Annual Report of the

Supplemental Security Income Program

Social Security Administration

May 1998
.
LETTER OF TRANSMITTAL

COMMISSIONER OF SOCIAL SECURITY

Washington, D.C., May 29, 1998

President William J. Clinton

The White House

Washington, D.C.

The Honorable Newt Gingrich

Speaker of the House of Representatives

Washington, D.C.

The Honorable Albert Gore, Jr.

President of the Senate

Washington, D.C.

Gentlemen: 

I have the honor of transmitting to you the 1998 Annual Report of the Supplemental Security Income

Program (the second such report), in compliance with section 231 of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996.

Respectfully,

Kenneth S. Apfel

Commissioner

of Social Security
.
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 second of such reports, and following are some of its major highlights and

findings. 

Highlights of the SSI Program

 • The SSI program is a nationwide Federal assistance program administered by the Social Security Administration (SSA) that guarantees a minimum level of income for needy aged, blind, or

disabled individuals. 

 • In January 1998, 6.2 million individuals received monthly Federal SSI payments averaging

$335. 

 • Federal expenditures for cash payments under the SSI program during calendar year 1997

totaled $26.7 billion, and the cost of administering the SSI program in fiscal year 1997 was $2.1

billion.

Major Findings of the Report

 • Throughout the 25-year period ending in 2022, the SSI program is estimated to grow largely due

to the overall growth in the U.S. population. By 2022, the Federal SSI recipient population is

estimated to reach 7.2 million. 

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

declined from its 1996 level of 2.3 percent to 2.2 percent in 1997, and is projected to remain fairly

level at roughly 2.2 percent of the population through 2022. 

 • Federal expenditures for SSI payments in calendar year 1998 are estimated to total $27.5 billion,

an increase of roughly $800 million from 1997 levels. Short-term declines in SSI program expenditures estimated in the 1997 Annual Report as the result of changes to the program enacted in

1996 have been partially reversed by 1997 legislation (Public Law 105-33) which re-established

eligibility for certain noncitizens.

 • Growth in SSI program outlays during the next 25 years is projected to remain relatively modest. In constant 1998 dollars, the cost of the program is projected to increase to $33.2 billion in

2022. 

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

decline over time, from the current level of 0.33 percent of GDP in 1997 to 0.27 percent of GDP by

2022. 
.
(VII)

CONTENTS

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

II. HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

A. RECENT PROGRAM EXPERIENCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

B. SSI LEGISLATION SINCE THE 1997 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . 3

C. CURRENT ISSUES FACING THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

D. KEY RESULTS FROM THE 25-YEAR FORECASTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Special Provisions for Disabled People Who Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

7. Vocational Rehabilitation Referral/Reimbursement. . . . . . . . . . . . . . . . . . . . . . . . . . . 14

F. ADMINISTRATION OF THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1. Application Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2. Determinations of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

3. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

4. Appeal Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

5. Attorney Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

6. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

2. Mandatory State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . 17

3. Administration of State Supplementary Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

4. Mandatory Passalong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

H. COORDINATION WITH OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

1. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2. Medicaid Determinations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
(VIII)

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 1998-2022 . . . . 21

A. ECONOMIC AND DEMOGRAPHIC ASSUMPTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . 21

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM . . . . . . . . . . . . . . . . . . . . . . . 24

C. FEDERAL PAYMENTS UNDER SSI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF 

GROSS DOMESTIC PRODUCT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

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

AND BENEFICIARY SERVICES COSTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

V. APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

1. Basic Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

2. Other Eligibility Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

a. Citizenship and Residence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

b. Other Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

c. Drug Addiction and Alcoholism. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . 48

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

3. Federal Benefit Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

4. Federal Benefit Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

5. Exclusions From Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

a. General Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

6. Limits and Exclusions From Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

a. General Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . 58

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

9. State Supplementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

C. HISTORICAL ALLOWANCE DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

D. HISTORICAL REDETERMINATION AND 

CONTINUING DISABILITY REVIEW DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
(IX)

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . 76

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . 76

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . 78

2. Vocational Rehabilitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

F. INVOLVEMENT OF SSI BENEFICIARIES IN OTHER PROGRAMS . . . . . . . . . . . . . . 80

G. BIBLIOGRAPHY OF RESEARCH ON RELATED TOPICS . . . . . . . . . . . . . . . . . . . . . . 81

1. Research Topics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

a. Policy Evaluation of the Effects of the 1996 Welfare Reform Legislation on

SSI Benefits for Children with Disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

b. Policy Evaluation of the Overall Effects of Welfare Reform on 

SSA Programs—Phase I Evaluation Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

c. Policy Evaluation of the Effects of Legislation Prohibiting the 

Payment of Disability Benefits to Individuals Whose Disability is 

Based on Drug Addiction or Alcoholism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

d. Project NetWork. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

2. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

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

TABLES

III.H1 SSI State Supplementation and Coordination With Other Programs. . . . . . 20

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

as Projected for the Intermediate Assumptions of the 

1998 OASDI Trustees Report, as of July 1, 1974-2022. . . . . . . . . . . . . . . . . . 22

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

Estimated on the Basis of the Intermediate Assumptions of the 

1998 OASDI Trustees Report, 1974-2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2022 . . . . . 25

IV.B2 SSI Federally-Administered Awards, Calendar Years 1974-2022 . . . . . . . . . 26

IV.B3 SSI Federally-Administered Terminations, Calendar Years 1974-2022 . . . . 28

IV.B4 SSI Recipients With Federal Benefits in Current-Payment Status 

as of December, 1974-2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

IV.B5 SSI Recipients With Federal Benefits in Current-Payment Status 

as a Percentage of Selected Social Security Area Population Totals, 

as of December, 1975-2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

IV.B6 SSI Recipients With Federally-Administered State Supplementary 

Benefits Only, in Current-Payment Status as of December, 1974-2022 . . . . 33

IV.B7 SSI Recipients With Federally-Administered Benefits in 

Current-Payment Status as of December, 1974-2022. . . . . . . . . . . . . . . . . . . 34

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-98 . . . . . . 35

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-98 . . . . . . . . . 36

IV.C3 SSI Federal Payments in Constant 1998 Dollars, 

Calendar Years 1974-2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

IV.C4 SSI Federally-Administered State Supplementary Payments in 

Current Dollars, Calendar Years 1974-97. . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

IV.C5 SSI State-Administered Payments in Current Dollars, 

Calendar Years 1974-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2022 40

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-98 . . . . . . . . . . . . . . . 42

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

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

 by Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

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

by Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
(XII)

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-97 . . . . . . . . . . . . . . . . 70

