Annual Report of the

Supplemental Security Income Program

Social Security Administration

May 2003
.
SOCIAL SECURITY

The Commissioner

May 30, 2003

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 2003 Annual Report of the Supplemental Security

Income Program (the seventh 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 seventh of such reports, and following are some of 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 2003, 6.5 million individuals

received monthly Federal SSI payments

averaging $381 versus 6.4 million with an

average payment of $374 in January 2002.

 • Federal expenditures for cash payments

under the SSI program during calendar

year 2002 totaled $31.6 billion, and the

cost of administering the SSI program in

fiscal year 2002 was $2.6 billion. The

equivalent 2001 amounts were $30.5 billion and $2.4 billion, respectively.

 • In January 2003, the General Accounting

Office (GAO) took the SSI program off its

list of programs at high risk for abuse,

mismanagement, and overpayment. The

SSI program had been included in GAO’s

list since 1997.

 • The Ticket to Work and Self-Sufficiency program, established to provide disabled beneficiaries with

vocational rehabilitation, employment, and other support services, was introduced in 33 States and the

District of Columbia in 2002 and will be in operation nationwide by January 2004.

Major Findings of the Report

 • By 2027, the end of 25-year projection period, the Federal SSI recipient population is estimated to

reach 8.4 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 slightly increase.

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

level at 2.2 percent in 2002, and is projected to grow slightly to 2.33 percent of the population by

2027. 

Disabled 65

or older

8%

Aged

13%

Disabled

under 18

17%

Disabled

18-64

62%

 SSI Federal Payments, Calendar Year 2002

$31.6 billion
 • Federal expenditures for SSI payments in calendar year 2003 are estimated to increase by $1.5 billion

to $33.1 billion, an increase of 4.7 percent from 2002 levels.

 • In constant 2003 dollars, Federal expenditures for SSI payments are projected to increase to $42.7 billion in 2027, 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 0.30 percent of GDP in 2002 to 0.25 percent of GDP by

2027. 
(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2002 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

C. CURRENT ISSUES FACING THE SSI PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

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

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . 5

A. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

B. THE BASIC PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

D. ASSISTANCE OF LAST RESORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1. Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

3. Filing for Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

4. Eligibility Issues for Residents of Public Institutions or Medical Facilities . . . . . . . . . . . . 10

5. Personal Needs Allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

6. Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

a. Spouse-to-Spouse Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

b. Parent-to-Child Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

c. Sponsor-to-Alien Deeming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 12

1. Earned Income Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2. Impairment-Related Work Expense Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3. Work Expenses of the Blind Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

4. Student Earned Income Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

5. Plan for Achieving Self-Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6. Special Provisions for Disabled People Who Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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

8. Expedited Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

F. ADMINISTRATION OF THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

1. Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

2. Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3. Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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

6. Attorney Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2. Mandatory State Supplementary Payment Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3. Administration of State Supplementary Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4. Passalong Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
(VIII)

H. COORDINATION WITH OTHER PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2003-27 . . . . . . . . . 23

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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 Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

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 Resulting in Nonpayment of Benefits for False or Misleading Statements . . . 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

c. Transfer-of-Assets Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . . . . . . . 66

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

9. State Supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

10. Overpayment Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
(IX)

C. HISTORICAL ALLOWANCE DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA 82

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 89

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . 91

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 94

1. Program Participation Data from the Supplemental Security Record (SSR). . . . . . . . . . . . 94

2. Program Participation Data from the Survey of Income and Program Participation (SIPP) 95

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

1. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

a. Analyses Using SSA’s Model of Financial Eligibility for SSI. . . . . . . . . . . . . . . . . . . . . 96

b. National Survey of Children with Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

c. Evaluation of the State Partnership Initiative Return-to-Work Demonstrations . . . . . . . 96

d. Evaluation of the Ticket to Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

2. Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

III.H1 SSI State Supplementation and Coordination with Other Programs. . . . . . . . . . . . . . . . . . . . . 22

IV.A1 Historical and Estimated Population in the Social Security Area as Projected for the 

Intermediate Assumptions of the 2003 OASDI Trustees Report, as of July 1, 1974-2027. . . . 25

IV.A2 Social Security Cost-of-Living Adjustments and Federal Benefit Rates Estimated on the 

Basis of the Intermediate Assumptions of the 2003 OASDI Trustees Report, 1974-2027 . . . . 26

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2027 . . . . . . . . . . . . . . . . . . 28

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2027. . . . . . . . . . . . . . . . . . 30

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2027 . . . . . . . 32

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

Calendar Years 1974-2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2027 . . . . . 34

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2027 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, 1975-2027 . . . . . . . . . . . . 37

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

in Current-Payment Status as of December, 1974-2027 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

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

as of December, 1974-2027. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2003 . . . . . . . . . . . . . . . . . . . 41

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2003 . . . . . . . . . . . . . . . . . . . . . 42

IV.C3 SSI Federal Payments in Constant 2003 Dollars, Calendar Years 1974-2027 . . . . . . . . . . . . . 44

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

Calendar Years 1974-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2002 . . . . . . . . . 45

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2027. . . . . . . . . . . . . . . 47

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
(XII)

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

December, 1987-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

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

Participating in Other Work Incentives as of December, 1990-2002 . . . . . . . . . . . . . . . . . . . . 91

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

Recipients, as of December, 1987-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2002 . . . . . . . 93

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

Participation in Selected Programs Based on SSA Administrative Records, 

December, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

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

Current-Payment Status with Participation in Selected Programs Based on Data 

Collected Under Wave 12 of the 1996 Survey of Income and Program Participation, 

December, 1999. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1980-2030 . . . . . . 29

IV.B2 SSI Federally-Administered New Entrants by Age Group, Calendar Years 1980-2030. . . . . . 31

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1980-2030 . . . . . . 35

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

as of December, 1980-2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, 1980-2030 . . . . . . . 38

IV.C1 SSI Federal Payments, by Age Group, in Constant 2003 Dollars, Calendar Years 1980-2030 43

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1980-2030. . 46

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

December, 1987-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

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 2003 a monthly Federal cash payment of $552 ($829 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 seventh 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.
2003 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 forecasts.

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During 2002, 1.7 million individuals applied for SSI benefits based on blindness or disability, an

increase of 10 percent over 2001. An additional 0.1 million applied for SSI benefits based on age, an

increase of 6 percent from 2001.

 • On average during calendar year 2002, 6.5 million individuals received Federal SSI benefits on a

monthly basis. This group was composed of 1.2 million aged recipients, 5.2 million disabled recipients, and fewer than 0.1 million blind recipients. An estimated 7.3 million aged, blind, or disabled

individuals received at least 1 month’s Federal SSI benefit during the year.

 • Federal expenditures for cash payments under the SSI program during calendar year 2002 totaled

$31.6 billion.

 • On average during calendar year 2002, 2.5 million individuals received Federally-administered State

supplementary payments on a monthly basis. This group was composed of 0.6 million aged recipients, 1.8 million disabled recipients, and fewer than 0.05 million blind recipients. An estimated

2.8 million individuals received at least 1 month’s Federally-administered State supplementary payment during calendar year 2002.

 • State expenditures for Federally-administered supplements during calendar year 2002 totaled

$3.8 billion, excluding fees for Federal administration.

 • The percentage of SSI recipients participating in direct deposit has more than doubled since 1995,

reaching 51 percent in 2002.

 • The cost of administering the SSI program in fiscal year 2002 was $2.6 billion, which was roughly

7 percent of total Federally-administered SSI expenditures.

 • In January 2003, 6.8 million individuals received Federally-administered monthly SSI benefits averaging $411. Of these, 6.5 million received monthly Federal SSI payments averaging $381, and

2.4 million received monthly State supplementation payments averaging $128.

B. SSI LEGISLATION SINCE THE 2002 ANNUAL REPORT

Since the 2002 SSI Annual Report was transmitted to the President and Congress on May 30, 2002, there

have been no legislative changes enacted that would have a significant effect on Federal expenditures

made under the SSI program.

C. CURRENT ISSUES FACING THE SSI PROGRAM

For several years, the current issues section of this report has noted that the stewardship and integrity of

the SSI program are primary issues confronting SSA in its responsibility for administering the program.
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2003 SSI Annual Report

While stewardship and program integrity remain major issues facing SSI in 2003, progress has been made

toward achieving an immediate objective of President Bush’s Management Plan to reduce erroneous SSI

payments, a goal that SSA fully supports. SSA has a number of ongoing initiatives designed to prevent,

identify, and correct erroneous payments, and continues to seek additional ways to protect the integrity of

the SSI program. In last year’s report, virtually this entire current issues section described SSA’s program

integrity challenges and successes, and the Corrective Action Plan to improve SSA’s administration of the

SSI program.

Since last year’s report, SSA has implemented a number of initiatives in the Corrective Action Plan. For

example, pilot projects have begun in the areas of birth and death on-line verification, monthly wage

reporting using touch-tone and voice recognition technology, proof of identity to deter fraud in the disability process, and the use of credit bureau and other public database information to detect unreported income

and resources. SSA made a number of enhancements in the area of debt collection including the implementation of automated netting of SSI overpayments and underpayments and the use of credit bureaus and

tax refund offsets. Additionally, in order to measure progress of its program integrity initiatives, SSA has

developed a new quality assurance system, which will provide SSI program managers with timely data to

facilitate quality and accuracy. 

The ongoing initiatives and the Corrective Action Plan have paid off. In January 2003, the General

Accounting Office (GAO) took the SSI program off its list of programs at high risk for abuse, mismanagement, and overpayment. GAO stated that “SSA has made sufficient progress in improving the financial

integrity and management to warrant removing its high-risk designation.” GAO went on to say, however,

that “sustained management attention is necessary to improve SSI program integrity” and that “SSA also

has not addressed a key program vulnerability—program complexity—that is associated with SSI overpayments.”

Included in the President’s Fiscal Year 2004 Budget are several SSI proposals that would address program

integrity and simplification. One provision in the President’s Budget would require SSA to review 50 percent of all SSI disability and blindness allowance decisions made for individuals age 18 or older. The

reviews, which are virtually the same as reviews already required in the Social Security program, would

be conducted before payments are made. These preeffectuation reviews would make the SSI and Social

Security programs more consistent, and further improve integrity in the SSI program through increased

monitoring to ensure that only eligible individuals receive benefits. 

Additional provisions in the President’s Fiscal Year 2004 Budget would eliminate the need for counting

small amounts of interest and dividend income and income that is received irregularly or infrequently in

the SSI means test or benefit computation. These proposals would eliminate triple counting of certain

income under retrospective accounting. The proposals also would provide that most compensation to military personnel be treated as earned rather than unearned income, which would reduce the likelihood of

errors in eligibility and benefit determination in these cases. Finally, the proposals would allow more generous disregards and modestly increase benefits to most disabled or blind children or spouses of military

personnel.

Provisions in the draft “Supplemental Security Income Amendments of 2002,” which was sent to Congress on September 26, 2002, would eliminate the dedicated account requirement, make time-limited

resource exclusions uniform at 9 months, and exclude gifts for educational expenses to the same extent

grants and scholarships are currently excluded.

Admittedly, in the scope of the SSI program, enactment of these proposals would result in only modest

program simplification. However, as part of the Corrective Action Plan, SSA is continuing to analyze proposals relating to the much larger issues of wages and in-kind support and maintenance, two areas often
2003 SSI Annual Report

4

cited as complex and error prone. Intercomponent workgroups overseen by SSA’s highest management are

working on these issues and plan to have recommendations completed later this year. It is not clear at this

point whether the recommendations will include significant legislative or other policy-related proposals. 

What has been clear in the larger program simplification effort is the difficulty of reaching consensus on

how to achieve the goal of simplification while maintaining benefit adequacy, benefit equity, and program

integrity. Over the 29-year life of the SSI program, there have been at least nine major internal and external studies undertaken specifically to determine how best to simplify SSI. Many of the administrative proposals generated by these study groups have been implemented, but none of the legislative

recommendations relating to wages or in-kind income have been adopted. The reasons that the agency has

not pursued these legislative recommendations for changes in how wages and in-kind income are counted

vary according to the specific features of the proposals. However, it can be said generally that each of the

proposals would either significantly increase program expenditures or reduce individuals’ benefits.

Notwithstanding the inability to achieve significant program simplification in the past, SSA continues to

search for ways in which complex policies might be simplified at reasonable cost and without disadvantaging applicants and recipients or sacrificing program integrity. SSA will look for ideas from within and

outside the agency, including Social Security field office personnel, the Social Security Advisory Board,

Congress, SSI recipients, and advocates for the aged, blind, and disabled. It is recognized that more efficient and effective administration of SSI leads to more public confidence in the program, which makes it

easier for eligible aged, blind, and disabled individuals to access the benefits to which they are entitled.

SSA is one of the 18 Federal agencies that are members of the United States Interagency Council on

Homelessness. SSA has a long history of providing service to the American public that includes access to

the programs it administers by the homeless population. SSA is committed to supporting the President’s

initiative to end homelessness within 10 years. To this end, SSA’s fiscal year 2003 appropriation includes

$8 million to conduct outreach to the homeless and other under-served populations. In developing plans

for this outreach effort, SSA reviewed the evaluations of significant outreach efforts conducted during the

1990s, and met with leaders of national homeless advocacy organizations and members of the interagency

council. SSA plans to prepare a Federal Register notice this summer that announces plans to fund cooperative agreements aimed at reaching potentially eligible homeless individuals. The notice will solicit proposals to help homeless people, including adults, children, and youth with disabilities who have difficulty

navigating the disability application process, and will describe agency initiatives including the reduction

of disability determination processing times and improvements in service quality. 

D. KEY RESULTS FROM THE 25-YEAR FORECASTS

The major findings in the 25-year forecasts 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 2027, the Federal SSI recipient population is estimated to reach 8.4 million. Expressed as a

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

slightly from 2.18 percent of the population in 2002 to 2.33 percent by 2027. 

 • Federal expenditures for SSI payments in calendar year 2003 are estimated to increase by $1.5 billion

to $33.1 billion, an increase of 4.7 percent from 2002 levels. In constant 2003 dollars, SSI program

outlays are projected to increase to $42.7 billion in 2027, a real increase of 1.1 percent per year. 

 • Furthermore, when compared to the Gross Domestic Product (GDP), Federal SSI expenditures are

projected to decline over time, from the current level of 0.30 percent of GDP in 2002 to 0.25 percent

of GDP by 2027.
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2003 SSI Annual Report

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 and

assistance. Federal financing was open-ended in the sense that the Federal Government would provide

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
2003 SSI Annual Report

6

 • 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, 2003, the Federal benefit rate is $552 a month for individuals and $829 a month for couples. The resource limit is $2,000 in countable resources for individuals

and $3,000 for couples.

 • Sixty-five 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 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.4 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.5 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:6

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

August 22, 1996;

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 $800 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $800 a month, he/she

generally would not be considered disabled. However, if an SSI recipient is earning over $800 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 $800 was increased from $780 effective January 1, 2003 (65 FR

82905). Increases in the SGA level in subsequent years will be based on increases in the national average wage index.

4 The definition of disability and blindness for individuals under age 18 reflects amendments made by Public Law 104-193, the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996. Prior to this, the law required a medically determinable physical or mental impairment of comparable severity

to that required for individuals 18 or older.

5 This provision reflects amendments made by title I of Public Law 104-121, the Senior Citizens’ Right to Work Act of 1996, enacted March 29, 1996.

6 These standards reflect amendments made by Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 as

amended by Public Law 104-208, Public Law 105-33 and Public Law 105-306. Prior to this, the law permitted SSI eligibility for individuals who were residents of the United States and—citizens or nationals of the United States; aliens lawfully admitted for permanent residence in the United States; or aliens

permanently residing in the United States under color of law.
7

2003 SSI Annual Report

 — 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);

 — 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 under section 501(e) of the Refugee Education Assistance Act of

1980 (eligibility 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.2

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 States3 for 30 consecutive

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

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 Public Law 106-386, the “Victims of Trafficking and Violence Protection Act of 2000,” enacted October 28, 2000.

3 Fifty States, the District of Columbia or the Northern Mariana Islands.
2003 SSI Annual Report

8

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. 

 — 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 cannot 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

obtain. 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,

clothing, or shelter-related items the individual receives in kind from persons other than the householder

(including in-kind assistance from outside the household in which he/she lives) is counted as unearned

income. 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, clothing, 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.

1 See table IV.A2 for historical and estimated future Federal benefit rates.
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2003 SSI Annual Report

Income Exclusions1

The principal earned income exclusions are: 

 • 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 ($10 or less a month). 

The principal unearned income exclusions are: 

 • The first $20 per month,2

 • 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 ($20 or less a month). 

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, clothing 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.

