Annual Report 

of the

Supplemental

 Security

 Income Program

Social Security Administration

May 2006
.
SOCIAL SECURITY

The Commissioner

May 30, 2006

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 2006 Annual Report of the Supplemental Security

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

Responsibility and Work Opportunity Reconciliation Act of 1996.

In my commitment to the Social Security Administration’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

Supplemental Security Income 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 tenth 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 2006, 6.9 million individuals

received monthly Federal SSI payments averaging $422 versus 6.8 million with an average

payment of $404 in January 2005.

 • Federal expenditures for cash payments under

the SSI program during calendar year 2005

increased 5.2 percent to $36.0 billion, and the

cost of administering the SSI program in fiscal

year 2005 remained level at $2.8 billion. In

calendar year 2004 the corresponding Federal

program expenditures were $34.2 billion.

Major Findings of the Report

 • By 2030, the end of the 25-year projection

period, the Federal SSI recipient population is

estimated to reach 8.8 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 increased

slightly to 2.25 percent in 2005, and is projected to increase gradually to 2.45 percent of the population by 2030. 

 • Federal expenditures for SSI payments in calendar year 2006 are estimated to increase by $2.1 billion

to $38.1 billion, an increase of 5.8 percent from 2005 levels.

 • In constant 2006 dollars, Federal expenditures for SSI payments are projected to increase to $48.5 billion in 2030, a real increase of 1.1 percent per year.

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

decline over time, from the current level of 0.29 percent of GDP in 2005 to 0.24 percent of GDP by

2030. 

Disabled 65

or older

8.4%

Aged

11.5%

Disabled

under 18

18.0%

Disabled

18-64

62.1%

 SSI Federal Payments, Calendar Year 2005

$36.0 billion

(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2005 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

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

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . 7

A. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

B. THE BASIC PLAN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

D. ASSISTANCE OF LAST RESORT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

1. Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

3. Filing for Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

4. Eligibility Issues for Residents of Public Institutions or Medical Facilities . . . . . . . . . . . . 12

5. Personal Needs Allowance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

6. Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

a. Spouse-to-Spouse Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

b. Parent-to-Child Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

c. Sponsor-to-Alien Deeming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 14

1. Earned Income Exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2. Impairment-Related Work Expense Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

3. Work Expenses of the Blind Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

4. Student Earned Income Exclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5. Plan for Achieving Self-Support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

6. Special Provisions for Disabled People Who Work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

7. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

8. Expedited Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

F. ADMINISTRATION OF THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

1. Application Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2. Determination of Eligibility for Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3. Payment of Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4. Ensuring Continued Eligibility for Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

6. Appeal Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

7. Fees for Attorneys and Non-attorney Representatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

8. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

2. Mandatory State Supplementary Payment Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3. Administration of State Supplementary Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

4. Passalong Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
(VIII)

H. COORDINATION WITH OTHER PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

1. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2006-30 . . . . . . . . . 26

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . 29

C. FEDERAL PAYMENTS UNDER SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT . . 48

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

AND BENEFICIARY SERVICES COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

V. APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

1. Basic Eligibility Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

2. Other Eligibility Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

a. Citizenship and U.S. Residency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

c. Drug Addiction and Alcoholism (DA&A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . . . . . . 57

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

3. Federal Benefit Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

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

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

f. Penalties for False or Misleading Statements or Withholding of Information. . . . . . . . . 60

g. Installment Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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
(IX)

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

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 . . . . . . . . . 94

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . 96

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 100

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

1. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

a. Analyses Using Survey of Income and Program Participation Data . . . . . . . . . . . . . . . . 102

b. National Survey of Children and Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

c. Evaluation of the Ticket to Work Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

d. Homeless Outreach Projects and Evaluation (HOPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

e. Youth Transition Demonstration (YTD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

f. Disability Program Navigators (DPNs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

g. Pediatric Medical Units (PMUs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

2. Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

III.H1 SSI State Supplementation and Coordination with Other Programs . . . . . . . . . . . . . . . . . . . . 25

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

Intermediate Assumptions of the 2006 OASDI Trustees Report, as of July 1, 1974-2030. . . . 27

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

the Intermediate Assumptions of the 2006 OASDI Trustees Report, 1974-2030 . . . . . . . . . . . 28

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2030 . . . . . . . . . . . . . . . . . . 30

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2030. . . . . . . . . . . . . . . . . . 32

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2030 . . . . . . . 34

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

Calendar Years 1974-2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2030 . . . . . 36

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2030 37

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

Selected Social Security Area Population Totals, as of December, 1974-2030 . . . . . . . . . . . . 39

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

in Current-Payment Status as of December, 1974-2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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

as of December, 1974-2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2006 . . . . . . . . . . . . . . . . . . 43

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2006 . . . . . . . . . . . . . . . . . . . . . 44

IV.C3 SSI Federal Payments in Constant 2006 Dollars, Calendar Years 1974-2030 . . . . . . . . . . . . . 46

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

Calendar Years 1974-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2005 . . . . . . . . . 47

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2030. . . . . . . . . . . . . . . 49

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . 50

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 1986-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
(XII)

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

December, 1987-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

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

Status Participating in Other Work Incentives as of December, 1990-2005 . . . . . . . . . . . . . . . 96

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

Recipients, as of December, 1987-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2005 . . . . . . . 99

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

Participation in Selected Programs Based on SSA Administrative Records,

December, 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1975-2030 . . . . . . 31

IV.B2 SSI Federally-Administered New Entrants by Age Group, Calendar Years 1975-2030. . . . . . 33

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1975-2030 . . . . . . 37

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

as of December, 1975-2030. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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

Selected Social Security Area Population Age Groups, as of December, 1975-2030 . . . . . . . 40

IV.C1 SSI Federal Payments, by Age Group, in Constant 2006 Dollars, Calendar Years 1975-2030 45

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1975-2030. . 48

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

as of December, 1987-2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
.
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 2006 a monthly Federal cash payment of $603 ($904 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 tenth 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.
2006 SSI Annual Report

2

II. HIGHLIGHTS

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

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

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

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

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During calendar year 2005, 2.0 million individuals applied for SSI benefits based on blindness or disability, an increase of 2 percent over 2004. An additional 156,000 applied for SSI benefits based on

age, an increase of 13 percent from 2004. In 2005, 854,000 applicants were awarded SSI benefits, a

decrease of 1 percent as compared to the 862,000 awarded benefits in 2004.

 • On average during calendar year 2005, 6.8 million individuals received Federal SSI benefits on a

monthly basis. This group was composed of 1.1 million aged recipients, 5.6 million disabled recipients, and 71 thousand blind recipients. Of the 5.7 million blind or disabled recipients, 0.7 million

were aged 65 or older. During the year, 7.7 million aged, blind, or disabled individuals received at

least 1 month’s Federal SSI benefit.

 • Federal expenditures for cash payments under the SSI program in calendar year 2005 totaled $36.0

billion, up from $34.2 billion in 2004.

 • On average during calendar year 2005, 2.2 million individuals received Federally-administered State

supplementary payments on a monthly basis. This group was composed of 0.6 million aged recipients, 1.6 million disabled recipients, and fewer than 50 thousand blind recipients. During calendar

year 2005, 2.5 million individuals received at least 1 month’s Federally-administered State supplementary payment.

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

totaled $4.2 billion in calendar year 2005, unchanged from 2004.

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

1995 to 49 percent in 2000, and has continued to increase, reaching 55 percent in 2005.

 • The cost of administering the SSI program in fiscal year 2005 was $2.8 billion, which was roughly

7 percent of total Federally-administered SSI expenditures.

 • In January 2006, 7.2 million individuals received Federally-administered monthly SSI benefits averaging $451. Of these, 6.9 million received monthly Federal SSI payments averaging $422, and

2.2 million received monthly State supplementation payments averaging $145.

B. SSI LEGISLATION SINCE THE 2005 ANNUAL REPORT

Since the 2005 SSI Annual Report was transmitted to the President and Congress on May 27, 2005, the

following legislative changes were made to the SSI program:
3

2006 SSI Annual Report

Public Law 109-64, enacted September 20, 2005

 • Amends the National Flood Insurance Act of 1968 to specify that assistance provided under a program for flood mitigation activities with respect to a property would not be considered income or a

resource of the owner of the property when determining eligibility for or benefit levels under any

income assistance or resource-tested program (including SSI) that is funded in whole or in part by a

Federal agency or by appropriated Federal funds.

Public Law 109-163, enacted January 6, 2006

 • Provides that individuals who were made ineligible for SSI because of their spouses or parents being

called to active military duty would not have to file a new application for SSI benefits if they again

could be eligible for benefits before the end of 24 consecutive months of ineligibility.

Public Law 109-171, enacted February 8, 2006

 • Requires that past-due monthly SSI benefits that exceed three times the maximum monthly benefit

(Federal benefit rate plus State supplementary payment amount, if any) payable to the individual be

paid in up to three installment payments, 6 months apart. Also, limits the amount of the first two

installment payments to three times the maximum monthly benefit, with all remaining benefits due

paid in the third installment. Under prior law, past-due benefits that exceeded twelve times the maximum monthly benefit were subject to installment payments. Under both current and prior law, the

amounts of the installment payments may be increased in certain cases, such as those in which the

individual has outstanding debt relating to food, clothing, or shelter, or has necessary medical needs. 

 • Requires the Commissioner to conduct reviews of a specific percentage of SSI initial disability and

blindness cases involving individuals aged 18 and older who are allowed by State Disability Determination Service (DDS) agencies. The legislation requires the reviews to be phased in as follows: for

fiscal year 2006, the Commissioner is required to review 20 percent of DDS allowances; in fiscal year

2007, the requirement is 40 percent; and, for fiscal years 2008 and thereafter, 50 percent. These

reviews are to be made before the allowance decision is implemented.

 • Begins Medicaid coverage for children who are eligible for SSI effective the month the SSI application is filed or the first month of SSI eligibility, whichever is later. (Under prior law, Medicaid eligibility for such children began the month following the month of the SSI application or first

eligibility.)

C. CURRENT ISSUES FACING THE SSI PROGRAM

During the past year, the SSI program has continued to provide cash assistance to more than 7 million

aged, blind, or disabled individuals—individuals who frequently have nowhere else to turn. To the extent

it serves this vital need for low-income Americans, SSI has been successful. But today’s SSI program is

also challenged to protect vulnerable beneficiaries and to maintain program integrity within an environment of diminishing budget resources and competing workloads. New programs such as the Medicare Part

D low-income subsidy1, and new responsibilities such as heightened Social Security number verification

standards2, make even more critical the need for SSA to focus on SSI program improvements that can provide the greatest return on investment. 

1 Authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, P.L. 108-173.

2 Required by the Intelligence Reform and Terrorism Prevention Act of 2004, P.L. 108-458.
2006 SSI Annual Report

4

Maintaining Program Integrity

As mentioned in last year’s report, one of SSA’s new program integrity tools is the ability to verify applicant bank account balances electronically. Currently, SSA has to manually verify amounts within bank

accounts (which count against SSI resource limits) through paper forms, which must be completed by both

SSA and the financial institutions. The new “Access to Financial Information” pilot has allowed SSA to

experiment with the use of electronic transmissions to obtain this information. The first stage of the pilot

(conducted in 2004, using 20 test field offices in New York) showed the potential of such electronic verifications. In the second stage (February through November 2005) the system was expanded to all 110 field

offices in New York and New Jersey. During the study, 3,429 SSI applicants or current beneficiaries were

involved. Financial institutions received more than 65,500 bank account verification requests, including

“negative” searches in cases where the applicants had alleged that they had no bank account. Preliminary

results indicate that a national rollout of the electronic verification could have a significant impact in the

prevention of erroneous payments. 

In another effort to reduce overpayments, in January 2005 SSA began a centralized wage-reporting pilot.

As with the “Access to Financial Information” study, one of the intents of the centralized wage-reporting

pilot is to find less labor-intensive ways for SSA to ensure compliance with reporting responsibilities. By

having beneficiaries in select service areas provide wage information to one location, SSA can compare

the cost-effectiveness and accuracy of shifting this work away from the field offices to employees dedicated to this specific task. Since the wage-reporting pilot’s inception, more than 4,800 beneficiaries and

employers have provided more than 42,000 wage reports. Initial quality reviews have already shown that

wage accuracy can be maintained even when reports are being processed remotely. 

Another wage reporting pilot aimed at reducing SSI overpayments based on unreported wages began in

January 2006. This pilot allows SSI recipients deemors and representative payees to call a special toll-free

number to report monthly wages by phone. Once SSA confirms the identity of the caller using knowledgebased authentication, the wage information is updated in the agency’s records, a receipt is mailed to the

reporter, and benefits are adjusted accordingly. This process shifts much of the manual effort associated

with wage reporting away from field offices.

SSA gained another valuable tool in the effort to reduce improper payments with the President’s signing of

the Deficit Reduction Act of 2005 on February 8, 2006. This new law instructs SSA to conduct reviews of

a specific percentage of SSI initial disability and blindness cases of individuals aged 18 and older whose

disability is determined by State agencies to meet SSA requirements. Such a quality review process has

been strongly advocated by SSA, as similar proposals have been included in Administration bills sent to

Congress in 2003 and 2005, and in the President’s Fiscal Year (FY) 2006 Budget. A pre-effectuation

review (PER) process is already a statutory requirement for 50 percent of Social Security disability insurance cases, and its extension to SSI disability applicants is estimated to prevent up to 3,000 erroneous SSI

allowances per year, after a 2-year phase in. Assuming that sufficient administrative resources are provided by Congress to implement this review process as envisioned by the legislation, the SSA actuaries

estimated that the SSI PER process could yield significant SSI and Medicaid program savings, estimated

at more than one billion dollars over a 10-year period. However, SSA’s appropriation for expenditures on

administrative expenses in FY 2006 is very limited. The result of these limitations is that while we are

starting up the SSI PER process, other cost effective stewardship activities such as the continuing disability review (CDR) process are being limited. If similar restrictions on administrative resources continue

into future fiscal years, projected program savings due to SSI PER may be reduced.
5

2006 SSI Annual Report

Promoting Self-Sufficiency

Another primary focus of SSA is assisting disabled and blind beneficiaries in their efforts to return to the

workforce. To this end, the agency has modified the Plan to Achieve Self-Support (PASS) policies.1 Effective March 1, 2006, a PASS qualifies as an appropriate program of employment services for benefit continuation purposes.2 This means that SSI beneficiaries who have medically recovered from a disability are

potentially eligible for continued monthly payments if they comply with the self-sufficiency goals of their

personalized PASS. As with vocational rehabilitation and other employment service programs, SSA

encourages the completion of a PASS as a means by which beneficiaries can be permanently removed

from the SSI rolls. 

Streamlining of SSI Workloads

Simplification of both policy and process continues to be a focus of SSI improvement efforts. Regarding

procedural improvements, a major contribution to the administration of SSI disability is the new Disability

Service Improvement (DSI) process. Unveiled by Commissioner Barnhart in March 2006,3 the new process is designed to improve the accuracy, consistency and fairness of both SSI and OASDI disability determinations. Highlights of the new disability process include a quick determination for individuals who are

clearly disabled, enhanced medical and vocational expertise, and improved oversight of all claims, ensuring consistent decisions at all levels of the disability process. The new process is expected to be phased in

over several years, beginning in August 2006.

In conjunction with the new disability process, SSA is also replacing the existing paper disability approach

with an electronic system that allows for faster and more accurate claim handling. This new electronic

claims system, called eDib, prevents delays associated with locating and mailing paper folders. It also

allows more than one employee (in more than one location) to work on a claim at the same time, shortening processing times and improving access to important documents. All 1,338 field offices are now using

electronic data collection to take disability claims, and nationally 93 percent of State Disability Determination Service decision makers are adjudicating cases in an electronic environment. 

In other process-related improvements, SSA is reexamining the labor-intensive nature of eligibility redeterminations, in hopes of making event reporting easier for beneficiaries. One such development in this

process is the increased use of computerized data matching. By appropriately using computer matches

with State and other Federal data sources (such as unemployment compensation databases and the Office

of Child Support Enforcement New Hires Database), SSA hopes to improve payment accuracy while

reducing the amount of time spent by employees and beneficiaries in reporting changes to the SSI record. 

In another effort to ensure a cost-effective SSI program, in October 2006 SSA will begin mailing a special

form to beneficiaries scheduled for a redetermination. The form asks beneficiaries specific questions

which will help SSA determine how much additional development (work, living arrangements, etc.) is

required. This approach is significant in that it allows SSA to monitor continued eligibility—a crucial program integrity function—in a more efficient manner. Through use of the new form, the beneficiaries themselves will assist SSA in prioritization of case reviews. 

1 For more information on the PASS rules, see Section III(E) Incentives for Work and Opportunities for Rehabilitation.

2 This continued payment authority is sometimes referred to as “section 301,” as it originated in section 301 of the Social Security Disability Amendments

of 1980 (P.L. 96-265). Expanded by subsequent legislation, it allows continued payment of OASDI and SSI benefits to individuals whose disability or blindness is medically ceased, if the individual is participating in the Ticket to Work program or another approved program of vocational rehabilitation services,

employment services, or other support services. Benefits continue if SSA determines that completion or continuation of the program will increase the likelihood that the individual will be permanently removed from the disability or blindness benefit rolls. Final rules regarding the expansion of payment authority

were published on June 24, 2005 (70 FR 36494), with the PASS inclusion specified in SSA’s Program Operations Manual System, Section SI 00870.010

(February, 2006).

3 Final rules for the new process were published on March 31, 2006 (71 FR 16424).
2006 SSI Annual Report

6

SSA also continues to study the SSI program itself, examining various benefit restructuring proposals and

discussing the implications of such restructuring in internal SSA workgroups and with other executive

branch components. Simplification examples include the streamlining of current dedicated account

requirements (by not requiring such accounts when a representative payee parent of a disabled child lives

with that child), and the treating of most military cash compensation as earned income (thus eliminating

the disadvantageous consideration of unearned income for SSI purposes). Both examples were included in

a draft bill submitted by the Administration to Congress in 2005. 

As the dialogue on these very important issues continues, examination of program intent, as well as program achievement, will be vital. The structure of a 21st century SSI program needs to relate to what we

want this safety net to accomplish. Mindful of this challenge, SSA will continue our efforts to ensure an

SSI program that is efficient and responsive to low-income beneficiaries, and effective in the eyes of

American taxpayers. 

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 2030, the Federal SSI recipient population is estimated to reach 8.8 million. Expressed as a

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

slightly from 2.25 percent of the population in 2005 to 2.45 percent by 2030. 

 • Federal expenditures for SSI payments in calendar year 2006 are estimated to increase by $2.1 billion

to $38.1 billion, an increase of 5.8 percent from 2005 levels. In constant 2006 dollars, SSI program

outlays are projected to increase to $48.5 billion in 2030, a real increase of 1.1 percent per year. 

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

decline over time, from the current level of 0.29 percent of GDP in 2005 to 0.24 percent of GDP by

2030.
7

2006 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 for

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

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

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

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

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

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

for the maintenance of needy family members.

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

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

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

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

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

B. THE BASIC PLAN

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

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

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

below specified levels;

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

them to reduce their dependency on public assistance;

 • An efficient and economical method of providing assistance;

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

and
2006 SSI Annual Report

8

 • 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, 2006, the Federal benefit rate is $603 a month for individuals and $904 a month for couples. The resource limit is $2,000 in countable resources for individuals

and $3,000 for couples.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

August 22, 1996;

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

States);

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

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

medical needs.

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

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

physical and/or mental duties which are productive—and gainful—i.e., performed for remuneration or profit. SGA rules do not apply to the SSI blind. Generally earnings from work activity of over $860 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $860 a month, he/she

generally would not be considered disabled. However, if an SSI recipient is earning over $860 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 $860 was increased from $830 effective January 1, 2006 (70 FR

61682). Yearly increases in the SGA level are based on increases in the national average wage index.
9

2006 SSI Annual Report

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

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

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

removal is withheld);

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

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

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

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

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

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

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

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

spouses and dependent children; or

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

with, 40 qualifying quarters of earnings.

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

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

or parent’s family) with whom they live, and who have an approved petition, or have a petition pending, setting forth a prima facie case for adjustment of their immigration status. A complete list of noncitizens who are considered qualified aliens can be found in the Glossary under “Qualified Alien”.

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

listed above.

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

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

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

is made that they are trafficking victims.

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

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

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

exceptions to the residency and physical presence requirements: 

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

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

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

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

while overseas.

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

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

2 Fifty States, the District of Columbia or the Northern Mariana Islands.
2006 SSI Annual Report

10

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

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

United States.

D. ASSISTANCE OF LAST RESORT

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

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

assistance.

1. Income

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

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

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

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

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

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

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

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

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

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

significant because different exclusions apply to each type of income. 

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

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

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

determining the amount of an individual’s benefit.

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

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

and maintenance effective February 7, 2005.
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2006 SSI Annual Report

Income Exclusions1

The principal earned income exclusions are: 

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

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

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

 • Infrequent or irregularly received income (the first $30 received in 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 (the first $60 received in a quarter). 

2. Resources 

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

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

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

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

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

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

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

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

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

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

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

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

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

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.
2006 SSI Annual Report

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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, if needed for maintenance, use and occupancy of the home, and personal effects2;

 • An automobile, if used to provide necessary transportation;3

 • Property essential to self-support;

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

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

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

earned on such amounts.

3. Filing for Other Benefits 

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

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

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

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

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

unemployment insurance benefits. 

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

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

of the notice to file for the benefits involved. 

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

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

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

ineligible for SSI unless one of the following exceptions applies:

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

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

more than 50 percent of the cost of care—in these situations, the SSI payment is limited to $30;

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

2 The $2,000 value limit on household goods and personal effects was removed effective February 7, 2005 (70 FR 6340).

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

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

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

transportation, simplifies the evaluation of this resource.
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2006 SSI Annual Report

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

16 residents; 

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

6 months in any 9-month period);

 • 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. In these situations, the recipient may continue to receive the full benefit for any

of the first 3 full months of medical confinement if all other conditions for payment are met.

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. 

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.
2006 SSI Annual Report

14

b. Parent-to-Child Deeming 

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

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

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

age 18 who is living in the household. Deeming to a child would continue if the parent is absent from the

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

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

c. Sponsor-to-Alien Deeming 

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

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

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

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

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

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

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

resources deemed to the noncitizen.

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

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

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

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

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

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

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

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

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

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

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

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

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

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

rehabilitation services and support for work efforts. 

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

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

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

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

3 For a temporary period—January 1994 through September 1996—the deeming period was 5 years.
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2006 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 costs of certain impairment-related services and items that a disabled (but not blind) individual needs

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

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

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

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

condition. 

3. Work Expenses of the Blind Exclusion 

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

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

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

expense of the worker.

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

4. Student Earned Income Exclusion 

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

regularly attending school. It is intended to help defray the cost of educational training. Under current regulations, up to $1,460 of earned income per month but no more than $5,910 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 $1,410 and $5,670, respectively, effective January 1, 2006 (70 FR 61679). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.
2006 SSI Annual Report

16

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 at or below the threshold.

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

1619(b) status may continue. 
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2006 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 clients. 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 that can be

compensated for those services by SSA. All ENs are compensated through the 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.
2006 SSI Annual Report

18

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 whereas each State’s Disability Determination Services (DDS) makes determinations of the

medical eligibility factors.1

2. Determination of Eligibility for Benefits

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.)

1 The applicant can appeal unfavorable determinations of either the nonmedical or medical eligibility factors. The administrative review process consists of

several steps, which must be requested within certain time periods. Under DSI, the new disability determination process for which final rules were published

in March 2006, the administrative review process will be changed for appeals of unfavorable medical determinations. Implementation of DSI is scheduled to

begin with the Boston region in August 2006.
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2006 SSI Annual Report

3. Payment of Benefits

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

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

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

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

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

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

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

4. Ensuring Continued Eligibility for Benefits

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.

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 monetary penalties or ineligibility for

SSI benefits.

The basic “failure to report” 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. However, in cases of fraud or false representation of material facts, SSA’s Inspector General can assess civil monetary penalties in amounts as large as

$5,000. SSA also has the authority to suspend eligibility to SSI benefits for periods of 6, 12, or 24 months.

Additionally, SSA may use an accelerated rate of overpayment recovery to encourage accurate reporting.

Overpayments to SSI recipients are generally recovered by withholding from the monthly benefit an

amount equal to 10 percent of the individual’s countable monthly income. For many recipients whose only

income is SSI, this amounts to 10 percent of their monthly SSI payment. However, if SSA determines that

1 A medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
2006 SSI Annual Report

20

misrepresentation or concealment of material information has occurred, 100 percent of the monthly SSI

benefit may be subject to recovery.

5. 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 ($33 a month in 2006 ($64 a

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

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

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

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

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

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

expenses related to the child’s impairment.

6. Appeal Rights 

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

the opportunity to request that their benefits continue while a decision at the first level of appeal is pending. 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.

7. Fees for Attorneys and Non-attorney Representatives

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

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

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

provide valuable service to claimants).

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

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

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

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

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

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

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

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

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

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

1 Fee agreements prior to February 1, 2002, were limited to the lesser of 25 percent of the retroactive payment or $4,000.
21

2006 SSI Annual Report

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

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

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

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

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

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

8. Advance Payments 

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

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

on their SSI status. 

a. Emergency Advance Payments 

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

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

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

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

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

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

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 either to 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.

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

Northern Mariana Islands if it began making State supplementary payments.
2006 SSI Annual Report

22

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 Passalong Provisions below).

2. Mandatory State Supplementary Payment Programs 

States are required1 to maintain the December 1973 income levels of individuals who were transferred

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

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

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

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

receive mandatory State supplementary payments.

3. Administration of State Supplementary Payments 

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

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

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

are required to pay SSA a $9.29 fee for each supplementary payment issued in fiscal year 2006. Fees are

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

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

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

that they may establish additional income exclusions. 

4. Passalong Provisions

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

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

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

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

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

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

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

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

State’s adult assistance programs in 1973. 

H. COORDINATION WITH OTHER PROGRAMS

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

Medicaid, food stamps, and temporary State assistance also are important in keeping individuals from sliding further into poverty. SSA plays a limited but important role in helping States with regard to administra1 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.
23

2006 SSI Annual Report

tion of Medicaid and food stamp programs, and provisions in the SSI statute assure that payments made by

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

1. Windfall Offset 

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

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

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

and SSI payments were paid for the same period. 

2. Medicaid Determinations 

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

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

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

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

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

33 States. 

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

from:

 • Cost-of-living adjustments,

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

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

 • Increases in or entitlement to disabled adult child benefits.

3. Food Stamp Applications 

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

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

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

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

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

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

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

1 California “cashes out” food stamps and SSI recipients there receive a cash payment in their State supplementary payment in lieu of food stamps.
2006 SSI Annual Report

24

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.1 Thirty-nine States have interim assistance agreements with SSA. 

1 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. Beginning February 2005, when an authorized representative fee may be paid

directly, SSA reimburses the State and then pays the approved fee. Any remainder will be paid into a special financial account, in installments, or the full

remainder to the recipient. This change is a 5-year demonstration project.
25

2006 SSI Annual Report

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

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

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

4 Mandatory minimum State supplementation program is Federally-administered.

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

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

 United States and 

District of Columbia

Optional State program—

Administered by:

Method of mandatory 

passalong of benefit 

increases from 

cost-of-living adjustments

Medicaid eligibility 

determination—

Interim 

assistance 

reimbursement 

agreement 

with SSA

Based on: Agreement 

with SSA 

to 

determine 

State eligibility

Federal 

(SSA)

Federal 

& State

“Payment

levels”

“Total

expenditures”

Federal 

criteria

State

criteria

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

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

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

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

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

Total number of 

States . . . . . . . . . . . 30 10 5 41 9 40 11 33 39
2006 SSI Annual Report

26

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2006-30

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

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

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

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

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

efforts in this regard.

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

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

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

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

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

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

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

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

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

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

also shown.

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS

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

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

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

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

assumptions developed for the 2006 Annual Report of the Board of Trustees of the Federal Old-Age and

Survivors Insurance and Federal Disability Insurance (OASDI) Trust Funds.2 Detailed discussion of these

demographic and economic parameters is presented in sections V.A and V.B of that report.3 The key

assumptions utilized directly for the projections presented in this report are summarized in the following

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

the presentation of SSI participant projections discussed in the next section.

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

(2) recovery from a qualifying disability.

