. The fees are $1.67 for each monthly supplementary payment in

fiscal year 1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year 1996. Fees

for subsequent fiscal years will be $5.00 or another amount determined by the

Commissioner to be appropriate. The Commissioner may charge the States

additional fees for services they request that are beyond the level customarily

provided in administering State supplementary payments.

1997

Public Law 105-33, 

enacted August 5

Revises the schedule of per-payment fees for Federal administration of State

supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002.

1999

Public Law 106-170, 

enacted December 17

A State which has an agreement with SSA to administer its supplementation

payments, must remit both payments and fees prior to the SSI payment date.

2000

Public Law 106-554, 

enacted December 21

Changes the effective date of above provision from 2009 to 2001.

10. Overpayment Recovery

1984

Public Law 98-369, 

enacted July 18

Limits the rate of recovering overpayments from monthly payments to the lesser

of: (1) the monthly payment, or (2) 10 percent of a recipient’s monthly income.

Permits a higher or lower adjustment at the request of the recipient subject to the

agreement of the Commissioner. The limit does not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part

of the recipient or spouse in connection with the overpayment.

Waives recovery of certain overpayments due to amount of excess resources of

$50 or less.

Provides temporary authority for the recovery of overpayments from tax

refunds.

1988

Public Law 100-485, 

enacted October 13

Grants permanent authority to recover overpayments from tax refunds.

1998

Public Law 105-306, 

enacted October 28

Authorizes SSA to collect SSI overpayments for individuals not currently eligible for SSI cash benefits by offsetting Old-Age, Survivors, and Disability Insurance (OASDI) benefits, with a maximum monthly offset of no more than 10

percent of the Social Security benefit.
2005 SSI Annual Report

72

Act

1999

Public Law 106-169, 

enacted December 14

Makes representative payees liable for an SSI overpayment caused by a payment made to a recipient who has died, and requires SSA to establish an overpayment control record under the representative payee’s Social Security

number. 

Requires SSA to recover SSI overpayments from SSI lump-sum amounts by

withholding at least 50 percent of the lump-sum payment or the amount of the

overpayment, whichever is less.

Extends all of the debt collection authorities currently available for the collection of overpayments under the OASDI program to the SSI program.

2001

Public Law 107-16, 

enacted June 7

Subjects one-time tax refund payments provided under this Act to overpayment

recovery under tax refund offset provisions. 

2004

Public Law 108-203, 

enacted March 2

Provides for recovery of overpayment of SSI benefits by withholding from

OASDI and Special Veterans’ benefits up to 100 percent of any underpayment

of benefits and 10 percent of ongoing monthly benefits.

Also provides for recovery of overpayment of OASDI or Special Veterans’ benefits by withholding from SSI up to 100 percent of any underpayment of benefits, but limits any recovery from SSI benefits to the lesser of 100 percent of the

monthly benefit or 10 percent of the individual’s total monthly income.

Effective with respect to overpayments that are outstanding at the time of enactment. 
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2005 SSI Annual Report

B. INCOME AND RESOURCE EXCLUSIONS

1. Earned Income Exclusions

 • Any refund of Federal income taxes received under section 32 of the Internal Revenue Code (relating

to earned income tax credit) and any payment received under section 3507 of the Internal Revenue

Code (relating to advance payment of earned income tax credit);

 • Any refundable child tax credit;

 • Up to the first $30 of earned income in a quarter if it is infrequent or irregular, that is, if it is received

only once in a calendar quarter from a single source or if its receipt cannot reasonably be expected;

 • Up to $1,410 per month but not more than $5,670 in a calendar year received by a blind or disabled

recipient who is a student regularly attending school;

 • Any portion of the monthly $20 exclusion for unearned income that has not been used;

 • $65 of earned income in a month;

 • Amounts used to pay impairment-related work expenses if a recipient is disabled (but not blind) and

under age 65 or is disabled (but not blind) and receiving SSI (or disability payments under a former

State plan) before age 651;

 • One-half of remaining earned income in a month;

 • Earned income used to meet any expenses reasonably attributable to the earning of the income if the

recipient is blind and under age 65 or if he/she received SSI as a blind person prior to age 651;

 • Any earned income received and used to fulfill an approved plan to achieve self-support if the recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or disabled

individual in the month before he/she attained age 65; 

 • Any earned income deposited into either a Temporary Assistance for Needy Families (TANF) or

“Assets for Independence Act” individual development account (IDA); and

 • Some Federal laws other than the Social Security Act provide for the exclusion of earned income for

SSI purposes. For the most part, the income received under these laws relates to assistance received in

the form of food, housing and utilities, educational and employment benefits or benefits derived from

being a member of a Native American tribe. A complete list of laws which exclude earned income

under SSI can be found in the Federal Regulations Appendix to Subpart K 20 CFR 416.

2. Unearned Income Exclusions

 • Any public agency’s refund of taxes on real property or food; 

 • Assistance based on need which is wholly funded by a State or one of its political subdivisions. This

includes State supplementation of Federal SSI benefits but does not include payments under a Federal/State grant program such as Temporary Assistance for Needy Families (TANF);

1 Amounts used to pay impairment-related work expenses are deducted before the one-half of earned income deduction, whereas amounts used to pay the

work expenses of the blind are deducted after the one-half of earned income deduction. In effect, amounts of blind work expenses reduce SSI earned income

twice as much as the same amounts of impairment-related work expenses.
2005 SSI Annual Report

74

 • Any portion of a grant, scholarship, fellowship, or gift to an individual used for paying tuition, fees or

other necessary educational expenses. Portions set aside for food or shelter are counted;

 • Food raised by a household if it is consumed by that household;

 • Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided

under any Federal statute because of a catastrophe which the President of the United States declares to

be a major disaster;

 • Up to the first $60 of unearned income in a quarter if it is infrequent or irregular, that is, if a type of

unearned income is received only once during a calendar quarter from a single source or if it cannot

reasonably be expected;

 • Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or

disabled individual in the month before he/she attained age 65;

 • Periodic payments made by a State under a program established before July 1, 1973, and based solely

on the recipient’s length of residence and attainment of age 65;

 • Payments for providing foster care to an ineligible child who was placed in the recipient’s home by a

public or private nonprofit child placement or child care agency;

 • Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial

arrangement which are left to accumulate and become part of the separately identifiable burial fund;

 • Certain support and maintenance assistance provided in the form of home energy assistance;

 • One-third of support payments made by an absent parent if the recipient is a child;

 • The first $20 of unearned income in a month other than income in the form of in-kind support and

maintenance received in the household of another and income based on need;

 • The value of any assistance paid with respect to a dwelling unit under the United States Housing Act

of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act of 1965,

title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959;

 • Any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement (after April 1, 1990);

 • The value of any commercial transportation ticket, for travel by a recipient or his/her spouse among

the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa and

the Northern Mariana Islands, which is received as a gift and is not converted to cash;

 • Payments received from a fund established by a State to aid victims of crime;

 • Relocation assistance provided by a State or local government that is comparable to assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act

of 1970;

 • Hostile fire pay received from one of the uniformed services pursuant to 37 U.S.C. 310 and other

kinds of additional pay received by military personnel in a combat zone;

 • Interest or other earnings on a dedicated account excluded from resources;
75

2005 SSI Annual Report

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • TANF funds made available to an SSI recipient as part of an individual development account (IDA);

 • Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the “Assets for Independence Act” IDA demonstration project and

interest earned on these deposits; 

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416; and

 • All interest and dividend income earned on countable resources.

3. Resource Exclusions

 • The home (including the land appertaining thereto);

 • Household goods and personal effects;

 • One automobile if used for transportation for the beneficiary or a member of the beneficiary’s household;

 • Property of a trade or business which is essential to the means of self-support;

 • Nonbusiness property which is essential to the means of self-support;

 • Resources of a blind or disabled individual which are necessary to fulfill an approved plan for achieving self-support;

 • Stock in regional or village corporations held by natives of Alaska during the 20-year period in which

the stock is inalienable pursuant to the Alaska Native Claims Settlement Act;

 • Life insurance owned by an individual (and spouse, if any) provided that all life insurance on any person does not exceed a face value of $1,500;

 • Restricted allotted Indian lands;

 • Disaster relief assistance;

 • Burial spaces and certain funds up to $1,500 for burial expenses;

 • Title XVI or title II retroactive payments (for 9 months following receipt);

 • Housing assistance;

 • Refunds of Federal income taxes and advances made by an employer relating to an earned income tax

credit, (for 9 months following receipt);

 • Refundable child tax credit for 9 months following receipt;

 • Grants, scholarships, fellowships or gifts to be used for tuition or educational fees (for 9 months);
2005 SSI Annual Report

76

 • Payments received as compensation for expenses incurred or losses suffered as a result of a crime (for

9 months);

 • Relocation assistance from a State or local government (for 9 months);

 • Dedicated financial institution accounts for disabled children;

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • Amounts deposited into either a TANF or “Assets for Independence Act” IDA, including matching

funds and interest earned on such amounts;

 • Certain trusts (e.g., those established by will or certain Medicaid trusts that will repay the State, upon

the death of the beneficiary, for the costs of medical assistance provided to that individual); and

 • Payments or benefits provided under a Federal statute other than title XVI of the Social Security Act

where exclusion is provided by such statute.
77

2005 SSI Annual Report

C. HISTORICAL ALLOWANCE DATA

At the end of 2004, 83 percent of SSI recipients were receiving benefits based on a determination of disability. Claims are filed at a local Social Security office and claims requiring an evaluation of disability are

sent to the State Disability Determination Services (DDS) for a decision. Initial DDS decisions that are

unfavorable to the applicant may be appealed. Until recently, all appeals were initiated at the DDS level

with a request for reconsideration of that initial denial. Persons denied at the reconsideration level could

then apply to the Office of Hearings and Appeals (OHA) for a hearing before an Administrative Law

Judge (ALJ), and if dissatisfied with the hearing decision could request a review by the Appeals Council.

Those dissatisfied with the Appeals Council’s action could seek further relief via the Federal court system.

This appeals process is still in effect for the majority of new applicants. However, in recent years SSA has

conducted small pilots testing revisions to this process and introduced a modification of this process that

has been utilized in 10 States for applications filed on or after October 1, 1999. Under this revised process

appeals of initial denials are made directly to OHA, thereby eliminating the reconsideration step. The

options for appeal beyond the OHA level are unchanged.

Such a process of application and appeal can, in some cases, span several years. However, before 1993,

the only data available on the disability determination process resided in files compiled at each separate

stage of the process and only captured various point-in-time snapshots. A complete picture of the disability determination process can be fully understood only by compiling a longitudinal database from administrative records at all levels of appeal. Beginning in 1993, such a longitudinal database (the “Disability

Research File”) was constructed by SSA’s Office of Disability Programs to assist the agency in understanding and managing this process. In constructing this database, some problems were encountered due to

inconsistencies in the data collected from all the respective levels of appeal. The following sections

present some additional details and qualifications essential to a complete understanding of the resulting

data. Following these technical notes are tables based on the Disability Research File which show the latest available summary of results on disability determinations under title XVI.

1. Technical Notes on the Disability Research File

Methods used to build the title XVI Disability Research File—The “base” file for the title XVI research

file is the Supplemental Security Record (SSR). This “base” file is matched against records from various

other administrative sources, including transactions from the disability determination (SSA-831) files,

Social Security number identification records and earnings data, and OHA case control data. 

The process used to build this research file is cumbersome, involving about 200 steps, and generally

requiring 2 to 4 months to complete. Much of this complexity flows from the fact that the file is assembled

based on filing date cohorts, even though many of the source files do not contain a filing date. The three

most recent calendar year cohorts are completely reassembled from the basic data sources. Older calendar

year cohorts are updated to reflect activity since the last time the file was built. Since the process is so time

consuming, the research file is updated only annually (usually beginning in July). Therefore, research file

data are not yet available for claims filed in 2004.

Methods used for estimating results (through January 2005) for claims filed in 2004—Although decision

counts are available for 2004 filers (from many of the “source” files), those counts do not translate directly

into the claims/appeals counts included in the following tables, due to the consolidation of multiple transactions (and application of claims-based tolerance rules) which occurs when the research file is built.

To prepare preliminary estimates of results (through January 2005) for 2004 filers, we started from the latest available transaction data, such as the SSA-831 data, and took into account recent years’ experience of

the relationship between corresponding earlier transaction data and the resulting claims/appeals data in
2005 SSI Annual Report

78

completed research files. We also considered claims counts from an extract file from the SSR. While we

believe that the methods used are reasonable, it must be emphasized that the resulting estimates may prove

to be of limited reliability, especially in light of the fact that the estimates give results only through January 2005, whereas the final research files will reflect information through June 2005. Actual data for 2004

will be available to replace these estimates in the 2006 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2003 filers are as of June 2004. Results for those years’ filers have been updated to

include OHA results through August 2004. 

 • Data for 2004 filers are preliminary estimates as of January 2005, and reflect larger numbers of claims

still pending. January 2005 data on number of claims appealed may be too low because larger numbers of claimants are still within the period allowed for filing an appeal (i.e., larger numbers of

recently denied claimants who have not yet filed an appeal may appeal before the time limit runs out). 

 • Remaining appeals will affect the results. Since allowances are generally processed more quickly than

denials, we expect that the percent allowed will ultimately be lower as all cases are processed. 

 • In certain pilot activities and under the revised process introduced October 1, 1999 in 10 States, initial

denials can be appealed directly to OHA without a separate reconsideration step. As a result the

appeals of initial denials shown in these tables include cases which will not receive a decision at the

reconsideration level.
79

2005 SSI Annual Report

Table V.C1.—Disabled Adult Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1988 946,603 — 272,204 28.8 674,399 71.2 265,151 39.3

1989 969,218 — 292,044 30.1 677,174 69.9 274,823 40.6

1990 1,099,805 — 347,823 31.6 751,982 68.4 320,207 42.6

1991 1,288,331 — 415,336 32.2 872,995 67.8 383,669 43.9

1992 1,415,624 — 436,888 30.9 978,736 69.1 433,244 44.3

1993 1,503,278 — 416,300 27.7 1,086,978 72.3 485,166 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 75.4 482,533 44.6

1995 1,318,416 — 323,084 24.5 995,332 75.5 439,166 44.1

1996 1,247,926 — 305,351 24.5 942,575 75.5 406,425 43.1

1997 1,110,898 — 292,839 26.4 818,059 73.6 357,999 43.8

1998 1,108,957 — 322,734 29.1 786,223 70.9 339,290 43.2

1999 1,104,975 — 326,607 29.6 778,368 70.4 332,235 42.7

2000 1,139,571 — 344,163 30.2 795,408 69.8 332,935 41.9

2001 1,216,182 — 365,932 30.1 850,250 69.9 355,165 41.8

2002 1,322,349 — 369,879 28.0 952,470 72.0 395,529 41.5

2003 1,400,979 24,818 368,750 26.8 1,007,411 73.2 378,902 37.6

2004 1,438,992 295,644 311,185 27.2 832,163 72.8 238,472 28.7

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,816 68.4 — 139,698 63.0 82,118

1992 — 58,819 13.6 374,425 260,554 69.6 — 159,084 61.1 101,470

1993 — 57,938 11.9 427,228 294,801 69.0 — 170,402 57.8 124,399

1994 — 55,822 11.6 426,711 293,448 68.8 — 164,537 56.1 128,911

1995 — 51,697 11.8 387,469 264,172 68.2 — 143,522 54.3 120,650

1996 — 49,263 12.1 357,162 242,110 67.8 — 133,161 55.0 108,949

1997 — 47,573 13.4 306,561 215,414 70.3 2,101 121,281 55.8 95,897

1998 — 46,507 13.7 292,272 204,910 70.1 2,733 114,711 56.6 87,977

1999 — 42,135 13.3 274,269 194,644 71.0 4,204 117,567 57.0 88,704

2000 — 39,522 14.3 237,714 170,264 71.6 9,203 122,359 56.4 94,401

2001 — 38,987 13.9 241,200 172,082 71.3 29,292 123,526 56.7 94,242

2002 — 39,448 12.7 270,299 189,057 69.9 110,368 95,581 58.1 68,890

2003 34,790 27,407 10.5 232,669 143,103 61.5 188,881 23,438 61.3 14,820

2004 56,229 16,171 12.5 112,954 55,866 49.5 102,821 4,500 73.0 1,663

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1988 946,603 — 946,603 393,003 — 553,600