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

Medical Reviews by Fiscal Year of Initial Decision and Level of Decision . 72

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

Medical Reviews by Fiscal Year of Initial Decision and Level of Decision . 74

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

as of December, 1987-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

V.E2 SSI Federally-Administered Blind or Disabled Individuals With 

SSI Recipient Status Participating in Other Work Incentives 

as of December, 1990-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

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

Disabled Working Recipients, as of December, 1987-97 . . . . . . . . . . . . . . . . . 78

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, 

Fiscal Years 1987-97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications, Calendar Years 1975-2025 . . . . . 26

IV.B2 SSI Federally-Administered Awards, Calendar Years 1975-2025 . . . . . . . . . 27

IV.B3 SSI Federally-Administered Terminations, Calendar Years 1975-2025 . . . . 29

IV.B4 SSI Recipients With Federal Benefits in Current-Payment Status 

as of December, 1975-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

IV.B5 SSI Recipients With Federal Benefits in Current-Payment Status 

as a Percentage of Selected Social Security Area Population Totals, 

as of December, 1975-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

IV.C1 SSI Federal Payments in Constant 1998 Dollars, 

Calendar Years 1975-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

IV.D1 SSI Federal Payments as a Percentage of GDP, 

Calendar Years 1975-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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

as of December, 1987-97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
.
1

I. INTRODUCTION

The Supplemental Security Income (SSI) program was established by Congress in 1972, 1 with payments beginning in January 1974, and 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, as of January 1998, a monthly Federal cash payment of $494 ($741 for a couple if

both members are eligible). Since 1975, these Federal SSI benefit rates have been increased to reflect

changes in the cost of living at the same time, and by the same percentage, as have 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 “maintenance-of-effort” provisions in the original SSI legislation.

In recent years, the SSI program has undergone significant changes both as a result of legislation,

and due to certain Federal court decisions. In particular, during 1996, there were two pieces of legislation 2 that had a major impact on the payment provisions under SSI. Subsequent legislation 3

enacted in 1997 substantially modified the impact of the 1996 legislation. In addition, under section

231 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Public Law 104-

193), the Commissioner of Social Security is required to submit a report on the SSI program to the

President and Congress. Such report is to be submitted annually no later than May 30 of each year.

Pursuant to this legislative mandate, this is the second in a series of such annual reports on the SSI

program. The legislative mandate is very detailed concerning certain types of information about SSI

that should be provided in the report. More specifically, section 231 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; 

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

 • 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 individual members of the Social Security Advisory Board, if so desired by any such Board member or a joint

report if one is agreed upon by the Board.

As discussed in the 1997 Annual Report, much of the required information had to be developed for

the first time. For example, while historical program data are available from summaries of administrative records and have previously been published in a number of documents, many of the required

subcategory totals have not always been collected on a consistent basis. To provide the detailed data

for this report, extensive work was necessary to prepare retrospective estimates based on existing

 1 Public Law 92-603, enacted October 30, 1972.

 2 Public Law 104-121, enacted March 29, 1996, and Public Law 104-193, enacted August 22, 1996. The provisions of these two pieces of legislation

are outlined in section II.

 3 Public Law 105-33, enacted August 5, 1997.
1998 SSI Annual Report

2

historical totals. Furthermore, except for the 75-year projections prepared for the OASDI 1 and Medicare 2 Trustees Reports, most routine forecasts for government programs extend only 5-10 years into

the future for use in connection with the President’s Budget. Thus, mathematical models capable of

projecting SSI program costs 25 years into the future did not exist at the time of the enactment of

Public Law 104-193. For purposes of the longer-range forecasts required in this report, SSA’s Office of

the Chief Actuary extended the computations of its Budget model to encompass a 25-year period. As

discussed in greater detail in section IV, the resulting forecasts should be considered rough approximations beyond the first 5-10 years. Research and model development work has been initiated by the

Office of the Chief Actuary in an effort to enhance these 25-year forecasts. Furthermore, the Office of

Research, Evaluation, and Statistics has begun an extensive project to analyze and validate historical

data for the SSI program. Future editions of this report will reflect the results of our efforts in both

these areas.

In responding to each of the additional specific requests for information, every effort has been made

to provide the best information available at this time. As mentioned in the previous paragraph, it is

expected that in future versions of this annual report, improvements will be made 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.

In broad outline, the contents of the remainder of this report are as follows:

 • Section II presents highlights of recent SSI program experience, a summary of important

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

and a summary of the key results from the 25-year forecasts.

 • Section III contains a comprehensive description of the SSI program.

 • Section IV presents the details of our 25-year forecasts of SSI program participation and expenditures.

 • Section V contains a series of technical appendices responding to each of the remaining legislative mandates for information about SSI. 

 1 The 1998 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, issued

April 28, 1998.

 2 The 1998 Annual Report of the Board of Trustees of the Federal Hospital Insurance Trust Fund and The 1998 Annual Report of the Board of

Trustees of the Federal Supplementary Medical Insurance Trust Fund, issued April 28, 1998.
3

1998 SSI Annual Report

II. HIGHLIGHTS

A brief history of the SSI program is presented in section III, including descriptions of the eligibility

criteria and other features of the program, and rationale for why some of those provisions were

included in the SSI statute. Another aspect of this picture, however, is an indication of how SSI

affects the individuals it is intended to serve and the cost of paying these benefits, along with a discussion of current issues facing SSA in administering the program. 

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • On average during calendar year 1997, 6.3 million aged, blind, or disabled individuals received

Federal SSI benefits on a monthly basis. An estimated 7.0 million aged, blind, or disabled individuals received at least 1 month’s Federal SSI benefit during the year. 

 • Federal expenditures for cash payments under the SSI program during calendar year 1997

totaled $26.7 billion. 

 • On average during calendar year 1997, 2.4 million aged, blind, or disabled individuals received

Federally-administered State supplementary payments on a monthly basis. An estimated 2.7

million individuals received at least 1 month’s Federally-administered State supplementary payment during calendar year 1997. 

 • State expenditures for Federally-administered supplements during calendar year 1997 totaled

$2.9 billion, excluding fees for Federal administration. 

 • The cost of administering the SSI program in fiscal year 1997 was $2.1 billion. 

B. SSI LEGISLATION SINCE THE 1997 ANNUAL REPORT

Legislative changes to the SSI program in 1997 can be characterized generally as modifications to

1996 legislation. 1 Public Law 105-33, enacted on August 5, 1997, included substantive changes in the

noncitizen eligibility provisions and technical changes in other program features.