2 House Document 109-103, published May 1, 2006.

3 Ibid, Section V.A, Demographic Assumptions and Methods and Section V.B, Economic Assumptions and Methods.
27

2006 SSI Annual Report

1 Age as of last birthday.

2 Preliminary or estimated.

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 2006 OASDI Trustees Report, as of July 1, 1974-2030

[In thousands]

Year

Age groups 1

Total

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

Historical data:

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

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

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

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

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

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

1980 .................. 65,747 70,443 38,565 34,240 15,773 10,464 235,233

1981 .................. 65,421 71,537 39,565 34,297 16,045 10,763 237,627

1982 .................. 65,209 72,120 41,104 34,246 16,332 11,093 240,104

1983 .................. 65,146 72,586 42,665 34,125 16,594 11,426 242,541

1984 .................. 65,233 72,912 44,170 34,030 16,834 11,743 244,922

1985 .................. 65,458 73,116 45,663 33,931 17,113 12,054 247,335

1986 .................. 65,747 73,222 47,273 33,754 17,448 12,356 249,800

1987 .................. 65,983 73,301 48,966 33,650 17,738 12,675 252,313

1988 .................. 66,184 73,426 50,663 33,666 17,961 12,993 254,892

1989 .................. 66,613 73,360 52,428 33,723 18,167 13,316 257,608

1990 .................. 67,474 72,883 54,229 33,842 18,371 13,658 260,458

1991 .................. 68,588 72,127 55,998 34,072 18,595 13,992 263,372

1992 .................. 69,706 71,312 57,642 34,552 18,805 14,324 266,342

1993 .................. 70,731 70,569 59,179 35,203 18,956 14,635 269,273

1994 .................. 71,633 69,853 60,784 35,840 19,032 14,938 272,081

1995 .................. 72,363 69,189 62,510 36,403 19,048 15,273 274,786

1996 .................. 72,978 68,684 63,832 37,397 18,981 15,638 277,511

1997 .................. 73,458 68,372 64,660 38,900 18,880 15,978 280,248

1998 .................. 73,799 68,208 65,474 40,390 18,748 16,279 282,898

1999 .................. 74,118 68,139 66,241 41,843 18,615 16,562 285,517

2000 .................. 74,416 68,353 66,827 43,260 18,554 16,876 288,287

2001 .................. 74,713 68,832 67,237 44,735 18,531 17,224 291,274

2002 .................. 75,026 69,415 67,501 46,265 18,548 17,529 294,284

20032 ................ 75,273 70,015 67,667 47,796 18,613 17,760 297,125

20042 ................ 75,479 70,398 67,811 49,463 18,732 17,893 299,777

20052 ................ 75,689 70,506 67,956 51,269 18,934 17,968 302,323

Projected:

2006 .................. 75,890 70,656 67,973 53,063 19,251 18,015 304,849

2007 .................. 75,993 71,088 67,717 54,757 19,760 18,026 307,340

2008 .................. 75,997 71,807 67,217 56,334 20,435 18,008 309,798

2009 .................. 76,008 72,590 66,613 57,943 21,109 18,001 312,264

2010 .................. 76,084 73,285 65,967 59,642 21,716 18,047 314,741

2011................... 76,230 73,918 65,343 61,094 22,528 18,112 317,226

2012 .................. 76,429 74,484 64,825 62,084 23,706 18,192 319,719

2013 .................. 76,658 74,951 64,436 62,919 24,941 18,310 322,215

2014 .................. 76,939 75,240 64,206 63,770 26,081 18,475 324,710

2015 .................. 77,280 75,312 64,223 64,478 27,211 18,699 327,202

2016 .................. 77,647 75,284 64,477 64,943 28,312 18,999 329,662

2017 .................. 78,000 75,306 64,833 65,201 29,319 19,427 332,086

2018 .................. 78,264 75,518 65,144 65,339 30,270 19,963 334,497

2019 .................. 78,416 75,907 65,301 65,448 31,317 20,502 336,892

2020 .................. 78,530 76,326 65,330 65,574 32,488 21,022 339,269

2021 .................. 78,621 76,749 65,407 65,601 33,534 21,715 341,626

2022 .................. 78,831 77,059 65,676 65,375 34,319 22,696 343,957

2023 .................. 79,180 77,203 66,168 64,928 35,045 23,733 346,256

2024 .................. 79,522 77,257 66,807 64,384 35,836 24,708 348,514

2025 .................. 79,852 77,220 67,507 63,807 36,642 25,701 350,729

2026 .................. 80,160 77,174 68,203 63,253 37,376 26,705 352,871

2027 .................. 80,441 77,177 68,815 62,797 37,993 27,712 354,936

2028 .................. 80,702 77,252 69,294 62,466 38,501 28,732 356,946

2029 .................. 80,942 77,380 69,599 62,290 38,884 29,805 358,899

2030 .................. 81,164 77,542 69,722 62,349 39,085 30,932 360,794
2006 SSI Annual Report

28

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.

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.

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

Assumptions of the 2006 OASDI Trustees Report, 1974-2030

Year

Benefit rate

increase 1

Federal benefit rate

Individual Couple Essential person 2

Historical data:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2005....................................................... 2.7 579.00 869.00 290.00

2006....................................................... 4.1 603.00 904.00 302.00

Projected:

2007....................................................... 2.3 617.00 925.00 309.00

2008....................................................... 2.2 630.00 946.00 316.00

2009....................................................... 2.6 647.00 970.00 324.00

2010....................................................... 2.8 665.00 997.00 333.00

2011....................................................... 2.8 683.00 1,025.00 342.00

2012....................................................... 2.8 703.00 1,054.00 352.00

2013....................................................... 2.8 722.00 1,084.00 362.00

2014....................................................... 2.8 743.00 1,114.00 372.00

2015....................................................... 2.8 763.00 1,145.00 382.00

2016....................................................... 2.8 785.00 1,177.00 393.00

2017....................................................... 2.8 807.00 1,210.00 404.00

2018....................................................... 2.8 829.00 1,244.00 415.00

2019....................................................... 2.8 853.00 1,279.00 427.00

2020....................................................... 2.8 876.00 1,315.00 439.00

2021....................................................... 2.8 901.00 1,352.00 451.00

2022....................................................... 2.8 926.00 1,390.00 464.00

2023....................................................... 2.8 952.00 1,428.00 477.00

2024....................................................... 2.8 979.00 1,468.00 490.00

2025....................................................... 2.8 1,006.00 1,510.00 504.00

2026....................................................... 2.8 1,035.00 1,552.00 518.00

2027....................................................... 2.8 1,063.00 1,595.00 533.00

2028....................................................... 2.8 1,093.00 1,640.00 548.00

2029....................................................... 2.8 1,124.00 1,686.00 563.00

2030....................................................... 2.8 1,155.00 1,733.00 579.00
29

2006 SSI Annual Report

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 2005, there were 1.214 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 2005, there were 5.9 million blind or disabled recipients of Federally-administered SSI

payments 

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

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

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

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

classified as blind or disabled adults (rather than aged). In December 2005, there were 4.863 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 780 thousand

disabled or blind recipients age 65 or older.

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

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

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

In December 2005, there were 1.036 million 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 2005 were about 2.6 percent higher (1.8 percent higher for blind or disabled and

13.3 percent higher for aged) than were received in 2004 following increases of 3.4 percent and 7.3 percent in 2003 and 2004, respectively. The actual result for 2005 was 2.6 percent higher than estimated for

2005 in the 2005 Annual Report. This growth in applications in the past few years is likely partially

related to the downturn in the economy that began early in 2001. However, some of the more recent

growth in 2004 and 2005 is attributable to the signature proxy process3 introduced by SSA in June 2004.

1 Population flows are projected on a calendar-year-age basis, with activity throughout a given year tabulated according to age at the end of the calendar

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

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

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

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

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

3 The signature proxy process eases the application process by eliminating the requirement for a signed paper application from SSI applicants filing claims

via the telephone.
2006 SSI Annual Report

30

In the short term, our projections are for the numbers of applications to decline as the economy is assumed

to continue its recovery; however, the overall level of applications reflects a projected permanent upward

shift in applications due to signature proxy process. Following the short-term decline, applications are estimated to grow in the longer term roughly in line with overall population growth, as was assumed in last

year’s report.

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

2 “All” column estimated by the Office of Research, Evaluation, and Statistics using a 10-percent sample and published in the SSI Annual Statistical

Report.

3 Includes conversions from State programs and applications received in 1973. 4 Estimated totals revised from prior SSI Annual Reports.

5 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B1.—SSI Federally-Administered Applications,1 Calendar Years 1974-2030

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 2, 3 . 125 590 626 1,303 158 20 1,434 1,496 2,822 2,931 5,752

1975 2, 4 . 94 276 258 443 15 5/ 238 145 1,086 382 1,468

1976 . . . . 82 260 250 384 8 5/ 175 80 984 254 1,239

1977 . . . . 100 286 246 401 7 1 174 84 1,040 259 1,298

1978 . . . . 94 276 256 413 7 5/ 170 88 1,046 258 1,304

1979 . . . . 106 282 268 426 7 5/ 178 84 1,090 262 1,352

1980 . . . . 122 310 272 438 8 1 187 89 1,151 276 1,427

1981 . . . . 78 206 173 271 5 5/ 88 42 733 130 864

1982 . . . . 88 246 206 278 11 1 93 48 830 141 971

1983 . . . . 102 258 225 311 5 1 122 68 902 190 1,092

1984 . . . . 103 267 247 321 7 5/ 178 108 944 286 1,230

1985 . . . . 114 294 297 409 7 5/ 151 73 1,122 223 1,345

1986 . . . . 122 316 334 426 7 1 150 81 1,205 231 1,437

1987 . . . . 108 287 299 331 7 1 134 66 1,033 200 1,233

1988 . . . . 114 282 301 317 7 1 131 69 1,021 200 1,221

1989 . . . . 116 297 323 329 7 5/ 146 76 1,072 222 1,294

1990 . . . . 149 335 380 356 6 5/ 156 71 1,226 227 1,454

1991 . . . . 237 391 453 391 7 5/ 159 68 1,479 227 1,706

1992 . . . . 339 453 522 407 8 5/ 163 64 1,728 226 1,955

1993 . . . . 473 506 570 416 7 5/ 158 61 1,973 218 2,191

1994 . . . . 517 492 571 402 6 5/ 136 52 1,989 188 2,177

1995 . . . . 473 435 524 363 6 5/ 121 44 1,801 165 1,966

1996 . . . . 431 393 500 345 9 1 108 44 1,678 153 1,831

1997 . . . . 306 317 438 307 8 1 82 35 1,377 117 1,494

1998 . . . . 318 317 453 331 9 1 96 39 1,428 136 1,563

1999 . . . . 338 317 470 336 6 5/ 107 39 1,468 145 1,614

2000 . . . . 337 321 486 341 6 5/ 102 39 1,493 140 1,633

2001 . . . . 351 346 502 354 4 5/ 98 35 1,558 134 1,691

2002 . . . . 385 388 550 384 4 5/ 105 38 1,711 142 1,853

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

2004 . . . . 420 438 604 452 4 5/ 101 37 1,919 138 2,057

2005 . . . . 429 439 604 477 5 5/ 112 44 1,954 156 2,110

Projected:

2006 . . . . 418 429 588 488 5 5/ 111 40 1,929 151 2,080

2007 . . . . 403 401 565 487 6 5/ 111 38 1,863 149 2,012

2008 . . . . 397 396 548 495 6 5/ 116 38 1,844 153 1,997

2009 . . . . 393 393 536 504 6 5/ 119 38 1,832 156 1,988

2010 . . . . 392 395 528 513 6 5/ 121 38 1,834 158 1,992

2011 . . . . 392 397 522 521 7 5/ 128 38 1,839 165 2,005

2012 . . . . 393 400 518 529 8 5/ 136 38 1,847 174 2,021

2013 . . . . 394 402 514 536 8 5/ 141 38 1,854 179 2,033

2014 . . . . 396 403 513 542 8 5/ 146 38 1,862 184 2,046

2015 . . . . 398 402 513 547 8 5/ 151 39 1,868 190 2,059

2016 . . . . 399 402 516 549 9 5/ 156 39 1,874 196 2,070

2017 . . . . 400 402 518 549 9 5/ 160 41 1,879 201 2,079

2018 . . . . 401 404 520 548 9 5/ 165 42 1,883 206 2,089

2019 . . . . 402 407 520 548 9 5/ 171 43 1,888 214 2,101

2020 . . . . 403 410 520 549 10 5/ 177 44 1,892 221 2,113

2021 . . . . 404 413 521 548 10 5/ 181 46 1,896 227 2,123

2022 . . . . 406 413 524 544 10 5/ 185 48 1,898 233 2,131

2023 . . . . 408 414 529 539 10 5/ 189 50 1,900 239 2,138

2024 . . . . 410 413 535 533 10 5/ 193 52 1,902 245 2,147

2025 . . . . 411 413 541 529 10 5/ 197 54 1,904 251 2,155

2026 . . . . 413 413 546 524 10 5/ 199 56 1,906 255 2,162

2027 . . . . 414 413 551 521 10 5/ 201 58 1,909 259 2,168

2028 . . . . 415 413 554 519 10 5/ 202 60 1,912 262 2,174

2029 . . . . 416 414 556 520 10 5/ 203 62 1,917 265 2,181

2030 . . . . 417 415 556 523 10 5/ 202 65 1,921 266 2,188
31

2006 SSI Annual Report

The adjudication of these applications involves an evaluation of levels of income and resources available

to the applicants, as well as other eligibility factors including marital and citizenship status and living

arrangements. In addition, over 90 percent of the applications are for disability benefits which generally

require an evaluation of an alleged impairment by the appropriate State Disability Determination Service.

An unfavorable disability determination may then be appealed by the applicant through several administrative levels of appeal.1 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.”2 Following an increase of 4.1

percent in 2004, the numbers of new entrants into SSI payment status in 2005 decreased by 1.0 percent. As

with applications, the experience varied by program category, with the blind or disabled new entrants

decreasing by 1.8 percent and the aged new entrants increasing by 5.1 percent. The growth in awards in

recent years has not kept pace with the growth in applications, and the number of claims pending adjudication has grown. In addition, since the introduction of the signature proxy process, there has been a significant increase in the number of denials for applications where the applicant does not meet the nonmedical

criteria. Our projections assume that the level of new entrants will remain fairly high in the next 2 years,

but will then decline for a few years following the projected decline in applications. Over the longer term

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

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

[In thousands]

1 The administrative review process will be changed for appeals of unfavorable medical determinations under DSI, the new disability determination process for which the final regulations were published in March 2006. Our projections incorporate the assumed effects of implementing DSI in the SSA administrative regions of Boston, Denver, and Seattle by fiscal year 2009; however, the projections do not include any assumed effects for implementing DSI in the

remaining seven regions since the implementation schedule for these regions has not yet been determined. We expect the estimated effect of the new process

to be fully reflected in next year’s report.

2 In addition, these counts differ slightly from other similar totals identified as “awards” and published by the Office of Research, Evaluation, and Statistics

(ORES) in the Annual Statistical Supplement to the Social Security Bulletin. The ORES totals are similar in concept to those used in this report, but differ

slightly due to the timing of the action being tabulated. For example, ORES does not count a disability benefit as being awarded until the disability decision

is made. In contrast, under the procedures used in this report, individuals first coming on the SSI rolls through a finding of presumptive disability would be

counted as a “new entrant” in the first month of presumptive disability payment.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Projected 75 or older
2006 SSI Annual Report

32

1 Represents period in which first payment was made, not date of first eligibility for payments.

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

3 Totals for 1974 include recipients converted from previous State programs as well as new entrants to the SSI program during 1974. 4 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B2.—SSI Federally-Administered New Entrants, Calendar Years 1974-2030

[In thousands]

Calendar year 1

Blind or disabled, by age group Aged, by age group Totals 2

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 3. . . . 63 390 381 925 141 18 1,211 1,268 1,919 2,479 4,398

1975 . . . . . 58 133 105 272 16 4/ 216 131 584 347 931

1976 . . . . . 43 105 88 207 9 4/ 147 70 452 218 669

1977 . . . . . 48 104 84 184 8 1 140 69 429 209 637

1978 . . . . . 43 92 76 154 6 4/ 127 66 370 193 563

1979 . . . . . 44 87 62 133 4 4/ 116 53 330 169 499

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

1981 . . . . . 37 77 49 106 3 4/ 80 37 272 117 389

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

1983 . . . . . 47 88 62 117 3 4/ 95 51 317 146 463

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

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

1986 . . . . . 55 127 109 153 5 4/ 110 51 449 161 610

1987 . . . . . 48 119 106 157 5 4/ 116 52 435 167 602

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

1989 . . . . . 48 113 115 155 5 4/ 127 62 436 189 625

1990 . . . . . 76 136 134 182 5 4/ 149 66 533 215 748

1991 . . . . . 126 146 172 200 6 4/ 139 54 650 193 844

1992 . . . . . 221 199 221 233 6 4/ 133 48 881 181 1,062

1993 . . . . . 235 194 221 225 6 4/ 136 49 881 185 1,066

1994 . . . . . 204 164 207 215 6 4/ 116 42 796 157 953

1995 . . . . . 177 147 207 218 5 4/ 105 36 755 141 895

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

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

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

1999 . . . . . 140 114 186 195 5 4/ 88 33 640 120 760

2000 . . . . . 145 112 180 191 5 4/ 84 31 633 115 748

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

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

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

2004 . . . . . 183 138 202 231 4 4/ 78 27 757 105 862

2005 . . . . . 178 131 192 238 4 4/ 81 29 744 111 854

Projected:

2006 . . . . . 178 140 208 259 5 4/ 82 28 789 110 899

2007 . . . . . 177 141 217 275 7 4/ 86 28 818 114 932

2008 . . . . . 173 136 205 273 7 4/ 91 28 794 119 914

2009 . . . . . 169 131 193 272 7 4/ 94 29 772 122 895

2010 . . . . . 168 129 186 274 7 4/ 95 29 763 124 887

2011 . . . . . 168 128 182 275 7 4/ 100 29 761 129 890

2012 . . . . . 169 128 180 277 8 4/ 107 29 762 135 897

2013 . . . . . 170 129 178 281 8 4/ 110 29 765 139 904

2014 . . . . . 170 129 178 284 8 4/ 114 29 769 143 912

2015 . . . . . 171 128 178 287 8 4/ 118 30 772 148 920

2016 . . . . . 172 128 178 288 8 4/ 122 30 774 152 926

2017 . . . . . 172 128 179 289 8 4/ 125 31 777 156 933

2018 . . . . . 173 129 179 289 8 4/ 129 32 778 161 939

2019 . . . . . 173 130 179 289 9 4/ 133 33 780 166 946

2020 . . . . . 174 130 179 289 9 4/ 138 34 781 172 953

2021 . . . . . 174 132 179 289 9 4/ 142 35 783 177 960

2022 . . . . . 175 132 181 287 9 4/ 145 37 784 181 965

2023 . . . . . 176 132 183 285 9 4/ 147 38 784 186 970

2024 . . . . . 176 132 185 282 10 4/ 151 40 785 190 975

2025 . . . . . 177 132 187 280 10 4/ 154 42 785 195 980

2026 . . . . . 178 132 189 278 10 4/ 156 43 785 199 984

2027 . . . . . 178 132 190 276 10 4/ 157 45 786 201 987

2028 . . . . . 179 132 192 274 10 4/ 158 46 786 204 990

2029 . . . . . 179 132 192 274 10 4/ 158 48 787 206 993

2030 . . . . . 179 133 192 275 9 4/ 157 50 789 207 996
33

2006 SSI Annual Report

Some of the persons receiving SSI benefits in a year will be removed from current-payment status during

the year because of death or the loss of SSI eligibility. The loss of eligibility can occur either as the result

of an evaluation of the individual’s nonmedical factors of eligibility, including income and resources, or

due to a determination that he/she is no longer disabled as defined under the Social Security Act.1 For

example, disabled children, upon attainment of age 18, lose eligibility if they do not qualify for benefits

under the disabled adult eligibility criteria. For purposes of this presentation, we refer to the net reduction

in the number of SSI recipients in payment status during a period as the number of SSI terminations for

that period. 

In the following tables, we have separated the numbers of people moving out of payment status into those

leaving due to death (table IV.B3), and those leaving for all other reasons (table IV.B4). Table IV.B5 and

figure IV.B3 present historical and projected numbers of total terminations by calendar year. 

Actual experience for terminations in 2005 was 0.5 percent lower than anticipated in the 2005 Annual

Report. Terminations due to death were 2.9 percent lower than anticipated, and terminations due to reasons other than death were 0.5 percent higher than estimated last year. When aggregated by category, total

aged terminations in 2005 were 6.7 percent lower than estimated, while blind or disabled terminations

were 0.7 percent higher.

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

[In thousands]

1 Some historical details on income and resource redeterminations and the results of continuing disability reviews are presented in section V.D. Section V.E

presents information on certain incentive programs intended to encourage disabled SSI recipients to return to work.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
2006 SSI Annual Report

34

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

2 Fewer than 500.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2030

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 3 8 34 7 2 40 97 55 137 192

1975 . . . . 1 5 12 35 10 2 39 108 65 147 212

1976 . . . . 2 5 9 36 12 1 34 103 64 137 201

1977 . . . . 1 5 12 30 15 1 36 101 65 137 203

1978 . . . . 2 5 8 34 16 2 31 95 67 126 193

1979 . . . . 2 6 9 32 18 2 29 92 67 121 189

1980 . . . . 3 5 9 31 22 1 27 100 71 127 198

1981 . . . . 3 5 8 31 24 2 21 92 73 112 186

1982 . . . . 3 4 8 28 21 2 16 80 65 96 161

1983 . . . . 3 6 8 25 21 3 15 79 65 94 158

1984 . . . . 3 4 9 29 18 5 13 83 67 96 163

1985 . . . . 2 6 10 29 24 6 17 84 77 101 178

1986 . . . . 2 8 12 28 22 8 15 83 80 98 178

1987 . . . . 3 8 13 30 23 10 15 82 87 97 184

1988 . . . . 5 8 14 31 25 12 16 81 95 97 191

1989 . . . . 3 8 16 33 23 12 15 78 95 93 187

1990 . . . . 4 9 18 36 22 14 16 75 103 92 194

1991 . . . . 4 9 20 39 23 17 17 74 112 91 203

1992 . . . . 4 11 22 38 22 15 16 69 111 84 195

1993 . . . . 6 13 27 41 23 17 16 72 127 88 215

1994 . . . . 6 14 27 41 23 17 16 69 127 85 212

1995 . . . . 6 13 30 43 24 18 16 65 135 81 216

1996 . . . . 7 12 30 44 24 18 16 67 135 83 218

1997 . . . . 5 10 24 43 24 19 15 64 127 79 206

1998 . . . . 5 9 24 43 25 20 14 64 127 78 205

1999 . . . . 5 9 25 45 25 21 13 63 131 76 207

2000 . . . . 5 8 27 46 25 21 12 61 132 73 205

2001 . . . . 5 8 28 47 25 22 11 60 135 71 207

2002 . . . . 5 8 28 49 24 21 11 58 135 70 205

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

2004 . . . . 5 8 27 52 25 22 10 56 140 65 205

2005 . . . . 5 8 28 54 25 22 9 54 141 63 204

Projected:

2006 . . . . 5 8 27 55 26 22 9 56 144 65 209

2007 . . . . 5 8 27 57 26 23 10 57 148 66 214

2008 . . . . 5 9 28 60 27 23 10 57 152 67 219

2009 . . . . 5 9 27 62 28 24 10 57 155 67 222

2010 . . . . 5 9 27 64 29 24 10 57 158 67 225

2011 . . . . 5 9 26 65 30 25 10 57 161 67 228

2012 . . . . 5 10 26 67 31 25 10 57 164 67 231

2013 . . . . 5 10 26 68 32 25 11 56 166 67 233

2014 . . . . 5 10 25 69 34 26 11 56 168 67 236

2015 . . . . 5 10 25 69 35 26 12 56 171 68 238

2016 . . . . 6 10 25 70 36 27 12 56 173 68 241

2017 . . . . 6 10 25 70 37 27 13 56 175 68 244

2018 . . . . 6 10 25 70 39 28 13 56 177 69 246

2019 . . . . 6 10 25 71 40 28 14 56 179 70 249

2020 . . . . 6 10 25 71 41 29 14 56 181 70 252

2021 . . . . 6 10 25 70 42 30 15 57 183 71 255

2022 . . . . 6 10 25 70 43 31 15 58 185 73 258

2023 . . . . 6 10 26 69 44 32 15 59 187 74 261

2024 . . . . 6 10 26 69 45 33 16 60 188 76 264

2025 . . . . 6 10 26 68 46 34 16 61 190 77 267

2026 . . . . 6 10 27 67 47 35 17 62 191 79 270

2027 . . . . 6 10 27 67 48 36 17 64 193 81 274

2028 . . . . 6 10 27 66 48 37 17 66 194 83 277

2029 . . . . 6 10 27 66 48 38 18 68 195 85 281

2030 . . . . 6 10 27 66 48 39 18 70 197 88 284
35

2006 SSI Annual Report

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

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B4.—SSI Federally-Administered Terminations Due to Reasons Other Than Death, Calendar Years 1974-2030

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 5 33 34 69 12 2 27 29 154 56 210

1975 . . . . 7 50 44 104 15 2 88 91 221 180 401

1976 . . . . 11 70 61 139 24 1 107 133 306 240 546

1977 . . . . 13 65 56 110 19 1 76 92 265 168 433

1978 . . . . 11 64 49 97 18 1 64 86 241 150 391

1979 . . . . 12 59 43 96 23 1 58 85 234 144 378

1980 . . . . 19 48 43 80 23 1 44 77 214 121 334

1981 . . . . 17 43 39 72 21 1 49 86 192 134 326

1982 . . . . 19 48 43 79 23 1 50 87 212 137 348

1983 . . . . 18 43 36 63 14 1 25 61 175 86 261

1984 . . . . 13 51 37 77 21 1 37 60 200 98 298

1985 . . . . 11 42 37 68 13 2 23 54 172 77 249

1986 . . . . 18 49 47 73 16 3 34 60 206 94 300

1987 . . . . 19 51 48 75 17 3 32 57 214 89 302

1988 . . . . 19 52 51 74 15 5 33 59 216 93 309

1989 . . . . 19 55 52 72 16 4 33 58 218 91 308

1990 . . . . 14 52 57 73 17 8 40 68 221 108 330

1991 . . . . 20 50 70 84 18 5 33 58 248 91 339

1992 . . . . 39 68 94 103 19 8 34 56 329 90 419

1993 . . . . 34 73 97 106 22 8 37 55 340 92 433

1994 . . . . 41 73 101 107 18 8 32 49 348 81 429

1995 . . . . 47 81 111 115 20 7 32 48 382 80 461

1996 . . . . 47 89 128 119 21 8 29 49 413 78 491

1997 . . . . 128 105 147 115 18 8 24 40 522 64 586

1998 . . . . 67 89 112 110 19 8 22 38 406 61 466

1999 . . . . 119 111 120 116 20 9 24 43 495 68 563

2000 . . . . 84 99 111 112 22 9 22 38 437 61 498

2001 . . . . 65 95 111 118 20 9 22 38 418 60 478

2002 . . . . 78 100 122 133 20 9 20 35 463 55 517

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

2004 . . . . 85 101 136 156 23 9 24 38 510 62 572

2005 . . . . 64 101 129 157 20 8 15 30 479 45 524

Projected:

2006 . . . . 61 96 130 168 22 9 18 32 486 50 536

2007 . . . . 71 99 123 166 21 9 19 32 489 51 540

2008 . . . . 77 106 123 172 21 10 20 32 508 52 560

2009 . . . . 77 110 123 178 22 10 20 32 520 52 572

2010 . . . . 81 114 121 182 22 10 20 33 529 54 583

2011 . . . . 76 119 118 182 23 10 21 34 530 55 585

2012 . . . . 73 122 117 182 25 10 22 35 528 57 585

2013 . . . . 73 126 116 184 25 10 23 35 534 58 593

2014 . . . . 74 128 115 187 27 11 24 35 542 59 601

2015 . . . . 74 130 115 189 28 11 25 35 546 59 606

2016 . . . . 74 127 115 190 29 11 26 35 547 60 607

2017 . . . . 75 128 116 191 30 11 27 35 552 61 613

2018 . . . . 75 129 117 191 31 11 27 35 554 62 616

2019 . . . . 75 130 117 191 32 12 29 35 556 63 620

2020 . . . . 75 131 116 191 33 12 30 35 558 65 623

2021 . . . . 75 132 117 190 34 12 30 36 560 66 626

2022 . . . . 75 132 117 188 34 13 31 37 561 68 629

2023 . . . . 75 133 119 187 35 13 32 38 562 70 631

2024 . . . . 76 132 120 185 36 14 32 39 563 71 634

2025 . . . . 76 132 122 183 36 14 33 40 563 73 636

2026 . . . . 76 132 123 181 37 15 34 41 564 75 639

2027 . . . . 77 132 124 180 37 15 34 42 565 77 642

2028 . . . . 77 133 125 179 37 16 35 44 567 79 645

2029 . . . . 77 134 125 178 37 16 35 45 568 80 648

2030 . . . . 77 134 126 179 37 17 35 47 570 82 652
2006 SSI Annual Report

36

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

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2030

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 5 36 42 103 19 4 67 126 209 193 402

1975 . . . . 8 55 56 140 25 3 127 199 287 326 613

1976 . . . . 13 75 71 174 35 3 141 236 371 377 748

1977 . . . . 14 71 68 140 34 3 112 194 330 305 636

1978 . . . . 14 70 58 130 34 3 94 181 308 276 584

1979 . . . . 13 65 52 128 41 2 88 177 301 265 566

1980 . . . . 22 53 52 111 45 2 70 177 284 248 532

1981 . . . . 20 48 47 103 45 3 69 177 266 246 512

1982 . . . . 21 52 51 107 43 2 65 168 277 233 510

1983 . . . . 21 49 44 87 34 4 39 140 240 180 419

1984 . . . . 16 55 46 106 39 6 50 144 267 194 461

1985 . . . . 13 47 47 97 37 8 40 138 249 178 427

1986 . . . . 21 58 59 101 38 11 48 143 287 192 478

1987 . . . . 22 59 61 106 40 13 47 138 301 185 486

1988 . . . . 24 60 65 105 39 18 49 140 311 189 500

1989 . . . . 22 63 69 105 39 15 47 136 312 183 496

1990 . . . . 18 61 75 109 39 22 56 144 324 200 524

1991 . . . . 25 60 90 123 40 22 50 132 360 182 542

1992 . . . . 42 78 115 140 41 23 50 125 440 175 614

1993 . . . . 40 86 124 148 45 24 54 127 467 181 648

1994 . . . . 47 87 128 148 41 24 48 118 475 166 642

1995 . . . . 54 94 142 158 44 25 47 113 517 160 677

1996 . . . . 54 101 158 163 45 27 45 116 548 161 710

1997 . . . . 133 116 172 159 43 26 39 105 648 143 792

1998 . . . . 73 98 136 153 44 29 36 102 533 138 671

1999 . . . . 124 120 146 161 45 31 38 106 626 144 770

2000 . . . . 89 107 138 159 46 29 35 99 569 134 703

2001 . . . . 70 103 139 166 45 31 34 98 554 132 685

2002 . . . . 83 108 150 182 44 30 31 93 598 124 722

2003 . . . . 76 104 149 186 46 30 31 92 591 122 713

2004 . . . . 90 109 163 208 48 31 34 93 650 127 777

2005 . . . . 69 109 157 211 45 30 24 84 621 107 728

Projected:

2006 . . . . 66 104 158 223 48 32 27 88 630 115 745

2007 . . . . 76 107 150 223 48 33 29 88 637 117 754

2008 . . . . 82 115 150 232 48 33 29 89 660 118 778

2009 . . . . 82 119 150 240 50 33 30 90 675 119 794

2010 . . . . 86 124 148 245 51 34 30 90 688 121 808

2011 . . . . 82 129 145 248 53 34 31 91 691 122 813

2012 . . . . 78 132 143 248 56 35 32 92 692 124 816

2013 . . . . 78 136 142 251 58 36 34 92 701 125 826

2014 . . . . 79 138 141 256 60 36 35 91 711 126 837

2015 . . . . 79 139 140 259 63 37 37 90 717 127 844

2016 . . . . 80 137 140 260 65 37 38 90 720 128 848

2017 . . . . 80 138 142 262 67 38 39 90 727 130 857

2018 . . . . 80 139 142 261 69 39 41 90 731 131 862

2019 . . . . 80 140 142 261 72 40 42 91 735 133 868

2020 . . . . 81 141 141 261 74 41 44 91 739 135 875

2021 . . . . 81 142 142 260 76 42 45 92 743 138 881

2022 . . . . 81 142 143 258 78 44 46 94 746 141 886

2023 . . . . 81 143 144 256 79 45 47 96 748 144 892

2024 . . . . 81 142 146 253 81 47 48 98 751 147 898

2025 . . . . 82 142 148 251 82 48 49 101 753 150 903

2026 . . . . 82 142 150 248 84 50 51 104 756 154 910

2027 . . . . 82 143 151 246 85 51 52 106 758 158 916

2028 . . . . 83 143 152 245 85 53 52 110 761 162 923

2029 . . . . 83 144 153 244 86 54 53 113 764 166 929

2030 . . . . 83 144 153 245 86 56 53 116 766 170 936
37

2006 SSI Annual Report

Combining the number of persons coming on the SSI payment rolls during a year with the number of those

already receiving benefits at the beginning of the year, and subtracting the number leaving the rolls during

the year, yields the number of persons receiving Federally-administered SSI payments at the end of the

specified period. Individuals receiving Federal SSI payments, who comprise the great majority of Federally-administered recipients, are presented in table IV.B6 and in figure IV.B4. The net effect of actual

experience in 2005 was that there were roughly 0.8 percent fewer Federal SSI recipients at the end of 2005

than estimated for the 2005 Annual Report.

