Annual Report 

of the

Supplemental

 Security

 Income Program

Social Security Administration

May 2004
.
SOCIAL SECURITY

The Commissioner

May 28, 2004

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 2004 Annual Report of the Supplemental Security

Income Program (the eighth 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 eighth of such reports, and following are its major highlights and findings. 

Highlights of the SSI Program

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

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

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

and limited resources.

 • In January 2004, 6.6 million individuals

received monthly Federal SSI payments averaging $393 versus 6.5 million with an average

payment of $381 in January 2003.

 • Federal expenditures for cash payments under

the SSI program during calendar year 2003

increased 4.2 percent to $32.9 billion, and the

cost of administering the SSI program in fiscal

year 2003 increased 4.5 percent to $2.7 billion.

In 2002 the corresponding Federal expenditures and cost of administering the SSI program were $31.6 billion and $2.6 billion,

respectively.

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

employment, and other support services, has

been in operation nationwide since November

2003.

 • With the enactment of the Social Security Protection Act of 2004, progress was made towards SSI

program simplification by the inclusion of several SSI provisions that will make the administration of

the program more efficient.

Major Findings of the Report

 • By 2028, the end of 25-year projection period, the Federal SSI recipient population is estimated to

reach 8.5 million. The projected growth in the SSI program over the 25-year period is largely due to

the overall growth in the U.S. population. The rate of participation is projected to vary somewhat by

age group, with the overall participation of the 65 or older age groups projected to decline and the participation of the under 65 age groups projected to increase slightly.

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

essentially level at 2.2 percent in 2003, and is projected to increase gradually to 2.4 percent of the

population by 2028. 

Disabled 65

or older

8%

Aged

12%

Disabled

under 18

17%

Disabled

18-64

62%

 SSI Federal Payments, Calendar Year 2003

$32.9 billion
 • Federal expenditures for SSI payments in calendar year 2004 are estimated to increase by $1.7 billion

to $34.7 billion, an increase of 5.2 percent from 2003 levels.

 • In constant 2004 dollars, Federal expenditures for SSI payments are projected to increase to $43.8 billion in 2028, a real increase of 1.0 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 2003 to 0.24 percent of GDP by

2028. 
(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2003 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

C. CURRENT ISSUES FACING THE SSI PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . 9

A. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

B. THE BASIC PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

D. ASSISTANCE OF LAST RESORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

1. Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3. Filing for Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

4. Eligibility Issues for Residents of Public Institutions or Medical Facilities . . . . . . . . . . . . 14

5. Personal Needs Allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

6. Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

a. Spouse-to-Spouse Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

b. Parent-to-Child Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

c. Sponsor-to-Alien Deeming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 16

1. Earned Income Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. Impairment-Related Work Expense Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. Work Expenses of the Blind Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4. Student Earned Income Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

5. Plan for Achieving Self-Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6. Special Provisions for Disabled People Who Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

7. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

8. Expedited Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

F. ADMINISTRATION OF THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

1. Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

2. Determination of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

3. Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

5. Appeal Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

6. Attorney Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

7. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

2. Mandatory State Supplementary Payment Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3. Administration of State Supplementary Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4. Passalong Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
(VIII)

H. COORDINATION WITH OTHER PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

1. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2004-28 . . . . . . . . . 27

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . 30

C. FEDERAL PAYMENTS UNDER SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT . . 49

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

AND BENEFICIARY SERVICES COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

V. APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

1. Basic Eligibility Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

2. Other Eligibility Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

a. Citizenship and Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

c. Drug Addiction and Alcoholism (DA&A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . . . . . . 58

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

3. Federal Benefit Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

f. Penalties for False or Misleading Statements or Withholding of Information. . . . . . . . . 61

4. Federal Benefit Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

5. Exclusions from Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

6. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

c. Transfer-of-Assets Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . . . . . . . 70

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

9. State Supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

10. Overpayment Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
(IX)

C. HISTORICAL ALLOWANCE DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA 86

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 93

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . 95

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 99

1. Program Participation Data from the Supplemental Security Record (SSR). . . . . . . . . . . . 99

2. Program Participation Data from the Survey of Income and Program Participation (SIPP) 100

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

1. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

a. Analyses Using Survey of Income and Program Participation Data . . . . . . . . . . . . . . . . 101

b. National Survey of Children and Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

c. Evaluation of the Ticket to Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

d. Homeless Outreach Projects and Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

e. Youth Transition Process Demonstration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

f. Florida Freedom Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

g. Disability Program Navigator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

h. State Partnership Initiative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

2. Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD
.
(XI)

TABLES

III.H1 SSI State Supplementation and Coordination with Other Programs. . . . . . . . . . . . . . . . . . . . . 26

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

Intermediate Assumptions of the 2004 OASDI Trustees Report, as of July 1, 1974-2028. . . . 28

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

Intermediate Assumptions of the 2004 OASDI Trustees Report, 1974-2028 . . . . . . . . . . . . . . 29

IV.B1 SSI Federally-Administered Applications,1 Calendar Years 1974-2028 . . . . . . . . . . . . . . . . . 31

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2028. . . . . . . . . . . . . . . . . . 33

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2028 . . . . . . . 35

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

Calendar Years 1974-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2028 . . . . . 37

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2028 38

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

Selected Social Security Area Population Totals, as of December, 1975-2028 . . . . . . . . . . . . 40

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

in Current-Payment Status as of December, 1974-2028 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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

as of December, 1974-2028. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2004. . . . . . . . . . . . . . . . . . . 44

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2004 . . . . . . . . . . . . . . . . . . . . . 45

IV.C3 SSI Federal Payments in Constant 2004 Dollars, Calendar Years 1974-2028 . . . . . . . . . . . . . 47

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

Calendar Years 1974-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2003 . . . . . . . . . 48

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2028. . . . . . . . . . . . . . . 50

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2004 . . . . . . . . . . . . . . . . . . . . . . . . . . 51

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

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

Year of Initial Decision and Level of Decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
(XII)

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

December, 1987-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

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

Participating in Other Work Incentives as of December, 1990-2003 . . . . . . . . . . . . . . . . . . . . 95

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

Recipients, as of December, 1987-2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2003 . . . . . . . 98

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

Participation in Selected Programs Based on SSA Administrative Records, 

December, 2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

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

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

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

December, 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1980-2030 . . . . . . 32

IV.B2 SSI Federally-Administered New Entrants by Age Group, Calendar Years 1980-2030. . . . . . 34

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1980-2030 . . . . . . 38

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

as of December, 1980-2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

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 . . . . . . . 41

IV.C1 SSI Federal Payments, by Age Group, in Constant 2004 Dollars, Calendar Years 1980-2030 46

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1980-2030. . 49

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

as of December, 1987-2003. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
.
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 2004 a monthly Federal cash payment of $564 ($846 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 eighth 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.
2004 SSI Annual Report

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II. HIGHLIGHTS

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

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

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

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

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During 2003, 1.8 million individuals applied for SSI benefits based on blindness or disability, an

increase of 4 percent over 2002. An additional 0.1 million applied for SSI benefits based on age, a

decrease of 5 percent from 2002. In calendar year 2003, 828 thousand applicants were awarded SSI

benefits, an increase of almost 1 percent over the 821 thousand awarded benefits in 2002.

 • On average during calendar year 2003, 6.6 million individuals received Federal SSI benefits on a

monthly basis. This group was composed of 1.1 million aged recipients, 5.4 million disabled recipients, and 72 thousand blind recipients. Of the 5.4 million blind or disabled recipients, 0.7 million

were aged 65 or older. An estimated 7.4 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 in calendar year 2003 totaled $32.9

billion, up from $31.6 billion in 2002.

 • On average during calendar year 2003, 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 50 thousand blind recipients. An estimated

2.8 million individuals received at least 1 month’s Federally-administered State supplementary payment during calendar year 2003.

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

totaled $4.0 billion in calendar year 2003, up from $3.8 billion in 2002.

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

reaching 52 percent in 2003.

 • The cost of administering the SSI program in fiscal year 2003 was $2.7 billion, which was roughly

7 percent of total Federally-administered SSI expenditures.

 • In January 2004, 6.9 million individuals received Federally-administered monthly SSI benefits averaging $426. Of these, 6.6 million received monthly Federal SSI payments averaging $393, and

2.5 million received monthly State supplementation payments averaging $138.

B. SSI LEGISLATION SINCE THE 2003 ANNUAL REPORT

Since the 2003 SSI Annual Report was transmitted to the President and Congress on May 30, 2003, the

Social Security Protection Act of 2004 (Public Law 108-203) was enacted on March 2, 2004. The new law

contains the following legislative changes to the SSI program:
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2004 SSI Annual Report

Representative Payees

 • Requires the Commissioner to reissue benefits under SSA-administered programs (including SSI)

whenever an individual representative payee serving 15 or more beneficiaries, or an organizational

representative payee, is found to have misused a beneficiary’s funds. Defines “misuse” as when a representative payee converts benefits for use other than for the use and benefit of the beneficiary. Also

excludes reissued benefits from resources under SSI for 9 months. 

 • Disqualifies an individual from serving as a representative payee if he/she has been convicted of an

offense resulting in more than 1 year of imprisonment, unless the Commissioner determines that such

certification would be appropriate notwithstanding such conviction. Also, disqualifies a person who is

fleeing prosecution, custody, or confinement from serving as a representative payee. 

 • Requires representative payees to forfeit their fee from the beneficiary’s benefits for the months during which the representative payee misused the funds.

 • Treats misused benefits by a nongovernmental representative payee as overpayments to the representative payee, subject to overpayment recovery authorities.

 • Provides SSA with the authority to redirect payments of SSI benefits to local Social Security field

offices if a representative payee fails to provide an annual accounting of benefits report. The Commissioner is required to provide proper notice prior to redirecting benefits.

 • Authorizes appropriations up to $8.5 million to conduct statistically valid surveys to determine how

payments made to representative payees are being used on behalf of OASDI and SSI beneficiaries.

 • Authorizes imposition of civil monetary penalties and administrative sanctions for offenses involving

misuse of SSA-administered program benefits (including SSI) received by a representative payee.

 • Requires nongovernmental fee-for-service organizational representative payees to be both licensed

and bonded, provided that licensing is available in the State.

 • Requires the Commissioner to provide for periodic onsite reviews for all nonprofit fee-for-service

payees, organizational payees (both governmental and nongovernmental) representing 50 or more

beneficiaries, and individual payees representing 15 or more beneficiaries. Also, requires the Commissioner to report annually to Congress on the results of the onsite reviews.

Judicial Orders of Restitution

 • Authorizes Federal courts to order a defendant convicted of defrauding SSA-administered benefit

programs to make restitution to SSA.

Cross-Program Recovery for Benefit Overpayments

 • Authorizes recovery of overpayments paid from one SSA-administered program from the benefits

paid under another SSA-administered program. Provides for withholding up to 100 percent of any

underpayment and 10 percent of ongoing monthly benefits, except that any recovery from ongoing

SSI benefits would be limited to the lesser of 100 percent of the monthly benefit or 10 percent of the

individual’s total monthly income.

Fugitive Felons

 • Revises the current prohibition of paying SSI benefits to fugitive felons and parole and probation violators if the Commissioner determines that good cause exists for paying such benefits.
2004 SSI Annual Report

4

 • Requires the Commissioner to apply the good cause exception if a court of competent jurisdiction

finds the person not guilty, charges are dismissed, a warrant for arrest is vacated, or there are similar

exonerating circumstances identified by the court. The Commissioner would also apply the good

cause exception if the individual establishes to the satisfaction of the Commissioner that he/she was

the victim of identity fraud and the warrant was issued on such basis.

 • Provides that the Commissioner may apply the good cause exception if the criminal offense was nonviolent and not drug-related, and in the case of probation or parole violators, both the violation and

the underlying offense were non-violent and not drug-related. In such cases, the Commissioner may

establish good cause based on mitigating factors.

Attorney Fees

 • Extends the current OASDI attorney fee withholding process to SSI for a period of 5 years. Caps the

assessment for SSA processing attorney fees at $75 or 6.3 percent of the attorney fee, whichever is

lower.

 • Authorizes a demonstration project to allow non-attorneys the option of fee withholding under both

OASDI and SSI for 5 years.

 • Requires the General Accounting Office (GAO) to study the results of extending fee withholding to

SSI and to non-attorneys under both OASDI and SSI.

Federal and State Work Incentive Services

 • Allows Benefits Planning, Assistance, and Outreach services and Protection and Advocacy systems

services to be provided to those beneficiaries in section 1619(b) status, those beneficiaries receiving

only a State Supplementary payment, and those beneficiaries in an extended period of Medicare eligibility under title XVIII after entitlement to disability benefits under title II has ended due to work

activity.

Certain Infrequent and Irregular Income and Certain Interest or Dividend Income

 • Changes the calculation of infrequent and irregular income from a monthly to a quarterly basis. Also,

excludes from the determination of an individual’s income all interest and dividend income earned on

countable resources. 

Uniform 9-Month Resource Exclusion

 • Increases to 9 months and makes uniform the time period for excluding from resources amounts

attributable to payments of past-due Social Security and SSI benefits and earned income and child tax

credits.

Student Earned Income Exclusion

 • Permits the student earned income exclusion to apply to any individual under age 22 who is a student. 

Retrospective Month Accounting—Nonrecurring Income

 • Eliminates triple counting of one-time, nonrecurring income by providing that this income will be

counted only for the month that the income is received, and not for any other month during the transition to retrospective monthly accounting during the first 3 months of an individual’s SSI eligibility.
5

2004 SSI Annual Report

Payments to Blind or Disabled Children of Military Parents Stationed Overseas

 • Extends SSI eligibility to blind or disabled children who are U.S. citizens living with a parent

assigned to permanent U.S. military duty outside of the United States, and who were not receiving

SSI benefits while in the United States. Previously, only blind or disabled children who received an

SSI benefit for the month before the parent reported for permanent duty abroad were eligible.

Education-Related Income and Resources

 • Excludes from the determination of income any gift to an individual for use in paying tuition or educational fees, just as grants, scholarships and fellowships for such use are currently excluded from the

determination of income.

 • Excludes grants, scholarships, fellowships, or gifts to be used for tuition or educational fees from an

individual’s countable resources for 9 months after the month of receipt.

Treatment of Uniformed Service Compensation

 • Allows the Commissioner to count military compensation as reported on a monthly leave and earnings statement issued by the military, which reflects compensation earned in a prior month as received

in the prior month.

C. CURRENT ISSUES FACING THE SSI PROGRAM

Since May 2003, new issues facing the SSI program have emerged relating to improving the disability

determination process, program simplifications, and outreach to homeless individuals. As has been the

case in previous years, SSA continues to work on issues relating to program integrity and stewardship.

By any measure, the SSI program has been extremely successful over its 30 years of operation. Each

month, it provides about 6.6 million of the nation’s most vulnerable individuals with sufficient income to

purchase the basic necessities of food, clothing, and shelter. For the low-income aged, blind, or disabled

individuals, SSI is truly the program of last resort and is the safety net that protects them from impoverishment. Clearly the issue of what the SSI program should accomplish is a wide-ranging public policy issue,

and one that Congress and other interested parties may want to consider with a broad view.

More than four out of every five individuals on the SSI rolls are either blind or under a disability. Most of

these individuals underwent the rigorous and time-consuming process of having SSA evaluate their

impairments and determine their disabilities. Many also have had to go through the Administrative-LawJudge level of appeal before they came onto the SSI rolls. 

When Jo Anne B. Barnhart became Commissioner of Social Security, she pledged to improve Social Security’s disability process. The need for improvement in the disability process drew further attention when in

January 2003 GAO added modernizing Federal disability programs—including SSI and OASDI—to its

high-risk list. On September 25, 2003, during a hearing before the House Ways and Means Subcommittee

on Social Security, the Commissioner demonstrated her commitment to improving the process by outlining a new approach to disability determination. Her vision includes changes that would shorten decision

times, pay benefits to people who are obviously disabled much earlier in the process, and test new incentives for those with disabilities who wish to remain in, or return to, the workforce. 

The Commissioner’s approach incorporates insights and suggestions from a wide variety of important perspectives. The Commissioner met with SSA and Disability Determination Services (DDS) employees and

public stakeholders, and reviewed reports issued by interested parties such as the Social Security Advisory
2004 SSI Annual Report

6

Board, advocacy groups and members of Congress. She considered all these recommendations when

designing her new approach to disability determinations. This open dialogue and outreach will continue,

and all interested parties can provide input as the Agency develops a final plan to improve the disability

process. The proposed approach focuses on accountability, a better documented disability folder, improved

medical and vocational expertise, and in-line quality reviews. The successful implementation of a new

electronic disability claims processing system (eDib) will give SSA the ability to achieve these significant

changes. In combination, these improvements should result in making the right decision as early in the

process as possible. 

With regard to program simplification, SSI simplification provisions were included in the President’s

FY 2004 budget and in SSI draft bills that had been sent to Congress in 2002 and again in 2003. In March,

2004, several important provisions were enacted in Public Law 108-203, the Social Security Protection

Act of 2004. One such provision would exclude the small amounts of income that are paid as interest or

dividends on SSI beneficiaries’ resources and change from $20 a month to $60 a quarter the amount of

infrequent income an individual can receive without it affecting his/her SSI benefit. By eliminating the

reporting and recording of these very small amounts of income, SSI overpayments are avoided and the

program is simpler and more efficient. Another provision eliminates the situation in which income

received in the first month of eligibility is counted three times even if it is only received once. This triplecounting caused beneficiary confusion and was very difficult for SSA employees to administer and

explain. While the budget impact of these provisions is negligible, the provisions are important steps in

simplifying the program. SSA will continue to look at ways to simplify the program.

SSA has had a long history of reaching out to homeless and other vulnerable individuals. In FY 2003,

Congress appropriated $8 million and directed SSA to use the appropriation to provide outreach to “homeless and under-served” populations. In April 2004, SSA awarded $6.6 million in funding to 34 organizations to assist eligible chronic homeless individuals apply for SSI and Social Security disability benefits.

These Homeless Outreach Projects and Evaluation (HOPE) awards are part of the Bush Administration’s

commitment to end chronic homelessness in the next decade. The target population for these funded

projects is composed of homeless individuals who are members of under-served groups, which may

include people with severe and persistent mental illness, HIV infection, limited English proficiency, multiple and co-occurring disorders or cognitive impairments, as well as homeless veterans with disabilities.

Through these awards, SSA hopes to achieve faster claim decisions and higher allowance rates for those

homeless individuals who are eligible for disability benefits. Staff of organizations awarded funding will

receive training to improve their knowledge of Social Security’s disability programs and application process.

The cooperative agreement grants are in addition to what SSA routinely does with regard to homelessness.

SSA’s over 1,300 field offices have established a variety of activities and special procedures to reduce the

problems faced by homeless individuals in obtaining Social Security or SSI benefits for which they are eligible. The primary impediment known to field office and DDS staff is the difficulty of maintaining contact

with the homeless individual. It is also difficult for homeless individuals to keep appointments and to

maintain records of medical treatment. To address these impediments, SSA allows homeless individuals to

receive their monthly checks at the local field office; assists individuals in establishing bank accounts for

direct deposit of SSA benefits and using automatic teller machines; and allows individuals to use the field

office as a message center, so that DDS appointments or requests for information are not missed. In addition, SSA has an ongoing program of distributing public information materials to appropriate agencies

involved with the homeless and maintaining resource information from those agencies in field offices in

order to provide referral services as needed. 

Program stewardship remains a high priority at SSA, and the SSI program continues to be the focus of that

priority. The SSI Corrective Action Plan, which the Commissioner released in June 2002, announced an
7

2004 SSI Annual Report

agenda of initiatives designed to improve the management of the program in several respects, including

program simplification and enhanced management accountability. The initiatives outlined in the Plan also

included actions to better prevent overpayment error (which targeted the root causes of the most important

types of overpayment), and actions to better detect and collect those overpayments which are not prevented.

Progress on the actions included in the Corrective Action Plan is reviewed monthly by the SSI Improvement Team, chaired by the Deputy Commissioner. Major long-term initiatives under the Plan include (1) a

test of monthly reporting of wages using touch-tone and voice-activated telephone technology, (2) a test of

the feasibility of electronic verification of bank account balances, (3) accelerated electronic death matches

and (4) improved debt collection strategies. The plan was also the catalyst for several changes that have

already been implemented. These include collecting overpayments using new software that identifies

unresolved overpayments when underpayments become payable on an individual’s SSI record, mandatory

cross-program recovery, and new administrative offset and credit bureau referrals. These improvements

contributed to increased recovery of SSI overpayments at reduced cost. Specifically, SSI overpayment collections in FY 2002 totaled $859.6 million and in FY 2003 they totaled $941.6 million (up 9 percent), with

almost $100 million of that total stemming from the automated netting technique. SSA also proposed (and

Congress then enacted) new authority for expanded cross-program recovery which included lifting the

restriction on the amount of offset that can be applied to retroactive checks and authorizing the recovery of

SSI overpayments from underpayments owed in the OASDI program. An estimated SSI savings over 10

years of nearly $200 million is expected from the legislation. 

Data on payment accuracy for FY 2003 are not yet available. In FY 2002 the payment accuracy rate (payments free from overpayment error as a percentage of total outlays) was 93.4 percent. The goal for FY

2003 was 95.4 percent. This was a very challenging target given the complexity of the SSI program and

the difficulty of keeping up with all of the payment-affecting changes in the lives of more than 6.6 million

SSI recipients. While we are not optimistic about reaching that goal, we do expect improvement since several substantial actions were taken to reduce overpayment error. The most important of these was a significant increase in the number of redeterminations of eligibility that were processed by the field offices (they

were increased by about 200,000). These redeterminations produced an estimated $270 million in additional overpayment preventions.

It is important to remember that the SSI program is a means-tested program, where an individual’s current

means and assets are measured against dollar limitations specified in the law. The monthly SSI benefit

computation is also based on an individual’s actual amount of income. Thus, any changes in an individual’s income and assets that are not immediately known by SSA can cause overpayments. The very design

of SSI as a program that provides for current needs leads to some amount of unpreventable overpayment.

Certain amounts of overpayments are unpreventable because of due process notification requirements or

because an individual’s income increases during a month after the SSI benefit has already been paid for

the month. Other causes of overpayments result from recipients reporting benefit-changing events late or

not at all. In addition, some amount of preventable overpayment accrues because SSA is not able to act

promptly on reports of changes due to insufficient resources and competing workloads. There are very few

occurrences of fraud in the SSI program.

In recognition of SSA’s experience with SSI, SSA has been given a significant role in determining individuals’ incomes in connection with provisions in Public Law 108-173, the Medicare Prescription Drug,

Improvement, and Modernization Act of 2003. SSA will calculate Part B premiums for high-income beneficiaries and withhold the premiums for this program from beneficiaries’ Social Security checks. SSA will

also determine eligibility of low-income seniors for drug benefit subsidies under Medicare Part D. While

SSA has made income determinations since the inception of the SSI program, these new Part B and Part D

provisions raise their own set of issues. Much of the planning for these responsibilities has been com-
2004 SSI Annual Report

8

pleted, but the actual impact on SSA’s other workloads has not been determined as the Part D and Part B

provisions are not in effect until January 2005 and January 2007, respectively. 

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS

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

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

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

is expected to continue throughout the projection period largely due to the growth in the U.S. population. By 2028, the Federal SSI recipient population is estimated to reach 8.5 million. Expressed as a

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

slightly from 2.2 percent of the population in 2003 to 2.4 percent by 2028. 

 • Federal expenditures for SSI payments in calendar year 2004 are estimated to increase by $1.7 billion

to $34.7 billion, an increase of 5.2 percent from 2003 levels. In constant 2004 dollars, SSI program

outlays are projected to increase to $43.8 billion in 2028, a real increase of 1.0 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 2003 to 0.24 percent of GDP by

2028.
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2004 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
2004 SSI Annual Report

10

 • 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, 2004, the Federal benefit rate is $564 a month for individuals and $846 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 is expected to result in death and (1) if

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

marked and severe functional limitations.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 $810 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $810 a month, he/she

generally would not be considered disabled. However, if an SSI recipient is earning over $810 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 $810 was increased from $800 effective January 1, 2004 (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.
11

2004 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.
2004 SSI Annual Report

12

There are two exceptions to the residency and physical presence requirements: 

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

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

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

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

while overseas.

 — 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

1 See table IV.A2 for historical and estimated future Federal benefit rates.
13

2004 SSI Annual Report

is not considered income to the individual. In addition, some items that are considered to be income are

excluded when determining the amount of an individual’s benefit.

Income 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 ($30 or less a quarter). 

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 ($60 or less a quarter). 

2. Resources 

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

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

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

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

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

used for an individual’s food, 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,

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.
2004 SSI Annual Report

14

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

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; 

1 A complete list of the SSI resource exclusions can be found in section V.B.
15

2004 SSI Annual Report

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

6 months in any 9-month period);

 • 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

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.
2004 SSI Annual Report

16

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

age 181 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

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 support2 or the previous version of the affidavit. Generally, individuals who entered the country before 1998 did so under the old version of the affidavit.3

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.4 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. 

1 Under age 21, if a student.

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

3 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.

4 For a temporary period—January 1994 through September 1996—the deeming period was 5 years.
17

2004 SSI Annual Report

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

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

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

1. 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 and

regularly attending school. It is intended to help defray the cost of educational training. Under current regulations, up to $1,370 of earned income per month but no more than $5,520 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. 

1 Increased from $1,340 and $5,410, respectively, effective January 1, 2004 (65 FR 82905). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.
2004 SSI Annual Report

18

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

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

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

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

goal. 