1 A complete list of the SSI income exclusions can be found in section V.B.

2 Any portion of this $20 amount not used to exclude unearned income may be used to exclude earned income.
2003 SSI Annual Report

10

Resource Exclusions1

The principal resource exclusions are:

 • 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 and personal effects in which one’s equity does not exceed $2,000;

 • An automobile depending upon its use, otherwise, the current market value not in excess of $4,500;

 • 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 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 A complete list of the SSI resource exclusions can be found in section V.B.
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2003 SSI Annual Report

 • 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 from an eligible parent 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

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.
2003 SSI Annual Report

12

as a member of the U.S. 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 recently 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 (INS) 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.
13

2003 SSI Annual Report

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 cost 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, regularly attending school and neither married nor the head of a household. It is intended to help defray the

cost of educational training. Under current regulations, up to $1,340 of earned income per month but no

more than $5,410 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

1 Increased from $1,320 and $5,340, respectively, effective January 1, 2003 (65 FR 82905). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.
2003 SSI Annual Report

14

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

goal. 

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 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. 
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2003 SSI Annual Report

7. Vocational Rehabilitation/Ticket to Work Program

Since the beginning of the SSI program, SSA has made provision for blind or disabled individuals who are

receiving SSI benefits to be referred to State Vocational Rehabilitation (VR) agencies. If the State VR

agency does not accept the referral, SSA can refer recipients to an alternate provider to receive vocational

rehabilitation services. SSA reimburses the VR agency or alternate provider for services provided in situations where the services result in the individual’s 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. Providers of such services in this new setting are referred to as “employment

networks” (ENs). In addition, the Ticket legislation provided for a new procedure for compensating the

ENs under an outcome or outcome-milestone payment system. 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.

The Ticket to Work program will be in operation nationwide by January 2004. Initially, 13 States participated, with tickets distributed in the first half of 2002. In November 2002, SSA extended the program to

20 more States and the District of Columbia. The remaining States and territories are scheduled in the final

phase for 2003. Once the Ticket to Work program is implemented in a State, the traditional VR referral

process described earlier will be eliminated in that State, and SSA will provide eligible individuals who

receive SSI benefits due to blindness or disability in such State 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.

Until the Ticket to Work program is implemented in their State, State VR agencies and alternate providers

under the traditional system can continue to enroll beneficiaries under the cost reimbursement system

described above. Any reimbursement for those cases will be made under that system. However, once the

Ticket to Work program is fully implemented, only the State VR agencies will have the option (on a caseby-case basis) of being paid under the traditional VR reimbursement system. ENs other than State VR

agencies will be compensated through the new outcome-based 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 VR program, 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 rehabilitation services are 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
2003 SSI Annual Report

16

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

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 make appointments to 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
17

2003 SSI Annual Report

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. 

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

every 1 to 6 years depending on their specific situation. 

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 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 ($30 a month in 2003 ($58 a

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

Representative payees may only use an SSI recipient’s benefit 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 institu1 Medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
2003 SSI Annual Report

18

tion 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 pending a decision at the first level of appeal. 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. Attorney Fees 

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 an options 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 differs from the Social Security program in that amounts cannot be withheld

from an individual’s SSI benefits to pay for attorney fees. SSI claimants are responsible for paying such

fees directly to their attorneys.

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 to be 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.

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. 

1 Fee agreements prior to February 1, 2002, were limited to the lesser of 25 percent of the retroactive payment or $4,000.
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2003 SSI Annual Report

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. Because of the increases in Federal benefits

over the years, 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 $8.59 fee for each supplementary payment issued in fiscal year 2003. Fees are projected to rise in succeeding fiscal years, based on changes in the consumer price index.

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

It was originally Congress’ view that increases in the Federal SSI benefit rate eventually would replace

State supplementary payments. However, public reaction to States reducing their supplementary payment

1 References to State include, in addition to the 50 States, the District of Columbia.

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.
2003 SSI Annual Report

20

amounts when SSI payments were increased led Congress to mandate that States pass along SSI benefit

increases resulting from cost-of-living adjustments. 

To meet the passalong requirement, a State may either maintain each State payment level from year-toyear—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, 42 States use the levels method and 8 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. 

Continued Medicaid eligibility is provided in SSI law 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 disabled adult child benefits.
21

2003 SSI Annual Report

Also, Medicaid continues for beneficiaries who lose SSI because of disabled adult child benefits entitlement if they would remain eligible for SSI without those title II 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.
2003 SSI Annual Report

22

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 Supplementation1 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 11 4 42 8 40 11 33 39
23

2003 SSI Annual Report

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER 

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2003-27

As described in section III, eligibility for payments under the SSI program depends on a collection of provisions 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 will depend on a variety of difficult-to-predict factors including the performance of national and local economies, distribution of personal income within that macroeconomic framework, the prevalence of disability in the general population, and the determination of disability as defined

by the Social Security Act. 

Estimates of expenditures under the SSI program, prior to the issuance of the first SSI Annual Report in

May 1997, were of a short-term nature prepared in conjunction with the President’s Budget. These shortterm projections relied exclusively on the evaluation of recent historical trends in the SSI program, and the

extrapolation of such trends into the next few years. The provisions of Public Law 104-193 mandating this

report required that such projections of future program participation be prepared for a period of at least

25 years. As was discussed in the 1997 Annual Report, due to the complex interaction between the economy and the SSI program, models for projecting SSI program participation over such an extended time

period should incorporate more sophisticated concepts than the trend analysis traditionally used for budget

purposes. In the 1998 Annual Report, the Office of the Chief Actuary announced the beginning of a multiyear program of research intended to develop the appropriate data and models to reflect the impact of the

relevant cofactors on the future of the SSI program. We expect to incorporate partial improvements to our

models on an annual basis, and the estimates presented in this and future reports will reflect such step-wise

improvements.

For this seventh annual report, our estimates are based on the revised structural model introduced in the

1999 Annual Report. As described in that report, the revised model disaggregated the basic population by

single year-of-age and gender in order to better understand and forecast the various transitions in and out

of payment status. In addition, movements out of payment status were further examined by reason for such

movements, although at this stage the analysis was limited to two broad groups: (1) terminations due to

death and (2) suspension of payment due to all other reasons.1 The additional detail in the revised model

enabled us to better analyze the transition from disabled child status to status as a disabled adult at age 18,

and provided us with an enhanced ability to analyze the age structure of the historical and forecasted disabled adult population. In the 4 years since the 1999 Annual Report, we have analyzed certain age subgroups in greater detail, with the result that our longer term assumptions with respect to the growth in the

SSI population better reflect the growth patterns to be expected of the respective age groups.

The presentation of forecast results in the remainder of this section corresponds to our revised model

structure. In particular, all tables present SSI population information by selected age groups, rather than

groups based exclusively on SSI recipient categories. Where certain recipient categories have overlapping

age distributions, recipient category totals are still 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. For purposes of developing these estimates, we have relied on the demographic

1 The two main reasons other than death for termination of SSI payments are failure to satisfy income and resource limitations of the SSI program and

recovery from a qualifying disability.
2003 SSI Annual Report

24

projections and CPI assumptions underlying the intermediate estimates prepared for the 2003 Annual

Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance

(OASDI) Trust Funds.1 Detailed discussion of these demographic and economic parameters is presented

in sections V.A and V.B of that report.2 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 by certain age subgroups that correspond to the

age subgroups in the presentation of SSI participant projections discussed in the next section. As discussed

in the Social Security Trustees Report, both historical and projected population estimates have been

revised upward since last year’s report, reflecting the impact of the recently available 2000 Census which

indicated a significantly higher population than the Census Bureau had earlier estimated.

1 House Document 108-49, published March 17, 2003.

2 Ibid, Section V.A, Demographic Assumptions and Methods and Section V.B, Economic Assumptions and Methods.
25

2003 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 annually in January 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 such 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 Estimated Population in the Social Security Area as Projected for the 

Intermediate Assumptions of the 2003 OASDI Trustees Report, as of July 1, 1974-2027

[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 .................. 70,714 60,135 36,339 32,809 13,865 8,871 222,734

1975 .................. 69,727 62,097 36,322 33,154 14,164 9,102 224,566

1976 .................. 68,736 63,985 36,488 33,425 14,480 9,343 226,457

1977 .................. 67,830 65,649 36,897 33,694 14,805 9,595 228,470

1978 .................. 67,001 67,227 37,479 33,931 15,127 9,860 230,625

1979 .................. 66,271 68,859 38,053 34,102 15,437 10,140 232,861

1980 .................. 65,746 70,454 38,557 34,245 15,721 10,428 235,150

1981 .................. 65,419 71,564 39,518 34,319 15,991 10,721 237,531

1982 .................. 65,213 72,167 41,020 34,276 16,278 11,044 239,997

1983 .................. 65,164 72,649 42,550 34,151 16,544 11,370 242,428

1984 .................. 65,272 72,990 44,010 34,057 16,793 11,680 244,803

1985 .................. 65,527 73,210 45,449 33,959 17,082 11,983 247,210

1986 .................. 65,849 73,318 47,030 33,756 17,438 12,277 249,668

1987 .................. 66,124 73,382 48,708 33,617 17,752 12,587 252,169

1988 .................. 66,358 73,482 50,398 33,595 17,998 12,896 254,726

1989 .................. 66,809 73,395 52,167 33,588 18,241 13,209 257,408

1990 .................. 67,786 72,889 54,023 33,687 18,462 13,560 260,408

1991 .................. 69,072 72,135 55,881 33,981 18,673 13,923 263,666

1992 .................. 70,297 71,381 57,637 34,468 18,900 14,283 266,965

1993 .................. 71,381 70,714 59,330 35,085 19,080 14,626 270,215

1994 .................. 72,309 70,116 61,012 35,746 19,184 14,968 273,335

1995 .................. 73,070 69,597 62,624 36,484 19,224 15,348 276,348

1996 .................. 73,719 69,214 63,924 37,599 19,164 15,753 279,374

1997 .................. 74,245 68,992 64,947 39,020 19,071 16,128 282,403

1998 .................. 74,642 68,900 65,838 40,533 18,951 16,463 285,327

1999 .................. 74,944 68,982 66,566 42,074 18,844 16,789 288,199

2000 .................. 75,178 69,189 67,155 43,627 18,796 17,069 291,015

2001 .................. 75,359 69,499 67,635 45,259 18,748 17,295 293,795

2002 .................. 75,528 69,947 67,958 46,927 18,746 17,504 296,610

Estimated:

2003 .................. 75,722 70,453 68,105 48,625 18,828 17,674 299,408

2004 .................. 75,945 70,952 68,106 50,375 18,966 17,824 302,168

2005 .................. 76,144 71,482 67,978 52,145 19,183 17,962 304,894

2006 .................. 76,286 72,081 67,730 53,920 19,526 18,047 307,591

2007 .................. 76,326 72,795 67,382 55,674 19,985 18,100 310,263

2008 .................. 76,291 73,597 66,963 57,352 20,589 18,117 312,910

2009 .................. 76,310 74,358 66,496 58,909 21,300 18,163 315,536

2010 .................. 76,408 75,052 65,990 60,320 22,114 18,254 318,137

2011................... 76,589 75,668 65,462 61,573 23,090 18,330 320,712

2012 .................. 76,850 76,198 64,955 62,665 24,160 18,440 323,269

2013 .................. 77,150 76,636 64,535 63,594 25,280 18,596 325,791

2014 .................. 77,507 76,932 64,261 64,355 26,428 18,791 328,273

2015 .................. 77,929 77,080 64,174 64,946 27,559 19,049 330,736

2016 .................. 78,354 77,137 64,280 65,371 28,665 19,370 333,177

2017 .................. 78,776 77,121 64,550 65,635 29,745 19,762 335,591

2018 .................. 79,100 77,152 64,937 65,750 30,794 20,242 337,975

2019 .................. 79,315 77,261 65,385 65,733 31,806 20,828 340,329

2020 .................. 79,537 77,368 65,843 65,601 32,771 21,528 342,649

2021 .................. 79,756 77,506 66,287 65,364 33,682 22,337 344,932

2022 .................. 79,966 77,625 66,767 65,040 34,539 23,236 347,173

2023 .................. 80,153 77,680 67,315 64,656 35,342 24,196 349,342

2024 .................. 80,313 77,625 67,975 64,232 36,097 25,191 351,434

2025 .................. 80,449 77,502 68,727 63,779 36,810 26,203 353,471

2026 .................. 80,561 77,440 69,440 63,312 37,475 27,222 355,449

2027 .................. 80,645 77,464 70,070 62,869 38,066 28,254 357,369
2003 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.—Social Security Cost-of-Living Adjustments and Federal Benefit Rates Estimated on the Basis of the 

Intermediate Assumptions of the 2003 OASDI Trustees Report, 1974-2027 

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

Estimated:

2004....................................................... 2.3 565.00 848.00 283.00

2005....................................................... 2.4 579.00 868.00 290.00

2006....................................................... 2.8 595.00 892.00 298.00

2007....................................................... 2.9 612.00 918.00 306.00

2008....................................................... 3.0 630.00 946.00 316.00

2009....................................................... 3.0 649.00 974.00 325.00

2010....................................................... 3.0 669.00 1,003.00 335.00

2011....................................................... 3.0 689.00 1,033.00 345.00

2012....................................................... 3.0 710.00 1,065.00 355.00

2013....................................................... 3.0 731.00 1,096.00 366.00

2014....................................................... 3.0 753.00 1,129.00 377.00

2015....................................................... 3.0 775.00 1,163.00 388.00

2016....................................................... 3.0 799.00 1,198.00 400.00

2017....................................................... 3.0 823.00 1,234.00 412.00

2018....................................................... 3.0 847.00 1,271.00 424.00

2019....................................................... 3.0 873.00 1,309.00 437.00

2020....................................................... 3.0 899.00 1,349.00 450.00

2021....................................................... 3.0 926.00 1,389.00 464.00

2022....................................................... 3.0 954.00 1,431.00 478.00

2023....................................................... 3.0 982.00 1,474.00 492.00

2024....................................................... 3.0 1,012.00 1,518.00 507.00

2025....................................................... 3.0 1,042.00 1,564.00 522.00

2026....................................................... 3.0 1,074.00 1,610.00 538.00

2027....................................................... 3.0 1,106.00 1,659.00 554.00
27

2003 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

In this section, we present our projections of the various subpopulations which lead to the numbers of persons receiving Federal SSI payments. As described above, the forecasting models that produce these projections are structured to handle population flows by single-year-of-age. Correspondingly, the tables in this

section present these population totals by selected age groupings. This is in contrast with annual reports

prior to 1999 which presented forecast results exclusively by recipient categories of aged, blind or disabled adults, and blind or disabled children. Since these recipient categories are in large part based on age,

the additional age breakouts shown in this report can be viewed as a refinement of the information presented in the first two SSI Annual Reports. The following paragraphs discuss a few of the subtle points in

the translation between the previous recipient categories and current age categories.

 • The aged category includes those individuals whose eligibility for SSI benefits is established based

on meeting the age-65-or-older requirement for assistance, and the income and resource limits applicable for adults. In December 2002, there were 1.252 million aged recipients of Federally-administered SSI payments. 

 • The blind or disabled adults category includes those individuals whose eligibility is established based

on meeting the definition of blindness or disability for individuals age 18 or older, and the income and

resource limits applicable for adults. After attainment of age 65, these individuals generally continue

to be classified as blind or disabled adults (rather than aged). In December 2002, there were

4.611 million blind or disabled adult recipients of Federally-administered SSI payments, including

726 thousand disabled and 18 thousand blind recipients aged 65 or older.

 • The blind or disabled children category includes those individuals whose initial eligibility is established based on meeting the definition of blindness or disability for individuals under age 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. As a result, blind or disabled children are generally reclassified

as blind or disabled adults at age 18. However, students aged 18 to 21 are still classified as blind or

disabled children, but only for purposes of applying a special student earned income exclusion.1 The

numbers of students, however, represent a small percentage of the total number of disabled children.

For example, in December 2002, there were 925 thousand blind or disabled child recipients of Federally-administered SSI payments, including 10 thousand students aged 18 to 21. Since these students

are small in number, and for most purposes treated under the program as disabled adults, most agency

management information is moving in the direction of equating disabled children with the age grouping 0 to 17. As in the past four annual reports, our tables showing historical and projected SSI data

conform to this new standard.

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 2002 were about 9.6 percent higher than were received in 2001. The actual result

for 2002 was 0.2 percent higher than estimated for 2002 in the 2002 Annual Report. This growth in applications during 2002 is likely related to the downturn in the economy that began early in 2001. Our shortterm 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

1 Parent-to-child deeming ends in all cases when an individual turns 18.
2003 SSI Annual Report

28

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 Consistent data on applications for 1974 (the first year of operation of the program) are not available.