Eligibility for noncitizens—Public Law 104-193 (as amended by Public Law 104-208) generally

prohibited SSI payments to immigrants until they attain U.S. citizenship. That law provided certain

exceptions to this prohibition, and Public Law 105-33 expanded those categories for which SSI payments to noncitizens may still be made. The additional exceptions include:

 • “Qualified aliens” lawfully residing in the United States who were receiving SSI benefits on

August 22, 1996, remain eligible for SSI—i.e., eligibility “grandfathered”;

 • “Qualified aliens” who were not receiving SSI, but who were lawfully residing in the United

States as of August 22, 1996, would be eligible, without becoming a U.S. citizen, for SSI in the

future if they meet the SSI definition of disability or blindness;

 • “Nonqualified aliens” receiving SSI as of August 22, 1996, remain eligible for benefits until September 30, 1998; 2 

 1 Public Law 104-121 and Public Law 104-193.

 2 Public Law 104-193 originally specified benefit eligibility for aliens found ineligible under its new standards would expire on August 22, 1997.

Public Law 105-18 extended eligibility to September 30, 1997.
1998 SSI Annual Report

4

 • the 5-year eligibility period for refugees, asylees, and noncitizens who have had their deportations withheld is extended to 7 years, and Cuban and Haitian entrants and Amerasian immigrants also may be eligible during their first 7 years in the United States; and

 • noncitizen members of Federally recognized Indian tribes, and certain American Indians born in

Canada, are exempt from the SSI restrictions that apply to other noncitizens.

Other provisions—The date by which redeterminations for disabled children had to have been completed was extended from August 22, 1997, to February 22, 1998, 1 and modifications were made as to

when redeterminations must be done for SSI recipients who turn age 18 and when continuing disability reviews are to be done for certain low-birth-weight babies. In addition, although not an SSI provision, States are required to provide Medicaid coverage for disabled children who were receiving SSI

payments and would have continued to be eligible for such payments except that their eligibility

terminated because they did not meet the more strict childhood disability criteria in Public Law 

104-193.

The effective date of the SSI drug addict and alcoholic provision in Public Law 104-121 was clarified,

and the applicability of the treatment and representative payee fee provision was expanded.

A number of technical and conforming amendments were made with regard to the existing dedicated

savings accounts, noncitizens, fugitive felons, and prisoners provisions, and the fees for SSA’s administering State supplementary payments were increased.

C. CURRENT ISSUES FACING THE SSI PROGRAM

SSA clearly faces many challenges in administering the complex provisions of the SSI program. 2 In

an effort to deal with these challenges, the Commissioner has undertaken a major initiative to consolidate the effects of recent successful efforts to deal with problems of SSI administration, and to provide a coordinated vision for the future of the SSI program. In attempting to address issues of SSI

administration, it is essential to recognize that SSI is a very important program that provides nearly

6.5 million aged, blind, and disabled individuals with basic necessities of food, clothing, and shelter.

These individuals are among the most vulnerable Americans, who have little in the way of income or

resources. For them, SSI is truly the program of last resort and is the safety net that protects them

from complete impoverishment. Nevertheless, SSA in its stewardship role for the SSI program has an

equally important responsibility to assure that limited government resources are spent appropriately.

Therefore, SSA has developed a comprehensive long-term approach to (1) improve SSI payment accuracy, (2) step up efforts to verify continuing disability eligibility, (3) expand opportunities for disabled

beneficiaries to return to work, (4) address the SSI program’s potential vulnerability to fraud, and (5)

enhance our overpayment recovery efforts. This multifaceted approach to improving SSA’s administration of the SSI program has been designated as one of the agency’s highest priorities.

 1 Redeterminations not completed by this date must be done as soon thereafter as practical.

 2 For example, in February 1997, the General Accounting Office (GAO) designated the SSI program as a high risk area, citing concerns in three

broad programmatic areas: (1) financial eligibility, (2) continuing disability eligibility, and (3) return-to-work.
5

1998 SSI Annual Report

D. KEY RESULTS FROM THE 25-YEAR FORECASTS

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

 • Following a decline in the SSI recipient population in 1997 due to the combined impact of Public

Law 104-121 and Public Law 104-193, growth in the SSI rolls is expected to resume largely due

to the growth in the U.S. population. By 2022, the Federal SSI recipient population is estimated

to reach 7.2 million. Expressed as a percentage of the total U.S. population, the number of Federal SSI recipients is projected to remain fairly level at roughly 2.2 percent of the population

through 2022. 

 • Federal expenditures for SSI payments in calendar year 1998 are estimated to total $27.5 billion,

an increase of roughly $800 million from 1997 levels. In order to provide estimates of future

expenditures under the SSI program over 25 years which can be meaningfully compared, projections of Federal SSI expenditures are presented in constant 1998 dollars. Expressed in these

terms, growth in SSI program outlays during the next 25 years is projected to remain relatively

modest, roughly in line with overall growth in the U.S. population. In constant 1998 dollars, the

cost of the program is projected to increase to $33.2 billion in 2022. 

 • Furthermore, when compared to the Gross Domestic Product, Federal SSI expenditures are projected to decline over time, from the current level of 0.33 percent of GDP in 1997 to 0.27 percent

of GDP by 2022.
1998 SSI Annual Report

6

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM 

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. In January 1998, 6.5 million individuals

received Federally-administered monthly SSI benefits 1 averaging $358.

A. BACKGROUND

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 was intended to supplement the incomes of individuals who were either ineligible for Social

Security or whose benefits could not provide a basic living. 

This means-tested assistance—also known as categorical adult assistance—actually comprised three

separate programs—Old-Age Assistance (OAA), Aid to the Blind (AB), and Aid to the Permanently

and Totally Disabled (APTD). Despite substantial Federal financing, these programs were essentially

State programs; Federal law established only broad guidelines and assistance. Federal financing was

open-ended in the sense that the Federal Government would provide matching funds to support

whatever benefit levels the States established. Federal law specified no maximum or minimum standards. Consequently, each State was responsible for deciding its own standards for determining who

would get assistance and how much they would get. As a result, there were differing eligibility

requirements and variations of payment levels from State to State. 

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

from within and outside of government. Some of the criticism was directed at the “crazy quilt” eligibility requirements and benefit 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. The disparity in the degree of Federal financial support provided States also

was an acknowledged problem. 

Responding to these concerns, Congress passed and the President approved the SSI program (Public

Law 92-603, enacted October 30, 1972), which reversed the historic 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 receives

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; 

 1 Including Federally-administered State supplementary payments.
7

1998 SSI Annual Report

 • 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 

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

programs. 