1989 969,218 — 969,218 425,718 — 543,500

1990 1,099,805 — 1,099,805 508,976 — 590,829

1991 1,288,331 — 1,288,331 614,191 — 674,140

1992 1,415,624 — 1,415,624 654,791 — 760,833

1993 1,503,278 — 1,503,278 644,640 — 858,638

1994 1,436,958 — 1,436,958 574,354 — 862,604

1995 1,318,416 — 1,318,416 518,303 — 800,113

1996 1,247,926 — 1,247,926 487,775 — 760,151

1997 1,110,898 — 1,110,898 461,693 2,101 647,104

1998 1,108,957 — 1,108,957 483,952 2,733 622,272

1999 1,104,975 — 1,104,975 486,309 4,204 614,462

2000 1,139,571 — 1,139,571 506,044 9,203 624,324

2001 1,216,182 — 1,216,182 528,445 29,292 658,445

2002 1,322,349 — 1,322,349 504,908 110,368 707,073

2003 1,400,979 24,818 1,376,161 419,595 223,671 732,895

2004 1,438,992 295,644 1,143,348 331,856 159,050 652,442
2005 SSI Annual Report

80

1 Data for claims filed in 1988-2003 reflect results as of June 2004 at the DDS level and as of August 2004 at the OHA level. The numbers of total claims

filed for 2001-03 are subject to change. Data for claims filed in 2004 are preliminary estimates as of January 2005. The ultimate numbers of allowances and

denials are subject to change until all initial decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

Table V.C1.—Disabled Adult Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1988 — 41.5 — 58.5 41.5 — 58.5

1989 — 43.9 — 56.1 43.9 — 56.1

1990 — 46.3 — 53.7 46.3 — 53.7

1991 — 47.7 — 52.3 47.7 — 52.3

1992 — 46.3 — 53.7 46.3 — 53.7

1993 — 42.9 —

57.1 42.9 — 57.1

1994 — 40.0 — 60.0 40.0 — 60.0

1995 — 39.3 — 60.7 39.3 — 60.7

1996 — 39.1 — 60.9 39.1 — 60.9

1997 — 41.6 0.2 58.3 41.6 0.2 58.3

1998 — 43.6 .2 56.1 43.6 .2 56.1

1999 — 44.0 .4 55.6 44.0 .4 55.6

2000 — 44.4 .8 54.8 44.4 .8 54.8

2001 — 43.5 2.4 54.1 43.5 2.4 54.1

2002 — 38.2 8.3 53.5 38.2 8.3 53.5

2003 1.8 30.0 16.0 52.3 30.5 16.3 53.3

2004 20.5 23.1 11.1 45.3 29.0 13.9 57.1
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2005 SSI Annual Report

Table V.C2.—Disabled Child Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1991 250,962 — 148,220 59.1 102,742 40.9 24,702 24.0

1992 372,971 — 189,079 50.7 183,892 49.3 49,297 26.8

1993 496,131 — 212,268 42.8 283,863 57.2 75,967 26.8

1994 525,013 — 172,219 32.8 352,794 67.2 92,093 26.1

1995 487,730 — 144,231 29.6 343,499 70.4 86,841 25.3

1996 453,473 — 127,416 28.1 326,057 71.9 75,013 23.0

1997 332,032 — 106,528 32.1 225,504 67.9 51,496 22.8

1998 335,732 — 123,249 36.7 212,483 63.3 50,111 23.6

1999 342,153 — 128,543 37.6 213,610 62.4 49,585 23.2

2000 349,288 — 136,989 39.2 212,299 60.8 48,169 22.7

2001 367,751 — 151,288 41.1 216,463 58.9 49,089 22.7

2002 402,455 — 164,056 40.8 238,399 59.2 55,729 23.4

2003 425,740 5,589 169,808 40.4 250,343 59.6 54,094 21.6

2004 402,218 77,954 144,234 44.5 180,030 55.5 32,254 17.9

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,770 49.6 — 7,523 38.1 12,247

1993 — 11,338 14.9 64,629 31,193 48.3 — 10,638 34.1 20,555

1994 — 11,332 12.3 80,761 38,433 47.6 — 12,954 33.7 25,479

1995 — 10,287 11.8 76,554 35,588 46.5 — 10,921 30.7 24,667

1996 — 9,355 12.5 65,658 27,900 42.5 — 8,844 31.7 19,056

1997 — 8,266 16.2 42,705 19,028 44.6 150 7,015 36.2 12,388

1998 — 7,799 15.6 42,237 18,843 44.6 207 7,004 37.4 11,707

1999 — 7,196 15.5 39,377 17,934 45.5 337 7,772 37.7 12,837

2000 — 6,932 18.3 31,051 14,428 46.5 789 8,770 36.8 15,055

2001 — 6,807 18.7 29,643 13,576 45.8 2,937 8,550 36.7 14,728

2002 — 7,390 17.9 33,948 15,030 44.3 12,455 6,290 37.1 10,676

2003 4,333 6,078 16.9 29,838 11,513 38.6 21,411 1,568 39.7 2,379

2004 6,858 2,427 14.1 14,820 4,559 30.8 12,182 167 31.7 359

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1991 250,962 — 250,962 157,709 — 93,253

1992 372,971 — 372,971 206,065 — 166,906

1993 496,131 — 496,131 234,244 — 261,887

1994 525,013 — 525,013 196,505 — 328,508

1995 487,730 — 487,730 165,439 — 322,291

1996 453,473 — 453,473 145,615 — 307,858

1997 332,032 — 332,032 121,809 150 210,073

1998 335,732 — 335,732 138,052 207 197,473

1999 342,153 — 342,153 143,511 337 198,305

2000 349,288 — 349,288 152,691 789 195,808

2001 367,751 — 367,751 166,645 2,937 198,169

2002 402,455 — 402,455 177,736 12,455 212,264

2003 425,740 5,589 420,151 177,454 25,744 216,953

2004 402,218 77,954 324,264 146,828 19,040 158,396
2005 SSI Annual Report

82

1 Data for claims filed in 1991-2003 reflect results as of June 2004 at the DDS level and as of August 2004 at the OHA level. The numbers of total claims

filed for 2001-03 are subject to change. Data for claims filed in 2004 are preliminary estimates as of January 2005. The ultimate numbers of allowances and

denials are subject to change until all initial decisions have been completed and all appeals are final.l.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

10 Less than 0.05 percent.

Table V.C2.—Disabled Child Claims: Disposition of Applications for SSI Disability Benefits by 

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1991 — 62.8 — 37.2 62.8 — 37.2

1992 — 55.2 — 44.8 55.2 — 44.8

1993 — 47.2 — 52.8 47.2 — 52.8

1994 — 37.4 — 62.6 37.4 — 62.6

1995 — 33.9 — 66.1 33.9 — 66.1

1996 — 32.1 — 67.9 32.1 — 67.9

1997 — 36.7 10/ 63.3 36.7 10/ 63.3

1998 — 41.1 0.1 58.8 41.1 0.1 58.8

1999 — 41.9 .1 58.0 41.9 .1 58.0

2000 — 43.7 .2 56.1 43.7 .2 56.1

2001 — 45.3 .8 53.9 45.3 .8 53.9

2002 — 44.2 3.1 52.7 44.2 3.1 52.7

2003 1.3 41.7 6.0 51.0 42.2 6.1 51.6

2004 19.4 36.5 4.7 39.4 45.3 5.9 48.8
83

2005 SSI Annual Report

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a recipient is still eligible for SSI and still receiving the correct payment amount. There are two types of redeterminations: scheduled and unscheduled. Except for certain institutionalized individuals, all recipients are

periodically scheduled for a redetermination. Every year SSA schedules for redetermination the cases

most likely to have payment error, but even the cases unlikely to have payment error are scheduled for

review at least once every 6 years. Unscheduled redeterminations are completed on an as needed basis

when recipients report, or we discover, certain changes in circumstances that could affect the continuing

SSI payment amount. The numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations completed and in the numbers

of scheduled redeterminations that were completed during the fiscal year due to administrative resource

limitations and the impact of other workload requirements on the field offices. When redeterminations

cannot be completed in the fiscal year scheduled, they are carried over into the next fiscal year. Table

V.D1 provides historical data on numbers of redeterminations completed by fiscal year. 

1 Decrease in number of redeterminations completed in fiscal

year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

2 Effective fiscal year 1995, approximately 200,000 fewer redeterminations were selected annually due to a change from a 3-year

to a 6-year redetermination cycle for low-error profile cases.

During periods between scheduled redeterminations, SSA uses the limited issue process to detect situations that have the potential to affect the continuing eligibility of SSI recipients and SSI payment amounts.

SSA conducts periodic computer matches between its own systems and the systems of other Federal and

State agencies to determine if the income and resources information on SSI recipients’ records is in conflict with data obtained from the other systems. Matches detecting conflicting information usually result in

the posting of an identifier to the Supplemental Security Record of the SSI recipient. The case is then

selected and scheduled for a field office review of the issue for which the indicator was posted. In fiscal

year 2004, SSA released about 250,000 limited issue cases for development by field offices.

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the Social

Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at

Table V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2004

[In thousands] 

Fiscal year

Number of

redeterminations

1986 . . . . . . . . . . . . . . . . . . . . . . . . 2,278

1987 . . . . . . . . . . . . . . . . . . . . . . . . 2,244

1988 . . . . . . . . . . . . . . . . . . . . . . . . 1,997

1989 . . . . . . . . . . . . . . . . . . . . . . . . 2,226

1990 . . . . . . . . . . . . . . . . . . . . . . . . 2,103

1991 . . . . . . . . . . . . . . . . . . . . . . . . 2,138

1992 . . . . . . . . . . . . . . . . . . . . . . . . 2,321

1993 . . . . . . . . . . . . . . . . . . . . . . . . 2,223

1994 . . . . . . . . . . . . . . . . . . . . . . . . 1 1,900

1995 . . . . . . . . . . . . . . . . . . . . . . . . 2 1,597

1996 . . . . . . . . . . . . . . . . . . . . . . . . 1,763

1997 . . . . . . . . . . . . . . . . . . . . . . . . 1,773

1998 . . . . . . . . . . . . . . . . . . . . . . . . 1,853

1999 . . . . . . . . . . . . . . . . . . . . . . . . 2,122

2000 . . . . . . . . . . . . . . . . . . . . . . . . 2,182

2001 . . . . . . . . . . . . . . . . . . . . . . . . 2,316

2002 . . . . . . . . . . . . . . . . . . . . . . . . 2,311

2003 . . . . . . . . . . . . . . . . . . . . . . . . 2,450

2004 . . . . . . . . . . . . . . . . . . . . . . . . 2,279
2005 SSI Annual Report

84

least every 3 years. A similar requirement was not put in place at that time for disabled title XVI recipients. Although the Committee on Finance of the Senate stated in its report on this legislation that the same

continuing disability review (CDR) procedures should be applied with respect to both the title II and

title XVI programs, title XVI was not amended to accomplish this. Section 1614(a)(4) of the Act gives

SSA discretionary authority to conduct periodic CDRs on SSI recipients. On September 28, 1994, SSA

issued a Federal Register notice that periodic SSI CDRs would begin on October 1, 1994. In 1994 and

again in 1996 legislation was enacted adding some mandates for the performance of CDRs under the SSI

program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required to

conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA was

required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who reached age

18 after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child recipients who reach age 18, with such redetermination being based on the adult eligibility criteria. This law

also added the requirement that a CDR be performed:

 • At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted

in the deferral of full medical reviews for 185,522 cases for which a scheduled title XVI CDR was processed in 2004.

For cases involving individuals who receive both title II and title XVI benefits, CDRs are typically initiated as title II CDRs with the results of the review affecting eligibility for benefits under both programs.

Tables V.D2 and V.D3 present the latest available summary of results1 on CDRs of title XVI recipients

performed under titles II and XVI since 1993. These tables include only cases for which a full medical

review was conducted. In particular they do not include:

 • Cases for which a mailer was completed, but for which a full medical review was deferred;

 • CDRs initiated as the result of work activity on the part of the beneficiary/recipient; and

 • Miscellaneous other CDRs processed by the State Disability Determination Services but not as part of

the normal CDR scheduling process (such as voluntary and third-party reports of medical improvement, post-transplant end-stage renal disease cases, and vocational rehabilitation reports).

In contrast with the allowance data presented in section V.C, the CDR data is tabulated on a cohort basis

by the date of initial decision.

1 The numbers of SSI recipients whose benefits are ceased as a result of CDRs are included in these tables. Estimates of Federal SSI program savings

resulting from the cessation of benefits are reported to Congress in the Annual Report of Continuing Disability Reviews. The most recent such report was

issued October 27, 2004, presenting estimates of the effects of CDRs conducted in fiscal year 2003.
85

2005 SSI Annual Report

Table V.D2.—SSI Disabled Adult Reviews: Disposition1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent 2 Number Percent 2 Number Percent 3

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 16,736 12,484 74.6 4,252 25.4 2,905 68.3

1996 26,884 20,636 76.8 6,248 23.2 4,119 65.9

1997 51,466 40,741 79.2 10,725 20.8 7,344 68.5

1998 81,185 68,533 84.4 12,652 15.6 8,743 69.1

1999 80,816 70,353 87.1 10,463 12.9 6,206 59.3

2000 105,787 93,962 88.8 11,825 11.2 6,864 58.0

2001 110,341 99,666 90.3 10,675 9.7 6,334 59.3

2002 103,947 92,069 88.6 11,878 11.4 7,204 60.6

2003 72,175 63,021 87.3 9,154 12.7 5,598 61.2

2004 84,622 75,047 88.7 9,575 11.3 5,621 58.7

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,277 76.4 1,010 23.6 665 65.8

1996 55,025 46,273 84.1 8,752 15.9 6,146 70.2

1997 69,557 57,662 82.9 11,895 17.1 8,722 73.3

1998 75,071 64,829 86.4 10,242 13.6 7,244 70.7

1999 140,429 125,079 89.1 15,350 10.9 10,297 67.1

2000 173,470 156,065 90.0 17,405 10.0 10,946 62.9

2001 143,902 126,610 88.0 17,292 12.0 10,331 59.7

2002 172,527 150,837 87.4 21,690 12.6 13,554 62.5

2003 213,212 191,061 89.6 22,151 10.4 15,076 68.1

2004 221,129 199,938 90.4 21,191 9.6 14,071 66.4

Total reviews, SSI disabled adults

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 21,023 15,761 75.0 5,262 25.0 3,570 67.8

1996 81,909 66,909 81.7 15,000 18.3 10,265 68.4

1997 121,023 98,403 81.3 22,620 18.7 16,066 71.0

1998 156,256 133,362 85.3 22,894 14.7 15,987 69.8

1999 221,245 195,432 88.3 25,813 11.7 16,503 63.9

2000 279,257 250,027 89.5 29,230 10.5 17,810 60.9

2001 254,243 226,276 89.0 27,967 11.0 16,665 59.6

2002 276,474 242,906 87.9 33,568 12.1 20,758 61.8

2003 285,387 254,082 89.0 31,305 11.0 20,674 66.0

2004 305,751 274,985 89.9 30,766 10.1 19,692 64.0
2005 SSI Annual Report

86

Table V.D2.—SSI Disabled Adult Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,245 42.9 1,660 1,007 60.7 — 382 37.9 625