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. 
19

2004 SSI Annual Report

7. Vocational Rehabilitation/Ticket to Work Program

Since the beginning of the SSI program, State Vocational Rehabilitation (VR) agencies have provided services to those blind or disabled SSI recipients whom they accepted as a client. SSA has traditionally reimbursed the VR agency 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 referred to as an “employment network” (EN), or from a State VR agency. In

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

8. Expedited Reinstatement

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

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

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

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

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

1 State VR agencies generally have the option on a case-by-case basis of electing to be paid under an EN payment system or under the traditional cost reimbursement payment system.
2004 SSI Annual Report

20

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

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

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

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

time.

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

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

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

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

claimants in obtaining the necessary proofs.

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

medical eligibility factors.

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

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

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

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

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

2. Determination of Eligibility

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

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

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

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

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

first and second months are both determined using the income received in the first month. (One-time, nonrecurring income would only be counted in the month received.)
21

2004 SSI Annual Report

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 ($31 a month in 2004 ($59 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 institution to maintain the retroactive payment. Expenditures from the account must be used primarily for certain

expenses related to the child’s impairment.

1 Medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
2004 SSI Annual Report

22

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

The SSI program 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. However, beginning no later than March 2005, direct payment of attorney fees

will be extended to the SSI program under the same process and in the same manner as fees are directly

paid in the Social Security program. Like the fee process in the Social Security program, attorneys will be

charged an assessment of the smaller of 6.3 percent of each authorized fee withheld or $75. The flat-rate

cap will be adjusted based on annual cost-of-living adjustments, rounded down to the next lower dollar. In

addition, beginning no later than March 2005, the Commissioner will conduct a nationwide demonstration

project providing for extension of fee withholding for non-attorney representatives under Social Security

and SSI. The SSI fee withholding and direct payment of fees, and the demonstration project provisions,

are temporary in that their authority ends after 5 years.

7. Advance Payments 

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

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

on their SSI status. 

a. Emergency Advance Payments 

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

1 Fee agreements prior to February 1, 2002, were limited to the lesser of 25 percent of the retroactive payment or $4,000.
23

2004 SSI Annual Report

b. Presumptive Disability or Blindness 

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

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

G. STATE1 SUPPLEMENTATION

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

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

were given the option to either provide no supplementation to the Federal assistance payments or to supplement those payments based on their views of the needs of their citizens. They were mandated to assure

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

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

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

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

1. Optional State Supplementary Payment Programs 

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

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

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

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

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

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

below).

2. Mandatory State Supplementary Payment Programs 

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

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

constitutional bar against mandatory State supplementation. 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 $8.77 fee for each supplementary payment issued in fiscal year 2004. Fees are projected to rise in succeeding fiscal years, based on changes in the consumer price index.

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

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.
2004 SSI Annual Report

24

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

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. 
25

2004 SSI Annual Report

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.

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.
2004 SSI Annual Report

26

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

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

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

4 Mandatory minimum State supplementation program is Federally-administered.

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

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

 United States and 

District of Columbia

Optional State program—

Administered by:

Method of mandatory 

passalong of benefit 

increases from 

cost-of-living adjustments

Medicaid eligibility 

determination—

Interim 

assistance 

reimbursement 

agreement 

with SSA

Based on: Agreement 

with SSA 

to 

determine 

State eligibility

Federal 

(SSA)

Federal 

& State

“Payment

levels”

“Total

expenditures”

Federal 

criteria

State

criteria

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

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

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

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

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

Total number of 

States . . . . . . . . . . . 30 11 4 42 8 40 11 33 39
27

2004 SSI Annual Report

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER 

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2004-28

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

Consequently, future SSI program participation will depend on a variety of difficult-to-predict factors

including the performance of national and local economies, distribution of personal income, the prevalence of disability in the general population, and the determination of disability as defined by the Social

Security Act. 

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

May 1997, were prepared in conjunction with the President’s Budget for only a short-term projection

period. These short-term 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 which mandate this report now require that such projections of future program participation be

prepared for a period of at least 25 years. Due to the complex interaction between the economy and the

SSI program, a model 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.

Therefore, the Office of the Chief Actuary began a multiyear program of research to develop the appropriate data and model to reflect the impact of the relevant factors on the future of the SSI program. We have

incorporated improvements to our model on an annual basis, and the estimates presented in this report

reflect this progression of improvements.

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

understand and project the various transitions in and out of payment status. In addition, movements out of

payment status are further examined by reason for such movements. This analysis is currently limited to

two broad groups: (1) terminations due to death and (2) suspension of payment due to all other reasons.1

Disaggregating by age enables us to better analyze the transition from disabled child status to status as a

disabled adult at age 18, and provides us with an enhanced ability to analyze the age structure of the historical and projected disabled adult population. Recently, 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

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

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

also shown.

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS

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

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

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

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

assumptions developed for the 2004 Annual Report of the Board of Trustees of the Federal Old-Age and

Survivors Insurance and Disability Insurance (OASDI) Trust Funds.2 Detailed discussion of these demographic and economic parameters is presented in sections V.A and V.B of that report.3 The key assumptions utilized directly for the projections presented in this report are summarized in the following two

tables. Table IV.A1 presents population projections summarized for the age subgroups that are used in the

presentation of SSI participant projections discussed in the next section.

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

(2) recovery from a qualifying disability.

2 House Document 108-176, published March 23, 2004.

3 Ibid, Section V.A, Demographic Assumptions and Methods and Section V.B, Economic Assumptions and Methods.
2004 SSI Annual Report

28

Note: Totals do not necessarily equal the sums of rounded components. Historical population data subject to revision.

As described in section III.D.1, the monthly Federal benefit rate is adjusted in January of each year to

reflect changes in the level of consumer prices. The adjustment factor is based on the year-to-year increase

in the CPI for the third quarter of the calendar year. This cost-of-living adjustment is identical to the

adjustment of Social Security benefits under the OASDI program. In previous years, occasional ad hoc

increases were also applied to the Federal benefit rates, either in place of or in addition to the automatic

adjustments. The history of legislation affecting the Federal benefit rates is presented in table V.A1. Table

IV.A2 presents a complete history of the cost-of-living adjustment factors and Federal benefit rates since

the inception of the program, along with projections of such amounts consistent with the economic

assumptions underlying the SSI expenditure estimates discussed in section IV.C.

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

Intermediate Assumptions of the 2004 OASDI Trustees Report, as of July 1, 1974-2028

[In thousands]

Year

Age groups1

1 Age as of last birthday.

Total

0-17 18-34 35-49 50-64 65-74 75 or older all ages

Historical data:

1974 ................. 70,713 60,129 36,328 32,819 13,883 8,883 222,755

1975 ................. 69,726 62,092 36,311 33,165 14,188 9,117 224,599

1976 ................. 68,736 63,980 36,478 33,437 14,509 9,362 226,501

1977 ................. 67,830 65,644 36,887 33,705 14,840 9,618 228,524

1978 ................. 67,001 67,223 37,470 33,940 15,167 9,886 230,687

1979 ................. 66,271 68,855 38,044 34,110 15,483 10,170 232,932

1980 ................. 65,746 70,450 38,548 34,256 15,772 10,463 235,234

1981 ................. 65,419 71,560 39,511 34,339 16,046 10,759 237,634

1982 ................. 65,213 72,164 41,013 34,304 16,339 11,087 240,119

1983 ................. 65,164 72,646 42,544 34,186 16,609 11,418 242,566

1984 ................. 65,273 72,988 44,005 34,098 16,861 11,733 244,958

1985 ................. 65,528 73,208 45,444 34,003 17,156 12,041 247,380

1986 ................. 65,851 73,317 47,025 33,800 17,519 12,340 249,852

1987 ................. 66,126 73,382 48,703 33,657 17,842 12,656 252,365

1988 ................. 66,360 73,481 50,394 33,630 18,097 12,971 254,933

1989 ................. 66,812 73,395 52,163 33,616 18,349 13,290 257,625

1990 ................. 67,686 72,884 54,009 33,689 18,550 13,643 260,461

1991 ................. 68,793 72,095 55,846 33,938 18,711 13,998 263,382

1992 ................. 69,890 71,264 57,550 34,417 18,894 14,340 266,355

1993 ................. 70,883 70,502 59,153 35,060 19,032 14,658 269,288

1994 ................. 71,747 69,790 60,803 35,694 19,097 14,963 272,096

1995 ................. 72,443 69,147 62,546 36,267 19,100 15,299 274,801

1996 ................. 73,028 68,654 63,879 37,284 19,014 15,664 277,523

1997 ................. 73,486 68,355 64,707 38,816 18,894 16,000 280,259

1998 ................. 73,812 68,201 65,506 40,341 18,750 16,295 282,906

1999 ................. 74,121 68,139 66,252 41,826 18,614 16,570 285,522

2000 ................. 74,413 68,386 66,853 43,242 18,560 16,868 288,322

2001 ................. 74,761 68,903 67,360 44,666 18,541 17,179 291,411

2002 ................. 75,050 69,408 67,707 46,218 18,551 17,393 294,326

2003 ................. 75,241 69,688 67,849 47,911 18,621 17,533 296,844

Projected:

2004 ................. 75,447 69,851 67,954 49,676 18,767 17,653 299,348

2005 ................. 75,646 69,992 68,068 51,490 18,985 17,754 301,935

2006 ................. 75,777 70,268 68,052 53,253 19,320 17,821 304,491

2007 ................. 75,808 70,804 67,793 54,932 19,828 17,858 307,023

2008 ................. 75,762 71,548 67,316 56,561 20,464 17,882 309,533

2009 ................. 75,709 72,361 66,712 58,204 21,124 17,914 312,025

2010 ................. 75,695 73,147 66,056 59,822 21,806 17,972 314,498

2011.................. 75,732 73,893 65,430 61,195 22,661 18,039 316,951

2012 ................. 75,833 74,550 64,888 62,252 23,741 18,130 319,394

2013 ................. 75,995 75,049 64,449 63,162 24,905 18,275 321,835

2014 ................. 76,212 75,349 64,151 64,012 26,049 18,473 324,247

2015 ................. 76,477 75,488 64,075 64,710 27,158 18,718 326,625

2016 ................. 76,744 75,626 64,224 65,165 28,201 19,032 328,992

2017 ................. 76,967 75,860 64,460 65,403 29,194 19,461 331,345

2018 ................. 77,104 76,206 64,654 65,529 30,207 19,980 333,681

2019 ................. 77,139 76,652 64,747 65,640 31,301 20,520 335,998

2020 ................. 77,299 76,961 64,774 65,743 32,423 21,092 338,292

2021 ................. 77,617 77,103 64,890 65,726 33,417 21,803 340,556

2022 ................. 77,923 77,228 65,195 65,483 34,255 22,699 342,784

2023 ................. 78,226 77,288 65,692 65,041 35,036 23,688 344,970

2024 ................. 78,509 77,240 66,346 64,485 35,820 24,684 347,084

2025 ................. 78,767 77,105 67,087 63,887 36,608 25,667 349,120

2026 ................. 79,002 76,968 67,852 63,323 37,325 26,631 351,100

2027 ................. 79,210 76,877 68,551 62,841 37,919 27,623 353,021

2028 ................. 79,390 76,844 69,102 62,462 38,403 28,678 354,879
29

2004 SSI Annual Report

1 Increases prior to 1984 were effective for the payment due on July 1 of the year. Increases shown for 1984 and later are effective for the payment due on

January 1 of the year.

2 A concept carried over from the former State assistance plans. There are currently fewer than 100 of those cases remaining.

3 Benefits paid in January, 1974 were based on the Federal benefit rates established by Public Law 92-603, enacted October 30, 1972: $130.00 for individuals; $195.00 for couples; and $65.00 for essential persons. Retroactive payments were subsequently made to adjust initial payments to the higher Federal

benefit rates established by Public Law 93-233, enacted December 31, 1973.

4 Ad hoc increases as specified in the law.

5 Originally determined as 2.4 percent, but pursuant to Public Law 106-554, enacted December 21, 2000, is effectively now 2.5 percent. 6 Benefits originally paid in 2000 and through July 2001 were based on Federal benefit rates of $512.00 and $530.00, respectively. Pursuant to Public Law

106-554, monthly payments beginning in August 2001 were effectively based on the higher $531 amount. Lump-sum compensation payments were made

based on an adjusted benefit rate for months prior to August 2001.

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

Assumptions of the 2004 OASDI Trustees Report, 1974-2028

Year

Benefit rate

increase 1

Federal benefit rate

Individual Couple Essential person 2

Historical data:

Initial benefit paid January 1, 1974 3 .............. — $140.00 $210.00 $70.00

1974 ...................................................... 4 4.3% 146.00 219.00 73.00

1975 ...................................................... 8.0 157.70 236.60 78.90

1976 ...................................................... 6.4 167.80 251.80 84.00

1977 ...................................................... 5.9 177.80 266.70 89.00

1978 ...................................................... 6.5 189.40 284.10 94.80

1979 ...................................................... 9.9 208.20 312.30 104.20

1980 ...................................................... 14.3 238.00 357.00 119.20

1981 ...................................................... 11.2 264.70 397.00 132.60

1982 ...................................................... 7.4 284.30 426.40 142.50

1983 ...................................................... 4 7.0 304.30 456.40 152.50

1984 ...................................................... 3.5 314.00 472.00 157.00

1985 ...................................................... 3.5 325.00 488.00 163.00

1986 ...................................................... 3.1 336.00 504.00 168.00

1987 ...................................................... 1.3 340.00 510.00 170.00

1988 ...................................................... 4.2 354.00 532.00 177.00

1989 ...................................................... 4.0 368.00 553.00 184.00

1990 ...................................................... 4.7 386.00 579.00 193.00

1991 ...................................................... 5.4 407.00 610.00 204.00

1992 ...................................................... 3.7 422.00 633.00 211.00

1993 ...................................................... 3.0 434.00 652.00 217.00

1994 ...................................................... 2.6 446.00 669.00 223.00

1995 ...................................................... 2.8 458.00 687.00 229.00

1996 ...................................................... 2.6 470.00 705.00 235.00

1997 ...................................................... 2.9 484.00 726.00 242.00

1998 ...................................................... 2.1 494.00 741.00 247.00

1999 ...................................................... 1.3 500.00 751.00 250.00

2000 ...................................................... 5 2.5 6 513.00 769.00 257.00

2001 ...................................................... 3.5 6 531.00 796.00 266.00

2002 ...................................................... 2.6 545.00 817.00 273.00

2003 ...................................................... 1.4 552.00 829.00 277.00

2004 ...................................................... 2.1 564.00 846.00 282.00

Projected:

2005 ...................................................... 1.1 570.00 855.00 285.00

2006 ...................................................... 1.6 579.00 869.00 290.00

2007 ...................................................... 2.0 591.00 886.00 296.00

2008 ...................................................... 2.5 606.00 909.00 303.00

2009 ...................................................... 2.8 623.00 934.00 312.00

2010 ...................................................... 2.8 640.00 960.00 320.00

2011....................................................... 2.8 658.00 987.00 329.00

2012 ...................................................... 2.8 676.00 1,015.00 339.00

2013 ...................................................... 2.8 695.00 1,043.00 348.00

2014 ...................................................... 2.8 715.00 1,072.00 358.00

2015 ...................................................... 2.8 735.00 1,102.00 368.00

2016 ...................................................... 2.8 755.00 1,133.00 378.00

2017 ...................................................... 2.8 777.00 1,165.00 389.00

2018 ...................................................... 2.8 798.00 1,198.00 400.00

2019 ...................................................... 2.8 821.00 1,231.00 411.00

2020 ...................................................... 2.8 844.00 1,266.00 423.00

2021 ...................................................... 2.8 867.00 1,301.00 434.00

2022 ...................................................... 2.8 892.00 1,338.00 447.00

2023 ...................................................... 2.8 917.00 1,375.00 459.00

2024 ...................................................... 2.8 942.00 1,414.00 472.00

2025 ...................................................... 2.8 969.00 1,453.00 485.00

2026 ...................................................... 2.8 996.00 1,494.00 499.00

2027 ...................................................... 2.8 1,024.00 1,536.00 513.00

2028 ...................................................... 2.8 1,052.00 1,579.00 527.00
2004 SSI Annual Report

30

Estimates presented in the sections that follow are based on the assumptions described in this section. Furthermore, for purposes of making these estimates, it is assumed that no changes will occur during the projection period in the present statutory provisions and regulations under which the SSI program operates.

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM

This section presents projections of the various subpopulations which lead to the numbers of persons

receiving Federal SSI payments. As described above, the model that produces these projections is structured to handle population flows by single-year-of-age.1 Correspondingly, the tables in this section present

population totals by selected age groupings for the SSI recipient categories of (1) aged and (2) blind or

disabled. The following paragraphs discuss these age groupings and recipient categories in more detail.

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

on meeting the age-652-or-older requirement for assistance, and other SSI eligibility requirements

including income and resource limits. In December 2003, there were 1.233 million aged recipients of

Federally-administered SSI payments. 

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

meeting the definition of blindness or disability and the applicable income and resource limits as well

as any other SSI eligibility requirements. This category is often subdivided into two subcategories

based on age: blind or disabled adults (age 18 or older) and blind or disabled children (under age 18).

In December 2003, there were 5.670 million blind or disabled recipients of Federally-administered

SSI payments 

 — The blind or disabled adults subcategory includes those individuals age 18 or older who meet

the definition of blindness or disability for individuals age 18 or older and SSI income and

resource limits. Included in this category are students aged 18 to 21 who must meet the adult definition of disability and differ from other adults only in that they qualify for a special student

earned income exclusion. After attainment of age 65, these individuals generally continue to be

classified as blind or disabled adults (rather than aged). In December 2003, there were 4.710 million blind or disabled recipients of Federally-administered SSI payments age 18 or older, including 7 thousand students who used the special student earned income exclusion and 757 thousand

disabled or blind recipients aged 65 or older

 — The blind or disabled children subcategory includes those individuals whose eligibility is established based on meeting the definition of blindness or disability for individuals under age 18.

These children are subject to parent-to-child deeming until they reach the age of 18. At age 18

these individuals continue to be eligible for SSI if they meet the definition of blindness or disability for individuals age 18 or older and, as a result, are reclassified as blind or disabled adults.

In December 2003, there were 959 thousand blind or disabled recipients of Federally-administered SSI payments who were under age 18.

Table IV.B1 presents historical and projected numbers of persons applying for SSI benefits, by calendar

year of application. Figure IV.B1 presents this same information in graphical form. Actual numbers of

applications received in 2003 were about 3.4 percent higher than were received in 2002 following an

increase of 9.6 percent from 2001 to 2002. The actual result for 2003 was 1.8 percent higher than esti1 Population flows are projected on a calendar-year-age basis, with activity throughout a given year tabulated according to age at the end of the calendar

year. Tabulations of recipients in current-payment status are provided as of December of each calendar year at which time calendar year of age and age last

birthday are the same. However, the tabulations that reflect activity throughout the calendar year are summarized according to calendar year of age and will

not correspond precisely to tabulations summarized according to age last birthday. For example, applications for the 0-17 age group for a given calendar year

include applications only for those individuals who are under 18 at the end of the calendar year.

2 Individuals may apply for SSI benefits based on age of the day preceding their 65th birthday.
31

2004 SSI Annual Report

mated for 2003 in the 2003 Annual Report. This 2-year growth in applications is likely related to the

downturn in the economy that began early in 2001. Our short-term projections of numbers of applications

reflect a continuation of that higher level of applications over the next 2 years, but return to a path consistent with longer term historical trends as the economy is assumed to recover. Longer term trends in applications are estimated to continue to grow from current levels roughly in line with overall population

growth, as was assumed in last year’s report.

1 Based on data reported in the Integrated Workload Management System (formerly known as the District Office Workload Report).

2 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 1974-2028

[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

2003 . . . . 400 404 565 408 4 5/ 100 36 1,781 135 1,916

Projected:

2004 . . . . 397 403 563 425 5 5/ 100 36 1,793 136 1,929

2005 . . . . 392 392 558 432 5 5/ 104 37 1,779 141 1,920

2006 . . . . 381 378 540 443 5 5/ 108 37 1,747 145 1,892

2007 . . . . 371 367 520 451 6 5/ 113 37 1,715 150 1,865

2008 . . . . 366 362 505 460 6 5/ 116 37 1,700 153 1,853

2009 . . . . 362 360 494 470 6 5/ 117 37 1,694 154 1,848

2010 . . . . 362 364 490 481 7 5/ 118 37 1,705 155 1,860

2011 . . . . 363 368 485 490 7 5/ 124 37 1,714 160 1,874

2012 . . . . 364 371 481 498 8 5/ 130 37 1,721 167 1,888

2013 . . . . 365 372 478 505 8 5/ 135 37 1,728 172 1,901

2014 . . . . 366 373 476 511 8 5/ 140 38 1,735 178 1,913

2015 . . . . 367 373 476 515 8 5/ 145 38 1,740 183 1,923

2016 . . . . 368 374 478 516 8 5/ 149 39 1,744 188 1,932

2017 . . . . 369 375 479 517 9 5/ 154 40 1,749 193 1,942

2018 . . . . 370 378 480 516 9 5/ 159 41 1,753 200 1,953

2019 . . . . 371 380 480 517 9 5/ 164 42 1,757 206 1,964

2020 . . . . 372 381 480 517 10 5/ 169 43 1,760 213 1,972

2021 . . . . 374 382 481 515 10 5/ 173 45 1,762 218 1,980

2022 . . . . 375 382 484 512 10 5/ 178 47 1,764 225 1,988

2023 . . . . 376 382 489 507 10 5/ 181 49 1,765 230 1,995

2024 . . . . 378 382 494 502 10 5/ 185 51 1,766 236 2,002

2025 . . . . 379 381 500 497 10 5/ 189 53 1,767 242 2,009

2026 . . . . 380 381 505 493 10 5/ 191 55 1,769 245 2,014

2027 . . . . 380 380 510 489 10 5/ 192 57 1,770 249 2,019

2028 . . . . 381 380 514 488 10 5/ 194 59 1,773 252 2,025
2004 SSI Annual Report

32

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 and 2003 with an increase in 2003 of 0.8 percent following an

increase of 6.4 percent in 2002. The growth in awards in 2002 and 2003 did not keep pace with the growth

in applications, and the number of claims pending adjudication has grown. Our projections assume that the

level of new entrants will continue at a somewhat higher level for the next few years, reflecting both the

continued assumed higher level of applications in the next couple of years and the reduction in pending

claims, as more administrative resources become available to process claims. Over the longer term the

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

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

75 or older
33

2004 SSI Annual Report

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 1974-2028

[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

2003 . . . . . 180 132 194 214 4 5/ 77 27 724 104 828

Projected:

2004 . . . . . 179 137 206 233 5 5/ 78 27 760 105 864

2005 . . . . . 179 140 215 249 5 5/ 84 29 788 113 900

2006 . . . . . 175 137 211 257 6 5/ 87 29 786 117 902

2007 . . . . . 168 128 195 254 7 5/ 91 29 751 120 871

2008 . . . . . 165 125 188 258 7 5/ 94 29 743 123 866

2009 . . . . . 163 124 184 263 7 5/ 94 29 740 124 864

2010 . . . . . 163 124 180 266 6 5/ 95 29 739 124 864

2011 . . . . . 163 124 178 269 7 5/ 99 29 740 128 868

2012 . . . . . 163 124 176 272 7 5/ 104 29 743 133 876

2013 . . . . . 164 125 174 277 7 5/ 108 29 747 138 885

2014 . . . . . 164 125 173 280 7 5/ 113 30 751 142 893

2015 . . . . . 165 125 173 283 8 5/ 116 30 754 147 900

2016 . . . . . 165 125 174 284 8 5/ 120 31 756 150 907

2017 . . . . . 166 126 174 285 8 5/ 123 32 759 155 913

2018 . . . . . 166 126 175 285 8 5/ 127 32 761 160 921

2019 . . . . . 166 128 175 286 8 5/ 132 33 763 165 929

2020 . . . . . 167 128 175 286 9 5/ 136 34 764 170 935

2021 . . . . . 168 128 175 285 9 5/ 139 36 765 175 940

2022 . . . . . 168 128 176 283 9 5/ 143 37 765 180 945

2023 . . . . . 169 128 178 281 9 5/ 146 39 765 184 950

2024 . . . . . 169 128 180 279 9 5/ 149 40 765 189 955

2025 . . . . . 170 128 182 276 9 5/ 152 42 766 194 959

2026 . . . . . 170 128 184 274 9 5/ 153 44 766 197 962

2027 . . . . . 171 128 186 272 9 5/ 154 45 765 199 965

2028 . . . . . 171 128 187 270 9 5/ 155 47 766 202 968
2004 SSI Annual Report

34

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 2003 was 0.4 percent lower than anticipated in the 2003 Annual

Report. Terminations due to death were 3.1 percent lower than anticipated, but terminations due to reasons

other than death were 0.7 percent higher than estimated last year. When aggregated by category, the difference between actual 2003 results and the estimated terminations in last year’s report is attributable to the

aged.