Although SSI has undergone several significant changes since its enactment in 1972, these principles

have been retained. The following description of the SSI program is organized according to the originating principles. 

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA

Prior to the SSI program, aged, blind, or disabled individuals may or may not have been eligible for

Federally-funded adult assistance depending on the State in which they lived. Benefit amounts also

varied from State to State. The SSI program replaced the State-run programs of assistance with a

program having nationally 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 Federal assistance. Effective January 1, 1998, the countable income

limit for individuals is $494 a month and $741 a month for eligible couples. The resource limit is

$2,000 in countable resources for individuals and $3,000 for couples;

 • Sixty-five as the minimum age limit for assistance based on age;

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

the same as those used for the Social Security Disability Insurance program. In order to be considered disabled, an individual must have a medically determinable physical or mental impairment which is expected to last or has lasted at least 12 continuous months or result in death and

(1) if 18 or older prevents him/her from doing any substantial gainful activity 1 or (2) if under 18

results in marked and severe functional limitations. 2 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. 3 In order to be considered blind, an individual’s vision may not be better

than 20/200 or have a limited visual field of 20 degrees or less with the best correction; and

 • 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 outside the United

States who is under section 289 of the Immigration and Nationality Act (INA) or who is a member of a Federally recognized Indian tribe under section 4(e) of the Indian Self-Determination

and Education Assistance Act, or be a qualified alien in one of the following categories: 4 

 1 “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. Generally earnings from work

activity of over $500 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $500 a month, he/she generally would not

be considered disabled. However, if an SSI recipient is earning over $500 a month, he/she could continue to be eligible for SSI. (See “Incentives for

Work and Opportunities for Rehabilitation” section III.E.)

 2 The definition of disability and blindness for individuals under age 18 reflects amendments made by Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Prior to this, the law required a medically determinable physical or mental impairment

of comparable severity to that required for individuals 18 or older.

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

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

1996 as amended by Public Law 104-208 and Public Law 105-33. Prior to this, the law permitted SSI eligibility for individuals who were residents

of the United States and—citizens or nationals of the United States; aliens lawfully admitted for permanent residence in the United States; or

aliens permanently residing in the United States under color of law.
1998 SSI Annual Report

8

— a noncitizen who was lawfully residing in the United States and who was receiving SSI benefits on August 22, 1996;

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

on August 22, 1996;

— refugees (eligibility limited to the 7-year period after their arrival in the United States);

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

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

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

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

is withheld);

— Cuban and Haitian entrants under section 501(e) of the Refugee Assistance Act of 1980 (eligibility 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 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; and

— lawful permanent residents who earn, or can be credited (from their spouses or parents) with,

40 qualifying quarters of earnings.

Note: Qualified alien status includes noncitizens who have been battered or subject 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. However, to be eligible to

receive SSI benefits, these noncitizens also must be in one of the categories listed above.

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 United States, the District of Columbia or the

Northern Mariana Islands. An individual also must be physically present in the United States 1

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. 

— Students studying abroad for not more than 1 year also may continue to be eligible for payments if the studies are sponsored by a U.S. educational institution but cannot be conducted

in the United States.

D. ASSISTANCE OF LAST RESORT

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

can obtain. The amount of an individual's income and resources are the measure of his/her need for

assistance. 

 1 Fifty United States, the District of Columbia or the Northern Mariana Islands.
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1998 SSI Annual Report

1. Income 

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

SSI benefit. As countable income increases, an individual’s SSI benefit amount decreases. 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 rate (currently $494 for an individual; $741 for an eligible couple) 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 onethird in lieu of counting the actual value of the support and maintenance as unearned income. The

value of food, clothing, or shelter-related items the individual receives in kind from persons other

than the householder (including in-kind assistance from outside the household in which he/she lives)

is counted as unearned income. However, the amount that is countable is limited to an amount equal

to one-third of the applicable Federal benefit rate plus $20 ($184.66 in 1998). 

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. The distinction between earned and

unearned income is significant because different exclusions apply to each type of income. 

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

received cannot be used as, or to obtain, food clothing or shelter, it will not be considered as income.

For example, if someone pays an individual’s medical bills, or offers free medical care, or if the individual receives money from a social services agency that is a repayment of an amount he/she previously spent, that value is not considered income to the individual. In addition, some items that are

considered to be income are excluded when determining the amount of an individual’s benefit.

Income Exclusions 1 

The principal earned income exclusions are: 

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

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

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

individual, and 

 • infrequent or irregularly received income ($10 or less a month). 

The principal unearned income exclusions are: 

 • the first $20 per month, 2 

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

individual, 

 • State or locally funded assistance based on need, 

 • rent subsidies under HUD programs and the value of food stamps, and 

 • infrequent or irregularly received income ($20 or less a month). 

 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.
1998 SSI Annual Report

10

2. Resources 

The amounts of individuals’ resources are used to determine whether they are eligible for SSI in any

given month. SSI law states that eligibility is restricted to individuals who have countable resources

(determined on a monthly basis) not exceeding $2,000, or $3,000 in the case of couples, but does not

define what resources are. The law does stipulate what items are to be excluded from resources. 

Regulations stipulate that a resource is cash or other liquid assets or any real or personal property

that individuals (or their spouses) own and could convert to cash to be used for their support and

maintenance. This definition is consistent with the general philosophy of the SSI program that only

items that can be used for an individual’s food, clothing or shelter should be used in determining his/

her eligibility and benefit amount. Not all resources an individual owns are counted. The value of an

item may be totally excluded or counted only to the extent that its value exceeds specified limits.

Resource Exclusions 1 

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 (plus accrued interest), 

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

 • an automobile depending upon its use, otherwise, the current market value not in excess of

$4,500, 

 • property essential to income producing activity, and 

 • resources set aside to fulfill a plan to achieve self-support. 

3. Filing for Other Benefits 

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

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

resources, SSI pays what is necessary to bring an individual to the statutorily prescribed income

“floor.” In keeping with this principle, SSI law requires that SSI applicants file for all other benefits

for which they may be entitled. 

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 longstanding 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;

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

1998 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); 

 • 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; or

 • the recipient was eligible under section 1619(a) or (b) 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).