1996 — 1,875 45.5 2,244 1,313 58.5 — 427 32.5 886

1997 — 4,297 58.5 3,047 2,257 74.1 — 973 43.1 1,284

1998 1 5,512 63.1 3,230 2,472 76.5 3 1,154 46.7 1,315

1999 5 3,974 64.1 2,227 1,542 69.2 1 679 44.1 862

2000 17 4,427 64.7 2,420 1,564 64.6 10 655 42.1 899

2001 49 4,178 66.5 2,107 1,272 60.4 53 478 39.2 741

2002 145 4,790 67.9 2,269 1,533 67.6 363 458 39.1 712

2003 253 3,560 66.6 1,785 1,063 59.6 659 153 37.9 251

2004 1,545 2,791 68.5 1,285 534 41.6 498 9 25.0 27

Title XVI initiated reviews

1993 — — — — — — — — — —

1994 — — — — — — — — — —

1995 — 241 36.2 424 267 63.0 — 87 32.6 180

1996 — 3,289 53.5 2,857 1,946 68.1 — 623 32.0 1,323

1997 — 5,271 60.4 3,451 2,575 74.6 — 986 38.3 1,589

1998 — 4,530 62.5 2,714 1,990 73.3 3 777 39.1 1,210

1999 4 6,611 64.2 3,682 2,511 68.2 3 969 38.6 1,539

2000 24 6,824 62.5 4,098 2,783 67.9 10 1,054 38.0 1,719

2001 75 6,225 60.7 4,031 2,665 66.1 91 895 34.8 1,679

2002 279 8,165 61.5 5,110 3,461 67.7 771 842 31.3 1,848

2003 575 9,622 66.4 4,879 3,128 64.1 1,862 411 32.5 855

2004 2,783 7,727 68.5 3,561 1,705 47.9 1,557 48 32.4 100

Total reviews, SSI disabled adults

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,486 41.6 2,084 1,274 61.1 — 469 36.8 805

1996 — 5,164 50.3 5,101 3,259 63.9 — 1,050 32.2 2,209

1997 — 9,568 59.6 6,498 4,832 74.4 — 1,959 40.5 2,873

1998 1 10,042 62.8 5,944 4,462 75.1 6 1,931 43.3 2,525

1999 9 10,585 64.2 5,909 4,053 68.6 4 1,648 40.7 2,401

2000 41 11,251 63.3 6,518 4,347 66.7 20 1,709 39.5 2,618

2001 124 10,403 62.9 6,138 3,937 64.1 144 1,373 36.2 2,420

2002 424 12,955 63.7 7,379 4,994 67.7 1,134 1,300 33.7 2,560

2003 828 13,182 66.4 6,664 4,191 62.9 2,521 564 33.8 1,106

2004 4,328 10,518 68.5 4,846 2,239 46.2 2,055 57 31.0 127
87

2005 SSI Annual Report

1 Data reflect results as of January 2005. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 The status and disposition of cases in the Federal courts is not reflected here. However, for cases remanded by the courts to the Office of Hearings and

Appeals, the status and disposition at OHA is included. The excluded experience in the Federal courts has a minimal impact on the number of continuations. 5 Number of persons appealing beyond the reconsideration level.

6 Less than 0.05 percent.

Table V.D2.—SSI Disabled Adult Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2005

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 16,736 14,111 — 2,625 84.3 — 15.7

1996 26,884 22,938 — 3,946 85.3 — 14.7

1997 51,466 46,011 — 5,455 89.4 — 10.6

1998 81,185 75,199 4 5,982 92.6 6/ 7.4

1999 80,816 75,006 6 5,804 92.8 6/ 7.2

2000 105,787 99,044 27 6,716 93.6 6/ 6.3

2001 110,341 104,322 102 5,917 94.5 0.1 5.4

2002 103,947 97,317 508 6,122 93.6 .5 5.9

2003 72,175 66,734 912 4,529 92.5 1.3 6.3

2004 84,622 77,847 2,043 4,732 92.0 2.4 5.6

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,605 — 682 84.1 — 15.9

1996 55,025 50,185 — 4,840 91.2 — 8.8

1997 69,557 63,919 — 5,638 91.9 — 8.1

1998 75,071 70,136 3 4,932 93.4 6/ 6.6

1999 140,429 132,659 7 7,763 94.5 6/ 5.5

2000 173,470 163,943 34 9,493 94.5 6/ 5.5

2001 143,902 133,730 166 10,006 92.9 .1 7.0

2002 172,527 159,844 1,050 11,633 92.6 .6 6.7

2003 213,212 201,094 2,437 9,681 94.3 1.1 4.5

2004 221,129 207,713 4,340 9,076 93.9 2.0 4.1

Total reviews, SSI disabled adults

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 21,023 17,716 — 3,307 84.3 — 15.7

1996 81,909 73,123 — 8,786 89.3 — 10.7

1997 121,023 109,930 — 11,093 90.8 — 9.2

1998 156,256 145,335 7 10,914 93.0 6/ 7.0

1999 221,245 207,665 13 13,567 93.9 6/ 6.1

2000 279,257 262,987 61 16,209 94.2 6/ 5.8

2001 254,243 238,052 268 15,923 93.6 .1 6.3

2002 276,474 257,161 1,558 17,755 93.0 .6 6.4

2003 285,387 267,828 3,349 14,210 93.8 1.2 5.0

2004 305,751 285,560 6,383 13,808 93.4 2.1 4.5
2005 SSI Annual Report

88

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent 2 Number Percent 2 Number Percent 3

Reviews of low-birth-weight children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 4,231 2,083 49.2 2,148 50.8 665 31.0

1996 5,709 2,491 43.6 3,218 56.4 904 28.1

1997 7,091 4,482 63.2 2,609 36.8 821 31.5

1998 17,620 6,092 34.6 11,528 65.4 3,644 31.6

1999 9,773 4,114 42.1 5,659 57.9 1,641 29.0

2000 10,178 4,566 44.9 5,612 55.1 1,574 28.0

2001 9,086 4,152 45.7 4,934 54.3 1,423 28.8

2002 12,732 5,869 46.1 6,863 53.9 2,000 29.1

2003 7,283 3,516 48.3 3,767 51.7 1,057 28.1

2004 12,060 6,075 50.4 5,985 49.6 1,737 29.0

Redeterminations at age 18

1994 — — —————

1995 71 64 90.1 7 9.9 5 71.4

1996 12,640 8,158 64.5 4,482 35.5 2,055 45.9

1997 48,834 22,431 45.9 26,403 54.1 16,743 63.4

1998 40,945 21,453 52.4 19,492 47.6 10,922 56.0

1999 49,557 27,413 55.3 22,144 44.7 10,892 49.2

2000 51,713 28,863 55.8 22,850 44.2 11,052 48.4

2001 48,944 28,167 57.5 20,777 42.5 10,177 49.0

2002 54,947 32,388 58.9 22,559 41.1 11,748 52.1

2003 53,905 31,862 59.1 22,043 40.9 12,005 54.5

2004 53,232 31,890 59.9 21,342 40.1 11,353 53.2

All other reviews of SSI disabled children

1994 — — —————

1995 3,535 2,501 70.7 1,034 29.3 541 52.3

1996 789 399 50.6 390 49.4 210 53.8

1997 14 8 57.1 6 42.9 3 50.0

1998 91,157 67,203 73.7 23,954 26.3 13,277 55.4

1999 183,211 129,420 70.6 53,791 29.4 28,437 52.9

2000 140,699 106,583 75.8 34,116 24.2 17,092 50.1

2001 95,835 72,896 76.1 22,939 23.9 12,024 52.4

2002 163,768 130,434 79.6 33,334 20.4 18,226 54.7

2003 127,444 100,522 78.9 26,922 21.1 15,222 56.5

2004 103,437 80,748 78.1 22,689 21.9 12,466 54.9

Total reviews, SSI disabled children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 7,837 4,648 59.3 3,189 40.7 1,211 38.0

1996 19,138 11,048 57.7 8,090 42.3 3,169 39.2

1997 55,939 26,921 48.1 29,018 51.9 17,567 60.5

1998 149,722 94,748 63.3 54,974 36.7 27,843 50.6

1999 242,541 160,947 66.4 81,594 33.6 40,970 50.2

2000 202,590 140,012 69.1 62,578 30.9 29,718 47.5

2001 153,865 105,215 68.4 48,650 31.6 23,624 48.6

2002 231,447 168,691 72.9 62,756 27.1 31,974 50.9

2003 188,632 135,900 72.0 52,732 28.0 28,284 53.6

2004 168,729 118,713 70.4 50,016 29.6 25,556 51.1
89

2005 SSI Annual Report

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of low-birth-weight children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 184 27.7 481 219 45.5 — 53 24.2 166

1996 — 329 36.4 575 232 40.3 — 44 19.0 188

1997 — 292 35.6 529 235 44.4 — 50 21.3 185

1998 — 1,234 33.9 2,410 1,142 47.4 — 244 21.4 898

1999 2 607 37.0 1,032 489 47.4 2 83 17.0 404

2000 11 609 39.0 954 453 47.5 — 100 22.1 353

2001 20 504 35.9 899 422 46.9 28 59 15.0 335

2002 51 699 35.9 1,250 581 46.5 136 88 19.8 357

2003 55 363 36.2 639 276 43.2 173 22 21.4 81

2004 551 487 41.1 699 241 34.5 229 2 16.7 10

Redeterminations at age 18

1994 — — — — — — — — — —

1995 — 2 40.0 3 2 66.7 — 1 50.0 1

1996 — 707 34.4 1,348 584 43.3 — 119 20.4 465

1997 2 4,591 27.4 12,150 6,434 53.0 5 1,517 23.6 4,912

1998 2 3,074 28.2 7,846 4,392 56.0 12 1,020 23.3 3,360

1999 7 3,364 30.9 7,521 4,314 57.4 19 1,051 24.5 3,244

2000 40 3,575 32.5 7,437 4,044 54.4 27 1,001 24.9 3,016

2001 132 3,256 32.4 6,789 3,872 57.0 224 912 25.0 2,736

2002 259 3,819 33.2 7,670 4,414 57.5 1,068 840 25.1 2,506

2003 471 3,808 33.0 7,726 4,110 53.2 2,511 407 25.5 1,192

2004 3,366 2,710 33.9 5,277 2,094 39.7 1,911 55 30.1 128

All other reviews of SSI disabled children

1994 — — — — — — — — — —

1995 — 177 32.7 364 202 55.5 — 52 25.7 150

1996 — 69 32.9 141 55 39.0 — 17 30.9 38

1997 — 1 33.3 2 1 50.0 — — — 1

1998 — 4,460 33.6 8,817 5,516 62.6 4 1,306 23.7 4,206

1999 25 9,325 32.8 19,087 11,718 61.4 13 2,608 22.3 9,097

2000 78 6,437 37.8 10,577 6,263 59.2 33 1,417 22.7 4,813

2001 225 4,622 39.2 7,177 4,416 61.5 271 914 22.1 3,231

2002 407 7,241 40.6 10,578 6,514 61.6 1,621 1,044 21.3 3,849

2003 569 6,232 42.5 8,421 4,766 56.6 2,980 406 22.7 1,380

2004 3,747 3,712 42.6 5,007 2,103 42.0 1,965 35 25.4 103

Total reviews, SSI disabled children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 363 30.0 848 423 49.9 — 106 25.1 317

1996 — 1,105 34.9 2,064 871 42.2 — 180 20.7 691

1997 2 4,884 27.8 12,681 6,670 52.6 5 1,567 23.5 5,098

1998 2 8,768 31.5 19,073 11,050 57.9 16 2,570 23.3 8,464

1999 34 13,296 32.5 27,640 16,521 59.8 34 3,742 22.7 12,745

2000 129 10,621 35.9 18,968 10,760 56.7 60 2,518 23.5 8,182

2001 377 8,382 36.1 14,865 8,710 58.6 523 1,885 23.0 6,302

2002 717 11,759 37.6 19,498 11,509 59.0 2,825 1,972 22.7 6,712

2003 1,095 10,403 38.3 16,786 9,152 54.5 5,664 835 23.9 2,653

2004 7,664 6,909 38.6 10,983 4,438 40.4 4,105 92 27.6 241
2005 SSI Annual Report

90

1 Data reflect results as of January 2005. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 The status and disposition of cases in the Federal courts is not reflected here. However, for cases remanded by the courts to the Office of Hearings and

Appeals, the status and disposition at OHA is included. The excluded experience in the Federal courts has a minimal impact on the number of continuations. 5 Number of persons appealing beyond the reconsideration level.

6 Less than 0.05 percent.

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2005

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of low-birth-weight children

1994 1,225 830 — 395 67.8 — 32.2

1995 4,231 2,320 — 1,911 54.8 — 45.2

1996 5,709 2,864 — 2,845 50.2 — 49.8

1997 7,091 4,824 — 2,267 68.0 — 32.0

1998 17,620 7,570 — 10,050 43.0 — 57.0

1999 9,773 4,804 4 4,965 49.2 6/ 50.8

2000 10,178 5,275 11 4,892 51.8 0.1 48.1

2001 9,086 4,715 48 4,323 51.9 .5 47.6

2002 12,732 6,656 187 5,889 52.3 1.5 46.3

2003 7,283 3,901 228 3,154 53.6 3.1 43.3

2004 12,060 6,564 780 4,716 54.4 6.5 39.1

Redeterminations at age 18

1994 — — —————

1995 71 67 — 4 94.4 — 5.6

1996 12,640 8,984 — 3,656 71.1 — 28.9

1997 48,834 28,539 7 20,288 58.4 6/ 41.5

1998 40,945 25,547 14 15,384 62.4 6/ 37.6

1999 49,557 31,828 26 17,703 64.2 .1 35.7

2000 51,713 33,439 67 18,207 64.7 .1 35.2

2001 48,944 32,335 356 16,253 66.1 .7 33.2

2002 54,947 37,047 1,327 16,573 67.4 2.4 30.2

2003 53,905 36,077 2,982 14,846 66.9 5.5 27.5

2004 53,232 34,655 5,277 13,300 65.1 9.9 25.0

All other reviews of SSI disabled children

1994 — — —————

1995 3,535 2,730 — 805 77.2 — 22.8

1996 789 485 — 304 61.5 — 38.5

1997 14 9 — 5 64.3 — 35.7

1998 91,157 72,969 4 18,184 80.0 6/ 19.9

1999 183,211 141,353 38 41,820 77.2 6/ 22.8

2000 140,699 114,437 111 26,151 81.3 .1 18.6

2001 95,835 78,432 496 16,907 81.8 .5 17.6

2002 163,768 138,719 2,028 23,021 84.7 1.2 14.1

2003 127,444 107,160 3,549 16,735 84.1 2.8 13.1

2004 103,437 84,495 5,712 13,230 81.7 5.5 12.8

Total reviews, SSI disabled children

1994 1,225 830 — 395 67.8 — 32.2

1995 7,837 5,117 — 2,720 65.3 — 34.7

1996 19,138 12,333 — 6,805 64.4 — 35.6

1997 55,939 33,372 7 22,560 59.7 6/ 40.3

1998 149,722 106,086 18 43,618 70.9 6/ 29.1

1999 242,541 177,985 68 64,488 73.4 6/ 26.6

2000 202,590 153,151 189 49,250 75.6 .1 24.3

2001 153,865 115,482 900 37,483 75.1 .6 24.4

2002 231,447 182,422 3,542 45,483 78.8 1.5 19.7

2003 188,632 147,138 6,759 34,735 78.0 3.6 18.4

2004 168,729 125,714 11,769 31,246 74.5 7.0 18.5
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2005 SSI Annual Report

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received SSI

payments. Initially, the program contained a basic earned income exclusion that recognized the additional

costs associated with employment. In addition, the law contained a number of special income exclusions

which were intended as work incentives. Among these provisions were the income exclusion for blind

work expenses (BWE), plan for achieving self-support (PASS), and student earned income exclusion

(SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

 • Providing for an earned income exclusion for impairment-related work expenses (IRWE);

 • Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

 • Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

 • Establishing section 1619 which provided:

 — In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to

represent substantial gainful activity (SGA), and

 — In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs.1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure V.E1 presents this information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the SSI Disabled Recipients Who Work. Pub. No.

13-11829, prepared by the Office of Research, Evaluation, and Statistics, Social Security Administration.
2005 SSI Annual Report

92

1 Increases in 2001 and subsequent years are based on increases in the national average wage index.

2 Workers’ earnings are above SGA level.

3 Workers’ earnings are at or below SGA level.

4 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

5 Increased to $700 in July 1999.

Note: Totals do not necessarily equal the sums of rounded components.