 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 Projected
35

2004 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.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2028

[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

2003 . . . . 5 9 28 51 26 21 10 56 138 66 204

Projected:

2004 . . . . 6 9 29 54 27 22 11 60 147 71 218

2005 . . . . 6 9 30 55 28 21 11 60 149 71 220

2006 . . . . 6 9 30 58 29 22 11 60 154 71 224

2007 . . . . 6 10 30 60 30 22 11 60 158 70 228

2008 . . . . 6 10 29 62 31 22 11 59 161 70 231

2009 . . . . 6 10 29 64 32 23 11 59 163 70 233

2010 . . . . 6 10 28 66 32 23 11 59 166 70 236

2011 . . . . 6 10 28 68 33 23 12 58 168 70 238

2012 . . . . 6 10 27 68 35 24 12 58 171 69 240

2013 . . . . 6 10 27 69 36 24 12 57 173 69 242

2014 . . . . 6 10 26 70 37 25 13 57 175 69 244

2015 . . . . 7 10 26 71 38 25 13 56 177 69 247

2016 . . . . 7 10 26 72 40 25 14 56 180 70 249

2017 . . . . 7 10 26 72 41 26 14 56 182 70 252

2018 . . . . 7 11 26 72 42 27 15 56 184 71 255

2019 . . . . 7 11 26 72 43 28 15 56 186 71 257

2020 . . . . 7 11 26 72 44 28 16 56 188 72 260

2021 . . . . 7 11 26 72 46 29 16 57 190 73 263

2022 . . . . 7 11 26 72 47 30 17 58 192 75 266

2023 . . . . 7 11 26 71 48 31 17 59 193 76 269

2024 . . . . 7 11 26 70 49 32 17 60 195 78 273

2025 . . . . 7 11 27 70 50 33 18 62 196 79 276

2026 . . . . 7 11 27 69 50 34 18 63 198 81 279

2027 . . . . 7 11 27 68 51 35 19 65 199 83 282

2028 . . . . 7 11 28 68 52 36 19 67 200 86 286
2004 SSI Annual Report

36

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 1974-2028

[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

2003 . . . . 72 95 122 135 20 9 20 36 453 56 509

Projected:

2004 . . . . 71 95 122 137 18 9 16 34 452 51 503

2005 . . . . 73 101 120 138 19 9 17 34 460 52 512

2006 . . . . 79 105 123 147 19 10 17 34 483 51 535

2007 . . . . 79 110 124 156 20 10 18 34 500 52 551

2008 . . . . 75 114 124 164 22 10 19 34 509 53 562

2009 . . . . 70 117 122 169 23 10 20 35 511 54 566

2010 . . . . 68 118 118 171 24 10 20 36 509 56 565

2011 . . . . 67 120 116 174 25 11 21 36 512 57 569

2012 . . . . 68 120 115 177 26 11 22 35 516 57 573

2013 . . . . 68 121 113 179 27 11 23 35 519 58 576

2014 . . . . 69 121 112 181 27 11 24 35 522 58 580

2015 . . . . 69 121 111 182 28 11 25 34 522 59 581

2016 . . . . 70 122 111 183 29 11 25 34 526 60 585

2017 . . . . 70 123 111 183 30 12 26 34 528 60 589

2018 . . . . 70 125 111 183 30 12 27 34 531 61 592

2019 . . . . 69 126 111 183 31 12 28 35 533 63 596

2020 . . . . 70 127 111 183 32 13 29 35 535 64 599

2021 . . . . 70 127 111 182 33 13 30 36 536 65 602

2022 . . . . 70 128 112 181 34 14 30 36 537 67 604

2023 . . . . 70 128 113 179 35 14 31 37 538 68 607

2024 . . . . 70 128 114 177 35 14 32 38 539 70 609

2025 . . . . 70 128 116 175 36 15 33 39 540 72 612

2026 . . . . 71 128 117 173 36 15 33 40 541 74 615

2027 . . . . 71 129 118 172 37 16 34 42 542 75 617

2028 . . . . 71 129 119 171 37 16 34 43 543 77 620
37

2004 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.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2028

[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

2003 . . . . 76 104 149 186 46 30 31 92 591 122 713

Projected:

2004 . . . . 77 104 151 190 45 31 27 94 599 122 720

2005 . . . . 80 110 150 193 47 31 28 94 609 122 732

2006 . . . . 86 115 153 205 48 31 28 94 637 122 759

2007 . . . . 86 119 154 216 50 32 29 93 657 122 779

2008 . . . . 81 124 154 226 52 32 30 93 669 123 792

2009 . . . . 77 127 151 233 54 33 31 94 674 124 799

2010 . . . . 74 128 147 237 56 33 32 94 674 126 800

2011 . . . . 73 130 144 241 58 34 33 94 680 127 807

2012 . . . . 74 130 142 245 60 34 34 93 686 127 813

2013 . . . . 75 131 140 248 63 35 35 92 692 127 818

2014 . . . . 75 131 138 251 65 36 36 91 697 128 824

2015 . . . . 76 131 137 253 67 36 38 91 699 128 828

2016 . . . . 76 132 137 254 68 37 39 90 705 129 835

2017 . . . . 76 134 137 255 70 38 40 90 710 131 841

2018 . . . . 76 135 137 255 72 39 42 91 715 132 847

2019 . . . . 76 137 137 255 75 40 43 91 719 134 853

2020 . . . . 76 137 137 255 77 41 45 91 723 136 859

2021 . . . . 76 138 137 254 79 42 46 93 726 139 865

2022 . . . . 77 138 138 252 80 44 47 94 729 142 871

2023 . . . . 77 139 139 250 82 45 48 96 731 145 876

2024 . . . . 77 139 141 247 84 46 49 99 734 148 882

2025 . . . . 77 139 142 245 85 48 51 101 736 151 887

2026 . . . . 77 139 144 242 87 49 52 103 739 155 894

2027 . . . . 78 140 146 240 88 50 53 106 741 159 900

2028 . . . . 78 140 147 238 88 52 53 110 743 163 906
2004 SSI Annual Report

38

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 2003 was that there were roughly 0.4 percent fewer Federal SSI recipients at the end of

2003 than estimated for the 2003 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, 1974-2028

[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

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Historical Projected

75 or older

35-49

65-74

50-64

18-34

0-17
39

2004 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.

Historical data: (Cont.)

2000 . . . . 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

2001 . . . . 879 995 1,329 1,353 493 196 461 703 5,245 1,165 6,410

2002 . . . . 912 1,002 1,344 1,394 502 200 447 705 5,354 1,152 6,505

2003 . . . . 956 1,023 1,353 1,436 511 204 430 703 5,482 1,133 6,614

Projected:

2004 . . . . 998 1,049 1,369 1,496 519 207 420 697 5,639 1,117 6,756

2005 . . . . 1,030 1,078 1,393 1,571 529 213 413 694 5,813 1,108 6,921

2006 . . . . 1,049 1,103 1,402 1,645 542 216 416 686 5,957 1,102 7,059

2007 . . . . 1,058 1,120 1,387 1,700 562 220 421 678 6,047 1,100 7,147

2008 . . . . 1,066 1,133 1,364 1,751 581 223 430 668 6,117 1,099 7,216

2009 . . . . 1,074 1,145 1,337 1,802 596 226 439 659 6,179 1,098 7,277

2010 . . . . 1,084 1,156 1,311 1,849 610 230 447 650 6,240 1,096 7,337

2011 . . . . 1,096 1,166 1,287 1,884 630 233 459 639 6,296 1,098 7,394

2012 . . . . 1,107 1,174 1,267 1,909 656 237 473 631 6,350 1,104 7,454

2013 . . . . 1,118 1,180 1,250 1,934 680 240 489 624 6,402 1,113 7,516

2014 . . . . 1,128 1,186 1,235 1,958 703 244 508 619 6,454 1,127 7,580

2015 . . . . 1,137 1,191 1,229 1,975 724 249 528 616 6,505 1,143 7,648

2016 . . . . 1,144 1,199 1,229 1,985 743 254 546 616 6,554 1,162 7,716

2017 . . . . 1,149 1,207 1,231 1,988 763 262 564 620 6,600 1,184 7,784

2018 . . . . 1,151 1,219 1,232 1,989 785 269 583 626 6,644 1,209 7,854

2019 . . . . 1,151 1,231 1,231 1,989 809 276 604 633 6,686 1,238 7,924

2020 . . . . 1,158 1,236 1,230 1,988 833 282 626 642 6,726 1,268 7,995

2021 . . . . 1,163 1,242 1,233 1,981 854 290 644 657 6,763 1,301 8,065

2022 . . . . 1,169 1,247 1,240 1,967 873 301 659 677 6,798 1,336 8,134

2023 . . . . 1,175 1,251 1,252 1,950 892 311 674 699 6,830 1,372 8,203

2024 . . . . 1,181 1,254 1,265 1,929 911 321 689 721 6,860 1,410 8,271

2025 . . . . 1,186 1,255 1,280 1,909 929 329 706 743 6,889 1,449 8,337

2026 . . . . 1,192 1,257 1,296 1,890 942 338 722 765 6,915 1,487 8,401

2027 . . . . 1,196 1,260 1,309 1,875 952 347 735 789 6,938 1,524 8,462

2028 . . . . 1,201 1,263 1,319 1,862 960 357 745 815 6,960 1,559 8,520

 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, 1974-2028 (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 Projected
2004 SSI Annual Report

40

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. Since

2000 the growth rate for the Federal SSI recipient population has averaged over 1.5 percent per year. Our

projections indicate that by 2008 we expect to gradually return to the modest growth rate of less than 1

percent per year over the remainder of the 25-year projection period. In order to place this projected

growth in the context of overall population growth, table IV.B7 and figure IV.B5 present Federal SSI

recipients as percentages of selected Social Security Area population totals.

1 Blind or disabled recipients as a percentage of the total Social Security Area population.

2 Aged recipients as a percentage of the 65 or older Social Security Area population.

3 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations. 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, 1975-2028 

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 8.60 1.73

1976 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .85 7.75 1.67

1977 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .88 7.15 1.65

1978 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .89 6.67 1.62

1979 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .90 6.15 1.58

1980 . . . . 0.29 0.70 0.91 2.19 2.15 0.16 3.83 8.75 .91 5.80 1.56

1981 . . . . .30 .72 .87 2.10 2.26 .16 3.35 8.17 .91 5.29 1.50

1982 . . . . .29 .71 .83 1.99 2.34 .19 2.79 7.76 .89 4.80 1.44

1983 . . . . .30 .76 .85 2.03 2.46 .24 2.69 7.71 .92 4.74 1.47

1984 . . . . .32 .81 .88 2.05 2.39 .40 2.73 7.46 .96 4.67 1.50

1985 . . . . .34 .87 .92 2.11 2.32 .59 2.67 7.08 1.00 4.49 1.53

1986 . . . . .36 .94 1.00 2.19 2.25 .73 2.63 6.64 1.05 4.28 1.56

1987 . . . . .38 .98 1.06 2.25 2.19 .88 2.58 6.29 1.09 4.13 1.59

1988 . . . . .38 1.00 1.10 2.30 2.12 .97 2.57 5.94 1.11 3.98 1.60

1989 . . . . .39 1.03 1.16 2.38 2.07 1.08 2.64 5.66 1.14 3.91 1.63

1990 . . . . .45 1.09 1.24 2.49 2.09 1.13 2.73 5.43 1.21 3.88 1.69

1991 . . . . .57 1.16 1.36 2.63 2.08 1.18 2.89 5.21 1.30 3.88 1.79

1992 . . . . .79 1.30 1.51 2.80 2.12 1.20 3.04 5.03 1.46 3.90 1.94

1993 . . . . 1.01 1.41 1.64 2.93 2.15 1.21 3.17 4.87 1.59 3.91 2.08

1994 . . . . 1.16 1.48 1.74 3.03 2.22 1.21 3.19 4.75 1.70 3.88 2.18

1995 . . . . 1.26 1.54 1.82 3.11 2.28 1.22 3.15 4.62 1.77 3.81 2.25

1996 . . . . 1.30 1.56 1.86 3.10 2.34 1.22 3.09 4.50 1.80 3.73 2.27

1997 . . . . 1.19 1.52 1.84 3.04 2.42 1.20 2.90 4.37 1.76 3.58 2.21

1998 . . . . 1.20 1.52 1.88 3.03 2.48 1.20 2.79 4.30 1.78 3.49 2.21

1999 . . . . 1.14 1.48 1.92 3.01 2.55 1.17 2.69 4.22 1.77 3.41 2.19

2000 . . . . 1.13 1.45 1.94 3.00 2.61 1.15 2.60 4.14 1.77 3.34 2.18

2001 . . . . 1.17 1.44 1.97 2.99 2.66 1.14 2.49 4.07 1.79 3.25 2.19

2002 . . . . 1.21 1.44 1.98 2.97 2.70 1.14 2.41 4.04 1.81 3.20 2.20

2003 . . . . 1.27 1.47 1.99 2.95 2.73 1.16 2.30 4.00 1.84 3.13 2.22

Projected:

2004 . . . . 1.32 1.50 2.01 2.97 2.75 1.17 2.23 3.94 1.88 3.06 2.25

2005 . . . . 1.36 1.54 2.04 3.01 2.77 1.20 2.16 3.91 1.92 3.00 2.28

2006 . . . . 1.38 1.57 2.06 3.05 2.78 1.21 2.13 3.85 1.95 2.95 2.31

2007 . . . . 1.40 1.58 2.05 3.06 2.80 1.23 2.10 3.80 1.96 2.90 2.32

2008 . . . . 1.41 1.58 2.03 3.06 2.80 1.24 2.07 3.74 1.97 2.84 2.32

2009 . . . . 1.42 1.57 2.01 3.06 2.79 1.26 2.05 3.68 1.97 2.79 2.32

2010 . . . . 1.43 1.57 1.99 3.06 2.76 1.28 2.02 3.61 1.98 2.73 2.33

2011 . . . . 1.45 1.57 1.97 3.05 2.73 1.29 1.99 3.54 1.98 2.67 2.33

2012 . . . . 1.46 1.57 1.96 3.05 2.71 1.30 1.95 3.47 1.98 2.60 2.33

2013 . . . . 1.47 1.57 1.94 3.04 2.68 1.31 1.93 3.40 1.98 2.55 2.33

2014 . . . . 1.48 1.57 1.93 3.04 2.65 1.32 1.92 3.33 1.98 2.50 2.33

2015 . . . . 1.48 1.58 1.92 3.04 2.62 1.32 1.91 3.27 1.99 2.46 2.33

2016 . . . . 1.49 1.58 1.91 3.04 2.60 1.33 1.91 3.21 1.99 2.43 2.34

2017 . . . . 1.49 1.59 1.91 3.04 2.58 1.33 1.90 3.16 1.99 2.40 2.34

2018 . . . . 1.49 1.60 1.90 3.03 2.56 1.33 1.90 3.10 1.99 2.38 2.35

2019 . . . . 1.49 1.60 1.90 3.03 2.55 1.33 1.90 3.05 1.98 2.36 2.35

2020 . . . . 1.50 1.60 1.90 3.02 2.53 1.32 1.90 3.01 1.98 2.34 2.36

2021 . . . . 1.50 1.61 1.90 3.02 2.53 1.31 1.91 2.97 1.98 2.33 2.36

2022 . . . . 1.50 1.61 1.90 3.01 2.52 1.30 1.90 2.93 1.98 2.32 2.37

2023 . . . . 1.50 1.62 1.90 3.01 2.52 1.29 1.90 2.90 1.97 2.31 2.37

2024 . . . . 1.50 1.62 1.90 3.00 2.52 1.28 1.91 2.87 1.97 2.30 2.38

2025 . . . . 1.50 1.63 1.90 3.00 2.51 1.26 1.91 2.85 1.97 2.30 2.38

2026 . . . . 1.51 1.63 1.90 3.00 2.50 1.25 1.92 2.83 1.96 2.30 2.39

2027 . . . . 1.51 1.64 1.90 2.99 2.49 1.24 1.93 2.81 1.96 2.30 2.39

2028 . . . . 1.51 1.64 1.90 2.99 2.49 1.23 1.93 2.80 1.96 2.30 2.40
41

2004 SSI Annual Report

For the totals shown in table IV.B7, the percentages are calculated using the population age group totals

corresponding to the age groups in the Federal recipient categories. Because the ratios for the separate

recipient categories are computed as percentages of differing base populations, the percentage for the total

SSI recipient population is not the arithmetic sum of the percentages for the respective recipient categories. As indicated in the table, the percentage of the total Social Security Area population who were receiving Federal SSI payments declined from the inception of the program through the early 1980s. In 1983,

this percentage started increasing and continued to increase through 1996. Due to factors described previously, the percentage of the total population receiving Federal SSI payments declined in 1997, but has leveled out since and is expected to increase gradually over the projection period. 

The various subcategories of Federal SSI recipients, however, follow significantly different growth patterns in relationship to their respective population totals. The aged Federal SSI recipient population

declines steadily as a percentage of the 65 or older population throughout the historical and projection

periods. In contrast, except for recent decreases due to the eligibility redeterminations and continuing disability reviews mandated by Public Law 104-193, the number of blind or disabled children receiving Federal SSI payments increased steadily as a percentage of the under age 18 population, with the increase

being quite steep in the early 1990s. The total blind or disabled Federal SSI recipient population as a percentage of the total population remained fairly level until the early 1980s when it started increasing and

continued to increase through 1996. After the 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 projected to increase 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 Projected
2004 SSI Annual Report

42

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

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

in Current-Payment Status as of December, 1974-2028

[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

2003 . . . . 3 18 58 67 30 12 42 58 188 100 288

Projected:

2004 . . . . 3 18 58 69 30 12 41 58 191 99 290

2005 . . . . 3 18 58 73 31 12 41 58 195 99 294

2006 . . . . 3 19 58 77 31 12 41 58 200 99 299

2007 . . . . 3 19 57 80 32 12 42 58 204 100 304

2008 . . . . 3 19 57 82 34 12 43 58 207 101 308

2009 . . . . 3 19 56 86 35 12 44 57 211 101 312

2010 . . . . 3 19 55 89 36 13 44 57 215 101 316

2011 . . . . 3 19 55 91 38 13 45 56 218 101 320

2012 . . . . 3 19 54 92 40 13 46 56 222 102 324

2013 . . . . 3 20 53 94 42 13 48 55 224 103 328

2014 . . . . 3 20 52 95 43 13 50 55 227 105 332

2015 . . . . 3 20 52 96 45 14 52 55 229 107 336

2016 . . . . 3 20 52 96 46 14 53 55 232 109 340

2017 . . . . 3 20 52 97 47 15 55 56 234 111 345

2018 . . . . 3 20 52 97 49 15 57 57 236 114 350

2019 . . . . 3 20 52 97 50 15 59 57 238 117 355

2020 . . . . 3 21 52 97 52 16 61 58 240 120 360

2021 . . . . 3 21 52 97 53 16 63 60 242 123 365

2022 . . . . 3 21 52 96 54 17 65 62 244 127 370

2023 . . . . 3 21 53 95 56 17 66 64 245 130 375

2024 . . . . 3 21 53 94 57 18 68 66 246 134 380

2025 . . . . 3 21 54 93 58 19 69 68 248 138 385

2026 . . . . 3 21 54 92 59 19 71 71 249 141 390

2027 . . . . 3 21 55 92 59 20 72 73 250 145 394

2028 . . . . 3 21 55 91 60 20 73 75 250 148 399
43

2004 SSI Annual Report

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

growth in the numbers of disabled adults is a more complicated phenomenon which is still not completely understood. However, extensive research conducted under contract to SSA and the Department of

Health and Human Services suggested that this growth was the result of a combination of factors including

(1) demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term

structural changes in the economy, and (4) changes in other support programs (in particular the reduction

or elimination of general assistance programs in certain States). The recent modest changes in program

participation reflects the combined effects of recent legislation described in previous sections, along with

changes in some of the factors mentioned above.

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, 1974-2028

[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

2003 . . . . 959 1,040 1,410 1,503 541 216 471 761 5,670 1,233 6,902

Projected:

2004 . . . . 1,001 1,068 1,427 1,566 550 220 461 755 5,830 1,216 7,046

2005 . . . . 1,033 1,096 1,451 1,643 559 226 454 752 6,009 1,207 7,215

2006 . . . . 1,052 1,121 1,460 1,721 574 229 457 744 6,157 1,201 7,358

2007 . . . . 1,061 1,138 1,444 1,780 594 233 464 736 6,251 1,200 7,450

2008 . . . . 1,069 1,152 1,421 1,833 614 235 474 726 6,324 1,200 7,524

2009 . . . . 1,077 1,164 1,393 1,887 631 238 482 716 6,390 1,199 7,589

2010 . . . . 1,087 1,175 1,366 1,938 646 243 491 707 6,455 1,197 7,652

2011 . . . . 1,099 1,185 1,342 1,975 668 246 503 696 6,515 1,199 7,714

2012 . . . . 1,110 1,193 1,321 2,002 695 250 519 687 6,571 1,206 7,777

2013 . . . . 1,121 1,200 1,303 2,028 721 254 537 680 6,627 1,217 7,843

2014 . . . . 1,131 1,206 1,288 2,053 746 258 558 674 6,681 1,232 7,912

2015 . . . . 1,140 1,211 1,281 2,071 768 263 579 671 6,735 1,250 7,984

2016 . . . . 1,147 1,219 1,281 2,081 790 268 600 671 6,786 1,271 8,057

2017 . . . . 1,152 1,227 1,283 2,085 810 277 619 676 6,834 1,295 8,129

2018 . . . . 1,154 1,239 1,284 2,086 833 284 640 683 6,880 1,323 8,203

2019 . . . . 1,154 1,251 1,283 2,086 859 291 664 690 6,925 1,354 8,279

2020 . . . . 1,161 1,256 1,282 2,085 885 297 688 700 6,966 1,388 8,354

2021 . . . . 1,166 1,263 1,284 2,078 907 307 707 717 7,005 1,424 8,429

2022 . . . . 1,172 1,268 1,292 2,063 927 318 723 739 7,041 1,463 8,504

2023 . . . . 1,178 1,272 1,304 2,045 947 329 740 763 7,075 1,503 8,578

2024 . . . . 1,184 1,275 1,319 2,023 968 339 757 787 7,107 1,544 8,651

2025 . . . . 1,190 1,276 1,334 2,002 986 348 775 811 7,136 1,586 8,723

2026 . . . . 1,195 1,278 1,350 1,983 1,000 357 792 835 7,163 1,628 8,791

2027 . . . . 1,200 1,281 1,364 1,966 1,011 366 807 862 7,188 1,668 8,856

2028 . . . . 1,204 1,284 1,374 1,952 1,019 377 818 890 7,211 1,708 8,918
2004 SSI Annual Report

44

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

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 1974-2004

[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 ........... 5,686 5,715 7,243 7,532 1,984 771 1,408 2,601 28,932 4,009 32,941

2004 4 ........ 6,126 6,028 7,505 8,063 2,074 811 1,380 2,665 30,607 4,045 34,651
45

2004 SSI Annual Report

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

the calendar year 2003 payment amounts shown in table IV.C1 reflect payments made in January-December, 2003, and include the payments due on January 1, 2004 (which were actually paid in December,

2003), but not the payments due on January 1, 2003 (which were actually paid in December, 2002). 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

1978-2004. 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.

1 Fiscal years 1977 and later cover the 12-month period ending September 30. For example, fiscal year 2004 payments include payments made from October 1, 2003 through September 30, 2004.

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 1978-2004

[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. . . . . . 5,558 5,623 7,170 7,390 1,957 759 1,417 2,572 28,456 3,989 32,445

2004 3 . . . . 5,983 5,928 7,415 7,881 2,047 800 1,390 2,650 30,053 4,040 34,093
2004 SSI Annual Report

46

When projecting dollar amounts over longer periods of time, the changing value of the dollar due to inflation can make meaningful comparisons of such amounts difficult. For this reason, in projecting SSI expenditures for 25 years, some means of removing inflation is generally desirable. The Consumer Price Index

for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor Statistics and used to

determine annual increases in the SSI Federal benefit rate as described in table IV.A2, is an appropriate

means of standardizing projected SSI costs over time. Constant-dollar values of Federal SSI benefit payments (those adjusted by the CPI) are presented in table IV.C3 for both the historical period, calendar

years 1974-2003, and the full 25-year projection period, 2004-28. This same information is presented in

graphical form in figure IV.C1.

The future growth in the “constant dollar” estimates is attributable primarily to the underlying growth in

the U.S. population as shown in table IV.A1, since, after the spike in terminations in 1997, the SSI recipient population is projected to remain fairly constant as a percentage of the total U.S. population. However, a small part of the growth in estimated payments is due to some underlying real growth in the

assumed average SSI benefit. This results from a projected increase in the disabled child recipients and a

decrease in aged recipients as a percentage of the total SSI recipient population, along with the fact that

disabled children typically have a much larger SSI benefit than do aged recipients.1

1 Disabled children typically have higher monthly Federal payment amounts because they have, on average, much lower countable income than do adult

recipients.