3 Totals estimated using a 1-percent sample.

4 Age-specific information for these years not yet available.

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 1974-2027

[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/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 3 . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,075 325 1,400

1976 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 984 254 1,239

1977 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,040 259 1,298

1978 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,046 258 1,304

1979 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 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

Estimated:

2003 . . . . 393 406 544 395 5 5/ 102 37 1,744 139 1,882

2004 . . . . 391 404 541 410 4 5/ 106 38 1,751 144 1,895

2005 . . . . 383 395 531 427 5 5/ 108 38 1,741 147 1,887

2006 . . . . 372 384 514 438 5 5/ 111 38 1,713 149 1,862

2007 . . . . 366 377 499 446 6 5/ 113 38 1,694 152 1,846

2008 . . . . 359 370 484 454 6 5/ 115 38 1,674 153 1,827

2009 . . . . 356 366 472 463 7 5/ 116 38 1,664 154 1,818

2010 . . . . 357 370 469 472 7 5/ 119 37 1,675 156 1,831

2011 . . . . 358 372 465 481 8 5/ 124 37 1,684 161 1,845

2012 . . . . 360 375 461 489 8 5/ 128 37 1,693 165 1,858

2013 . . . . 362 377 458 495 8 5/ 132 38 1,700 170 1,870

2014 . . . . 364 378 456 500 9 5/ 138 38 1,707 176 1,883

2015 . . . . 365 379 456 504 9 5/ 143 39 1,712 181 1,894

2016 . . . . 367 379 457 506 9 5/ 147 39 1,717 187 1,904

2017 . . . . 368 378 459 507 9 5/ 152 40 1,721 192 1,913

2018 . . . . 369 379 461 506 9 5/ 156 41 1,726 197 1,923

2019 . . . . 370 380 464 505 10 5/ 161 42 1,729 203 1,932

2020 . . . . 371 381 467 503 10 5/ 165 44 1,733 209 1,942

2021 . . . . 372 383 470 500 10 5/ 170 46 1,735 215 1,951

2022 . . . . 373 383 474 497 10 5/ 174 48 1,738 221 1,959

2023 . . . . 374 384 479 493 10 5/ 177 50 1,739 227 1,966

2024 . . . . 374 383 484 489 11 5/ 180 51 1,741 232 1,973

2025 . . . . 374 382 489 486 11 5/ 183 53 1,742 237 1,979

2026 . . . . 375 381 494 482 11 5/ 186 55 1,743 241 1,985

2027 . . . . 375 381 499 479 11 5/ 188 57 1,745 245 1,990
29

2003 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 in 2002 with an increase of 6.4 percent over the 2001 level. As mentioned

earlier in the discussion of applications, this increase is likely related to the continued poor performance of

the economy in 2002. As with applications, our projections in the near term assume a somewhat higher

level of new entrants than experienced in the years just prior to 2001. Over the longer term the numbers of

new entrants are estimated to increase gradually in line with projected growth in applications.

 Figure IV.B1.—SSI Federally-Administered Applications by Age Group, Calendar Years 1980-2030

[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

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
2003 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 Age-specific information for these years not yet available.

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.B2.—SSI Federally-Administered New Entrants, Calendar Years 1974-2027

[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. . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,919 2,479 4,398

1975 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 584 347 931

1976 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 452 218 669

1977 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 429 209 637

1978 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 370 193 563

1979 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 330 169 499

1980 . . . . . 41 92 61 142 4 5/ 125 59 341 184 524

1981 . . . . . 37 77 49 106 3 5/ 80 37 272 117 389

1982 . . . . . 38 63 51 90 4 5/ 72 31 245 103 348

1983 . . . . . 47 88 62 117 3 5/ 95 51 317 146 463

1984 . . . . . 47 109 78 142 4 5/ 131 78 380 209 589

1985 . . . . . 48 104 80 148 4 5/ 106 46 384 152 536

1986 . . . . . 55 127 109 153 5 5/ 110 51 449 161 610

1987 . . . . . 48 119 106 157 5 5/ 116 52 435 167 602

1988 . . . . . 50 101 108 146 5 1 112 56 412 167 579

1989 . . . . . 48 113 115 155 5 5/ 127 62 436 189 625

1990 . . . . . 76 136 134 182 5 5/ 149 66 533 215 748

1991 . . . . . 126 146 172 200 6 5/ 139 54 650 193 844

1992 . . . . . 221 199 221 233 6 5/ 133 48 881 181 1,062

1993 . . . . . 235 194 221 225 6 5/ 136 49 881 185 1,066

1994 . . . . . 204 164 207 215 6 5/ 116 42 796 157 953

1995 . . . . . 177 147 207 218 5 5/ 105 36 755 141 895

1996 . . . . . 145 134 193 203 6 1 93 35 681 128 809

1997 . . . . . 116 111 171 178 4 5/ 68 25 580 93 673

1998 . . . . . 135 117 181 194 7 1 78 30 634 108 742

1999 . . . . . 140 114 186 195 5 5/ 88 33 640 120 760

2000 . . . . . 145 112 180 191 5 5/ 84 31 633 115 748

2001 . . . . . 157 121 185 198 4 5/ 79 28 665 107 772

2002 . . . . . 171 128 195 212 4 5/ 82 29 710 111 821

Estimated:

2003 . . . . . 178 139 199 219 5 5/ 82 29 740 111 851

2004 . . . . . 177 141 203 228 4 5/ 86 30 754 116 870

2005 . . . . . 171 136 197 235 5 5/ 88 30 743 118 861

2006 . . . . . 166 133 191 242 6 5/ 90 30 737 120 857

2007 . . . . . 164 131 187 248 6 5/ 92 30 735 122 857

2008 . . . . . 161 129 182 253 6 5/ 93 30 731 123 854

2009 . . . . . 160 127 177 256 7 5/ 93 30 726 123 849

2010 . . . . . 160 126 174 259 7 5/ 95 30 727 125 852

2011 . . . . . 161 126 172 262 7 5/ 99 29 728 129 857

2012 . . . . . 162 127 170 266 7 5/ 102 30 731 132 863

2013 . . . . . 162 127 169 270 7 5/ 106 30 735 136 871

2014 . . . . . 163 128 168 272 8 5/ 110 30 739 140 879

2015 . . . . . 164 128 168 275 8 5/ 114 31 742 145 887

2016 . . . . . 164 128 168 276 8 5/ 118 31 744 149 894

2017 . . . . . 165 128 169 277 8 5/ 122 32 747 153 900

2018 . . . . . 166 128 169 277 8 5/ 125 33 749 158 906

2019 . . . . . 166 129 171 277 9 5/ 129 34 751 162 913

2020 . . . . . 166 129 172 276 9 5/ 132 35 752 167 919

2021 . . . . . 167 130 173 274 9 5/ 136 36 753 172 925

2022 . . . . . 167 130 174 273 9 5/ 139 38 754 177 931

2023 . . . . . 167 130 176 271 9 5/ 142 39 754 181 935

2024 . . . . . 168 130 178 269 9 5/ 145 41 754 186 940

2025 . . . . . 168 130 180 267 9 5/ 147 43 755 190 944

2026 . . . . . 168 130 182 265 10 5/ 149 44 755 193 948

2027 . . . . . 168 130 184 263 10 5/ 151 46 754 196 951
31

2003 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 2002 was 2.1 percent higher than anticipated in the 2002 Annual

Report. Terminations due to death were 1.1 percent lower than anticipated, but terminations due to reasons

other than death were 3.4 percent higher than estimated last year. Almost half of the difference between

actual 2002 results and the values estimated in last year’s report is due to an underestimate of terminations

among disabled child recipients.

 Figure IV.B2.—SSI Federally-Administered New Entrants by Age Group, Calendar Years 1980-2030

[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

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 Estimated
2003 SSI Annual Report

32

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

3 Age-specific information for these years not yet available.

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 1974-2027

[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/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 65 147 212

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 64 137 201

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 65 137 203

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 67 126 193

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 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

Estimated:

2003 . . . . 6 9 29 51 26 21 11 59 140 70 211

2004 . . . . 6 9 29 53 27 21 11 60 146 72 217

2005 . . . . 6 9 29 55 28 21 11 60 149 71 220

2006 . . . . 6 9 29 57 28 22 11 60 152 71 223

2007 . . . . 6 9 29 59 29 22 11 60 155 70 225

2008 . . . . 6 10 29 61 30 22 11 59 158 70 228

2009 . . . . 6 10 28 62 31 23 11 59 160 70 230

2010 . . . . 6 10 28 64 32 23 11 58 163 70 232

2011 . . . . 6 10 27 66 33 23 11 58 165 69 235

2012 . . . . 6 10 27 67 34 24 12 57 168 69 237

2013 . . . . 6 10 26 68 35 24 12 57 170 69 239

2014 . . . . 7 10 26 69 36 25 12 56 172 69 241

2015 . . . . 7 10 26 70 37 25 13 56 174 69 244

2016 . . . . 7 10 26 70 38 26 13 56 177 69 246

2017 . . . . 7 10 26 70 39 26 14 56 179 70 248

2018 . . . . 7 10 26 70 41 27 14 56 181 70 251

2019 . . . . 7 10 26 70 42 28 15 56 183 71 254

2020 . . . . 7 10 26 70 43 28 15 56 185 72 256

2021 . . . . 7 10 26 70 44 29 16 57 186 73 259

2022 . . . . 7 11 26 69 45 30 16 58 188 74 262

2023 . . . . 7 11 27 69 46 31 17 58 190 75 265

2024 . . . . 7 11 27 68 47 32 17 60 191 77 268

2025 . . . . 7 11 27 68 48 32 17 61 193 78 271

2026 . . . . 7 11 27 67 49 33 18 62 194 80 274

2027 . . . . 7 11 28 66 50 34 18 64 195 82 278
33

2003 SSI Annual Report

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

3 Age-specific information for these years not yet available.

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 1974-2027

[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/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 221 180 401

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 306 240 546

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 265 168 433

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 241 150 391

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 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

Estimated:

2003 . . . . 70 98 119 135 20 9 17 37 451 55 505

2004 . . . . 67 105 122 138 20 9 19 37 461 56 517

2005 . . . . 70 110 125 144 20 9 19 36 478 56 534

2006 . . . . 76 112 125 149 20 9 20 36 491 56 547

2007 . . . . 78 111 123 154 21 9 20 36 496 56 552

2008 . . . . 74 113 122 159 22 9 20 36 499 56 555

2009 . . . . 70 113 119 161 23 9 21 36 496 57 553

2010 . . . . 66 115 117 164 24 9 21 37 495 58 553

2011 . . . . 65 116 116 168 25 10 22 36 500 58 558

2012 . . . . 66 117 114 171 26 10 22 36 504 58 563

2013 . . . . 67 116 112 173 27 10 23 36 505 59 563

2014 . . . . 68 117 111 175 28 10 24 35 509 59 568

2015 . . . . 68 118 110 177 29 10 25 35 512 60 572

2016 . . . . 69 119 110 177 29 10 26 35 515 60 575

2017 . . . . 69 119 111 177 30 11 26 35 517 61 578

2018 . . . . 69 120 111 177 31 11 27 35 520 62 582

2019 . . . . 69 121 112 177 32 11 28 35 522 63 585

2020 . . . . 69 122 112 176 33 11 29 36 524 64 589

2021 . . . . 69 123 113 175 34 12 30 36 526 66 592

2022 . . . . 69 124 114 174 34 12 30 37 527 67 595

2023 . . . . 69 124 115 172 35 12 31 38 529 69 597

2024 . . . . 69 125 116 171 36 13 32 39 530 70 600

2025 . . . . 69 125 118 169 36 13 32 40 531 72 603

2026 . . . . 70 125 119 168 37 14 33 41 532 74 606

2027 . . . . 70 126 120 167 37 14 34 42 533 75 609
2003 SSI Annual Report

34

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

3 Age-specific information for these years not yet available.

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 1974-2027

[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/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 287 326 613

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 371 377 748

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 330 305 636

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 308 276 584

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 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

Estimated:

2003 . . . . 75 107 148 185 46 29 29 96 591 125 716

2004 . . . . 73 114 151 191 48 30 30 97 607 128 735

2005 . . . . 76 119 154 199 48 30 30 97 627 127 754

2006 . . . . 82 121 155 206 49 31 30 96 643 127 770

2007 . . . . 84 120 152 212 51 31 31 96 650 126 777

2008 . . . . 80 122 151 219 52 31 31 95 657 126 783

2009 . . . . 76 123 148 224 54 32 32 95 656 127 783

2010 . . . . 72 124 145 228 56 33 32 95 658 127 785

2011 . . . . 71 126 143 234 58 33 33 94 665 127 793

2012 . . . . 72 127 141 238 60 34 34 93 672 127 799

2013 . . . . 73 126 138 241 62 34 35 92 674 127 802

2014 . . . . 74 127 137 244 64 35 36 92 681 128 809

2015 . . . . 75 128 136 246 66 35 38 91 686 129 815

2016 . . . . 75 129 136 247 68 36 39 91 691 130 821

2017 . . . . 76 129 136 248 70 37 40 91 696 131 827

2018 . . . . 76 131 137 248 72 38 42 91 701 132 833

2019 . . . . 76 132 138 247 74 39 43 91 705 134 839

2020 . . . . 76 133 139 246 76 40 44 92 709 136 845

2021 . . . . 76 134 139 245 78 41 46 93 713 138 851

2022 . . . . 76 134 140 243 80 42 47 94 716 141 857

2023 . . . . 76 135 142 241 82 43 48 96 719 144 862

2024 . . . . 76 135 143 239 83 44 49 98 721 147 868

2025 . . . . 76 136 145 237 85 46 50 100 724 150 874

2026 . . . . 76 136 146 235 86 47 51 103 726 154 880

2027 . . . . 77 137 148 233 87 48 52 106 729 158 887
35

2003 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 2002 was that there were roughly 0.1 percent fewer Federal SSI recipients at the end of 2002

than estimated for the 2002 Annual Report.

 Figure IV.B3.—SSI Federally-Administered Terminations by Age Group, Calendar Years 1980-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2027

[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/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/

1975 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 1,869 2,025 3,893

1976 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 1,932 1,867 3,799

1977 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,013 1,765 3,778

1978 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,069 1,686 3,755

1979 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 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

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

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Historical Estimated

75 or older

35-49

65-74

50-64

18-34

0-17
2003 SSI Annual Report

36

1 Data not available.

2 Age-specific information for these years not yet available.

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.

Estimated:

2003 . . . . 957 1,026 1,361 1,441 511 204 437 701 5,500 1,138 6,638

2004 . . . . 997 1,048 1,377 1,496 517 208 429 697 5,643 1,126 6,770

2005 . . . . 1,026 1,060 1,380 1,550 525 214 423 694 5,756 1,117 6,872

2006 . . . . 1,041 1,071 1,373 1,605 539 217 424 685 5,846 1,110 6,955

2007 . . . . 1,047 1,087 1,361 1,658 553 221 428 677 5,927 1,105 7,032

2008 . . . . 1,052 1,101 1,343 1,709 569 224 435 666 5,997 1,101 7,098

2009 . . . . 1,059 1,114 1,321 1,759 583 227 440 657 6,062 1,098 7,160

2010 . . . . 1,070 1,125 1,299 1,804 597 232 447 648 6,127 1,095 7,222

2011 . . . . 1,085 1,132 1,277 1,841 617 235 458 638 6,186 1,097 7,283

2012 . . . . 1,099 1,138 1,257 1,871 638 238 470 631 6,243 1,101 7,343

2013 . . . . 1,113 1,145 1,242 1,899 659 243 485 623 6,301 1,108 7,409

2014 . . . . 1,127 1,151 1,230 1,921 681 246 502 617 6,357 1,119 7,476

2015 . . . . 1,140 1,157 1,224 1,937 702 251 520 614 6,410 1,133 7,543

2016 . . . . 1,151 1,163 1,223 1,946 722 256 539 612 6,461 1,151 7,612

2017 . . . . 1,161 1,167 1,226 1,949 743 263 558 614 6,509 1,171 7,680

2018 . . . . 1,167 1,175 1,231 1,949 765 269 576 618 6,555 1,194 7,749

2019 . . . . 1,173 1,182 1,238 1,944 787 275 594 625 6,599 1,220 7,819

2020 . . . . 1,178 1,189 1,244 1,937 810 282 612 637 6,640 1,248 7,888

2021 . . . . 1,183 1,197 1,251 1,926 831 290 628 651 6,679 1,279 7,958

2022 . . . . 1,189 1,203 1,261 1,913 851 300 643 668 6,715 1,312 8,027

2023 . . . . 1,194 1,208 1,271 1,898 869 308 658 687 6,749 1,346 8,095

2024 . . . . 1,199 1,211 1,285 1,882 887 318 673 708 6,781 1,381 8,162

2025 . . . . 1,203 1,213 1,300 1,865 902 327 687 729 6,810 1,417 8,227

2026 . . . . 1,206 1,217 1,314 1,848 916 336 701 752 6,837 1,453 8,290

2027 . . . . 1,209 1,222 1,326 1,833 927 345 714 774 6,862 1,488 8,350

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

as of December, 1980-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2027 (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

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 Estimated
37

2003 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. In 2001

and 2002 the experience resulted in a slightly higher rate of increase (1.4 to 1.5 percent). Our projections

indicate that 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. These percentages, of course, reflect the significant revisions in the historical and projected population totals which were discussed in section IV.A.