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

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2030

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 70 338 321 756 109 13 1,010 1,019 1,606 2,029 3,635

1975 . . . . 106 395 352 838 164 14 963 1,062 1,869 2,025 3,893

1976 . . . . 124 420 352 813 208 14 864 1,003 1,932 1,867 3,799

1977 . . . . 147 442 358 800 249 16 785 980 2,013 1,765 3,778

1978 . . . . 165 460 361 791 277 16 728 958 2,069 1,686 3,755

1979 . . . . 176 472 359 764 307 16 656 938 2,094 1,593 3,687

1980 . . . . 188 500 351 750 342 17 609 925 2,149 1,533 3,682

1981 . . . . 194 514 349 720 366 17 541 888 2,160 1,430 3,590

1982 . . . . 191 517 346 683 386 21 459 871 2,144 1,329 3,473

1983 . . . . 198 555 366 692 412 28 449 890 2,250 1,339 3,590

1984 . . . . 210 595 393 700 406 48 463 884 2,352 1,347 3,699

1985 . . . . 226 634 426 717 402 72 462 860 2,477 1,322 3,799

1986 . . . . 240 688 475 739 397 91 465 827 2,630 1,291 3,922

1987 . . . . 249 717 524 756 392 113 464 804 2,751 1,268 4,019

1988 . . . . 254 738 564 774 387 127 468 777 2,844 1,245 4,089

1989 . . . . 263 757 613 799 382 145 488 760 2,959 1,247 4,206

1990 . . . . 306 788 677 840 389 156 508 749 3,156 1,257 4,412

1991 . . . . 395 833 769 897 390 166 542 736 3,451 1,279 4,730

1992 . . . . 555 920 877 970 402 173 577 727 3,898 1,304 5,202

1993 . . . . 721 990 979 1,034 410 179 604 720 4,312 1,324 5,636

1994 . . . . 839 1,032 1,071 1,089 425 182 610 716 4,638 1,326 5,965

1995 . . . . 915 1,058 1,150 1,134 435 188 601 713 4,880 1,315 6,194

1996 . . . . 954 1,066 1,198 1,176 444 192 586 711 5,029 1,296 6,326

1997 . . . . 878 1,039 1,196 1,198 457 193 547 704 4,960 1,251 6,212

1998 . . . . 885 1,038 1,238 1,243 464 197 521 705 5,063 1,226 6,289

1999 . . . . 845 1,005 1,274 1,278 474 195 499 704 5,072 1,203 6,275

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Historical Projected

75 or older

35-49

65-74

50-64

18-34

0-17
2006 SSI Annual Report

38

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Historical data: (Cont.)

2000 . . . . 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

2001 . . . . 879 995 1,329 1,353 493 196 461 703 5,245 1,165 6,410

2002 . . . . 912 1,002 1,344 1,394 502 200 447 705 5,354 1,152 6,505

2003 . . . . 956 1,023 1,353 1,436 511 204 430 703 5,482 1,133 6,614

2004 . . . . 990 1,044 1,350 1,476 515 208 412 699 5,584 1,111 6,695

2005 . . . . 1,034 1,065 1,347 1,523 522 215 408 705 5,706 1,113 6,819

Projected:

2006 . . . . 1,074 1,105 1,351 1,586 530 218 407 700 5,865 1,106 6,971

2007 . . . . 1,094 1,157 1,362 1,663 542 222 406 695 6,041 1,101 7,142

2008 . . . . 1,101 1,199 1,360 1,728 558 224 412 689 6,170 1,101 7,271

2009 . . . . 1,103 1,231 1,343 1,784 574 228 419 683 6,263 1,103 7,366

2010 . . . . 1,102 1,253 1,322 1,837 587 232 427 678 6,335 1,106 7,440

2011 . . . . 1,107 1,269 1,302 1,878 610 236 441 670 6,401 1,112 7,513

2012 . . . . 1,117 1,279 1,285 1,908 639 240 460 662 6,468 1,122 7,590

2013 . . . . 1,128 1,284 1,270 1,938 665 243 480 655 6,528 1,135 7,663

2014 . . . . 1,139 1,286 1,259 1,964 691 245 501 650 6,583 1,151 7,734

2015 . . . . 1,149 1,285 1,255 1,982 717 248 524 647 6,635 1,170 7,805

2016 . . . . 1,158 1,286 1,257 1,993 741 252 547 645 6,687 1,192 7,879

2017 . . . . 1,165 1,289 1,261 1,997 764 258 566 650 6,734 1,216 7,950

2018 . . . . 1,169 1,296 1,265 1,997 787 264 585 657 6,778 1,243 8,021

2019 . . . . 1,171 1,305 1,265 1,997 812 271 608 665 6,821 1,273 8,093

2020 . . . . 1,173 1,312 1,264 1,995 839 276 633 673 6,861 1,306 8,166

2021 . . . . 1,175 1,320 1,267 1,989 862 286 650 691 6,899 1,341 8,240

2022 . . . . 1,181 1,323 1,276 1,975 880 299 662 716 6,935 1,378 8,313

2023 . . . . 1,187 1,326 1,290 1,958 899 309 677 739 6,969 1,416 8,385

2024 . . . . 1,194 1,325 1,307 1,938 919 320 693 762 7,002 1,456 8,458

2025 . . . . 1,200 1,324 1,323 1,917 938 330 709 787 7,032 1,497 8,529

2026 . . . . 1,206 1,325 1,338 1,899 952 340 724 813 7,061 1,537 8,598

2027 . . . . 1,212 1,327 1,351 1,885 963 350 738 838 7,088 1,577 8,664

2028 . . . . 1,217 1,331 1,360 1,873 971 360 750 865 7,112 1,615 8,727

2029 . . . . 1,222 1,336 1,364 1,867 976 371 758 893 7,135 1,651 8,787

2030 . . . . 1,226 1,342 1,365 1,869 974 382 762 923 7,158 1,685 8,843

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

as of December, 1975-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2030 (Cont.)

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
39

2006 SSI Annual Report

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. Since

2000, the growth rate for the Federal SSI recipient population has averaged over 1.5 percent per year. Our

projections indicate that by 2010 we expect to gradually return to a modest growth rate of about 1 percent

per year over the remainder of the 25-year projection period. In order to place this projected growth in the

context of overall population growth, table IV.B7 and figure IV.B5 present Federal SSI recipients as percentages of selected Social Security Area population totals.

1 Blind or disabled recipients as a percentage of the total Social Security Area population.

2 Aged recipients as a percentage of the 65 or older Social Security Area population.

3 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations.

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

Selected Social Security Area Population Totals, as of December, 1974-2030 

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled1 Aged 2 All 3

Historical data:

1974 . . . . 0.10 0.55 0.89 2.29 0.77 0.14 7.18 11.26 0.72 8.77 1.63

1975 . . . . .15 .63 .97 2.51 1.14 .15 6.69 11.42 .83 8.55 1.73

1976 . . . . .18 .65 .96 2.42 1.41 .14 5.87 10.51 .85 7.70 1.67

1977 . . . . .22 .67 .96 2.36 1.66 .17 5.21 9.99 .88 7.10 1.65

1978 . . . . .25 .68 .95 2.32 1.80 .16 4.73 9.50 .89 6.62 1.62

1979 . . . . .27 .68 .94 2.23 1.96 .15 4.18 9.03 .90 6.11 1.58

1980 . . . . .29 .70 .90 2.19 2.14 .16 3.82 8.66 .91 5.76 1.56

1981 . . . . .30 .72 .87 2.10 2.26 .16 3.34 8.09 .91 5.26 1.50

1982 . . . . .29 .71 .83 2.00 2.34 .19 2.78 7.68 .89 4.77 1.44

1983 . . . . .30 .76 .84 2.03 2.46 .24 2.68 7.64 .92 4.71 1.47

1984 . . . . .32 .81 .88 2.06 2.39 .40 2.72 7.38 .96 4.65 1.50

1985 . . . . .35 .87 .92 2.11 2.32 .58 2.67 7.00 1.00 4.47 1.53

1986 . . . . .37 .94 .99 2.19 2.25 .72 2.63 6.57 1.05 4.27 1.56

1987 . . . . .38 .98 1.05 2.25 2.19 .87 2.59 6.22 1.09 4.12 1.59

1988 . . . . .38 1.00 1.09 2.30 2.14 .96 2.59 5.87 1.11 3.97 1.60

1989 . . . . .40 1.03 1.15 2.36 2.09 1.07 2.66 5.60 1.14 3.91 1.63

1990 . . . . .45 1.09 1.23 2.47 2.10 1.12 2.74 5.38 1.21 3.87 1.69

1991 . . . . .57 1.16 1.35 2.62 2.08 1.17 2.89 5.17 1.30 3.88 1.79

1992 . . . . .79 1.30 1.50 2.78 2.12 1.19 3.05 4.99 1.46 3.89 1.94

1993 . . . . 1.02 1.41 1.63 2.91 2.15 1.20 3.17 4.84 1.59 3.90 2.08

1994 . . . . 1.17 1.49 1.74 3.01 2.22 1.20 3.19 4.72 1.70 3.87 2.18

1995 . . . . 1.26 1.54 1.81 3.09 2.28 1.21 3.15 4.59 1.77 3.80 2.25

1996 . . . . 1.31 1.56 1.86 3.08 2.34 1.21 3.09 4.46 1.80 3.72 2.27

1997 . . . . 1.20 1.52 1.84 3.02 2.42 1.19 2.90 4.34 1.76 3.56 2.21

1998 . . . . 1.20 1.52 1.88 3.02 2.48 1.19 2.78 4.26 1.78 3.48 2.21

1999 . . . . 1.14 1.48 1.91 3.00 2.55 1.16 2.68 4.19 1.77 3.40 2.19

2000 . . . . 1.14 1.45 1.94 2.98 2.60 1.14 2.60 4.10 1.77 3.32 2.18

2001 . . . . 1.18 1.44 1.97 2.97 2.66 1.12 2.49 4.02 1.79 3.23 2.19

2002 . . . . 1.22 1.44 1.99 2.96 2.70 1.12 2.40 3.96 1.81 3.17 2.20

2003 . . . . 1.27 1.46 2.00 2.95 2.73 1.13 2.30 3.92 1.84 3.09 2.22

2004 . . . . 1.32 1.48 1.99 2.93 2.73 1.15 2.19 3.87 1.86 3.01 2.23

2005 . . . . 1.37 1.51 1.98 2.92 2.73 1.19 2.14 3.89 1.88 2.99 2.25

Projected:

2006 . . . . 1.42 1.56 1.99 2.94 2.72 1.20 2.09 3.86 1.92 2.94 2.28

2007 . . . . 1.45 1.62 2.02 2.99 2.70 1.22 2.02 3.83 1.96 2.88 2.32

2008 . . . . 1.46 1.66 2.03 3.02 2.68 1.24 1.98 3.80 1.99 2.83 2.34

2009 . . . . 1.46 1.69 2.03 3.03 2.67 1.26 1.95 3.77 2.00 2.79 2.35

2010 . . . . 1.45 1.70 2.01 3.03 2.66 1.28 1.94 3.73 2.01 2.75 2.36

2011 . . . . 1.46 1.71 2.00 3.04 2.64 1.29 1.91 3.67 2.01 2.69 2.36

2012 . . . . 1.47 1.71 1.99 3.05 2.62 1.30 1.89 3.61 2.02 2.62 2.37

2013 . . . . 1.48 1.71 1.98 3.06 2.60 1.31 1.88 3.54 2.02 2.58 2.37

2014 . . . . 1.48 1.71 1.96 3.06 2.59 1.31 1.88 3.48 2.02 2.54 2.37

2015 . . . . 1.49 1.71 1.95 3.06 2.58 1.31 1.88 3.41 2.02 2.50 2.38

2016 . . . . 1.49 1.71 1.94 3.06 2.57 1.31 1.89 3.34 2.02 2.47 2.38

2017 . . . . 1.50 1.71 1.94 3.06 2.56 1.30 1.90 3.28 2.02 2.45 2.39

2018 . . . . 1.50 1.71 1.94 3.05 2.56 1.30 1.90 3.23 2.02 2.43 2.39

2019 . . . . 1.50 1.71 1.94 3.05 2.54 1.30 1.90 3.18 2.02 2.41 2.40

2020 . . . . 1.50 1.72 1.93 3.04 2.53 1.29 1.91 3.14 2.02 2.39 2.40

2021 . . . . 1.50 1.72 1.93 3.03 2.53 1.28 1.91 3.10 2.01 2.38 2.40

2022 . . . . 1.50 1.72 1.94 3.03 2.54 1.28 1.91 3.06 2.01 2.37 2.41

2023 . . . . 1.50 1.72 1.94 3.03 2.53 1.27 1.91 3.03 2.01 2.37 2.42

2024 . . . . 1.51 1.72 1.95 3.02 2.53 1.26 1.91 3.01 2.00 2.36 2.42

2025 . . . . 1.51 1.72 1.95 3.02 2.53 1.25 1.91 2.99 2.00 2.36 2.43

2026 . . . . 1.51 1.72 1.95 3.01 2.52 1.24 1.92 2.97 2.00 2.36 2.43

2027 . . . . 1.51 1.72 1.96 3.01 2.51 1.23 1.93 2.96 1.99 2.36 2.44

2028 . . . . 1.51 1.72 1.96 3.00 2.50 1.22 1.93 2.94 1.99 2.37 2.44

2029 . . . . 1.51 1.73 1.96 3.00 2.49 1.21 1.94 2.93 1.98 2.37 2.44

2030 . . . . 1.52 1.73 1.96 2.99 2.49 1.21 1.94 2.91 1.98 2.38 2.45
2006 SSI Annual Report

40

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 1975 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 leveled out over the next few

years. It has increased slightly over the past few years 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, with the decline leveling off at the end of the projection period. In contrast, except for recent

decreases due to the eligibility redeterminations and continuing disability reviews mandated by Public

Law 104-193, the number of blind or disabled children receiving Federal SSI payments increased steadily

as a percentage of the under age 18 population, with the increase being quite steep in the early 1990s. The

total blind or disabled Federal SSI recipient population as a percentage of the total population remained

fairly level until the early 1980s when it started increasing and continued to increase through 1996. After

the modest decrease in the late 1990s due to the implementation of legislation described in other sections,

the number of blind or disabled persons receiving Federal SSI payments began a gradual increase as a percentage of the total population that is estimated to continue through 2008 and then level off at about 2 percent of the total population.

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B8.

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

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

0%

2%

4%

6%

8%

10%

12%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

0-17

18-34

35-49

50-64

65-74

75 or older

Total

Historical Projected
41

2006 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

The combined numbers of persons receiving either a Federal SSI payment or a Federally-administered

State supplement are displayed in table IV.B9.

In examining the recent history of SSI participation and the projections of such participation in the near

future, certain patterns are worth noting. The rapid increase in the total number of SSI participants in the

early 1990s is a function of the growth in the numbers of disabled adults and children. The growth in the

numbers of children receiving SSI resulted in large part from the Supreme Court decision in the case of

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

in Current-Payment Status as of December, 1974-2030

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1 12 20 57 13 1 138 120 104 257 361

1975 . . . . 1 15 25 74 21 2 144 138 139 282 421

1976 . . . . 1 14 27 87 26 2 134 146 156 280 437

1977 . . . . 1 16 27 94 35 2 136 150 174 286 460

1978 . . . . 1 16 26 93 41 2 127 155 180 282 462

1979 . . . . 1 18 25 89 49 2 121 157 184 278 462

1980 . . . . 2 20 26 82 52 2 112 162 185 274 460

1981 . . . . 1 19 26 75 58 2 94 155 181 248 429

1982 . . . . 1 18 23 68 53 2 82 137 165 219 384

1983 . . . . 1 17 19 50 44 4 65 111 136 176 312

1984 . . . . 1 18 23 50 47 7 68 116 147 184 331

1985 . . . . 1 21 28 53 45 8 67 115 157 182 339

1986 . . . . 1 23 31 55 45 11 66 116 166 182 348

1987 . . . . 1 26 36 60 43 12 72 115 178 187 366

1988 . . . . 1 26 42 59 44 14 74 114 187 188 375

1989 . . . . 2 28 45 60 45 16 76 115 195 192 387

1990 . . . . 2 31 54 60 44 17 82 116 208 197 405

1991 . . . . 2 29 54 59 42 17 78 108 203 186 389

1992 . . . . 2 29 55 59 37 16 70 97 197 167 364

1993 . . . . 2 29 58 59 34 15 64 88 197 151 348

1994 . . . . 2 28 59 56 32 14 59 81 192 139 331

1995 . . . . 3 25 59 56 32 14 54 77 188 131 320

1996 . . . . 2 21 54 53 29 13 49 68 172 116 288

1997 . . . . 2 20 55 53 29 13 46 65 172 111 283

1998 . . . . 2 18 54 55 28 13 43 63 171 106 277

1999 . . . . 2 18 57 58 28 13 43 62 177 105 282

2000 . . . . 2 17 57 60 29 13 42 61 179 103 282

2001 . . . . 2 17 56 62 29 12 41 59 179 100 278

2002 . . . . 3 17 57 64 30 12 42 58 183 100 283

2003 . . . . 3 18 58 67 30 12 42 58 188 100 288

2004 . . . . 3 18 58 70 31 12 43 58 193 100 293

2005 . . . . 3 18 56 73 31 12 44 58 193 102 295

Projected:

2006 . . . . 3 18 55 75 31 12 45 58 194 103 297

2007 . . . . 3 19 55 79 32 12 47 58 199 105 304

2008 . . . . 3 20 55 82 33 11 48 59 204 107 311

2009 . . . . 3 20 54 85 34 11 49 59 208 108 316

2010 . . . . 3 21 54 88 35 12 49 59 212 108 320

2011 . . . . 3 21 53 90 37 12 49 59 216 109 324

2012 . . . . 3 21 53 92 39 12 50 59 219 109 329

2013 . . . . 3 21 53 93 41 12 51 59 223 110 333

2014 . . . . 3 22 52 94 42 12 53 58 226 111 337

2015 . . . . 3 22 52 95 44 12 54 58 229 113 342

2016 . . . . 3 22 52 96 46 13 57 58 231 115 347

2017 . . . . 3 22 52 96 47 13 58 59 234 118 352

2018 . . . . 3 22 53 97 49 14 60 60 236 120 357

2019 . . . . 3 22 53 97 50 14 63 61 239 123 362

2020 . . . . 3 22 52 97 52 14 65 62 241 127 367

2021 . . . . 3 22 53 97 53 15 67 63 243 130 373

2022 . . . . 3 22 53 96 54 16 68 66 244 134 378

2023 . . . . 3 23 54 95 55 16 70 68 246 138 384

2024 . . . . 3 22 54 94 57 17 71 70 247 142 389

2025 . . . . 3 22 55 93 58 17 73 73 249 146 395

2026 . . . . 3 22 56 92 59 18 75 75 250 150 400

2027 . . . . 3 22 56 92 59 18 76 78 251 154 404

2028 . . . . 3 22 56 91 60 19 77 80 252 157 409

2029 . . . . 3 22 57 90 60 19 78 83 252 161 413

2030 . . . . 3 23 57 90 60 20 78 86 253 164 417
2006 SSI Annual Report

42

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 not completely

understood. However, extensive research conducted under contract to SSA and the Department of Health

and Human Services suggested that this growth was the result of a combination of factors including (1)

demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term structural changes in the economy, and (4) changes in other support programs (in particular the reduction or

elimination of general assistance programs in certain States). The recent modest changes in program participation reflects the combined effects of recent legislation described in previous sections, along with

changes in some of the factors mentioned above.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

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

as of December, 1974-2030

[In thousands]

Year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 71 349 341 813 122 14 1,148 1,138 1,710 2,286 3,996

1975 . . . . 107 410 378 911 185 16 1,107 1,200 2,007 2,307 4,314

1976 . . . . 125 434 379 900 234 15 999 1,149 2,088 2,148 4,236

1977 . . . . 147 458 385 893 284 18 921 1,130 2,187 2,051 4,238

1978 . . . . 166 476 387 884 319 17 855 1,113 2,249 1,968 4,217

1979 . . . . 177 490 384 852 357 17 777 1,095 2,278 1,872 4,150

1980 . . . . 190 521 377 833 393 20 721 1,086 2,334 1,808 4,142

1981 . . . . 195 533 375 795 424 19 635 1,043 2,341 1,678 4,019

1982 . . . . 192 535 369 751 439 23 541 1,008 2,309 1,549 3,858

1983 . . . . 198 572 386 742 456 32 514 1,001 2,386 1,515 3,901

1984 . . . . 212 613 417 751 453 54 531 999 2,499 1,530 4,029

1985 . . . . 227 655 454 769 447 80 530 975 2,634 1,504 4,138

1986 . . . . 241 711 506 794 442 102 531 942 2,796 1,473 4,269

1987 . . . . 251 743 560 816 436 124 536 920 2,930 1,455 4,385

1988 . . . . 255 764 606 833 431 142 543 891 3,030 1,433 4,464

1989 . . . . 265 785 658 859 427 160 564 875 3,154 1,439 4,593

1990 . . . . 309 819 731 900 432 172 589 865 3,363 1,454 4,817

1991 . . . . 397 863 823 956 432 183 620 845 3,654 1,465 5,118

1992 . . . . 556 949 932 1,029 440 189 647 824 4,095 1,471 5,566

1993 . . . . 723 1,019 1,036 1,093 445 194 667 808 4,509 1,475 5,984

1994 . . . . 841 1,060 1,130 1,146 457 196 669 797 4,830 1,466 6,296

1995 . . . . 917 1,083 1,209 1,190 467 202 656 790 5,068 1,446 6,514

1996 . . . . 955 1,087 1,252 1,229 472 205 634 778 5,201 1,413 6,614

1997 . . . . 880 1,059 1,251 1,252 486 205 593 770 5,133 1,362 6,495

1998 . . . . 887 1,056 1,292 1,298 492 209 564 768 5,234 1,332 6,566

1999 . . . . 847 1,024 1,331 1,336 503 208 543 765 5,249 1,308 6,557

2000 . . . . 847 1,011 1,360 1,373 513 209 525 764 5,312 1,289 6,602

2001 . . . . 882 1,012 1,385 1,415 522 209 502 762 5,424 1,264 6,688

2002 . . . . 915 1,019 1,401 1,458 532 212 489 763 5,536 1,252 6,788

2003 . . . . 959 1,040 1,410 1,503 541 216 471 761 5,670 1,233 6,902

2004 . . . . 993 1,062 1,408 1,546 546 221 455 756 5,777 1,211 6,988

2005 . . . . 1,036 1,083 1,404 1,596 553 228 452 763 5,900 1,214 7,114

Projected:

2006 . . . . 1,077 1,124 1,406 1,661 561 230 452 758 6,059 1,210 7,268

2007 . . . . 1,097 1,176 1,417 1,741 574 234 453 753 6,240 1,207 7,446

2008 . . . . 1,104 1,219 1,415 1,809 591 236 460 748 6,374 1,208 7,582

2009 . . . . 1,106 1,251 1,397 1,869 608 239 468 743 6,471 1,211 7,682

2010 . . . . 1,105 1,274 1,376 1,925 622 244 476 738 6,547 1,214 7,760

2011 . . . . 1,110 1,290 1,355 1,968 647 247 491 730 6,617 1,220 7,837

2012 . . . . 1,120 1,300 1,338 2,000 678 251 510 721 6,687 1,231 7,919

2013 . . . . 1,131 1,306 1,323 2,031 705 255 531 714 6,751 1,245 7,996

2014 . . . . 1,142 1,307 1,311 2,058 733 258 554 708 6,809 1,262 8,071

2015 . . . . 1,152 1,306 1,307 2,077 761 261 578 705 6,864 1,283 8,147

2016 . . . . 1,161 1,308 1,309 2,089 787 265 603 704 6,919 1,307 8,226

2017 . . . . 1,168 1,311 1,314 2,093 811 271 625 709 6,968 1,334 8,302

2018 . . . . 1,172 1,318 1,318 2,094 836 278 646 717 7,015 1,363 8,378

2019 . . . . 1,174 1,327 1,318 2,093 862 284 671 725 7,059 1,396 8,455

2020 . . . . 1,176 1,335 1,317 2,092 891 291 698 734 7,101 1,432 8,534

2021 . . . . 1,178 1,343 1,320 2,086 915 301 717 754 7,141 1,471 8,612

2022 . . . . 1,184 1,345 1,329 2,071 935 314 730 782 7,179 1,512 8,691

2023 . . . . 1,190 1,348 1,344 2,053 955 326 747 807 7,215 1,554 8,769

2024 . . . . 1,197 1,348 1,361 2,032 975 336 765 833 7,249 1,598 8,847

2025 . . . . 1,203 1,347 1,378 2,011 995 347 782 860 7,281 1,642 8,924

2026 . . . . 1,210 1,347 1,394 1,992 1,011 358 799 888 7,311 1,687 8,998

2027 . . . . 1,215 1,350 1,407 1,976 1,022 368 814 916 7,338 1,730 9,069

2028 . . . . 1,220 1,354 1,416 1,964 1,031 379 827 945 7,364 1,772 9,136

2029 . . . . 1,225 1,359 1,421 1,957 1,036 390 836 976 7,388 1,812 9,200

2030 . . . . 1,229 1,364 1,421 1,959 1,034 402 841 1,009 7,410 1,849 9,260
43

2006 SSI Annual Report

C. FEDERAL PAYMENTS UNDER SSI

In order to estimate future amounts of Federal expenditures under SSI, the projected Federal benefit rates

shown in table IV.A2 are first modified to reflect actual payment levels, taking into account historical and

projected levels of adjustments for other actual or deemed income. Combining these actual payment levels

with the projected numbers of persons receiving Federal SSI payments yields estimates of the amounts of

Federal SSI payments. Historical amounts of such payments on a calendar year basis are shown in table

IV.C1. For purposes of this presentation, these payment amounts are computed on a cash-flow basis consistent with the concepts used to define SSI obligations for the Federal Budget. As a result, for months

after January 1978, SSI payments due on the first of the month are tabulated in the previous month, if the

first of the month falls on a weekend or Federal holiday.1

1 Total historical payments for 1974-77 agree with those presented in the Annual Statistical Supplement to the Social Security Bulletin. Total historical payments for 1978-83 are estimated.

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

3 Partially estimated.

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Using this cash-flow concept causes these payments to differ from similar amounts shown in other Social

Security Administration publications, such as the Annual Statistical Supplement to the Social Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement are tabulated for

the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are

actually paid. In particular, since January 1 of each year is a Federal holiday, SSI payments due on

1 Public Law 95-216, the Social Security Amendments of 1977, enacted December 20, 1977, added a statutory requirement that SSI payments, which are

normally due on the first of the month, be delivered early when the normal delivery date falls on a Saturday, Sunday or Federal holiday. When the first of the

month falls on a weekend or Federal holiday, all payments due on that day are paid in the previous month. Payments presented on a cash-flow basis are tabulated according to the month in which they are actually paid.