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-2004

Year

SGA

level 1

In current-payment status 1619(b)

workers 4 Total

1619(a) workers workers 2 Other workers 3

1987 . . . . . . . . . . . . . . . . . . . $300 14,559 142,664 15,632 172,855

1988 . . . . . . . . . . . . . . . . . . . 300 19,920 153,599 15,625 189,144

1989 . . . . . . . . . . . . . . . . . . . 300 25,655 161,928 18,254 205,837

1990 . . . . . . . . . . . . . . . . . . . 500 13,994 182,421 23,517 219,932

1991 . . . . . . . . . . . . . . . . . . . 500 15,531 186,824 27,264 229,619

1992 . . . . . . . . . . . . . . . . . . . 500 17,603 199,665 31,649 248,917

1993 . . . . . . . . . . . . . . . . . . . 500 20,028 210,322 35,299 265,649

1994 . . . . . . . . . . . . . . . . . . . 500 24,315 217,478 40,683 282,476

1995 . . . . . . . . . . . . . . . . . . . 500 28,060 223,573 47,002 298,635

1996 . . . . . . . . . . . . . . . . . . . 500 31,085 225,310 51,905 308,300

1997 . . . . . . . . . . . . . . . . . . . 500 34,673 228,093 57,089 319,855

1998 . . . . . . . . . . . . . . . . . . . 500 37,271 229,662 59,542 326,475

1999 . . . . . . . . . . . . . . . . . . . 5 700 25,528 245,825 69,265 340,618

2000 . . . . . . . . . . . . . . . . . . . 700 27,542 249,313 83,572 360,427

2001 . . . . . . . . . . . . . . . . . . . 740 22,100 247,555 76,455 346,110

2002 . . . . . . . . . . . . . . . . . . . 780 17,271 241,462 82,177 340,910

2003 . . . . . . . . . . . . . . . . . . . 800 17,132 235,453 71,097 323,682

2004 . . . . . . . . . . . . . . . . . . . 810 17,114 237,409 73,681 328,204

 Figure V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients 

as of December, 1987-2004

[In thousands]

0

50

100

150

200

250

300

350

400

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

1619(b) workers

1619(a) workers

Recipients in current-pay

working at or below SGA
93

2005 SSI Annual Report

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive

provisions: (1) plan for achieving self-support (PASS), (2) impairment-related work expense exclusion

(IRWE), and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than

one of these selected work incentive provisions. This information is available only for calendar years 1990

and later.

1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

Note: Working recipients participating in these other work incentives may be 1619(a) recipients, 1619(b) recipients or working

recipients whose earnings are at or below the SGA level.

b. Average Earnings of Participants in Work Incentive Programs

In this section, we present historical data on average earnings of SSI working recipients. Table V.E3 presents average earnings of SSI recipients categorized according to their section 1619 status.

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, with increases in 2001 and subsequent years based on increases in the national average wage index.

In January 2005 the SGA level was increased to $830.

2 Workers’ earnings are at or below the SGA level.

3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

4 Estimated.

Table V.E2.—SSI Federally-Administered Blind or Disabled Individuals with SSI Recipient Status Participating 

in Other Work Incentives as of December, 1990-2004

Year

PASS 1

Non-workers Workers Total IRWE BWE

1990 . . . . . . . . . . . . . . . . . . . 1,215 1,040 2,255 5,384 4,385

1991 . . . . . . . . . . . . . . . . . . . 1,969 1,601 3,570 6,546 4,330

1992 . . . . . . . . . . . . . . . . . . . 3,189 2,658 5,847 7,813 4,454

1993 . . . . . . . . . . . . . . . . . . . 4,528 3,602 8,130 8,629 4,406

1994 . . . . . . . . . . . . . . . . . . . 5,842 4,487 10,329 9,484 4,380

1995 . . . . . . . . . . . . . . . . . . . 5,719 4,603 10,322 9,940 4,433

1996 . . . . . . . . . . . . . . . . . . . 2,760 1,944 4,704 9,799 4,230

1997 . . . . . . . . . . . . . . . . . . . 1,290 708 1,998 9,637 4,116

1998 . . . . . . . . . . . . . . . . . . . 712 362 1,074 9,301 3,802

1999 . . . . . . . . . . . . . . . . . . . 698 347 1,045 9,520 3,971

2000 . . . . . . . . . . . . . . . . . . . 862 520 1,382 9,422 3,895

2001 . . . . . . . . . . . . . . . . . . . 1,024 576 1,600 8,798 3,642

2002 . . . . . . . . . . . . . . . . . . . 1,150 571 1,721 8,047 3,386

2003 . . . . . . . . . . . . . . . . . . . 1,181 524 1,705 7,604 3,074

2004 . . . . . . . . . . . . . . . . . . . 1,112 486 1,598 6,874 2,827

Table V.E3.—Average Monthly Earnings of SSI Federally-Administered Blind or

Disabled Working Recipients, as of December, 1987-2004 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . $494 4 $124 $739 4 $211

1988 . . . . . . . . . . . . . . . . . . . . . . . 522 4 127 721 4 218

1989 . . . . . . . . . . . . . . . . . . . . . . . 518 4 131 712 4 231

1990 . . . . . . . . . . . . . . . . . . . . . . . 712 145 746 245

1991 . . . . . . . . . . . . . . . . . . . . . . . 724 148 780 262

1992 . . . . . . . . . . . . . . . . . . . . . . . 726 150 781 271

1993 . . . . . . . . . . . . . . . . . . . . . . . 728 153 784 280

1994 . . . . . . . . . . . . . . . . . . . . . . . 746 157 803 301

1995 . . . . . . . . . . . . . . . . . . . . . . . 754 160 834 322

1996 . . . . . . . . . . . . . . . . . . . . . . . 764 162 881 344

1997 . . . . . . . . . . . . . . . . . . . . . . . 772 164 932 367

1998 . . . . . . . . . . . . . . . . . . . . . . . 772 182 954 390

1999 . . . . . . . . . . . . . . . . . . . . . . . 926 207 980 418

2000 . . . . . . . . . . . . . . . . . . . . . . . 945 239 1,048 481

2001 . . . . . . . . . . . . . . . . . . . . . . . 1,004 252 1,043 475

2002 . . . . . . . . . . . . . . . . . . . . . . . 1,043 253 1,094 495

2003 . . . . . . . . . . . . . . . . . . . . . . . 1,059 241 1,081 469

2004 . . . . . . . . . . . . . . . . . . . . . . . 1,076 246 1,070 474
2005 SSI Annual Report

94

2. Vocational Rehabilitation/Ticket to Work Program 

Provisions designed to make vocational rehabilitation (VR) services available to SSI blind or disabled

recipients have been part of the SSI program since its inception. From the beginning, SSI recipients were

referred to State VR agencies, which provided services to those recipients who were accepted as clients.

Prior to 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981

amendments changed this and established a “cost” reimbursement provision. VR agencies would be

reimbursed for the cost of VR services furnished to blind or disabled SSI recipients only if the services

resulted in the recipient returning to work. For reimbursement purposes, recipients are considered to have

returned to work if they have had earnings exceeding the SGA level for 9 continuous months. 

The 1984 amendments authorized reimbursement for cases1 where the recipient medically recovers while

engaged in a program of rehabilitation services approved by SSA and SSA determines that continuation or

completion of such a program would increase the likelihood the individual will be permanently removed

from the rolls. Effective with the 1990 amendments, reimbursement for the cost of VR services was authorized for services provided in months in which the individual was not receiving Federal SSI benefits if the

individual: 

 • Had special SSI recipient status for Medicaid purposes under section 1619(b) of the Social Security

Act, 

 • Received a Federally-administered State supplementary payment, or 

 • Had SSI benefits suspended for fewer than 13 consecutive months for a reason other than cessation of

disability or blindness. 

In 1994, the regulations were amended to include reimbursement to alternate private and non-State public

VR providers (referred to as “alternate participants”) that provided VR services to recipients that a State

VR agency had not accepted as clients. The alternate provider program has subsequently been replaced by

the Ticket to Work and Self-Sufficiency program (Ticket to Work program) established by the Ticket to

Work and Work Incentives Improvement Act of 1999.

Under the Ticket to Work program, a disabled beneficiary may obtain vocational rehabilitation,

employment and other support services from qualified private or public providers that are referred to as

“Employment Networks” (ENs). The Ticket to Work program authorized the Commissioner to provide

payments to ENs under either an outcome payment system or an outcome-milestone payment system.

(State VR agencies were provided the option to elect on a case-by-case basis to be paid either under the

traditional VR reimbursement system, or either the outcome or outcome-milestone payment system.) By

expanding the pool of providers and giving the providers incentives for achieving success, this program

expands access to these services for persons with disabilities to assist them in finding, entering, and

retaining employment and reducing their dependence on cash benefits. 

The Ticket to Work program was implemented on a State-by-State basis beginning in February 2002 and

has been fully implemented nationwide since November 2003. As the Ticket to Work program was

implemented in a State, the alternate provider and the traditional VR referral process described earlier

were eliminated. SSA provided eligible individuals who received SSI benefits due to blindness or

disability in such State with a Ticket to Work document (“ticket”). Beneficiaries who receive a ticket may

use it to obtain from ENs or their State VR agencies vocational rehabilitation services, employment

services and other support services needed to return to work or go to work for the first time. Individuals

1 The 1980 amendments provided for benefit continuation for such SSI recipients who were continuing in a VR program after their disability had ceased.

The provision was extended to blind recipients effective April, 1988.
95

2005 SSI Annual Report

not eligible for a ticket may still request services from a State VR agency; the VR agency continues to

decide whether each beneficiary is eligible for services under the Rehabilitation Act of 1973. 

The Ticket legislation required that SSA establish a corps of work incentives specialists to disseminate

accurate information about work incentives. In addition, the Social Security Protection Act of 2004

mandated that SSA provide a work report receipt to the beneficiary. In response to these mandates, SSA:

 • In fiscal year 2003, established the Area Work Incentives Coordinator (AWIC) position and trained a

total of 58 AWICs, with at least one AWIC being assigned to each Area Office. The AWIC position

was created to improve the quality of employment support services provided to beneficiaries through

training, outreach, and better coordination of support services.

 • In fiscal year 2004, released a web-based design application known as eWork that provides the

agency with a uniform electronic system to process and control return to work cases. One of the major

features of eWork is that it allows the user to provide the mandated work report receipt in addition to

tracking the processing of the return to work report. It is expected that eWork will also help the

agency reduce overpayments on return to work cases. Since the processing of return to work cases is

complex, systems enhancements continue to be made to the application. 

In fiscal year 2003, AWIC employees provided refresher training on employment supports to the local

Work Incentive Liaisons (WIL) located in each of the 1,335 local field offices. The systems application

phase of this training was updated beginning in fiscal year 2004 with the release of eWork. Training has

been provided to all direct service employees in field offices, teleservice centers and the payment processing centers. This training initiative was completed in November 2004.

AWICs have also been very active in participating in outreach activities in their local areas and continue to

be the primary point of contact for public information outreach in the communities. They have strengthened the relationship with our Ticket to Work partners: the ENs; Benefits Planning, Assistance and Outreach (BPAO) organizations; Protection and Advocacy (P&A) agencies and Disability Program

Navigators. AWICs also work closely with the regional Plan to Achieve Self-Support (PASS) cadres in

SSA to make joint educational presentations to the community about our employment support programs.

The partnership has strengthened support of one of the objectives of the Ticket to Work program which is

to educate the public about the benefits of returning to work and becoming self-sufficient. Presentations

that have been made directly to persons with disabilities and/or entities that provide services to this target

group include presentations at:

 • Disability Employment Fairs

 • Disability Forums and Expos

 • Technical Colleges

 • Universities

 • Disability Resource Centers

 • One Stop Centers

 • Small Business Administration Groups

 • Workforce Investment Fairs

 • Independent Living Councils’ Conferences
2005 SSI Annual Report

96

 • United Way Agencies

 • State Advocacy Groups

See section V.G.1.c for information on the evaluation of the Ticket to Work program.

Table V.E4 provides historical data on the number of reimbursement claims allowed and the amount of

such awards for SSI recipients.

1 For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

2 For fiscal years 1987-89, data on title II reimbursement claims involving concurrent title XVI reimbursement claims are not available.

Note: Totals do not necessarily equal the sums of rounded components.

Table V.E4.—Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2004

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands) Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987 . . . . . . . 2/ 2/ 1,493 $10,010 2/ 2/

1988 . . . . . . . 2/ 2/ 1,720 14,831 2/ 2/

1989 . . . . . . . 2/ 2/ 1,871 18,366 2/ 2/

1990 . . . . . . . 1,267 $3,290 2,819 22,832 4,086 $26,122

1991 . . . . . . . 1,445 4,325 2,171 20,615 3,616 24,940

1992 . . . . . . . 1,634 5,312 2,834 28,276 4,468 33,588

1993 . . . . . . . 1,928 6,670 2,158 22,264 4,086 28,934

1994 . . . . . . . 1,880 7,057 2,074 23,400 3,954 30,457

1995 . . . . . . . 2,140 7,761 2,229 26,402 4,369 34,162

1996 . . . . . . . 2,033 6,518 2,138 24,334 4,171 30,852

1997 . . . . . . . 2,735 8,541 2,914 31,532 5,649 40,073

1998 . . . . . . . 3,329 10,089 3,446 36,313 6,775 46,402

1999 . . . . . . . 3,572 11,403 4,046 42,281 7,618 53,684

2000 . . . . . . . 3,260 11,357 3,589 40,793 6,849 52,150

2001 . . . . . . . 2,388 9,590 2,763 34,842 5,151 44,432

2002 . . . . . . . 3,241 12,201 3,474 43,244 6,715 55,445

2003 . . . . . . . 2,139 8,110 1,993 25,238 4,132 33,348

2004 . . . . . . . 1,999 7,759 2,150 26,390 4,149 34,149
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2005 SSI Annual Report

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present data on participation by SSI recipients in other programs. Certain information

is available from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data summarized from the SSR are very representative of the overall SSI recipient population since

the information is based on a 100-percent extract or, for certain information, on a 10-percent extract from

the SSR. Data from the SSR are presented in section 1 below.

There are other potential sources for information on SSI recipients that are not available on the SSI administrative files. One source in particular is the Survey of Income and Program Participation (SIPP)1, a U.S.

Census Bureau sample survey that collects information such as the source and amount of income, program

participation and general demographic characteristics for the U.S. civilian noninstitutionalized population.

Data from the SIPP are presented in section 2. 

1. Program Participation Data from the Supplemental Security Record (SSR)

Since the amount of an individual’s income is used to determine both the eligibility for, and the amount of

his/her SSI benefit, it is necessary for the SSR to contain information on participation by SSI recipients in

certain other programs which may provide countable income to the SSI recipient. A significant number of

SSI recipients are Social Security beneficiaries whose total countable income, including OASDI benefits,

is less than the Federal benefit rate plus the amount of applicable Federally-administered State supplementary payment. A smaller number of SSI recipients participate in other programs and receive income such

as Worker’s Compensation benefits or disability cash benefits from the Department of Veterans Affairs.

SSA does not maintain complete information in its administrative files concerning the involvement of SSI

recipients in other assistance programs, because under the law payments from such programs are excluded

from countable income attributable to the individual. We do, however, have some data with regard to entitlement to benefits under two other programs—Temporary Assistance for Needy Families (TANF) (which

replaced Aid to Families with Dependent Children (AFDC)) and State Interim Assistance Reimbursement—at the point that the individual applied for SSI benefits. TANF (and AFDC previously) is a State

program funded under Part A of title IV of the Social Security Act. Interim assistance is assistance a State

gives to SSI applicants in cash or vendor payments for meeting basic needs while they are awaiting the

outcome of the SSI eligibility determination process.

Table V.F1 presents percentages of SSI recipients who (1) concurrently receive payments from certain

other selected programs or (2) have previously been enrolled in TANF/AFDC or received Interim Assistance Reimbursement.

1 The SIPP is a sample survey conducted by the U.S. Census Bureau, which collects data on the U.S. civilian noninstitutionalized population. The SIPP is

comprised of a continuous series of national panels which are identified by the year in which interviewing began for that panel. The participants in the panel

are divided into four rotation groups, with each group being interviewed monthly on a rotating basis concerning the 4 months prior to the month of interview.