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 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. 1 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 applied. In addition, a living allowance is provided for the ineligible spouse, as well as

any ineligible children under age 21 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 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 left.
1998 SSI Annual Report

12

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 21 who is living in the household. Deeming from an eligible parent to a child

would continue if the parent is absent from the household but the absence is temporary or is due

solely to active duty assignment as a member of the U.S. Armed Forces. If a child lives in a household

in which all members are receiving public assistance benefits, that child is not considered to be

receiving any support and deeming would not apply. 

c. Sponsor-to-Alien Deeming 

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

income and resources are deemed and the length of the deeming period depend on whether the sponsor signed a legally enforceable affidavit of support 1 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 country under legally enforceable affidavits of support, deeming

generally applies until the noncitizens become U.S. citizens. Unlike spouse-to-spouse, parent-to-child,

and three-year sponsor-to-alien deeming, no living allowances are provided for the sponsor or the

sponsor’s family. 

For noncitizens who were admitted into the United States under a legally enforceable affidavit of

support, 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. (After 1996, a quarter 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. SSI 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 (INS) began using the new, legally enforceable affidavits on December 19, 1997. However, if a

potential immigrant had a visa issued before that date, the sponsor would sign an old affidavit even if the affidavit was signed after December 19,

1997.

 3 For a temporary period—January 1994 through September 1996—the deeming period was 5 years.
13

1998 SSI Annual Report

1. Earned Income Exclusion 

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

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

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

SSI recipients who are working will be rewarded for their efforts by having greater total income than

those who do not work.

2. Impairment-Related Work Expense Exclusion 

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

needs in order to work are excluded from earned income in determining monthly countable income. 

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

devices, equipment, prostheses 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 

The work expense provision for individuals who are blind is more liberal than the impairment-related

work expense provision for individuals who are disabled. Any income that a blind individual uses to

meet expenses relating to work is not counted 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 and is intended to help defray the cost of his/her educational training.

Up to $400 of earned income per month but no more than $1,620 per year may be excluded. 

5. Plan for Achieving Self-Support 

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

resources to get a specific type of job or to start a business. This may involve setting aside funds for

education or vocational training. Funds can even be set aside to purchase work-related equipment or

pay for transportation related to the work goal. The income and resources that are set aside are

excluded under the SSI income and resources tests. 

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

for a clearly identifiable accounting for the funds which are set aside. The PASS also 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
1998 SSI Annual Report

14

over the substantial gainful activity limit (currently $500 a month) can receive special cash benefits

as long as they:

 • continue to have the disabling condition;

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

income counting rules; and

 • meet all other nondisability requirements for SSI payment.

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

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

 • whose earnings preclude any SSI payment but are not sufficient to provide a reasonable equivalent of the SSI, social services, and Medicaid benefits that the individuals would have in the

absence of earnings, and 

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

Medicaid benefits. 

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

 • have a disabling condition;

 • need Medicaid in order to work;

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

which would be lost without assistance; 

 • meet all nondisability requirements for SSI payment other than earnings; and 

 • have received a regular SSI cash payment in a previous month within the current period of eligibility. (In some States, the individual must have qualified for Medicaid the month preceding the

first month of 1619 eligibility.) 

In determining whether individuals’ earnings are not sufficient to provide them with the equivalent

benefits they would be eligible for if they stopped working, their earnings are compared to a threshold

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

threshold. If earnings exceed the State threshold, an individualized assessment of the need for Medicaid is made and 1619(b) status may continue. 

7. Vocational Rehabilitation Referral/Reimbursement 

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

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

SSA reimburses 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. 

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 an approved

VR program and completion of the program would increase the likelihood that they will be permanently removed from the SSI rolls. SSI benefits and Medicaid generally continue until the rehabilitation services are completed or until the individual ceases to participate in the program. 
15

1998 SSI Annual Report

Individuals age 16 or older who receive SSI benefits due to blindness or disability and who refuse,

without good cause, to accept available rehabilitation services based upon a referral from SSA shall

be ineligible for SSI.

F. ADMINISTRATION OF THE SSI PROGRAM

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

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

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

and humane manner. 

1. Application Process 

Individuals can make appointments to apply for SSI benefits at any one of the approximately 1,300

SSA field offices around the country or through SSA teleservice centers. The claims process includes

the application interview, the obtaining of necessary evidence and documentation, and the adjudication of the claim. Although the eligibility requirements of 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. Potential claimants initially contact SSA by phone, mail or in

person. Field office personnel conduct an interview with the claimant and/or his/her representative. 

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 on ways to obtain the needed information. Because of the special circumstances of the SSI population (for example, financial need, old age, or illness), SSA makes special

efforts to assist claimants in obtaining the necessary proofs. 

With regard to disability and blindness claims, SSA makes determinations of all of the nonmedical

eligibility factors while each State’s Disability Determination Service (DDS) makes determinations of

the medical eligibility factors. 

2. Determinations of Eligibility 

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

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

determined on a 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 both are determined using the income received in the first

month. 

SSI recipients are required to have their nonmedical eligibility factors redetermined periodically, generally every 1 to 6 years depending on their specific situation. 

In addition to these nonmedical reviews, medical reviews are conducted on disabled or blind recipients in order to determine if they continue to be disabled or blind. For administrative efficiency the

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

are considered likely to improve. Medical reviews are required for disabled or blind recipients, for

example, under the following circumstances:

 • When earnings of recipients exceed the substantial gainful activity limit;

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

likely to improve;
1998 SSI Annual Report

16

 • Within 12 months after birth for recipients whose low birth weight is a contributing factor material to the determination of their disability; and

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

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

3. Representative Payees 

When SSI recipients are incapable of handling their benefits, 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 may deduct 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 ($27 a month in 1998 ($52 a month in the case of an organization acting as payee for disabled recipients with a drug addiction or alcoholism condition)).

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

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

changes that may affect SSI recipients’ eligibility and payment amount and may be held liable for

any overpayments that occur. 

4. Appeal Rights 

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

given the opportunity to request that their benefits continue pending a decision at the first level of

appeal.

5. Attorney Fees 

At any time, an individual may appoint a representative in any dealings with the Social Security

Administration. If such a representative is an attorney, he/she must be in good standing, have the

right to practice law before a court, not be disqualified or suspended from acting as a representative

in dealings with Social Security and not be prohibited by any law from acting as a representative. If

the individual is not an attorney, he/she must meet qualifications specified by the Commissioner (e.g.,

be of good character and able to provide valuable service to claimants).

A representative may charge and receive a fee for his/her services, but the Social Security Administration generally decides how much the fee shall be. A representative cannot charge or receive more

than the fee amount authorized. SSI differs from the Social Security program in that amounts cannot

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

for paying such fees directly to their attorneys.