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. 4 Age-specific information for these years not yet available.

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, 1975-2027 

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:

1975 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 0.83 8.62 1.73

1976 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .85 7.76 1.67

1977 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .88 7.16 1.65

1978 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .89 6.68 1.62

1979 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .90 6.17 1.58

1980 . . . . 0.29 0.70 0.91 2.19 2.16 0.17 3.84 8.78 .91 5.82 1.56

1981 . . . . .30 .72 .87 2.10 2.27 .16 3.36 8.20 .91 5.31 1.50

1982 . . . . .29 .71 .83 1.99 2.35 .19 2.80 7.79 .89 4.82 1.44

1983 . . . . .30 .76 .85 2.03 2.47 .24 2.70 7.75 .92 4.76 1.47

1984 . . . . .32 .81 .88 2.06 2.40 .40 2.74 7.49 .96 4.69 1.50

1985 . . . . .34 .87 .92 2.11 2.33 .59 2.68 7.11 1.00 4.51 1.53

1986 . . . . .36 .94 1.00 2.20 2.26 .74 2.64 6.67 1.05 4.31 1.56

1987 . . . . .38 .98 1.06 2.25 2.20 .89 2.60 6.33 1.09 4.15 1.59

1988 . . . . .38 1.00 1.10 2.30 2.14 .98 2.59 5.97 1.11 4.00 1.60

1989 . . . . .39 1.03 1.16 2.38 2.08 1.08 2.66 5.70 1.14 3.94 1.63

1990 . . . . .45 1.09 1.23 2.49 2.09 1.14 2.74 5.46 1.21 3.90 1.69

1991 . . . . .57 1.16 1.36 2.63 2.08 1.18 2.89 5.24 1.30 3.89 1.78

1992 . . . . .78 1.29 1.50 2.79 2.12 1.20 3.04 5.04 1.45 3.90 1.94

1993 . . . . 1.00 1.40 1.63 2.92 2.14 1.21 3.16 4.88 1.59 3.91 2.08

1994 . . . . 1.16 1.48 1.74 3.02 2.21 1.20 3.17 4.74 1.69 3.86 2.17

1995 . . . . 1.25 1.52 1.82 3.08 2.26 1.21 3.13 4.60 1.76 3.79 2.23

1996 . . . . 1.29 1.54 1.86 3.08 2.32 1.21 3.06 4.47 1.79 3.70 2.25

1997 . . . . 1.18 1.51 1.83 3.02 2.40 1.18 2.87 4.33 1.75 3.54 2.19

1998 . . . . 1.18 1.51 1.87 3.02 2.45 1.19 2.76 4.25 1.77 3.45 2.19

1999 . . . . 1.13 1.46 1.91 2.99 2.52 1.15 2.65 4.16 1.75 3.37 2.17

2000 . . . . 1.12 1.43 1.93 2.96 2.57 1.14 2.57 4.10 1.76 3.30 2.16

2001 . . . . 1.17 1.43 1.96 2.94 2.63 1.13 2.46 4.05 1.78 3.23 2.17

2002 . . . . 1.21 1.43 1.98 2.93 2.67 1.14 2.38 4.01 1.80 3.17 2.18

Estimated:

2003 . . . . 1.26 1.45 2.00 2.92 2.70 1.15 2.31 3.96 1.83 3.11 2.21

2004 . . . . 1.31 1.47 2.02 2.93 2.72 1.16 2.26 3.90 1.86 3.05 2.23

2005 . . . . 1.35 1.48 2.03 2.93 2.72 1.19 2.19 3.86 1.88 2.99 2.25

2006 . . . . 1.36 1.48 2.03 2.94 2.73 1.20 2.15 3.79 1.89 2.94 2.25

2007 . . . . 1.37 1.49 2.02 2.94 2.74 1.22 2.12 3.74 1.90 2.88 2.26

2008 . . . . 1.38 1.49 2.01 2.95 2.72 1.23 2.08 3.68 1.91 2.82 2.26

2009 . . . . 1.39 1.49 1.99 2.95 2.70 1.25 2.04 3.61 1.91 2.76 2.26

2010 . . . . 1.40 1.49 1.98 2.96 2.65 1.27 1.99 3.55 1.92 2.69 2.26

2011 . . . . 1.41 1.49 1.96 2.97 2.62 1.28 1.95 3.48 1.92 2.62 2.26

2012 . . . . 1.43 1.49 1.94 2.97 2.59 1.29 1.91 3.41 1.92 2.55 2.26

2013 . . . . 1.44 1.49 1.93 2.97 2.56 1.30 1.88 3.34 1.93 2.49 2.27

2014 . . . . 1.45 1.49 1.92 2.97 2.53 1.30 1.86 3.27 1.93 2.44 2.27

2015 . . . . 1.46 1.50 1.91 2.97 2.50 1.31 1.85 3.20 1.93 2.40 2.27

2016 . . . . 1.47 1.51 1.90 2.97 2.48 1.31 1.85 3.14 1.93 2.37 2.28

2017 . . . . 1.47 1.51 1.89 2.97 2.46 1.32 1.85 3.08 1.93 2.34 2.28

2018 . . . . 1.47 1.52 1.89 2.96 2.45 1.31 1.85 3.02 1.93 2.31 2.29

2019 . . . . 1.48 1.53 1.89 2.96 2.44 1.31 1.84 2.97 1.93 2.29 2.29

2020 . . . . 1.48 1.54 1.88 2.96 2.44 1.29 1.84 2.92 1.93 2.27 2.30

2021 . . . . 1.48 1.54 1.88 2.95 2.44 1.28 1.84 2.87 1.93 2.25 2.30

2022 . . . . 1.48 1.55 1.88 2.95 2.44 1.27 1.84 2.83 1.93 2.24 2.31

2023 . . . . 1.49 1.55 1.88 2.94 2.44 1.25 1.85 2.80 1.93 2.23 2.31

2024 . . . . 1.49 1.56 1.88 2.94 2.44 1.24 1.85 2.77 1.92 2.23 2.32

2025 . . . . 1.49 1.57 1.88 2.93 2.43 1.23 1.85 2.74 1.92 2.22 2.32

2026 . . . . 1.50 1.57 1.88 2.93 2.43 1.21 1.86 2.72 1.92 2.22 2.33

2027 . . . . 1.50 1.58 1.89 2.92 2.42 1.20 1.86 2.70 1.92 2.22 2.33
2003 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 only slightly 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. 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 recent modest

decreases due to the implementation of legislation described in other sections the number of blind or disabled persons receiving Federal SSI payments is estimated to increase very gradually as a percentage 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, 1980-2030

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

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 Estimated
39

2003 SSI Annual Report

1 Data not available.

2 Age-specific information for these years not yet available.

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

Sullivan v. Zebley, which greatly expanded the criteria used for determining disability for children. The

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

in Current-Payment Status as of December, 1974-2027

[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/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/

1975 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 139 282 421

1976 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 156 280 437

1977 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 174 286 460

1978 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 180 282 462

1979 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 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

Estimated:

2003 . . . . 3 18 56 67 30 12 41 58 186 99 285

2004 . . . . 3 18 56 70 30 12 42 58 189 100 289

2005 . . . . 3 18 56 73 31 12 42 58 193 100 293

2006 . . . . 3 18 56 75 32 12 42 58 197 100 296

2007 . . . . 3 19 55 78 33 13 42 58 200 100 300

2008 . . . . 3 19 55 81 34 13 43 57 204 100 304

2009 . . . . 3 19 55 84 36 13 43 57 209 100 309

2010 . . . . 3 20 54 87 37 13 43 57 213 100 313

2011 . . . . 3 20 53 89 39 13 44 56 217 100 317

2012 . . . . 3 20 53 91 40 13 45 56 220 101 321

2013 . . . . 3 20 52 92 42 14 47 55 222 102 324

2014 . . . . 3 20 51 93 43 14 48 55 225 103 328

2015 . . . . 3 21 51 94 45 14 50 55 227 105 332

2016 . . . . 3 21 51 95 46 14 52 55 230 107 336

2017 . . . . 3 21 51 95 47 15 54 55 232 109 341

2018 . . . . 3 21 51 95 49 15 56 56 234 111 345

2019 . . . . 3 21 51 95 50 16 58 57 236 114 350

2020 . . . . 3 21 52 94 51 16 59 58 238 117 355

2021 . . . . 3 21 52 94 53 16 61 59 240 120 360

2022 . . . . 3 21 52 93 54 17 62 61 241 123 365

2023 . . . . 3 22 53 93 55 18 64 63 243 127 370

2024 . . . . 3 21 53 92 56 18 65 65 244 130 375

2025 . . . . 3 21 54 91 57 19 67 67 246 134 379

2026 . . . . 3 21 55 90 58 19 68 69 247 137 384

2027 . . . . 3 21 55 89 59 20 69 72 248 141 388
2003 SSI Annual Report

40

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.

1 Age-specific information for these years not yet available.

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, 1974-2027

[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/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1,710 2,286 3,996

1975 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,007 2,307 4,314

1976 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,088 2,148 4,236

1977 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,187 2,051 4,238

1978 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,249 1,968 4,217

1979 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 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

Estimated:

2003 . . . . 959 1,044 1,417 1,508 541 216 478 759 5,685 1,237 6,923

2004 . . . . 1,000 1,066 1,433 1,566 547 221 471 755 5,833 1,226 7,058

2005 . . . . 1,029 1,078 1,436 1,623 556 227 464 752 5,948 1,216 7,165

2006 . . . . 1,044 1,089 1,429 1,680 570 230 466 743 6,042 1,210 7,252

2007 . . . . 1,050 1,105 1,416 1,736 586 234 470 735 6,127 1,205 7,332

2008 . . . . 1,055 1,120 1,398 1,790 603 236 478 723 6,201 1,201 7,403

2009 . . . . 1,062 1,133 1,376 1,842 619 240 483 714 6,271 1,198 7,469

2010 . . . . 1,073 1,144 1,353 1,891 634 244 491 705 6,340 1,195 7,536

2011 . . . . 1,088 1,152 1,330 1,930 655 248 503 694 6,403 1,197 7,600

2012 . . . . 1,102 1,158 1,310 1,962 679 252 515 686 6,463 1,201 7,664

2013 . . . . 1,116 1,165 1,294 1,991 700 256 532 678 6,524 1,210 7,733

2014 . . . . 1,130 1,172 1,281 2,014 724 260 550 672 6,581 1,222 7,804

2015 . . . . 1,143 1,177 1,275 2,031 746 265 570 668 6,637 1,238 7,875

2016 . . . . 1,154 1,183 1,273 2,040 768 271 591 667 6,690 1,258 7,948

2017 . . . . 1,164 1,188 1,277 2,044 790 278 612 669 6,741 1,280 8,021

2018 . . . . 1,170 1,196 1,282 2,044 813 284 632 673 6,789 1,305 8,094

2019 . . . . 1,176 1,203 1,289 2,039 837 291 652 682 6,835 1,334 8,169

2020 . . . . 1,181 1,210 1,296 2,031 861 298 671 694 6,878 1,365 8,243

2021 . . . . 1,186 1,218 1,303 2,020 884 307 689 710 6,918 1,399 8,317

2022 . . . . 1,192 1,224 1,313 2,006 905 317 706 729 6,956 1,435 8,391

2023 . . . . 1,197 1,229 1,324 1,991 925 326 722 750 6,992 1,473 8,464

2024 . . . . 1,202 1,232 1,338 1,974 943 336 738 773 7,025 1,511 8,536

2025 . . . . 1,206 1,235 1,354 1,956 960 345 754 797 7,056 1,551 8,606

2026 . . . . 1,209 1,239 1,368 1,939 974 355 769 821 7,084 1,590 8,674

2027 . . . . 1,212 1,243 1,381 1,922 985 365 783 846 7,109 1,629 8,738
41

2003 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 Age-specific information for these years not yet available.

3 Includes 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

4 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

January 1 of years 1979 and later are actually paid in December of the previous year. Thus, for example,

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 1974-2003

[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 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ $2,050 $1,783 $3,833

1975 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,471 1,843 4,314

1976 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,727 1,785 4,512

1977 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,966 1,737 4,703

1978 3 ........ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 3,449 1,847 5,296

1979 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 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 4 ........ 5,712 5,745 7,284 7,598 1,988 771 1,408 2,598 29,097 4,006 33,103
2003 SSI Annual Report

42

the calendar year 2002 payment amounts shown in table IV.C1 reflect payments made in January-December, 2002, and include the payments due on January 1, 2003 (which were actually paid in December,

2002), but not the payments due on January 1, 2002 (which were actually paid in December, 2001). 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

1978-2003. 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 Age-specific information for these years not yet available.

2 Payment due on October 1 of fiscal year paid in previous fiscal year.

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.

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 expen1 Fiscal years 1977 and later cover the period from October 1 of the previous calendar year to September 30 of the year. For example, fiscal year 2003 payments include payments made from October 1, 2002 through September 30, 2003.

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 1978-2003

[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 . . . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ $3,386 $1,848 $5,234

1979 2 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 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 2 . . . . 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 2 . . . . 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 2 . . . . 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 2 . . . . 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 2 . . . . 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 2 . . . . 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 3 . . . . 5,576 5,653 7,204 7,441 1,965 761 1,419 2,580 28,601 3,998 32,600
43

2003 SSI Annual Report

ditures 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 1974-2002, and the full 25-year projection period, 2003-27. 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 an estimated 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 2003 Dollars, Calendar Years 1980-2030

[In billions]

$0

$10

$20

$30

$40

$50

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Constant 2003 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Estimated
2003 SSI Annual Report

44

1 Age-specific information for these years not yet available.

2 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 2003 Dollars, Calendar Years 1974-2027

[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 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ $7,445 $6,473 $13,918

1975 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,225 6,135 14,360

1976 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,586 5,620 14,207

1977 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,773 5,136 13,909

1978 2 . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 9,469 5,070 14,540

1979 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,737 4,336 13,073

1980 . . . . $863 $2,022 $1,588 $3,085 $1,182 $60 $1,395 $2,672 8,801 4,067 12,867

1981 . . . . 903 2,126 1,617 3,039 1,289 62 1,266 2,602 9,037 3,868 12,905

1982 . . . . 952 2,250 1,641 2,954 1,308 71 1,170 2,535 9,177 3,706 12,882

1983 . . . . 1,035 2,476 1,778 3,075 1,396 104 1,126 2,598 9,864 3,724 13,588

1984 . . . . 1,149 2,748 1,967 3,199 1,457 177 1,169 2,636 10,698 3,805 14,503

1985 . . . . 1,240 2,879 2,106 3,242 1,404 269 1,178 2,525 11,139 3,703 14,841

1986 . . . . 1,378 3,199 2,408 3,388 1,406 347 1,212 2,452 12,127 3,664 15,791

1987 . . . . 1,440 3,331 2,590 3,453 1,354 415 1,225 2,312 12,583 3,537 16,120

1988 . . . . 1,471 3,433 2,800 3,547 1,347 468 1,255 2,232 13,067 3,486 16,553

1989 . . . . 1,506 3,570 3,008 3,644 1,376 537 1,294 2,173 13,641 3,468 17,109

1990 . . . . 1,676 3,714 3,344 3,898 1,352 568 1,379 2,139 14,552 3,517 18,070

1991 . . . . 2,250 4,196 3,978 4,432 1,422 620 1,567 2,196 16,898 3,763 20,662

1992 . . . . 4,110 5,083 4,662 4,940 1,465 635 1,698 2,203 20,894 3,901 24,794

1993 . . . . 4,955 5,659 5,278 5,308 1,531 650 1,865 2,229 23,380 4,093 27,474

1994 . . . . 5,154 5,571 5,771 5,608 1,576 666 1,937 2,244 24,346 4,181 28,527

1995 . . . . 5,599 5,743 6,198 5,886 1,631 680 1,923 2,285 25,737 4,207 29,944

1996 . . . . 5,782 5,849 6,561 6,191 1,668 689 1,921 2,311 26,740 4,232 30,972

1997 . . . . 5,622 5,749 6,359 6,183 1,720 701 1,812 2,338 26,334 4,150 30,484

1998 . . . . 5,599 5,808 6,655 6,515 1,791 717 1,739 2,408 27,085 4,148 31,233

1999 . . . . 5,336 5,663 6,825 6,663 1,832 721 1,659 2,435 27,040 4,093 31,133

2000 . . . . 5,107 5,460 6,829 6,710 1,831 720 1,567 2,462 26,657 4,030 30,686

2001 . . . . 5,298 5,557 7,076 7,041 1,908 740 1,526 2,547 27,620 4,074 31,693

2002 . . . . 5,481 5,615 7,216 7,301 1,954 755 1,467 2,580 28,323 4,047 32,371

Estimated:

2003 . . . . 5,712 5,745 7,284 7,598 1,988 771 1,408 2,598 29,097 4,006 33,103

2004 . . . . 6,008 5,879 7,403 7,892 2,009 789 1,388 2,610 29,980 3,997 33,977

2005 . . . . 6,205 5,931 7,411 8,139 2,032 807 1,367 2,619 30,524 3,987 34,511

2006 . . . . 6,327 5,983 7,377 8,409 2,082 817 1,374 2,607 30,995 3,981 34,976

2007 . . . . 6,386 6,080 7,337 8,698 2,144 833 1,385 2,585 31,477 3,970 35,447

2008 . . . . 6,434 6,184 7,279 8,995 2,210 845 1,406 2,559 31,948 3,966 35,914

2009 . . . . 6,497 6,279 7,199 9,283 2,275 862 1,424 2,540 32,396 3,963 36,359

2010 . . . . 6,589 6,364 7,116 9,548 2,343 881 1,446 2,518 32,841 3,963 36,804

2011 . . . . 6,697 6,428 7,029 9,769 2,432 897 1,477 2,487 33,252 3,964 37,216

2012 . . . . 6,810 6,482 6,951 9,956 2,528 916 1,512 2,463 33,644 3,976 37,619

2013 . . . . 6,917 6,529 6,887 10,110 2,617 936 1,557 2,438 33,996 3,994 37,990

2014 . . . . 7,024 6,570 6,838 10,229 2,712 952 1,608 2,420 34,324 4,029 38,353

2015 . . . . 7,119 6,604 6,817 10,305 2,800 972 1,664 2,410 34,618 4,074 38,692

2016 . . . . 7,213 6,652 6,833 10,362 2,893 997 1,726 2,410 34,951 4,136 39,087

2017 . . . . 7,294 6,693 6,869 10,385 2,986 1,026 1,787 2,419 35,252 4,205 39,458

2018 . . . . 7,343 6,747 6,913 10,381 3,082 1,053 1,846 2,437 35,519 4,283 39,801

2019 . . . . 7,403 6,804 6,970 10,371 3,185 1,083 1,905 2,471 35,818 4,376 40,193

2020 . . . . 7,450 6,859 7,022 10,337 3,288 1,113 1,959 2,517 36,069 4,475 40,544

2021 . . . . 7,500 6,916 7,079 10,288 3,385 1,151 2,010 2,576 36,320 4,585 40,905

2022 . . . . 7,548 6,961 7,144 10,224 3,477 1,193 2,058 2,644 36,548 4,702 41,250

2023 . . . . 7,594 7,006 7,223 10,161 3,568 1,234 2,105 2,720 36,786 4,825 41,611

2024 . . . . 7,642 7,039 7,322 10,097 3,654 1,277 2,152 2,803 37,031 4,955 41,986

2025 . . . . 7,677 7,061 7,412 10,014 3,728 1,317 2,198 2,888 37,208 5,086 42,295

2026 . . . . 7,689 7,083 7,491 9,926 3,790 1,357 2,246 2,978 37,337 5,224 42,560

2027 . . . . 7,664 7,093 7,543 9,823 3,828 1,394 2,287 3,070 37,345 5,357 42,702
45

2003 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, and may be incomplete.

2 Includes amounts not distributed by recipient category.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-2002

[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

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2002

[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 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 2002 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.

Welfare reform legislation 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 2003 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 0.25 percent of

GDP by 2027.

1 The total value of goods and services produced in the United States.

 Figure IV.D1.—SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1980-2030

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

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 Estimated
47

2003 SSI Annual Report

1 Age-specific information for these years not yet available.

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 1974-2027 

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 . . . . $1,501 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 0.137 0.119 0.255

1975 . . . . 1,635 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .151 .113 .264

1976 . . . . 1,824 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .150 .098 .247

1977 . . . . 2,031 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .146 .085 .232

1978 . . . . 2,296 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .150 .080 .231

1979 . . . . 2,566 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .138 .069 .207

1980 . . . . 2,796 0.014 0.033 0.026 0.051 0.019 0.001 0.023 0.044 .145 .067 .212

1981 . . . . 3,131 .015 .034 .026 .049 .021 .001 .021 .042 .146 .063 .209

1982 . . . . 3,259 .016 .037 .027 .049 .022 .001 .019 .042 .151 .061 .213

1983 . . . . 3,535 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 . . . . 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .212

1985 . . . . 4,213 .017 .041 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 . . . . 4,453 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .214

1987 . . . . 4,742 .019 .044 .034 .045 .018 .005 .016 .030 .166 .047 .212

1988 . . . . 5,108 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .210

1989 . . . . 5,489 .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 . . . . 5,986 .028 .052 .050 .055 .018 .008 .020 .027 .211 .047 .257

1992 . . . . 6,319 .050 .062 .057 .060 .018 .008 .021 .027 .254 .047 .301

1993 . . . . 6,642 .059 .067 .063 .063 .018 .008 .022 .026 .278 .049 .326

1994 . . . . 7,054 .059 .064 .066 .064 .018 .008 .022 .026 .279 .048 .327

1995 . . . . 7,401 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 . . . . 7,813 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 . . . . 8,318 .059 .060 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 . . . . 8,782 .057 .059 .067 .066 .018 .007 .018 .024 .273 .042 .315

1999 . . . . 9,274 .052 .055 .067 .065 .018 .007 .016 .024 .264 .040 .304

2000 . . . . 9,825 .049 .052 .065 .064 .017 .007 .015 .024 .254 .038 .293

2001 . . . . 10,082 .051 .053 .068 .067 .018 .007 .015 .024 .264 .039 .303

2002 . . . . 10,445 .051 .053 .067 .068 .018 .007 .014 .024 .265 .038 .303

Estimated:

2003 . . . . 10,915 .052 .053 .067 .070 .018 .007 .013 .024 .267 .037 .303

2004 . . . . 11,518 .053 .052 .066 .070 .018 .007 .012 .023 .267 .036 .302

2005 . . . . 12,182 .054 .051 .064 .070 .018 .007 .012 .023 .263 .034 .298

2006 . . . . 12,888 .053 .050 .062 .071 .017 .007 .012 .022 .260 .033 .294

2007 . . . . 13,625 .052 .050 .060 .071 .018 .007 .011 .021 .258 .032 .290

2008 . . . . 14,372 .051 .049 .058 .072 .018 .007 .011 .020 .255 .032 .287

2009 . . . . 15,137 .051 .049 .056 .073 .018 .007 .011 .020 .253 .031 .284

2010 . . . . 15,925 .050 .049 .054 .073 .018 .007 .011 .019 .251 .030 .282

2011 . . . . 16,740 .050 .048 .053 .073 .018 .007 .011 .019 .249 .030 .279

2012 . . . . 17,575 .050 .048 .051 .073 .019 .007 .011 .018 .247 .029 .277

2013 . . . . 18,437 .050 .047 .050 .073 .019 .007 .011 .018 .245 .029 .274

2014 . . . . 19,326 .050 .047 .049 .073 .019 .007 .011 .017 .243 .029 .272

2015 . . . . 20,245 .050 .046 .048 .072 .020 .007 .012 .017 .241 .028 .270

2016 . . . . 21,196 .049 .046 .047 .071 .020 .007 .012 .017 .240 .028 .268

2017 . . . . 22,194 .049 .045 .046 .070 .020 .007 .012 .016 .238 .028 .266

2018 . . . . 23,231 .049 .045 .046 .069 .020 .007 .012 .016 .236 .028 .264

2019 . . . . 24,320 .048 .044 .046 .068 .021 .007 .012 .016 .234 .029 .263

2020 . . . . 25,453 .048 .044 .045 .066 .021 .007 .013 .016 .232 .029 .261

2021 . . . . 26,638 .047 .044 .045 .065 .021 .007 .013 .016 .230 .029 .259

2022 . . . . 27,873 .047 .043 .045 .064 .022 .007 .013 .016 .228 .029 .257

2023 . . . . 29,162 .047 .043 .044 .062 .022 .008 .013 .017 .226 .030 .255

2024 . . . . 30,506 .046 .043 .044 .061 .022 .008 .013 .017 .224 .030 .254

2025 . . . . 31,911 .046 .042 .044 .060 .022 .008 .013 .017 .221 .030 .252

2026 . . . . 33,383 .045 .041 .044 .058 .022 .008 .013 .017 .219 .031 .249

2027 . . . . 34,927 .044 .041 .043 .057 .022 .008 .013 .018 .215 .031 .246
2003 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 General Accounting 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.

2 Includes payments to State Vocational Rehabilitation (VR) agencies for VR services and payments for

referral and monitoring services for Drug Addicts and Alcoholics, which terminated effective January, 1997.

3 Reflects a one-time payment to State VR agencies for prior year expenses.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2003

[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 (estimated)............................................... 3,063 85.1
49

2003 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 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.
2003 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” 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 Residence

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

2003 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.”

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.
2003 SSI Annual Report

52

Act 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

$58 (indexed to 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

2003 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.
2003 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 only be made 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.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
55

2003 SSI Annual Report

Act

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.

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 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 cash disability cash benefits to a

beneficiary because of work or earnings.

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 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.
2003 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.
57

2003 SSI Annual Report

Act

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.

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.
2003 SSI Annual Report

58

Act

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.

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.

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 Resulting in Nonpayment of Benefits for False or Misleading 

Statements

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.
59

2003 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).
2003 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.

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.
61

2003 SSI Annual Report

Act

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.

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.
2003 SSI Annual Report

62

Act

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.

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.
63

2003 SSI Annual Report

Act

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.

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.

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 handicapped person.

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.
2003 SSI Annual Report

64

Act

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 handicapped person. 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).

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

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.
65

2003 SSI Annual Report

Act

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.

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.

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.
2003 SSI Annual Report

66

Act

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.

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.
67

2003 SSI Annual Report

Act

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.

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.
2003 SSI Annual Report

68

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.
69

2003 SSI Annual Report

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.
2003 SSI Annual Report

70

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 by offsetting Social Security benefits, with a maximum monthly offset of no more than 10 percent of the Social

Security benefit.
71

2003 SSI Annual Report

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. 
2003 SSI Annual Report

72

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 (which increases gradually from the current amount of $600 for each

child to $1,000 per child in 2010);

 • Up to $10 of earned income in a month 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 (If the total

amount of the infrequent or irregular income exceeds $10, this exclusion cannot be used.);

 • Up to $1,340 per month but not more than $5,410 in a calendar year received by a blind or disabled

child 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; 

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.
73

2003 SSI Annual Report

 • 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);

 • Any portion of a grant, scholarship or fellowship used for paying tuition, fees or other necessary educational expenses. Portions set aside for food, clothing 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 $20 of unearned income in a month 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;
2003 SSI Annual Report

74

 • 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;

 • 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; and

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416.

3. Resource Exclusions

 • The home (including the land appertaining thereto);

 • Household goods and personal effects to the extent that their total value does not exceed $2,000;

 • An automobile may be totally excluded if: (1) it is necessary for employment; (2) it is necessary for

the medical treatment of a specific or regular medical problem; (3) it is modified for the operation by

or transportation of, a handicapped individual; or (4) it is necessary to perform essential daily activities. If the automobile does not meet any of the above requirements, it may be excluded to the extent

that its current-market value does not exceed $4,500;

 • 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 6 months following receipt);

 • Housing assistance;
75

2003 SSI Annual Report

 • Refunds of Federal income taxes and advances made by an employer relating to an earned income tax

credit, (for the month following receipt);

 • Refundable child tax credit ($600 per child in the current year, gradually increasing to $1,000 per

child in 2010) in the month of receipt and in the following month;

 • 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.
2003 SSI Annual Report

76

C. HISTORICAL ALLOWANCE DATA

At the end of 2002, 82 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 the process of 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 190 steps, and generally

requiring about 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 2002.

Methods used for estimating results (through February 2003) for claims filed in 2002—Although decision

counts are available for 2002 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 February 2003) for 2002 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
77

2003 SSI Annual Report

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 February 2003, whereas the final research files will reflect information through June 2003. Actual data for 2002

will be available to replace these estimates in the 2004 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2001 filers are as of June 2002. Results for those years’ filers have been updated to

include OHA results through July 2002. 

 • Data for 2002 filers are preliminary estimates as of February 2003, and reflect larger numbers of

claims still pending. February 2003 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.
2003 SSI Annual Report

78

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 1,137,989 — 343,492 30.2 794,497 69.8 329,526 41.5

2001 1,212,943 18,519 357,828 30.0 836,596 70.0 320,862 38.4

2002 1,438,200 285,600 366,700 31.8 785,900 68.2 217,300 27.6

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 11.9 427,228 294,538 68.9 — 170,273 57.8 124,265

1994 — 55,822 11.6 426,711 292,961 68.7 — 164,291 56.1 128,670

1995 — 51,697 11.8 387,469 266,241 68.7 2,811 143,122 54.3 120,308

1996 — 49,263 12.1 357,162 244,209 68.4 3,622 132,334 55.0 108,253

1997 — 47,573 13.4 306,561 215,414 70.3 5,236 119,748 55.9 94,295

1998 — 46,507 13.7 292,272 204,910 70.1 9,487 111,718 57.0 84,216

1999 — 42,135 13.3 274,269 194,644 71.0 20,431 110,708 58.3 79,336

2000 — 38,549 14.0 237,078 167,176 70.5 68,719 88,421 58.0 63,935

2001 37,626 25,964 11.9 191,385 123,477 64.5 151,205 23,243 60.9 14,916

2002 53,500 16,390 13.3 106,410 38,850 36.5 74,120 3,940 68.8 1,790

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 — 1,503,278 644,511 — 858,767

1994 1,436,958 — 1,436,958 574,108 — 862,850

1995 1,318,416 — 1,318,416 517,903 2,811 797,702

1996 1,247,926 — 1,247,926 486,948 3,622 757,356

1997 1,110,898 — 1,110,898 460,160 5,236 645,502

1998 1,108,957 — 1,108,957 480,959 9,487 618,511

1999 1,104,975 — 1,104,975 479,450 20,431 605,094

2000 1,137,989 — 1,137,989 470,462 68,719 598,808

2001 1,212,943 18,519 1,194,424 407,035 188,831 598,558

2002 1,438,200 285,600 1,152,600 387,030 127,620 637,950
79

2003 SSI Annual Report

1 Data for claims filed in 1988-2001 reflect results as of June 2002 at the DDS level and as of July 2002 at the OHA level. The numbers of total claims filed

for 1999-2001 are subject to change. Data for claims filed in 2002 are preliminary estimates as of February 2003. The ultimate number 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 where 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 0.2 60.5 39.3 0.2 60.5

1996 — 39.0 .3 60.7 39.0 .3 60.7

1997 — 41.4 .5 58.1 41.4 .5 58.1

1998 — 43.4 .9 55.8 43.4 .9 55.8

1999 — 43.4 1.8 54.8 43.4 1.8 54.8

2000 — 41.3 6.0 52.6 41.3 6.0 52.6

2001 1.5 33.6 15.6 49.3 34.1 15.8 50.1

2002 19.9 26.9 8.9 44.4 33.6 11.1 55.3
2003 SSI Annual Report

80

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 349,477 — 137,216 39.3 212,261 60.7 47,890 22.6

2001 368,185 5,186 150,011 41.3 212,988 58.7 44,935 21.1

2002 406,400 84,300 144,500 44.9 177,600 55.1 29,480 16.6

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 31,177 48.2 — 10,634 34.1 20,543

1994 — 11,332 12.3 80,761 38,383 47.5 — 12,936 33.7 25,447

1995 — 10,287 11.8 76,554 35,776 46.7 244 10,897 30.7 24,635

1996 — 9,355 12.5 65,658 28,070 42.8 295 8,794 31.7 18,981

1997 — 8,266 16.2 42,705 19,028 44.6 333 6,936 36.1 12,284

1998 — 7,799 15.6 42,237 18,843 44.6 700 6,855 37.6 11,363

1999 — 7,196 15.5 39,377 17,934 45.5 1,791 7,323 38.2 11,832

2000 — 6,866 18.1 31,000 14,251 46.0 7,674 6,214 37.4 10,387

2001 4,307 5,129 17.6 24,090 10,059 41.8 17,471 1,639 41.0 2,358

2002 6,100 2,400 14.5 14,100 2,950 20.9 9,230 190 31.7 410

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 — 496,131 234,240 — 261,891

1994 525,013 — 525,013 196,487 — 328,526

1995 487,730 — 487,730 165,415 244 322,071

1996 453,473 — 453,473 145,565 295 307,613

1997 332,032 — 332,032 121,730 333 209,969

1998 335,732 — 335,732 137,903 700 197,129

1999 342,153 — 342,153 143,062 1,791 197,300

2000 349,477 — 349,477 150,296 7,674 191,507

2001 368,185 5,186 362,999 156,779 21,778 184,442

2002 406,400 84,300 322,100 147,090 15,330 159,680
81

2003 SSI Annual Report

1 Data for claims filed in 1991-2001 reflect results as of June 2002 at the DDS level and as of July 2002 at the OHA level. The numbers of total claims filed

for 1999-2001 are subject to change. Data for claims filed in 2002 are preliminary estimates as of February 2003. The ultimate number 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 where 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.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 0.1 66.0 33.9 0.1 66.0

1996 — 32.1 .1 67.8 32.1 .1 67.8

1997 — 36.7 .1 63.2 36.7 .1 63.2

1998 — 41.1 .2 58.7 41.1 .2 58.7

1999 — 41.8 .5 57.7 41.8 .5 57.7

2000 — 43.0 2.2 54.8 43.0 2.2 54.8

2001 1.4 42.6 5.9 50.1 43.2 6.0 50.8

2002 20.7 36.2 3.8 39.3 45.7 4.8 49.6
2003 SSI Annual Report

82

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. Scheduled redeterminations are selected annually or once every 6

years depending on the likelihood of payment error in the case. Except for certain institutionalized individuals, all recipients are periodically scheduled for a redetermination. 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 selected but not completed during

the fiscal year due to 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 2002, SSA released over 550,000 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

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

Table V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2002

[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
83

2003 SSI Annual Report

continuing disability reviews (CDRs) procedures should be applied with respect to both the title II and title

XVI programs, title XVI was not amended to accomplish this. 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 reach 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 an 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 204,872 cases for which a scheduled title XVI CDR was processed in 2002.