 Figure IV.C1.—SSI Federal Payments, by Age Group, in Constant 2004 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 2004 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
47

2004 SSI Annual Report

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 2004 Dollars, Calendar Years 1974-2028

[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/ $7,528 $6,545 $14,073

1975 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,316 6,203 14,519

1976 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,682 5,683 14,364

1977 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,870 5,193 14,064

1978 2 . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 9,574 5,127 14,701

1979 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,834 4,384 13,218

1980 . . . . $872 $2,045 $1,606 $3,119 $1,195 $61 $1,410 $2,702 8,899 4,112 13,010

1981 . . . . 913 2,149 1,635 3,073 1,304 63 1,280 2,631 9,137 3,911 13,048

1982 . . . . 963 2,275 1,659 2,987 1,323 71 1,183 2,563 9,279 3,747 13,025

1983 . . . . 1,046 2,503 1,797 3,109 1,412 106 1,139 2,627 9,973 3,765 13,739

1984 . . . . 1,162 2,778 1,988 3,235 1,474 179 1,182 2,665 10,817 3,847 14,664

1985 . . . . 1,253 2,911 2,129 3,278 1,419 272 1,191 2,553 11,262 3,744 15,006

1986 . . . . 1,394 3,235 2,435 3,426 1,421 351 1,225 2,480 12,261 3,705 15,966

1987 . . . . 1,456 3,368 2,619 3,491 1,369 420 1,239 2,338 12,723 3,577 16,299

1988 . . . . 1,488 3,471 2,832 3,587 1,362 473 1,269 2,257 13,212 3,525 16,737

1989 . . . . 1,523 3,610 3,041 3,684 1,391 543 1,309 2,197 13,793 3,506 17,299

1990 . . . . 1,695 3,755 3,381 3,942 1,367 574 1,394 2,163 14,714 3,556 18,270

1991 . . . . 2,275 4,242 4,022 4,481 1,438 627 1,585 2,220 17,086 3,805 20,891

1992 . . . . 4,155 5,139 4,714 4,995 1,481 642 1,717 2,227 21,126 3,944 25,070

1993 . . . . 5,010 5,721 5,336 5,367 1,548 658 1,885 2,254 23,640 4,139 27,779

1994 . . . . 5,211 5,633 5,835 5,670 1,593 673 1,959 2,269 24,617 4,227 28,844

1995 . . . . 5,661 5,807 6,267 5,952 1,649 687 1,944 2,310 26,023 4,254 30,277

1996 . . . . 5,846 5,913 6,634 6,260 1,687 697 1,942 2,336 27,037 4,279 31,316

1997 . . . . 5,685 5,813 6,429 6,251 1,739 709 1,832 2,364 26,626 4,196 30,822

1998 . . . . 5,661 5,873 6,729 6,588 1,810 725 1,759 2,435 27,386 4,194 31,579

1999 . . . . 5,395 5,726 6,901 6,737 1,853 729 1,677 2,462 27,340 4,139 31,479

2000 . . . . 5,163 5,521 6,905 6,785 1,851 728 1,585 2,490 26,953 4,074 31,027

2001 . . . . 5,357 5,619 7,155 7,119 1,929 749 1,543 2,575 27,927 4,119 32,045

2002 . . . . 5,542 5,677 7,297 7,382 1,976 764 1,483 2,609 28,638 4,092 32,730

2003 . . . . 5,756 5,785 7,332 7,624 2,008 781 1,425 2,632 29,286 4,058 33,343

Projected:

2004 . . . . 6,126 6,028 7,505 8,063 2,074 811 1,380 2,665 30,607 4,045 34,651

2005 . . . . 6,345 6,179 7,648 8,434 2,106 832 1,352 2,668 31,543 4,020 35,564

2006 . . . . 6,471 6,315 7,706 8,811 2,157 842 1,356 2,649 32,302 4,005 36,308

2007 . . . . 6,534 6,408 7,630 9,098 2,233 857 1,367 2,623 32,761 3,990 36,751

2008 . . . . 6,583 6,490 7,521 9,368 2,310 866 1,393 2,595 33,138 3,988 37,126

2009 . . . . 6,653 6,567 7,396 9,648 2,375 882 1,420 2,572 33,521 3,992 37,513

2010 . . . . 6,735 6,641 7,277 9,909 2,436 899 1,445 2,546 33,896 3,991 37,888

2011 . . . . 6,827 6,717 7,181 10,117 2,530 915 1,478 2,511 34,287 3,989 38,276

2012 . . . . 6,915 6,775 7,099 10,272 2,640 933 1,519 2,483 34,634 4,002 38,637

2013 . . . . 7,005 6,827 7,031 10,424 2,747 951 1,569 2,461 34,985 4,031 39,016

2014 . . . . 7,094 6,870 6,974 10,557 2,848 969 1,627 2,445 35,314 4,072 39,386

2015 . . . . 7,171 6,910 6,959 10,648 2,940 991 1,688 2,437 35,618 4,125 39,743

2016 . . . . 7,223 6,955 6,970 10,686 3,025 1,014 1,746 2,440 35,872 4,186 40,057

2017 . . . . 7,277 7,027 7,007 10,720 3,118 1,051 1,804 2,461 36,199 4,265 40,464

2018 . . . . 7,299 7,103 7,025 10,721 3,216 1,083 1,863 2,486 36,447 4,349 40,797

2019 . . . . 7,323 7,185 7,036 10,733 3,328 1,113 1,933 2,514 36,719 4,448 41,166

2020 . . . . 7,381 7,226 7,048 10,734 3,438 1,142 2,003 2,552 36,969 4,556 41,525

2021 . . . . 7,426 7,270 7,077 10,700 3,532 1,182 2,057 2,612 37,187 4,670 41,857

2022 . . . . 7,482 7,313 7,139 10,639 3,625 1,232 2,103 2,693 37,431 4,797 42,227

2023 . . . . 7,533 7,350 7,225 10,557 3,718 1,278 2,150 2,777 37,660 4,927 42,587

2024 . . . . 7,579 7,375 7,318 10,455 3,810 1,322 2,199 2,862 37,858 5,061 42,920

2025 . . . . 7,632 7,396 7,419 10,358 3,896 1,363 2,254 2,950 38,065 5,205 43,269

2026 . . . . 7,649 7,399 7,502 10,251 3,953 1,399 2,307 3,039 38,153 5,346 43,499

2027 . . . . 7,640 7,396 7,561 10,147 3,991 1,437 2,350 3,136 38,172 5,486 43,659

2028 . . . . 7,624 7,395 7,597 10,053 4,017 1,477 2,384 3,238 38,162 5,621 43,783
2004 SSI Annual Report

48

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 1974-2003

[In millions]

Calendar year Aged

Blind or

disabled Total

1974 ................................................ $631 $632 $1,264

1975 ................................................ 674 729 1,403

1976 ................................................ 635 753 1,388

1977 ................................................ 627 804 1,431

1978 ................................................ 636 855 1,491

1979 ................................................ 661 928 1,590

1980 ................................................ 757 1,091 1,848

1981 ................................................ 731 1,108 1,839

1982 ................................................ 694 1,104 1,798

1983 ................................................ 645 1,066 1,711

1984 ................................................ 645 1,148 1,792

1985 ................................................ 694 1,278 1,973

1986 ................................................ 759 1,484 2,243

1987 ................................................ 849 1,714 2,563

1988 ................................................ 873 1,798 2,671

1989 ................................................ 954 2,001 2,955

1990 ................................................ 1,038 2,201 3,239

1991 ................................................ 999 2,232 3,231

1992 ................................................ 1,023 2,412 3,435

1993 ................................................ 934 2,336 3,270

1994 ................................................ 876 2,240 3,116

1995 ................................................ 864 2,253 3,118

1996 ................................................ 833 2,155 2,988

1997 ................................................ 824 2,090 2,913

1998 ................................................ 838 2,165 3,003

1999 ................................................ 921 2,380 3,301

2000 ................................................ 943 2,439 3,381

2001 ................................................ 956 2,505 3,460

2002 ................................................ 1,051 2,768 3,820

2003 ................................................ 1,098 2,906 4,005

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2003

[In millions]

Calendar year Aged

Blind or

disabled Total 2

1974 ................................................ $89 $49 $149

1975 ................................................ 88 74 162

1976 ................................................ 88 77 166

1977 ................................................ 85 87 172

1978 ................................................ 91 88 180

1979 ................................................ 105 100 207

1980 ................................................ 117 106 226

1981 ................................................ 120 113 237

1982 ................................................ 125 119 276

1983 ................................................ 135 132 270

1984 ................................................ 141 152 299

1985 ................................................ 138 165 311

1986 ................................................ 147 185 340

1987 ................................................ 146 205 359

1988 ................................................ 150 224 381

1989 ................................................ 160 251 419

1990 ................................................ 177 281 466

1991 ................................................ 200 310 529

1992 ................................................ 216 323 550

1993 ................................................ 219 341 566

1994 ................................................ 225 354 585

1995 ................................................ 228 356 590

1996 ................................................ 225 307 539

1997 ................................................ 228 303 681

1998 ................................................ 259 429 808

1999 ................................................ 271 461 853

2000 ................................................ 283 488 893

2001 ................................................ 295 494 895

2002 ................................................ 283 507 911

2003 ................................................ 291 546 912
49

2004 SSI Annual Report

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 2003 is projected to decline relative to GDP.

Table IV.D1 and figure IV.D1 present a concise summary of Federal expenditures under the SSI program.

Following the initial higher costs of the program, total Federal SSI payments during the 1980s were a

fairly constant percentage of GDP (0.21 percent). During the early 1990s, SSI experienced rather rapid

growth (to 0.34 percent of GDP in 1996) due to a combination of factors discussed earlier in section IV.

Legislation enacted in 19962 resulted in a drop in the cost of SSI as a percentage of GDP in 1997. As mentioned earlier, the estimates prepared for this report project total participation in the SSI program to remain

a stable proportion of the U.S. population. Federal SSI expenditures, after adjusting for growth in prices,

are projected to grow slightly faster than the population due to the estimated small amount of real growth

in the SSI average benefit, as discussed previously in section IV.C. Since the real growth projected for

GDP under the 2004 Trustees Report intermediate assumptions is greater than the combined effects of

increases in SSI participation and the estimated real increase in the SSI average benefit, Federal SSI payments are projected to decline as a percentage of GDP over the next 25 years, reaching 0.24 percent of

GDP by 2028.

1 The total value of goods and services produced in the United States.

2 Public Law 104-121 and Public Law 104-193.

 Figure IV.D1.—SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 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 Projected
2004 SSI Annual Report

50

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 1974-2028 

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 . . . . 10,446 .051 .052 .067 .068 .018 .007 .014 .024 .265 .038 .303

2003 . . . . 10,937 .052 .052 .066 .069 .018 .007 .013 .024 .265 .037 .301

Projected:

2004 . . . . 11,544 .053 .052 .065 .070 .018 .007 .012 .023 .265 .035 .300

2005 . . . . 12,090 .053 .052 .064 .071 .018 .007 .011 .022 .265 .034 .299

2006 . . . . 12,675 .053 .052 .063 .072 .018 .007 .011 .022 .264 .033 .297

2007 . . . . 13,321 .052 .051 .061 .072 .018 .007 .011 .021 .261 .032 .293

2008 . . . . 14,025 .051 .050 .058 .073 .018 .007 .011 .020 .257 .031 .288

2009 . . . . 14,754 .051 .050 .056 .073 .018 .007 .011 .020 .255 .030 .285

2010 . . . . 15,508 .050 .049 .054 .074 .018 .007 .011 .019 .252 .030 .281

2011 . . . . 16,281 .050 .049 .052 .074 .018 .007 .011 .018 .249 .029 .278

2012 . . . . 17,068 .049 .048 .051 .073 .019 .007 .011 .018 .247 .029 .275

2013 . . . . 17,872 .049 .048 .049 .073 .019 .007 .011 .017 .245 .028 .273

2014 . . . . 18,708 .049 .047 .048 .073 .020 .007 .011 .017 .243 .028 .271

2015 . . . . 19,572 .048 .047 .047 .072 .020 .007 .011 .016 .241 .028 .268

2016 . . . . 20,471 .048 .046 .046 .071 .020 .007 .012 .016 .238 .028 .266

2017 . . . . 21,408 .047 .046 .046 .070 .020 .007 .012 .016 .236 .028 .264

2018 . . . . 22,387 .047 .046 .045 .069 .021 .007 .012 .016 .234 .028 .262

2019 . . . . 23,391 .046 .045 .044 .068 .021 .007 .012 .016 .232 .028 .260

2020 . . . . 24,438 .046 .045 .044 .067 .021 .007 .012 .016 .230 .028 .258

2021 . . . . 25,518 .045 .044 .043 .065 .022 .007 .013 .016 .227 .029 .256

2022 . . . . 26,643 .045 .044 .043 .064 .022 .007 .013 .016 .225 .029 .254

2023 . . . . 27,804 .045 .044 .043 .063 .022 .008 .013 .016 .223 .029 .253

2024 . . . . 29,015 .044 .043 .043 .061 .022 .008 .013 .017 .221 .030 .251

2025 . . . . 30,273 .044 .043 .043 .060 .022 .008 .013 .017 .219 .030 .249

2026 . . . . 31,589 .043 .042 .043 .058 .022 .008 .013 .017 .216 .030 .247

2027 . . . . 32,970 .043 .041 .042 .057 .022 .008 .013 .018 .213 .031 .244

2028 . . . . 34,406 .042 .041 .042 .055 .022 .008 .013 .018 .210 .031 .241
51

2004 SSI Annual Report

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 1978-2004

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1 Beneficiary

services 2

1978.................................................................. $539 $31.6

1979.................................................................. 611 57.0

1980.................................................................. 668 33.1

1981.................................................................. 717 37.3

1982.................................................................. 780 12.0

1983.................................................................. 846 8.0

1984.................................................................. 864 3 84.0

1985.................................................................. 956 3.0

1986.................................................................. 1,023 7.2

1987.................................................................. 977 9.5

1988.................................................................. 976 12.9

1989.................................................................. 1,052 20.0

1990.................................................................. 1,075 28.3

1991.................................................................. 1,230 33.1

1992.................................................................. 1,426 36.0

1993.................................................................. 1,468 32.3

1994.................................................................. 1,780 33.8

1995.................................................................. 1,978 48.2

1996.................................................................. 1,953 71.8

1997.................................................................. 2,055 77.3

1998.................................................................. 2,304 46.0

1999.................................................................. 2,493 52.0

2000.................................................................. 2,321 53.7

2001.................................................................. 2,397 43.9

2002.................................................................. 2,522 54.0

2003.................................................................. 2,656 37.0

2004 (estimated)............................................... 3,149 100.0
2004 SSI Annual Report

52

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of

correcting lenses, or with tunnel vision of 20 degrees or less. An individual

transferred from a State Aid to the Blind (AB) program to SSI is eligible if he/

she received such State aid in December 1973 and continues to meet the October 1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment expected

to result in death or that has lasted or can be expected to last for a continuous

period of at least 12 months. For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred

from a State Aid to the Permanently and Totally Disabled (APTD) program to

SSI is also eligible if he/she received such State aid in December 1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls in

December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973 must

meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at the

substantial gainful activity level may continue to receive a special benefit under

section 1619 and retain eligibility for Medicaid under title XIX of the Social

Security Act. This special benefit status may continue as long as the recipient

has the disabling impairment and meets all nondisability SSI eligibility criteria.

States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December

31, 1983. Beginning in January 1984, under a 1-year demonstration project, this

provision was continued for persons already eligible for either regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments are made

permanent. The provisions were amended effective July 1, 1987, with significant modifications to simplify administration and to allow free movement

between regular SSI disability payments and either the special cash benefit or

Medicaid eligibility under section 1619. The distinction between a disabled person eligible for regular SSI payments and one eligible for 1619(a) is that the latter has several months with gross earnings above the SGA level. Previously,

section 1619(a) status required completion of a trial work period and the determination that the work was SGA.
53

2004 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

For individuals under age 18, the “comparable severity” standard is eliminated

and replaced with a requirement that a child be considered disabled if he/she has

a medically determinable impairment that results in “marked and severe functional limitations,” and meets the existing statutory duration requirement. The

law also eliminates references to “maladaptive behaviors” from the personal/

behavioral domain of the mental disorders in the Listing of Impairments for

children, and discontinues the use of individualized functional assessments for

children.

SSI eligibility is prohibited for an individual in any month during which such an

individual is a fugitive felon, fleeing prosecution, or violating State or Federal

conditions of probation or parole. In addition, SSI eligibility is prohibited for 10

years for those convicted of fraudulently claiming residence to obtain benefits

simultaneously in two or more States. 1

2. Other Eligibility Provisions

a. Citizenship and 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.
2004 SSI Annual Report

54

Act

1996

Public Law 104-193, 

enacted August 22

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless

they are in a “qualified alien” category and meet one of certain exceptions such

as lawful permanent residents who earn or can be credited with 40 qualifying

quarters of earnings, certain refugee type categories eligible for up to 5 years of

time limited eligibility, or active duty U.S. military or veterans and their spouses

and children. Extends eligibility for aliens receiving SSI as of August 22, 1996

(the enactment date of the law) for 1 year after the enactment date for those

aliens found ineligible under the new standards.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens (and their children) who have been battered or subjected to extreme cruelty by a spouse or parent or a member of the spouse’s or parent’s family living

in the same household.

1997

Public Law 105-18, 

enacted June 12

Extends eligibility for aliens receiving SSI as of August 22, 1996, until September 30, 1997, for those found ineligible under the new alien standards of Public

Law 104-193.

Public Law 105-33, 

enacted August 5

Further amends Public Law 104-193 to add Cuban and Haitian entrants, and the

child of a parent who has been battered or subjected to extreme cruelty, to the

list of qualified aliens. Provides that Cuban and Haitian entrants and Amerasian

immigrants qualify for time limited eligibility, and increases the time limit from

5 to 7 years for all time-limited categories. Additional exceptions are added for

qualified aliens: (1) lawfully residing in the United States and receiving SSI

benefits on August 22, 1996; and (2) lawfully residing in the United States on

August 22, 1996 and meeting the definition of blind or disabled in the Social

Security Act.

Certain noncitizen American Indians are excepted from the alien nonpayment

provisions of Public Law 104-193.

Extends eligibility for “nonqualified aliens” receiving SSI as of August 22,

1996, until September 30, 1998.

1998

Public Law 105-306, 

enacted October 28

Permanently extends eligibility of all remaining “nonqualified aliens” who

were receiving SSI benefits when Public Law 104-193 was enacted on August

22, 1996.

2000

Public Law 106-386, 

enacted October 28

Noncitizens, regardless of their immigration status, may be eligible for SSI to

the same extent as refugees, if they are determined to be victims of “severe

forms of trafficking in persons.”

2004

Public Law 108-203, 

enacted March 2

Extends SSI eligibility to blind or disabled children who are U.S. citizens living

with a parent assigned to permanent U.S. military duty outside of the United

States, and who were not receiving SSI benefits while in the United States. Previously, only blind or disabled children who received an SSI benefit for the

month before the parent reported for permanent duty abroad were eligible.

Effective April 2004 for applications filed after enactment. 
55

2004 SSI Annual Report

Act b. Other Benefits

1980

Public Law 96-272, 

enacted June 17

SSI applicants and recipients are not required as a condition of eligibility to

elect to receive Veterans Administration pensions under the Veterans and Survivors’ Pension Improvement Act of 1978 if the State of residence lacks a medically-needy program under title XIX.

c. Drug Addiction and Alcoholism (DA&A)

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and

terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies

and Federal, State, or local government agencies in representative payee selection. These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$59 (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.
2004 SSI Annual Report

56

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.
57

2004 SSI Annual Report

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.

1999

Public Law 106-170, 

enacted December 17

Establishes a Ticket to Work and Self-Sufficiency program which will provide

SSI (and OASDI) disability beneficiaries with a ticket that can be used to obtain

vocational rehabilitation services, employment services, or other support services, from an employment network (EN) of their choice.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
2004 SSI Annual Report

58

Act

An EN chooses one of the two EN payment options at the time it submits an

application to SSA to become an EN. The chosen payment system will apply to

all beneficiaries served. An EN can elect to receive payment under the:

 • Outcome payment system, under which it can receive payment for up to 60

outcome payment months; or

 • Outcome-milestone payment system, under which it can receive payment

for up to four milestones (established by regulation) in addition to outcome

payments. These milestones must occur before the EN enters the first

month for which it is eligible for an outcome payment. Four milestone payments plus 60 months of reduced outcome payments equal 85 percent of

the total that would be available if the EN chose the outcome payment system.

The four milestones are based on gross earnings exceeding the substantial gainful activity level for specified months. An outcome payment month is any

month in which SSA does not pay any Federal disability cash benefits to a beneficiary because of work or earnings.

Also eliminates the requirement that blind or disabled SSI recipients age 16

through 64 be referred to the State VR agency and accept the services offered.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994

Public Law 103-296, 

enacted August 15

During each of fiscal years 1996, 1997, and 1998, requires SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In

addition, during the same period, requires SSA to redetermine the SSI eligibility

of at least one-third of all child SSI recipients who reach age 18 after April 1995

during the 1-year period following attainment of age 18. Redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.

1996

Public Law 104-193, 

enacted August 22

Repeals the requirement that SSA redetermine the eligibility of at least one-third

of all child SSI recipients who reach age 18 after April 1995 during the 1-year

period following attainment of age 18.

Requires a CDR:

 • At least once every 3 years for SSI recipients under age 18 who are eligible

by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is

a contributing factor material to the determination of their disability.

Requires eligibility redetermination under the adult disability standard for all

child SSI recipients eligible for the month before the month in which they attain

age 18.

Requires redetermination of eligibility for children considered disabled based

on an individual functional assessment and/or consideration of maladaptive

behavior.

Requires the representative payee of a child SSI recipient whose continuing eligibility is being reviewed to present evidence that the recipient is receiving

treatment which is considered medically necessary and available for the condition which was the basis for providing SSI benefits.
59

2004 SSI Annual Report

Act

1997

Public Law 105-33, 

enacted August 5

Modifies provision of Public Law 104-193 to extend from 12 to 18 months the

period for redetermining the disability of children under age 18 under the new

childhood disability standard.

Modifies provision of Public Law 104-193 to permit SSA to schedule a CDR

for a disabled child for whom low birth weight is a contributing factor material

to the determination of disability, at a date after the child’s first birthday if the

Commissioner determines the impairment is not expected to improve within 12

months of the child’s birth.

Modifies provision of Public Law 104-193 to provide SSA the authority to

make redeterminations of disabled childhood recipients who attain age 18, more

than 1 year after the date such recipient attains age 18.

1999

Public Law 106-170, 

enacted December 17

Prohibits the initiation of a CDR during the period that a recipient is “using a

ticket” under the Ticket to Work program.

g. Deeming of Income and Resources

1972

Public Law 92-603, 

enacted October 30

Deeming occurs when the income and resources of certain family members living in the same household with the SSI recipient are considered in determining

the amount of the SSI payment. These family members are the ineligible spouse

of an adult recipient and the ineligible parents of a child recipient under age 21.

After deduction of personal allocations for the spouse (or parents) and for ineligible children in the home, and after application of income exclusions, any

remaining income of the spouse (or parents) is added to the income of the eligible person.

1980

Public Law 96-265, 

enacted June 9

Children aged 18 or older are not subject to parental deeming.

Sponsor’s income and resources deemed to an alien for 3 years.

1989

Public Law 101-239, 

enacted December 19

Disabled children receiving home care services under State Medicaid programs,

who are ineligible for SSI because of deeming of parental income, and who

received SSI benefits limited to $30 while in a medical treatment facility, may

receive the $30 monthly allowance that would be payable if the recipient were

institutionalized.

1993

Public Law 103-152, 

enacted November 24

Sponsor-to-alien deeming period extended from 3 years to 5 years, effective

January 1, 1994, through September 30, 1996.

Considers an ineligible spouse or parent who is absent from the household due

to active military service to be a member of the household for deeming purposes.

1996

Public Law 104-193, 

enacted August 22

Deeming of income and resources from an immigration sponsor to a noncitizen

continues until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor

signs a new legally enforceable affidavit of support.
2004 SSI Annual Report

60

Act

1996

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add two exceptions to the sponsor-to-alien

deeming:

 • Provides that if the noncitizen is indigent and would be unable to obtain

food and shelter without SSI benefits even after receiving support from the

sponsor, then only the amount of income and resources actually provided

by the sponsor will be counted for a 12-month period after a determination

of indigence; and

 • Provides that in certain cases, deeming would not apply for a 12-month

period (with some options for extension) if the noncitizen (or his/her children) has been battered, or subjected to extreme cruelty by family members.

1997

Public Law 105-33, 

enacted August 5

Amends Public Law 104-208 to add an additional exception to sponsor-to-alien

deeming when the parent of a noncitizen has been battered or subjected to

extreme cruelty by family members.

3. Federal Benefit Payments

a. Windfall Offset

1980

Public Law 96-265, 

enacted June 9

Offset (by reduction of retroactive Social Security benefits) to prevent persons

whose initial OASDI payment is retroactive from receiving more in total benefits than if they were paid the benefits when regularly due.

1984

Public Law 98-617, 

enacted November 8

Offset provision expanded to allow for reduction of retroactive SSI benefits and

to apply in cases of OASDI benefit reinstatement.

b. Proration of Benefit

1982

Public Law 97-248, 

enacted September 3

Benefit for first month of eligibility to be prorated by the number of days in the

month for which an application has been filed and there is eligibility.

1996

Public Law 104-193, 

enacted August 22

Changes the effective date of an SSI application to the first day of the month

following the date on which the application was filed or on which the individual

first becomes eligible, whichever is later. This, in effect, eliminates prorated

payments in initial claims.

c. Retrospective Monthly Accounting

1981

Public Law 97-35, 

enacted August 13

Changes the method of computing the SSI benefit to one under which the benefit amount is computed on a monthly basis and is based on income and other

characteristics in the previous (or second previous) month.

1984

Public Law 98-369, 

enacted July 18

Changes the method of computing the SSI benefit to persons receiving title II

payments. The effect of the increased title II income at the time of the cost-ofliving increase is not delayed as it otherwise would be.
61

2004 SSI Annual Report

Act

1987

Public Law 100-203, 

enacted December 22

Provides an exception to retrospective monthly accounting so that amounts

received under Aid to Families With Dependent Children (AFDC), foster care,

refugee cash assistance, Cuban-Haitian entrant assistance, or general and child

welfare assistance provided by the Bureau of Indian Affairs are counted only in

the month received.

1993

Public Law 103-66, 

enacted August 10

Changes the method of computing the SSI benefit to persons receiving the value

of the one-third reduction. The effect of the increased value at the time of the

cost-of-living increase is not delayed as it otherwise would be. Effective January

1995.

2004

Public Law 108-203, 

enacted March 2

Eliminates triple counting of one-time, nonrecurring income by providing that

this income will be counted only for the month that the income is received, and

not for any other month during the transition to retrospective monthly accounting during the first 3 months of an individual’s SSI eligibility. Effective April

2005.

d. Uncashed Checks

1981

Public Law 97-35, 

enacted August 13

States that have Federally-administered supplements to be credited their share

of SSI checks that remain unnegotiated for 180 days.