Table IV.C1.—SSI Federal Payments in Current Dollars,1 Calendar Years 1974-2006

[In millions]

Calendar 

year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1974........... $40 $438 $452 $968 $135 $17 $825 $958 $2,050 $1,783 $3,833

1975........... 128 537 499 1,099 190 17 812 1,031 2,471 1,843 4,314

1976........... 176 605 541 1,147 241 17 762 1,023 2,727 1,785 4,512

1977........... 227 671 579 1,174 298 17 721 1,016 2,966 1,737 4,703

1978 2 ........ 302 781 655 1,312 381 18 736 1,111 3,449 1,847 5,296

1979........... 340 809 650 1,296 429 21 667 1,093 3,546 1,760 5,306

1980........... 397 931 731 1,420 544 28 642 1,230 4,051 1,872 5,923

1981........... 458 1,079 821 1,542 654 32 643 1,320 4,586 1,963 6,549

1982........... 512 1,211 883 1,590 704 38 630 1,364 4,937 1,994 6,931

1983........... 574 1,372 985 1,704 774 58 624 1,440 5,466 2,064 7,530

1984........... 659 1,576 1,128 1,835 836 102 670 1,512 6,136 2,182 8,318

1985........... 736 1,709 1,250 1,924 833 160 699 1,499 6,611 2,198 8,809

1986........... 831 1,929 1,452 2,043 848 209 731 1,479 7,312 2,210 9,522

1987........... 900 2,081 1,618 2,157 846 259 765 1,444 7,860 2,210 10,069

1988........... 955 2,228 1,818 2,303 874 304 814 1,449 8,481 2,263 10,744

1989........... 1,025 2,431 2,048 2,481 936 366 881 1,479 9,286 2,361 11,647

1990........... 1,201 2,660 2,395 2,792 969 407 987 1,532 10,423 2,519 12,943

1991........... 1,678 3,129 2,966 3,305 1,060 463 1,169 1,637 12,601 2,806 15,407

1992........... 3,154 3,900 3,577 3,790 1,124 487 1,303 1,690 16,033 2,993 19,026

1993........... 3,909 4,465 4,164 4,188 1,208 513 1,471 1,759 18,447 3,230 21,677

1994........... 4,167 4,504 4,666 4,533 1,274 538 1,566 1,814 19,682 3,380 23,063

1995........... 4,657 4,777 5,155 4,896 1,357 565 1,599 1,900 21,407 3,499 24,906

1996........... 4,947 5,004 5,614 5,298 1,427 590 1,643 1,977 22,880 3,621 26,501

1997........... 4,920 5,031 5,564 5,410 1,505 614 1,586 2,046 23,044 3,632 26,675

1998........... 4,965 5,150 5,901 5,777 1,588 635 1,542 2,136 24,017 3,678 27,695

1999........... 4,835 5,132 6,185 6,037 1,660 654 1,503 2,206 24,503 3,709 28,212

2000........... 4,789 5,121 6,404 6,293 1,717 675 1,470 2,309 24,999 3,779 28,778

2001........... 5,104 5,354 6,817 6,783 1,838 713 1,470 2,454 26,608 3,924 30,532

2002........... 5,353 5,484 7,048 7,131 1,909 738 1,433 2,520 27,663 3,953 31,616

2003........... 5,686 5,715 7,243 7,532 1,984 771 1,408 2,601 28,932 4,009 32,941

2004........... 6,036 5,954 7,384 7,943 2,054 809 1,366 2,657 30,179 4,023 34,202

2005........... 6,488 6,291 7,624 8,437 2,148 871 1,358 2,778 31,859 4,136 35,995

2006 3 ........ 6,941 6,755 7,835 9,076 2,264 928 1,396 2,893 33,799 4,290 38,089
2006 SSI Annual Report

44

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

the calendar year 2005 payment amounts shown in table IV.C1 reflect payments made in January-December, 2005, and include the payments due on January 1, 2006 (which were actually paid in December,

2005), but not the payments due on January 1, 2005 (which were actually paid in December, 2004). 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

1978-2006. Fiscal years prior to 1978 are omitted from table IV.C2 since historical SSI payment amounts

on a fiscal year basis for years prior to 1978 are not readily available. As with the calendar year figures,

these fiscal year amounts are shown on a cash-flow basis. Consequently, fiscal years 1979 and later may

contain 11, 12, or 13 months of payments, depending on whether October 1 of the current and succeeding

fiscal years falls on a weekend.2 Fiscal year 1978 contains 13 months of payments.

1 Payment due on October 1 of fiscal year paid in previous fiscal year.

2 Includes estimated payment due on October 1 of fiscal year 2007.

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 2006 payments include payments made from October 1, 2005 through September 30, 2006.

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 1978-2006

[In millions]

Fiscal

year

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1978 . . . . . . $206 $740 $668 $1,438 $312 $22 $772 $1,076 $3,386 $1,848 $5,234

1979 1 . . . . 226 711 620 1,265 331 20 656 954 3,172 1,610 4,782

1980 . . . . . . 372 877 698 1,360 506 26 629 1,184 3,840 1,813 5,653

1981 . . . . . . 442 1,039 797 1,508 625 31 647 1,307 4,442 1,954 6,396

1982 . . . . . . 499 1,181 861 1,570 693 36 640 1,356 4,840 1,996 6,836

1983 . . . . . . 596 1,416 1,024 1,783 806 56 660 1,510 5,680 2,170 7,850

1984 1 . . . . 588 1,411 1,005 1,665 760 85 613 1,391 5,514 2,004 7,517

1985 . . . . . . 713 1,662 1,215 1,895 828 145 691 1,502 6,459 2,193 8,652

1986 . . . . . . 800 1,864 1,386 1,995 840 196 723 1,487 7,080 2,209 9,290

1987 . . . . . . 880 2,030 1,565 2,119 845 242 755 1,448 7,681 2,203 9,884

1988 . . . . . . 1,009 2,356 1,898 2,425 932 316 860 1,559 8,935 2,419 11,354

1989 1 . . . . 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 1 . . . . 1,039 2,378 2,115 2,479 876 362 879 1,394 9,247 2,273 11,521

1991 . . . . . . 1,519 2,975 2,772 3,141 1,032 447 1,120 1,608 11,886 2,728 14,614

1992 . . . . . . 2,684 3,621 3,398 3,653 1,099 476 1,269 1,680 14,932 2,949 17,881

1993 . . . . . . 3,817 4,377 3,977 4,033 1,175 502 1,420 1,730 17,880 3,150 21,029

1994 . . . . . . 4,328 4,771 4,866 4,756 1,344 569 1,659 1,930 20,635 3,588 24,223

1995 1 . . . . 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 1 . . . . 4,543 4,595 5,123 4,830 1,305 540 1,510 1,808 20,936 3,317 24,254

1997 . . . . . . 4,933 5,004 5,529 5,340 1,478 606 1,602 2,027 22,890 3,629 26,519

1998 . . . . . . 4,915 5,114 5,816 5,688 1,567 630 1,548 2,110 23,729 3,658 27,387

1999 . . . . . . 4,901 5,152 6,123 5,975 1,638 648 1,506 2,180 24,438 3,685 28,123

2000 . . . . . . 5,152 5,500 6,827 6,692 1,822 718 1,599 2,453 26,710 4,052 30,763

2001 1 . . . . 4,597 4,869 6,170 6,125 1,670 652 1,352 2,236 24,083 3,588 27,671

2002 . . . . . . 5,290 5,456 6,998 7,041 1,889 731 1,444 2,500 27,405 3,944 31,349

2003 . . . . . . 5,558 5,623 7,170 7,390 1,957 759 1,417 2,572 28,456 3,989 32,445

2004 . . . . . . 5,910 5,868 7,327 7,797 2,031 796 1,380 2,638 29,729 4,018 33,748

2005 . . . . . . 6,856 6,669 8,150 8,928 2,282 916 1,463 2,945 33,800 4,409 38,208

2006 1, 2, 3 6,826 6,631 7,779 8,911 2,234 916 1,390 2,872 33,296 4,262 37,558
45

2006 SSI Annual Report

When projecting dollar amounts over longer periods of time, the changing value of the dollar due to inflation can make meaningful comparisons of such amounts difficult. For this reason, in projecting SSI expenditures for 25 years, some means of removing inflation is generally desirable. The Consumer Price Index

for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor Statistics and used to

determine annual increases in the SSI Federal benefit rate as described in table IV.A2, is an appropriate

means of standardizing projected SSI costs over time. Constant-dollar values of Federal SSI benefit payments (those adjusted by the CPI) are presented in table IV.C3 for both the historical period, calendar

years 1974-2005, and the full 25-year projection period, 2006-30. 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 2006 Dollars, Calendar Years 1975-2030

[In billions]

$0

$10

$20

$30

$40

$50

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Constant 2006 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older Historical Projected
2006 SSI Annual Report

46

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

Note: Totals do not necessarily equal the sums of rounded components. Historical split among age groups is estimated on a calendar year of age basis.

Table IV.C3.—SSI Federal Payments in Constant 2006 Dollars, Calendar Years 1974-2030

[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 . . . . $160 $1,733 $1,789 $3,834 $535 $69 $3,266 $3,793 $8,119 $7,059 $15,178

1975 . . . . 466 1,950 1,811 3,989 690 63 2,949 3,742 8,969 6,691 15,659

1976 . . . . 604 2,079 1,858 3,938 828 58 2,616 3,513 9,364 6,129 15,492

1977 . . . . 734 2,163 1,867 3,787 960 56 2,326 3,275 9,567 5,601 15,168

1978 1 . . . 905 2,337 1,960 3,928 1,142 54 2,203 3,327 10,326 5,529 15,855

1979 . . . . 913 2,175 1,747 3,482 1,154 56 1,791 2,937 9,528 4,729 14,256

1980 . . . . 941 2,205 1,732 3,364 1,289 66 1,521 2,914 9,597 4,435 14,032

1981 . . . . 985 2,318 1,764 3,314 1,406 68 1,381 2,837 9,854 4,218 14,073

1982 . . . . 1,039 2,454 1,789 3,222 1,427 77 1,276 2,765 10,007 4,041 14,048

1983 . . . . 1,129 2,700 1,938 3,353 1,523 114 1,228 2,833 10,757 4,061 14,818

1984 . . . . 1,253 2,997 2,145 3,489 1,589 193 1,274 2,875 11,666 4,149 15,815

1985 . . . . 1,352 3,139 2,296 3,535 1,531 294 1,284 2,753 12,147 4,038 16,184

1986 . . . . 1,503 3,489 2,626 3,695 1,533 378 1,321 2,674 13,224 3,996 17,220

1987 . . . . 1,570 3,632 2,825 3,765 1,477 452 1,336 2,521 13,722 3,857 17,579

1988 . . . . 1,604 3,743 3,054 3,868 1,468 511 1,368 2,434 14,249 3,802 18,051

1989 . . . . 1,643 3,894 3,280 3,974 1,500 586 1,412 2,370 14,876 3,781 18,657

1990 . . . . 1,828 4,050 3,647 4,251 1,475 619 1,503 2,332 15,870 3,836 19,705

1991 . . . . 2,454 4,576 4,338 4,833 1,551 676 1,709 2,394 18,428 4,104 22,532

1992 . . . . 4,482 5,543 5,084 5,387 1,597 692 1,852 2,402 22,785 4,254 27,038

1993 . . . . 5,403 6,171 5,755 5,788 1,670 709 2,033 2,431 25,496 4,464 29,960

1994 . . . . 5,621 6,076 6,294 6,115 1,718 726 2,113 2,447 26,550 4,559 31,109

1995 . . . . 6,106 6,262 6,759 6,419 1,779 741 2,097 2,491 28,066 4,588 32,654

1996 . . . . 6,305 6,378 7,155 6,752 1,819 752 2,095 2,520 29,161 4,615 33,775

1997 . . . . 6,131 6,269 6,934 6,742 1,875 765 1,976 2,549 28,717 4,526 33,243

1998 . . . . 6,106 6,334 7,257 7,105 1,953 781 1,897 2,626 29,536 4,523 34,059

1999 . . . . 5,819 6,176 7,443 7,266 1,998 787 1,809 2,655 29,487 4,464 33,951

2000 . . . . 5,569 5,954 7,447 7,318 1,996 785 1,709 2,685 29,069 4,394 33,464

2001 . . . . 5,777 6,060 7,716 7,678 2,080 807 1,664 2,778 30,120 4,442 34,562

2002 . . . . 5,977 6,123 7,869 7,962 2,131 824 1,600 2,814 30,887 4,413 35,300

2003 . . . . 6,211 6,242 7,912 8,228 2,167 843 1,538 2,841 31,604 4,378 35,982

2004 . . . . 6,425 6,338 7,860 8,455 2,186 861 1,454 2,828 32,126 4,283 36,408

2005 . . . . 6,674 6,472 7,844 8,680 2,210 896 1,397 2,858 32,777 4,255 37,032

Projected:

2006 . . . . 6,941 6,755 7,835 9,076 2,264 928 1,396 2,893 33,799 4,290 38,089

2007 . . . . 7,167 7,120 8,015 9,581 2,321 946 1,393 2,890 35,150 4,283 39,433

2008 . . . . 7,221 7,368 8,031 9,942 2,381 952 1,403 2,870 35,895 4,272 40,167

2009 . . . . 7,268 7,556 7,939 10,249 2,448 968 1,426 2,859 36,428 4,285 40,713

2010 . . . . 7,297 7,703 7,831 10,544 2,513 988 1,454 2,852 36,875 4,306 41,181

2011 . . . . 7,340 7,810 7,732 10,777 2,619 1,005 1,494 2,826 37,284 4,321 41,604

2012 . . . . 7,432 7,897 7,667 10,976 2,755 1,027 1,555 2,803 37,754 4,357 42,112

2013 . . . . 7,525 7,947 7,607 11,159 2,873 1,044 1,623 2,778 38,155 4,401 42,556

2014 . . . . 7,624 7,970 7,567 11,320 2,996 1,058 1,694 2,763 38,534 4,457 42,991

2015 . . . . 7,709 7,963 7,561 11,416 3,112 1,073 1,766 2,753 38,833 4,520 43,352

2016 . . . . 7,795 7,983 7,600 11,483 3,229 1,094 1,847 2,755 39,185 4,602 43,787

2017 . . . . 7,864 8,019 7,654 11,516 3,340 1,124 1,915 2,779 39,518 4,694 44,212

2018 . . . . 7,904 8,077 7,696 11,525 3,451 1,155 1,981 2,811 39,808 4,793 44,601

2019 . . . . 7,944 8,154 7,724 11,541 3,577 1,188 2,062 2,847 40,127 4,908 45,035

2020 . . . . 7,970 8,209 7,732 11,535 3,703 1,219 2,145 2,884 40,367 5,029 45,397

2021 . . . . 8,004 8,275 7,776 11,514 3,815 1,268 2,203 2,965 40,651 5,168 45,819

2022 . . . . 8,063 8,300 7,850 11,441 3,911 1,328 2,240 3,071 40,893 5,312 46,205

2023 . . . . 8,121 8,334 7,962 11,359 4,010 1,382 2,293 3,169 41,169 5,462 46,631

2024 . . . . 8,184 8,353 8,086 11,268 4,115 1,435 2,349 3,272 41,440 5,621 47,061

2025 . . . . 8,239 8,353 8,195 11,155 4,209 1,485 2,403 3,379 41,636 5,782 47,418

2026 . . . . 8,271 8,355 8,294 11,051 4,280 1,532 2,459 3,492 41,784 5,951 47,735

2027 . . . . 8,260 8,344 8,350 10,942 4,320 1,575 2,508 3,604 41,791 6,112 47,902

2028 . . . . 8,256 8,350 8,391 10,862 4,350 1,619 2,550 3,722 41,828 6,272 48,100

2029 . . . . 8,254 8,366 8,404 10,814 4,367 1,668 2,580 3,850 41,875 6,431 48,305

2030 . . . . 8,247 8,382 8,392 10,805 4,353 1,717 2,598 3,980 41,896 6,578 48,475
47

2006 SSI Annual Report

Although detailed projections of SSI State supplementary payments are not prepared, historical information on the amounts of such supplements is presented in tables IV.C4 and IV.C5. These amounts are consistent with those presented in the Annual Statistical Supplement to the Social Security Bulletin and are

shown only for the two broad recipient categories.

Note: Totals do not necessarily equal the sums of rounded components.

1 Data provided by individual States are partially estimated. In addition, a few States do not provide updated payment data in particular years. In those cases, data for the previous year are used.

2 Includes amounts not distributed by recipient category.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-2005

[In millions]

Calendar year Aged

Blind or

disabled Total

1974 ................................................ $631 $632 $1,264

1975 ................................................ 674 729 1,403

1976 ................................................ 635 753 1,388

1977 ................................................ 627 804 1,431

1978 ................................................ 636 855 1,491

1979 ................................................ 661 928 1,590

1980 ................................................ 757 1,091 1,848

1981 ................................................ 731 1,108 1,839

1982 ................................................ 694 1,104 1,798

1983 ................................................ 645 1,066 1,711

1984 ................................................ 645 1,148 1,792

1985 ................................................ 694 1,278 1,973

1986 ................................................ 759 1,484 2,243

1987 ................................................ 849 1,714 2,563

1988 ................................................ 873 1,798 2,671

1989 ................................................ 954 2,001 2,955

1990 ................................................ 1,038 2,201 3,239

1991 ................................................ 999 2,232 3,231

1992 ................................................ 1,023 2,412 3,435

1993 ................................................ 934 2,336 3,270

1994 ................................................ 876 2,240 3,116

1995 ................................................ 864 2,253 3,118

1996 ................................................ 833 2,155 2,988

1997 ................................................ 824 2,090 2,913

1998 ................................................ 838 2,165 3,003

1999 ................................................ 921 2,380 3,301

2000 ................................................ 943 2,439 3,381

2001 ................................................ 956 2,505 3,460

2002 ................................................ 1,051 2,768 3,820

2003 ................................................ 1,098 2,906 4,005

2004 ................................................ 1,133 3,045 4,178

2005 ................................................ 1,147 3,030 4,178

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2005

[In millions]

Calendar year Aged

Blind or

disabled Total 2

1974 ................................................ $89 $49 $149

1975 ................................................ 88 74 162

1976 ................................................ 88 77 166

1977 ................................................ 85 87 172

1978 ................................................ 91 88 180

1979 ................................................ 105 100 207

1980 ................................................ 117 106 226

1981 ................................................ 120 113 237

1982 ................................................ 125 119 276

1983 ................................................ 135 132 270

1984 ................................................ 141 152 299

1985 ................................................ 138 165 311

1986 ................................................ 147 185 340

1987 ................................................ 146 205 359

1988 ................................................ 150 224 381

1989 ................................................ 160 251 419

1990 ................................................ 177 281 466

1991 ................................................ 200 310 529

1992 ................................................ 216 323 550

1993 ................................................ 219 341 566

1994 ................................................ 225 354 585

1995 ................................................ 228 356 590

1996 ................................................ 225 307 539

1997 ................................................ 228 303 681

1998 ................................................ 259 429 808

1999 ................................................ 271 461 853

2000 ................................................ 283 488 893

2001 ................................................ 295 494 895

2002 ................................................ 283 507 911

2003 ................................................ 291 546 912

2004 ................................................ 266 521 895

2005 ................................................ 266 521 892
2006 SSI Annual Report

48

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 2007 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 2006 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 2030.

1 The total value of goods and services produced in the United States.

2 Public Law 104-121 and Public Law 104-193.

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

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
49

2006 SSI Annual Report

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

Table IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2030 

Calendar 

year

GDP

(In billions)

Blind or disabled, by age group Aged, by age group Totals

0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . $1,500 0.003 0.029 0.030 0.065 0.009 0.001 0.055 0.064 0.137 0.119 0.256

1975 . . . . 1,638 .008 .033 .030 .067 .012 .001 .050 .063 .151 .112 .263

1976 . . . . 1,825 .010 .033 .030 .063 .013 .001 .042 .056 .149 .098 .247

1977 . . . . 2,031 .011 .033 .029 .058 .015 .001 .036 .050 .146 .086 .232

1978 . . . . 2,295 .013 .034 .029 .057 .017 .001 .032 .048 .150 .080 .231

1979 . . . . 2,563 .013 .032 .025 .051 .017 .001 .026 .043 .138 .069 .207

1980 . . . . 2,790 .014 .033 .026 .051 .020 .001 .023 .044 .145 .067 .212

1981 . . . . 3,128 .015 .034 .026 .049 .021 .001 .021 .042 .147 .063 .209

1982 . . . . 3,255 .016 .037 .027 .049 .022 .001 .019 .042 .152 .061 .213

1983 . . . . 3,537 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 . . . . 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .211

1985 . . . . 4,220 .017 .040 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 . . . . 4,463 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .213

1987 . . . . 4,739 .019 .044 .034 .046 .018 .005 .016 .030 .166 .047 .212

1988 . . . . 5,104 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .211

1989 . . . . 5,484 .019 .044 .037 .045 .017 .007 .016 .027 .169 .043 .212

1990 . . . . 5,803 .021 .046 .041 .048 .017 .007 .017 .026 .180 .043 .223

1991 . . . . 5,996 .028 .052 .049 .055 .018 .008 .019 .027 .210 .047 .257

1992 . . . . 6,338 .050 .062 .056 .060 .018 .008 .021 .027 .253 .047 .300

1993 . . . . 6,657 .059 .067 .063 .063 .018 .008 .022 .026 .277 .049 .326

1994 . . . . 7,072 .059 .064 .066 .064 .018 .008 .022 .026 .278 .048 .326

1995 . . . . 7,398 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 . . . . 7,817 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 . . . . 8,304 .059 .061 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 . . . . 8,747 .057 .059 .067 .066 .018 .007 .018 .024 .275 .042 .317

1999 . . . . 9,268 .052 .055 .067 .065 .018 .007 .016 .024 .264 .040 .304

2000 . . . . 9,817 .049 .052 .065 .064 .017 .007 .015 .024 .255 .038 .293

2001 . . . . 10,128 .050 .053 .067 .067 .018 .007 .015 .024 .263 .039 .301

2002 . . . . 10,470 .051 .052 .067 .068 .018 .007 .014 .024 .264 .038 .302

2003 . . . . 10,971 .052 .052 .066 .069 .018 .007 .013 .024 .264 .037 .300

2004 . . . . 11,734 .051 .051 .063 .068 .018 .007 .012 .023 .257 .034 .291

2005 . . . . 12,485 .052 .050 .061 .068 .017 .007 .011 .022 .255 .033 .288

Projected:

2006 . . . . 13,191 .053 .051 .059 .069 .017 .007 .011 .022 .256 .033 .289

2007 . . . . 13,886 .053 .052 .059 .071 .017 .007 .010 .021 .259 .032 .290

2008 . . . . 14,620 .052 .053 .058 .071 .017 .007 .010 .021 .258 .031 .288

2009 . . . . 15,366 .051 .053 .056 .072 .017 .007 .010 .020 .256 .030 .286

2010 . . . . 16,141 .050 .053 .054 .072 .017 .007 .010 .020 .253 .030 .283

2011 . . . . 16,937 .049 .053 .052 .073 .018 .007 .010 .019 .251 .029 .280

2012 . . . . 17,748 .049 .052 .051 .072 .018 .007 .010 .019 .249 .029 .278

2013 . . . . 18,544 .049 .052 .049 .072 .019 .007 .011 .018 .248 .029 .276

2014 . . . . 19,378 .049 .051 .048 .072 .019 .007 .011 .018 .246 .028 .275

2015 . . . . 20,274 .048 .050 .047 .072 .020 .007 .011 .017 .244 .028 .272

2016 . . . . 21,216 .048 .049 .047 .071 .020 .007 .011 .017 .242 .028 .270

2017 . . . . 22,190 .048 .049 .046 .070 .020 .007 .012 .017 .240 .028 .268

2018 . . . . 23,204 .047 .048 .046 .069 .021 .007 .012 .017 .237 .029 .266

2019 . . . . 24,262 .047 .048 .045 .068 .021 .007 .012 .017 .235 .029 .264

2020 . . . . 25,369 .046 .047 .045 .066 .021 .007 .012 .017 .233 .029 .262

2021 . . . . 26,507 .045 .047 .044 .065 .022 .007 .012 .017 .230 .029 .260

2022 . . . . 27,696 .045 .046 .044 .064 .022 .007 .012 .017 .228 .030 .258

2023 . . . . 28,926 .045 .046 .044 .062 .022 .008 .013 .017 .226 .030 .256

2024 . . . . 30,211 .044 .045 .044 .061 .022 .008 .013 .018 .224 .030 .254

2025 . . . . 31,536 .044 .044 .044 .059 .022 .008 .013 .018 .222 .031 .252

2026 . . . . 32,918 .043 .044 .043 .058 .022 .008 .013 .018 .219 .031 .250

2027 . . . . 34,362 .043 .043 .043 .056 .022 .008 .013 .019 .216 .032 .247

2028 . . . . 35,879 .042 .042 .043 .055 .022 .008 .013 .019 .213 .032 .244

2029 . . . . 37,466 .041 .042 .042 .054 .022 .008 .013 .019 .209 .032 .242

2030 . . . . 39,112 .041 .041 .041 .053 .021 .008 .013 .020 .206 .032 .239
2006 SSI Annual Report

50

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

AND BENEFICIARY SERVICES COSTS

The SSI program is administered by the Social Security Administration. Section 201(g)(1) of the Social

Security Act provides that administrative expenses for the SSI program, including Federal administration

of State supplementation payments, may be financed from the OASDI Trust Funds. The trust funds are

reimbursed from the General Fund of the Treasury for any such SSI administrative expenditures. These

reimbursements include adjustments for any interest losses the trust funds may have incurred as a result of

such expenditures. The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving SSA the responsibility for the SSI

program because of its existing field office network and its administrative and automated data processing

facilities. Because of the integration of the administration of the SSI and OASDI programs, it was desirable to fund them from a single source, with reimbursement to the trust funds based on a Government

Accountability Office-approved method of cost analysis of the respective expenses of the SSI and OASDI

programs, and a final settlement by the end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected administrative costs of the SSI program.

1 This activity funds the reimbursement to the OASI and DI Trust Funds from the General Fund of the

Treasury for the SSI program’s share of SSA’s administrative expenses, as well as reimbursements from participating States for SSA’s administration of the SSI State Supplementation Program.

2 Includes payments to State Vocational Rehabilitation (VR) agencies and Employment Networks for VR

services and payments under the Ticket to Work program. Payments for referral and monitoring services for

Drug Addicts and Alcoholics are also included through December 1996. These payments were terminated

effective January 1997. The increase in the estimate for fiscal year 2006 reflects an assumption that State

budgets will continue to improve, enabling the States to restore some lost vocational rehabilitation service

capacity and serve a greater number of SSI beneficiaries.

3 Reflects a one-time payment to State VR agencies for prior year expenses.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2006

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1 Beneficiary

services 2

1978.................................................................. $539 $31.6

1979.................................................................. 611 57.0

1980.................................................................. 668 33.1

1981.................................................................. 717 37.3

1982.................................................................. 780 12.0

1983.................................................................. 846 8.0

1984.................................................................. 864 3 84.0

1985.................................................................. 956 3.0

1986.................................................................. 1,023 7.2

1987.................................................................. 977 9.5

1988.................................................................. 976 12.9

1989.................................................................. 1,052 20.0

1990.................................................................. 1,075 28.3

1991.................................................................. 1,230 33.1

1992.................................................................. 1,426 36.0

1993.................................................................. 1,468 32.3

1994.................................................................. 1,780 33.8

1995.................................................................. 1,978 48.2

1996.................................................................. 1,953 71.8

1997.................................................................. 2,055 77.3

1998.................................................................. 2,304 46.0

1999.................................................................. 2,493 52.0

2000.................................................................. 2,321 53.7

2001.................................................................. 2,397 43.9

2002.................................................................. 2,522 54.0

2003.................................................................. 2,656 37.0

2004.................................................................. 2,806 38.6

2005.................................................................. 2,795 30.4

2006 (estimated)............................................... 2,850 76.0
51

2006 SSI Annual Report

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of

correcting lenses, or with tunnel vision of 20 degrees or less. An individual

transferred from a State Aid to the Blind (AB) program to SSI is eligible if he/

she received such State aid in December 1973 and continues to meet the October 1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment expected

to result in death or that has lasted or can be expected to last for a continuous

period of at least 12 months. For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred

from a State Aid to the Permanently and Totally Disabled (APTD) program to

SSI is also eligible if he/she received such State aid in December 1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls in

December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973 must

meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at the

substantial gainful activity level may continue to receive a special benefit under

section 1619 and retain eligibility for Medicaid under title XIX of the Social

Security Act. This special benefit status may continue as long as the recipient

has the disabling impairment and meets all nondisability SSI eligibility criteria.

States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December

31, 1983. Beginning in January 1984, under a 1-year demonstration project, this

provision was continued for persons already eligible for either regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments are made

permanent. The provisions were amended effective July 1, 1987, with significant modifications to simplify administration and to allow free movement

between regular SSI disability payments and either the special cash benefit or

Medicaid eligibility under section 1619. The distinction between a disabled person eligible for regular SSI payments and one eligible for 1619(a) is that the latter has several months with gross earnings above the SGA level. Previously,

section 1619(a) status required completion of a trial work period and the determination that the work was SGA.
2006 SSI Annual Report

52

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

2006

Public Law 109-171, 

enacted February 8

Requires the Commissioner to conduct reviews of a specific percentage of SSI

initial disability and blindness cases involving individuals aged 18 and older

that are allowed by State Disability Determination Service agencies (DDS). The

provision is phased in as follows—for fiscal year 2006, the Commissioner is

required to review 20 percent of DDS allowances; in fiscal year 2007, the

requirement is 40 percent; and, for fiscal years 2008 and thereafter, 50 percent

of all DDS allowances are required to be reviewed. These reviews are to be

made before the allowance decision is implemented.

2. Other Eligibility Provisions

a. Citizenship and U.S. Residency

1972

Public Law 92-603, 

enacted October 30

The individual must reside within one of the 50 States or the District of Columbia and be a citizen or an alien lawfully admitted for permanent residence or

permanently residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such

a month.

1976

Public Law 94-241, 

enacted March 24

Eligibility for SSI is extended to residents of the Northern Mariana Islands,

effective January 9, 1978.

1980

Public Law 96-265, 

enacted June 9

The income and resources of the immigration sponsors of aliens applying for

SSI are considered in determining eligibility for and the amount of payment.

After allowances for the needs of the sponsor and his/her family, the remainder

is deemed available for the support of the alien applicant for a 3-year period

after admission to the United States for permanent residence. This provision

does not apply to those who become blind or disabled after admission, to refugees, or to persons granted political asylum. (See section 2.g. for subsequent

changes to sponsor-to-alien deeming provisions.)