The data are released in waves, where 4 months of interviews comprise a wave. The data presented here are for December 2001 and are taken from Wave 3

of the 2001 Panel.
2005 SSI Annual Report

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1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Note: Total numbers of recipients do not necessarily equal the sums of rounded components.

2. Program Participation Data from the Survey of Income and Program Participation (SIPP)

In this section we present information on program participation by SSI recipients or households of SSI

recipients which is not available from SSA administrative files. This information is based on data collected by interviews conducted under Wave 3 of the 2001 SIPP Panel and then matched to SSA administrative records. The reference month of December 2001 is used since that is the most recent December for

which data are available. Since the 2001 Panel consists of 36,700 households, the sample of households

including SSI recipients is small. In interpreting the SIPP estimates it is important to consider (a) the statistical error of estimates, and (b) the limitation of the SIPP sample frame to the noninstitutional population of the United States. Therefore great care should be taken in using this information to make

generalizations about the overall SSI recipient population. The data are presented in table V.F2.

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this age grouping participate in the program.

3 Medicaid participation is automatic for SSI beneficiaries in 33 States. For SSI recipients in these States, the self-reported Medicaid variable is recorded to

indicate participation. In the remaining States, self-reported Medicaid participation is used.

4 Medicare enrollment is automatic for elderly individuals who receive OASI benefits, as well as for working-age individuals who have received DI benefits for 2 years or more. For individuals in these OASDI beneficiary categories according to SSA administrative records, the self-reported Medicare variable

is recoded to indicate participation. For individuals whose administrative records indicate that they are not in these OASDI beneficiary categories the selfreported Medicare variable is recoded to indicate nonparticipation. For individuals who did not provide their SSN, self-reported Medicare participation is

used.

Table V.F1.—Percentage of SSI Federally-Administered Recipients in Current-Payment Status with Participation 1

in Selected Programs Based on SSA Administrative Records, December, 2004

Age groups

0-17 18-64 All

65 or

older

Number of Federally-administered recipients, 

December, 2004 (in thousands). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 993 4,017 1,978 6,988

Program (In percent)

Program participation by SSI recipients, December, 2004

Federal SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7 96.4 92.7 95.8

Federally-administered State SSI supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.2 33.1 46.0 35.7

OASDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 31.0 57.0 34.9

Black Lung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/

Railroad Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 0.1 2/

Veterans Affairs disability cash benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.6 2.3 1.0

Worker’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 2/ 0.1

Previous program participation by SSI recipients, December, 2004

TANF/AFDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.8 26.5 8.8 23.9

Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 15.2 9.7 11.6

Table V.F2.—Percentage of Noninstitutionalized SSI Federally-Administered Recipients with Participation1

in Selected Programs Based on Data Collected Under Wave 3 of the Survey of Income and

Program Participation Matched to SSA Administrative Records, December, 2001

Age groups

0-17 18-64 All

65 or

older

Number of surveyed individuals reporting SSI Income, December, 2001 . . . . . . . . . . . . . . . . . . . . . . . . 179 941 430 1,550

Number of surveyed individuals as a percentage of noninstitutionalized Federally-administered 

recipients, December, 2001 (in percent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.02 0.03 0.02 0.02

Program (In percent)

Program participation by SSI recipients, December, 2001

General assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 1.0 0.9 0.8

Medicaid3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.2 94.8 98.1 95.6

Medicare4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 25.2 62.9 33.0

School breakfast/lunch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.0 0.7 2/ 10.0

TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 4.5 2/ 2.6

Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 2/ 2/

Special Supplemental Food Program for Women, Infants, and Children (WIC) . . . . . . . . . . . . . . . . . 0.9 2.7 2/ 1.7

Program participation by households of SSI recipients, December, 2001 

Energy assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.0 14.9 11.2 13.7

Housing assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3 9.6 7.3 9.0

Food stamps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 43.5 41.1 41.1
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G. RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of information about “relevant research on the

SSI program by the Social Security Administration (SSA) and others.” Section 1 of this appendix

describes major ongoing projects. Section 2 presents a bibliography of studies that have been conducted

by public and private entities regarding SSI payment levels, recipients, and reform proposals.

1. Ongoing Research

a. Analyses Using Survey of Income and Program Participation Data

Using Survey of Income and Program Participation (SIPP) data matched to administrative records, SSA

researchers have developed a model of financial eligibility for SSI that has been used to estimate the rate

of participation among the eligible elderly and the effects of various options to modify the SSI program

(see Davies et al. 2001/2002). The model suggests that the rate of participation among the eligible elderly

was about 62 percent in 1991. The comparable participation rate estimate at the end of 1996 was also

62 percent.

The model was also utilized to simulate the potential effects of several approaches to expand the SSI program to fight poverty among the elderly. Approaches focusing on incremental changes in the Federal benefit rate, the general income exclusion, and the asset test appear roughly equally effective in reducing the

poverty gap among the elderly on a cost-equivalent basis, while two approaches focusing on relaxing the

earned income exclusion are less effective (Davies, Rupp, and Strand, 2004). The financial eligibility

model has also been utilized to study eligibility for Medicare buy-in programs (see Rupp and Sears 2000;

Sears 2001/2002). More recently, the model has been expanded to address SSI participation and financial

eligibility among the working-age disabled, and to assess SSI benefit restructuring options for the entire

SSI population. The model was used to simulate the effects of several approaches to changing in-kind support and maintenance rules and options for altering the calculation of the Federal benefit rate for certain

living arrangement categories.

Additional research using the matched SIPP records focused on the estimation of the prevalence of households and families with multiple SSI recipients and to assess the poverty status of multirecipient households (Koenig and Rupp, 2003/2004). The 1984 SIPP survey respondents were followed up for 14 years

based on administrative records on SSI and DI participation and death events to assess the relationship

between self-reported health status, disabilities, mortality and participation in the SSI and DI programs

(Rupp and Davies, 2004).

b. National Survey of Children and Families

The National Survey of Children and Families (NSCF) was designed to address a number of SSA policy

and program objectives, specifically issues pertaining to the effects of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996 (welfare reform) and updated information on SSI children

and their families. The welfare reform legislation made four changes relating to children with disabilities:

(1) redefining childhood disability from an impairment comparable to that preventing an adult from working to “two marked and severe functional limitations;” (2) eliminating the individualized functional

assessment (IFA) as a basis for determination; (3) removing maladaptive behaviors from the personal/

behavioral domain of the childhood mental disorders listing; and (4) requiring a redetermination at age 18.

Among the questions the survey answers are the following: 

 • What are the characteristics of SSI children? 

 • What alternative sources of care are available to disabled children who lose SSI benefits?
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 • How is quality of life and utilization of medical services impacted by gaining or losing SSI benefits?

 • What is the cost of caring for a child with disabilities?

 • What are the uses of SSI benefits?

 • What is the impact of receiving childhood SSI benefits on parental labor force participation? 

The data from the survey will allow SSA to evaluate future changes to the SSI program that may affect

children and to further evaluate the effects of welfare reform on SSI children and their families. Data collection for the survey was completed in summer 2002. SSA has received a data file and is producing a

series of analyses. In addition, SSA funded a project with the Disability Research Institute to examine the

role of vocational rehabilitation services for youth based on the NSCF. Furthermore, the study of Representative Payees required by section 107 of the Social Security Protection Act of 2004 and designed to

study the misuse of benefits and risk factors will utilize the NSCF.

The NSCF will provide valuable insights into SSA priorities; however, it is a cross-sectional effort. Therefore, SSA may consider another round of the NSCF to enhance its capability to better address SSA goals.

c. Evaluation of the Ticket to Work Program

The Ticket to Work and Work Incentives Improvement Act of 1999 requires the Commissioner of Social

Security to provide for independent evaluations to assess the effectiveness of the Ticket to Work program,

and to submit three separate evaluation reports to Congress. The first report on the evaluation was submitted in 2004, and it included recommendations for methods to adjust payment rates to ensure adequate

incentives for the provision of services by employment networks. The remaining evaluation reports will be

submitted in 2005 and 2007.

SSA awarded two 5-year contracts to Mathematica Policy Research to conduct the evaluation of the Ticket

to Work program (May 2003). The first contract focuses on data development, qualitative data collection,

and implementation of the comprehensive evaluation analyses. The second contract will implement a survey of beneficiaries. The survey was sent into the field in 2004 and will be repeated annually through

2007.

d. Homeless Outreach Projects and Evaluation (HOPE)

In fiscal years 2003-05, SSA’s appropriations included earmarked funds totaling $24 million to conduct

outreach to homeless and other under-served populations in support of the President’s initiative to end

chronic homelessness within 10 years. In 2004, SSA awarded funds to 41 service providers in 21 States

that currently provide outreach services to the homeless population. The service providers began enrolling

project participants in September 2004. As of January 2005, HOPE grantees assisted 1,464 homeless individuals with their applications for SSI. Of those, 286 have been awarded SSI benefits based on disability.

The HOPE initiative is focused on assisting eligible, homeless individuals in applying for SSI and Social

Security Disability Insurance (SSDI) benefits. The HOPE projects will help SSA demonstrate the effectiveness of using skilled medical and social service providers to identify and engage homeless individuals

with disabilities as well as assist them with the application process.

e. Youth Transition Demonstration

In September 2003, to further the President’s New Freedom Initiative goal of increasing employment of

individuals with disabilities, SSA awarded cooperative agreements to six States (California, Colorado,
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2005 SSI Annual Report

Iowa, New York, Maryland, and Mississippi) for the purpose of developing service delivery systems to

assist youth with disabilities to successfully transition from school to work. Year two funding was awarded

in September 2004. During this critical period of transition to adulthood, the services provided to youth

with disabilities can prepare them for postsecondary education, employment, and economic self-sufficiency. 

The States have established partnerships to improve employment outcomes for youth ages 14-25 who

receive SSI or Social Security Disability Insurance (SSDI) payments on the basis of their own disability.

The projects will provide a broad array of transition-related services and supports to SSI and SSDI youth

applicants and beneficiaries.

f. Florida Freedom Initiative (FFI)

The Florida Agency for Persons with Disabilities has a Centers for Medicare & Medicaid Services (CMS)

waiver program which allows individuals to obtain cash instead of certain Medicaid services to allow participants greater control in the planning and purchasing of supports and services. In February 2004, the

Commissioner announced SSA’s waiver of certain SSI program rules to allow SSI recipients to participate

in the FFI.

g. Disability Program Navigators

In September 2002, SSA and the Department of Labor’s (DOL) Employment and Training Administration

agreed to fund a two-year pilot and evaluation of the Disability Program Navigator (DPN). Approximately 200 DPN positions were created in 17 States.

Disability Program Navigators operate in DOL’s One-Stop Career Centers and provide seamless employment services to individuals seeking to enter the workforce. They also provide an important link to the

local employment market and facilitate access to programs and services that impact the success of individuals with disabilities who are seeking employment.

h. Interim and Ongoing Medical Benefits

The interim medical benefits demonstration will provide health benefits to individuals with no medical

insurance (no “treating source” evidence) whose medical condition would likely improve with treatment.

This intervention will facilitate the development of the necessary documentation for disability adjudication while providing the applicant needed services. The ongoing medical benefits demonstration will test

the effects of providing health insurance coverage to beneficiaries who wish to work, but have no other

affordable access to health insurance.

2. Bibliography

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Angel, Ronald J. “Living Arrangements and Supplemental Security Income Use Among Elderly Asians

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Angel, R. J., J. L. Angel, G. Y. Lee, and K. S. Markides. “Age at Migration and Family Dependency

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Autor, David H. and Mark G. Duggan. The Rise in Disability Recipiency and the Decline in Unemployment. JCPR Working Paper No. 226, Joint Center for Poverty Research, June 2001.

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Barrilleaux, Charles and Ethan Bernick. “Deservingness, Discretion, and the State Politics of Welfare

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Bound, John, Michael Schoenbaum, and Timothy A. Waidman. Health Limitations and Early Retirement.

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Brown, Michael Hayden. Geographic and Group Variation in Supplemental Security Income. Ph.D. dissertation, University of Kentucky, 2002.

Burkhauser, Richard V., and Mary C. Daly. “U.S. Disability Policy in a Changing Environment.” Journal

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Davies, Paul, Howard Iams, and Kalman Rupp. “The Effect of Welfare Reform on SSA’s Disability Programs: Design of Policy Evaluation and Early Evidence.” Social Security Bulletin 63, 1 (2000): 3-11.

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2005 SSI Annual Report

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Diller, M. “Dissonant Disability Policies: The Tensions Between the Americans with Disabilities Act and

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“Impact of Expanding SSI on Medical Expenditures of Disabled Children.” Health Care Financing

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Giertz, Seth. An Examination of the Impact of Federal Disability Programs On Family Labor Supply: Evidence from the Health and Retirement Study, Center for Retirement Research Dissertation, Center for

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Gilmer, Todd, Richard Kronick, Paul Fishman, and Theodore G. Ganiats. “The Medicaid Rx Model: Pharmacy-Based Risk Adjustment for Public Programs.” Medical Care 39, 11 (November 2001): 1188-1202.

Goulet, Joseph L., Robert Rosenheck, and Leslie Douglas. “Effectiveness of a Targeted Mailing Outreach

Program on SSI Applications and Awards.” The Social Service Review 73, 4 (Dec. 1999): 579-587.

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Gruber, Jonathan and Jeffrey Kubik. Health Insurance Coverage and the Disability Insurance Application

Decision. Center for Retirement Research Working Paper No. 2002-04, Center for Retirement Research at

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Guydish, Joseph, Claudia Ponath, Alan Bostrom, Kevin M. Campbell, and Nancy Barron. “Effects of Losing SSI Benefits on Standard Drug and Alcohol Outcomes Measures.” Contemporary Drug Problems 30,

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Haider, Steven J., Alison Jacknowitz, and Robert F. Schoeni. The Economic Status of Elderly Divorced

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Hannsgen, Greg P. and Steven H. Sandell. “Deeming Rules and the Increase in the Number of Children

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Hanrahan, Patricia, Daniel J. Luchin, Lea Cloninger, and James Swartz. “Medicaid Eligibility of Former

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Hao, Lingxin and Yukio Kawano. “Immigrants’ Welfare Use and Opportunity for Contact with Co-Ethnics.” Demography 38, 3 (August 2001): 376-389.

Hill, Steven C. and Judith Wooldridge. “SSI Enrollees’ Health Care in TennCare.” Journal of Health Care

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________. “Plan Characteristics and SSI Enrollees’ Access to and Quality of Care in Four TennCare

MCOs.” Health Services Research 37, 5 (2002): 1197-1220.

Hill, Steven C., Craig Thornton, Christopher Trenholm, and Judith Wooldridge. “Risk Selection Among

SSI Enrollees in TennCare.” Inquiry 39, 2 (Summer 2002): 152-167.

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Addiction and Alcoholism Program.” Contemporary Drug Problems 30, 1-2 (Spring/Summer 2003): 

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Effects of the 1996 Welfare Reform Legislation on SSI Benefits for Disabled Children: Second Round Case

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Disabled Children: First Round Case Study Findings. RAND Corporation Report DRU-2017, June 1999.

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2005 SSI Annual Report

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H. GLOSSARY

Administrative Expenses (or Costs). Expenses incurred by the Social Security Administration (SSA) in

administering the Supplemental Security Income (SSI) program. Such administrative expenses are initially

paid from the OASI and DI Trust Funds as provided for in section 201(g)(1) of the Social Security Act.

The trust funds are subsequently reimbursed for such expenditures, including any interest lost, from the

General Fund of the Treasury.

Affidavit of Support. A contract under which a United States citizen or legal resident agrees to provide

support to maintain (i.e., to sponsor) an immigrant as a condition of the immigrant’s admission into the

United States.

Aged. Individuals aged 65 or older.

Aid—Old-Age Assistance (OAA), Aid to the Blind (AB), and Aid to the Permanently and Totally

Disabled (APTD). The former Federal-State programs of adult cash assistance under titles I, X, and XVI

respectively, that were replaced in the 50 States and the District of Columbia by the SSI program in 1974.