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 September 12, 2002, presenting estimates of the effects of CDRs conducted in fiscal year 2001.
2003 SSI Annual Report

84

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 7,436 69.3

1998 81,185 68,533 84.4 12,652 15.6 8,839 69.9

1999 80,816 70,353 87.1 10,463 12.9 6,412 61.3

2000 105,787 93,962 88.8 11,825 11.2 7,119 60.2

2001 110,341 99,666 90.3 10,675 9.7 6,595 61.8

2002 103,947 92,069 88.6 11,878 11.4 6,822 57.4

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 8,838 74.3

1998 75,071 64,829 86.4 10,242 13.6 7,374 72.0

1999 140,429 125,079 89.1 15,350 10.9 10,587 69.0

2000 173,470 156,065 90.0 17,405 10.0 11,201 64.4

2001 143,902 126,610 88.0 17,292 12.0 10,623 61.4

2002 172,527 150,837 87.4 21,690 12.6 12,987 59.9

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 16,274 71.9

1998 156,256 133,362 85.3 22,894 14.7 16,213 70.8

1999 221,245 195,432 88.3 25,813 11.7 16,999 65.9

2000 279,257 250,027 89.5 29,230 10.5 18,320 62.7

2001 254,243 226,276 89.0 27,967 11.0 17,218 61.6

2002 276,474 242,906 87.9 33,568 12.1 19,809 59.0

Fiscal year of

initial DDS

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 6

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 91 4,297 58.5 3,048 2,315 76.0 64 953 42.3 1,298

1998 102 5,512 63.1 3,225 2,500 77.5 72 1,110 45.7 1,318

1999 214 3,974 64.1 2,224 1,574 70.8 59 651 43.0 864

2000 284 4,428 64.8 2,407 1,640 68.1 224 584 41.2 832

2001 353 4,178 66.9 2,064 1,377 66.7 713 256 38.6 408

2002 1,503 3,788 71.2 1,531 703 45.9 629 30 40.5 44

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 116 5,271 60.4 3,451 2,662 77.1 86 977 37.9 1,599

1998 142 4,530 62.6 2,702 2,066 76.5 102 746 38.0 1,218

1999 295 6,610 64.2 3,682 2,540 69.0 49 943 37.9 1,548

2000 288 6,827 62.6 4,086 2,813 68.8 268 918 36.1 1,627

2001 432 6,221 61.0 3,970 2,577 64.9 1,236 443 33.0 898

2002 3,585 6,291 66.9 3,111 1,444 46.4 1,241 62 30.5 141

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 207 9,568 59.6 6,499 4,977 76.6 150 1,930 40.0 2,897

1998 244 10,042 62.9 5,927 4,566 77.0 174 1,856 42.3 2,536

1999 509 10,584 64.2 5,906 4,114 69.7 108 1,594 39.8 2,412

2000 572 11,255 63.4 6,493 4,453 68.6 492 1,502 37.9 2,459

2001 785 10,399 63.3 6,034 3,954 65.5 1,949 699 34.9 1,306

2002 5,088 10,079 68.5 4,642 2,147 46.3 1,870 92 33.2 185
85

2003 SSI Annual Report

1 Data reflect results as of January 2003. The ultimate number 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 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases have a

minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

Table V.D2.—SSI Disabled Adult Reviews: Disposition1 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 2003

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 45,991 155 5,320 89.4 0.3 10.3

1998 81,185 75,155 174 5,856 92.6 .2 7.2

1999 80,816 74,978 273 5,565 92.8 .3 6.9

2000 105,787 98,974 508 6,305 93.6 .5 6.0

2001 110,341 104,100 1,066 5,175 94.3 1.0 4.7

2002 103,947 95,887 2,132 5,928 92.2 2.1 5.7

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 63,910 202 5,445 91.9 .3 7.8

1998 75,071 70,105 244 4,722 93.4 .3 6.3

1999 140,429 132,632 344 7,453 94.4 .2 5.3

2000 173,470 163,810 556 9,104 94.4 .3 5.2

2001 143,902 133,274 1,668 8,960 92.6 1.2 6.2

2002 172,527 157,190 4,826 10,511 91.1 2.8 6.1

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 121,023 109,901 357 10,765 90.8 .3 8.9

1998 156,256 145,260 418 10,578 93.0 .3 6.8

1999 221,245 207,610 617 13,018 93.8 .3 5.9

2000 279,257 262,784 1,064 15,409 94.1 .4 5.5

2001 254,243 237,374 2,734 14,135 93.4 1.1 5.6

2002 276,474 253,077 6,958 16,439 91.5 2.5 5.9
2003 SSI Annual Report

86

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 36.8 842 32.3

1998 17,620 6,092 34.6 11,528 65.4 3,692 32.0

1999 9,773 4,114 42.1 5,659 57.9 1,666 29.4

2000 10,178 4,566 44.9 5,612 55.1 1,625 29.0

2001 9,086 4,152 45.7 4,934 54.3 1,446 29.3

2002 12,732 5,869 46.1 6,863 53.9 1,895 27.6

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 16,992 64.4

1998 40,945 21,453 52.4 19,492 47.6 11,088 56.9

1999 49,557 27,413 55.3 22,144 44.7 11,052 49.9

2000 51,713 28,863 55.8 22,850 44.2 11,238 49.2

2001 48,944 28,167 57.5 20,777 42.5 10,355 49.8

2002 54,947 32,388 58.9 22,559 41.1 11,493 50.9

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 4 66.7

1998 91,157 67,203 73.7 23,954 26.3 13,381 55.9

1999 183,211 129,420 70.6 53,791 29.4 28,957 53.8

2000 140,699 106,583 75.8 34,116 24.2 17,445 51.1

2001 95,835 72,896 76.1 22,939 23.9 12,294 53.6

2002 163,768 130,434 79.6 33,334 20.4 17,693 53.1

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 17,838 61.5

1998 149,722 94,748 63.3 54,974 36.7 28,161 51.2

1999 242,541 160,947 66.4 81,594 33.6 41,675 51.1

2000 202,590 140,012 69.1 62,578 30.9 30,308 48.4

2001 153,865 105,215 68.4 48,650 31.6 24,095 49.5

2002 231,447 168,691 72.9 62,756 27.1 31,081 49.5
87

2003 SSI Annual Report

Table V.D3.—SSI Disabled Child Reviews: Disposition1 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 6

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 21 292 35.6 529 238 45.0 3 50 21.3 185

1998 49 1,234 33.9 2,409 1,146 47.6 12 237 20.9 897

1999 27 607 37.0 1,032 498 48.3 23 82 17.3 393

2000 63 610 39.1 952 453 47.6 58 86 21.8 309

2001 57 503 36.2 886 403 45.5 243 18 11.3 142

2002 613 514 40.1 768 233 30.3 204 6 20.7 23

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 252 4,591 27.4 12,149 6,486 53.4 92 1,466 22.9 4,928

1998 170 3,074 28.2 7,844 4,408 56.2 73 974 22.5 3,361

1999 170 3,364 30.9 7,518 4,397 58.5 200 991 23.6 3,206

2000 255 3,578 32.6 7,405 4,131 55.8 545 874 24.4 2,712

2001 421 3,250 32.7 6,684 3,737 55.9 1,804 462 23.9 1,471

2002 3,287 2,996 36.5 5,210 2,219 42.6 1,922 86 29.0 211

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 1 33.3 2 1 50.0 — — 0.0 1

1998 106 4,460 33.6 8,815 5,575 63.2 95 1,280 23.4 4,200

1999 561 9,325 32.8 19,071 11,931 62.6 472 2,486 21.7 8,973

2000 478 6,439 38.0 10,528 6,342 60.2 888 1,228 22.5 4,226

2001 621 4,615 39.5 7,058 4,269 60.5 2,277 437 21.9 1,555

2002 5,323 5,501 44.5 6,869 3,184 46.4 2,878 60 19.6 246

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 274 4,884 27.8 12,680 6,725 53.0 95 1,516 22.9 5,114

1998 325 8,768 31.5 19,068 11,129 58.4 180 2,491 22.8 8,458

1999 758 13,296 32.5 27,621 16,826 60.9 695 3,559 22.1 12,572

2000 796 10,627 36.0 18,885 10,926 57.9 1,491 2,188 23.2 7,247

2001 1,099 8,368 36.4 14,628 8,409 57.5 4,324 917 22.4 3,168

2002 9,223 9,011 41.2 12,847 5,636 43.9 5,004 152 24.1 480
2003 SSI Annual Report

88

1 Data reflect results as of January 2003. The ultimate number 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 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases have a

minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

Table V.D3.—SSI Disabled Child Reviews: Disposition1 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 2003

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 24 2,243 68.0 0.3 31.6

1998 17,620 7,563 61 9,996 42.9 .3 56.7

1999 9,773 4,803 50 4,920 49.1 .5 50.3

2000 10,178 5,262 121 4,795 51.7 1.2 47.1

2001 9,086 4,673 300 4,113 51.4 3.3 45.3

2002 12,732 6,389 817 5,526 50.2 6.4 43.4

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 28,488 344 20,002 58.3 .7 41.0

1998 40,945 25,501 243 15,201 62.3 .6 37.1

1999 49,557 31,768 370 17,419 64.1 .7 35.1

2000 51,713 33,315 800 17,598 64.4 1.5 34.0

2001 48,944 31,879 2,225 14,840 65.1 4.5 30.3

2002 54,947 35,470 5,209 14,268 64.6 9.5 26.0

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 1 4 64.3 7.1 28.6

1998 91,157 72,943 201 18,013 80.0 .2 19.8

1999 183,211 141,231 1,033 40,947 77.1 .6 22.3

2000 140,699 114,250 1,366 25,083 81.2 1.0 17.8

2001 95,835 77,948 2,898 14,989 81.3 3.0 15.6

2002 163,768 135,995 8,201 19,572 83.0 5.0 12.0

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 33,321 369 22,249 59.6 .7 39.8

1998 149,722 106,007 505 43,210 70.8 .3 28.9

1999 242,541 177,802 1,453 63,286 73.3 .6 26.1

2000 202,590 152,827 2,287 47,476 75.4 1.1 23.4

2001 153,865 114,500 5,423 33,942 74.4 3.5 22.1

2002 231,447 177,854 14,227 39,366 76.8 6.1 17.0
89

2003 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), plans 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 the same information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the Quarterly Report on SSI Disabled Workers

and Work Incentive Provisions prepared by the Office of Research, Evaluation and Statistics, Social Security Administration.
2003 SSI Annual Report

90

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, $740 in January 2001, $780 in January 2002, and $800 in January 2003. Increases in the SGA level

in subsequent years will be based on increases in the national average wage index.

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.

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, 1987-2002

Year

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . 14,559 142,664 15,632 172,855

1988 . . . . . . . . . . . . . . . . . . . . . . . 19,920 153,599 15,625 189,144

1989 . . . . . . . . . . . . . . . . . . . . . . . 25,655 161,928 18,254 205,837

1990 . . . . . . . . . . . . . . . . . . . . . . . 13,994 182,421 23,517 219,932

1991 . . . . . . . . . . . . . . . . . . . . . . . 15,531 186,824 27,264 229,619

1992 . . . . . . . . . . . . . . . . . . . . . . . 17,603 199,665 31,649 248,917

1993 . . . . . . . . . . . . . . . . . . . . . . . 20,028 210,322 35,299 265,649

1994 . . . . . . . . . . . . . . . . . . . . . . . 24,315 217,478 40,683 282,476

1995 . . . . . . . . . . . . . . . . . . . . . . . 28,060 223,573 47,002 298,635

1996 . . . . . . . . . . . . . . . . . . . . . . . 31,085 225,310 51,905 308,300

1997 . . . . . . . . . . . . . . . . . . . . . . . 34,673 228,093 57,089 319,855

1998 . . . . . . . . . . . . . . . . . . . . . . . 37,271 229,662 59,542 326,475

1999 . . . . . . . . . . . . . . . . . . . . . . . 25,528 245,825 69,265 340,618

2000 . . . . . . . . . . . . . . . . . . . . . . . 27,542 249,313 83,572 360,427

2001 . . . . . . . . . . . . . . . . . . . . . . . 22,100 247,555 76,455 346,110

2002 . . . . . . . . . . . . . . . . . . . . . . . 17,271 241,462 82,177 340,910

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

as of December, 1987-2002

[In thousands]

0

50

100

150

200

250

1987 1990 1993 1996 1999 2002

Year

1619(a) workers

1619(b) workers

Other workers
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2003 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, $740 in January 2001, $780 in January 2002, and $800 in January 2003. Increases in the SGA level

in subsequent years will be based on increases in the national average wage index.

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, 1990-2002

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

Table V.E3.—Average Monthly Earnings of SSI Federally-Administered Blind or

Disabled Working Recipients, as of December, 1987-2002 

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 SSI Annual Report

92

2. Vocational Rehabilitation/Ticket to Work Program

Since the inception of the SSI program, SSA has made provision for blind or disabled individuals who are

receiving SSI benefits to be referred to State Vocational Rehabilitation (VR) agencies. The 1980 amendments provided for the continuation of SSI payments for certain disabled individuals enrolled in VR programs whose disability ceased due to medical recovery. This benefit continuation provision applied only if

the VR program was approved by SSA and SSA determined that continuation or completion of such program would increase the likelihood that the individual will be permanently removed from the SSI rolls.

This provision was extended to SSI blind recipients effective April, 1988. In 1994, regulations were

amended to provide access to alternate private and non-State public VR providers when a State VR agency

does not serve an SSI recipient whom SSA refers for services. 

From the beginning of the SSI program through 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981 amendments established reimbursement provisions so that VR

agencies would be reimbursed for the cost of VR services furnished to blind or disabled SSI recipients

only if the services result in the recipient returning to work. The 1984 amendments authorized reimbursement in other circumstances.1 In 1994, these reimbursement procedures were amended by regulation to

include reimbursement of alternate providers. For reimbursement purposes, recipients are considered to

have returned to work if they have had earnings exceeding the SGA level for 9 continuous months. 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.

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

or public provider. Providers of such services in this new setting are referred to as “employment networks”

(ENs). In addition, the Ticket legislation provides for a new procedure for paying the ENs under an outcome or outcome-milestone payment system specified under regulations published by the Commissioner

December 28, 2001, effective January 28, 2002. By expanding the pool of providers and giving the providers incentives for achieving success, this program expands 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. 

The Ticket to Work program is being implemented on a State-by-State basis and will be in operation

nationwide by January 2004. Once the Ticket to Work program is implemented in a State, the traditional

VR referral process described earlier is eliminated in that State, and SSA provides eligible individuals who

receive SSI benefits due to blindness or disability in such State 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. 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.

1 Reimbursement may be made in cases 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 program increases the likelihood the individual will be permanently removed from the rolls.
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2003 SSI Annual Report

Until the Ticket to Work program is implemented in their State, State VR agencies and alternate providers

under the traditional system can continue to enroll beneficiaries under the cost reimbursement system

described above. Any reimbursement for those cases will be made under that system. However, once the

Ticket to Work program is fully implemented, only the State VR agencies will have the option (on a caseby-case basis) of being paid under the traditional VR reimbursement system. ENs other than State VR

agencies will be compensated through the new outcome-based system.