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.
53

2006 SSI Annual Report

Act

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.

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.”
2006 SSI Annual Report

54

Act

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.

b. Other Benefits

1980

Public Law 96-272, 

enacted June 17

SSI applicants and recipients are not required as a condition of eligibility to

elect to receive Veterans Administration pensions under the Veterans and Survivors’ Pension Improvement Act of 1978 if the State of residence lacks a medically-needy program under title XIX.

c. Drug Addiction and Alcoholism (DA&A)

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and

terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies

and Federal, State, or local government agencies in representative payee selection. These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$50 (adjusted annually after 1995 by the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State is

required.
55

2006 SSI Annual Report

Act

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.

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.
2006 SSI Annual Report

56

Act

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.

1980

Public Law 96-265, 

enacted June 9

Disabled SSI recipients who medically recover while enrolled in approved

vocational rehabilitation programs of State VR agencies, may continue to

receive benefits during their participation in such programs if the Commissioner

of Social Security determines that continuation in the program will increase the

probability that they leave the rolls permanently.

1981

Public Law 97-35, 

enacted August 13

Funding no longer provided under title XVI for medical, social, developmental

and rehabilitative services to disabled or blind children.

Reimbursement for the cost of rehabilitation services will be made only if the

services result in the recipient’s return to work for a continuous period of

9 months. The work must be at the substantial gainful activity earnings level.

1984

Public Law 98-460, 

enacted October 9

Authorizes the reimbursement of States for the cost of VR services provided to

individuals who (1) continue to receive benefits after medical recovery because

they are participating in a State VR program or (2) refuse, without good cause,

to continue in or cooperate with the VR program in which they had been participating.

1987

Public Law 100-203, 

enacted December 22

Extends the provision for continuation of payments to disabled SSI recipients

who have medically recovered while enrolled in an approved vocational rehabilitation program to include blind SSI recipients.

1990

Public Law 101-508, 

enacted November 5

Reimbursement authorized for the cost of vocational rehabilitation services provided in months in which the individual was not receiving Federal SSI payments, if:

 • SSI recipient status for Medicaid eligibility purposes was retained under

work incentive provisions, or 

 • Benefits were in suspense 1 status (for a reason other than cessation of disability or blindness), or

 • Federally-administered State supplementation was received.

Extends benefit continuation provision to disabled SSI recipients who medically

recover while participating in a non-State VR program.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
57

2006 SSI Annual Report

Act

1999

Public Law 106-170, 

enacted December 17

Establishes a Ticket to Work and Self-Sufficiency program which will provide

SSI (and OASDI) disability beneficiaries with a ticket that can be used to obtain

vocational rehabilitation services, employment services, or other support services, from an employment network (EN) of their choice.

An EN chooses one of the two EN payment options at the time it submits an

application to SSA to become an EN. The chosen payment system will apply to

all beneficiaries served. An EN can elect to receive payment under the:

 • Outcome payment system, under which it can receive payment for up to 60

outcome payment months; or

 • Outcome-milestone payment system, under which it can receive payment

for up to four milestones (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.
2006 SSI Annual Report

58

Act

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.

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.
59

2006 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Deeming of income and resources from an immigration sponsor to a noncitizen

continues until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor

signs a new legally enforceable affidavit of support.

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.

2006

Public Law 109-163, 

enacted January 6

Provides that individuals who were made ineligible for SSI because of their

spouses or parents being called to active military duty would not have to file a

new application for SSI benefits if they again could be eligible for benefits

before the end of 24 consecutive months of ineligibility.

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.
2006 SSI Annual Report

60

Act

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.

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, which occurs 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.
61

2006 SSI Annual Report

Act

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.

g. Installment Payments

1996

Public Law 104-193, 

enacted August 22

Establishes a schedule for paying retroactive SSI benefit amounts that exceed 12

times the FBR plus the State supplement level. Payments would be made at

6-month intervals:

 • The first installment would be 12 times the FBR plus any Federally administered State supplement.

 • Any remaining retroactive benefits would be paid in a second installment

(not to exceed the first payment amount).

 • All remaining retroactive benefits would be paid in the third installment.

Provides that where an underpaid individual has incurred debts to provide for

food, clothing or shelter, has expenses for disability-related items and services

that exceed the installment amount, or has entered into a contract to purchase a

home, the installment payment would be increased by the amount needed to

cover those debts, expenses and obligations.

Provides that full retroactive payments be paid to an individual who is terminally ill or, if currently ineligible, is likely to remain so for the next 12 months.

2006

Public Law 109-171, 

enacted February 8

Requires that past-due monthly SSI benefits that exceed three times the maximum monthly benefit (Federal benefit rate plus State supplementary payment

amount, if any) payable to the individual be paid in up to three installment payments, 6 months apart. Also, limits the amount of the first two installment payment to three times the maximum monthly benefit. All remaining benefits due

are to be paid in the third installment. As under current law, the amounts of the

installment payments may be increased in certain cases, such as those in which

the individual has outstanding debt relating to food, clothing, or shelter, or has

necessary medical needs.

Effective 3 months after February 8, 2006.
2006 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 are eligible for 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

2006 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.
2006 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

2006 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.
2006 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.

2005

Public Law 109-64, 

enacted September 20

Amends the National Flood Insurance Act of 1968 to specify that assistance

provided under a program for flood mitigation activities with respect to a property would not be considered income or a resource of the owner of the property

when determining eligibility for or benefit levels under any income assistance or

resource-tested program (including SSI) that is funded in whole or in part by a

Federal agency or by appropriated Federal funds.

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.
67

2006 SSI Annual Report

Act

1984

Public Law 98-369, 

enacted July 18

Limit on countable resources raised by $100 a year for individuals and $150 a

year for couples, beginning in calendar year 1985 through 1989. The respective

limits would become $2,000 for an individual and $3,000 for a couple in 1989

and thereafter.

1999

Public Law 106-169, 

enacted December 14

Includes generally in the countable resources of an individual the assets of a

trust which could be used for the benefit of the individual or spouse.

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

A home of reasonable value—established by regulation as not exceeding a fairmarket value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding

a market value of $1,200.

An automobile may be excluded, regardless of value, if the individual’s household uses it for employment or medical treatment, or if it is modified to be operated by or for transportation of a person with a disability.

Life insurance with face value of $1,500 or less.

1976

Public Law 94-569, 

enacted October 20

The recipient’s home, regardless of value, is excluded from consideration in

determining resources.

1977

Public Law 95-171, 

enacted November 12

Assistance received under the Disaster Relief and Emergency Assistance Act of

1974 for 9 months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market value; personal goods and household effects increased to $2,000 of

equity value.

1982

Public Law 97-248, 

enacted September 3

The value, within prescribed limits, of a burial space for the recipient, spouse,

and immediate family is excluded. In addition, $1,500 each (less the value of

already excluded life insurance and any amount in an irrevocable burial arrangement) may be set aside for the burial of the recipient and spouse.

1984

Public Law 98-369, 

enacted July 18

The unspent portion of any retroactive title II or title XVI payment is excluded

for 6 months following its receipt, and the individual must be given written

notice of the time limit on the exclusion.

1985 Regulations permit exclusion, regardless of value, of an automobile needed for

essential transportation or modified for a person with a disability. The $4,500

current market value limit applies only if no automobile could be excluded

based on the nature of its use.

1987

Public Law 100-203, 

enacted December 22

Provides for suspension of the 1980 transfer of assets provision, in any month

that it is determined that undue hardship would result.
2006 SSI Annual Report

68

Act

Real property that cannot be sold for the following reasons: it is jointly owned;

its sale would cause the other owner(s) undue hardship due to loss of housing;

its sale is barred by a legal impediment; or, the owner’s reasonable efforts to sell

have been unsuccessful.

Temporarily extends the 1984 exclusion of retroactive title II and title XVI benefits from 6 months to 9 months (the longer exclusion applies to benefits paid in

fiscal years 1988 and 1989).

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

2004

Public Law 108-203, 

enacted March 2

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

resources amounts attributable to payments of past-due Social Security and SSI

benefits and earned income and child tax credits. Effective for such payments

received on or after the date of enactment.

2005 Regulations permit exclusion, regardless of value, of:

 • One automobile if used for transportation for the beneficiary or a member

of the beneficiary’s household; and

 • Personal goods and household effects.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Assets of a blind or disabled individual that are necessary to an approved plan of

self-support.

Tools and other property essential to self-support (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Specifies that no limitation can be placed on property essential to self-support

used in a trade or business, or by an individual as an employee (including the

tools of a tradesperson and the machinery and livestock of a farmer).

Payments from the Agent Orange Settlement.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit excluded for the month following the month the credit

is received.

Payments received from a State-administered fund established to aid victims of

crime excluded for a 9-month period. Individual not required to file for such

benefits.
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2006 SSI Annual Report

Act

Payments received as State or local government relocation assistance

excluded for a 9-month period. (The provision expired 3 years after its effective

date.)

Payments received under the Radiation Exposure Compensation Act.

1993

Public Law 103-66, 

enacted August 10

Makes permanent the 9-month exclusion of payments received as State or local

government relocation assistance.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.

1996

Public Law 104-193, 

enacted August 22

Dedicated financial institution accounts required to be established for large pastdue benefits for disabled individuals under age 18 with a representative payee.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Funds deposited by an individual in an individual development account and the

interest on those funds.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit in the month of receipt and in the following

month.

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.
2006 SSI Annual Report

70

Act

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.

7. Presumptive and Emergency Payments and Interim Assistance

Reimbursement

a. Presumptive Payments

1972

Public Law 92-603, 

enacted October 30

A person applying on the basis of disability who meets all other criteria of eligibility, and is likely to be disabled, may receive payments for 3 months pending

the disability determination.

1976

Public Law 94-569, 

enacted October 20

Presumptive payment provision was extended to persons applying on the basis

of blindness.

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.

b. Emergency Advance Payments

1972

Public Law 92-603, 

enacted October 30

Any applicant who can be presumed to meet the criteria of eligibility, but has

not yet been determined eligible, and who is faced with a financial emergency

may receive an immediate cash advance of up to $100.

1987

Public Law 100-203, 

enacted December 22

Increases the maximum emergency advance payment amount to the maximum

amount of the regular Federal SSI monthly benefit rate, plus, if any, the Federally-administered State supplementary payment.

1996

Public Law 104-193, 

enacted August 22

Applicants who have a financial emergency may receive an emergency advance

payment in the month of application, which, effective with this law, is always

prior to the first month of eligibility. These advance payments are recouped by

proportional reductions in the recipient’s first 6 months of SSI benefits.

c. Interim Assistance Reimbursement

1974

Public Law 93-368, 

enacted August 7

SSA may enter into agreements with the States to repay them directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The repayment is made from the first check due to the individual. This

legislation expires June 30, 1976.

1976

Public Law 94-365, 

enacted July 14

The authority to repay the State for interim assistance is made permanent.
71

2006 SSI Annual Report

Act

1987

Public Law 100-203, 

enacted December 22

Extends interim assistance reimbursement to situations in which payments are

made by States or political subdivisions to persons whose SSI payments were

suspended or terminated and who subsequently are found to be eligible for such

benefits. Also clarifies that the payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim

period.

8. Medicaid Eligibility

1972

Public Law 92-603, 

enacted October 30

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the

State Medicaid plan in effect on January 1, 1972.

States can accept SSA determination of eligibility, or make their own determination.

1976

Public Law 94-566, 

enacted October 20

Preserves the Medicaid eligibility of recipients who become ineligible for cash

SSI payments due to the cost-of-living increases in Social Security benefits.

1980

Public Law 96-265, 

enacted June 9

Blind or disabled recipients under age 65 no longer eligible for either regular or

special SSI payments because of their earnings may retain SSI recipient status

for Medicaid eligibility purposes under the following conditions: (1) they continue to have the disabling impairment, (2) they meet all nondisability eligibility

criteria except for earned income, (3) they would be seriously inhibited from

continuing employment without Medicaid services, and (4) their earnings are

insufficient to provide a reasonable equivalent of SSI payments and Medicaid.

In States that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid benefits depends on the State’s specific eligibility and program requirements.

The Medicaid provision of the 1980 legislation was in effect from January 1,

1981, through December 31, 1983. Under a 1-year demonstration project,

beginning January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.

1984

Public Law 98-460, 

enacted October 9

Medicaid provision of 1980 legislation extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-272, 

enacted April 7

Restores Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI when their title II benefits increased in 1984 because of a change in

the Social Security disabled widow(er)s benefits reduction factor.
2006 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.

2006

Public Law 109-171, 

enacted February 8

Begins Medicaid coverage for children who are eligible for SSI effective the

month the SSI application is filed or the first month of SSI eligibility, whichever

is later. (Under prior law, Medicaid eligibility for such children began the month

following the month of the SSI application or first eligibility.)
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2006 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.
2006 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

2006 SSI Annual Report

Act

1999

Public Law 106-169, 

enacted December 14

Makes a representative payee liable for an SSI overpayment caused by a payment made to the representative payee on behalf of a recipient, after the recipient’s death 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. 
2006 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 $1,460 per month but not more than $5,910 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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2006 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 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;

 • Assistance received under a program for flood mitigation activities;

 • 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;
2006 SSI Annual Report

78

 • Interest or other earnings on a dedicated account excluded from resources;

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • TANF funds made available to an SSI recipient as part of an individual development account (IDA);

 • Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the “Assets for Independence Act” IDA demonstration project and

interest earned on these deposits; 

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416; and

 • All interest and dividend income earned on countable resources.

3. Resource Exclusions

 • The home (including the land appertaining thereto);

 • Household goods and personal effects;

 • One automobile if used for transportation for the beneficiary or a member of the beneficiary’s household;

 • Property of a trade or business which is essential to the means of self-support;

 • Nonbusiness property which is essential to the means of self-support;

 • Resources of a blind or disabled individual which are necessary to fulfill an approved plan for achieving self-support;

 • Stock in regional or village corporations held by natives of Alaska during the 20-year period in which

the stock is inalienable pursuant to the Alaska Native Claims Settlement Act;

 • Life insurance owned by an individual (and spouse, if any) provided that all life insurance on any person does not exceed a face value of $1,500;

 • Restricted allotted Indian lands;

 • Disaster relief assistance;

 • Assistance received under a program for flood mitigation activities;

 • 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

2006 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.
2006 SSI Annual Report

80

C. HISTORICAL ALLOWANCE DATA

At the end of 2005, 83 percent of SSI recipients were receiving benefits based on a determination of disability. Claims are filed at a local Social Security office and claims requiring an evaluation of disability are

sent to the State Disability Determination Services (DDS) for a decision. Initial DDS decisions that are

unfavorable to the applicant may be appealed. Until recently, all appeals were initiated at the DDS level

with a request for reconsideration of that initial denial. Persons denied at the reconsideration level could

then apply to the Office of Disability Adjudication and Review (ODAR), formerly known as 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 ODAR, thereby eliminating the reconsideration step. The options for appeal

beyond the ODAR 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 ODAR case control data. 

The process used to build this research file is cumbersome, involving about 200 steps, and generally

requiring 2 to 4 months to complete. Much of this complexity flows from the fact that the file is assembled

based on filing date cohorts, even though many of the source files do not contain a filing date. The three

most recent calendar year cohorts are completely reassembled from the basic data sources. Older calendar

year cohorts are updated to reflect activity since the last time the file was built. Since the process is so time

consuming, the research file is updated only annually (usually beginning in July). Therefore, research file

data are not yet available for claims filed in 2005.

Methods used for estimating results (through February 2006) for claims filed in 2005—Although decision

counts are available for 2005 filers (from many of the “source” files), those counts do not translate directly

into the claims/appeals counts included in the following tables, due to the consolidation of multiple transactions (and application of claims-based tolerance rules) which occurs when the research file is built.

To prepare preliminary estimates of results (through February 2006) for 2005 filers, we started from the

latest available transaction data, such as the SSA-831 data, and took into account recent years’ experience
81

2006 SSI Annual Report

of the relationship between corresponding earlier transaction data and the resulting claims/appeals data in

completed research files. Estimates of ODAR appeals activity are taken from a file which tracks individual

claimants, rather than individual claims. Therefore, this may result in a slight undercount of ODAR activity. 

While we believe that the methods used are reasonable, it must be emphasized that the resulting estimates

may prove to be of limited reliability, especially in light of the fact that the estimates give results only

through February 2006, whereas the final research files will reflect information through June 2006. Actual

data for 2005 will be available to replace these estimates in the 2007 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2004 filers are as of June 2005. Results for those years’ filers have been updated to

include ODAR results through July 2005. 

 • Data for 2005 filers are preliminary estimates as of February 2006, and reflect larger numbers of

claims still pending. February 2006 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 ODAR 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.
2006 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 1,216,182 — 365,932 30.1 850,250 69.9 355,165 41.8

2002 1,322,683 — 371,233 28.1 951,450 71.9 398,582 41.9

2003 1,403,363 — 377,623 26.9 1,025,740 73.1 421,904 41.1

2004 1,475,758 21,886 376,224 25.9 1,077,648 74.1 387,875 36.0

2005 1,471,994 255,997 365,887 30.1 850,110 69.9 247,422 29.1

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,816 68.4 — 139,698 63.0 82,118

1992 — 58,819 13.6 374,425 260,554 69.6 — 159,084 61.1 101,470

1993 — 57,938 11.9 427,228 294,801 69.0 — 170,402 57.8 124,399

1994 — 55,822 11.6 426,711 293,448 68.8 — 164,537 56.1 128,911

1995 — 51,697 11.8 387,469 264,270 68.2 — 143,582 54.3 120,688

1996 — 49,263 12.1 357,162 242,298 67.8 — 133,269 55.0 109,029

1997 — 47,573 13.4 306,561 213,666 69.7 — 121,462 55.8 96,069

1998 — 46,507 13.7 292,272 204,910 70.1 2,024 115,057 56.6 88,340

1999 — 42,135 13.3 274,269 194,644 71.0 2,735 118,253 56.9 89,487

2000 — 39,522 14.3 237,714 170,264 71.6 4,788 124,250 56.2 96,925

2001 — 38,987 13.9 241,200 172,082 71.3 10,883 132,153 56.0 104,024

2002 — 40,290 12.9 271,278 193,416 71.3 39,114 136,345 56.5 104,971

2003 — 40,049 12.0 292,761 203,866 69.6 142,224 87,144 57.8 63,592

2004 40,616 27,383 10.4 236,099 147,556 62.5 201,576 18,354 61.7 11,403

2005 53,743 16,102 11.8 120,373 58,221 48.4 108,582 5,052 73.8 1,791

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1988 946,603 — 946,603 393,003 — 553,600

1989 969,218 — 969,218 425,718 — 543,500

1990 1,099,805 — 1,099,805 508,976 — 590,829

1991 1,288,331 — 1,288,331 614,191 — 674,140

1992 1,415,624 — 1,415,624 654,791 — 760,833

1993 1,503,278 — 1,503,278 644,640 — 858,638

1994 1,436,958 — 1,436,958 574,354 — 862,604

1995 1,318,416 — 1,318,416 518,363 — 800,053

1996 1,247,926 — 1,247,926 487,883 — 760,043

1997 1,110,898 — 1,110,898 461,874 — 649,024

1998 1,108,957 — 1,108,957 484,298 2,024 622,635

1999 1,104,975 — 1,104,975 486,995 2,735 615,245

2000 1,139,571 — 1,139,571 507,935 4,788 626,848

2001 1,216,182 — 1,216,182 537,072 10,883 668,227

2002 1,322,683 — 1,322,683 547,868 39,114 735,701

2003 1,403,363 — 1,403,363 504,816 142,224 756,323

2004 1,475,758 21,886 1,453,872 421,961 242,192 789,719

2005 1,471,994 255,997 1,215,997 387,041 162,325 666,631
83

2006 SSI Annual Report

1 Data for claims filed in 1988-2004 reflect results as of June 2005 at the DDS level and as of July 2005 at the ODAR level. The numbers of total claims

filed for 2002-04 are subject to change. Data for claims filed in 2005 are preliminary estimates as of February 2006. 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 ODAR.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to ODAR, as well as beyond ODAR to the Federal courts. 6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to ODAR from the Federal courts. 8 Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

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

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1988 — 41.5 — 58.5 41.5 — 58.5

1989 — 43.9 — 56.1 43.9 — 56.1

1990 — 46.3 — 53.7 46.3 — 53.7

1991 — 47.7 — 52.3 47.7 — 52.3

1992 — 46.3 — 53.7 46.3 — 53.7

1993 — 42.9 — 57.1 42.9 — 57.1

1994 — 40.0 — 60.0 40.0 — 60.0

1995 — 39.3 — 60.7 39.3 — 60.7

1996 — 39.1 — 60.9 39.1 — 60.9

1997 — 41.6 — 58.4 41.6 — 58.4

1998 — 43.7 0.2 56.1 43.7 0.2 56.1

1999 — 44.1 .2 55.7 44.1 .2 55.7

2000 — 44.6 .4 55.0 44.6 .4 55.0

2001 — 44.2 .9 54.9 44.2 .9 54.9

2002 — 41.4 3.0 55.6 41.4 3.0 55.6

2003 — 36.0 10.1 53.9 36.0 10.1 53.9

2004 1.5 28.6 16.4 53.5 29.0 16.7 54.3

2005 17.4 26.3 11.0 45.3 31.8 13.3 54.8
2006 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 367,751 — 151,288 41.1 216,463 58.9 49,089 22.7

2002 402,130 — 163,772 40.7 238,358 59.3 55,863 23.4

2003 425,671 — 171,531 40.3 254,140 59.7 59,216 23.3

2004 436,201 5,020 172,184 39.9 258,997 60.1 53,872 20.8

2005 423,915 62,075 157,275 43.5 204,565 56.5 32,846 16.1

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,770 49.6 — 7,523 38.1 12,247

1993 — 11,338 14.9 64,629 31,193 48.3 — 10,638 34.1 20,555

1994 — 11,332 12.3 80,761 38,433 47.6 — 12,954 33.7 25,479

1995 — 10,287 11.8 76,554 35,592 46.5 — 10,924 30.7 24,668

1996 — 9,355 12.5 65,658 27,915 42.5 — 8,850 31.7 19,065

1997 — 8,266 16.2 42,705 18,900 44.3 — 7,024 36.2 12,401

1998 — 7,799 15.6 42,237 18,843 44.6 168 7,022 37.5 11,728

1999 — 7,196 15.5 39,377 17,934 45.5 247 7,804 37.7 12,895

2000 — 6,932 18.3 31,051 14,428 46.5 423 8,861 36.6 15,330

2001 — 6,807 18.7 29,643 13,576 45.8 908 9,119 36.0 16,188

2002 — 7,426 17.9 34,024 15,329 45.1 4,019 9,247 35.9 16,476

2003 — 7,626 17.0 37,133 16,091 43.3 15,165 5,568 36.2 9,815

2004 4,925 5,685 15.9 30,161 11,709 38.8 21,964 1,283 45.1 1,563

2005 6,177 2,476 13.5 15,809 4,708 29.8 12,568 164 31.3 360

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1991 250,962 — 250,962 157,709 — 93,253

1992 372,971 — 372,971 206,065 — 166,906

1993 496,131 — 496,131 234,244 — 261,887

1994 525,013 — 525,013 196,505 — 328,508

1995 487,730 — 487,730 165,442 — 322,288

1996 453,473 — 453,473 145,621 — 307,852

1997 332,032 — 332,032 121,818 — 210,214

1998 335,732 — 335,732 138,070 168 197,494

1999 342,153 — 342,153 143,543 247 198,363

2000 349,288 — 349,288 152,782 423 196,083

2001 367,751 — 367,751 167,214 908 199,629

2002 402,130 — 402,130 180,445 4,019 217,666

2003 425,671 — 425,671 184,725 15,165 225,781

2004 436,201 5,020 431,181 179,152 26,889 225,140

2005 423,915 62,075 361,840 159,915 18,745 183,180
85

2006 SSI Annual Report

1 Data for claims filed in 1991-2004 reflect results as of June 2005 at the DDS level and as of July 2005 at the ODAR level. The numbers of total claims

filed for 2002-04 are subject to change. Data for claims filed in 2005 are preliminary estimates as of February 2006. 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 ODAR.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to ODAR, as well as beyond ODAR to the Federal courts. 6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to ODAR from the Federal courts. 8 Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

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

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1991 — 62.8 — 37.2 62.8 — 37.2

1992 — 55.2 — 44.8 55.2 — 44.8

1993 — 47.2 — 52.8 47.2 — 52.8

1994 — 37.4 — 62.6 37.4 — 62.6

1995 — 33.9 — 66.1 33.9 — 66.1

1996 — 32.1 — 67.9 32.1 — 67.9

1997 — 36.7 — 63.3 36.7 — 63.3

1998 — 41.1 0.1 58.8 41.1 0.1 58.8

1999 — 42.0 .1 58.0 42.0 .1 58.0

2000 — 43.7 .1 56.1 43.7 .1 56.1

2001 — 45.5 .2 54.3 45.5 .2 54.3

2002 — 44.9 1.0 54.1 44.9 1.0 54.1

2003 — 43.4 3.6 53.0 43.4 3.6 53.0

2004 1.2 41.1 6.2 51.6 41.5 6.2 52.2

2005 14.6 37.7 4.4 43.2 44.2 5.2 50.6
2006 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 completed during the fiscal year due to administrative resource

limitations and the impact of other workload requirements on the field offices. When redeterminations

cannot be completed in the fiscal year scheduled, they are carried over into the next fiscal year. Table

V.D1 provides historical data on numbers of redeterminations completed by fiscal year. 

1 Decrease in number of redeterminations completed in fiscal

year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

2 Effective fiscal year 1995, approximately 200,000 fewer redeterminations were selected annually due to a change from a 3-year

to a 6-year redetermination cycle for low-error profile cases.

3 Fewer redeterminations were selected in fiscal year 2005 due to

limitations on administrative funding.

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 2005, SSA released over 800,000 limited issue cases for development by field offices.

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the Social

Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at

Table V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2005

[In thousands] 

Fiscal year

Number of

redeterminations

1986 . . . . . . . . . . . . . . . . . . . . . . . . 2,278

1987 . . . . . . . . . . . . . . . . . . . . . . . . 2,244

1988 . . . . . . . . . . . . . . . . . . . . . . . . 1,997

1989 . . . . . . . . . . . . . . . . . . . . . . . . 2,226

1990 . . . . . . . . . . . . . . . . . . . . . . . . 2,103

1991 . . . . . . . . . . . . . . . . . . . . . . . . 2,138

1992 . . . . . . . . . . . . . . . . . . . . . . . . 2,321

1993 . . . . . . . . . . . . . . . . . . . . . . . . 2,223

1994 . . . . . . . . . . . . . . . . . . . . . . . . 1 1,900

1995 . . . . . . . . . . . . . . . . . . . . . . . . 2 1,597

1996 . . . . . . . . . . . . . . . . . . . . . . . . 1,763

1997 . . . . . . . . . . . . . . . . . . . . . . . . 1,773

1998 . . . . . . . . . . . . . . . . . . . . . . . . 1,853

1999 . . . . . . . . . . . . . . . . . . . . . . . . 2,122

2000 . . . . . . . . . . . . . . . . . . . . . . . . 2,182

2001 . . . . . . . . . . . . . . . . . . . . . . . . 2,316

2002 . . . . . . . . . . . . . . . . . . . . . . . . 2,311

2003 . . . . . . . . . . . . . . . . . . . . . . . . 2,450

2004 . . . . . . . . . . . . . . . . . . . . . . . . 2,279

2005 . . . . . . . . . . . . . . . . . . . . . . . . 31,725
87

2006 SSI Annual Report

least every 3 years. A similar requirement was not put in place at that time for disabled title XVI recipients. Although the Committee on Finance of the Senate stated in its report on this legislation that the same

continuing disability review (CDR) procedures should be applied with respect to both the title II and

title XVI programs, title XVI was not amended to accomplish this. Section 1614(a)(4) of the Act gives

SSA discretionary authority to conduct periodic CDRs on SSI recipients. On September 28, 1994, SSA

issued a Federal Register notice that periodic SSI CDRs would begin on October 1, 1994. In 1994 and

again in 1996 legislation was enacted adding some mandates for the performance of CDRs under the SSI

program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required to

conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA was

required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who reached age

18 after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child recipients who reach age 18, with such redetermination being based on the adult eligibility criteria. This law

also added the requirement that a CDR be performed:

 • At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted

in the deferral of full medical reviews for 345,402 cases for which a scheduled title XVI CDR was processed in fiscal year 2005.

For cases involving individuals who receive both title II and title XVI benefits, CDRs are typically initiated as title II CDRs with the results of the review affecting eligibility for benefits under both programs.

Tables V.D2 and V.D3 present the latest available summary of results1 on CDRs of title XVI recipients

performed under titles II and XVI since 1993. These tables include only cases for which a full medical

review was conducted. In particular they do not include:

 • Cases for which a mailer was completed, but for which a full medical review was deferred;

 • CDRs initiated as the result of work activity on the part of the beneficiary/recipient; and

 • Miscellaneous other CDRs processed by the State Disability Determination Services but not as part of

the normal CDR scheduling process (such as voluntary and third-party reports of medical improvement, post-transplant end-stage renal disease cases, and vocational rehabilitation reports).

In contrast with the allowance data presented in section V.C, the CDR data is tabulated on a cohort basis

by the date of initial decision.