These programs still operate in Guam, the Virgin Islands, and Puerto Rico and are administered at the Federal level by the Secretary of Health and Human Services.

Alien Lawfully Admitted for Permanent Residence. A noncitizen lawfully accorded the privilege of

residing permanently in the United States. Such individuals may be issued immigrant visas overseas by the

Department of State, or adjusted to permanent resident status while living in the United States by the U.S.

Citizenship and Immigration Services (USCIS).

Appeal Rights Process. The administrative review process followed by SSA in determining an individual’s rights under the Social Security Act. The administrative review process consists of several steps,

which must be requested after the unfavorable initial determination within certain time periods and in the

following order: (1) reconsideration, (2) hearing before an administrative law judge, and (3) an Appeals

Council review. SSA introduced a modification of this process in 10 States for disability applications filed

October 1, 1999 and later. Under this revised process appeals of initial disability denials are made directly

to the Office of Hearings and Appeals (OHA), thereby eliminating the reconsideration step. The options

for appeal beyond the OHA level are unchanged.

Assistance Based on Need. Assistance that is provided by certain programs which use income as a factor

of eligibility. The assistance must be funded wholly by a State, a political subdivision of a State, or a combination of such jurisdictions.

Assumptions. Values relating to future trends in certain key factors which affect the eligibility for SSI

benefits and the level of such SSI payments. Demographic assumptions include fertility, mortality, net

immigration, marriage, divorce, retirement patterns, disability incidence and termination rates, and

changes in the labor force. Economic assumptions include unemployment, average earnings, inflation,

interest rates, and productivity. The assumptions underlying the projections presented in this report are

consistent with the intermediate assumptions of the 2005 OASDI Trustees Report.

Asylee. A noncitizen already in the United States or at a port-of-entry who is granted asylum in the

United States. Asylum may be granted to an individual who is unable or unwilling to return to his/her

country of nationality, or to seek the protection of that country, because of persecution (or a well-founded

fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particular social

group or political opinion.

Attendant Care Services. Services (including personal care assistance) that are paid for from Federal,

State or local funds and which are provided by a paid attendant required to assist with work related and/or

personal functions. 
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Automatic Cost-of-Living Increase. The annual increase in SSI Federal benefit rates, effective for January of the current year, reflecting the change in the cost of living. The increase equals the percentage

increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers measured from the

average over July, August, and September of the second preceding year to the average for the same

3 months in the preceding year. If the increase is less than one-tenth of 1 percent, when rounded, there is

no automatic increase for the current year; the increase for the next year would reflect the increase in the

cost of living over a 2-year period.

Award. An administrative determination that an individual is eligible for an SSI benefit.

Blind. For purposes of the SSI program, an individual is considered to be blind if he/she has 20/200 or

less vision in the better eye with the use of a correcting lens, has tunnel vision of 20 degrees or less, or met

the October 1972 State definition of blindness and received benefits under the State’s former program of

Aid to the Blind in December 1973.

Blind Work Expenses (BWE). Any expenses incurred by a blind individual that are reasonably attributable to earning income. The BWE provision permits the exclusion of these expenses from the earned

income of a blind individual. (See “Impairment-Related Work Expenses (IRWE)” for the related exclusions

for disabled individuals.)

Burial Funds. A comprehensive term that for SSI purposes includes revocable burial contracts, trusts and

other burial arrangements (including amounts paid on installment sales contracts for burial spaces), cash,

accounts, or other financial instruments with a definite cash value clearly designated for the individual’s

burial expenses.

Child. A blind or disabled individual who is under age 18. 

Comparable Severity. The phrase in the Social Security Act that defined disability for children prior to

the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-193).

Under prior law, an individual under age 18 would have been considered disabled if he/she had an impairment of comparable severity to that required for individuals 18 or older.

Constant Dollars. Dollar amounts adjusted by the CPI to the value of the dollar in a particular year.

Consumer Price Index (CPI). Relative measure of inflation. In this report, all references to the CPI

relate to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Continuing Disability Review (CDR). An evaluation of an individual’s impairment(s) to determine

whether the person is still disabled within the meaning of the law for purposes of eligibility for SSI and

OASDI benefits.

Cost-of-Living Adjustment (COLA). See “Automatic Cost-of-Living Increase.”

Countable Income. An individual’s income less all-applicable exclusions. This amount is used to determine SSI eligibility and benefit amount.

Countable Resources. The amount of resources after all exclusions. This amount is used in determining

an individual’s or couple’s SSI eligibility. A resource may be cash or other liquid assets or any real or personal property that an individual (or his/her spouse) owns and could convert to cash to be used for support

and maintenance. SSI law stipulates what items are to be excluded from resources. 

Current Dollars. Amounts expressed in nominal dollars with no adjustment for inflationary changes in

the value of the dollar over time.

Current-Payment Status. Status of an SSI recipient to whom a benefit is being paid for a given month.

SSI benefits for a month are usually payable on the first day of that month.
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Dedicated Account. An account in a financial institution established for a disabled or blind child to contain retroactive SSI payments that exceed six times the Federal benefit rate (FBR) plus State supplementation (certain smaller retroactive payments may be placed in the account once it is established). Funds may

be used for: 

 • Education,

 • Personal needs assistance,

 • Special equipment or housing modifications,

 • Medical treatment,

 • Therapy or rehabilitation, or

 • Other items or services that the Commissioner deems appropriate—

provided that the expense benefits the child and, in the case of the last four items, is related to the child’s

impairment. Money from a dedicated account which is misapplied must be repaid. These accounts are

excluded from resources and the interest earned is excluded from income.

Deeming. The process by which the income and resources of an ineligible individual are considered to be

available to a recipient when determining eligibility or payment amount. Deeming applies only between:

 • The living-with ineligible spouse and the eligible spouse,

 • The living-with ineligible parent(s) and eligible child(ren) under age 18, and

 • The immigration sponsors of some noncitizens and the noncitizen(s).

Demographic Assumptions. See “Assumptions.”

Disability. For individuals aged 18 or older, the inability to engage in any substantial gainful activity

(SGA) by reason of any medically determinable physical or mental impairment that can be expected to

result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.

An individual under age 18 must have a medically determinable physical or mental impairment, which

results in marked and severe functional limitations and which has lasted or can be expected to last for a

continuous period of not less than 12 months.

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.

Earned Income Exclusion. The first $65 of a recipient’s monthly earnings and one-half of the earnings

in excess of $65 are excluded in computing the SSI benefit payable.
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Earned Income Tax Credit (EITC). A special tax credit that reduces the Federal tax liability of certain

low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer.

Economic Assumptions. See “Assumptions.”

Effective Date of Application. An application for SSI benefits is effective on the first day of the month

following the date on which the application is filed, or on which the individual first becomes eligible,

whichever is later. 

Eligible Couple. Two persons married and living together in the same household or living together as

married, both being aged, blind, or disabled and eligible for SSI.

Eligible Individual. An aged, blind or disabled person who meets all the requirements for eligibility

under the SSI program, including filing an application.

Emergency Advance Payments (EAP). Special SSI payments that are available only at the time of initial application for eligible individuals who face financial emergencies and need assistance before their

first benefits would otherwise be received. The amount of the EAP an individual receives is recovered

from subsequent benefit payments.

Essential Person. An individual whose presence in the home of an SSI recipient who was transferred

from a State assistance program to SSI in January 1974 results in an increase in the FBR of the SSI recipient. The essential person must have been (1) living in the household of the SSI recipient in December

1973 and continuously thereafter; (2) never eligible for SSI; (3) not eligible for State assistance in December 1973; and (4) taken into account when the SSI recipient’s need for State assistance was determined in

December 1973.

Federal Benefit Rate (FBR). The basic standard used in computing the amount of Federal SSI benefits

for individuals and couples. The FBRs are increased annually to reflect increases in the cost of living. (See

table IV.A2.)

Fiscal Year (FY). The accounting year of the United States Government. Since 1976, a fiscal year is the

12-month period ending September 30. For example, fiscal year 2005 began October 1, 2004 and will end

September 30, 2005.

Food Stamps. The U.S. Department of Agriculture (USDA), under cooperative Federal-State agreements,

issues Food Stamp Program benefits in the form of paper food coupons (commonly known as food

stamps) and through electronic benefit transfer, to provide nutrition for low-income families. Food stamps

can be used only to buy food at stores authorized by USDA to accept them.

General Fund of the Treasury. Funds held by the Treasury of the United States, other than receipts collected for a specific purpose (such as Social Security) and maintained in a separate account for that purpose.

Gross Domestic Product (GDP). The total market value of goods and services produced by labor and

property located in the United States, regardless of who supplies the labor or property. 

Holding-Out Marriage. A situation in which a man and woman who are not legally married to each

other are living together in the same household and holding out to the community that they are husband

and wife and, as such, are treated as a couple for purposes of determining eligibility and payment amount

under SSI.

Home Energy Assistance. A Federal Government block grant program that provides funds to States for

energy assistance (including weatherization) to low-income households. This assistance may be provided

by a variety of agencies (e.g., State or local welfare offices, community action agencies, special energy

offices, etc.) and may be known by a variety of names (e.g., Low Income Home Energy Assistance Program (LIHEAP), Project Safe, etc.).
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Household. A group of two or more individuals who use a single dwelling unit as primary quarters for

living and eating separate from other individuals’ living units.

Household of Another. An individual is considered to be living in the household of another when the

individual lives with others, does not own or rent the shelter, and does not pay a pro rata share of the

household’s food and shelter expenses. An individual who provides all of his/her own food, or lives in a

public assistance household or in noninstitutional care, is not considered to be living in the household of

another. An individual who is determined to be living in the household of another is considered to be

receiving in-kind support and maintenance from that household, and his/her SSI benefit is reduced by onethird of the FBR. 

Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWEs are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income. Infrequent means that it is not received more

than once in a calendar quarter from a single source. Irregular means that an individual could not reasonably expect to receive the income. In any given quarter up to $30 of earned and $60 of unearned infrequent

or irregular income is excluded.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food or shelter or something an individual can use to

obtain food or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food or shelter.

Interim Assistance Reimbursement (IAR). The process used for reimbursing for basic assistance provided by a State to an individual either while the individual’s application for SSI was pending or during

the period in which an individual’s SSI benefits were suspended. SSA may reimburse a State that has provided this assistance. The individual’s retroactive SSI payment is sent to the State as reimbursement if: (1)

the State has an agreement with SSA to participate in IAR, (2) the individual has given SSA written authorization to have his/her retroactive payment sent to the State as reimbursement, and (3) the individual is

found eligible for SSI benefits or has had his/her benefits reinstated for the same period of suspense. 

Under IAR, after States reimburse themselves from an individual’s retroactive benefit, they must forward

any remainder to the individual within 10 days.
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Living With. A required condition for parent-to-child and spouse-to-spouse deeming. Deeming of

income and resources occurs if an eligible child lives with his/her ineligible parent(s) or an eligible individual lives with his/her ineligible spouse. 

Maintenance-of-Effort. See “Passalong.”

Mandatory State Supplementation. See “State Supplementation.”

Means-Testing. The measuring of income and resources against specified amounts as eligibility factors

for certain assistance benefits. SSI is a means-tested benefit program.

Medicaid. The program authorized under title XIX of the Social Security Act, which provides medical

assistance to certain low-income individuals and families and certain disabled and medically needy individuals. Medicaid is administered by the States with support from the Federal Government in the form of

matching grants. The Federal Government provides guidelines to the States for formulating their programs. Because these guidelines afford great leeway, Medicaid programs vary widely among the States.

Medicaid Facility. A medical treatment facility such as a hospital, extended care facility, nursing home,

or intermediate care facility, where Medicaid pays more than 50 percent of the cost of a person’s care.

Medical Facility. An establishment that makes available some treatment or services in addition to food

and shelter to four or more persons who are not related to the proprietor.

New Entrant. An SSI recipient in the first month of SSI payment receipt.

Noncitizen. An individual who is not a United States citizen. Also referred to in welfare and immigration

law as an alien. (See “Alien Lawfully Admitted for Permanent Residence,” “Asylee,” “Parolee” and “Refugee.”)

Nonqualified Alien. A noncitizen who is not in a qualified alien category for SSI eligibility purposes. 

OASDI. The Old-Age, Survivors, and Disability Insurance programs established under title II of the

Social Security Act.

One-Third Reduction. The reduction of an individual’s SSI payment that occurs when an individual is

living in the household of another. Instead of determining the actual dollar value of in-kind support and

maintenance, one-third of the Federal benefit rate is counted as additional income to an individual living in

another person’s household for a full calendar month and receiving both food and shelter from the household.

Optional State Supplementation. See “State Supplementation.”

Overpayment. The payment of more than the amount due for any period, including any amounts of

Federally-administered State supplementary payments.

Parent. For SSI purposes, the natural mother or father of the child, or the person who legally adopted the

child, or the stepparent who lives in the same household as the child.

Parolee. A noncitizen, who appears to be inadmissible to the inspecting USCIS officer, but is allowed to

enter the United States under emergency humanitarian conditions or when the noncitizen’s entry is determined to be in the public interest. Parole does not constitute a formal admission to the United States and

confers temporary admission status only, requiring parolees to leave when the conditions supporting their

parole cease to exist.

Passalong. A requirement that States must meet in order to be eligible for Medicaid reimbursement. Any

State making supplementary payments (see “State Supplementation”) after June 30, 1977, must continue
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making such payments and must pass along any cost-of-living increase to the Federal benefit rate. Two

methods are available to ensure that cost-of-living increases are passed on to the recipients.

 • Total Expenditures Method—State expenditures for supplementary payments in the current calendar

year must at least equal expenditures in the preceding calendar year. If expenditures are less in the

current year (shortfall), the State must increase expenditures in the next calendar year by an amount at

least equal to the shortfall.

 • Payment Levels Method—States may not lower their supplementary payment for any of the living

arrangement categories below their adjusted March 1983 levels. The adjusted level is the State’s

March 1983 payment level minus that portion of the July 1983 increase in the Federal benefit rate that

was not attributable to the increase in the cost of living (i.e., $10.30 per individual and $15.40 per

couple).

Personal Needs Allowance. The amount allowed for an institutionalized recipient’s personal needs (currently $30). If an SSI recipient is in a Medicaid facility, the law requires that the SSI benefit be used only

for the recipient’s personal needs (i.e., that the institution cannot retain the benefit in repayment of the cost

of the individual’s care).

Plan for Achieving Self-Support (PASS). A plan that permits a disabled or blind SSI recipient to set

aside income (earned and/or unearned) and/or resources for a work goal. The income and resources set

aside under a PASS are used to pay for goods or services needed to reach that goal, such as education,

vocational training, starting a business, or purchasing work-related equipment. Income and resources set

aside under a PASS are excluded from SSI income and resources. SSA must approve an individual’s

PASS.

Population in the Social Security Area. The population comprised of (i) residents of the 50 States and

the District of Columbia (adjusted for net census undercount); (ii) civilian residents of Puerto Rico, the

Virgin Islands, Guam, American Samoa and the Northern Mariana Islands; (iii) Federal civilian employees

and persons in the Armed Forces abroad and their dependents; (iv) crew members of merchant vessels;

and (v) all other U.S. citizens abroad.

Presumptive Disability or Blindness. A finding that SSI payments may be made before SSA makes a

formal determination as to whether or not the individual is disabled or blind. The individual’s impairment

must be apparent and meet specified criteria. In addition, the individual must meet all other requirements

for eligibility. These payments may be made for no more than 6 months. The presumptive payments will

not be considered overpayments if SSA later finds that the individual is not blind or disabled.

Property Essential for Self-Support (PESS). The real and personal property used in a trade or business,

nonbusiness income-producing property and property used to produce goods or services essential to the

individual’s daily activities. PESS may be excluded from resources under certain conditions.