6. Advance Payments 

Unlike many of the various State programs that the SSI program replaced, it was not designed to

respond to the immediate needs of claimants. However, several provisions exist to fill the gap in

responsiveness to individuals in such situations. 

a. Emergency Advance Payments 

An advance payment of no more than 1 month's benefit (including any Federally-administered State

supplementary payment) may be made to an applicant faced with a financial emergency when there

is a strong likelihood that the individual will be found eligible. Such payments may be made only at
17

1998 SSI Annual Report

the time of application, and the amount advanced is recovered from subsequent SSI benefits. Because

SSI benefits are payable only for months following the month of application or initial eligibility, emergency advance payments are made in the month of application prior to an individual’s eligibility. If it

is subsequently determined that the individual is not eligible for any reason other than failure to

establish disability or blindness, the emergency advance payment is considered an overpayment. 

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. STATE 1 SUPPLEMENTATION

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

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

same time States were given the option to either provide no supplementation to the Federal assistance payments or to supplement those payments based on their views of the needs of their citizens.

They were mandated to assure that their citizens would not receive lower benefits under the Federal

program than they had under the former State program. The following paragraphs describe the various forms of State supplementation that currently exist. Table III.H1 summarizes State-specific participation in these programs as well as other programs requiring State and Federal coordination as

discussed in section 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. In 1998, 44 States have optional State supplementary payment programs. 

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

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

or may extend them to persons ineligible for SSI because of excess income. States’ flexibility in setting supplementary payments, however, has been significantly restricted by mandatory passalong

provisions (described below). 

2. Mandatory State Supplementary Payment Programs 

States are required 2 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 State supplementation. Because of the increases in Federal

benefits over the years, there are few individuals who continue to receive mandatory State supplementary payments. In December 1997, there were roughly 2,500 such recipients. 

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

 2 Requirement does not affect West Virginia, since, in 1973, Federal SSI income standards exceeded those under the State’s adult assistance programs.
1998 SSI Annual Report

18

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 $6.20 fee for each supplementary payment issued in

fiscal year 1998. Fees are scheduled to rise in succeeding fiscal years.

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 disregards. 

4. Mandatory Passalong 

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

replace State supplementary payments. However, public reaction to States reducing their supplementary payment amounts when SSI payments were increased led Congress to mandate that States pass

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

To meet the passalong requirement, a State may either maintain each State payment level from yearto-year—the “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 “expenditures” method. Currently 38 States use the levels method and 11 use the expenditure method. Two States are unaffected by the mandatory passalong requirement. Texas has no mandatory or optional supplementary program because of a State constitutional impediment. West

Virginia has no optional supplementary plan and was not required to establish a mandatory plan

because Federal SSI income standards exceeded those under the State’s adult assistance programs in

1973.

H. COORDINATION WITH OTHER PROGRAMS

SSI benefits are not the only form of assistance available to needy aged, blind, or disabled individuals. Medicaid, food stamps, and temporary State assistance also are important in keeping individuals

from sliding further into poverty. SSA plays a limited but important role in helping States with

regard to administration of Medicaid and food stamp programs, and provisions in the SSI statute

assure that payments made by States or under the Social Security program are not duplicated by SSI

benefits. 

1. Windfall Offset 

If a person receives SSI payments, and is later determined to be entitled to retroactive Social Security benefits, such retroactive benefits are reduced by the amount of SSI payments the person would

not have been eligible for had the Social Security benefits been paid in the month they were due. This

process is called the “windfall offset” and was enacted to prevent windfall payments to individuals

when Social Security and SSI payments were paid for the same period. 

2. Medicaid Determinations 

Generally, SSI recipients are categorically eligible for Medicaid. A State may either use SSI eligibility

criteria for determining Medicaid eligibility, or may use its own criteria as long as the criteria is no

more restrictive than the State’s January 1972 medical assistance standards. Forty States use SSI

criteria and 11 States use their own criteria. 
19

1998 SSI Annual Report

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

on their behalf as long as the eligibility requirements of the State’s Medicaid plans are the same as

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

agreements with 33 States. 

Continued Medicaid eligibility is provided in SSI law for certain Social Security beneficiaries who

lose SSI due to entitlement to Social Security benefits, or due to an increase in Social Security benefits resulting from:

 • cost-of-living adjustments;

 • actuarial increases in widow(er)s benefits;

 • changes in the definition of disability for widow(er)s benefits; or

 • increases in disabled adult child benefits. 

3. Food Stamp Applications 

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

entered into by the Secretary of Agriculture and SSA, Social Security offices notify Social Security

and SSI applicants and recipients of their potential benefits under the Food Stamp program and

make food stamp applications available to them. 

The law also provides for Social Security offices to take food stamp applications from potentially eligible or eligible SSI households which are not already receiving food stamps and which do not have a

food stamp application pending. Food stamp applications from SSI households may be taken in connection with initial SSI claims or at the time of a redetermination. Food stamp applicants have the

option of applying at Social Security offices or applying at State food stamp offices if expedited service

is required. Social Security offices forward the food stamp applications and any supporting documents to the local food stamp offices within 1 day of taking the application. Eligibility is determined

by the food stamp office. 

4. Interim Assistance Reimbursement 

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

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

benefits was pending, or the individual’s SSI benefits were suspended and subsequently reinstated

(the interim period).

Under these interim assistance reimbursement agreements, if the individual has given SSA written

authorization, SSA sends an individual’s first SSI benefit check relating to the interim period to the

State or local jurisdiction that had provided the interim assistance. The State then deducts the

amount it is owed and is required to forward the remainder on to the claimant within 10 days. 2

Thirty-seven States have interim assistance agreements with SSA. 

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

stamps.

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

financial institution accounts for the children.
1998 SSI Annual Report

20

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

2 Mandatory State program is Federally-administered. No optional program.

3 Mandatory State program is Federally-administered.

4 Has a constitutional bar against State supplementation.

Table III.H1.—SSI State Supplementation1 and Coordination With Other Programs

 United States and 

District of Columbia

Optional State program—

Administered by:

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 County eligibility

Federal 

(SSA)