1 The numbers of SSI recipients whose benefits are ceased as a result of CDRs are included in these tables. Estimates of Federal SSI program savings

resulting from the cessation of benefits are reported to Congress in the Annual Report of Continuing Disability Reviews. The most recent such report was

issued October 17, 2005, presenting estimates of the effects of CDRs conducted in fiscal year 2004.
2006 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 7,344 68.5

1998 81,185 68,533 84.4 12,652 15.6 8,723 68.9

1999 80,816 70,353 87.1 10,463 12.9 6,202 59.3

2000 105,787 93,962 88.8 11,825 11.2 6,853 58.0

2001 110,341 99,666 90.3 10,675 9.7 6,305 59.1

2002 103,947 92,069 88.6 11,878 11.4 7,139 60.1

2003 72,175 63,021 87.3 9,154 12.7 5,488 60.0

2004 84,622 75,047 88.7 9,575 11.3 5,964 62.3

2005 80,597 70,687 87.7 9,910 12.3 5,849 59.0

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,277 76.4 1,010 23.6 665 65.8

1996 55,025 46,273 84.1 8,752 15.9 6,146 70.2

1997 69,557 57,662 82.9 11,895 17.1 8,722 73.3

1998 75,071 64,829 86.4 10,242 13.6 7,239 70.7

1999 140,429 125,079 89.1 15,350 10.9 10,293 67.1

2000 173,470 156,065 90.0 17,405 10.0 10,929 62.8

2001 143,902 126,610 88.0 17,292 12.0 10,293 59.5

2002 172,527 150,837 87.4 21,690 12.6 13,457 62.0

2003 213,212 191,061 89.6 22,151 10.4 14,804 66.8

2004 221,129 199,938 90.4 21,191 9.6 14,810 69.9

2005 110,072 97,330 88.4 12,742 11.6 7,805 61.3

Total reviews, SSI disabled adults

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 21,023 15,761 75.0 5,262 25.0 3,570 67.8

1996 81,909 66,909 81.7 15,000 18.3 10,265 68.4

1997 121,023 98,403 81.3 22,620 18.7 16,066 71.0

1998 156,256 133,362 85.3 22,894 14.7 15,962 69.7

1999 221,245 195,432 88.3 25,813 11.7 16,495 63.9

2000 279,257 250,027 89.5 29,230 10.5 17,782 60.8

2001 254,243 226,276 89.0 27,967 11.0 16,598 59.3

2002 276,474 242,906 87.9 33,568 12.1 20,596 61.4

2003 285,387 254,082 89.0 31,305 11.0 20,292 64.8

2004 305,751 274,985 89.9 30,766 10.1 20,774 67.5

2005 190,669 168,017 88.1 22,652 11.9 13,654 60.3
89

2006 SSI Annual Report

Table V.D2.—SSI Disabled Adult Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,245 42.9 1,660 1,007 60.7 — 382 37.9 625

1996 — 1,875 45.5 2,244 1,313 58.5 — 427 32.5 886

1997 — 4,297 58.5 3,047 2,257 74.1 — 973 43.1 1,284

1998 — 5,503 63.1 3,220 2,466 76.6 — 1,158 47.0 1,308

1999 1 3,974 64.1 2,227 1,542 69.2 — 679 44.0 863

2000 5 4,427 64.6 2,421 1,558 64.4 2 658 42.3 898

2001 19 4,178 66.5 2,108 1,237 58.7 — 491 39.7 746

2002 66 4,788 67.7 2,285 1,497 65.5 84 564 39.9 849

2003 94 3,571 66.2 1,823 1,187 65.1 275 361 39.6 551

2004 300 3,674 64.9 1,990 1,264 63.5 807 181 39.6 276

2005 1,346 3,099 68.8 1,404 664 47.3 593 31 43.7 40

Title XVI initiated reviews

1993 — — — — — — — — — —

1994 — — — — — — — — — —

1995 — 241 36.2 424 267 63.0 — 87 32.6 180

1996 — 3,289 53.5 2,857 1,946 68.1 — 623 32.0 1,323

1997 — 5,271 60.4 3,451 2,575 74.6 — 986 38.3 1,589

1998 — 4,527 62.5 2,712 1,987 73.3 — 781 39.3 1,206

1999 1 6,610 64.2 3,682 2,511 68.2 3 971 38.7 1,537

2000 6 6,823 62.5 4,100 2,779 67.8 2 1,055 38.0 1,722

2001 33 6,224 60.7 4,036 2,627 65.1 14 924 35.4 1,689

2002 154 8,161 61.3 5,142 3,416 66.4 158 1,045 32.1 2,213

2003 206 9,641 66.0 4,957 3,414 68.9 696 921 33.9 1,797

2004 508 9,278 64.9 5,024 3,441 68.5 2,076 472 34.6 893

2005 1,374 4,424 68.8 2,007 958 47.7 839 27 22.7 92

Total reviews, SSI disabled adults

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,486 41.6 2,084 1,274 61.1 — 469 36.8 805

1996 — 5,164 50.3 5,101 3,259 63.9 — 1,050 32.2 2,209

1997 — 9,568 59.6 6,498 4,832 74.4 — 1,959 40.5 2,873

1998 — 10,030 62.8 5,932 4,453 75.1 — 1,939 43.5 2,514

1999 2 10,584 64.2 5,909 4,053 68.6 3 1,650 40.7 2,400

2000 11 11,250 63.3 6,521 4,337 66.5 4 1,713 39.5 2,620

2001 52 10,402 62.9 6,144 3,864 62.9 14 1,415 36.8 2,435

2002 220 12,949 63.6 7,427 4,913 66.2 242 1,609 34.4 3,062

2003 300 13,212 66.1 6,780 4,601 67.9 971 1,282 35.3 2,348

2004 808 12,952 64.9 7,014 4,705 67.1 2,883 653 35.8 1,169

2005 2,720 7,523 68.8 3,411 1,622 47.6 1,432 58 30.5 132
2006 SSI Annual Report

90

1 Data reflect results as of February 2006. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 The status and disposition of cases in the Federal courts are not reflected here. However, for cases remanded by the courts to the Office of Disability Adjudication and Review, the status and disposition at ODAR are included. The excluded experience in the Federal courts has a minimal impact on the number of

continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Less than 0.05 percent.

Table V.D2.—SSI Disabled Adult Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of February 2006

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 16,736 14,111 — 2,625 84.3 — 15.7

1996 26,884 22,938 — 3,946 85.3 — 14.7

1997 51,466 46,011 — 5,455 89.4 — 10.6

1998 81,185 75,194 — 5,991 92.6 — 7.4

1999 80,816 75,006 1 5,809 92.8 6/ 7.2

2000 105,787 99,047 7 6,733 93.6 6/ 6.4

2001 110,341 104,335 19 5,987 94.6 6/ 5.4

2002 103,947 97,421 150 6,376 93.7 0.1 6.1

2003 72,175 66,953 369 4,853 92.8 .5 6.7

2004 84,622 78,902 1,107 4,613 93.2 1.3 5.5

2005 80,597 73,817 1,939 4,841 91.6 2.4 6.0

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,605 — 682 84.1 — 15.9

1996 55,025 50,185 — 4,840 91.2 — 8.8

1997 69,557 63,919 — 5,638 91.9 — 8.1

1998 75,071 70,137 — 4,934 93.4 — 6.6

1999 140,429 132,660 4 7,765 94.5 6/ 5.5

2000 173,470 163,943 8 9,519 94.5 6/ 5.5

2001 143,902 133,758 47 10,097 93.0 .6/ 7.0

2002 172,527 160,043 312 12,172 92.8 .2 7.1

2003 213,212 201,623 902 10,687 94.6 .4 5.0

2004 221,129 209,688 2,584 8,857 94.8 1.2 4.0

2005 110,072 101,781 2,213 6,078 92.5 2.0 5.5

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 121,023 109,930 — 11,093 90.8 — 9.2

1998 156,256 145,331 — 10,925 93.0 — 7.0

1999 221,245 207,666 5 13,574 93.9 6/ 6.1

2000 279,257 262,990 15 16,252 94.2 6/ 5.8

2001 254,243 238,093 66 16,084 93.6 6/ 6.3

2002 276,474 257,464 462 18,548 93.1 .2 6.7

2003 285,387 268,576 1,271 15,540 94.1 .4 5.4

2004 305,751 288,590 3,691 13,470 94.4 1.2 4.4

2005 190,669 175,598 4,152 10,919 92.1 2.2 5.7
91

2006 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

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 3,640 31.6

1999 9,773 4,114 42.1 5,659 57.9 1,639 29.0

2000 10,178 4,566 44.9 5,612 55.1 1,565 27.9

2001 9,086 4,152 45.7 4,934 54.3 1,408 28.5

2002 12,732 5,869 46.1 6,863 53.9 1,989 29.0

2003 7,283 3,516 48.3 3,767 51.7 1,036 27.5

2004 12,060 6,075 50.4 5,985 49.6 1,795 30.0

2005 13,710 6,540 47.7 7,170 52.3 2,032 28.3

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 16,741 63.4

1998 40,945 21,453 52.4 19,492 47.6 10,915 56.0

1999 49,557 27,413 55.3 22,144 44.7 10,881 49.1

2000 51,713 28,863 55.8 22,850 44.2 11,034 48.3

2001 48,944 28,167 57.5 20,777 42.5 10,095 48.6

2002 54,947 32,388 58.9 22,559 41.1 11,692 51.8

2003 53,905 31,862 59.1 22,043 40.9 11,873 53.9

2004 53,232 31,890 59.9 21,342 40.1 11,678 54.7

2005 55,331 31,434 56.8 23,897 43.2 12,500 52.3

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 13,267 55.4

1999 183,211 129,420 70.6 53,791 29.4 28,419 52.8

2000 140,699 106,583 75.8 34,116 24.2 17,036 49.9

2001 95,835 72,896 76.1 22,939 23.9 11,896 51.9

2002 163,768 130,434 79.6 33,334 20.4 18,139 54.4

2003 127,444 100,522 78.9 26,922 21.1 15,028 55.8

2004 103,437 80,748 78.1 22,689 21.9 12,915 56.9

2005 61,387 45,597 74.3 15,790 25.7 8,343 52.8

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 17,565 60.5

1998 149,722 94,748 63.3 54,974 36.7 27,822 50.6

1999 242,541 160,947 66.4 81,594 33.6 40,939 50.2

2000 202,590 140,012 69.1 62,578 30.9 29,635 47.4

2001 153,865 105,215 68.4 48,650 31.6 23,399 48.1

2002 231,447 168,691 72.9 62,756 27.1 31,820 50.7

2003 188,632 135,900 72.0 52,732 28.0 27,937 53.0

2004 168,729 118,713 70.4 50,016 29.6 26,388 52.8

2005 130,428 83,571 64.1 46,857 35.9 22,875 48.8
2006 SSI Annual Report

92

Table V.D3.—SSI Disabled Child Reviews: Disposition 1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of low-birth-weight children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 184 27.7 481 219 45.5 — 53 24.2 166

1996 — 329 36.4 575 232 40.3 — 44 19.0 188

1997 — 292 35.6 529 235 44.4 — 50 21.3 185

1998 — 1,231 33.8 2,409 1,142 47.4 — 244 21.4 898

1999 — 607 37.0 1,032 488 47.3 — 83 17.0 405

2000 4 609 39.0 952 452 47.5 — 99 21.9 353

2001 5 504 35.9 899 410 45.6 6 61 15.1 343

2002 38 698 35.8 1,253 571 45.6 28 110 20.3 433

2003 25 364 36.0 647 299 46.2 62 47 19.8 190

2004 119 619 36.9 1,057 497 47.0 320 25 14.1 152

2005 674 545 40.1 813 244 30.0 214 4 13.3 26

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 — 4,591 27.4 12,150 6,429 52.9 — 1,517 23.6 4,912

1998 2 3,070 28.1 7,843 4,388 55.9 5 1,026 23.4 3,357

1999 3 3,356 30.9 7,522 4,307 57.3 5 1,058 24.6 3,244

2000 14 3,575 32.4 7,445 4,041 54.3 10 1,011 25.1 3,020

2001 46 3,256 32.4 6,793 3,762 55.4 52 944 25.4 2,766

2002 158 3,819 33.1 7,715 4,280 55.5 228 1,041 25.7 3,011

2003 225 3,815 32.8 7,833 4,436 56.6 1,003 827 24.1 2,606

2004 535 3,461 31.1 7,682 4,282 55.7 2,617 425 25.5 1,240

2005 3,781 2,989 34.3 5,730 2,356 41.1 2,045 79 25.4 232

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 — 4,456 33.6 8,811 5,511 62.5 1 1,305 23.7 4,205

1999 9 9,324 32.8 19,086 11,714 61.4 3 2,613 22.3 9,098

2000 22 6,434 37.8 10,580 6,244 59.0 7 1,425 22.8 4,812

2001 90 4,619 39.1 7,187 4,283 59.6 33 947 22.3 3,303

2002 268 7,240 40.5 10,631 6,353 59.8 325 1,302 21.6 4,726

2003 271 6,239 42.3 8,518 5,115 60.0 1,084 861 21.4 3,170

2004 533 4,760 38.4 7,622 4,588 60.2 3,021 333 21.3 1,234

2005 2,264 2,525 41.5 3,554 1,525 42.9 1,366 18 11.3 141

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 — 4,884 27.8 12,681 6,665 52.6 — 1,567 23.5 5,098

1998 2 8,757 31.5 19,063 11,041 57.9 6 2,575 23.3 8,460

1999 12 13,287 32.5 27,640 16,509 59.7 8 3,754 22.8 12,747

2000 40 10,618 35.9 18,977 10,737 56.6 17 2,535 23.6 8,185

2001 141 8,379 36.0 14,879 8,455 56.8 91 1,952 23.3 6,412

2002 464 11,757 37.5 19,599 11,204 57.2 581 2,453 23.1 8,170

2003 521 10,418 38.0 16,998 9,850 57.9 2,149 1,735 22.5 5,966

2004 1,187 8,840 35.1 16,361 9,367 57.3 5,958 783 23.0 2,626

2005 6,719 6,059 37.5 10,097 4,125 40.9 3,625 101 20.2 399
93

2006 SSI Annual Report

1 Data reflect results as of February 2006. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 The status and disposition of cases in the Federal courts are not reflected here. However, for cases remanded by the courts to the Office of Disability Adjudication and Review, the status and disposition at ODAR are included. The excluded experience in the Federal courts has a minimal impact on the number of

continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Less than 0.05 percent.

Table V.D3.—SSI Disabled Child Reviews: Disposition1 of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of February 2006

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 7,567 — 10,053 42.9 — 57.1

1999 9,773 4,804 — 4,969 49.2 — 50.8

2000 10,178 5,274 4 4,900 51.8 6/ 48.1

2001 9,086 4,717 11 4,358 51.9 0.1 48.0

2002 12,732 6,677 66 5,989 52.4 .5 47.0

2003 7,283 3,927 87 3,269 53.9 1.2 44.9

2004 12,060 6,719 439 4,902 55.7 3.6 40.6

2005 13,710 7,089 888 5,733 51.7 6.5 41.8

Redeterminations at age 18

1994 — — — — — — —

1995 71 67 — 4 94.4 — 5.6

1996 12,640 8,984 — 3,656 71.1 — 28.9

1997 48,834 28,539 — 20,295 58.4 — 41.6

1998 40,945 25,549 7 15,389 62.4 6/ 37.6

1999 49,557 31,827 8 17,722 64.2 6/ 35.8

2000 51,713 33,449 24 18,240 64.7 6/ 35.3

2001 48,944 32,367 98 16,479 66.1 .2 33.7

2002 54,947 37,248 386 17,313 67.8 .7 31.5

2003 53,905 36,504 1,228 16,173 67.7 2.3 30.0

2004 53,232 35,776 3,152 14,304 67.2 5.9 26.9

2005 55,331 34,502 5,826 15,003 62.4 10.5 27.1

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 72,964 1 18,192 80.0 6/ 20.0

1999 183,211 141,357 12 41,842 77.2 6/ 22.8

2000 140,699 114,442 29 26,228 81.3 6/ 18.6

2001 95,835 78,462 123 17,250 81.9 .1 18.0

2002 163,768 138,976 593 24,199 84.9 .4 14.8

2003 127,444 107,622 1,355 18,467 84.4 1.1 14.5

2004 103,437 85,841 3,554 14,042 83.0 3.4 13.6

2005 61,387 48,140 3,630 9,617 78.4 5.9 15.7

Total reviews, SSI disabled children

1994 1,225 830 — 395 67.8 — 32.2

1995 7,837 5,117 — 2,720 65.3 — 34.7

1996 19,138 12,333 — 6,805 64.4 — 35.6

1997 55,939 33,372 — 22,567 59.7 — 40.3

1998 149,722 106,080 8 43,634 70.9 6/ 29.1

1999 242,541 177,988 20 64,533 73.4 6/ 26.6

2000 202,590 153,165 57 49,368 75.6 6/ 24.4

2001 153,865 115,546 232 38,087 75.1 .2 24.8

2002 231,447 182,901 1,045 47,501 79.0 .5 20.5

2003 188,632 148,053 2,670 37,909 78.5 1.4 20.1

2004 168,729 128,336 7,145 33,248 76.1 4.2 19.7

2005 130,428 89,731 10,344 30,353 68.8 7.9 23.3
2006 SSI Annual Report

94

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received SSI

payments. Initially, the program contained a basic earned income exclusion that recognized the additional

costs associated with employment. In addition, the law contained a number of special income exclusions

which were intended as work incentives. Among these provisions were the income exclusion for blind

work expenses (BWE), plan for achieving self-support (PASS), and student earned income exclusion

(SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

 • Providing for an earned income exclusion for impairment-related work expenses (IRWE);

 • Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

 • Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

 • Establishing section 1619 which provided:

 — In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to

represent substantial gainful activity (SGA), and

 — In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs.1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure V.E1 presents this information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the SSI Disabled Recipients Who Work. Pub. No.

13-11829, prepared by the Office of Research, Evaluation, and Statistics, Social Security Administration.
95

2006 SSI Annual Report

1 Increases in 2001 and subsequent years are based on increases in the national average wage index.

2 Workers’ earnings are above SGA level.

3 Workers’ earnings are at or below SGA level.

4 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

5 Increased to $700 in July 1999.

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-2005

Year

SGA

level 1

In current-payment status 1619(b)

workers 4 Total

1619(a) workers workers 2 Other workers 3

1987 . . . . . . . . . . . . . . . . . . . $300 14,559 142,664 15,632 172,855

1988 . . . . . . . . . . . . . . . . . . . 300 19,920 153,599 15,625 189,144

1989 . . . . . . . . . . . . . . . . . . . 300 25,655 161,928 18,254 205,837

1990 . . . . . . . . . . . . . . . . . . . 500 13,994 182,421 23,517 219,932

1991 . . . . . . . . . . . . . . . . . . . 500 15,531 186,824 27,264 229,619

1992 . . . . . . . . . . . . . . . . . . . 500 17,603 199,665 31,649 248,917

1993 . . . . . . . . . . . . . . . . . . . 500 20,028 210,322 35,299 265,649

1994 . . . . . . . . . . . . . . . . . . . 500 24,315 217,478 40,683 282,476

1995 . . . . . . . . . . . . . . . . . . . 500 28,060 223,573 47,002 298,635

1996 . . . . . . . . . . . . . . . . . . . 500 31,085 225,310 51,905 308,300

1997 . . . . . . . . . . . . . . . . . . . 500 34,673 228,093 57,089 319,855

1998 . . . . . . . . . . . . . . . . . . . 500 37,271 229,662 59,542 326,475

1999 . . . . . . . . . . . . . . . . . . . 5 700 25,528 245,825 69,265 340,618

2000 . . . . . . . . . . . . . . . . . . . 700 27,542 249,313 83,572 360,427

2001 . . . . . . . . . . . . . . . . . . . 740 22,100 247,555 76,455 346,110

2002 . . . . . . . . . . . . . . . . . . . 780 17,271 241,462 82,177 340,910

2003 . . . . . . . . . . . . . . . . . . . 800 17,132 235,453 71,097 323,682

2004 . . . . . . . . . . . . . . . . . . . 810 17,114 237,409 73,681 328,204

2005 . . . . . . . . . . . . . . . . . . . 830 17,621 240,744 78,205 336,570

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

as of December, 1987-2005

[In thousands]

0

50

100

150

200

250

300

350

400

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Calendar year

1619(b) workers

1619(a) workers

Recipients in current-pay

working at or below SGA
2006 SSI Annual Report

96

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive

provisions: (1) plan for achieving self-support (PASS), (2) impairment-related work expense exclusion

(IRWE), and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than

one of these selected work incentive provisions. This information is available only for calendar years 1990

and later.

1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

Note: Working recipients participating in these other work incentives may be 1619(a) recipients, 1619(b) recipients or working

recipients whose earnings are at or below the SGA level.

b. Average Earnings of Participants in Work Incentive Programs

In this section, we present historical data on average earnings of SSI working recipients. Table V.E3 presents average earnings of SSI recipients categorized according to their section 1619 status.

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, with increases in 2001 and subsequent years based on increases in the national average wage index.

In January 2006 the SGA level was increased to $860.

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, 1990-2005

Year

PASS 1

Non-workers Workers Total IRWE BWE

1990 . . . . . . . . . . . . . . . . . . . 1,215 1,040 2,255 5,384 4,385

1991 . . . . . . . . . . . . . . . . . . . 1,969 1,601 3,570 6,546 4,330

1992 . . . . . . . . . . . . . . . . . . . 3,189 2,658 5,847 7,813 4,454

1993 . . . . . . . . . . . . . . . . . . . 4,528 3,602 8,130 8,629 4,406

1994 . . . . . . . . . . . . . . . . . . . 5,842 4,487 10,329 9,484 4,380

1995 . . . . . . . . . . . . . . . . . . . 5,719 4,603 10,322 9,940 4,433

1996 . . . . . . . . . . . . . . . . . . . 2,760 1,944 4,704 9,799 4,230

1997 . . . . . . . . . . . . . . . . . . . 1,290 708 1,998 9,637 4,116

1998 . . . . . . . . . . . . . . . . . . . 712 362 1,074 9,301 3,802

1999 . . . . . . . . . . . . . . . . . . . 698 347 1,045 9,520 3,971

2000 . . . . . . . . . . . . . . . . . . . 862 520 1,382 9,422 3,895

2001 . . . . . . . . . . . . . . . . . . . 1,024 576 1,600 8,798 3,642

2002 . . . . . . . . . . . . . . . . . . . 1,150 571 1,721 8,047 3,386

2003 . . . . . . . . . . . . . . . . . . . 1,181 524 1,705 7,604 3,074

2004 . . . . . . . . . . . . . . . . . . . 1,112 486 1,598 6,874 2,827

2005 . . . . . . . . . . . . . . . . . . 1,089 493 1,582 6,310 2,552

Table V.E3.—Average Monthly Earnings of SSI Federally-Administered Blind or

Disabled Working Recipients, as of December, 1987-2005 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . $494 4 $124 $739 4 $211

1988 . . . . . . . . . . . . . . . . . . . . . . . 522 4 127 721 4 218

1989 . . . . . . . . . . . . . . . . . . . . . . . 518 4 131 712 4 231

1990 . . . . . . . . . . . . . . . . . . . . . . . 712 145 746 245

1991 . . . . . . . . . . . . . . . . . . . . . . . 724 148 780 262

1992 . . . . . . . . . . . . . . . . . . . . . . . 726 150 781 271

1993 . . . . . . . . . . . . . . . . . . . . . . . 728 153 784 280

1994 . . . . . . . . . . . . . . . . . . . . . . . 746 157 803 301

1995 . . . . . . . . . . . . . . . . . . . . . . . 754 160 834 322

1996 . . . . . . . . . . . . . . . . . . . . . . . 764 162 881 344

1997 . . . . . . . . . . . . . . . . . . . . . . . 772 164 932 367

1998 . . . . . . . . . . . . . . . . . . . . . . . 772 182 954 390

1999 . . . . . . . . . . . . . . . . . . . . . . . 926 207 980 418

2000 . . . . . . . . . . . . . . . . . . . . . . . 945 239 1,048 481

2001 . . . . . . . . . . . . . . . . . . . . . . . 1,004 252 1,043 475

2002 . . . . . . . . . . . . . . . . . . . . . . . 1,043 253 1,094 495

2003 . . . . . . . . . . . . . . . . . . . . . . . 1,059 241 1,081 469

2004 . . . . . . . . . . . . . . . . . . . . . . . 1,076 246 1,070 474

2005 . . . . . . . . . . . . . . . . . . . . . . . 1,111 255 1,118 500
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2. Vocational Rehabilitation/Ticket to Work Program 

Provisions designed to make vocational rehabilitation (VR) services available to SSI blind or disabled

recipients have been part of the SSI program since its inception. From the beginning, SSI recipients were

referred to State VR agencies, which provided services to those recipients who were accepted as clients.

Prior to 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981

amendments changed this and established a “cost” reimbursement provision. VR agencies would be

reimbursed for the cost of VR services furnished to blind or disabled SSI recipients only if the services

resulted in the recipient returning to work. For reimbursement purposes, recipients are considered to have

returned to work if they have had earnings exceeding the SGA level for 9 continuous months. 

The 1984 amendments authorized reimbursement for cases1 where the recipient medically recovers while

engaged in a program of rehabilitation services approved by SSA and SSA determines that continuation or

completion of such a program would increase the likelihood the individual will be permanently removed

from the rolls. Effective with the 1990 amendments, reimbursement for the cost of VR services was authorized for services provided in months in which the individual was not receiving Federal SSI benefits if the

individual: 

 • Had special SSI recipient status for Medicaid purposes under section 1619(b) of the Social Security

Act, 

 • Received a Federally-administered State supplementary payment, or 

 • Had SSI benefits suspended for fewer than 13 consecutive months for a reason other than cessation of

disability or blindness. 

In 1994, the regulations were amended to include reimbursement to alternate private and non-State public

VR providers (referred to as “alternate participants”) that provided VR services to recipients that a State

VR agency had not accepted as clients. The alternate provider program has subsequently been replaced by

the Ticket to Work and Self-Sufficiency program (Ticket to Work program) established by the Ticket to

Work and Work Incentives Improvement Act of 1999.

Under the Ticket to Work program, a disabled beneficiary may obtain vocational rehabilitation,

employment and other support services from qualified private or public providers that are referred to as

“Employment Networks” (ENs). The Ticket to Work program authorized the Commissioner to provide

payments to ENs under either an outcome payment system or an outcome-milestone payment system.

(State VR agencies were provided the option to elect on a case-by-case basis to be paid either under the

traditional VR reimbursement system, or either the outcome or outcome-milestone payment system.) By

expanding the pool of providers and giving the providers incentives for achieving success, this program

expands access to these services for persons with disabilities to assist them in finding, entering, and

retaining employment and reducing their dependence on cash benefits. 

The Ticket to Work program was implemented on a State-by-State basis beginning in February 2002 and

has been fully implemented nationwide since November 2003. As the Ticket to Work program was

implemented in a State, the alternate provider and the traditional VR referral process described earlier

were eliminated. SSA provided eligible individuals who received SSI benefits due to blindness or

disability in such State with a Ticket to Work document (“ticket”). Beneficiaries who receive a ticket may

use it to obtain from ENs or their State VR agencies vocational rehabilitation services, employment

services and other support services needed to return to work or go to work for the first time. Individuals

1 The 1980 amendments provided for benefit continuation for such SSI recipients who were continuing in a VR program after their disability had ceased.

The provision was extended to blind recipients effective April, 1988.
2006 SSI Annual Report

98

not eligible for a ticket may still request services from a State VR agency; the VR agency continues to

decide whether each beneficiary is eligible for services under the Rehabilitation Act of 1973. 

The Ticket legislation required that SSA establish a corps of work incentives specialists to disseminate

accurate information about work incentives. In addition, the Social Security Protection Act of 2004

mandated that SSA provide a work report receipt to the beneficiary. In response to these mandates, SSA:

 • In fiscal year 2003, established the Area Work Incentives Coordinator (AWIC) position and trained a

total of 58 AWICs, with at least one AWIC being assigned to each Area Office. The AWIC position

was created to improve the quality of employment support services provided to beneficiaries through

training, outreach, and better coordination of support services.

 • In fiscal year 2004, released a web-based design application known as eWork that provides the

agency with a uniform electronic system to process and control title II return to work cases. Since

eWork does not communicate with any title XVI systems, the agency is developing a web-based

application, the SSI Monthly Wage Verification (SSIMWV), to process and control SSI work reports.

The SSIMWV will allow the user to issue the mandated work report receipt in addition to processing

the wage report. The SSIMWV is expected to be released in late 2006. 

In fiscal year 2003, AWIC employees provided refresher training on employment supports to the local

Work Incentive Liaisons (WIL) located in each of the 1,335 local field offices. The systems application

phase of this training was updated beginning in fiscal year 2004 with the release of eWork. Training has

been provided to all direct service employees in field offices, teleservice centers and the payment processing centers. This training initiative was completed in November 2004.

AWICs have also been very active in participating in outreach activities in their local areas and continue to

be the primary point of contact for public information outreach in the communities. They have strengthened the relationship with our Ticket to Work partners: the ENs; Benefits Planning, Assistance and Outreach (BPAO) organizations; Protection and Advocacy (P&A) agencies and Disability Program

Navigators. AWICs also work closely with the regional Plan to Achieve Self-Support (PASS) cadres in

SSA to make joint educational presentations to the community about our employment support programs.

The partnership has strengthened support of one of the objectives of the Ticket to Work program which is

to educate the public about the benefits of returning to work and becoming self-sufficient. Presentations

that have been made directly to persons with disabilities and/or entities that provide services to this target

group include presentations at:

 • Disability Employment Fairs

 • Disability Forums and Expos

 • Technical Colleges

 • Universities

 • Disability Resource Centers

 • One Stop Centers

 • Small Business Administration Groups

 • Workforce Investment Fairs

 • Independent Living Councils’ Conferences
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 • United Way Agencies

 • State Advocacy Groups

See section V.G.1.c for information on the evaluation of the Ticket to Work program.

Table V.E4 provides historical data on the number of reimbursement claims allowed and the amount of

such awards for SSI recipients.

1 For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

2 For fiscal years 1987-89, data on title II reimbursement claims involving concurrent title XVI reimbursement claims are not available.

Note: Totals do not necessarily equal the sums of rounded components.