Proration of Benefits. The method of computing benefit amounts in months in which the individual reacquires eligibility after a month or more of ineligibility. In such months, an individual’s SSI benefit will be

paid according to the number of days in the month that he/she is eligible, beginning with the first day in

the month on which all eligibility requirements are met. In order to determine the benefit payable in a prorated month SSA counts the number of days an individual is eligible in the month. The amount of the individual’s regular monthly payment is multiplied by the number of days for which he/she is eligible for

benefits. That figure is divided by the number of days in the month for which the benefit is being determined. The resulting amount is the amount due for the prorated month. After 1996, proration for months

of initial eligibility was eliminated.
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Public Educational Institution. An institution that is operated by or controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county for the primary purpose of providing educational or vocational training. 

Public Emergency Shelter. A shelter for individuals whose homelessness poses a threat to their life or

health.

Public Institution. An institution that is operated by or controlled by the Federal Government, a State, or

a political subdivision of a State such as a city or county. 

Publicly Operated Community Residence. A facility that provides food and shelter and some other service such as social services, help with personal living activities, training in socialization and life skills, or

occasional or incidental medical or remedial care. In order to be publicly operated it must be operated or

controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county.

The facility must serve no more than 16 residents and must be located in a community setting.

Qualified Alien. An individual who is:

 • Lawfully admitted for permanent residence under the Immigration and Nationality Act (INA);

 • A refugee under section 207 of the INA;

 • An asylee under section 208 of the INA;

 • A person whose deportation is withheld under section 243(h) of the INA as in effect prior to April 1,

1997, or whose removal has been withheld under section 241(b)(3) of the INA;

 • A parolee under section 212(d)(5) of the INA for at least one year;

 • A person granted conditional entry under section 203(a)(7) of the INA as in effect prior to

April 1, 1980;

 • A Cuban or Haitian entrant as defined by Federal statute, including Section 501(e) of the Refugee

Education Assistance Act of 1980;

 — Former parolees and other aliens who became residents under the Cuban Adjustment Act of

1966;

 — Aliens who became permanent residents under the Nicaraguan and Central American Relief Act;

or

 — Aliens who became permanent residents under the Haitian Refugee Immigration Fairness Act.

 • A certain alien, or an alien parent of a child, or an alien child of a parent who:

 — Has been battered or subjected to extreme cruelty in the United States by a spouse, parent, or certain other family members the alien, parent and/or child lived with;

 — Is not living in the same household with the abusive individual;

 — Has been determined to need SSI because of this abuse; and

 — Has a determination from the USCIS for a certain change in status.

Qualifying Quarter of Earnings. Credit for a requisite amount of earnings assigned to a calendar quarter

for the purpose of determining the SSI eligibility of a lawfully admitted permanent resident.
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Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2005, a worker receives one quarter of coverage (up to four a year) for each $920 of annual earnings reported from employment or self-employment. This dollar amount is subject to annual automatic

increases in proportion to increases in average earnings.

Recipient. A person who has been awarded SSI payments based on an evaluation of his/her own countable income and resources, age, and disability status.

Reconsideration. The first step in the administrative review process if an individual is dissatisfied with

SSA’s initial determination.

Redetermination. A periodic review of eligibility for SSI recipients to assure that requirements for eligibility continue to be met and that payment levels are in the proper amount. Income, resources, living

arrangements and other factors are reviewed. The redetermination process does not review the determination of disability. 

Refugee. A noncitizen outside of his/her country of nationality who is unable or unwilling to return to his/

her country of nationality or to seek the protection of that country because of persecution (or a wellfounded fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particular social group or political opinion. Unlike asylees, refugees apply for and receive this status prior to

entry into the United States.

Relocation Assistance. A type of assistance provided to persons displaced by projects that acquire real

property. Examples of types of reimbursement, allowances, and help provided are:

 • Moving expenses,

 • Reimbursement for losses of tangible property,

 • Displacement allowances,

 • Amounts required to replace a dwelling which exceed the agency’s acquisition cost for the prior

dwelling,

 • Rental expenses for displaced tenants,

 • Amounts for down payments on replacement housing for tenants who decide to buy,

 • Mortgage insurance through Federal programs with waiver of requirements that borrowers must usually meet, and

 • Replacement housing.

Representative Payee. A person who receives SSI payments on behalf of an SSI recipient. SSA will pay

benefits to a representative payee on behalf of an individual 18 years old or older when it appears that such

method of payment will be in the interest of the individual. A representative payee will be appointed if the

individual is legally incompetent or mentally or physically incapable of managing or directing the management of his/her benefits. Also, in general, if the individual is under the age of 18, a representative

payee will be appointed.

Resident of a Public Institution. An individual who can receive substantially all of his/her food and

shelter while living in a public institution is considered a resident of the public institution. Generally, an

individual who is a resident of a public institution throughout a month is ineligible for SSI.
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Resident of the United States. A person who has established an actual dwelling place within the geographical limits of the United States with the intent to continue to live in the United States. (See “United

States.”)

Resource. The cash or other liquid assets or any real or personal property of an individual (or his/her

spouse, if any) that he/she could use or could convert to cash to be used for his/her support and maintenance.

Retroactive Payments. The SSI payments made in a month later than the month or months in which they

were due. Also referred to as “past-due” benefits.

Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the

current month’s countable income), no payment is due and none is paid. If the individual is eligible based

on the current month’s factors, payment is computed. The benefit for a month is generally based on the

countable income from the second month before the current month. The basic formula is to subtract the

countable income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.

Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Sponsor. An individual who has signed an affidavit of support for a noncitizen entering the country.

State Supplementation. The payments made by a State or one of its political subdivisions to aged, blind,

or disabled individuals.

 • Administration—The governmental unit responsible for administering State supplementary payments

may be either a State or local agency or SSA. Under State administration, the State must absorb both

program benefits and administrative costs. Under Federal administration, the State is responsible for

the program benefits and, as of January 1, 2005, pays a $9.06 administrative fee for each benefit paid.

 • Mandatory Supplementation—The supplementary payments that are made only to beneficiaries who

were converted to the SSI program from former State assistance programs at the inception of the SSI

program. Mandatory minimum State supplementary payments are required to maintain the December

1972 payment levels that these beneficiaries received under the former State assistance programs.

States are required to provide the supplementation to maintain their Federal matching funds for Medicaid.

 • Optional Supplementation—The payments made by States to help persons meet needs not fully covered by Federal SSI benefits. The State determines whether it will make a payment, to whom, and in

what amount. These supplements, paid on a regular monthly basis, are intended to cover such items as

food, shelter, clothing, utilities, and other daily necessities. Some States provide optional supplementary payments to all persons eligible for SSI benefits, while others may limit them to certain SSI

recipients such as the blind or residents of domiciliary-care facilities, or they may extend payments to

persons ineligible for SSI because of SSI income.
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Statutory Blindness. See “Blind.”

Student. An unmarried blind or disabled individual who is not the head of a household, but is under

age 22 and regularly attending school. Effective April 2005, a blind or disabled individual who is under

age 22 and regularly attending school.

Student Earned Income Exclusion (SEIE). An earned income exclusion for a student with certain limitations established by regulations. For 2005, up to $1,410 earned income in a month, but no more than

$5,670 per year, may be excluded.

Substantial Gainful Activity (SGA). The level of work activity used to establish disability. A finding of

disability requires that a person be unable to engage in SGA. For 2005, a person who is not statutorily

blind and is earning more than $830 a month (net of impairment-related work expenses) is ordinarily considered to be engaging in substantial gainful activity.

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months

results in a termination of the SSI record. (Once a record is terminated, reapplication is necessary.)

TANF. See “Temporary Assistance for Needy Families (TANF).”

Temporary Absence. An individual’s physical move from his/her permanent place of residence that does

not constitute a change in living arrangement. In general, a temporary absence is an absence from a permanent residence which is not intended to, and does not, exceed a full calendar month. 

Temporary Assistance for Needy Families (TANF). The State grant program of assistance for needy

families established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

(Public Law 104-193). TANF replaced the Aid to Families with Dependent Children program.

Termination. For an individual, cessation of benefits, which can occur for a number of reasons, including

death, medical improvement, or a period of suspension lasting longer than 12 months. 

Terminations. As used in section IV, the net reduction (after accounting for new entrants) in the number

of SSI recipients in current-payment status during a period. 

Trusts. A legal arrangement involving property and ownership interests. Generally, property held in a

trust will be considered a resource for SSI purposes if the assets of the trust could be used for the benefit of

the individual or spouse. 

Unearned Income. The income that is not earned income. Unearned income may be in cash or in-kind.

Some examples of unearned income are:

 • Annuities, pensions, and other periodic payments;

 • Retirement and disability benefits;

 • Veterans’, workers’ and unemployment compensation;

 • Alimony and support payments;

 • Dividends, interest and certain royalties; and

 • Rents. 
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2005 SSI Annual Report

United States. For purposes of the SSI program, the United States consists of the 50 States, District of

Columbia and the Northern Mariana Islands.

Vocational Rehabilitation (VR). The process of restoring individuals with disabilities to full capabilities.

VR services are designed to provide an individual with the training or other services that are needed to

return to work, begin working or to enter a new line of work.

Windfall Offset. A provision to prevent a person from receiving monthly SSI and OASDI benefits in

excess of the total amount which would have been paid if the OASDI benefits had been paid when they

were due rather than retroactively. 

Work Incentives. Provisions in the SSI program that are intended to act as incentives for disabled or

blind individuals to work. Examples of work incentives under the SSI program are:

 • Earned income exclusions,

 • Impairment related work expenses,

 • Blind work expenses,

 • PASS, and

 • Section 1619 benefits.

1

SOCIAL SECURITY ADVISORY BOARD 

STATEMENT ON THE SUPPLEMENTAL 

SECURITY INCOME PROGRAM 

Public Law 104-193 requires that members of the Social Security Advisory Board be 

given an opportunity, either individually or jointly, to include their views in the Social 

Security Administration’s annual report to the President and the Congress on the 

Supplemental Security Income (SSI) program. 

We appreciate the opportunity to present our views on this important program, and 

we have asked the Social Security Administration to include the following statement of 

views in this year’s annual report. 

VIEWS OF THE BOARD REGARDING THE SSI PROGRAM 

In presenting our views this year, we would like to comment on three aspects of the 

SSI program: work incentives, wage reporting, and simplification of the program’s 

provisions on living arrangements and in-kind support and maintenance. 

ENCOURAGING SSI BENEFICIARIES TO WORK 

In our 2003 report on the definition of disability1

, we discussed bringing the halfcentury old disability program up to date with the changes that have occurred in the 

economy, in medicine, in rehabilitative technology, and in attitudes toward disability and 

the disabled. The SSI program uses the same definition of disability as the disability 

insurance program and has many other elements in common, including the need for 

timely and accurate maintenance of earnings reports, discussed below. 

SSI has some different work incentives, however, and attention should be paid to 

updating them as well. The SSI program was designed with more generous disregards 

for income, especially earned income, than the old assistance programs it replaced. The 

report of the House Ways and Means Committee on the original legislation described the 

program as providing incentives and opportunities for those able to work that would 

enable them to escape dependency. When it was enacted in 1972, the program allowed 

$20 of income from any source and earnings of $65 per month without any effect on 

benefits. Earnings above that amount reduced benefits by $1 for every $2 earned. These 

amounts, referred to as general income and earned income disregards, were not indexed 

and have not changed since 1972. If they had kept pace with inflation, they would now 

be about $90 and $290 per month, allowing disabled beneficiaries to earn up to $380 per 

month without reducing their benefits. 

 

1 The Social Security Definition of Disability, October 2003, available on our website, www.ssab.gov. 
2

For the last 15 years, the percentage of all disabled SSI beneficiaries who work has 

been fairly stable, fluctuating around 6 percent. 

Percentage of SSID Beneficiaries Who Work, 

1988-2003

0%

1%

2%

3%

4%

5%

6%

7%

8%

1988

198919901991199219931994

199519961997199819992000200120022003

Younger beneficiaries are more likely to work than older ones. 

Percentage of SSID Beneficiaries Who Worked, 

By Age Group, December 2003

0%

2%

4%

6%

8%

10%

12%

14%

16%

18-21 22-29 30-39 40-49 50-59 60-64
3

The amount of their earnings varies widely, and a quarter of those who work have 

earnings below $65 per month. 

Earnings of SSID Beneficiaries Who Worked, 

December 2003

$1,000 or more

14%

$200-$499

24%

$66-$99

5%

$65 or less

24%

$500-$999

20%

$100-$199

13%

There are also some interesting differences by diagnosis. 

Percentage Distribution of SSID Beneficiaries

 Who Worked, December 2003

Other 

26%

Other mental

23%

Nervous 

system and 

sense organs

9%

Mental 

retardation

42%

Two-thirds of the workers have a mental disorder, including 42 percent with a 

diagnosis of mental retardation. By comparison, 56 percent of all disabled SSI 

beneficiaries have a mental disorder, including 22 percent with mental retardation. 
4

In addition to the disregards discussed above, there are other work incentives that are 

used by some SSI beneficiaries who work, including: 

• Continuation of Medicaid eligibility – Medicaid eligibility will usually 

continue even if beneficiaries earn too much to receive SSI payments, if they 

cannot afford similar medical care and depend on Medicaid in order to work. 

• Student earned income exclusion – For students under age 22 who are 

regularly attending school and neither married nor the head of a household, up to 

$1,410 of earned income per month, to a maximum of $5,670 per year, is 

excluded from countable income. 

• Work expenses of the blind – Any income earned by a blind individual 

that is used to meet expenses needed to earn that income is excluded from 

countable income. 

• Plan for achieving self-support (PASS) – A PASS allows a disabled or 

blind individual to set aside income and resources to get a specific type of job or 

to start a business. The income and resources that are set aside are excluded 

under the SSI income and resource tests. 

• Expedited reinstatement of benefits – There is a 60-month period in 

which a former beneficiary may request reinstatement of benefits without filing a 

new application. 

• Impairment-related work expense exclusion – The cost of certain 

impairment-related services and items that a beneficiary needs in order to work 

are excluded from countable income for SSI purposes and are deducted from 

earnings when determining if work is substantial. 

• Continued payment under a vocational rehabilitation program –

Beneficiaries who medically recover while participating in a vocational 

rehabilitation program that is likely to lead to the beneficiary becoming selfsupporting may continue to receive benefits until the program ends. 

While SSI work incentives can be complex, beneficiaries’ decisions about working 

are much more complex, due to the interactions of multiple means-tested programs from 

which they may be receiving benefits. SSI beneficiaries face potential reductions of 

benefits not only from SSI but also from any other transfer programs, plus the regular 

assortment of federal, state, and local taxes, as well as the potential loss of medical 

insurance. This combination is equivalent to a high cumulative marginal tax rate for 

individuals receiving benefits from multiple programs. A 1996 article computed that the 

rate of income reduction for an additional dollar earned could be as high as 89 cents for 

an SSI recipient who also qualifies for the Earned Income Tax Credit and Food Stamps. 
5

Given the complexity of the work incentives involved, it is impossible to predict what 

the effect and the costs would be of increasing the 1972 income disregards. SSA is 

currently conducting a demonstration project that should shed some additional light on 

these questions. Known as Work Incentives for Participants in the Florida Freedom 

Initiative, it began in March 2004 and will end by March 2007. As part of this 

demonstration, SSI beneficiaries who participate will have an earned income disregard of 

$280 (four times the current law disregard). Work incentives are an important aspect of 

updating the SSI disability program, and we look forward to learning the results of this 

demonstration project. Increasing work incentives would be expensive, but if it is done 

in the context of a larger reform of the program, including living arrangements and inkind support (as discussed later in this statement) and potentially other simplifications, 

there might be sufficient savings to offset the additional costs. 

WAGE REPORTING

In some of our previous statements on the SSI program, we discussed wage reporting 

as it related to program integrity and the administrative aspects of overpayments. We 

now want to focus on wage reporting and overpayments as an obstacle to increasing the 

amount of work by SSI beneficiaries. 

Wage reporting has been a perennial problem for the SSI program. Earnings above 

$65 per month can affect beneficiaries’ payments. For children and for beneficiaries with 

ineligible spouses, a portion of the parents’ or spouses’ earnings are deemed to be 

available to the beneficiary, affecting payment amounts. SSA quality reviews have found 

wages to be a leading cause of SSI overpayments for over a decade. 