1987

Public Law 100-86, 

enacted August 10

SSI checks now unnegotiable after 1 year. States are credited their share of SSI

checks after 1 year rather than 180 days.

e. Rounding of Payment Amounts

1982

Public Law 97-248, 

enacted September 3

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent cost-of-living adjustments will be calculated on the

previous year’s benefit standard before rounding.

f. Penalties for False or Misleading Statements or Withholding of 

Information

1999

Public Law 106-169, 

enacted December 14

Provides for the nonpayment of OASDI and SSI benefits (6, 12 and 24 months,

respectively, for the first, second, and third or subsequent violations) for individuals found to have knowingly made a false or misleading statement of material fact for use in determining eligibility for benefits.

2004

Public Law 108-203, 

enacted March 2

Expands the administrative sanction of nonpayment of benefits to situations

where an individual has failed to disclose material information, if the person

knew or should have known that such failure was misleading.

Authorizes Federal courts to order a defendant convicted of defrauding Social

Security, Special Veterans’ Benefits, or SSI to make restitution to SSA. Restitution funds would be deposited to the trust funds or General Fund of the Treasury, as appropriate. Effective with respect to violations occurring on or after

the date of enactment.
2004 SSI Annual Report

62

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).
63

2004 SSI Annual Report

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.
2004 SSI Annual Report

64

Act

1976

Public Law 94-331, 

enacted June 30

Disaster assistance from income for 9 months and application of one-third

reduction for 6 months for certain victims of disasters occurring between January 1, 1976 and December 31, 1976.

Public Law 94-566, 

enacted October 20

Any assistance based on need (including vendor payments) made to or on behalf

of SSI recipients, which is paid and wholly funded by State or local governments.

The value of assistance provided under certain Federal housing programs.

1977

Public Law 95-113, 

enacted September 29

Food stamps, Federally donated food, and the value of free or reduced price

food for women and children under the Child Nutrition Act and National School

Lunch Act.

Public Law 95-171, 

enacted November 12

Provisions for exclusions for support and maintenance under the Disaster Relief

and Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1, 1978.

1980

Public Law 96-222, 

enacted April 1

Earned income tax credit treated as earned income (temporarily excluded from

1975 through 1980).

Public Law 96-265, 

enacted June 9

Remunerations received in sheltered workshops and work activity centers are

considered earned income and qualify for earned income exclusions.

Impairment-related work expenses paid by the individual (including cost for

attendant care, medical equipment, drugs, and services necessary to control an

impairment) are deducted from earnings when determining if an individual is

engaging in substantial gainful activity. Impairment-related work expenses are

excluded in calculating income for benefit purposes if initial eligibility for benefits exists on the basis of countable income without applying this exclusion.

1981

Public Law 97-35, 

enacted August 13

Modifies provision under which irregularly or infrequently received income is

excluded to conform to change from quarterly to monthly accounting; amounts

excludable: $20 or less of unearned income and $10 of earned income in a

month.

1982

Public Law 97-377, 

enacted December 21

From December 18, 1982, to September 30, 1983, certain home energy assistance payments are excluded if a State agency certified that they are based on

need.

1983

Public Law 97-424, 

enacted January 6

Support or maintenance assistance (including home energy assistance) provided

in kind by a nonprofit organization or in cash or in kind by certain providers of

home energy is excluded if the State determines that the assistance is based on

need. Provision is applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that the assistance is based on need. Provision is applicable through June

1985.
65

2004 SSI Annual Report

Act

1984

Public Law 98-369, 

enacted July 18

The 1983 provisions for support and maintenance and home energy assistance

continue to October 1, 1987.

1986

Public Law 99-498, 

enacted October 17

Educational assistance used for educational expenses under the Higher Education Act of 1965 as amended.

1987

Public Law 100-203, 

enacted December 22

The 1983 provisions for support and maintenance and home energy assistance

made permanent.

Excludes death payments (for example, proceeds from life insurance) from SSI

income determinations to the extent they were spent on last illness and burial.

Modifies the 1982 resource exclusion for burial funds to extend the exclusion to

any burial fund of $1,500 or less maintained separately from all other assets,

thereby allowing interest to be excluded from income if retained in the fund.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Interest on agreements representing the purchase of an excluded burial space.

Payments from the Agent Orange Settlement.

Value of a ticket for domestic travel received as a gift and not cashed.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit (including the child health insurance portion).

Payments received from a State-administered fund established to aid victims of

crime.

Impairment-related work expenses excluded from income in determining initial

eligibility for benefits.

Payments received as State or local government relocation assistance.

Payments received under the Radiation Exposure Compensation Act.

Redefines as earned income, royalties earned in connection with any publication

of the individual’s work, and honoraria received for services rendered (previously defined as unearned income).

1993

Public Law 103-66, 

enacted August 10

Hostile fire pay to members of the uniformed services.

Payments received as State or local government relocation assistance made permanent.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.
2004 SSI Annual Report

66

Act

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Interest on funds deposited in an individual development account.

Any adjustments made to prior payments from other Federal programs to

account for the error in the computation of the Consumer Price Index during

1999.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit is excluded in determining eligibility for meanstested programs, including SSI.

2004

Public Law 108-203, 

enacted March 2

Changes the calculation of infrequent and irregular income from a monthly to a

quarterly basis. Excludes from the determination of an individual’s income all

interest and dividend income earned on countable resources. Effective July

2004.

Permits the student earned income exclusion to apply to any individual under

age 22 who is a student. Thus, students under age 22 who are married or heads

of households would be eligible for the exclusion. Effective April 2005.

Excludes from the determination of income any gift to an individual for use in

paying tuition or educational fees, just as grants, scholarships, and fellowships

for such use are currently excluded from the determination of income. Effective

June 2004.

6. Resources

1972

Public Law 92-603, 

enacted October 30

Countable resources limited to $1,500 or less for an individual and to $2,250 or

less for a couple.

1984

Public Law 98-369, 

enacted July 18

Limit on countable resources raised by $100 a year for individuals and $150 a

year for couples, beginning in calendar year 1985 through 1989. The respective

limits would become $2,000 for an individual and $3,000 for a couple in 1989

and thereafter.

1999

Public Law 106-169, 

enacted December 14

Includes generally in the countable resources of an individual the assets of a

trust which could be used for the benefit of the individual or spouse.
67

2004 SSI Annual Report

Act a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

A home of reasonable value—established by regulation as not exceeding a fairmarket value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding

a market value of $1,200.

An automobile may be excluded, regardless of value, if the individual’s household uses it for employment or medical treatment, or if it is modified to be operated by or for transportation of a 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.

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).
2004 SSI Annual Report

68

Act

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

2004

Public Law 108-203, 

enacted March 2

Increases to 9 months and makes uniform the time period for excluding from

resources amounts attributable to payments of past-due Social Security and SSI

benefits and earned income and child tax credits. Effective for such payments

received on or after the date of enactment.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Assets of a blind or disabled individual that are necessary to an approved plan of

self-support.

Tools and other property essential to self-support (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Specifies that no limitation can be placed on property essential to self-support

used in a trade or business, or by an individual as an employee (including the

tools of a tradesperson and the machinery and livestock of a farmer).

Payments from the Agent Orange Settlement.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit excluded for the month following the month the credit

is received.

Payments received from a State-administered fund established to aid victims of

crime excluded for a 9-month period. Individual not required to file for such

benefits.

Payments received as State or local government relocation assistance

excluded for a 9-month period. (The provision expired 3 years after its effective

date.)

Payments received under the Radiation Exposure Compensation Act.

1993

Public Law 103-66, 

enacted August 10

Makes permanent the 9-month exclusion of payments received as State or local

government relocation assistance.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.
69

2004 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Dedicated financial institution accounts required to be established for large pastdue benefits for disabled individuals under age 18 with a representative payee.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Funds deposited by an individual in an individual development account and the

interest on those funds.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit in the month of receipt and in the following

month.

2004

Public Law 108-203, 

enacted March 2

Excludes grants, scholarships, fellowships, or gifts to be used for tuition or educational fees from an individual’s countable resources for 9 months after the

month of receipt.

c. Transfer-of-Assets Penalties

1980

Public Law 96-611, 

enacted December 28

Assets transferred for less than fair market value for the purpose of establishing

eligibility for benefits under the Social Security Act are counted as resources for

24 months after transfer.

1988

Public Law 100-360, 

enacted July 1

Removes the transfer-of-assets penalty for transfers made July 1, 1988, or later.

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.
2004 SSI Annual Report

70

Act 7. Presumptive and Emergency Payments and Interim Assistance

Reimbursement

a. Presumptive Payments

1972

Public Law 92-603, 

enacted October 30

A person applying on the basis of disability who meets all other criteria of eligibility, and is likely to be disabled, may receive payments for 3 months pending

the disability determination.

1976

Public Law 94-569, 

enacted October 20

Presumptive payment provision was extended to persons applying on the basis

of blindness.

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.

b. Emergency Advance Payments

1972

Public Law 92-603, 

enacted October 30

Any applicant who can be presumed to meet the criteria of eligibility, but has

not yet been determined eligible, and who is faced with a financial emergency

may receive an immediate cash advance of up to $100.

1987

Public Law 100-203, 

enacted December 22

Increases the maximum emergency advance payment amount to the maximum

amount of the regular Federal SSI monthly benefit rate, plus, if any, the Federally-administered State supplementary payment.

1996

Public Law 104-193, 

enacted August 22

Applicants who have a financial emergency may receive an emergency advance

payment in the month of application, which, effective with this law, is always

prior to the first month of eligibility. These advance payments are recouped by

proportional reductions in the recipient’s first 6 months of SSI benefits.

c. Interim Assistance Reimbursement

1974

Public Law 93-368, 

enacted August 7

SSA may enter into agreements with the States to repay them directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The repayment is made from the first check due to the individual. This

legislation expires June 30, 1976.

1976

Public Law 94-365, 

enacted July 14

The authority to repay the State for interim assistance is made permanent.

1987

Public Law 100-203, 

enacted December 22

Extends interim assistance reimbursement to situations in which payments are

made by States or political subdivisions to persons whose SSI payments were

suspended or terminated and who subsequently are found to be eligible for such

benefits. Also clarifies that the payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim

period.
71

2004 SSI Annual Report

Act 8. Medicaid Eligibility

1972

Public Law 92-603, 

enacted October 30

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the

State Medicaid plan in effect on January 1, 1972.

States can accept SSA determination of eligibility, or make their own determination.

1976

Public Law 94-566, 

enacted October 20

Preserves the Medicaid eligibility of recipients who become ineligible for cash

SSI payments due to the cost-of-living increases in Social Security benefits.

1980

Public Law 96-265, 

enacted June 9

Blind or disabled recipients under age 65 no longer eligible for either regular or

special SSI payments because of their earnings may retain SSI recipient status

for Medicaid eligibility purposes under the following conditions: (1) they continue to have the disabling impairment, (2) they meet all nondisability eligibility

criteria except for earned income, (3) they would be seriously inhibited from

continuing employment without Medicaid services, and (4) their earnings are

insufficient to provide a reasonable equivalent of SSI payments and Medicaid.

In States that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid benefits depends on the State’s specific eligibility and program requirements.

The Medicaid provision of the 1980 legislation was in effect from January 1,

1981, through December 31, 1983. Under a 1-year demonstration project,

beginning January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.

1984

Public Law 98-460, 

enacted October 9

Medicaid provision of 1980 legislation extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-272, 

enacted April 7

Restores Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI when their title II benefits increased in 1984 because of a change in

the Social Security disabled widow(er)s benefits reduction factor.
2004 SSI Annual Report

72

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.
73

2004 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.
2004 SSI Annual Report

74

Act

1987

Public Law 100-203, 

enacted December 22

Provides for Federal administration of State supplements to residents of medical

institutions.

Provides for required pass through of $5 increase in Federal rate for persons

whose care in institutions is paid in substantial part by Medicaid.

1993

Public Law 103-66, 

enacted August 10

Requires States to pay fees for Federal administration of their State supplementation payments. The fees are $1.67 for each monthly supplementary payment in

fiscal year 1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year 1996. Fees

for subsequent fiscal years will be $5.00 or another amount determined by the

Commissioner to be appropriate. The Commissioner may charge the States

additional fees for services they request that are beyond the level customarily

provided in administering State supplementary payments.

1997

Public Law 105-33, 

enacted August 5

Revises the schedule of per-payment fees for Federal administration of State

supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002.

1999

Public Law 106-170, 

enacted December 17

A State which has an agreement with SSA to administer its supplementation

payments, must remit both payments and fees prior to the SSI payment date.

2000

Public Law 106-554, 

enacted December 21

Changes the effective date of above provision from 2009 to 2001.

10. Overpayment Recovery

1984

Public Law 98-369, 

enacted July 18

Limits the rate of recovering overpayments from monthly payments to the lesser

of: (1) the monthly payment, or (2) 10 percent of a recipient’s monthly income.

Permits a higher or lower adjustment at the request of the recipient subject to the

agreement of the Commissioner. The limit does not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part

of the recipient or spouse in connection with the overpayment.

Waives recovery of certain overpayments due to amount of excess resources of

$50 or less.

Provides temporary authority for the recovery of overpayments from tax

refunds.

1988

Public Law 100-485, 

enacted October 13

Grants permanent authority to recover overpayments from tax refunds.

1998

Public Law 105-306, 

enacted October 28

Authorizes SSA to collect SSI overpayments for individuals not currently eligible for SSI cash benefits by offsetting Old-Age, Survivors, and Disability Insurance (OASDI) benefits, with a maximum monthly offset of no more than 10

percent of the Social Security benefit.
75

2004 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. 

2004

Public Law 108-203, 

enacted March 2

Provides for recovery of overpayment of SSI benefits by withholding from

OASDI and Special Veterans’ benefits up to 100 percent of any underpayment

of benefits and 10 percent of ongoing monthly benefits.

Also provides for recovery of overpayment of OASDI or Special Veterans’ benefits by withholding from SSI up to 100 percent of any underpayment of benefits, but limits any recovery from SSI benefits to the lesser of 100 percent of the

monthly benefit or 10 percent of the individual’s total monthly income.

Effective with respect to overpayments that are outstanding at the time of enactment. 
2004 SSI Annual Report

76

B. INCOME AND RESOURCE EXCLUSIONS

1. Earned Income Exclusions

 • Any refund of Federal income taxes received under section 32 of the Internal Revenue Code (relating

to earned income tax credit) and any payment received under section 3507 of the Internal Revenue

Code (relating to advance payment of earned income tax credit);

 • Any refundable child tax credit;

 • Up to the first $30 of earned income in a quarter if it is infrequent or irregular, that is, if it is received

only once in a calendar quarter from a single source or if its receipt cannot reasonably be expected;

 • Up to $1,370 per month but not more than $5,520 in a calendar year received by a blind or disabled

recipient who is a student regularly attending school;

 • Any portion of the monthly $20 exclusion for unearned income that has not been used;

 • $65 of earned income in a month;

 • Amounts used to pay impairment-related work expenses if a recipient is disabled (but not blind) and

under age 65 or is disabled (but not blind) and receiving SSI (or disability payments under a former

State plan) before age 651;

 • One-half of remaining earned income in a month;

 • Earned income used to meet any expenses reasonably attributable to the earning of the income if the

recipient is blind and under age 65 or if he/she received SSI as a blind person prior to age 651;

 • Any earned income received and used to fulfill an approved plan to achieve self-support if the recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or disabled

individual in the month before he/she attained age 65; 

 • Any earned income deposited into either a Temporary Assistance for Needy Families (TANF) or

“Assets for Independence Act” individual development account (IDA); and

 • Some Federal laws other than the Social Security Act provide for the exclusion of earned income for

SSI purposes. For the most part, the income received under these laws relates to assistance received in

the form of food, housing and utilities, educational and employment benefits or benefits derived from

being a member of a Native American tribe. A complete list of laws which exclude earned income

under SSI can be found in the Federal Regulations Appendix to Subpart K 20 CFR 416.

2. Unearned Income Exclusions

 • Any public agency’s refund of taxes on real property or food; 

 • Assistance based on need which is wholly funded by a State or one of its political subdivisions. This

includes State supplementation of Federal SSI benefits but does not include payments under a Federal/State grant program such as Temporary Assistance for Needy Families (TANF);

1 Amounts used to pay impairment-related work expenses are deducted before the one-half of earned income deduction, whereas amounts used to pay the

work expenses of the blind are deducted after the one-half of earned income deduction. In effect, amounts of blind work expenses reduce SSI earned income

twice as much as the same amounts of impairment-related work expenses.
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2004 SSI Annual Report

 • Any portion of a grant, scholarship, fellowship, or gift to an individual used for paying tuition, fees or

other necessary educational expenses. Portions set aside for food, 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 the first $60 of unearned income in a quarter if it is infrequent or irregular, that is, if a type of

unearned income is received only once during a calendar quarter from a single source or if it cannot

reasonably be expected;

 • Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or

disabled individual in the month before he/she attained age 65;

 • Periodic payments made by a State under a program established before July 1, 1973, and based solely

on the recipient’s length of residence and attainment of age 65;

 • Payments for providing foster care to an ineligible child who was placed in the recipient’s home by a

public or private nonprofit child placement or child care agency;

 • Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial

arrangement which are left to accumulate and become part of the separately identifiable burial fund;

 • Certain support and maintenance assistance provided in the form of home energy assistance;

 • One-third of support payments made by an absent parent if the recipient is a child;

 • The first $20 of unearned income in a month other than income in the form of in-kind support and

maintenance received in the household of another and income based on need;

 • The value of any assistance paid with respect to a dwelling unit under the United States Housing Act

of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act of 1965,

title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959;

 • Any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement (after April 1, 1990);

 • The value of any commercial transportation ticket, for travel by a recipient or his/her spouse among

the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa and

the Northern Mariana Islands, which is received as a gift and is not converted to cash;

 • Payments received from a fund established by a State to aid victims of crime;

 • Relocation assistance provided by a State or local government that is comparable to assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act

of 1970;

 • Hostile fire pay received from one of the uniformed services pursuant to 37 U.S.C. 310 and other

kinds of additional pay received by military personnel in a combat zone;

 • Interest or other earnings on a dedicated account excluded from resources;
2004 SSI Annual Report

78

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • TANF funds made available to an SSI recipient as part of an individual development account (IDA);

 • Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the “Assets for Independence Act” IDA demonstration project and

interest earned on these deposits; 

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416; and

 • All interest and dividend income earned on countable resources.

3. Resource Exclusions

 • The home (including the land appertaining thereto);

 • Household goods and personal effects 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 9 months following receipt);

 • Housing assistance;

 • Refunds of Federal income taxes and advances made by an employer relating to an earned income tax

credit, (for 9 months following receipt);
79

2004 SSI Annual Report

 • Refundable child tax credit for 9 months following receipt;

 • Grants, scholarships, fellowships or gifts to be used for tuition or educational fees (for 9 months);

 • 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.
2004 SSI Annual Report

80

C. HISTORICAL ALLOWANCE DATA

At the end of 2003, 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 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 2003.

Methods used for estimating results (through January 2004) for claims filed in 2003—Although decision

counts are available for 2003 filers (from many of the “source” files), those counts do not translate directly

into the claims/appeals counts included in the following tables, due to the consolidation of multiple transactions (and application of claims-based tolerance rules) which occurs when the research file is built.

To prepare preliminary estimates of results (through January 2004) for 2003 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
81

2004 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 January 2004, whereas the final research files will reflect information through June 2004. Actual data for 2003

will be available to replace these estimates in the 2005 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2002 filers are as of June 2003. Results for those years’ filers have been updated to

include OHA results through September 2003. 

 • Data for 2003 filers are preliminary estimates as of January 2004, and reflect larger numbers of claims

still pending. January 2004 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.
2004 SSI Annual Report

82

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

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1988 946,603 — 272,204 28.8 674,399 71.2 265,151 39.3

1989 969,218 — 292,044 30.1 677,174 69.9 274,823 40.6

1990 1,099,805 — 347,823 31.6 751,982 68.4 320,207 42.6

1991 1,288,331 — 415,336 32.2 872,995 67.8 383,669 43.9

1992 1,415,624 — 436,888 30.9 978,736 69.1 433,244 44.3

1993 1,503,278 — 416,300 27.7 1,086,978 72.3 485,166 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 75.4 482,533 44.6

1995 1,318,416 — 323,084 24.5 995,332 75.5 439,166 44.1

1996 1,247,926 — 305,351 24.5 942,575 75.5 406,425 43.1

1997 1,110,898 — 292,839 26.4 818,059 73.6 357,999 43.8

1998 1,108,957 — 322,734 29.1 786,223 70.9 339,290 43.2

1999 1,104,975 — 326,607 29.6 778,368 70.4 332,235 42.7

2000 1,139,571 — 344,163 30.2 795,408 69.8 332,935 41.9

2001 1,215,105 — 364,824 30.0 850,281 70.0 352,589 41.5

2002 1,320,308 17,471 362,800 27.8 940,037 72.2 368,189 39.2

2003 1,371,000 301,260 330,474 30.9 739,266 69.1 243,043 32.9

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,816 68.4 — 139,698 63.0 82,118

1992 — 58,819 13.6 374,425 260,554 69.6 — 159,084 61.1 101,470

1993 — 57,938 11.9 427,228 294,801 69.0 — 170,402 57.8 124,399

1994 — 55,822 11.6 426,711 293,300 68.7 — 164,452 56.1 128,848

1995 — 51,697 11.8 387,469 263,954 68.1 — 143,403 54.3 120,551

1996 — 49,263 12.1 357,162 244,209 68.4 2,473 132,962 55.0 108,774

1997 — 47,573 13.4 306,561 215,414 70.3 2,856 120,920 55.9 95,503

1998 — 46,507 13.7 292,272 204,910 70.1 4,285 113,977 56.7 87,159

1999 — 42,135 13.3 274,269 194,644 71.0 7,513 116,146 57.2 86,816

2000 — 39,522 14.3 237,714 170,264 71.6 21,089 117,139 57.2 87,735

2001 — 38,200 13.5 244,272 173,416 71.0 75,508 97,618 58.1 70,407

2002 26,184 28,509 10.9 232,453 160,131 68.9 185,146 34,599 61.8 21,429

2003 54,402 17,079 12.7 117,654 58,923 50.1 105,585 4,830 66.7 2,416

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1988 946,603 — 946,603 393,003 — 553,600

1989 969,218 — 969,218 425,718 — 543,500

1990 1,099,805 — 1,099,805 508,976 — 590,829

1991 1,288,331 — 1,288,331 614,191 — 674,140

1992 1,415,624 — 1,415,624 654,791 — 760,833

1993 1,503,278 — 1,503,278 644,640 — 858,638

1994 1,436,958 — 1,436,958 574,269 — 862,689

1995 1,318,416 — 1,318,416 518,184 — 800,232

1996 1,247,926 — 1,247,926 487,576 2,473 757,877

1997 1,110,898 — 1,110,898 461,332 2,856 646,710

1998 1,108,957 — 1,108,957 483,218 4,285 621,454

1999 1,104,975 — 1,104,975 484,888 7,513 612,574

2000 1,139,571 — 1,139,571 500,824 21,089 617,658

2001 1,215,105 — 1,215,105 500,642 75,508 638,955

2002 1,320,308 17,471 1,302,837 425,908 211,330 665,599

2003 1,371,000 301,260 1,069,740 352,383 159,987 557,370
83

2004 SSI Annual Report

1 Data for claims filed in 1988-2002 reflect results as of June 2003 at the DDS level and as of September 2003 at the OHA level. The numbers of total

claims filed for 2001-2002 are subject to change. Data for claims filed in 2003 are preliminary estimates as of January 2004. The ultimate numbers of allowances and denials are subject to change until all initial decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years 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 — 60.7 39.3 — 60.7

1996 — 39.1 0.2 60.7 39.1 0.2 60.7

1997 — 41.5 .3 58.2 41.5 .3 58.2

1998 — 43.6 .4 56.0 43.6 .4 56.0

1999 — 43.9 .7 55.4 43.9 .7 55.4

2000 — 43.9 1.9 54.2 43.9 1.9 54.2

2001 — 41.2 6.2 52.6 41.2 6.2 52.6

2002 1.3 32.3 16.0 50.4 32.7 16.2 51.1

2003 22.0 25.7 11.7 40.7 32.9 15.0 52.1
2004 SSI Annual Report

84

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

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1991 250,962 — 148,220 59.1 102,742 40.9 24,702 24.0

1992 372,971 — 189,079 50.7 183,892 49.3 49,297 26.8

1993 496,131 — 212,268 42.8 283,863 57.2 75,967 26.8

1994 525,013 — 172,219 32.8 352,794 67.2 92,093 26.1

1995 487,730 — 144,231 29.6 343,499 70.4 86,841 25.3

1996 453,473 — 127,416 28.1 326,057 71.9 75,013 23.0

1997 332,032 — 106,528 32.1 225,504 67.9 51,496 22.8

1998 335,732 — 123,249 36.7 212,483 63.3 50,111 23.6

1999 342,153 — 128,543 37.6 213,610 62.4 49,585 23.2

2000 349,288 — 136,989 39.2 212,299 60.8 48,169 22.7

2001 367,993 — 151,622 41.2 216,371 58.8 48,981 22.6

2002 402,651 4,727 162,743 40.9 235,181 59.1 52,021 22.1

2003 422,300 81,789 151,913 44.6 188,598 55.4 33,747 17.9

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,770 49.6 — 7,523 38.1 12,247

1993 — 11,338 14.9 64,629 31,193 48.3 — 10,638 34.1 20,555

1994 — 11,332 12.3 80,761 38,422 47.6 — 12,950 33.7 25,472

1995 — 10,287 11.8 76,554 35,568 46.5 — 10,915 30.7 24,653

1996 — 9,355 12.5 65,658 28,070 42.8 198 8,835 31.7 19,037

1997 — 8,266 16.2 42,705 19,028 44.6 189 6,998 36.1 12,366

1998 — 7,799 15.6 42,237 18,843 44.6 314 6,969 37.5 11,635

1999 — 7,196 15.5 39,377 17,934 45.5 575 7,692 37.8 12,679

2000 — 6,932 18.3 31,051 14,428 46.5 1,986 8,403 37.1 14,225

2001 — 6,715 18.2 30,262 14,096 46.6 8,343 6,612 37.2 11,145

2002 3,556 5,824 16.8 28,933 12,864 44.5 20,884 2,226 39.1 3,462

2003 6,637 2,697 14.4 15,991 4,498 28.1 12,207 195 27.3 518

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1991 250,962 — 250,962 157,709 — 93,253

1992 372,971 — 372,971 206,065 — 166,906

1993 496,131 — 496,131 234,244 — 261,887

1994 525,013 — 525,013 196,501 — 328,512

1995 487,730 — 487,730 165,433 — 322,297

1996 453,473 — 453,473 145,606 198 307,669

1997 332,032 — 332,032 121,792 189 210,051

1998 335,732 — 335,732 138,017 314 197,401

1999 342,153 — 342,153 143,431 575 198,147

2000 349,288 — 349,288 152,324 1,986 194,978

2001 367,993 — 367,993 164,949 8,343 194,701

2002 402,651 4,727 397,924 170,793 24,440 202,691

2003 422,300 81,789 340,511 154,805 18,844 166,862
85

2004 SSI Annual Report

1 Data for claims filed in 1991-2002 reflect results as of June 2003 at the DDS level and as of September 2003 at the OHA level. The numbers of total

claims filed for 2001-2002 are subject to change. Data for claims filed in 2003 are preliminary estimates as of January 2004. The ultimate numbers of allowances and denials are subject to change until all initial decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years 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).