Table V.E4.—Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2005

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands) Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987 . . . . . . . 2/ 2/ 1,493 $10,010 2/ 2/

1988 . . . . . . . 2/ 2/ 1,720 14,831 2/ 2/

1989 . . . . . . . 2/ 2/ 1,871 18,366 2/ 2/

1990 . . . . . . . 1,267 $3,290 2,819 22,832 4,086 $26,122

1991 . . . . . . . 1,445 4,325 2,171 20,615 3,616 24,940

1992 . . . . . . . 1,634 5,312 2,834 28,276 4,468 33,588

1993 . . . . . . . 1,928 6,670 2,158 22,264 4,086 28,934

1994 . . . . . . . 1,880 7,057 2,074 23,400 3,954 30,457

1995 . . . . . . . 2,140 7,761 2,229 26,402 4,369 34,162

1996 . . . . . . . 2,033 6,518 2,138 24,334 4,171 30,852

1997 . . . . . . . 2,735 8,541 2,914 31,532 5,649 40,073

1998 . . . . . . . 3,329 10,089 3,446 36,313 6,775 46,402

1999 . . . . . . . 3,572 11,403 4,046 42,281 7,618 53,684

2000 . . . . . . . 3,260 11,357 3,589 40,793 6,849 52,150

2001 . . . . . . . 2,388 9,590 2,763 34,842 5,151 44,432

2002 . . . . . . . 3,241 12,201 3,474 43,244 6,715 55,445

2003 . . . . . . . 2,139 8,110 1,993 25,238 4,132 33,348

2004 . . . . . . . 1,999 7,759 2,150 26,390 4,149 34,149

2005 . . . . . . . 1,883 7,420 1,692 21,866 3,575 29,286
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F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present statistics on participation by SSI recipients in other programs based on data

from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data

summarized from the SSR are 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 below. 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 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.

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, 2005

Age groups

0-17 18-64 All

65 or

older

Number of Federally-administered recipients, 

December, 2005 (in thousands) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,036 4,083 1,995 7,114

Program (In percent)

Program participation by SSI recipients, December, 2005

Federal SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7 96.4 92.7 95.9

Federally-administered State SSI supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.7 28.3 43.8 31.5

OASDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 31.5 57.1 35.2

Black Lung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/

Railroad Retirement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 0.1 2/

Veterans Affairs disability cash benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.1 0.5 2.1 0.9

Worker’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 2/ 0.1

Previous program participation by SSI recipients, December, 2005

TANF/AFDC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.5 26.7 9.1 23.8

Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.6 15.0 10.0 11.5
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2006 SSI Annual Report

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), 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 were presented in the 2005 SSI Annual Report. However, since the SIPP is being

phased out by the Census Bureau and updated data are not available, data from the SIPP are not included

in this report.
2006 SSI Annual Report

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G. RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of information about “relevant research on the

SSI program by the Social Security Administration (SSA) and others.” Section 1 of this appendix

describes major ongoing projects. Section 2 presents a bibliography of studies that have been conducted

by public and private entities regarding SSI payment levels, recipients, and reform proposals.

1. Ongoing Research

a. Analyses Using Survey of Income and Program Participation Data

Using Survey of Income and Program Participation (SIPP) data matched to administrative records, SSA

researchers have developed a model of financial eligibility for SSI that has been used to estimate the rate

of participation among the eligible elderly and the effects of various options to modify the SSI program

(see Davies et al. 2001/2002). The model suggests that the rate of participation among the eligible elderly

was about 62 percent in 1991. The comparable participation rate estimate at the end of 1996 was also

62 percent.

The model was also utilized to simulate the potential effects of several approaches to expand the SSI program to fight poverty among the elderly. Approaches focusing on incremental changes in the Federal benefit rate, the general income exclusion, and the asset test appear roughly equally effective in reducing the

poverty gap among the elderly on a cost-equivalent basis, while two approaches focusing on relaxing the

earned income exclusion are less effective (Davies, Rupp, and Strand, 2004). The financial eligibility

model has also been utilized to study eligibility for Medicare buy-in programs (see Rupp and Sears 2000;

Sears 2001/2002). More recently, the model has been expanded to address SSI participation and financial

eligibility among the working-age disabled, and to assess SSI benefit restructuring options for the entire

SSI population. The model is currently being 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. Simulation results are applied to current elderly, workingage, and child SSI populations in order to provide up-to-date estimates for potential program changes,

Additional research using the matched SIPP records focused on the estimation of the prevalence of households and families with multiple SSI recipients and to assess the poverty status of multirecipient households (Koenig and Rupp, 2003/2004). The 1984 SIPP survey respondents were followed up for 14 years

based on administrative records on SSI and DI participation and death events to assess the relationship

between self-reported health status, disabilities, mortality, and participation in the SSI and DI programs

(Rupp and Davies, 2004).

b. National Survey of Children and Families

The National Survey of SSI Children and Families (NSCF) was designed to address a number of SSA policy and program objectives. Originally, the NSCF was envisioned to address issues specifically pertaining

to the effects of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (welfare

reform). However, the survey as designed is useful for the study of a broader range of issues of current

interest to policy makers. Most importantly it allows for the analysis of a nationally representative crosssection of SSI beneficiary children aged 0-17 and young-adults aged 18-23. Among the questions the survey answers are the following: 

 • What are the characteristics of SSI children? 

 • What alternative sources of care are available to disabled children who lose SSI benefits?
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2006 SSI Annual Report

 • How is quality of life and utilization of medical services impacted by gaining or losing SSI benefits?

 • What is the cost of caring for a child with disabilities?

 • What are the uses of SSI benefits?

 • What is the impact of receiving childhood SSI benefits on parental labor force participation? 

The first NSCF data collection began July 2001 and concluded June 2002. The NSCF sample size was

considerably larger for SSI children and young adults than other surveys. Altogether, 8,535 interviews

were completed for the NSCF, including 5,006 who received SSI benefits in December 2000 and 5,033

who received SSI benefits in December 1996. A public use file and documentation from the NSCF are

available on the SSA website at http://www.socialsecurity.gov/disabilityresearch/nscf.htm. In addition,

two papers have been published in the Social Security Bulletin. Davies and Rupp (2005/2006) provides an

overview of the survey and describes some key features. Rupp et al. (2005/2006) presents highlights from

the survey characterizing SSI children with disabilities and their families. Research with NSCF data is currently underway to study employment and caregiving patterns of parents of SSI children and to examine

employment and program outcomes among young adults after their eligibility redetermination at age 18.

The first NSCF is providing valuable insights into SSA priorities. However, it was a cross-sectional effort.

Therefore, SSA will be conducting another round of the NSCF to provide longitudinal information and

enhance its capability to better address SSA goals. The second NSCF data collection is in the preliminary

planning stages. 

c. Evaluation of the Ticket to Work Program

The Ticket to Work and Work Incentives Improvement Act of 1999 requires the Commissioner of Social

Security to provide for independent evaluations to assess the effectiveness of the Ticket to Work program,

and to submit three separate evaluation reports to Congress. In May 2003, SSA awarded two 5-year contracts to Mathematica Policy Research to conduct the evaluation of the Ticket to Work program. The first

contract focuses on data development, qualitative data collection, and implementation of the comprehensive evaluation analyses. The second contract focuses on a survey of beneficiaries which is designed to

collect information on the health and well-being of beneficiaries and on how beneficiaries use the Ticket

to Work program.

The first evaluation report was submitted in 2004 and included recommendations for methods to adjust

payment rates to ensure adequate incentives for the provision of services by employment networks (see

Thornton, et al. 2004). The remaining evaluation reports will be submitted in 2006 and 2007. The initial

survey was sent into the field in 2004 and is being repeated annually through 2007.

d. Homeless Outreach Projects and Evaluation (HOPE)

In fiscal years 2003-05, SSA’s appropriations included earmarked funds totaling $24 million to conduct

outreach to homeless and other under-served populations in support of the President’s initiative to end

chronic homelessness within 10 years. In 2004, SSA awarded funds to 41 service providers in 20 States

and the District of Columbia that currently provide outreach services to the homeless population. The service providers began enrolling project participants in September 2004. As of January 2006, HOPE grantees assisted 6,709 homeless individuals with their applications for SSI. Of those, 1,635 have been awarded

SSI benefits based on disability.

The HOPE initiative is focused on assisting eligible, homeless individuals in applying for SSI and DI

benefits. The HOPE projects will help SSA demonstrate the effectiveness of using skilled medical and

social service providers to identify and engage homeless individuals with disabilities as well as assist them

with the application process.
2006 SSI Annual Report

104

e. Youth Transition Demonstration (YTD)

In September 2003, to further the President’s New Freedom Initiative goal of increasing employment of

individuals with disabilities, SSA awarded cooperative agreements to six States (California, Colorado,

Iowa, New York, Maryland, and Mississippi) for the purpose of developing innovative 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 will prepare them for postsecondary education, employment, and economic self-sufficiency. 

The States have established partnerships to improve employment outcomes for youth ages 14-25 who

receive SSI or DI payments on the basis of their own disability. The projects provide a broad array of transition-related services and supports to youth who receive or are at risk of becoming eligible to receive SSI

or DI benefits. As of May 2006, 234 of 730 YTD participants (32 percent) were employed full or parttime. For a rough comparison, approximately 11 percent of SSI recipients aged 18-21 were working at the

end of December 2005.

f. Disability Program Navigators (DPNs)

In September 2002, SSA and the Department of Labor’s (DOL) Employment and Training Administration

agreed to fund a 2-year pilot and evaluation of the DPN. In October 2005, DOL and SSA agreed to fund

the project for a third year. As of April 25, 2006, there were approximately 273 DPN positions in 17

States.

Disability Program Navigators operate in DOL’s One-Stop Career Centers and provide seamless employment services to individuals seeking to enter the workforce. They also provide an important link to the

local employment market and facilitate access to programs and services that impact the success of individuals with disabilities who are seeking employment.

g. Pediatric Medical Units (PMUs)

Building on its current studies of determining disability in childhood disability cases, SSA is funding a

multi-year project to design, implement, and evaluate PMUs and test their ability to assist State Disability

Determination Services (DDSs). PMUs will be designed to take the most complex childhood disability

applications and assist DDSs in obtaining the appropriate medical evidence and documentation to allow

disability examiners to make a decision as early in the adjudication process as possible.

SSA has selected the Association of University Centers on Disabilities (AUCD) to conduct this demonstration project. AUCD has been working with SSA on the childhood disability determination process

since 1999. We have selected four pilot sites to test different models of assistance and support for State

DDSs and expect these sites to begin serving State DDSs by the end of the calendar year.

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.
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2006 SSI Annual Report

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.

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. “Annual Wage Trends for Supplemental Security Income Recipients.” Social Security Bulletin 65, 2 (2003/2004): 49-58.

________. 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 &

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Report No. RS22365, January 2006.

The Lewin Group. Evaluation Design for the Ticket to Work Program: Preliminary Process Evaluation.

Report prepared for the Social Security Administration. March 2003.

The Lewin Group. Evaluation Design for the Ticket to Work Program: Preliminary Report on Evaluation

Design. Report prepared for the Social Security Administration. June 2002.
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116

Thornton, Craig, Gina Livermore, David Stapleton, John Kregel, Tim Silva, Bonnie O’Day, Thomas

Fraker, W. Grant Revell, Jr., Heather Schroeder, and Meredith Edwards. Evaluation of the Ticket to Work

Program: Initial Evaluation Report, report prepared under contract to the Office of Disability and Income

Security Programs, Social Security Administration, February 2004.

U.S. General Accounting Office. Supplemental Security Income: Sustained Management Attention Needed

to Address Residency Violations. Testimony Before the Subcommittee on Human Resources, Committee

on Ways and Means. U.S. House of Representatives. GAO-04-789T, 2004.

________. Supplemental Security Income: SSA Could Enhance Its Ability to Detect Residency Violations.

Report to the Chairman, Subcommittee on Human Resources, Committee on Ways and Means, U.S.

House of Representatives. GAO-03-724, 2003.

________. Supplemental Security Income: Progress Made in Detecting and Recovering Overpayments,

but Management Attention Should Continue. Report to the Commissioner of Social Security. GAO-02-

849, 2002.

________. Social Security Administration: Agency Must Position Itself Now to Meet Profound Challenges.

Testimony Before the Subcommittee on Social Security, Committee on Ways and Means, U.S. House of

Representatives. GAO-02-289T, 2002.

________. Major Management Challenges and Program Risks: Social Security Administration. GAO-01-

261, 2001.

________. SSI Disability: Other Programs May Provide Lessons for Improving Return-to-Work Efforts.

Report to Congressional Requesters. GAO-01-153, 2001.

________. Social Security Reform: Potential Effects on SSA’s Disability Programs and Beneficiaries.

Report to the Ranking Member, Subcommittee on Labor, Health and Human Services, Education, and

Related Agencies, Committee on Appropriations. GAO-01-35, 2001.

________. Supplemental Security Income: Incentive Payments Have Reduced Benefit Overpayments to

Prisoners. GAO/HEHS-00-2, 1999.

________. Supplemental Security Income: Additional Actions Needed to Reduce Program Vulnerability to

Fraud and Abuse. Report to the Honorable Henry Waxman, Ranking Minority Member, Committee on

Government Reform, U.S. House of Representatives. GAO/HEHS-99-151, 1999.

________. Supplemental Security Income: Progress Made in Implementing Welfare Reform Changes—

More Action Needed. Report to the Committee on Finance, U.S. Senate, and the Committee on Ways and

Means, U.S. House of Representatives. GAO/HEHS-99-103, 1999.

________. SSI Children: Multiple Factors Affect Families’ Costs for Disability-Related Services. Report

to Congressional Committees. GAO/HEHS-99-99, 1999.

U.S. General Accounting Office. Supplemental Security Income: Long-Standing Issues Require More

Active Management and Program Oversight. Statement of Cynthia M. Fagnoni, Director, Income Security

Issues, Health, Education, and Human Services Division, Before the Subcommittee on Human Resources,

Committee on Ways and Means, U.S. House of Representatives. GAO/T-HEHS-99-51, 1999.

________. Supplemental Security Income: Increased Receipt and Reporting of Child Support Could

Reduce Payments. Report to the Committees on Finance, U.S. Senate, and Ways and Means, U.S. House

of Representatives. GAO/HEHS-99-11, 1999.
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U.S. Government Accountability Office. TANF and SSI: Opportunities Exist to Help People with Impairments Become More Self-Sufficient. Report to the Chairman, Subcommittee on Human Resources, Committee on Ways and Means, U.S. House of Representatives. GAO-04-878, 2004.

U.S. Library of Congress. Federal Research Division. Vocational Factors in the Social Security Disability

Decision Process: A Review of the Literature. Report prepared under an Interagency Agreement for the

Social Security Administration, Office of Disability Research, 1998.

U.S. Social Security Administration. Annual Statistical Supplement to the Social Security Bulletin. SSA

Pub. No. 13-11700, Annual Publication of the Office of Research, Evaluation, and Statistics.

________. Children Receiving SSI. SSA Pub. No. 13-11830, Annual Publication of the Office of

Research, Evaluation, and Statistics.

________. SSI Annual Statistical Report. SSA Pub. No. 13-11827, Annual Publication of the Office of

Research, Evaluation, and Statistics.

________. SSI Disabled Recipients Who Work. SSA Pub. No. 13-11829, Annual Publication of the Office

of Research, Evaluation, and Statistics.

________. SSI Recipients by State and County. SSA Pub. No. 13-11976, Annual Publication of the Office

of Research, Evaluation, and Statistics.

________. State Assistance Programs for SSI Recipients. SSA Pub. No. 13-11975, Annual Publication of

the Office of Research, Evaluation, and Statistics.

________. Simplifying the Supplemental Security Income Program: Challenges and Opportunities. SSA

Pub. No. 13-005, Office of Policy, December 2000.

________. The SSI Program at the Millennium. SSA Pub. No. 62-003, Office of Policy, November 2000.

________. Social Security Administration’s Report on Supplemental Security Income: Income and

Resource Exclusions and Disability Insurance Earnings-Related Provisions. Report to the Speaker of the

U.S. House of Representatives and to the President of the U.S. Senate, March 2000.

U.S. Social Security Administration. Management of the Supplemental Security Income Program: Today

and in the Future. SSA Pub. No. 05-10103, October 1998.

Van Hook, Jennifer V. “SSI Eligibility and Participation Among Elderly Naturalized Citizens and Noncitizens.” Social Science Research 29, 1(March 2000): 51-69.

Van Hook, Jennifer V. and Frank D. Bean. “The Growth in Noncitizen SSI Caseloads 1979-1996: Aging

Versus New Immigrant Effects.” Journals of Gerontology Series B – Psychological Sciences and Social

Sciences 54, 1 (January 1999): S16-S23.

Watkins, Katherine E., Deborah Podus, Emilia Lombardi, and Audrey Burnam. “Changes in Mental

Health and Service Use After Termination of SSI Benefits.” Psychiatric Services: A Journal of the American Psychiatric Association 52, 9 (September 2001):1210-1215.

Watkins, Katherine E., Deborah Podus, and Emilia Lombardi. “The Health and Mental Health of Disabled

Substance Abusers.” Journal of Behavioral Health Services & Research 28, 2 (May 2001): 205-211.
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Weiner, Barbara. “Protecting SSI Benefits for Elderly and Disabled Refugees.” Human Rights: Journal of

the Section of Individual Rights & Responsibilities 31, 2 (Spring 2004): 11-12.

Wentworth, Seyda G. and David Pattison. “Income Growth and Future Poverty Rates of the Aged.” Social

Security Bulletin 64, 3 (2001-2002): 23-37.

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. How many SSI Recipients Live with other Recipients? Policy Brief No. 2004-03. Washington, DC: Office of Disability and Income Assistance Policy, Office of Policy, Social Security Administration, June 2004.

________. “Improving Child Support Enforcement for Children Receiving SSI.” Social Security Bulletin

64, 1 (2001/2002): 16-26.

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.

Wittenberg, David and Sandi Nelson. A Guide to Disability Statistics from the Survey of Income and Program Participation. Washington, DC: Urban Institute. February 2006.

Wittenburg, David. A Health-Conscious Safety Net? Health Problems and Program Use among LowIncome Adults with Disabilities. New Federalism: National Survey of America’s Families No. B-62.

Washington, DC: Urban Institute, September 2004. Available at www.urban.org/url.cfm?ID=311065 

Wittenburg, David and Melissa Favreault. 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.
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H. GLOSSARY

Administrative Expenses (or Costs). Expenses incurred by the Social Security Administration (SSA) in

administering the Supplemental Security Income (SSI) program. Such administrative expenses are initially

paid from the OASI and DI Trust Funds as provided for in section 201(g)(1) of the Social Security Act.

The trust funds are subsequently reimbursed for such expenditures, including any interest lost, from the

General Fund of the Treasury.

Affidavit of Support. A contract under which a United States citizen or legal resident agrees to provide

support to maintain (i.e., to sponsor) an immigrant as a condition of the immigrant’s admission into the

United States.

Aged. Individuals aged 65 or older.

Aid—Old-Age Assistance (OAA), Aid to the Blind (AB), and Aid to the Permanently and Totally

Disabled (APTD). The former Federal-State programs of adult cash assistance under titles I, X, and XVI

respectively, that were replaced in the 50 States and the District of Columbia by the SSI program in 1974.

These programs still operate in Guam, the Virgin Islands, and Puerto Rico and are administered at the Federal level by the Secretary of Health and Human Services.

Alien Lawfully Admitted for Permanent Residence. A noncitizen lawfully accorded the privilege of

residing permanently in the United States. Such individuals may be issued immigrant visas overseas by the

Department of State, or adjusted to permanent resident status while living in the United States by the U.S.

Citizenship and Immigration Services (USCIS).

Appeal Rights Process. The administrative review process followed by SSA in determining an individual’s rights under the Social Security Act. The administrative review process consists of several steps,

which must be requested after the unfavorable initial determination within certain time periods1. 

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 2006 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. 

1 Under DSI, the new disability determination process for initial claims for which final rules were published in March 2006, the administrative review process will be changed for appeals of unfavorable medical determinations. Implementation of DSI is scheduled to begin with the Boston region in August

2006.
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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 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. 

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.

Earned Income Exclusion. The first $65 of a recipient’s monthly earnings and one-half of the earnings

in excess of $65 are excluded in computing the SSI benefit payable.
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Earned Income Tax Credit (EITC). A special tax credit that reduces the Federal tax liability of certain

low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer.

Economic Assumptions. See “Assumptions.”

Effective Date of Application. An application for SSI benefits is effective on the first day of the month

following the date on which the application is filed, or on which the individual first becomes eligible,

whichever is later. 

Eligible Couple. Two persons married and living together in the same household or living together as

married, both being aged, blind, or disabled and eligible for SSI.

Eligible Individual. An aged, blind or disabled person who meets all the requirements for eligibility

under the SSI program, including filing an application.

Emergency Advance Payments (EAP). Special SSI payments that are available only at the time of initial application for eligible individuals who face financial emergencies and need assistance before their

first benefits would otherwise be received. The amount of the EAP an individual receives is recovered

from subsequent benefit payments.

Essential Person. An individual whose presence in the home of an SSI recipient who was transferred

from a State assistance program to SSI in January 1974 results in an increase in the FBR of the SSI recipient. The essential person must have been (1) living in the household of the SSI recipient in December

1973 and continuously thereafter; (2) never eligible for SSI; (3) not eligible for State assistance in December 1973; and (4) taken into account when the SSI recipient’s need for State assistance was determined in

December 1973.

Federal Benefit Rate (FBR). The basic standard used in computing the amount of Federal SSI benefits

for individuals and couples. The FBRs are increased annually to reflect increases in the cost of living. (See

table IV.A2.)

Fiscal Year (FY). The accounting year of the United States Government. Since 1976, a fiscal year is the

12-month period ending September 30. For example, fiscal year 2006 began October 1, 2005 and will end

September 30, 2006.

Food Stamps. The U.S. Department of Agriculture (USDA), under cooperative Federal-State agreements,

issues Food Stamp Program benefits in the form of paper food coupons (commonly known as food

stamps) and through electronic benefit transfer, to provide nutrition for low-income families. Food stamps

can be used only to buy food at stores authorized by USDA to accept them.

General Fund of the Treasury. Funds held by the Treasury of the United States, other than receipts collected for a specific purpose (such as Social Security) and maintained in a separate account for that purpose.

Gross Domestic Product (GDP). The total market value of goods and services produced by labor and

property located in the United States, regardless of who supplies the labor or property. 

Holding-Out Marriage. A situation in which a man and woman who are not legally married to each

other are living together in the same household and holding out to the community that they are husband

and wife and, as such, are treated as a couple for purposes of determining eligibility and payment amount

under SSI.

Home Energy Assistance. A Federal Government block grant program that provides funds to States for

energy assistance (including weatherization) to low-income households. This assistance may be provided

by a variety of agencies (e.g., State or local welfare offices, community action agencies, special energy

offices, etc.) and may be known by a variety of names (e.g., Low Income Home Energy Assistance Program (LIHEAP), Project Safe, etc.).
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Household. A group of two or more individuals who use a single dwelling unit as primary quarters for

living and eating separate from other individuals’ living units.

Household of Another. An individual is considered to be living in the household of another when the

individual lives with others, does not own or rent the shelter, and does not pay a pro rata share of the

household’s food and shelter expenses. An individual who provides all of his/her own food, or lives in a

public assistance household or in noninstitutional care, is not considered to be living in the household of

another. An individual who is determined to be living in the household of another is considered to be

receiving in-kind support and maintenance from that household, and his/her SSI benefit is reduced by onethird of the FBR. 

Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWEs are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income. Infrequent means that it is not received more

than once in a calendar quarter from a single source. Irregular means that an individual could not reasonably expect to receive the income. In any given quarter up to $30 of earned and $60 of unearned infrequent

or irregular income is excluded.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food or shelter or something an individual can use to

obtain food or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food or shelter.

Interim Assistance Reimbursement (IAR). The process used for reimbursing for basic assistance provided by a State to an individual either while the individual’s application for SSI was pending or during

the period in which an individual’s SSI benefits were suspended. SSA may reimburse a State that has provided this assistance. The individual’s retroactive SSI payment is sent to the State as reimbursement if: (1)

the State has an agreement with SSA to participate in IAR, (2) the individual has given SSA written authorization to have his/her retroactive payment sent to the State as reimbursement, and (3) the individual is

found eligible for SSI benefits or has had his/her benefits reinstated for the same period of suspense. 

Under IAR, after States reimburse themselves from an individual’s retroactive benefit, they must forward

any remainder to the individual within 10 days.
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Living With. A required condition for parent-to-child and spouse-to-spouse deeming. Deeming of

income and resources occurs if an eligible child lives with his/her ineligible parent(s) or an eligible individual lives with his/her ineligible spouse. 

Maintenance-of-Effort. See “Passalong.”

Mandatory State Supplementation. See “State Supplementation.”

Means-Testing. The measuring of income and resources against specified amounts as eligibility factors

for certain assistance benefits. SSI is a means-tested benefit program.

Medicaid. The program authorized under title XIX of the Social Security Act, which provides medical

assistance to certain low-income individuals and families and certain disabled and medically needy individuals. Medicaid is administered by the States with support from the Federal Government in the form of

matching grants. The Federal Government provides guidelines to the States for formulating their programs. Because these guidelines afford great leeway, Medicaid programs vary widely among the States.

Medicaid Facility. A medical treatment facility such as a hospital, extended care facility, nursing home,

or intermediate care facility, where Medicaid pays more than 50 percent of the cost of a person’s care.

Medical Facility. An establishment that makes available some treatment or services in addition to food

and shelter to four or more persons who are not related to the proprietor.

New Entrant. An SSI recipient in the first month of SSI payment receipt.

Noncitizen. An individual who is not a United States citizen. Also referred to in welfare and immigration

law as an alien. (See “Alien Lawfully Admitted for Permanent Residence,” “Asylee,” “Parolee” and “Refugee.”)

Nonqualified Alien. A noncitizen who is not in a qualified alien category for SSI eligibility purposes. 

OASDI. The Old-Age, Survivors, and Disability Insurance programs established under title II of the

Social Security Act.

One-Third Reduction. The reduction of an individual’s SSI payment that occurs when an individual is

living in the household of another. Instead of determining the actual dollar value of in-kind support and

maintenance, one-third of the Federal benefit rate is counted as additional income to an individual living in

another person’s household for a full calendar month and receiving both food and shelter from the household.

Optional State Supplementation. See “State Supplementation.”

Overpayment. The payment of more than the amount due for any period, including any amounts of

Federally-administered State supplementary payments.

Parent. For SSI purposes, the natural mother or father of the child, or the person who legally adopted the

child, or the stepparent who lives in the same household as the child.

Parolee. A noncitizen who appears to be inadmissible to the inspecting USCIS officer but is allowed to

enter the United States under emergency humanitarian conditions or when the noncitizen’s entry is determined to be in the public interest. Parole does not constitute a formal admission to the United States and

confers temporary admission status only, requiring parolees to leave when the conditions supporting their

parole cease to exist.

Passalong. A requirement that States must meet in order to be eligible for Medicaid reimbursement. Any

State making supplementary payments (see “State Supplementation”) after June 30, 1977, must continue
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making such payments and must pass along any cost-of-living increase to the Federal benefit rate. Two

methods are available to ensure that cost-of-living increases are passed on to the recipients.

 • Total Expenditures Method—State expenditures for supplementary payments in the current calendar

year must at least equal expenditures in the preceding calendar year. If expenditures are less in the

current year (shortfall), the State must increase expenditures in the next calendar year by an amount at

least equal to the shortfall.

 • Payment Levels Method—States may not lower their supplementary payment for any of the living

arrangement categories below their adjusted March 1983 levels. The adjusted level is the State’s

March 1983 payment level minus that portion of the July 1983 increase in the Federal benefit rate that

was not attributable to the increase in the cost of living (i.e., $10.30 per individual and $15.40 per

couple).

Personal Needs Allowance. The amount allowed for an institutionalized recipient’s personal needs (currently $30). If an SSI recipient is in a Medicaid facility, the law requires that the SSI benefit be used only

for the recipient’s personal needs (i.e., that the institution cannot retain the benefit in repayment of the cost

of the individual’s care).

Plan for Achieving Self-Support (PASS). A plan that permits a disabled or blind SSI recipient to set

aside income (earned and/or unearned) and/or resources for a work goal. The income and resources set

aside under a PASS are used to pay for goods or services needed to reach that goal, such as education,

vocational training, starting a business, or purchasing work-related equipment. Income and resources set

aside under a PASS are excluded from SSI income and resources. SSA must approve an individual’s

PASS.

Population in the Social Security Area. The population comprised of (i) residents of the 50 States and

the District of Columbia (adjusted for net census undercount); (ii) civilian residents of Puerto Rico, the

Virgin Islands, Guam, American Samoa and the Northern Mariana Islands; (iii) Federal civilian employees

and persons in the Armed Forces abroad and their dependents; (iv) crew members of merchant vessels;

and (v) all other U.S. citizens abroad.

Presumptive Disability or Blindness. A finding that SSI payments may be made before SSA makes a

formal determination as to whether or not the individual is disabled or blind. The individual’s impairment

must be apparent and meet specified criteria. In addition, the individual must meet all other requirements

for eligibility. These payments may be made for no more than 6 months. The presumptive payments will

not be considered overpayments if SSA later finds that the individual is not blind or disabled.

Property Essential for Self-Support (PESS). The real and personal property used in a trade or business,

nonbusiness income-producing property and property used to produce goods or services essential to the

individual’s daily activities. PESS may be excluded from resources under certain conditions.

Proration of Benefits. The method of computing benefit amounts in months in which the individual reacquires eligibility after a month or more of ineligibility. In such months, an individual’s SSI benefit will be

paid according to the number of days in the month that he/she is eligible, beginning with the first day in

the month on which all eligibility requirements are met. In order to determine the benefit payable in a prorated month SSA counts the number of days an individual is eligible in the month. The amount of the individual’s regular monthly payment is multiplied by the number of days for which he/she is eligible for

benefits. That figure is divided by the number of days in the month for which the benefit is being determined. The resulting amount is the amount due for the prorated month. After 1996, proration for months

of initial eligibility was eliminated.
2006 SSI Annual Report

126

Public Educational Institution. An institution that is operated by or controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county for the primary purpose of providing educational or vocational training. 