SSI payments are computed using a system known as “retrospective monthly 

accounting.” This means that they are based on known circumstances for a past month. 

Payments are computed for each month, and the payment for a month is usually based on 

the beneficiary’s countable income (including deemed income) from the second month 

before the current month. If earnings are reported promptly and recorded in a timely and 

accurate manner, they should not result in overpayments. For example, the payment that 

is made at the beginning of June is generally based on the income for April. If the 

beneficiary has an increase or decrease in his income in April, he or she can report it at 

the start of May and should receive the correct payment in June. 

Retrospective accounting may make it easier for the agency to administer the 

program, but it does not serve the best interests of beneficiaries who live at or near the 

poverty level and are concerned with meeting their current needs. Retrospective 

accounting makes budget planning difficult for beneficiaries even if all the payments are 

accurate. Take the case of a beneficiary who goes to work in April and, quite correctly, 

receives a full payment in April. He has some extra money, which he is likely to spend to 

meet his current needs. But if he is not working in June, he not only does not have 

wages, he also gets a smaller benefit and may be unable to meet his needs. In the balance 

of this statement, we will address the current system, but we recommend that SSA 
6

consider replacing retrospective accounting with a system that better serves the needs of 

beneficiaries. 

SSA directs all SSI beneficiaries and their representative payees to report when the 

beneficiary (or parent or ineligible spouse) starts working or stops working or when the 

amount of monthly wages changes. However, this is frequently not done. We have also 

often heard credible testimony that some beneficiaries report accurately and timely, but 

their wages are not recorded accurately or timely. Both failure to report wages and 

failure to record them can cause overpayments. A representative of the Consortium for 

Citizens with Disabilities told the Ways and Means Committee, “This is a nightmare to 

people with extremely low incomes and becomes a major barrier to future work.” A 

study done for the Ticket to Work Advisory Panel in 2003 reported extensive anecdotal 

evidence on the work disincentive caused by overpayments and the fear of overpayments. 

A staff member for an agency that provides legal services to beneficiaries stated that it is 

common for working beneficiaries who receive an overpayment notice to stop working. 

Another study done for the Ticket to Work Advisory Panel in 2003 reported, “Stories 

circulate among beneficiaries of people who have been required to repay excess benefits 

as much as a year after the overpayments were made, and who do not have the funds to 

do so. However often or infrequently this happens, the stories persist and offer a serious 

disincentive to the much larger number of people who hear them and learn to fear being 

caught in this situation.” 

The Commissioner of Social Security discussed this issue at a 2003 hearing of the 

Social Security Subcommittee of the House Ways and Means Committee. 

Representative Hayworth said, “One concern of many beneficiaries about returning to 

work is that if they report their earnings to SSA, the agency may not accurately keep 

track of them, thus leading to overpayments. This fear of having to repay potentially 

hundreds or thousands of dollars in overpayments is a real concern that prevents many 

individuals with disabilities from taking that step to return to work.” Commissioner 

Barnhart replied, “That has been a huge issue in the agency. Quite frankly, the lag time 

between individuals willingly reporting income that they are earning and it getting posted 

into their accounts so we know we need to make adjustments in benefits . . . does result in 

these erroneous overpayments, sometimes after a year or two, and the individual is 

required to pay that back through overpayment collection efforts unless we grant a 

waiver. I would say that the major factor contributing to that delay has been a need for 

additional resources.” 

There are numerous obstacles, besides agency resources, to eliminating overpayments 

due to earnings. The study for the Ticket to Work Advisory Panel enumerated them: 

“From SSA’s perspective, complex program rules governing the treatment of earnings, 

earnings definitions, evidence requirements, monthly accounting, limited automation, . . . 

diffused responsibility, and competing priorities all contribute to untimely processing of 

wage information. From the beneficiary perspective, understanding reporting and 

evidence requirements and work incentive provisions, accurately estimating monthly 

income, and taking appropriate follow-up actions represent significant challenges to the 

timely reporting of wage information.” 
7

A small pilot conducted recently by SSA offers a glimmer of hope for at least 

reducing the incorrect SSI payments caused by wages. Between May and December 

2003, some 1,300 volunteers participated in a pilot using a voice recognition/touchtone 

telephone reporting system. They used the telephone to report wages, and their reports 

went directly into SSA’s computer system, without any further work by SSA employees. 

The evaluation of the pilot found that the wage reports made in this way were much more 

accurate than the wage estimates that were already on SSA’s records. The evaluation 

estimated that the new system would prevent $200 in annual SSI overpayments and $400 

in annual SSI underpayments for every person who reports wages monthly. There would 

be additional administrative savings from avoiding the work involved in processing wage 

alerts, overpayments, and underpayments. The total savings would exceed the $2 million 

to $3 million annual cost of making the system available if only 3,300 to 4,900 

beneficiaries and deemors used it. The major hurdle to fully implementing the system is 

making it simple to use, while still keeping it secure. The pilot used a password 

authentication system that participants found difficult. Half the volunteers were unable to 

use it. The 1,300 who used it needed considerable help from their local field office, and 

15 percent reported for only one or two months. Field offices involved in the pilot stated 

that participants who dropped out of the pilot found it too difficult or were afraid that 

they would make a mistake that would reduce their SSI check. 

SSA is committed to a second pilot, in which participants will be able to use 

knowledge-based authentication, rather than a password system. That pilot is still being 

planned. We encourage SSA to move ahead quickly. When the system is fully 

functional, the agency should consider making its use for wage reporting mandatory. 

Even if every working SSI beneficiary or deemor reported wages monthly, SSA’s 

stewardship obligations would require it to verify the amounts that had been reported. In 

its field visits, the Board has been told that the current wage-verification system is laborintensive, taking the time of employers, beneficiaries, and SSA staff. It requires 

beneficiaries or deemors to save all pay stubs for review by SSA staff. This can mean 

that SSA staff must review up to 52 pay stubs per year (or more for workers with more 

than one employer) and calculate the exact amount paid each month. (Some offices do 

this monthly or quarterly, but the amount of work over a year is still the same.) If the 

worker has not kept the pay stubs, SSA asks the employer to review wage records and 

report the amount paid per month. The employers’ compliance is voluntary, but most do 

provide the information. 

If a reliable monthly wage reporting system were implemented, it would seem 

feasible to simplify the verification system to one that would simply compare the sum of 

the monthly wage reports to the annual report from the employer for tax purposes. If the 

two matched, within some tolerance to be established, the monthly reports could be 

accepted as accurate, and no further verification would be required. An SSA report in 

2000 on SSI program simplification estimated that annual wage verification could save 

more than 800 workyears annually. 
8

LIVING ARRANGEMENTS AND IN-KIND SUPPORT 

In previous reports and testimony, the Board has stressed the need to simplify the SSI 

program. Some progress has been made in this area. SSA worked with the Congress to 

include some simplification provisions in the Social Security Protection Act of 2004. 

These included exclusion from countable income of small amounts of interest and 

dividends, easing the rules on infrequent unearned income, preventing triple counting of 

income in some circumstances, and provisions to help military families. SSA has also 

made some regulatory changes dealing with resources and non-cash income. All of these 

changes are welcome accomplishments, but much remains to be done. 

One of the areas most in need of simplification is the set of rules that apply when an 

applicant or recipient lives in the household of another or receives other in-kind support. 

Program rules in this area are difficult to administer, are a leading cause of incorrect 

payments, raise questions of equity, and make the program more vulnerable to fraud and 

abuse. The Government Accountability Office has also drawn attention to the need for 

simplification, stating in 2002: “A fundamental cause of SSI overpayments are the 

complex rules governing SSI eligibility. However, SSA has done little to make the 

program less complex and error prone, especially in regard to living arrangement 

policies. . . . [L]ongstanding SSI payment errors and high administrative costs suggest the 

need for SSA to move forward in addressing program design issues and devising costeffective simplification options.” 

Living arrangements and in-kind support are major factors in determining the amount 

of SSI benefits payable to a beneficiary. In-kind support is unearned income in the form 

of food or shelter that is paid for by someone else. The agency must go through a process 

of determining these issues in every claim and redetermination. Claims representatives 

make these determinations by going through a series of questions that is summarized on a 

two-page flowchart in SSA’s program operations manual. The decision path can lead 

through a variety of issues, such as home ownership, rental liability, contributions to 

household expenses, receipt of public assistance by other household members, and 

separate purchase or consumption of food. Claimants who are found to be living in the 

household of another and receiving food and shelter from others in the household are 

subject to the one-third reduction rule, which means that their Federal benefit rate (FBR) 

is reduced by one-third. For claimants who are not subject to the one-third reduction but 

who are receiving in-kind support, the value of that support must be determined. The 

presumed (and maximum) value of in-kind support is one-third of the full FBR plus $20. 

(This would result in a benefit payment equal to that under the one-third reduction.) But 

the presumed value can be contested. If claimants can show that the actual value of food 

and/or shelter that they receive is less, the agency will use the actual value in computing 

the benefit, resulting in a higher payment. 

If the paragraph above sounds complicated, the actual development required by cases 

is much more complicated. The SSA operating manual has the equivalent of 250 singlespaced typed pages of instructions on living arrangements and in-kind support and seems 
9

to try to parse every possible combination and permutation. SSA’s Office of the 

Inspector General (OIG) issued an evaluation report in 2001 on these factors. The report 

stated, “Procedures for determining an individual’s [living arrangements] and the value of 

[in-kind support] are difficult to administer and can result in SSI claims being improperly 

developed. These difficulties result from complex and difficult to verify eligibility 

requirements.” As part of its study, OIG sent a questionnaire to a sample of field offices 

soliciting their opinions on living-arrangements and in-kind support. The answers 

reinforce what the Board has been told on its visits to field offices. For example: 

• The manual section on in-kind support “is filled with complicated 

computations for situations that rarely occur.” 

• “Like most of the SSI program, a title XVI [claims representative] needs 

to be a Certified Public Accountant, insurance agent, financial advisor, realtor, 

lawyer and social worker.” 

• “The whole concept is too complicated and gets more so . . . .” 

• “The rules are complicated and difficult for [claims representatives] to 

agree on, let alone for an applicant with limited education and/or faculties to 

understand.” 

Given this complexity, it is not surprising that living arrangements and in-kind 

support rank high among factors causing incorrect SSI payments. The most recent report 

on SSI payment accuracy shows that in-kind support ranked third as a factor in 

overpayments, accounting for $187 million. In-kind support and living arrangements 

ranked second and third as factors in underpayments, accounting for $93.5 million and 

$82.5 million, respectively. 

SSA’s policies and procedures on living arrangements and in-kind support also leave 

the program vulnerable to fraud and abuse. The OIG report mentioned above said, “We 

determined that SSA has no effective method to verify such key factors as household size 

and composition, rental liability and marital status. As a result, SSI applicants may 

qualify for benefits or cause payment errors by providing incorrect [living arrangements 

and in-kind support] information.” Again, responses to OIG’s questionnaire to field 

offices are in accord with what the Board has heard on its field visits: 

• “So much of the information used to make determinations (such as 

household expenses, separate purchase of food, rental subsidy) is based on 

allegation and corroboration, which match the allegation, but do not match 

reality.” 

• “The [living arrangements/in-kind support] process is weak because most 

allegations . . . (such as household expenses, rental subsidy, separate purchase of 

food, sharing, etc.) are verified using a corroborative statement from someone 

known to the applicant and who may have a motivation to be less than objective 

and truthful. There is no practical way to verify these issues.” 

• “The [operations manual] criteria are set up in such a way that it begs for 

individuals to make fraudulent statements. Once an individual is aware of the 

rules, they know how to answer the questions in order to get a higher benefit.” 
10

• “A legal advocacy group in our area routinely coaches applicants and 

recipients on how to answer questions so that they will receive the most 

advantageous [living arrangements].” 

• “[T]he public is more educated on what to say. Clearly a lot of applicants 

have been schooled before coming to us.” 

And all the questioning and development, flawed though it may be, in the end has 

little effect. As of December 2003, only 4.1 percent of SSI beneficiaries had the onethird reduction applied to their benefits, and only another 3.7 percent were charged with 

in-kind support. 

Current policies also raise questions of equity. Other program rules assume that 

people living together have certain economies of scale and do not require as much for 

their current living expenses as the same number of people living separately. That is why 

couples, with both partners receiving SSI, receive a benefit rate equal to 150 percent of 

the rate for individuals. The same assumption, however, is not applied to non-marriedcouple SSI recipients who share a household. In fact, in a household composed of SSI 

recipients who are not married to each other, each is presumed to be sharing household 

expenses and is eligible for the full individual rate. A recent analysis found that at least 

one in five SSI beneficiaries lives with at least one other SSI recipient who is not a 

spouse. The study also found that the prevalence of poverty among married SSI couples 

is higher than among non-couple SSI beneficiaries living in the same household. 

In short, current policy and procedures on living arrangements and in-kind support 

are not only administratively cumbersome but also contribute significantly to inaccurate 

payments, cause vulnerability to fraud and abuse, and are part of a system of dubious 

equity. Programmatic changes always involve trade-offs, but not necessarily in the form 

of higher costs. Ways to reduce the complexity of the SSI rules for living arrangements 

and in-kind support have been identified in the past and merit careful consideration. 

In December 2000, for example, SSA published Simplifying the Supplemental 

Security Income Program: Challenges and Opportunities, which examined living 

arrangements and in-kind support, among other aspects of the SSI program. The report 

outlined six potential methods to simplify the SSI program. All of the methods examined 

had advantages and disadvantages. The option we find most attractive would eliminate 

the current rules for living arrangements and in-kind support and would simply reduce 

benefits by a fixed percentage for adult SSI beneficiaries living with another adult.2

 It 

would be possible to develop a cost-neutral option for such reductions. 

It might also be possible to shape an option that would provide offsetting savings that 

would make other program improvements possible. A similar but more substantial 

change was suggested by one of the participants in the Supplemental Security Income 

Modernization Project in 1992. That suggestion, by Michael Stern, one of the panel of 

 

2

 The reason for excluding SSI child beneficiaries is that the law currently recognizes parental financial 

responsibility by deeming parental income to children. In that way, their benefits are already adjusted for 

the support available from parents. 
11

experts who studied the SSI program, would establish a payment level for any SSI 

recipient living with another adult at the rate of 75 percent of the payment for an 

individual living alone. (This would be equal to the rate paid to a member of an SSI 

couple.) Reductions for in-kind support would be eliminated. Current beneficiaries 

would have their benefit levels protected. There are no current estimates of savings from 

implementing this proposal. The original Stern proposal would use the savings (then 

estimated at $5 billion over five years) to increase staffing levels and to increase the 

overall level of SSI benefits, increasing them toward the Federal poverty level. Instead of 

doing that, it would be possible to use savings toward making other program 

improvements possible, such as increasing work incentives, as discussed above in this 

statement. 

Making such a change as recommended by either option is not a simple matter and 

would require legislative change by Congress. If it were simple, it would have been done 

long ago. Some beneficiaries (those now charged with in-kind support) would have their 

benefits increased, but more (non-couple beneficiaries now sharing living quarters) 

would have them reduced. On the other hand, those who would gain would most likely 

be those in greater need. SSI beneficiaries who live alone are more likely to be in 

poverty than those who live with others. It would be possible to design methods to ease 

the transition for those whose benefits would be reduced, for example by making 

reductions effective only for new claims or for new claims and for current beneficiaries 

whose living arrangements change. To simply achieve cost-neutrality, the proposal could 

be designed to have a quite modest impact on new beneficiaries. A larger impact would 

be necessary if the change were to also generate savings that could be used to finance 

improvements in other aspects of the program, such as work incentives. 

We encourage SSA to continue its study of simplifying rules for living arrangements 

and in-kind support and to further examine the distributive effects of making such a 

change. We believe that this is an area that deserves congressional attention. Replacing 

current rules with an approach that is much simpler would enhance payment accuracy, 

improve program integrity, increase equity among beneficiaries, reduce administrative 

burdens, and make the program easier for beneficiaries to understand. 

Hal Daub 

Chairman 

Dorcas R. Hardy Martha Keys 

David Podoff Sylvester J. Schieber