10 Less than 0.05 percent.

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

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1991 — 62.8 — 37.2 62.8 — 37.2

1992 — 55.2 — 44.8 55.2 — 44.8

1993 — 47.2 — 52.8 47.2 — 52.8

1994 — 37.4 — 62.6 37.4 — 62.6

1995 — 33.9 — 66.1 33.9 — 66.1

1996 — 32.1 10/ 67.8 32.1 10/ 67.8

1997 — 36.7 0.1 63.3 36.7 0.1 63.3

1998 — 41.1 .1 58.8 41.1 .1 58.8

1999 — 41.9 .2 57.9 41.9 .2 57.9

2000 — 43.6 .6 55.8 43.6 .6 55.8

2001 — 44.8 2.3 52.9 44.8 2.3 52.9

2002 1.2 42.4 6.1 50.3 42.9 6.1 50.9

2003 19.4 36.7 4.5 39.5 45.5 5.5 49.0
2004 SSI Annual Report

86

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a recipient is still eligible for SSI and still receiving the correct payment amount. There are two types of redeterminations: scheduled and unscheduled. Except for certain institutionalized individuals, all recipients are

periodically scheduled for a redetermination. Every year SSA schedules for redetermination the cases

most likely to have payment error, but even the cases unlikely to have payment error are scheduled for

review at least once every 6 years. Unscheduled redeterminations are completed on an as needed basis

when recipients report, or we discover, certain changes in circumstances that could affect the continuing

SSI payment amount. The numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations completed and in the numbers

of scheduled redeterminations that were 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 2003, SSA released over 500,000 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 recipiTable V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2003

[In thousands] 

Fiscal year

Number of

redeterminations

1986 . . . . . . . . . . . . . . . . . . . . . . . . 2,278

1987 . . . . . . . . . . . . . . . . . . . . . . . . 2,244

1988 . . . . . . . . . . . . . . . . . . . . . . . . 1,997

1989 . . . . . . . . . . . . . . . . . . . . . . . . 2,226

1990 . . . . . . . . . . . . . . . . . . . . . . . . 2,103

1991 . . . . . . . . . . . . . . . . . . . . . . . . 2,138

1992 . . . . . . . . . . . . . . . . . . . . . . . . 2,321

1993 . . . . . . . . . . . . . . . . . . . . . . . . 2,223

1994 . . . . . . . . . . . . . . . . . . . . . . . . 1 1,900

1995 . . . . . . . . . . . . . . . . . . . . . . . . 2 1,597

1996 . . . . . . . . . . . . . . . . . . . . . . . . 1,763

1997 . . . . . . . . . . . . . . . . . . . . . . . . 1,773

1998 . . . . . . . . . . . . . . . . . . . . . . . . 1,853

1999 . . . . . . . . . . . . . . . . . . . . . . . . 2,122

2000 . . . . . . . . . . . . . . . . . . . . . . . . 2,182

2001 . . . . . . . . . . . . . . . . . . . . . . . . 2,316

2002 . . . . . . . . . . . . . . . . . . . . . . . . 2,311

2003 . . . . . . . . . . . . . . . . . . . . . . . . 2,450
87

2004 SSI Annual Report

ents. Although the Committee on Finance of the Senate stated in its report on this legislation that the same

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. Section 1614(a)(4) of the Act gives

SSA discretionary authority to conduct periodic CDRs on SSI recipients. On September 28, 1994, SSA

issued a Federal Register notice that periodic SSI CDRs would begin on October 1, 1994. In 1994 and

again in 1996 legislation was enacted adding some mandates for the performance of CDRs under the SSI

program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required to

conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA was

required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who 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 the adult eligibility criteria. This law

also added the requirement that a CDR be performed:

 • At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted

in the deferral of full medical reviews for 122,853 cases for which a scheduled title XVI CDR was processed in 2003.

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 November 13, 2003, presenting estimates of the effects of CDRs conducted in fiscal year 2002.
2004 SSI Annual Report

88

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 7,345 68.5

1998 81,185 68,533 84.4 12,652 15.6 8,743 69.1

1999 80,816 70,353 87.1 10,463 12.9 6,217 59.4

2000 105,787 93,962 88.8 11,825 11.2 6,921 58.5

2001 110,341 99,666 90.3 10,675 9.7 6,488 60.8

2002 103,947 92,069 88.6 11,878 11.4 7,386 62.2

2003 72,175 63,021 87.3 9,154 12.7 5,206 56.9

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 8,723 73.3

1998 75,071 64,829 86.4 10,242 13.6 7,238 70.7

1999 140,429 125,079 89.1 15,350 10.9 10,304 67.1

2000 173,470 156,065 90.0 17,405 10.0 11,015 63.3

2001 143,902 126,610 88.0 17,292 12.0 10,508 60.8

2002 172,527 150,837 87.4 21,690 12.6 13,830 63.8

2003 213,212 191,061 89.6 22,151 10.4 14,259 64.4

Total reviews, SSI disabled adults

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 21,023 15,761 75.0 5,262 25.0 3,570 67.8

1996 81,909 66,909 81.7 15,000 18.3 10,265 68.4

1997 121,023 98,403 81.3 22,620 18.7 16,068 71.0

1998 156,256 133,362 85.3 22,894 14.7 15,981 69.8

1999 221,245 195,432 88.3 25,813 11.7 16,521 64.0

2000 279,257 250,027 89.5 29,230 10.5 17,936 61.4

2001 254,243 226,276 89.0 27,967 11.0 16,996 60.8

2002 276,474 242,906 87.9 33,568 12.1 21,216 63.2

2003 285,387 254,082 89.0 31,305 11.0 19,465 62.2

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 — 4,297 58.5 3,048 2,259 74.1 3 972 43.1 1,284

1998 3 5,512 63.1 3,228 2,472 76.6 13 1,143 46.5 1,316

1999 17 3,974 64.1 2,226 1,553 69.8 15 674 43.8 864

2000 76 4,427 64.7 2,418 1,583 65.5 45 646 42.0 892

2001 211 4,180 66.6 2,097 1,282 61.1 169 441 39.6 672

2002 376 4,774 68.1 2,236 1,455 65.1 803 271 41.6 381

2003 1,359 2,717 70.6 1,130 476 42.1 424 16 30.8 36

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 1 5,271 60.4 3,451 2,576 74.6 — 983 38.2 1,593

1998 — 4,530 62.6 2,708 1,986 73.3 6 766 38.7 1,214

1999 11 6,611 64.2 3,682 2,517 68.4 11 962 38.4 1,544

2000 96 6,824 62.5 4,095 2,825 69.0 77 1,027 37.4 1,721

2001 271 6,227 60.8 4,010 2,677 66.8 391 775 33.9 1,511

2002 639 8,143 61.7 5,048 3,296 65.3 1,862 452 31.5 982

2003 3,322 7,737 70.7 3,200 1,531 47.8 1,364 50 29.9 117

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 1 9,568 59.6 6,499 4,835 74.4 3 1,955 40.5 2,877

1998 3 10,042 62.8 5,936 4,458 75.1 19 1,909 43.0 2,530

1999 28 10,585 64.2 5,908 4,070 68.9 26 1,636 40.5 2,408

2000 172 11,251 63.3 6,513 4,408 67.7 122 1,673 39.0 2,613

2001 482 10,407 63.0 6,107 3,959 64.8 560 1,216 35.8 2,183

2002 1,015 12,917 63.9 7,284 4,751 65.2 2,665 723 34.7 1,363

2003 4,681 10,454 70.7 4,330 2,007 46.4 1,788 66 30.1 153
89

2004 SSI Annual Report

1 Data reflect results as of January 2004. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 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.

7 Less than 0.05 percent.

Table V.D2.—SSI Disabled Adult Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2004

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 16,736 14,111 — 2,625 84.3 — 15.7

1996 26,884 22,938 — 3,946 85.3 — 14.7

1997 51,466 46,010 3 5,453 89.4 7/ 10.6

1998 81,185 75,188 16 5,981 92.6 7/ 7.4

1999 80,816 75,001 32 5,783 92.8 7/ 7.2

2000 105,787 99,035 121 6,631 93.6 0.1 6.3

2001 110,341 104,287 380 5,674 94.5 .3 5.1

2002 103,947 97,114 1,179 5,654 93.4 1.1 5.4

2003 72,175 65,754 1,783 4,638 91.1 2.5 6.4

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 63,916 1 5,640 91.9 7/ 8.1

1998 75,071 70,125 6 4,940 93.4 7/ 6.6

1999 140,429 132,652 22 7,755 94.5 7/ 5.5

2000 173,470 163,916 173 9,381 94.5 .1 5.4

2001 143,902 133,612 662 9,628 92.8 .5 6.7

2002 172,527 159,432 2,501 10,594 92.4 1.4 6.1

2003 213,212 198,848 4,686 9,678 93.3 2.2 4.5

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 121,023 109,926 4 11,093 90.8 7/ 9.2

1998 156,256 145,313 22 10,921 93.0 7/ 7.0

1999 221,245 207,653 54 13,538 93.9 7/ 6.1

2000 279,257 262,951 294 16,012 94.2 .1 5.7

2001 254,243 237,899 1,042 15,302 93.6 .4 6.0

2002 276,474 256,546 3,680 16,248 92.8 1.3 5.9

2003 285,387 264,602 6,469 14,316 92.7 2.3 5.0
2004 SSI Annual Report

90

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent 2 Number Percent 2 Number Percent 3

Reviews of low-birth-weight children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 4,231 2,083 49.2 2,148 50.8 665 31.0

1996 5,709 2,491 43.6 3,218 56.4 904 28.1

1997 7,091 4,482 63.2 2,609 36.8 821 31.5

1998 17,620 6,092 34.6 11,528 65.4 3,645 31.6

1999 9,773 4,114 42.1 5,659 57.9 1,640 29.0

2000 10,178 4,566 44.9 5,612 55.1 1,596 28.4

2001 9,086 4,152 45.7 4,934 54.3 1,440 29.2

2002 12,732 5,869 46.1 6,863 53.9 2,023 29.5

2003 7,283 3,516 48.3 3,767 51.7 970 25.7

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 16,744 63.4

1998 40,945 21,453 52.4 19,492 47.6 10,922 56.0

1999 49,557 27,413 55.3 22,144 44.7 10,901 49.2

2000 51,713 28,863 55.8 22,850 44.2 11,110 48.6

2001 48,944 28,167 57.5 20,777 42.5 10,292 49.5

2002 54,947 32,388 58.9 22,559 41.1 12,097 53.6

2003 53,905 31,862 59.1 22,043 40.9 11,506 52.2

All other reviews of SSI disabled children

1994 — — —————

1995 3,535 2,501 70.7 1,034 29.3 541 52.3

1996 789 399 50.6 390 49.4 210 53.8

1997 14 8 57.1 6 42.9 3 50.0

1998 91,157 67,203 73.7 23,954 26.3 13,281 55.4

1999 183,211 129,420 70.6 53,791 29.4 28,461 52.9

2000 140,699 106,583 75.8 34,116 24.2 17,184 50.4

2001 95,835 72,896 76.1 22,939 23.9 12,199 53.2

2002 163,768 130,434 79.6 33,334 20.4 18,532 55.6

2003 127,444 100,522 78.9 26,922 21.1 14,427 53.6

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 17,568 60.5

1998 149,722 94,748 63.3 54,974 36.7 27,848 50.7

1999 242,541 160,947 66.4 81,594 33.6 41,002 50.3

2000 202,590 140,012 69.1 62,578 30.9 29,890 47.8

2001 153,865 105,215 68.4 48,650 31.6 23,931 49.2

2002 231,447 168,691 72.9 62,756 27.1 32,652 52.0

2003 188,632 135,900 72.0 52,732 28.0 26,903 51.0
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2004 SSI Annual Report

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 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 — 292 35.6 529 235 44.4 — 50 21.3 185

1998 1 1,234 33.9 2,410 1,142 47.4 2 243 21.3 897

1999 2 607 37.1 1,031 490 47.5 7 83 17.2 400

2000 33 609 39.0 954 458 48.0 10 99 22.1 349

2001 42 504 36.1 894 422 47.2 81 51 15.0 290

2002 94 696 36.1 1,233 555 45.0 338 46 21.2 171

2003 308 267 40.3 395 139 35.2 127 2 16.7 10

Redeterminations at age 18

1994 — — — — — — — — — —

1995 — 2 40.0 3 2 66.7 — 1 50.0 1

1996 — 707 34.4 1,348 584 43.3 — 119 20.4 465

1997 3 4,591 27.4 12,150 6,435 53.0 18 1,504 23.4 4,913

1998 4 3,074 28.2 7,844 4,392 56.0 28 1,003 23.0 3,361

1999 17 3,364 30.9 7,520 4,349 57.8 78 1,035 24.2 3,236

2000 101 3,576 32.5 7,433 4,149 55.8 200 973 24.6 2,976

2001 286 3,257 32.6 6,749 3,888 57.6 659 782 24.2 2,447

2002 719 3,813 33.5 7,565 4,212 55.7 2,352 472 25.4 1,388

2003 3,183 2,981 35.8 5,342 2,233 41.8 1,994 69 28.9 170

All other reviews of SSI disabled children

1994 — — — — — — — — — —

1995 — 177 32.7 364 202 55.5 — 52 25.7 150

1996 — 69 32.9 141 55 39.0 — 17 30.9 38

1997 — 1 33.3 2 1 50.0 — — — 1

1998 4 4,460 33.6 8,817 5,520 62.6 18 1,300 23.6 4,202

1999 52 9,325 32.8 19,084 11,766 61.7 95 2,581 22.1 9,090

2000 181 6,438 37.9 10,565 6,348 60.1 238 1,374 22.5 4,736

2001 441 4,624 39.3 7,134 4,425 62.0 800 795 21.9 2,830

2002 825 7,231 40.8 10,476 6,265 59.8 3,650 554 21.2 2,061

2003 3,495 5,046 46.2 5,886 2,533 43.0 2,336 44 22.3 153

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 3 4,884 27.8 12,681 6,671 52.6 18 1,554 23.4 5,099

1998 9 8,768 31.5 19,071 11,054 58.0 48 2,546 23.1 8,460

1999 71 13,296 32.5 27,635 16,605 60.1 180 3,699 22.5 12,726

2000 315 10,623 35.9 18,952 10,955 57.8 448 2,446 23.3 8,061

2001 769 8,385 36.2 14,777 8,735 59.1 1,540 1,628 22.6 5,567

2002 1,638 11,740 37.9 19,274 11,032 57.2 6,340 1,072 22.8 3,620

2003 6,986 8,294 41.6 11,623 4,905 42.2 4,457 115 25.7 333
2004 SSI Annual Report

92

1 Data reflect results as of January 2004. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 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.

7 Less than 0.05 percent.

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2004

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of low-birth-weight children

1994 1,225 830 — 395 67.8 — 32.2

1995 4,231 2,320 — 1,911 54.8 — 45.2

1996 5,709 2,864 — 2,845 50.2 — 49.8

1997 7,091 4,824 — 2,267 68.0 — 32.0

1998 17,620 7,569 3 10,048 43.0 7/ 57.0

1999 9,773 4,804 9 4,960 49.2 0.1 50.8

2000 10,178 5,274 43 4,861 51.8 .4 47.8

2001 9,086 4,707 123 4,256 51.8 1.4 46.8

2002 12,732 6,611 432 5,689 51.9 3.4 44.7

2003 7,283 3,785 435 3,063 52.0 6.0 42.1

Redeterminations at age 18

1994 — — —————

1995 71 67 — 4 94.4 — 5.6

1996 12,640 8,984 — 3,656 71.1 — 28.9

1997 48,834 28,526 21 20,287 58.4 7/ 41.5

1998 40,945 25,530 32 15,383 62.4 .1 37.6

1999 49,557 31,812 95 17,650 64.2 .2 35.6

2000 51,713 33,412 301 18,000 64.6 .6 34.8

2001 48,944 32,206 945 15,793 65.8 1.9 32.3

2002 54,947 36,673 3,071 15,203 66.7 5.6 27.7

2003 53,905 34,912 5,177 13,816 64.8 9.6 25.6

All other reviews of SSI disabled children

1994 — — —————

1995 3,535 2,730 — 805 77.2 — 22.8

1996 789 485 — 304 61.5 — 38.5

1997 14 9 — 5 64.3 — 35.7

1998 91,157 72,963 22 18,172 80.0 7/ 19.9

1999 183,211 141,326 147 41,738 77.1 .1 22.8

2000 140,699 114,395 419 25,885 81.3 .3 18.4

2001 95,835 78,315 1,241 16,279 81.7 1.3 17.0

2002 163,768 138,219 4,475 21,074 84.4 2.7 12.9

2003 127,444 105,612 5,831 16,001 82.9 4.6 12.6

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 33,359 21 22,559 59.6 7/ 40.3

1998 149,722 106,062 57 43,603 70.8 7/ 29.1

1999 242,541 177,942 251 64,348 73.4 .1 26.5

2000 202,590 153,081 763 48,746 75.6 .4 24.1

2001 153,865 115,228 2,309 36,328 74.9 1.5 23.6

2002 231,447 181,503 7,978 41,966 78.4 3.4 18.1

2003 188,632 144,309 11,443 32,880 76.5 6.1 17.4
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2004 SSI Annual Report

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received SSI

payments. Initially, the program contained a basic earned income exclusion that recognized the additional

costs associated with employment. In addition, the law contained a number of special income exclusions

which were intended as work incentives. Among these provisions were the income exclusion for blind

work expenses (BWE), plan for achieving self-support (PASS), and student earned income exclusion

(SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

 • Providing for an earned income exclusion for impairment-related work expenses (IRWE);

 • Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

 • Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

 • Establishing section 1619 which provided:

 — In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to

represent substantial gainful activity (SGA), and

 — In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs.1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure V.E1 presents the same information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the SSI Disabled Recipients Who Work. Pub. No.

13-11829, prepared by the Office of Research, Evaluation, and Statistics, Social Security Administration.
2004 SSI Annual Report

94

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, with increases in subsequent years based on increases in the national average wage index. In January

2004 the SGA level was increased to $810.

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, 1987-2003

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

2003 . . . . . . . . . . . . . . . . . . . . . . . 17,132 235,453 71,097 323,682

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

as of December, 1987-2003

[In thousands]

0

50

100

150

200

250

1987 1989 1991 1993 1995 1997 1999 2001 2003

Year

1619(a) workers

1619(b) workers

Other workers
95

2004 SSI Annual Report

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive

provisions: (1) plan for achieving self-support (PASS), (2) impairment-related work expense exclusion

(IRWE), and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than

one of these selected work incentive provisions. This information is available only for calendar years 1990

and later.

1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

Note: Working recipients participating in these other work incentives may be 1619(a) recipients, 1619(b) recipients or working

recipients whose earnings are at or below the SGA level.

b. Average Earnings of Participants in Work Incentive Programs

In this section, we present historical data on average earnings of SSI working recipients. Table V.E3 presents average earnings of SSI recipients categorized according to their section 1619 status.

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, with increases in subsequent years based on increases in the national average wage index. In January

2004 the SGA level was increased to $810.

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, 1990-2003

Year

PASS 1

Non-workers Workers Total IRWE BWE

1990 . . . . . . . . . . . . . . . . . . . 1,215 1,040 2,255 5,384 4,385

1991 . . . . . . . . . . . . . . . . . . . 1,969 1,601 3,570 6,546 4,330

1992 . . . . . . . . . . . . . . . . . . . 3,189 2,658 5,847 7,813 4,454

1993 . . . . . . . . . . . . . . . . . . . 4,528 3,602 8,130 8,629 4,406

1994 . . . . . . . . . . . . . . . . . . . 5,842 4,487 10,329 9,484 4,380

1995 . . . . . . . . . . . . . . . . . . . 5,719 4,603 10,322 9,940 4,433

1996 . . . . . . . . . . . . . . . . . . . 2,760 1,944 4,704 9,799 4,230

1997 . . . . . . . . . . . . . . . . . . . 1,290 708 1,998 9,637 4,116

1998 . . . . . . . . . . . . . . . . . . . 712 362 1,074 9,301 3,802

1999 . . . . . . . . . . . . . . . . . . . 698 347 1,045 9,520 3,971

2000 . . . . . . . . . . . . . . . . . . . 862 520 1,382 9,422 3,895

2001 . . . . . . . . . . . . . . . . . . . 1,024 576 1,600 8,798 3,642

2002 . . . . . . . . . . . . . . . . . . . 1,150 571 1,721 8,047 3,386

2003 . . . . . . . . . . . . . . . . . . . 1,181 524 1,705 7,604 3,074

Table V.E3.—Average Monthly Earnings of SSI Federally-Administered Blind or

Disabled Working Recipients, as of December, 1987-2003 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . $494 4 $124 $739 4 $211

1988 . . . . . . . . . . . . . . . . . . . . . . . 522 4 127 721 4 218

1989 . . . . . . . . . . . . . . . . . . . . . . . 518 4 131 712 4 231

1990 . . . . . . . . . . . . . . . . . . . . . . . 712 145 746 245

1991 . . . . . . . . . . . . . . . . . . . . . . . 724 148 780 262

1992 . . . . . . . . . . . . . . . . . . . . . . . 726 150 781 271

1993 . . . . . . . . . . . . . . . . . . . . . . . 728 153 784 280

1994 . . . . . . . . . . . . . . . . . . . . . . . 746 157 803 301

1995 . . . . . . . . . . . . . . . . . . . . . . . 754 160 834 322

1996 . . . . . . . . . . . . . . . . . . . . . . . 764 162 881 344

1997 . . . . . . . . . . . . . . . . . . . . . . . 772 164 932 367

1998 . . . . . . . . . . . . . . . . . . . . . . . 772 182 954 390

1999 . . . . . . . . . . . . . . . . . . . . . . . 926 207 980 418

2000 . . . . . . . . . . . . . . . . . . . . . . . 945 239 1,048 481

2001 . . . . . . . . . . . . . . . . . . . . . . . 1,004 252 1,043 475

2002 . . . . . . . . . . . . . . . . . . . . . . . 1,043 253 1,094 495

2003 . . . . . . . . . . . . . . . . . . . . . . . 1,059 241 1,081 469
2004 SSI Annual Report

96

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 (referred to as “alternate

participants” in the regulations) 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. (State VR agencies can elect on a case-by-case basis to be

paid either under the traditional VR reimbursement system, or the outcome or outcome-milestone payment

system.) 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 has been implemented on a State-by-State basis and has been in operation

nationwide since November 2003. As the Ticket to Work program was implemented in a State, the alternate provider and the traditional VR referral process described earlier were eliminated in that State, and

SSA provided eligible individuals who received SSI benefits due to blindness or disability in such State

with a Ticket to Work document (“ticket”). (Tickets are being provided on a phased-in basis in the last

group of States and the U.S. Territories, from November 2003 through September 2004.) Individuals who

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.
97

2004 SSI Annual Report

receive a ticket may use it to obtain from ENs or their State VR agencies 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.

Before the Ticket to Work program was implemented in their State, State VR agencies and alternate providers could continue to enroll beneficiaries under the cost reimbursement system described above. Any

reimbursement for those cases was made under that system. However, with full implementation of the

Ticket to Work program, only the State VR agencies have the option (on a case-by-case basis) of being

paid under the traditional VR reimbursement system or the outcome or outcome-milestone payment system. ENs will be paid through the outcome and outcome-milestone 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 that involves the establishment of a network of expertise. By the end of calendar year 2003, as

part of this culture change, all direct service employees received customized training on work incentives,

thereby establishing a wider network of technical expertise.

In May 2003, the Area Work Incentives Coordinator (AWIC) position was established and at least one

AWIC was assigned to each Area Office. The AWIC position is a full-time permanent position and is part

of SSA’s approach to assist beneficiaries with disabilities to obtain accurate and timely information regarding work, and to expeditiously process work reports and other disability work-issue workloads. The

Agency established and trained a total of 58 AWICs in 2003 whose duties include the following activities:

 • Coordinate and/or conduct of public outreach on work incentives in their local areas;

 • Provide and/or coordinate and oversee training on SSA’s employment support programs for all personnel;

 • Handle some sensitive or high profile disability work-issue cases, if necessary; and 

 • Monitor the disability work-issue workloads in their respective areas.