Public Emergency Shelter. A shelter for individuals whose homelessness poses a threat to their life or

health.

Public Institution. An institution that is operated by or controlled by the Federal Government, a State, or

a political subdivision of a State such as a city or county. 

Publicly Operated Community Residence. A facility that provides food and shelter and some other service such as social services, help with personal living activities, training in socialization and life skills, or

occasional or incidental medical or remedial care. In order to be publicly operated it must be operated or

controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county.

The facility must serve no more than 16 residents and must be located in a community setting.

Qualified Alien. An individual who is:

 • Lawfully admitted for permanent residence under the Immigration and Nationality Act (INA);

 • A refugee under section 207 of the INA;

 • An asylee under section 208 of the INA;

 • A person whose deportation is withheld under section 243(h) of the INA as in effect prior to April 1,

1997, or whose removal has been withheld under section 241(b)(3) of the INA;

 • A parolee under section 212(d)(5) of the INA for at least 1 year;

 • A person granted conditional entry under section 203(a)(7) of the INA as in effect prior to

April 1, 1980;

 • A Cuban or Haitian entrant as defined by Federal statute, including Section 501(e) of the Refugee

Education Assistance Act of 1980;

 — Former parolees and other aliens who became residents under the Cuban Adjustment Act of

1966;

 — Aliens who became permanent residents under the Nicaraguan and Central American Relief Act;

or

 — Aliens who became permanent residents under the Haitian Refugee Immigration Fairness Act.

 • A certain alien, or an alien parent of a child, or an alien child of a parent who:

 — Has been battered or subjected to extreme cruelty in the United States by a spouse, parent, or certain other family members the alien, parent and/or child lived with;

 — Is not living in the same household with the abusive individual;

 — Has been determined to need SSI because of this abuse; and

 — Has a determination from the USCIS for a certain change in status.

Qualifying Quarter of Earnings. Credit for a requisite amount of earnings assigned to a calendar quarter

for the purpose of determining the SSI eligibility of a lawfully admitted permanent resident.
127

2006 SSI Annual Report

Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2006, a worker receives one quarter of coverage (up to four a year) for each $970 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.1

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.

1 Under DSI, the new disability determination process for initial claims for which final rules were published in March 2006, the administrative process for

appeals of unfavorable medical determinations does not include the reconsideration step.
2006 SSI Annual Report

128

Resident of the United States. A person who has established an actual dwelling place within the geographical limits of the United States with the intent to continue to live in the United States. (See “United

States.”)

Resource. The cash or other liquid assets or any real or personal property of an individual (or his/her

spouse, if any) that he/she could use or could convert to cash to be used for his/her support and maintenance.

Retroactive Payments. The SSI payments made in a month later than the month or months in which they

were due. Also referred to as “past-due” benefits.

Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the

current month’s countable income), no payment is due and none is paid. If the individual is eligible based

on the current month’s factors, payment is computed. The benefit for a month is generally based on the

countable income from the second month before the current month. The basic formula is to subtract the

countable income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.

Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Sponsor. An individual who has signed an affidavit of support for a noncitizen entering the country.

State Supplementation. The payments made by a State or one of its political subdivisions to aged, blind,

or disabled individuals.

 • Administration—The governmental unit responsible for administering State supplementary payments

may be either a State or local agency or SSA. Under State administration, the State must absorb both

program benefits and administrative costs. Under Federal administration, the State is responsible for

the program benefits and, as of January 1, 2006, pays a $9.29 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.
129

2006 SSI Annual Report

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 2006, up to $1,460 earned income in a month, but no more than

$5,910 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 2006, a person who is not statutorily

blind and is earning more than $860 a month (net of impairment-related work expenses) is ordinarily considered to be engaging in substantial gainful activity.

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months (24

months for individuals who were made ineligible because of their spouses or parent being called to active

military duty) 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;
2006 SSI Annual Report

130

 • 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. 

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.
 

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 perspectives on this important program, and we have asked the Social Security 

Administration (SSA) to include the following statement in this year’s annual report. 

The impetus for this statement came out of our renewed study of the disability 

program. During the course of this most recent work it has become clear that there is a 

need to strengthen our national policies relative to youth with disabilities. In presenting 

our views this year, we want to focus on the impacts of the SSI age-18 redetermination 

policy and how it affects the transition of youth from SSI benefits to the world of work 

and adulthood. 

SSI applicants under age 18 have to meet different disability standards from those for 

applicants ages 18 and above. Beginning in 1996, all SSI beneficiaries who turn 18 have 

had to have their cases redetermined under the adult standards. Between 1996 and 2004, 

more than 400 thousand beneficiaries have had these age-18 redeterminations. About 

one-third of these redeterminations result in termination of benefits. The Board believes 

that it is crucial that parents and children be made aware of this so that they can better 

prepare for this eventuality. The job of children is to learn and grow and the role of the 

educational system is paramount. Schools play a large part in preparing SSI youth, 

especially those who will be able to work as adults, for their transition to adulthood. We 

will recommend some steps that SSA can take that can help make that preparation more 

effective. 

SSI: TRANSITION FROM CHILDHOOD TO ADULTHOOD

Age-18 Redeterminations

The number of SSI beneficiaries under age 18 grew slowly from the program’s 

inception until the early 1990s, when it began to increase rapidly. (See Chart 1.) This 

rapid growth has been attributed mainly to a Supreme Court decision that loosened the 

eligibility requirements for children. A recession in the early 1990s, changes in State 

welfare programs, and efforts by disability advocates may also have been factors in the 

growth of the child SSI rolls. 

Concerns over this rapid growth and over media reports of children being coached to 

meet eligibility requirements led to restrictions on program access. In 1996 Congress 

tightened the child disability requirements and ordered SSA to redetermine the cases of 

SSI children whose eligibility might be affected by the new requirements. Congress also 

added a requirement that all 18-year-old SSI beneficiaries have their eligibility 
redetermined to see if they meet the adult disability criteria. These redeterminations are 

different from continuing disability reviews (CDRs) that beneficiaries go through from 

time to time. Instead of determining whether the beneficiary’s medical condition has 

improved to the point that he or she no longer meets the definition of disability, as is the 

case with CDRs, medical improvement is not a factor in the age-18 redeterminations. 

Rather, the age-18 redeterminations measure against adult disability criteria beneficiaries 

who had earlier been approved based on the childhood criteria. 

Chart 1 

SSI Beneficiaries under Age 18, 1974-2005

0

200

400

600

800

1000

1200

1974197619781980198219841986198819901992199419961998200020022004

Thousands

Outcomes of Age-18 Redeterminations 

The age-18 redeterminations are conducted by the State agencies that make disability 

determinations for SSA. Between 1996 and 2004 those State agencies made more than 

400 thousand such redeterminations. Of those determinations, 56 percent were decisions 

to continue benefits, and 44 percent were to cease benefits. Beneficiaries who received a 

decision to cease benefits could ask for a reconsideration of that decision by the 

State agency. Those who still received a cessation decision at the reconsideration level 

could request a hearing by an SSA administrative law judge. Those who received a 

cessation decision at the hearing level could ask for a review by SSA’s Appeals Council. 

Those dissatisfied with the outcome at that level could take their case to the Federal 

courts. After appeals (as shown in Chart 2), 65 percent of these 1996 through 2004 

age-18 redeterminations resulted in continuation of benefits, and 33 percent resulted in a 

cessation of benefits. (Two percent were still awaiting an appeal decision in 

January 2005).1

 By contrast, more than 90 percent of SSI adult beneficiaries whose cases 

received a full medical review over the same period had their benefits continued. 

 

1

 There is considerable State-to-State variation in cessation rates by States. See Appendix. 

2
Chart 2 

Outcomes of Age-18 Redeterminations, 1996-2004

Continuations

Cessations

Pending appeal

Ch

d young 

. The following description of SSI 

ben c years immediately before the age-18 

red r

•

• ive in a 2-parent family, 60 percent in a single-parent family, 

an 

t, high school or 

•

• come, including SSI, is $1,528. Average 

• I payments include welfare 

). 

ercent of households), Medicaid 

• d dropped out of school. 

 

aracteristics of Beneficiaries 

Recent data from the National Survey of SSI Children and Families (NSCF) provides

a snapshot of who the SSI childhood beneficiaries are. The NSCF is a nationally 

representative survey – the first since 1978 – of noninstitutionalized children an

adults who currently or formerly received SSI. It was funded by SSA, and data were 

collected between July 2001 and July 2002

efi iaries between the ages of 14 and 17, the

ete mination, is based on NSCF data:2

37 percent are female, 63 percent male. 

25 percent l

14 percent live with another relative or guardian, and 1 percent live alone or in 

institution. 

• Parent’s education level is less than high school for 43 percen

GED for 36 percent, and more than high school for 22 percent. 

In 51 percent of the households, at least 1 parent is working. 

The total average monthly household in

household income is 6 percent above the poverty level, and 38 percent of 

households are below the poverty line. 

Household income sources other than earnings and SS

(17 percent of households), Social Security benefits (21 percent), child support

(19 percent), and pensions and annuities (2 percent

• Non-cash benefits include Food Stamps (31 p

(93 percent), and housing assistance (11 percent). 

Almost 6 percent ha

2

 Pamela Loprest and David Wittenburg, “Choices, Challenges, and Options: Child SSI Recipients 

Preparing for the Transition to Adult Life,” Urban Institute, May 2005. 

3
• Of those who had not dropped out, 32 percent had been suspended or expelled in 

the last 12 months. 

rom 

ls 

lems even when they use glasses or contact lenses. They are less 

likely to have mastered basic functional cognitive skills such as reading common signs 

and

e 

work 

ions that affect their work. They are 

more likely to be unemployed, to have children outside of marriage, to be socially 

isol

 challenging for youth 

ith disabilities. The picture of SSI youth that emerges from survey data indicates that 

 is especially challenging for them. 

Imp

ther 

nd 

ed from the SSI rolls have incomes, on average, only a little above the 

overty line. Following are some of Loprest and Wittenburg’s findings about these 

bgroups: 

 

• Of 17 year olds, 16 percent reported ever having been arrested. 

Another rich source of data on youth with disabilities is the National Longitudinal 

Transition Study-2 (NLTS2), sponsored by the Department of Education. That study 

looks at a nationally representative sample of students who were 13 to 16 years old and 

received special education in December 2000. The study will follow them until 2010 to 

understand their experiences as they transition into adulthood. A report on early findings 

from that study makes the point that youths from low-income families, as SSI youth are, 

are different from those from wealthier families in some important respects. Youths f

low-income families are less likely to have had their disabilities identified at an early age 

or to have received services to ameliorate the negative impacts of those disabilities. 

Low-income youth are more likely to have limitations in communication and social skil

and to have vision prob

 counting change. 

Over the last 40 years, the transition to adulthood in American society has becom

longer and more difficult. Young people are more likely to depend on parents for 

financial help, health insurance, or a place to live between jobs. Not all parents can 

provide such help, and supports from other sources often end at 18 or 21. Youth with 

disabilities are often the least able to assume adult responsibilities. They may lack 

skills, or maturity, or life skills, or may have limitat

ated, to commit crimes, and to live in poverty.3

The transition to adulthood can be challenging, and is more

w

the transition to adulthood

act on Beneficiaries

The NSCF sheds light on what happens to beneficiaries after their redetermination. 

Loprest and Wittenburg look at a group who were receiving benefits in 1996 and were 

ages 19 to 23 in 2000, a group they refer to as their post-transition cohort. They divide 

that group into 2 subgroups, those remaining on SSI and those who were cut off or left 

SSI at the age-18 redetermination. They find that some of the group off SSI found o

sources of income, but many are struggling to get by. Both those remaining on SSI a

those remov

p

su

3

 D. Wayne Osgood, E. Michael Foster, Constance Flanagan, and Gretchen Ruth, “Programs and Policy 

Goals for Helping Vulnerable Youth as They Move into Adulthood,” Network on Transitions to Adulthood 

Policy Brief, Issue 18, February 2005. 

4
O O n SSI ff SSI 

Gender 

Female 44.9% 32.6%

Male 55.1% 67.4% 

Living Arrangement

ily 

23.9%

10

26.4%

15

2-parent family 

Single-parent fam

Other relative/guardian 

Alone/institution 

27.0%

37.3%

.6%

17.1% 

40.1% 

.3% 

Ratio of total household

income to poverty level 1.17 1.10

Percent below poverty 37.0% 28.7%

Sources of household income 

Earnings

Parental earnings 

ings 

rs

Own earnings 

Any earn

Government transfe

Welfare 

General assistance 

Other SSA benefits 

Any government transfer 

Other income

Child support 

Pension and annuity 

Other supports

Food Stamps 

Housing assistance 

Health insurance

Medicaid 

Any private insurance 

13.2%

19.0%

3

9.6%

29.4%

9

10.5%

38.4%

6

11.4%

10.9%

29.2%

15.3%

No insurance 5

41.1%

46.3%

13.5%

1.1%

0.9%

3.3%

7.7%

2.5%

3.5%

35.0% 

1.7% 

8.0% 

1.9% 

19.4% 

4.3% 

10.9% 

24.8% 

5.2% 

Education 

Graduated, in post-secondary school

 secondary school 

16.7%

3

2.1%

Graduated

In secondary school

Dropout 

7.0%

41.2%

5.0%

4.4% 

45.3% 

48.2% 

Current activities

Employed full-time

raining 

None of the above 59.3%

2

1

51.7% 

Employed part-time 

Enrolled in school 

In vocational t

1.9%

10.1%

23.7%

13.6%

1.9% 

5.1% 

6.5% 

9.1% 

Ever arrested 18.6% 31.8% 

While more of the group off SSI are working and a smaller percentage of the group 

off SSI are in households below the poverty level, their total household income is below 

5
that of the group still on SSI and is only slightly above the poverty level. More than 

have no health insurance. Only half of them have graduated fro

half 

m secondary school. 

More than half of the off-SSI group are neither employed, enrolled in school, nor in 

voc

s data on the health and disability of the post-transition group. 

hose off SSI have fewer health care needs than those still on SSI, but they still have a 

gnificant level of needs. 

On SSI Off SSI

ational training. Nearly a third of them have been arrested. 

The NSCF also provide

T

si

Has a special care need 88.3% 71.4% 

Needs or uses more services compared 

with children of same age 66.5% 43.6% 

Needs or uses medicine prescribed by a doctor 56.4% 36.3% 

Limited in ability to do things like most children of same age 69.7% 48.7% 

Needs or gets special therapy 27.2% 13.8% 

Needs or gets mental health treatment or counseling 41.5% 33.0%

Uses special medical equipment 16.1% 7.8% 

Needs help with personal care needs (eating, bathing, 

dressing, getting around inside home) 28.9% 5.4% 

Needs help with handling routine needs (preparing meals, 

managing money,

 

 doing housework, managing medication) 74.8% 41.1% 

THE ROLE OF THE EDUCATIONAL SYSTEM

The cash benefits that SSI youth receive, and the Medicaid health insurance that 

almost all of them also receive, are clearly important to them and to their families. But 

ose benefits do not themselves prepare SSI youth for adulthood. Other institutions, 

reparation. 

Ind

s’ 

me 

ngs 

ent of our national policy of ensuring equality of opportunity, full 

participation, independent living, and economic self-sufficiency for individuals with 

disa

 Program 

th

particularly the educational system, play a greater role in that p

ividuals with Disabilities Education Act Requirements 

The Individuals with Disabilities Education Act (IDEA) establishes school system

responsibilities for special education students. IDEA was passed in 1975 and beca

effective in 1978. Major amendments were passed in 1997. Congressional findi

accompanying those amendments state: “Disability is a natural part of the human 

experience and in no way diminishes the right of individuals to participate in or 

contribute to society. Improving educational results for children with disabilities is an

essential elem

bilities.” 

IDEA guarantees that all students with disabilities aged 3 through 21 have the right to

a “free and appropriate public education,” ending when a student graduates with a regular 

high school diploma. IDEA applies to students who have a disability resulting in a need

for special education and related services. The written Individualized Education

(IEP) is the focal point of the IDEA. Developing the IEP begins with a comprehensive

6
individual evaluation. The IEP is to set out in detail the nature of the student’s 

educational needs, the services to be provided, and specific goals for the student. 

IEP must also include provisions to assist students in making the transition from schoo

adult livin

The 

l to 

g. Beginning at 16, the IEP is to include a full transition services plan, 

including identifying the responsibilities of agencies other than the schools to provide 

serv

eds and to 

“prepare them for further education, employment and independent living.” Schools were 

req

ohool staff in the NLTS2 indicate that transition planning does in fact take place for 

r olds have transition plans. 

Ind

what 

 Parents reported that they were not as involved as they would like in IEP 

decisions. They said that the school mostly decides students’ goals for about half the 

stud

ky, 14 

dress each of the students’ 

needs identified on the IEP. State violations of content requirements were often 

wid

reduce 

 for many children. A student in a poor 

 

ices. 

The Individuals with Disabilities Education Improvement Act, passed in 2004, 

reauthorized IDEA. It clarified that one of the primary purposes of the law is to ensure a 

free appropriate public education designed to meet each student’s unique ne

uired to set clear and specific transition goals beyond secondary school. 

The requirements of IDEA are clearly of great potential benefit to SSI beneficiaries 

who receive special education as they approach the transition to adulthood. Not all SSI

youth are in special education, but a large percentage are. It is estimated that about tw

thirds to three-quarters of SSI youth ages 14 to 17 are in special education. Data from 

sc

special education students and that 96 percent of 17 to 18 yea

ividuals with Disabilities Education Act Performance 

The quality of this planning, however, is probably not what Congress envisioned 

when it passed the IDEA legislation. School staff reported in the NLTS2 that nearly 

20 percent of secondary school students have transition programs that are only some

well suited or not at all well suited to meet their transition goals. Research has shown 

that parent participation in transition planning is an important element in successful 

transitions. School staff reported in the NLTS2 that students in the lowest household

income group were less likely to have parents that actively participated in transition 

planning. 

ents. 

The content of the IEPs is often defective. A National Council on Disability (NCD) 

report in 2000 stated that the Department of Education had found 20 States out of 

compliance with standards on the content of IEPs.4

 For example, of 17 IEPs reviewed in 

a New Jersey school district, 16 showed identical goals and objectives. In Kentuc

of 53 IEPs reviewed did not include goals and objectives to ad

espread, affecting a large percentage of IEPs in the State. 

Whatever the quality of the planning process or the IEPs, the services themselves may

not be available. SSI children, especially those in low-income areas, may not have 

sufficient supports available for their IEPs. This lack of availability, in turn, may 

the expectations that parents and school staff have

4

 National Council on Disability, Back to School on Civil Rights, January 25, 2000. 

7
school distric for 

independent living and employment after age 18. 

ves 

y for SSI or for 

Medicaid. Students and their families lack knowledge as well. The NCD’s Youth 

Adv

rce 

s is 

rmation spread among families about disability 

benefits is either incomplete or incorrect. This misinformation is often reinforced, the 

Cen

efits planning and assistance services. As of September 30, 2005, these 

projects had provided services to about 14 thousand persons between ages 14 and 22, 

onl

 the part 

nd 

receiving SSI, the usual myths about benefits and work often persist, with parents often 

 of an immediate end to cash benefits and 

 

t may not have access to needed services, reducing expectations

KNOWLEDGE GAPS IN THE TRANSITION PROCESS 

Studies of the transition process have questioned whether school personnel have, or 

should be expected to have, the needed level of knowledge about SSI work incenti

and the redetermination process to help youth and their families make informed 

decisions. Uncertainty about program rules is likely to make beneficiaries and families 

reluctant to take steps that they fear may jeopardize their eligibilit

isory Committee reported that students and their families lacked information about

IDEA, preventing them from obtaining needed support services.5

Beneficiaries and their families also lack information about the transition process, 

work incentives, and the impact of work on benefits. The Benefits Assistance Resou

Center at Virginia Commonwealth University reports that beneficiaries and their families 

ordinarily do not know that the age-18 redetermination is required or how it differs from 

regularly scheduled continuing disability reviews that they may have had under the 

childhood disability standard. The Center reports that folklore about disability benefit

very influential and that most of the info

ter says, by school personnel, vocational rehabilitation counselors, and even SSA

employees. 

Under the Ticket to Work and Work Incentives Improvement Act of 1999, SSA 

awarded cooperative agreements to community organizations in every State, known as

Benefits Planning, Assistance, and Outreach (BPAO) projects. These BPAO projects 

were established to provide all disability beneficiaries, including transition-aged youth, 

access to ben

y 7.3 percent of the total population served and a small fraction of the transition-aged 

population.6

Other observers have also commented on the lack of accurate information on

of beneficiaries and caregivers. It has been reported that frequently misinformation a

fear of losing benefits have led beneficiaries to limit work alternatives, refusing 

employment despite a desire to enter the workforce.7

 Others speak of a need to 

“demystify” the age-18 redetermination process. “When the child or young adult is 

resistant to having their child work for fear

 nd Others 

 (eds.), Impact: Feature Issue on Young Adults with 

5 Perspectives on the Individuals with Disabilities Education Act: Youth with Disabilities a

Respond, November 20, 2002. 6 Social Security Disability Benefit Issues Affecting Transition Aged Youth, January 2006. 7

 Valerie Brooke, “Benefits Planning and Outreach Projects: Providing Beneficiaries with Information,” in 

V. Gaylord, T.P. Golden, S. O’Mara, and D.R. Johnson

Disabilities & Social Security Administration Employment Support Programs, Minneapolis: University of

Minnesota, Institute on Community Integration, 2002. 

8
Medicaid.”8

 The National Center on Secondary Education and Transition lists myths th

may discourage SSI youth from taking a job: that people who work are not eligible for 

SSI; that people who work will lose cash benefits and/or Medicaid; and that benefits will 

stop if they enter a training program.

at 

of 

ad ever heard of SSA work incentives or discussed 

em with an SSA representative. 

CLOSING THE KNOWLEDGE GAPS 

SSA and its partners should implement an early notification process. 

ilies 

e 18 

his represents a waste of their young lives and a waste of a valuable national 

asset. 

re by 

and the educators who assist them need good information 

in order to make good choices. 

their 

t 

 work incentive liaison as a knowledgeable source of 

information on work and benefits. 

propriate 

 

9

 NSCF data support these statements about lack 

information. Loprest and Wittenburg report that only 22 percent of pre-transition SSI 

recipients surveyed said that they h

th

SSA has a limited but clear and important role in transitioning SSI youth to 

adulthood. The educational system must continue to play the leading role in the 

transition process, but SSA can help both educators and beneficiaries and their fam

by making information available. We have frequently stated that SSA’s disability 

programs should be more work-oriented. The experience of the age-18 redeterminations 

since 1996 has been that about a third of SSI youth have their benefits stopped at ag

because it is determined that they do not have a disability that prevents them from 

working. Unfortunately, they are transitioning into a young adulthood in which recent 

data show only 22 percent of them employed full-time and 15 percent employed parttime. T

The SSI youth transition process is an opportunity to change this gloomy pictu

helping a portion of SSI youth make a transition to self-supporting employment. 

Beneficiaries and their families 

We recommend that SSA begin a process of early notification of SSI youth and 

parents or caregivers on the subject of the age-18 redetermination. The first notice 

should be sent to beneficiaries when they turn 14, to let them know that the age-18 

redetermination will take place and to inform them about IDEA and how an IEP can help 

them prepare for the transition to adulthood. The second notice should be sent at age 16, 

reminding them about the age-18 redetermination, giving them further information about 

the IEP process and the transition plan it should include, and providing information abou

SSI work incentives and the effect of work on SSI benefits. The notice should also tell 

them how to contact their local SSA

SSA should also work with the Department of Education to identify ap

persons in the educational system to receive information about the age-18 

redetermination process, work incentives, and the effect of work on benefits. The 

8

 James R. Sheldon, Jr., and Thomas P. Golden, Conducting Outreach to Transition-Aged Youth, Cornell 

University Work Incentive Support Center, Policy and Practice Brief 25. 

9

 National Center on Secondary Education and Transition, Parent Brief, March 2003. 

9
appropriate educators s SA work incentive 

liaison for further information or for consultation about specific cases. 

s 

ce. 

nt 

I 

rk 

mewhat by some of the program simplifications we suggested last year in our 

statement on the SSI program. Other work incentives should also be re-examined. For 

exa

SSA has recently 

awarded a contract for a national evaluation of these projects. While we recognize that, 

 these 

o believe that the ultimate findings will be 

valuable to researchers and public policymakers in the long term. 

l 

limitations, lack of health insurance, and low income, it is possible that the health of those 

 

hould also be told how to contact their local S

ADDITIONAL RECOMMENDATIONS 

A fresh look at work incentives for youth in transition is needed. 

SSI work incentives are complex, and interactions with other means-tested program

make beneficiaries’ decisions about work even more complex. The effect of SSI work

incentives is reduced by potential reductions of benefits from other transfer programs, 

plus Federal, State, and local taxes, as well as the potential loss of medical insuran

This combination is equivalent to a high cumulative marginal tax rate for individuals 

receiving benefits from multiple programs. In our comments on the SSI program last 

year, we referred to a demonstration project known as Work Incentives for Participants in

the Florida Freedom Initiative, which will end in March 2007. Participating SSI 

beneficiaries will have an earned income disregard of $280, 4 times the amount in curre

law. This means that the first $280 of earnings per month will have no effect on their SS

benefits. We look forward to the results of this demonstration project. Increasing wo

incentives for all program participants would be expensive, but the expense could be 

offset so

mple, the student earned income exclusion ends at age 22, but the average age of 

entry to postsecondary education for students with disabilities who receive SSI benefits 

is 40.10

SSA is currently conducting youth transition demonstration projects in 6 States: 

California, Colorado, Iowa, Maryland, Mississippi, and New York. The demonstration 

projects will provide empirical evidence on the impacts of changes in SSI rules and 

enhanced coordination of services on work activity and earnings. 

because of the age of the target population, evaluating the implications for work for

young people will be a long process, we d

Publication and analysis of a broader range of data will foster better decisions by 

beneficiaries, families and policymakers. 

The data on age-18 redeterminations published in the Annual Report of the Supplementa

Security Income Program are helpful, but limited. To assist SSI youth, their families, and 

educators, SSA should add to the data it already publishes data on cessations and 

continuations by State and by type of disability. Given what we know about their health

10 The National Postsecondary Student Aid Survey obtained information on 50,000 undergraduate students 

in 2000. The mean age of postsecondary enrollment for all undergraduates with disabilities was 33 years; 

for SSI beneficiaries it was 40 years of age. Hugh Berry, Megan A. Conway, and Kelly B.T. Chang, 

“Social Security and Undergraduates with Disabilities: An Analysis of the National Postsecondary Student 

Aid Survey,” National Center on Secondary Education and Transition Information Brief, October 2004. 

10
whose benefits are terminated at age 18 may worsen to the point that they are eligible 

benefits. SSA should also include in the Annual Report of th

for 

e Supplemental Security Income 

Program data on the extent to which those terminated at 18 later apply for and receive 

ben

ven more powerful resource. SSA should use this resource and publish results for 

se by the wider research community. It should also make linked survey and administrative 

data available to qualified researche tent possible, consistent with privacy 

oncerns. 

n 

nt level 

 educational system has a 

major responsibility to prepare them for the transition to adulthood, but educators are not 

suff

enefits. 

e are aware that SSA is already hard-pressed to meet its current commitments. But we 

believe that the agency can help SSI youth transition to a more productive adulthood by 

taking on this more active role and that the Congress should support it in doing so. 

Hal Daub, Chairman 

Dorcas R. Hardy Barbara B. Kennelly 

David Podoff Sylvester J. Schieber 

efits again. Policymakers may want to consider options to assist that group in the 

transition process and prevent later dependence on benefits. 

The NSCF is an important resource that can provide policymakers with a great deal of 

insight into the workings of the SSI program and how it can be improved. SSA is to be 

commended for funding the survey. It should encourage researchers to make use of the 

public use data from the survey. Linking administrative data to the survey data makes the 

NSCF an e

u

rs to the greatest ex

c

CONCLUSION

The age-18 redetermination is a critical time in the life of a vulnerable population. 

Data from the NSCF show that most of those ages 19 to 23 whose SSI benefits have bee

stopped are not employed nor are they enrolled in school or in vocational training. 

Nearly half of them have dropped out of secondary school. Many have a significa

of health needs, but a majority have no health insurance. The

iciently informed about the SSI program and the advantages of work for SSI 

beneficiaries. Parents and caregivers also lack information. 

By taking a more active role in informing educators, parents, and caregivers, SSA can

help make an improvement in the lives of at least some of those who transition off b

W

11
 

APPENDIX TO SOCIAL SECURITY ADVISORY BOARD STATEMENT 

SSI Age-18 Redeterminations—

Outcomes by State

Data on outcomes by State show a 

considerable variation in cessation rates 

among the States. The following chart 

displays the initial and ultimate cessation 

rates for each State for FY 2003. The 

national cessation rate for the initial 

decision was 40.8 percent, and the State 

rates varied from 13.2 percent in 

Vermont to 54.9 percent in 

Mississippi. The ultimate cessation rate 

is the cessation rate after all appeals. 

The national rate was 30.5 percent, and 

State rates ranged from 2.6 percent in 

Vermont to 43.7 percent in Delaware. 

As with other aspects of decision making 

on disability, we are concerned by Stateto-State variations in this national 

program. We hope that the Disability 

Service Improvement plan that SSA will 

soon begin to implement will reduce this 

variation. 

0% 20% 40% 60%

WY

WI

WV

WA

VA

VT

UT

TX

TN

SD

SC

RI

PA

OR

OK

OH

ND

NC

NY

NM

NJ

NH

NV

NE

MT

MO

MS

MN

MI

MA

MD

ME

LA

KY

KS

IA

IN

IL

ID

HI

GA

FL

DC

DE

CT

CO

CA

AR

AZ

AK

AL

Initial Rate

Ultimate Rate

12