Pursuant to the Ticket legislation requirement that SSA establish a corps of work incentives specialists to

disseminate accurate information with respect to work incentives, SSA piloted the Employment Support

Representative (ESR) position and three distinct models for providing employment support programs and

services. Based on the pilot experience and positive feedback from the disability community, as well as

our business partners, SSA has decided on a multifaceted strategy for administering employment support

programs. Automation enhancements designed to improve workload management controls are ongoing,

and efforts are underway to provide all direct service employees customized training on work incentives,

thereby establishing a wider network of technical expertise. In fiscal year 2003, SSA will also establish a

dedicated corps of experts specializing in employment supports and allocate a minimum of one expert

position under the jurisdiction of each Area Director.

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 1987-2002

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 SSI Annual Report

94

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 1999 and are taken from Wave 12

of the 1996 Panel. Only three of the four rotation groups were interviewed in December 1999. However, since individuals are assigned to rotation groups

randomly, the sample used for this table is still nationally representative. Sample weights were adjusted to reflect the missing rotation group.
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2003 SSI Annual Report

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 12 of the 1996 SIPP Panel and then matched to SSA administrative records. The reference month of December, 1999 is used since that is the most recent December for

which data are available. Since the 1996 Panel consists of 36,700 households, the sample of households

including SSI recipients is small. The individuals in the sample represent only 0.02 percent of SSI noninstitutionalized recipients in December, 1999. 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 Data unchanged from the 2002 Annual Report since the match for a later SIPP file is not yet available.

3 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

4 Medicaid participation is automatic for SSI recipients in 33 States. For SSI recipients in these States, the self-reported Medicaid variable is recoded to

indicate participation. In the remaining States, self-reported Medicaid 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, 2002

Male Female

0-17 18-64 All

65 or

older 0-17 18-64

65 or

older

Number of Federally-administered recipients, 

December, 2002 (in thousands). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588 1,682 583 326 2,196 1,413 6,788

Program (In percent)

Program participation by SSI recipients, December, 2002

Federal SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.8 95.7 91.6 100.0 97.0 93.4 95.8

Federally-administered State SSI supplementation. . . . . . . . . . . . . . . . . . . . . . . . . . . 27.2 35.0 50.3 26.4 32.7 43.5 36.3

OASDI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 32.2 55.4 7.1 29.5 58.7 35.4

Black Lung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/

Railroad Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 0.1 2/ 2/ 0.1 2/

Veterans Affairs disability cash benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.6 0.8 0.2 0.7 3.4 1.2

Worker’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 0.1 2/ 0.1 2/ 0.1

Previous program participation by SSI recipients, December, 2002

TANF/AFDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46.1 16.5 7.5 43.9 32.4 8.4 23.1

Interim Assistance Reimbursement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 17.1 9.1 0.3 14.1 8.7 11.4

Table V.F2.—Percentage of Noninstitutionalized SSI Federally-Administered Recipients in Current-Payment Status

with Participation1 in Selected Programs Based on Data Collected Under Wave 12 of the 1996 Survey

of Income and Program Participation, December, 19992

Male Female

0-17 18-64 All

65 or

older 0-17 18-64

65 or

older

Number of surveyed individuals reporting SSI Income, December, 1999 . . . . . . . . . . . 73 244 106 45 360 272 1,100

Number of surveyed individuals as a percentage of noninstitutionalized Federallyadministered recipients, December, 1999 (in percent) . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01 0.02 0.02 0.01 0.02 0.02 0.02

Program (In percent)

Program participation by SSI recipients, December, 1999

General assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3/ 0.6 1.1 3/ 3.4 1.3 1.6

Medicaid4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.4 96.1 99.1 89.6 96.7 97.6 96.5

Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3/ 31.5 72.1 3/ 29.3 85.1 39.9

School breakfast/lunch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.2 3/ 3/ 78.0 3/ 3/ 10.1

TANF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3/ 1.2 0.7 3/ 11.0 1.8 4.3

Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/

Special Supplemental Food Program for Women,

Infants and Children (WIC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3/ 3/ 3/ 3/ 6.3 3/ 2.1

Program participation by households of SSI recipients, December, 1999 

Energy assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 11.8 10.5 11.8 13.3 10.1 11.6

Housing assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.1 6.4 7.0 14.0 14.0 9.4 10.6

Food stamps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.1 39.4 29.4 31.3 54.4 41.4 43.5
2003 SSI Annual Report

96

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 SSA’s Model of Financial Eligibility for SSI

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 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 eligible elderly was

about 63 percent in 1991. 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,

forthcoming). The financial eligibility model has also been utilized to study eligibility for Medicare buy-in

programs (see Rupp and Sears 2000; Sears 2001/2002).

b. National Survey of Children with Families

Due to the widely acknowledged shortcomings of existing data sources for evaluating the effects of welfare reform on SSI children and for tracking SSI children unaffected by welfare reform, SSA has conducted a national survey of children with disabilities. Among the questions the survey answers are the

following: 

 • What is the cost of caring for a disabled child? 

 • What are the uses of SSI benefits? 

 • What alternative sources of care are available to disabled children who lose SSI benefits? 

 • How is quality of life and utilization of medical services impacted by gaining or losing 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 received an edited and weighted data file in

fall 2002, and SSA expects imputed and recoded data files in spring, 2003.

c. Evaluation of the State Partnership Initiative Return-to-Work Demonstrations

In the fall of 1998, the Social Security Administration and the Department of Education announced the

award of 12 SSA cooperative agreements and 6 Rehabilitation Service Administration systems-change

grants under State Partnership Initiatives (SPI). SPI projects are designed to assist States in developing

alternative program structures and service delivery systems to increase employment of persons with disabilities who are receiving SSI or SSDI.
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2003 SSI Annual Report

Mathematica Policy Research, Inc. (MPR), under contract to SSA, designed and tested an evaluation

methodology for the SSA SPI projects. The core evaluation will rely on SSA administrative data and will

use appropriate methods to define comparison groups and determine the net impact of SPI interventions

on participants. A supplemental net-outcome evaluation will take advantage of any additional data provided by individual SPI projects. MPR provided its final report in September 2002.

The majority of the SPI projects will end in 2004. However, four SPI projects will be continued until the

end of 2005 because these projects focused on SSI waivers to increase the incentives to return to work.

The final net-outcome evaluations will occur in 2006.

d. Evaluation of the Ticket to Work

The evaluation of the Ticket to Work and Self-Sufficiency program will examine the following:

 • Total and net costs of the program,

 • The impact of the program on beneficiary work outcomes and reliance on SSA benefits,

 • The individual and service provision characteristics of service providers and provider networks,

 • The adequacy of incentives for providers to supply services,

 • The appeal of the program among the eligible population, and

 • The satisfaction of participants with the program in general.

To the degree possible, the evaluation will utilize information from SSA administrative data and from the

Ticket to Work program implementation process. Such data will be insufficient, however, to cover many

of the evaluation topics required under the legislation, particularly the analysis of nonparticipation among

eligible beneficiaries. A significant survey effort will therefore be required to supply the necessary supplemental information to meet these evaluation requirements. The design of the evaluation is complete (The

Lewin Group), and SSA expects to issue a contract to implement the evaluation in spring 2003. SSA held

a technical workshop in May 2002 to obtain advice from outside experts on the adequacy of incentives for

providers to supply services to people with significant disabilities (Rupp and Bell, 2003). The initial process evaluation detailing the start-up issues being faced by the Ticket program has also been completed

(The Lewin Group, 2003).

2. Bibliography

Alterman, A. I., Q. Shen, J. C. Merrill, A. T. McLellan, J. Durell, and J. R. McKay. “Treatment Services

Received by Supplemental Security Income Drug and Alcohol Clients.” Journal of Substance Abuse

Treatment 18, 3 (2000): 209-215.

American Academy of Pediatrics. Committee on Children with Disabilities. “The Continued Importance

of Supplemental Security Income (SSI) for Children and Adolescents with Disabilities.” Pediatrics 107, 4,

Part 1 of 2 (April 2001): 790-793.

Angel, Ronald J. “Living Arrangements and Supplemental Security Income Use Among Elderly Asians

and Hispanics in the United States: The Role of Nativity and Citizenship.” Journal of Ethnic and Migration Studies 28, 3 (2002): 553-563.
2003 SSI Annual Report

98

Angel, R. J., J. L. Angel, G. Y. Lee, and K. S. Markides. “Age at Migration and Family Dependency

Among Older Mexican Immigrants.” Gerontologist 39, 1 (February 1999): 59-65.

Auxter, David, William Halloran, Hugh G. Berry, and Susan O’Mara. “The Precarious Safety Net: The

Supplemental Security Income and Age 18 Redeterminations.” Focus on Autism & Other Developmental

Disabilities 14, 4 (Winter 1999): 194-203, 211.

Beedon, Laurel and Charles Ford. “Supplemental Security Income (SSI): Yesterday, Today and Tomorrow.” Data Digest AARP Public Policy Institute 43 (February 2000): 1-4.

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99

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2003 SSI Annual Report

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2003 SSI Annual Report

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2003 SSI Annual Report

106

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2003 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

Immigration and Naturalization Service.

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 2003 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. An unmarried blind or disabled individual who is not the head of a household and who is either

under age 18 or aged 18-21 and regularly attending school. 

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.
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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.

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.
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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.

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.

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 2003 began October 1, 2002 and will end

September 30, 2003.

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.).

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
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112

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. Each occurrence of infrequent or irregular income is excluded if it does

not exceed $10 per month of earned income and $20 per month of unearned income.

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, clothing or shelter or something an individual can

use to obtain food, clothing or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food, clothing, or shelter or

any combination of these.

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.

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.”
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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 INS 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

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.
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 • 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).

Payment Accuracy. The accuracy rate reflects the percent of dollars in SSI benefits that are paid correctly. One measure of the quality of the SSI program and SSA’s stewardship of it, based on reviews conducted by SSA to determine the accuracy of the payment and compliance with national instructions and

goals. 

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.

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. 
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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 in section 501(e) of the Refugee Education Assistance Act of

1980; or

 • 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 INS 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.

Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2003, a worker receives one quarter of coverage (up to four a year) for each $890 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.
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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.

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 pay-
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2003 SSI Annual Report

ment 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, 2003, pays an $8.59 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.

Statutory Blindness. See “Blind.”

Student Earned Income Exclusion (SEIE). An earned income exclusion for an individual who is under

age 22, regularly attending school and neither married nor the head of a household, with certain limitations

established by regulations. For 2003, up to $1,340 earned income in a month, but no more than $5,410 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 2003, a person who is not statutorily

blind and is earning more than $800 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.
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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. 

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. 
119

2003 SSI Annual Report

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, due May 30, 2003.

VIEWS OF THE BOARD REGARDING PROGRAM STEWARDSHIP

AND THE DISABILITY DETERMINATION PROCESS

In its comments in previous annual reports, the Board has discussed a broad range 

of issues and recommendations. In this report, we will confine our comments to two 

aspects of the SSI program. 

The first is program stewardship, SSA’s obligation to ensure that the public’s 

funds are responsibly expended. Taxpayers who support the SSI program must be 

confident that their tax dollars are accurately expended. Claimants and beneficiaries 

must know that program rules are followed correctly and that benefits are accurately paid.

The second is the disability determination process. It is important to the SSI 

program, because most SSI beneficiaries receive benefits on the basis of disability. It has 

long been one of SSA’s most challenging areas to administer. Our comments focus on 

both program administration and the need to transform the program to meet current and 

future realities.

Program Stewardship

In 1997 the General Accounting Office (GAO) designated SSI a high-risk 

program because of its vulnerability to abuse and mismanagement, increasing 

overpayments, and poor recovery of outstanding overpayments. This January, GAO 

removed the program from its high-risk list, noting SSA’s progress in improving the 

financial integrity and management of the program. GAO noted SSA’s actions in 

obtaining legislation to prevent and to collect overpayments as well as administrative 

actions to strengthen SSI program integrity.

As GAO noted, however, the impacts of SSA’s actions are not yet fully realized. 

A look at some recent data shows that the SSI program continues to need attention.
2

Payment Accuracy

SSA conducts an annual stewardship study of the SSI program. The study 

examines a monthly sample of non-medical reviews of SSI cases in current pay status. 

The FY 2001 study, the most recent available, shows a statistically significant decrease in 

accuracy. The FY 2001 overpayment accuracy rate for preventable errors was 93.3 

percent, down from 94.7 percent in FY 2000. Applying this rate to the universe of $32.7 

billion in SSI payments, the study projects $2.2 billion dollars in SSI overpayments in FY 

2001, a 29 percent increase from $1.7 billion in FY 2000.

As the stewardship report points out, SSA has been more effective at detecting 

overpayments that have occurred than in the more difficult task of preventing them. The 

annual amount of overpayment dollars detected has increased by 80 percent since the SSI 

program was put on the high-risk list in 1997. 

Field office managers have consistently expressed to the Board their concerns 

about the quality of SSI work done in their offices. They say that pressures for a high 

volume of production prevent their employees from taking the time and care needed to 

ensure quality. They add that because of the reduction in management positions in field 

offices, they are unable to do quality reviews. We hope that SSA’s new Transaction 

Review quality review system will help improve the quality of work done in field offices 

by giving them useful and timely feedback.

In order to improve accuracy, SSA has increased the number of computer 

interfaces with other sources of information on SSI beneficiaries’ income and resources. 

While the source of the data is automated, it still takes staff time to resolve the issues the 

interfaces raise. The interfaces generate diary alerts that go to local field offices. Field 

office employees have told us that they are unable to process workloads of this type 

because of competing priorities. And members of the public have told us that SSA often 

does not act promptly on beneficiaries’ work reports. We have heard that the fear of 

overpayments caused by such inaction is a major obstacle to beneficiaries attempting to 

return to work.

Overpayment Collection

While the overpayment dollars detected have increased 80 percent since 1997, 

collections of those overpayments have increased by only 68 percent. Collections were 

45 percent of new detections in 1997 but only 42 percent in 2002.
3

SSI Overpayment Detections and Collections, 

1997-2002

0

500

1,000

1,500

2,000

2,500

1997 1998 1999 2000 2001 2002

Fiscal Year

$ Millions

New detections

Collections

As a result, the overpayment balance at the end of the fiscal year nearly doubled 

during that period, from $1.97 billion at the end of 1997 to $3.77 billion at the end of 

2002.

SSI Overpayment Balance at End of Year, 

1997-2002

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1997 1998 1999 2000 2001 2002

Fiscal Year

$ Million

SSA has been gradually implementing new tools for debt collection. Because of 

resource limitations, SSA has followed a policy of prioritizing those that the agency 

thinks will have the biggest payoff, but progress has been slow.

The law provides that overpaid beneficiaries may request a waiver of collection of 

the overpayment, which the agency may grant under certain conditions. The Office of

the Inspector General has raised questions about SSA’s waiver practices. An SSA 

executive has told the Board that field offices often do not pursue overpayment collection 

because the staffs are too busy. It is easier for them to waive collection of the debt.
4

Collecting overpayments is highly cost effective. According to SSA, it costs 

about eleven cents to collect a dollar of overpayments. SSA should be moving more 

effectively to collect overpayments as part of properly discharging its stewardship 

responsibilities.

Disability Determination Process

The disability determination process is important to the SSI program, since four 

out of five SSI beneficiaries are receiving benefits because of disability. As SSA’s 

annual report on the program points out, the number of SSI disability beneficiaries is 

expected to grow by 17 percent over the next 10 years, and SSA will have to process an 

average of 1.7 million disability applications per year. The Board has issued reports and 

testified to Congress on the issues that need to be addressed in SSA’s disability 

programs.1 In recognition of the challenges facing SSA’s disability programs, the GAO 

in January added these programs to its high-risk list.

In these comments on the SSI program, the Board would like to briefly consider 

two aspects of the SSI disability program: issues that need to be addressed in how the 

current program is administered and the need to adapt the program to meet current and 

future needs.

Issues in Program Administration

Are disability decisions consistent and fair?

For many years, both Members of Congress and others who have studied SSA’s 

disability programs have expressed concerns about inconsistencies in decision making. 

These inconsistencies continue to be a concern. For example, in FY 2002, while the 

average allowance rate for initial SSI disability claims was 38.5 percent, the allowance 

rate ranged from 27.8 percent in Tennessee to 57.6 percent in New Hampshire. While 

economic and demographic differences among states explain some of this difference, 

they do not explain all of it. 