Work Incentives Liaisons (WILs), located directly in local offices, received 32 hours of refresher training

in calendar year 2003, and subsequently trained all direct-service personnel on SSA’s disability employment support programs. WILs have the technical background to provide improved service and information

related to SSA’s employment support programs to SSA beneficiaries, applicants, advocates and service

providers.

The AWICs coordinate with the 1,335 WILs in local offices, Public Affairs Specialists, the Plan for

Achieving Self-Support Cadre members and other personnel to provide improved services and information on SSA’s employment support programs to beneficiaries with disabilities who want to start or keep

working.

A number of automation enhancements designed to promote improved processing and management of

work activity workloads are underway. The Agency began testing eWork, a new software application in

107 sites beginning in January 2004. Pending the successful completion of the test, plans are to implement

eWork nationwide this year. This case development and decisional tool is designed to streamline the current work reporting process and provide for improved workload control and management information at
2004 SSI Annual Report

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the local and national levels. Once eWork is available nationwide, use of the tool will become mandatory.

Over the next couple of fiscal years we anticipate the renewed emphasis on employment support in conjunction with the implementation of eWork will generate an increase in recorded work activity reports,

resulting in increased disability related overpayment workloads.

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 1987-2003

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands) Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987 . . . . . . . 2/ 2/ 1,493 $10,010 2/ 2/

1988 . . . . . . . 2/ 2/ 1,720 14,831 2/ 2/

1989 . . . . . . . 2/ 2/ 1,871 18,366 2/ 2/

1990 . . . . . . . 1,267 $3,290 2,819 22,832 4,086 $26,122

1991 . . . . . . . 1,445 4,325 2,171 20,615 3,616 24,940

1992 . . . . . . . 1,634 5,312 2,834 28,276 4,468 33,588

1993 . . . . . . . 1,928 6,670 2,158 22,264 4,086 28,934

1994 . . . . . . . 1,880 7,057 2,074 23,400 3,954 30,457

1995 . . . . . . . 2,140 7,761 2,229 26,402 4,369 34,162

1996 . . . . . . . 2,033 6,518 2,138 24,334 4,171 30,852

1997 . . . . . . . 2,735 8,541 2,914 31,532 5,649 40,073

1998 . . . . . . . 3,329 10,089 3,446 36,313 6,775 46,402

1999 . . . . . . . 3,572 11,403 4,046 42,281 7,618 53,684

2000 . . . . . . . 3,260 11,357 3,589 40,793 6,849 52,150

2001 . . . . . . . 2,388 9,590 2,763 34,842 5,151 44,432

2002 . . . . . . . 3,241 12,201 3,474 43,244 6,715 55,445

2003 . . . . . . . 2,139 8,110 1,993 25,238 4,132 33,348
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2004 SSI Annual Report

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present data on participation by SSI recipients in other programs. Certain information

is available from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data summarized from the SSR are very representative of the overall SSI recipient population since

the information is based on a 100-percent extract or, for certain information, on a 10-percent extract from

the SSR. Data from the SSR are presented in section 1 below.

There are other potential sources for information on SSI recipients that are not available on the SSI administrative files. One source in particular is the Survey of Income and Program Participation (SIPP)1, a U.S.

Census Bureau sample survey that collects information such as the source and amount of income, program

participation and general demographic characteristics for the U.S. civilian noninstitutionalized population.

Data from the SIPP are presented in section 2. 

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

Since the amount of an individual’s income is used to determine both the eligibility for, and the amount of

his/her SSI benefit, it is necessary for the SSR to contain information on participation by SSI recipients in

certain other programs which may provide countable income to the SSI recipient. A significant number of

SSI recipients are Social Security beneficiaries whose total countable income, including OASDI benefits,

is less than the Federal benefit rate plus the amount of applicable Federally-administered State supplementary payment. A smaller number of SSI recipients participate in other programs and receive income such

as Worker’s Compensation benefits or disability cash benefits from the Department of Veterans Affairs.

SSA does not maintain complete information in its administrative files concerning the involvement of SSI

recipients in other assistance programs, because under the law payments from such programs are excluded

from countable income attributable to the individual. We do, however, have some data with regard to entitlement to benefits under two other programs—Temporary Assistance for Needy Families (TANF) (which

replaced Aid to Families with Dependent Children (AFDC)) and State Interim Assistance Reimbursement—at the point that the individual applied for SSI benefits. TANF (and AFDC previously) is a State

program funded under Part A of title IV of the Social Security Act. Interim assistance is assistance a State

gives to SSI applicants in cash or vendor payments for meeting basic needs while they are awaiting the

outcome of the SSI eligibility determination process.

Table V.F1 presents percentages of SSI recipients who (1) concurrently receive payments from certain

other selected programs or (2) have previously been enrolled in TANF/AFDC or received Interim Assistance Reimbursement.

1 The SIPP is a sample survey conducted by the U.S. Census Bureau, which collects data on the U.S. civilian noninstitutionalized population. The SIPP is

comprised of a continuous series of national panels which are identified by the year in which interviewing began for that panel. The participants in the panel

are divided into four rotation groups, with each group being interviewed monthly on a rotating basis concerning the 4 months prior to the month of interview.

The data are released in waves, where 4 months of interviews comprise a wave. The data presented here are for December 2001 and are taken from Wave 3

of the 2001 Panel.
2004 SSI Annual Report

100

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Note: Total numbers of recipients do not necessarily equal the sums of rounded components.

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

In this section we present information on program participation by SSI recipients or households of SSI

recipients which is not available from SSA administrative files. This information is based on data collected by interviews conducted under Wave 3 of the 2001 SIPP Panel and then matched to SSA administrative records. The reference month of December, 2001 is used since that is the most recent December for

which data are available. Since the 2001 Panel consists of 36,700 households, the sample of households

including SSI recipients is small. In interpreting the SIPP estimates it is important to consider (a) the statistical error of estimates, and (b) the limitation of the SIPP sample frame to the noninstitutional population of the United States. Therefore great care should be taken in using this information to make

generalizations about the overall SSI recipient population. The data are presented in table V.F2.

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this age grouping participate in the program.

3 Medicaid participation is automatic for SSI beneficiaries in 33 States. For SSI recipients in these States, the self-reported Medicaid variable is recorded to

indicate participation. In the remaining States, self-reported Medicaid participation is used.

4 Medicare enrollment is automatic for elderly individuals who receive OASI benefits, as well as for working-age individuals who have received DI benefits for 2 years or more. For individuals in these OASDI beneficiary categories according to SSA administrative records, the self-reported Medicare variable

is recoded to indicate participation. For individuals whose administrative records indicate that they are not in these OASDI beneficiary categories the selfreported Medicare variable is recoded to indicate nonparticipation. For individuals who did not provide their SSN, self-reported Medicare participation is

used.

Table V.F1.—Percentage of SSI Federally-Administered Recipients in Current-Payment Status with Participation 1

in Selected Programs Based on SSA Administrative Records, December, 2003

Age groups

0-17 18-64 All

65 or

older

Number of Federally-administered recipients, 

December, 2003 (in thousands). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 959 3,953 1,990 6,902

Program (In percent)

Program participation by SSI recipients, December, 2003

Federal SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7 96.4 92.8 95.8

Federally-administered State SSI supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.4 33.1 45.4 35.7

OASDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.0 30.7 57.4 35.1

Black Lung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/

Railroad Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 0.1 2/

Veterans Affairs disability cash benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.6 2.5 1.1

Worker’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 2/ 0.1

Previous program participation by SSI recipients, December, 2003

TANF/AFDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.7 26.4 8.5 23.8

Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 15.4 9.3 11.6

Table V.F2.—Percentage of Noninstitutionalized SSI Federally-Administered Recipients with Participation1

in Selected Programs Based on Data Collected Under Wave 3 of the Survey of Income and

Program Participation Matched to SSA Administrative Records, December, 2001

Age groups

0-17 18-64 All

65 or

older

Number of surveyed individuals reporting SSI Income, December, 2001 . . . . . . . . . . . . . . . . . . . . . . . . 179 941 430 1,550

Number of surveyed individuals as a percentage of noninstitutionalized Federally-administered 

recipients, December, 2001 (in percent) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.02 0.03 0.02 0.02

Program (In percent)

Program participation by SSI recipients, December, 2001

General assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 1.0 0.9 0.8

Medicaid3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93.2 94.8 98.1 95.6

Medicare4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 25.2 62.9 33.0

School breakfast/lunch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.0 0.7 2/ 10.0

TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 4.5 2/ 2.6

Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 2/ 2/

Special Supplemental Food Program for Women Infants and Children (WIC) . . . . . . . . . . . . . . . . . . 0.9 2.7 2/ 1.7

Program participation by households of SSI recipients, December, 2001 

Energy assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.0 14.9 11.2 13.7

Housing assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3 9.6 7.3 9.0

Food stamps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31.4 43.5 41.1 41.1
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2004 SSI Annual Report

G. RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of information about “relevant research on the

SSI program by the Social Security Administration (SSA) and others.” Section 1 of this appendix

describes major ongoing projects. Section 2 presents a bibliography of studies that have been conducted

by public and private entities regarding SSI payment levels, recipients, and reform proposals.

1. Ongoing Research

a. Analyses Using Survey of Income and Program Participation Data

Using Survey of Income and Program Participation (SIPP) data matched to administrative records, SSA

researchers have developed a model of financial eligibility for SSI that has been used to estimate the rate

of participation among the eligible elderly and the effects of various options to modify the SSI program

(see Davies et al. 2001/2002). The model suggests that the rate of participation among the eligible elderly

was about 62 percent in 1991. The comparable participation rate estimate at the end of 1996 was also

62 percent.

The model was also utilized to simulate the potential effects of several approaches to expand the SSI program to fight poverty among the elderly. Approaches focusing on incremental changes in the Federal benefit rate, the general income exclusion, and the asset test appear roughly equally effective in reducing the

poverty gap among the elderly on a cost-equivalent basis, while two approaches focusing on relaxing the

earned income exclusion are less effective (Davies, Rupp, and Strand, 2004). The financial eligibility

model has also been utilized to study eligibility for Medicare buy-in programs (see Rupp and Sears 2000;

Sears 2001/2002). More recently, the model has been expanded to address SSI participation and financial

eligibility among the working aged disabled, and to assess SSI benefit restructuring options for the entire

SSI population. The model was used to simulate the effects of several approaches to changing in-kind support and maintenance rules and options for altering the calculation of the Federal benefit rate for certain

living arrangement categories.

Additional research using the matched SIPP records focused on the estimation of the prevalence of households and families with multiple SSI recipients and to assess the poverty status of multirecipient households (Koenig and Rupp, forthcoming). The 1984 SIPP survey respondents were followed up for 14 years

based on administrative records on SSI and DI participation and death events to assess the relationship

between self-reported health status, disabilities, mortality and participation in the SSI and DI programs

(Rupp and Davies, 2004).

b. National Survey of Children and Families

The National Survey of Children and Families (NSCF) was designed to address a number of SSA policy

and program objectives, specifically issues pertaining to the effects of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996 (welfare reform) and updated information on SSI children

and their families. The welfare reform legislation made four changes relating to disabled children: (1)

redefining childhood disability from an impairment comparable to that preventing an adult from working

to “marked and severe functional limitations;” (2) eliminating the individualized functional assessment

(IFA) as a basis for determination; (3) removing maladaptive behaviors from the personal/behavioral

domain of the childhood mental disorders listing; and (4) requiring a redetermination at age 18. Among

the questions the survey answers are the following: 

 • What are the characteristics of SSI children? 

 • What alternative sources of care are available to disabled children who lose SSI benefits?
2004 SSI Annual Report

102

 • How is quality of life and utilization of medical services impacted by gaining or losing SSI benefits?

 • What is the cost of caring for a disabled child?

 • What are the uses of SSI benefits?

 • What is the impact of receiving childhood SSI benefits on parental labor force participation? 

The data from the survey will allow SSA to evaluate future changes to the SSI program that may affect

children and to further evaluate the effects of welfare reform on SSI children and their families. Data collection for the survey was completed in summer 2002. SSA has received a data file and is producing a

series of analyses. In addition, SSA funded a project with the Disability Research Institute to examine the

role of vocational rehabilitation services for youth based on the NSCF. 

The NSCF will provide valuable insights into SSA priorities; however, it is a cross-sectional effort. Therefore, SSA may consider another round of the NSCF to enhance its capability to better address SSA goals.

c. Evaluation of the Ticket to Work

The Ticket to Work and Work Incentives Improvement Act requires the Commissioner of Social Security

to provide for independent evaluations to assess the effectiveness of the Ticket to Work program, and to

submit a report to Congress with recommendations for a method or methods to adjust payment rates to

ensure adequate incentives for the provision of services by employment networks. Reports on the evaluation will be submitted in 2004, 2005, and 2007.

SSA awarded two 5-year contracts to Mathematica Policy Research to conduct the evaluation of the Ticket

to Work program (May 2003). The first contract focuses on data development, qualitative data collection,

and implementation of the comprehensive evaluation analyses. The second contract will implement a survey of beneficiaries. The survey was sent into the field in February 2004 and will be repeated annually

through 2007.

d. Homeless Outreach Projects and Evaluation

SSA’s FY 2003 appropriation included $8 million to conduct outreach to “homeless and other underserved” persons. We are using this funding for an outreach demonstration program that targets homeless

and other under-served individuals with disabilities and provides assistance to the target populations

through cooperative agreements to external service providers. The focus of the cooperative agreements is

on strengthening the capacity of these third-party medical and service providers to assist homeless individuals in the benefit application process. SSA received over 300 applications for funding and the Commissioner has approved funding for 34 projects nationwide.

e. Youth Transition Process Demonstration

To further the President’s New Freedom Initiative goal of increasing employment of individuals with disabilities, in September 2003, SSA awarded cooperative agreements to six States (California, Colorado,

Iowa, New York, Maryland, and Mississippi) for the purpose of developing service delivery systems to

assist youth with disabilities to successfully transition from school to work. During this critical period of

transition to adulthood, the services provided to youth with disabilities can prepare them for postsecondary

education, employment, and economic self-sufficiency. 

The States will establish partnerships to improve employment outcomes for youth ages 14-25 who receive

SSI or Social Security Disability Insurance (SSDI) payments on the basis of their own disability. The
103

2004 SSI Annual Report

funding will be used to provide a broad array of transition-related services and supports to SSI and SSDI

applicants and children.

f. Florida Freedom Initiative

The Florida Department of Children and Families began its program in conjunction with the Centers for

Medicare & Medicaid Services. This program waives certain Medicaid program rules which allow individuals to obtain cash instead of certain Medicaid services and will give participants greater control in the

planning and purchase of supports and services. SSA is participating in the project by waiving certain SSI

program rules to allow SSI beneficiaries to participate in the Florida Freedom Initiative. The intention to

waive certain SSI program rules in Florida was published in the Federal Register February 5, 2004 and

was announced by the Commissioner in a speech in Fort Lauderdale on February 9, 2004.

g. Disability Program Navigator

In FY 2003, the Department of Labor (DOL) and SSA funded the establishment of the Disability Program

Navigator positions (Navigators) in DOL’s One Stop Career Centers in 14 States (Arizona, California,

Colorado, Delaware, Florida, Illinois, Iowa, Maryland, Massachusetts, New York, Oklahoma, South Carolina, Vermont, and Wisconsin). The Navigators provide an important link to the local employer network,

as well as other supports and information that will improve the chances of successful employment for individuals with disabilities. Approximately 110 Navigators have been hired, trained, and are now on-duty in

One Stops.

h. State Partnership Initiative

SSA and the Rehabilitation Services Administration funded a combined total of 18 demonstration States in

1998. SSA provided 5-year funding to 12 States (California, Illinois, Iowa, Minnesota, New Hampshire,

New Mexico, New York, North Carolina, Ohio, Oklahoma, Vermont and Wisconsin) to develop innovative projects to assist individuals with disabilities in their efforts to reenter the workforce. These awards

help States develop State-wide programs of services and support for their residents with disabilities that

will increase job opportunities for them and decrease their dependence on benefits, including SSDI and

SSI. California, New York, Vermont and Wisconsin are assisting SSA in implementing SSI waivers to test

alternative rules.

The majority of State Partnership Initiative (SPI) projects received a 1-year extension and the projects are

in their sixth and final year. Eleven of the 12 States are still phasing out the projects, and we expect to

receive all SPI reports by the end of September 2004.

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.
2004 SSI Annual Report

104

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.

Autor, David H. and Mark G. Duggan. The Rise in Disability Recipiency and the Decline in Unemployment. JCPR Working Paper No. 226, Joint Center for Poverty Research, June 2001.

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.

Balkus, Richard and Susan Wilschke. Treatment of Married Couples in the SSI Program. Issue Paper No.

2003-01. Washington, DC: Office of Disability and Income Assistance Policy, Office of Policy, Social

Security Administration, December 2003.

Barrilleaux, Charles and Ethan Bernick. “Deservingness, Discretion, and the State Politics of Welfare

Spending, 1990-96.” State Politics & Policy Quarterly 3, 1 (Spring 2003): 1-23.

Beedon, Laurel and Charles Ford. “Supplemental Security Income (SSI): Yesterday, Today and Tomorrow.” Data Digest AARP Public Policy Institute 43 (February 2000): 1-4.

Beekman, John A. and Eli N. Donkar. “The Relationship Between the Supplemental Security Income and

the Old-Age, Survivors, and Disability Insurance Programs During the 1990s.” North American Actuarial

Journal 5, 4 (2001): 1-23.

Beers, Nathaniel S., Alexa Kemeny, Lon Sherritt, and Judith S. Palfrey. “Variations in State-Level Definitions: Children with Special Health Care Needs.” Public Health Reports 118, 5 (September/October

2003): 434-447.

Benitez-Silva, Hugo, Moshe Buchinsky, and John Rust. “How Large are the Classification Errors in the

Social Security Disability Award Process?” National Bureau of Economic Research Working Paper No.

10219, January 2004.

Berry, Hugh G. “The Supplemental Security Income Program and Employment for Young Adults with

Disabilities: An Analysis of the National Health Interview Survey on Disability.” Focus on Autism &

Other Developmental Disabilities 15, 3 (Fall 2000): 176-182.

Bound, John and Richard V. Burkhauser. “Tracking the Household Income of SSDI and SSI Applicants.”

Michigan Retirement Research Center Working Paper No. 99-03, Michigan Retirement Research Center at

the University of Michigan, May 2001. 

Bound, John, Michael Schoenbaum, and Timothy A. Waidman. Health Limitations and Early Retirement.

Michigan Retirement Research Center Working Paper No. 99-Q2, Michigan Retirement Research Center

at the University of Michigan, September 2000.

Brown, Michael Hayden. Geographic and Group Variation in Supplemental Security Income. Ph.D. dissertation, University of Kentucky, 2002.

Burkhauser, Richard V., and Mary C. Daly. “U.S. Disability Policy in a Changing Environment.” Journal

of Economic Perspectives 16, 1 (2002): 213-224.
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2004 SSI Annual Report

Burstein, Nancy R., Erik Beecroft, Jordan Hiller, and Michelle L. Wood. “Effects of the Project NetWork

Demonstration Waiver Provisions: Final Report.” Bethesda, MD: Abt Associates Inc., 1999.

Campbell, Kevin, Jim Baumohl, and Sharon R. Hunt. “The Bottom Line: Employment and Barriers to

Work among Former SSI DA&A Beneficiaries.” Contemporary Drug Problems 30, 1-2 (Spring/Summer

2003): 195-240.

Choi, Namkee G. “A Comparative Study of Elderly SSI Recipients, Denied Applicants, and Eligible Nonapplicants.” Journal of Aging & Social Policy 10, 2 (1998): 7-28.

Clarke, George R.G. “The Effect of Medicaid on Cash Assistance to the Aged and Disabled Poor.” Public

Finance Review 31, 1 (January 2003): 3- 43.

Daly, Mary C. and Richard V. Burkhauser. The Supplemental Security Income Program. Federal Reserve

Bank of San Francisco Working Paper No. 2001-06, September 2000.

Davies, Paul S., Kalman Rupp, and Alexander Strand. “The Potential of the SSI Program to Fight Poverty

among the Poorest Elderly.” Journal of Aging and Social Policy 16, 1 (2004): 21-42.

Davies, Paul S. and Melissa M. Favreault. Interactions between Social Security Reform and the Supplemental Security Income for the Aged. Center for Retirement Research Working Paper No. 2004-02, Center

for Retirement Research at Boston College, February 2004.

Davies, Paul S. “SSI Eligibility and Participation Among the Oldest Old: Evidence from the AHEAD.”

Social Security Bulletin 64, 3 (2001/2002): 38-63.

Davies, Paul S., Minh Huynh, Chad Newcomb, Paul O’Leary, Kalman Rupp, and Jim Sears. “Modeling

SSI Financial Eligibility and Simulating the Effect of Policy Options.” Social Security Bulletin 64, 2

(2001/2002): 16-45. 

Davies, Paul, Howard Iams, and Kalman Rupp. “The Effect of Welfare Reform on SSA’s Disability Programs: Design of Policy Evaluation and Early Evidence.” Social Security Bulletin 63, 1 (2000): 3-11.

Dietz, Tracy L. “Mexican American Elderly and Supplemental Security Income: Reasons and Characteristics Associated with Nonuse.” Journal of Applied Gerontology 20, 3 (September 2001): 292-306.

Diller, M. “Dissonant Disability Policies: The Tensions Between the Americans with Disabilities Act and

Federal Disability Benefit Programs.” Texas Law Review 76, 5 (April 1998): 1003-1082.

DosReis, Susan, Julie Magno Zito, Daniel J. Safer, and Karen L. Soeken. “Mental Health Services for

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Wheeler, Peter M., John R. Kearney, and Carolyn A. Harrison. “The U.S. Study of Work Incapacity and

Reintegration.” Social Security Bulletin 64, 1 (2001/2002): 32-44.

Wilschke, Susan and Richard Balkus. Child Support Payments and the SSI Program. Policy Brief No.

2004-02. Washington, DC: Office of Disability and Income Assistance Policy, Office of Policy, Social

Security Administration, February 2004.

Wilschke, Susan. “Improving Child Support Enforcement for Children Receiving SSI.” Social Security

Bulletin 64, 1 (2001/2002): 16-26.
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Wittenburg, David and Melissa Faverault. Safety Net or Tangled Web? An Overview of Programs and Services for Adults with Disabilities. Assessing the New Federalism, Occasional Paper Number 68. Washington, DC: Urban Institute. November 2003.

Wittenburg, David and Pamela J. Loprest. “Policy Options for Assisting Child SSI Recipients in Transition.” Prepared for the Ticket to Work and Work Incentives Advisory Panel. Washington, DC: Urban Institute. October 2003. Available at www.urban.org/url.cfm?ID=410872.

Wittenburg, David, David Stapleton, Adam Tucker, and Rick Harwood. “An Assessment of the Representativeness of the SSI DA&A Study Panels.” Contemporary Drug Problems 30, 1-2 (Spring/Summer

2003): 123-136.

Wu, Ke Bin. “Sources of Income for Older Persons in 1995.” PPI Data Digest 32 (1998): 1-6.

Yelowitz, Aaron S. “Why Did the SSI-Disabled Program Grow So Much? Disentangling the Effect of

Medicaid.” Journal of Health Economics 17, 3 (June 1998): 321-349.

________. Using the Medicare Buy-In-Program to Estimate the Effect of Medicaid on SSI Participation.

Institute for Research on Poverty Discussion Paper 1102-96, August 1996.
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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 2004 OASDI Trustees Report.

Asylee. A noncitizen already in the United States or at a port-of-entry who is granted asylum in the

United States. Asylum may be granted to an individual who is unable or unwilling to return to his/her

country of nationality, or to seek the protection of that country, because of persecution (or a well-founded

fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particular social

group or political opinion.

Attendant Care Services. Services (including personal care assistance) that are paid for from Federal,

State or local funds and which are provided by a paid attendant required to assist with work related and/or

personal functions. 
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Automatic Cost-of-Living Increase. The annual increase in SSI Federal benefit rates, effective for January of the current year, reflecting the change in the cost of living. The increase equals the percentage

increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers measured from the

average over July, August, and September of the second preceding year to the average for the same

3 months in the preceding year. If the increase is less than one-tenth of 1 percent, when rounded, there is

no automatic increase for the current year; the increase for the next year would reflect the increase in the

cost of living over a 2-year period.

Award. An administrative determination that an individual is eligible for an SSI benefit.

Blind. For purposes of the SSI program, an individual is considered to be blind if he/she has 20/200 or

less vision in the better eye with the use of a correcting lens, has tunnel vision of 20 degrees or less, or met

the October 1972 State definition of blindness and received benefits under the State’s former program of

Aid to the Blind in December 1973.

Blind Work Expenses (BWE). Any expenses incurred by a blind individual that are reasonably attributable to earning income. The BWE provision permits the exclusion of these expenses from the earned

income of a blind individual. (See “Impairment-Related Work Expenses (IRWE)” for the related exclusions

for disabled individuals.)

Burial Funds. A comprehensive term that for SSI purposes includes revocable burial contracts, trusts and

other burial arrangements (including amounts paid on installment sales contracts for burial spaces), cash,

accounts, or other financial instruments with a definite cash value clearly designated for the individual’s

burial expenses.

Child. A blind or disabled individual who is under age 18. 

Comparable Severity. The phrase in the Social Security Act that defined disability for children prior to

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

Under prior law, an individual under age 18 would have been considered disabled if he/she had an impairment of comparable severity to that required for individuals 18 or older.

Constant Dollars. Dollar amounts adjusted by the CPI to the value of the dollar in a particular year.