There are other indications that the difference in outcomes reflects differences in 

how claims are adjudicated. For example, the percentage of SSI disability beneficiaries 

in 2001 with a diagnosis of mental retardation varied from 14 percent in Massachusetts to 

36 percent in West Virginia. And the percentage with a diagnosis of other mental 

disorders ranged from 22 percent in Louisiana to 49 percent in Massachusetts. There are 

 

1

SSA’s Obligation to Ensure that the Public’s Funds are Responsibly Collected and Expended, March 

2002; Agenda for Social Security: Challenges for the New Congress and the New Administration, February 

2001; Charting the Future of Social Security’s Disability Programs: The Need for Fundamental Change, 

January 2001; “Reforming the Disability Insurance and the Supplemental Security Income Disability 

Programs,” testimony before the House Ways and Means Committee, Subcommittee on Social Security, 

June 11, 2002; Statement by Hal Daub, Chairman, Social Security Advisory Board to the House Ways and 

Means Committee, Subcommittee on Human Resources, July 25, 2002.
5

apparent inconsistencies in denials as well as in allowances. In FY 2002, the percentage 

of claims denied because the disability was not expected to last for 12 months ranged 

from 2 percent in Rhode Island to 17 percent in Nevada. And the percentage of denials 

because the disability was not considered severe ranged from 2 percent in New 

Hampshire to 37 percent in Mississippi. 

There also seem to be inconsistencies within State agencies. A study done for 

SSA under contract2 examined the range of initial allowance rates across examiners in 

four State agencies. It found that the range of allowance rates was 10 to 19 percent 

greater than could be explained by random variations in the claims they examined.

A large percentage of claims that are denied at the initial level are appealed to the 

hearing level, where the majority of decisions reverse the lower-level denial of benefits. 

There are also geographic differences at the hearing level. In FY 2002, the national 

hearing-level allowance rate for SSI claims was 58 percent, with a range from 42 percent 

in Louisiana to 78 percent in Maine. There does not seem to be a correlation between 

high State agency allowance rates and low hearing reversal rates. In fact, the hearinglevel allowance rate for New Hampshire, which had the highest initial-level allowance 

rate, was 74 percent, the third highest in the country. 3

Despite the long-standing concern about consistency, SSA has no effective 

mechanism to provide the information needed to understand the degree to which the 

program’s own policies and procedures – including their uneven implementation – are 

causing inconsistent outcomes in different parts of the country and at different levels of 

adjudication. As long as variations in decision making remain unexplained, the integrity 

and fairness of the disability program are open to question. This program is too 

important to the American public for this issue not to be addressed.

Some recent quality review reports also raise questions of decision quality at the 

hearing level. A peer review of hearing decisions on initial claims between October 1998 

and July 2000 showed that reviewing judges found substantial evidence for ALJ 

decisions in only 85 percent of the favorable decisions reviewed and found errors of law 

in 38 percent of the cases reviewed. While both of these figures represent improvements 

over earlier reports, improvement is still needed. A report on hearing decisions on 

continuing disability reviews during FY 2000 and FY 2001 showed that reviewing judges 

found substantial evidence for the ALJ decision in only 75 percent of the favorable 

decisions reviewed and errors of law in 31 percent of the decisions. The review also 

showed that in unrepresented cases, ALJs had adequately informed the claimants of their 

right to representation only 81 percent of the time.

 

2

Evaluation of SSA’s Quality Assurance (QA) Processes and Development of QA Options That Will 

Support the Long-Term Management of the Disability Program, Prepared by The Lewin Group, Inc.; Pugh 

Ettinger McCarthy Associates, L.L.C.; and Cornell University, Final Report, March 16, 2001.

3

 Hearing data is based on state of claimant’s residence.
6

Is disability policy being developed coherently and in accord with the intent of

the Congress?

Although Congress has not changed the law defining disability for adults for more 

than 30 years, the determination of what constitutes disability has changed in 

fundamental ways. For example, there has been a gradual but persistent trend away from 

decisions based on the medical listings to decisions that increasingly involve assessment 

of function. Today, many more decisions involve mental impairments than in the past. 

In addition, changes in agency rules mean that now all adjudicators must adhere to more 

complex and intricate requirements regarding such matters as determining the weight that 

should be given to the opinion of a treating source and making a finding as to the 

credibility of claimants’ statements about the effect of pain and other symptoms on their 

ability to function. All of these changes have made decision making more subjective and 

difficult. These policy changes have been made through changes in regulations and 

rulings. A number of the most significant changes have grown out of court decisions, 

many of which have not been appealed. None of them have been reviewed by the 

Congress as to their effect on decision making or whether they are operationally 

sustainable for a program that must process massive numbers of cases.

Can today’s administrative structure support future program needs?

Since the original Federal-State structure was established to administer the 

Disability Insurance (DI) program half a century ago, it has had to accommodate a 

growth in program size and complexity that it has been ill equipped to handle. In 

addition to working within a fragmented administrative structure, employees at all levels 

have been buffeted by periodic surges in workloads and funding shortfalls. 

At the present time, all parts of the applications and appeals structure are 

experiencing great stress, and there is every indication that the difficulties will continue 

to grow unless changes are made. There are more than 15,000 disability adjudicators 

throughout the disability system. Their qualifications and the rules and procedures they 

follow differ, sometimes dramatically. For example, adjudicators at the State agency and 

ALJ levels may receive vastly different training and draw upon very different resources. 

Factors such as these raise questions about how well the administrative structure will be 

able to handle the growing workload.

Adapting the Program to Meet Current and Future Needs

When the SSI program began in 1974, it adopted the definition of disability used 

by the DI program. That definition was enacted in 1956, to meet the needs of a country 

with a manufacturing economy in which most work involved physical labor. The 

workforce then had a much lower educational level than is now the case. Some of the 

fastest-growing jobs in today’s economy did not exist then. Nor did much of the medical, 

rehabilitative, and assistive technology that we now take for granted. Our society has 

also changed and now expects greater inclusion of and participation by people with 

disabilities. The Americans with Disabilities Act reflects these changing social 
7

expectations and supports the view that people with disabilities can work and have the 

right to work.

Despite all these changes that could have resulted in expanded opportunity and 

employment for people with disabilities, the number of recipients of SSI disability 

benefits has tripled since the program began. Some of that increase, of course, is due to 

the growth of the population. But even viewed as a percentage of the eligible population, 

SSI disability beneficiaries have more than doubled in the same period.

To the extent that this growth has occurred because we as a society have not used 

the means at hand to keep people productive, we have failed. We have placed an 

inappropriate burden on the taxpayers who pay for these programs. We are undermining 

our economy, which faces severe labor shortages in the coming years. And we have 

denied the individuals involved the opportunities they should have to work and be 

productive.

SSA is conducting some valuable demonstration projects and research that may 

lay the groundwork for a transformation of its disability programs. For example, it is 

conducting a demonstration project to test the effectiveness of providing earlier return-towork services to applicants, and it is conducting research on the transition to employment 

of childhood SSI beneficiaries and on how the change in distribution of occupations and 

industries has affected the probability of employment of persons with disabilities. Efforts 

such as these offer hope for the eventual transformation of the program, but we must 

continue to keep that goal in mind.

What Needs to Be Done

The Board’s reports contain a range of recommendations for improving SSA’s 

stewardship of its programs and its disability determination process, and we will not 

repeat all of them here. Rather, we will focus on principles of reform and some actions 

that are especially relevant to the SSI program. 

Goals and objectives of reform of the disability process

At the time this is being written, we are looking forward to an announcement of 

SSA’s plan to reform its disability process. We believe that reform of the disability 

programs should be evaluated within the context of clear goals and objectives:

• All who are truly disabled and cannot work should receive benefits.

• Those who can work but need assistance to do so should receive it.

• Vocational rehabilitation and employment services should be readily available, 

and claimants and beneficiaries should be helped to take advantage of them.

• Claimants should be helped to understand the disability rules and the 

determination process.

• The disability system should provide fair and consistent treatment for all.
8

• The disability system should ensure high quality decisions by well-qualified and 

trained adjudicators.

• The disability system should provide expeditious processing of claims.

Maintaining the accuracy of the SSI rolls

SSI redeterminations -- reviews of the income, resources, and other factors 

affecting SSI eligibility and payment amounts -- are an important tool in preventing and 

identifying payment errors. Over the last decade, however, program growth has 

outstripped the growth in the number of redeterminations. Over the period 1990-2002, 

the number of SSI beneficiaries increased by 40 percent, but the number of 

redeterminations increased by only 10 percent. It is encouraging, however, to see a 

recent increase in emphasis on the use of redeterminations, with nearly 300 more work 

years going to redeterminations in 2002 than in 2001. The agency has attempted to make 

the process more effective by using profiling to identify the cases at greatest risk of error. 

SSA plans to increase the number of high-error profile redeterminations by 21 percent in 

FY 2003. However, unless more staff is made available, SSA may have to put other 

important workloads on hold, creating other problems.

Continuing disability reviews (CDRs) examine the beneficiaries’ conditions to 

ensure that only those who continue to be disabled remain on the rolls. With the help of 

special funding from Congress, SSA completed in FY 2002 a seven-year effort to become 

current with its CDR workload. SSI CDRs conducted in FY 2001 alone are estimated to 

save the SSI program $1.7 billion over a ten-year period, with another $800 million in 

savings to the Medicaid program. SSA projects that it would continue to be costeffective to keep current with its CDRs. For FYs 2003-2011 the return on each dollar 

invested in CDRs is projected to be $7. However, the agency expects to do only about 

650,000 CDRs this year (both DI and SSI), rather than the 827,000 it would need to do to 

stay current.

SSA’s Service Delivery Budget includes earmarked funding to enable it to carry 

out program integrity initiatives, such as SSI redeterminations and CDRs, that will pay 

for themselves. Congress should ensure SSA has the funds it needs to carry out these 

important cost-saving activities.

Improve SSI and disability program policies

Over the last three decades, SSI policy has tended to become more complex. This 

complexity makes the program more difficult and time-consuming to administer, more 

error-prone, and harder for beneficiaries to understand. The degree of complexity is 

reflected in the fact that in FY 2002, SSA spent nearly 34 percent of its administrative 

resources on the SSI program, which accounted for slightly more than 6 percent of its 

benefit payments.
9

Some of this complexity is inevitable in a program in which benefit amounts 

depend on, among other things, the beneficiary’s other income and living arrangements. 

Unlike the OASDI benefit programs, SSI requires the agency to update its records to 

reflect changes in factors that may affect payments. SSA relies heavily on beneficiaries 

to report relevant changes, but it also initiates redeterminations. Benefit amounts can 

depend on such factors as the relationship of members of a household and the share of 

food, utility, and other expenses the beneficiary pays.

Over the life of the program, policies have been made more complex by 

legislation and court decisions. They have also been complicated by SSA’s efforts to 

apply its rules fairly to people in differing circumstances. Simplifying SSI policies could 

do much to make the program more manageable and improve payment accuracy.

We understand that SSA plans to propose legislation to simplify some of its rules 

on the treatment of income for the SSI program. These proposals are a step in the right 

direction, and we encourage further efforts to simplify the SSI program.

SSA should also thoroughly review its disability policy rules and regulations to 

determine where changes can be made to improve the quality and consistency of decision 

making. Both medical listings and vocational guidelines should be included in this 

review. Where possible SSA should write these rules and regulations more clearly and 

simply so that adjudicators in different states and different levels of decision making will 

interpret and use them in the same way. SSA should follow up with regular training 

across all levels of the process.

As the Board has previously recommended, SSA should bring together into a 

single policy unit individuals with knowledge and experience in the Office of Disability, 

the Office of Hearings and Appeals, and the State agencies. We urge the agency to move 

forward as quickly as possible to strengthen its capacity to develop and oversee the 

implementation of disability program policy. 

The Board is particularly concerned that, in a program where most decisions are 

based on vocational factors, the policy regulations in that area have not been revised for 

many years despite major changes in the nature of the national workplace. The Board is 

also concerned that vocational assessments continue to rely in large measure on an 

outdated Labor Department publication that is not being updated. The recently issued 

SSA strategic plan indicates a commitment on the part of the agency to remedying this 

situation. The Board believes the agency should place a high priority on fulfilling that 

commitment.

In addition, given the history of the many difficulties that SSA has had in carrying 

out the disability policies it has formulated, there is a demonstrable need for the agency to 

rigorously assess the potential impact of major policy changes before they are 

implemented.
10

Improve the quality of disability program processes

SSA has announced a new agency-wide quality management initiative but has not 

yet implemented an overall quality improvement process. SSA’s new quality 

management initiative uses a definition of quality that balances the five elements of 

accuracy, timeliness, productivity, cost, and service. The message announcing the quality 

initiative stated that quality is too often equated only with accuracy or resources. It is 

certainly appropriate to adopt a balanced definition of quality. What the Board hears 

from the front lines of the agency, however, is that in practice accuracy is not valued as 

highly as productivity and timeliness. Getting things done is seen as more important than 

doing them right. As one manager told us recently, “SSA puts all its eggs in the 

productivity basket.”

The Board has heard from many throughout the agency that the measures SSA 

uses skew activity toward productivity and timeliness and away from accuracy. Because 

productivity influences allocation of staff, managers have an overwhelming incentive to 

process work as quickly as possible, with no counterbalancing incentive for accuracy.

In order to improve payment accuracy, it is essential to put in place a more 

balanced set of incentives to reflect the agency’s new balanced definition of quality. 

Incentives should encourage employees at all levels to do things right the first time.

The current system of pre-effectuation reviews, according to many observers, 

skews initial disability systems toward denials. Current law requires pre-effectuation 

review of a substantial percentage of DI claims that are awarded at the DDS level; in 

practice, 50 percent are reviewed. Legislation has been proposed and is currently 

pending in Congress for a similar pre-effectuation review of awarded SSI claims. Since 

pre-effectuation review is focused entirely on claims that have been allowed and since 

only a small number of denied claims are reviewed (about 70 a month for each DDS, 

regardless of size), it is not surprising that denial accuracy is significantly lower than 

allowance accuracy. 

An outside evaluation of the disability quality system completed in 2001 

highlighted the need for change in that system. It concluded that SSA’s current system is 

of limited value in analyzing overall performance and in providing information that can 

be used to improve the quality of decisions. The evaluators recommended replacing the 

present quality assurance system with a totally new quality management system. The 

new system would provide information that could be used to improve disability policy 

and the disability system. It would identify variations in decision making by various 

components in the system and provide the information needed to address them.

Ensure that resources are appropriately applied at each level of the process

We cannot say what the appropriate level of resources would be for the disability 

determination process. Some would say that the disability determination process is 

already too costly. But the average present value of an award of adult SSI disability 
11

benefits is in excess of $75,000, including Medicaid. The cost of an initial disability 

claim decision in FY 2002 was $569. The cost of a hearing was $2,007. 

If we look at Table V.C1 in this volume, showing dispositions of claims by year 

of filing and level of decision, we see some fairly stable patterns. Translating the data in 

these tables to a simpler, though rough, representation:

• Out of 100 adult applicants for SSI disability claims, 30 are allowed at the initial 

level.

• Of the 70 denied at the initial level, 32 request a reconsideration, and 5 are 

allowed.

• Of the 27 denied at reconsideration, 19 request a hearing.

• Of those 19, 11 are eventually allowed at the hearing level or beyond.

So, from the original 100, 46 are allowed, 30 at the initial level, 5 at 

reconsideration, and 11 past reconsideration. The cost of the initial decision for the 30 

allowed at that level was $17,070. The cost of the hearing decision for the 11 allowed at 

the hearing level was $22,077.

Of the original 100, another 46 dropped out of the process, 38 after the initial 

decision and 8 after reconsideration. Another 8 were denied all the way through the 

process.

Looking at the numbers this way raises several concerns:

• Would it save money in the long run to spend more on the initial process, to 

collect more evidence, or to develop a more thorough rationale? SSA’s process 

unification and prototype initiatives were intended to answer these questions, but 

were not adequately funded to do so. We have heard anecdotally that many 

claims are allowed at the hearing level that could have been allowed on the basis 

of evidence in the file at the initial level. We have also heard that many of the 

claims allowed at the hearing level could have been allowed at the initial level if 

they had been fully developed. We have not been able to quantify those claims. 

SSA should attempt to quantify these issues.

• No feedback is provided to the relevant State agency on these “on the record” 

allowances at the hearing level. This is a loss of potentially valuable information 

to the system that SSA should remedy.

• Of the illustrative group of 100 applicants described above, the largest sub-group 

is the 38 who drop out of the process after the initial decision. SSA should also 

look more closely at this group to ensure that they are being appropriately denied.

The SSI Annual Report

SSA’s seventh Annual Report of the Supplemental Security Income Program

provides a useful review of some program data. It could and should do much more. The 

report should also address broad policy issues. We believe policy makers would find it 
12

helpful if the annual report were also an annual forum for communicating a 

comprehensive overview of the program and a vision for its future direction.

We recommend again that the agency use its SSI annual report to bring to the 

attention of policy makers both the policy issues that it believes need to be resolved and 

the difficulties that the agency is encountering in administering the program. We do note 

that this year’s report makes a small but useful step in this direction by including a 

general discussion of program simplification issues. Providing more of this type of 

information would help the Congress, the Administration, and the public to understand 

the challenges the agency faces and the need to address them.

Hal Daub

Chairman

Dorcas R. Hardy Martha Keys David Podoff

Sylvester J. Schieber Gerald M. Shea