Consumer Price Index (CPI). Relative measure of inflation. In this report, all references to the CPI

relate to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Continuing Disability Review (CDR). An evaluation of an individual’s impairment(s) to determine

whether the person is still disabled within the meaning of the law for purposes of eligibility for SSI and

OASDI benefits.

Cost-of-Living Adjustment (COLA). See “Automatic Cost-of-Living Increase.”

Countable Income. An individual’s income less all-applicable exclusions. This amount is used to determine SSI eligibility and benefit amount.

Countable Resources. The amount of resources after all exclusions. This amount is used in determining

an individual’s or couple’s SSI eligibility. A resource may be cash or other liquid assets or any real or personal property that an individual (or his/her spouse) owns and could convert to cash to be used for support

and maintenance. SSI law stipulates what items are to be excluded from resources. 

Current Dollars. Amounts expressed in nominal dollars with no adjustment for inflationary changes in

the value of the dollar over time.

Current-Payment Status. Status of an SSI recipient to whom a benefit is being paid for a given month.

SSI benefits for a month are usually payable on the first day of that month.
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Dedicated Account. An account in a financial institution established for a disabled or blind child to contain retroactive SSI payments that exceed six times the Federal benefit rate (FBR) plus State supplementation (certain smaller retroactive payments may be placed in the account once it is established). Funds may

be used for: 

 • Education,

 • Personal needs assistance,

 • Special equipment or housing modifications,

 • Medical treatment,

 • Therapy or rehabilitation, or

 • Other items or services that the Commissioner deems appropriate—

provided that the expense benefits the child and, in the case of the last four items, is related to the child’s

impairment. Money from a dedicated account which is misapplied must be repaid. These accounts are

excluded from resources and the interest earned is excluded from income.

Deeming. The process by which the income and resources of an ineligible individual are considered to be

available to a recipient when determining eligibility or payment amount. Deeming applies only between:

 • The living-with ineligible spouse and the eligible spouse,

 • The living-with ineligible parent(s) and eligible child(ren) under age 18, and

 • The immigration sponsors of some noncitizens and the noncitizen(s).

Demographic Assumptions. See “Assumptions.”

Disability. For individuals aged 18 or older, the inability to engage in any substantial gainful activity

(SGA) by reason of any medically determinable physical or mental impairment that can be expected to

result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.

An individual under age 18 must have a medically determinable physical or mental impairment, which

results in marked and severe functional limitations and which has lasted or can be expected to last for a

continuous period of not less than 12 months.

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.

Earned Income Exclusion. The first $65 of a recipient’s monthly earnings and one-half of the earnings

in excess of $65 are excluded in computing the SSI benefit payable.
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Earned Income Tax Credit (EITC). A special tax credit that reduces the Federal tax liability of certain

low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer.

Economic Assumptions. See “Assumptions.”

Effective Date of Application. An application for SSI benefits is effective on the first day of the month

following the date on which the application is filed, or on which the individual first becomes eligible,

whichever is later. 

Eligible Couple. Two persons married and living together in the same household or living together as

married, both being aged, blind, or disabled and eligible for SSI.

Eligible Individual. An aged, blind or disabled person who meets all the requirements for eligibility

under the SSI program, including filing an application.

Emergency Advance Payments (EAP). Special SSI payments that are available only at the time of initial application for eligible individuals who face financial emergencies and need assistance before their

first benefits would otherwise be received. The amount of the EAP an individual receives is recovered

from subsequent benefit payments.

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 2004 began October 1, 2003 and will end

September 30, 2004.

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

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
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receiving in-kind support and maintenance from that household, and his/her SSI benefit is reduced by onethird of the FBR. 

Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWEs are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income. Infrequent means that it is not received more

than once in a calendar quarter from a single source. Irregular means that an individual could not reasonably expect to receive the income. In any given quarter up to $30 of earned and $60 of unearned infrequent

or irregular income is excluded.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food, 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 2004, a worker receives one quarter of coverage (up to four a year) for each $900 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.
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Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the

current month’s countable income), no payment is due and none is paid. If the individual is eligible based

on the current month’s factors, payment is computed. The benefit for a month is generally based on the

countable income from the second month before the current month. The basic formula is to subtract the

countable income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.

Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Sponsor. An individual who has signed an affidavit of support for a noncitizen entering the country.

State Supplementation. The payments made by a State or one of its political subdivisions to aged, blind,

or disabled individuals.

 • Administration—The governmental unit responsible for administering State supplementary payments

may be either a State or local agency or SSA. Under State administration, the State must absorb both

program benefits and administrative costs. Under Federal administration, the State is responsible for

the program benefits and, as of January 1, 2004, pays an $8.77 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. An unmarried blind or disabled individual who is not the head of a household, but is under

age 22 and regularly attending school. Effective April 2005, a blind or disabled individual who is under

age 22 and regularly attending school.

Student Earned Income Exclusion (SEIE). An earned income exclusion for a student with certain limitations established by regulations. For 2004, up to $1,370 earned income in a month, but no more than

$5,520 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 2004, a person who is not statutorily

blind and is earning more than $810 a month (net of impairment-related work expenses) is ordinarily considered to be engaging in substantial gainful activity.
127

2004 SSI Annual Report

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months

results in a termination of the SSI record. (Once a record is terminated, reapplication is necessary.)

TANF. See “Temporary Assistance for Needy Families (TANF).”

Temporary Absence. An individual’s physical move from his/her permanent place of residence that does

not constitute a change in living arrangement. In general, a temporary absence is an absence from a permanent residence which is not intended to, and does not, exceed a full calendar month. 

Temporary Assistance for Needy Families (TANF). The State grant program of assistance for needy

families established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

(Public Law 104-193). TANF replaced the Aid to Families with Dependent Children program.

Termination. For an individual, cessation of benefits, which can occur for a number of reasons, including

death, medical improvement, or a period of suspension lasting longer than 12 months. 

Terminations. As used in section IV, the net reduction (after accounting for new entrants) in the number

of SSI recipients in current-payment status during a period. 

Trusts. A legal arrangement involving property and ownership interests. Generally, property held in a

trust will be considered a resource for SSI purposes if the assets of the trust could be used for the benefit of

the individual or spouse. 

Unearned Income. The income that is not earned income. Unearned income may be in cash or in-kind.

Some examples of unearned income are:

 • Annuities, pensions, and other periodic payments;

 • Retirement and disability benefits;

 • Veterans’, workers’ and unemployment compensation;

 • Alimony and support payments;

 • Dividends, interest and certain royalties; and

 • Rents. 

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. 
2004 SSI Annual Report

128

Work Incentives. Provisions in the SSI program that are intended to act as incentives for disabled or

blind individuals to work. Examples of work incentives under the SSI program are:

 • Earned income exclusions,

 • Impairment related work expenses,

 • Blind work expenses,

 • PASS, and

 • Section 1619 benefits.
 1

SOCIAL SECURITY ADVISORY BOARD 

STATEMENT ON THE SUPPLEMENTAL 

SECURITY INCOME PROGRAM 

Public Law 104-193 requires that members of the Social Security Advisory Board be 

given an opportunity, either individually or jointly, to include their views in the Social 

Security Administration’s annual report to the President and the Congress on the 

Supplemental Security Income (SSI) program. 

We appreciate the opportunity to present our views on this important program, and 

we have asked the Social Security Administration to include the following statement of 

views in this year’s annual report. 

VIEWS OF THE BOARD REGARDING THE SSI PROGRAM 

In its statements in previous annual reports, the Board has discussed a wide range of 

issues, including program integrity, the disability determination process, rehabilitation 

and employment services, research and program evaluation, and service delivery. All of 

these areas require continuing attention. We note in particular that the Social Security 

Administration is undertaking major revisions in the disability determination process and 

in the systems supporting that process. This is an encouraging development, and the 

Board expects to monitor those changes as they are implemented. 

In presenting our views this year, we would like to comment on two aspects of the 

program. We will first comment briefly on program integrity in general and 

overpayments in particular. Then we will focus on the concept of disability embodied in 

the SSI program and the degree to which it meets the needs of the American people 

today. We have presented our views on the Social Security disability programs more 

fully in our October 2003 report, The Social Security Definition of Disability, available 

on our website, www.ssab.gov. 

PROGRAM INTEGRITY AND OVERPAYMENTS 

In 1997 the General Accounting Office designated SSI a high-risk program because 

of its vulnerability to abuse and mismanagement, increasing overpayments, and poor 

recovery of outstanding overpayments. Last year, 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 collect 

overpayments as well as administrative actions to strengthen SSI program integrity. 

GAO also noted, however, that the impacts of SSA’s actions were not yet fully 

realized. A look at some recent data shows that the SSI program continues to need 

attention. Payment accuracy is lower than in 1997, and the balance of identified SSI 

overpayments has climbed every year since 1997. 
 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 study 

for FY 2002, the most recent available, shows a decline in non-medical accuracy since 

1997, the year that GAO designated SSI a high-risk program. The overpayment accuracy 

rate for FY 2002 was 93.0 percent, compared to 94.7 percent in FY 1997. Applying the 

FY 2002 rate to the universe of $34 billion in SSI payments results in a projection of 

$2.4 billion in SSI overpayments. (“Overpayment accuracy” is determined on the basis 

of a sample study by subtracting overpaid benefits from total benefits paid and then 

dividing the result by total benefits paid.) 

Overpayment Accuracy Rates, 1997-2002

91.5

92

92.5

93

93.5

94

94.5

95

1997 1998 1999 2000 2001 2002

Fiscal Year

Percent Dollar Accuracy

Field office managers have consistently expressed to the Board their concerns about 

the quality of non-medical 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. A survey of field managers 

conducted last year by the National Council of Social Security Management Associations 

reinforces these concerns. The survey showed that only 7 percent of managers think that 

the quality of work produced in their office had improved over the last two years, while 

48 percent thought it had worsened. 

Overpayment Collection 

Although the collection of overpayments is a highly cost-effective activity, yielding 

about $10 in recovered funds per dollar spent on the activity, resource limitations have 

constrained the agency’s results in this area as well. The end-of-year SSI overpayment 

balance has doubled since the program was first put on the high-risk list, from $2 billion 

in 1997 to $4 billion in 2003. Although SSI overpayment collections increased in 

FY 2003 because of new “netting” software that automatically recovers overpayments 

when an underpayment is discovered, the SSI overpayment balance was $305 million 

higher at the end of 2003 than at the end of 2002. 
 3

SSI Overpayment Balance at End of Year,

 1997-2003

0.0

1.0

2.0

3.0

4.0

5.0

1997 1998 1999 2000 2001 2002 2003

Fiscal Year

$ Billions

The law provides that overpaid beneficiaries may request a waiver of collection of the 

overpayment, which the agency may grant under certain conditions. As we pointed out in 

previous reports, we believe that waiver policies may be applied too loosely. This is not 

a criticism of SSA’s hard-working field office employees. Rather, it is a reflection of the 

shortage of staff in those offices. As an SSA executive has told the Board, field offices 

often do not pursue overpayment collection because the staffs are too busy, and it is 

easier for them to waive collection of the debt. SSA’s Office of the Inspector General 

should be commended for its plans to issue an audit report this year evaluating SSA’s 

waiver process and to issue a report in FY 2005 on undetected overpayments in SSA’s 

disability programs. 

THE CONCEPT OF DISABILITY IN THE SSI PROGRAM 

In discussions of Social Security disability programs, attention tends to center on the 

Disability Insurance program which accounts for annual expenditures of more than 

$70 billion. However, the SSI disability program, although much smaller in benefit 

costs, represents a very large percentage of the disability caseload. Of the 10.5 million 

persons receiving benefits on the basis of disability, 3.6 million are qualified solely 

through the SSI program and another 1.3 million receive both SSI and title II disability 

payments. While the number of SSI aged beneficiaries has declined since the program 

was initiated in 1974, the number of disabled beneficiaries has grown substantially and 

continues to increase. 
 4

SSI Recipients by Age Group, 1974-2002

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1974197719801983198619891992199519982001

Millions

Under 18

18 to 64

65 and older

SSI beneficiaries are, in many respects, different from DI disabled worker 

beneficiaries. They tend to have less work history and a more tenuous connection to the 

workforce. They are more likely to have mental disorders. In 2002, 22 percent of SSI 

beneficiaries age 18 to 64 had a diagnosis of mental retardation, and 33 percent had other 

mental disorders. Only 9 percent had a musculoskeletal diagnosis. By contrast, only 

5 percent of DI disabled workers had a diagnosis of mental retardation, 28 percent had 

other mental disorders, and 24 percent had a musculoskeletal diagnosis. One in three 

adult SSI beneficiaries had a representative payee, compared with less than one in eight 

DI disabled workers. SSI beneficiaries are poor, with 60 percent of those age 18 to 64 

having no income other than their SSI benefits. These are very substantial differences. 

Consideration of any changes in program definition or structure should take these 

differences into account.

Defining Disability 

When Congress established the Supplemental Security Income program in the Social 

Security Amendments of 1972, it adopted for that program the same definition that had 

been established for the Disability Insurance program. An applicant will be found to be 

disabled if he or she is “unable to engage in any substantial gainful activity by reason of 

any medically determinable physical or mental impairment which can be expected to 

result in death or which has lasted or can be expected to last for a continuous period of 

not less than 12 months.” Because the inability to engage in substantial gainful activity is 

not a test readily applicable to children, the law defines disability for those under age 18 

in terms of “marked and severe functional limitations.” 

As we pointed out in our October 2003 report on the Social Security definition of 

disability, this definition has its roots in an earlier era when there was little expectation 

that those with severe disabilities could have any realistic expectation of participating in 

employment or aspiring to self-sufficiency. It seemed both feasible and reasonable to 

adopt a definition of disability that would attempt to draw a clear line between those who 

could and those who could not work. 
 5

While the definition of disability has remained unchanged throughout the 30 years of 

the SSI program and essentially unchanged since the Social Security disability insurance 

program was enacted a half-century ago, there have been many changes in the economy, 

in medicine, in rehabilitative technology, and in attitudes about disability and the 

disabled. 

Medical advances and improved rehabilitative knowledge and technology have made 

it harder to draw a clear line between those who can and those who cannot work. The 

nature of work and the workforce has also changed. We have become much more of a 

service economy, in which it is harder to measure the degree to which medical 

impairments limit an individual’s ability to engage in employment. Indeed, in the early 

years of the Social Security disability program, over 90 percent of awards were based on 

the severity of applicants’ medical condition without the need for the highly 

individualized assessment of the combined impact of medical and vocational factors that 

now is required in well over half of all allowed disability claims. 

Attitudes about disability and work have also changed over the years. Changing 

public attitudes are reflected in the enactment in 1990 of the Americans with Disabilities 

Act that required employers to make reasonable accommodations as necessary to enable 

the employment of disabled individuals and that condemned stereotypic assumptions 

about the ability of disabled individuals to participate in, and contribute to, society. 

Work as an Objective of the SSI Disability Program 

Although it defines disability as the inability to do any substantial gainful work, from 

its beginning, the SSI program has also included elements aimed at helping or 

encouraging beneficiaries to engage in work activity. The legislation that established it 

included provision for payment to State Vocational Rehabilitation agencies for 

rehabilitation services to SSI beneficiaries. Other provisions aimed at encouraging work 

activity were included in (or have been added to) the SSI legislation. 

• Continuation of SSI – Beneficiaries who work may continue to receive 

SSI payments until their countable income exceeds the SSI limit. (For an 

individual getting only Federal SSI with other income only from earnings, 

the monthly benefit rate would be reduced to zero at a monthly earnings 

level of $1,213.) 

• Continuation of Medicaid eligibility – Medicaid eligibility will usually 

continue even if beneficiaries earn too much to receive SSI payments, if 

they cannot afford similar medical care and depend on Medicaid in order 

to work. 

• Earned income exclusion – The first $65 ($85 if the beneficiary has no 

unearned income) of any monthly earned income, plus one-half of 

remaining earnings are excluded from countable income. 

• Student earned income exclusion – For students under age 22 who are 

regularly attending school and neither married nor the head of a 

household, up to $1,370 of earned income per month, to a maximum of 

$5,520 per year, is excluded from countable income. 
 6

• Work expenses of the blind – Any income earned by a blind individual 

that is used to meet expenses needed to earn that income is excluded from 

countable income. 

• Plan for achieving self-support (PASS) – A PASS allows a disabled or 

blind individual to set aside income and resources to get a specific type of 

job or to start a business. The income and resources that are set aside are 

excluded under the SSI income and resource tests. 

• Reinstatement of benefits – Beneficiaries who have not been eligible for 

an SSI benefit for 12 months or less do not have to file a new application 

to reinstate SSI cash payments or Medicaid coverage. 

• Impairment-related work expense exclusion – The cost of certain 

impairment-related services and items that a beneficiary needs in order to 

work are excluded from countable income for SSI purposes and are 

deducted from earnings when determining if work is substantial. 

• Continued payment under a vocational rehabilitation program – 

Beneficiaries who medically recover while participating in a vocational 

rehabilitation program that is likely to lead to becoming self-supporting 

may continue to receive benefits until the program ends. 

The Ticket to Work and Work Incentives Improvement Act (TWWIIA) of 1999 

amended the Social Security Act to create the Ticket to Work program. The program 

provides DI and SSI disability beneficiaries with a Ticket that can be used to obtain 

vocational rehabilitation training, employment services, or other support services through 

public and private providers. TWWIIA also expanded the availability of health care 

services to working disability beneficiaries. The law provided several enhancements to 

Medicaid, including giving States more options in providing Medicaid coverage to people 

ages 16-64 with disabilities who work. 

Participation rates in the program, however, have been low, and most Ticket to Work 

activity continues to involve State Vocational Rehabilitation agencies. Information on 

participation by SSI beneficiaries has not been published, and SSA’s management 

information system does not make it readily available. This is troubling, especially in 

view of concerns expressed by the Ticket to Work Advisory Panel that program 

incentives are not adequate to induce providers to serve SSI beneficiaries. 

Data on work, rather than on program participation, show that the response to all of 

these incentives has been limited. Published data for the 18 to 64 age group are not 

available for the entire period since the program began, and figures on the number of SSI 

beneficiaries who work are not available for 1984 through 1986. Since 1987, however, 

the percentage of all disabled SSI beneficiaries who work has fluctuated around 

6 percent. A very substantial amount of that work activity is by beneficiaries with 

disabilities based on mental retardation. While that diagnosis accounts for 22 percent of 

the working-age SSI disabled population, it accounts for 42 percent of those who have 

work activity. 
 7

Percentage of SSI Disabled Beneficiaries who Work, 

1987-2002

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1987198819891990199119921993199419951996199719981999200020012002

As of December 2002, of the 3.9 million SSI beneficiaries between the ages of 18 and 

64 receiving a cash benefit, only about 246,000, or 6.3 percent of the total, reported 

having earned income. The average monthly earnings for this group were $324. Out of 

this group, 17,000 had earnings above the substantial gainful activity (SGA) level ($780 

in 2002). Another 79,000 were above the SGA level and were receiving Medicaid but no 

cash benefit. 

The percentage of beneficiaries of SSI cash benefits age 18 to 64 with earned income 

has fallen from 7.2 percent in 1998 to 6.3 percent in 2002. 

Percentage of SSI Beneficiaries 

18 to 64 with Earned Income

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

1998 1999 2000 2001 2002

The amount of work activity seems small in view of the incentives that have been 

provided, and it is particularly of concern that work activity seems to be less rather than 

more common despite the addition of numerous features aimed at encouraging work. 
 8

Policy Questions 

We believe it is necessary to look beyond the existing incentives and disincentives 

and to question whether the definition of disability that is at the heart of the existing 

disability programs is consistent with our society’s basic beliefs about disability and 

work. The present definition asks the applicant and the government to make a 

determination that substantial work is not possible. That, probably inevitably, creates a 

mindset that is inimical to the motivations that are crucial to supporting the objective of 

enabling impaired individuals to achieve maximum self-sufficiency and independence. 

Moving away from that definition would very clearly involve significant programmatic 

changes. Given the importance of the disability programs, any such changes would have 

to be carefully developed and carefully implemented. A first step in addressing this issue 

would be a consideration of the choices policymakers would face, including the issue of 

the extent to which the desired results could be achieved by changes within the existing 

programs. In our October 2003 report we discuss in detail a variety of policy issues that 

would need to be addressed including: 

• Can the current definition ever be administered fairly and accurately? 

• What improvements are possible within the confines of the existing 

program and definition? 

• Is the existing definition central to program acceptability? 

• What is the realistic potential of the disability population for work? 

• How effective are the current eligibility processes at drawing the line 

between the able and the disabled, and is significant improvement 

possible? 

• How does a disability program fit into the overall and greatly changing 

picture of income security? 

• How can the impact of disability programs on motivation to work be 

improved? 

• Does the disability program, as currently defined, fail to meet the 

legitimate needs of a significant portion of the impaired population? 

• Should work-oriented services be targeted on beneficiaries or on 

applicants? 

• What should be the role of the Social Security Administration if there is a 

major restructuring? 

In considering SSI specifically, there is the additional issue of whether different 

approaches should be used for the DI and SSI programs. These two programs’ 

beneficiaries differ in their work histories and education levels, suggesting that 

approaches and incentives that work for one program might not be appropriate for the 

other. The fact that the nature of their disabilities is also different, with a much higher 

prevalence of mental retardation and other mental disorders in the SSI beneficiary 

population, also suggests that different approaches would be needed for them. In 

addition, SSI beneficiaries have increasingly been receiving means-tested benefits from 

other programs as well, making their work incentive situation more complex. The benefit 

levels of the DI and SSI programs are also different. As of February 2004, the average 

DI worker benefit was $862.60, while the average benefit for an SSI beneficiary age 18 
 9

to 64 was $443.20. From a cost-benefit perspective, it is easier to justify incentives or 

supports for DI beneficiaries to return to work, since the potential program savings are 

greater. On the other hand, average wages in the economy have tended to rise faster than 

SSI income support levels. This would argue that failing to encourage and support work 

activity for SSI beneficiaries puts them at an even greater disadvantage compared with DI 

beneficiaries whose benefit levels tend to increase with rising wages. 

Issues Related to Alternative Program Designs 

Changing the definition of disability would require a major redesign of all or part of 

the program. It would almost certainly have substantial implications for program costs, 

caseloads, and administrative resources. To the extent it involved changes in eligibility 

or benefit levels, a long transition would be needed to assure that current beneficiaries are 

not adversely affected. 

Ultimately, policymakers would need to decide whether the monetary and social 

gains from such a major shift of direction are worth the monetary and social 

consequences that might result. There are several basic questions that would need to be 

answered about any alternative program, such as: 

• What would be the appropriate definition (or definitions) of disability? 

• Would it increase or decrease the extent of eligibility and the cost of the 

program? 

• Would benefit levels differ from the existing program and in what ways? 

• Would it continue to be administered by the Social Security 

Administration and, if not, by what agency or agencies? 

• Would it emphasize services or just provide benefits under a different set 

of rules designed to rely on stronger economic incentives for working? 

If Congress wanted to adopt a different definition of disability, many different 

structures and combinations of structures are possible. Some of the possible elements 

that might be considered include. 

• Paying benefits based on an essentially medical definition of what 

constitutes a “severe” disability, not necessarily the same as the current 

adjudicative distinction between severe and non-severe, but not requiring a 

finding as to the impact of the disability on each individual’s ability to 

work. 

• Divorcing eligibility for health benefits from eligibility for cash benefit 

programs, or perhaps, for certain categories of the disabled, providing the 

health care necessary for employment rather than cash benefits. 

• Dividing the disability program into two programs. A “permanent” 

program roughly equivalent to the existing program would begin only 

after a longer waiting period (perhaps two or three years) or might be 

available immediately only to those with the most severe disabilities. A 

new temporary program would be available during that waiting period. 

The temporary program might differ from the permanent program by such 

things as having easier eligibility rules, different benefit levels, and 
 10

stronger and perhaps more individualized medical and other services 

needed to support workforce participation. A temporary program might 

be administered by a different agency from SSA with SSA retaining 

responsibility for the “permanent” program. Many variants of this 

approach are possible depending on program objectives and costs. 

• Changing the current all-or-nothing concept of disability eligibility to a 

program providing percentages of disability based (at least for less than 

100 percent levels) on very specific medically determinable criteria. 

• Changing the disqualifying event from “becoming able to work” to 

something roughly along the unemployment compensation lines of failure 

to seek or accept work. 

Conclusion 

In issuing our October 2003 report on the definition of disability, we argued that this 

is an issue that needs attention. We have found widespread dissatisfaction with the 

existing system. It may be that, in the end, the existing definition will be retained, and 

ways will be found to administer it in a manner more consistent with society’s current 

approach to disability policy. Or it may be that only a definitional change will serve to 

meet the needs of today’s impaired population in a way that society can approve. In any 

case, the problems and inconsistencies of the existing system are significant and demand 

action. 

To further the discussion of this subject, the Board sponsored a day-long forum on 

April 14, 2004 with presentations and discussion by experts and interested parties on the 

extent to which the current program is or is not consistent with appropriate national 

disability policy and what changes might be made to the program structure and definition. 

The text of the presentations is available on the Board’s website at www.ssab.gov. 

We encourage the Administration and the Congress to carefully consider how the 

Social Security disability programs can better meet the high goals set by the Americans 

with Disabilities Act of assuring the disabled “equality of opportunity, full participation, 

independent living, and economic self-sufficiency.” In some respects this issue is 

particularly important for the SSI program since that has developed into a program 

primarily serving disabled individuals and since that program’s beneficiaries have 

perhaps even more to gain if they are provided with the incentives and support needed for 

self-sufficiency. 

Hal Daub 

Chairman 

Dorcas R. Hardy Martha Keys 

David Podoff Sylvester J. Schieber Gerald M. Shea