Federal 

& State

“Levels”

method

“Expenditures”

method

Federal 

criteria

States

criteria

Alabama * * **

Alaska * * * *

Arizona * * * **

Arkansas 2 * * *

California * * * **

Colorado * * * * *

Connecticut * * **

Delaware * * * *

District of Columbia * ** *

Florida 3 * * * * *

Georgia 2 * * **

Hawaii * * * *

Idaho * **

Illinois * * * *

Indiana * * **

Iowa * * * * *

Kansas 2 ** *

Kentucky * * * * *

Louisiana 3 * * **

Maine * * * * *

Maryland 3 * * * **

Massachusetts * * * * *

Michigan ** * * *

Minnesota * * * *

Mississippi 2 * **

Missouri * * * *

Montana * * * **

Nebraska * * * *

Nevada ** * *

New Hampshire * * * *

New Jersey * * * **

New Mexico * * * * *

New York ** * * *

North Carolina * * * * *

North Dakota ** *

Ohio 3 * * * *

Oklahoma * **

Oregon * * * *

Pennsylvania * * * **

Rhode Island * * * * *

South Carolina * * **

South Dakota 3 * * * *

Tennessee 2 * * **

Texas 4 * *

Utah ** * *

Vermont * * * * *

Virginia * ***

Washington * * * * *

West Virginia * *

Wisconsin * * * * *

Wyoming * * **

Total number of States 27 1 11 5 38 11 40 11 33 37
21

1998 SSI Annual Report

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 1998-2022

As described in section III, eligibility for payments under the SSI program depends on a collection of

provisions related to the socioeconomic status of the individual, as well as the evaluation of disability

or blindness for persons under age 65. Consequently, future SSI program participation will depend on

a variety of difficult-to-predict factors including the performance of national and local economies, distribution of personal income within that macroeconomic framework, the prevalence of disability in

the general population, and the determination of disability as defined by the Social Security Act. 

Prior to the issuance of the 1997 SSI Annual Report, all estimates of expenditures under the SSI program were of a short-term nature prepared in conjunction with the President’s Budget. These shortterm projections relied exclusively on the evaluation of recent historical trends in the SSI program,

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

mandating this report required that such projections of future program participation be prepared for

a period of 25 years. As was discussed in the 1997 Annual Report, due to the complex interaction

between the economy and the SSI program, models for projecting SSI program participation over

such an extended time period should incorporate more sophisticated concepts than the trend analysis

traditionally used for budget purposes. The Office of the Chief Actuary has begun a program of

research intended to develop the appropriate data and models to reflect the impact of the relevant

cofactors on the future of the SSI program. It is anticipated that this research and development effort

will span several years, although our intent is to incorporate partial improvements to our models on

an annual basis as quickly as permitted by time constraints. Such enhancements will be discussed as

they are included in future reports. For this second annual report, our estimates continue to be based

on extending our standard short-term projection methods. As was discussed in the 1997 Annual

Report, these estimates should be considered to be rough approximations, especially for periods

beyond the first 5 years.

A. ECONOMIC AND DEMOGRAPHIC ASSUMPTIONS

Although models that will take account of a wider variety of economic parameters are not yet available, 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 basic indexation

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

25-year period. For purposes of developing these estimates, we have relied on the demographic projections and CPI assumptions underlying the intermediate estimates prepared for the 1998 Annual

Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds. 1 Detailed discussion of these economic and demographic parameters is presented

in section II.D of that report. 2 The key assumptions utilized directly for the projections presented in

this report are summarized in the following two tables. Table IV.A1 presents population projections

summarized by certain age subgroups that are specifically relevant to the SSI recipient categories.

These demographic projections are the starting point for the SSI participant projections discussed in

the next section. 

 1 House Document 105-243, published April 28, 1998.

 2 Ibid, Section II.D, Principal Economic and Demographic Assumptions.
1998 SSI Annual Report

22

Notes:

1. Historical population data subject to revision.

2. Totals do not necessarily equal the sums of rounded components.

As described in section III.D.1, the monthly Federal benefit standard is adjusted annually in January

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

increase in the CPI for the third quarter of the calendar year. This “cost-of-living” adjustment is identical to the adjustment of Social Security benefits under the OASDI program. In previous years, occasional ad hoc increases were also applied to the Federal benefit rates, either in place of or in addition

to such automatic adjustments. The history of legislation affecting the Federal benefit rates is presented in table V.A1. Table IV.A2 presents a complete history of the “cost-of-living” adjustment factors

and Federal benefit rates since the inception of the program, along with projections of such amounts

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

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

Intermediate Assumptions of the 1998 OASDI Trustees Report, as of July 1, 1974-2022

[In thousands]

Year

Age groups Total

0-17 18-21 22-64 65 or older all ages

Historical data:

1974 . . . . . . 70,704 16,732 112,540 22,735 222,712

1975 . . . . . . 69,718 17,112 114,450 23,265 224,545

1976 . . . . . . 68,728 17,425 116,462 23,822 226,437

1977 . . . . . . 67,822 17,636 118,594 24,399 228,451

1978 . . . . . . 66,993 17,783 120,845 24,986 230,606

1979 . . . . . . 66,263 17,821 123,183 25,576 232,844

1980 . . . . . . 65,737 17,763 125,480 26,148 235,128

1981 . . . . . . 65,407 17,666 127,718 26,709 237,500

1982 . . . . . . 65,199 17,482 129,958 27,319 239,958

1983 . . . . . . 65,147 17,130 132,192 27,910 242,379

1984 . . . . . . 65,252 16,656 134,369 28,468 244,745

1985 . . . . . . 65,505 16,138 136,441 29,059 247,143

1986 . . . . . . 65,824 15,677 138,382 29,708 249,590

1987 . . . . . . 66,095 15,469 140,187 30,331 252,081

1988 . . . . . . 66,326 15,539 141,878 30,885 254,627

1989 . . . . . . 66,773 15,628 143,456 31,439 257,297

1990 . . . . . . 67,585 15,467 144,983 31,989 260,024

1991 . . . . . . 68,563 15,084 146,576 32,513 262,736

1992 . . . . . . 69,544 14,616 148,291 33,040 265,491

1993 . . . . . . 70,445 14,255 149,993 33,508 268,201

1994 . . . . . . 71,236 14,132 151,513 33,902 270,782

1995 . . . . . . 71,893 14,228 152,875 34,257 273,252

1996 . . . . . . 72,451 14,428 154,308 34,575 275,762

1997 . . . . . . 72,882 14,709 155,888 34,830 278,309

Estimated:

1998 . . . . . . 73,167 15,066 157,528 35,018 280,780

1999 . . . . . . 73,362 15,419 159,206 35,207 283,194

2000 . . . . . . 73,492 15,743 160,886 35,429 285,550

2001 . . . . . . 73,600 15,973 162,632 35,653 287,857

2002 . . . . . . 73,705 16,084 164,461 35,885 290,134

2003 . . . . . . 73,760 16,175 166,286 36,164 292,384

2004 . . . . . . 73,773 16,265 168,098 36,475 294,612

2005 . . . . . . 73,768 16,373 169,863 36,816 296,821

2006 . . . . . . 73,719 16,544 171,531 37,223 299,016

2007 . . . . . . 73,585 16,771 173,069 37,777 301,202

2008 . . . . . . 73,362 17,066 174,475 38,478 303,382

2009 . . . . . . 73,115 17,387 175,879 39,177 305,557

2010 . . . . . . 72,913 17,629 177,371 39,816 307,729

2011 . . . . . . 72,789 17,716 178,740 40,650 309,895

2012 . . . . . . 72,739 17,639 179,809 41,864 312,051

2013 . . . . . . 72,759 17,461 180,797 43,178 314,194

2014 . . . . . . 72,832 17,263 181,788 44,435 316,318

2015 . . . . . . 72,941 17,093 182,672 45,714 318,420

2016 . . . . . . 73,082 16,951 183,422 47,040 320,495

2017 . . . . . . 73,247 16,840 184,006 48,445 322,539

2018 . . . . . . 73,429 16,754 184,436 49,926 324,546

2019 . . . . . . 73,621 16,682 184,735 51,474 326,512

2020 . . . . . . 73,816 16,626 184,912 53,078 328,432

2021 . . . . . . 74,007 16,586 184,976 54,731 330,301

2022 . . . . . . 74,187 16,563 184,927 56,437 332,114
23

1998 SSI Annual Report

Estimates presented in the sections that follow are based on the assumptions described in this section. Furthermore, for purposes of making these estimates, it is assumed that no changes will occur

during the projection period in the present statutory provisions and regulations under which the SSI

program operates.

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

Intermediate Assumptions of the 1998 OASDI Trustees Report, 1974-2022 

Year

Benefit rate

increase 1

 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.

Federal benefit rate

Individual Couple Essential person 2

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

Historical data:

Initial benefit paid 

January 1, 1974 3 

 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.

— $140.00 $210.00 $70.00

1974 . . . . . . . 4 4.3%

 4 Represent ad hoc increases and are specified in the law.

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

Estimated:

1999 . . . . . . . 1.5 501.00 752.00 251.00

2000 . . . . . . . 2.4 513.00 770.00 257.00

2001 . . . . . . . 2.6 527.00 790.00 264.00

2002 . . . . . . . 2.7 541.00 812.00 271.00

2003 . . . . . . . 2.9 557.00 835.00 279.00

2004 . . . . . . . 3.1 574.00 861.00 287.00

2005 . . . . . . . 3.3 593.00 889.00 297.00

2006 . . . . . . . 3.4 613.00 920.00 307.00

2007 . . . . . . . 3.5 635.00 952.00 318.00

2008 . . . . . . . 3.5 657.00 985.00 329.00

2009 . . . . . . . 3.5 680.00 1,020.00 340.00

2010 . . . . . . . 3.5 704.00 1,056.00 352.00

2011 . . . . . . . 3.5 728.00 1,092.00 365.00

2012 . . . . . . . 3.5 754.00 1,131.00 377.00

2013 . . . . . . . 3.5 780.00 1,170.00 391.00

2014 . . . . . . . 3.5 807.00 1,211.00 404.00

2015 . . . . . . . 3.5 836.00 1,254.00 419.00

2016 . . . . . . . 3.5 865.00 1,298.00 433.00

2017 . . . . . . . 3.5 895.00 1,343.00 448.00

2018 . . . . . . . 3.5 927.00 1,390.00 464.00

2019 . . . . . . . 3.5 959.00 1,439.00 480.00

2020 . . . . . . . 3.5 993.00 1,489.00 497.00

2021 . . . . . . . 3.5 1,027.00 1,541.00 515.00

2022 . . . . . . . 3.5 1,063.00 1,595.00 533.00
1998 SSI Annual Report

24

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM

In this section, we present our projections of the various subpopulations which lead to the numbers of

persons receiving Federal SSI payments. As required in the legislative mandate for this report, each

table displays our projections split by basic recipient category: aged, blind or disabled adults, and

blind or disabled children. These recipient categories are in large part based on age, where “aged”

generally refers to SSI recipients qualifying based on being age 65 or older, “disabled children” generally refers to recipients under age 18 qualifying based on a disability, and “disabled adults” to disabled recipients age 18 or older. However, in certain circumstances, these general rules as to

classification by age are not followed due to special provisions as to how SSI payment amounts are

determined. More specifically: 

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

based on meeting the age-65-or-older requirement for assistance, and the income and resource

limits applicable for adults. In December 1997, there were 1.362 million aged recipients of Federally-administered SSI payments. 

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

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

income and resource limits applicable for adults. After attainment of age 65 these individuals

generally continue to be classified as blind or disabled adults (rather than aged). In December

1997, there were 4.202 million blind or disabled adult recipients of Federally-administered SSI

payments, including 672 thousand disabled and 20 thousand blind recipients aged 65 or older.

 • The blind or disabled children category includes those individuals whose initial eligibility is

established based on meeting the definition of blindness or disability for individuals under age

18. At age 18 these individuals continue to be eligible for SSI if they meet the definition of blindness or disability for individuals age 18 or older. As a result, blind or disabled children are generally reclassified as blind or disabled adults at age 18. However, students aged 18 to 21 are still

classified as blind or disabled children for purposes of meeting the income and resources requirements. 1 In December 1997, there were 930 thousand blind or disabled child recipients of Federally-administered SSI payments, including 51 thousand students aged 18 to 21. 

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 1997 were roughly 12 percent lower than estimated for the 1997

Annual Report. This more favorable experience is probably largely attributable to better performance

of the economy than anticipated at the beginning of 1997. However, uncertainty among the potential

applicant population concerning the impact of 1996 welfare reform legislation may have also contributed to this temporary downturn. The numbers of applications reversed their downward trend in the

second half of 1997, in part due to the effects of Public Law 105-33 which re-established eligibility for

certain classes of noncitizens. Longer term trends in applications are estimated to continue to grow

from current levels (adjusted for the impact of Public Law 105-33) roughly in line with overall population growth.

 1 For students aged 18 to 21, parent-to-child deeming is no longer in effect, but a special student earned income exclusion is provided.
25

1998 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components.

Table IV.B1.—SSI Federally-Administered Applications, 1 Calendar Years 1974-2022

[In thousands]

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

Report).

Calendar year

Blind or disabled 2 

 2 Historical split between adults and children is estimated.

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . ( 3 )

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

( 3 ) ( 3 ) ( 3 )

1975 4 . . . . . . . . . . . . 

 4 Estimated using a 1-percent sample.

325 938 137 1,400

1976 . . . . . . . . . . . . . . 254 861 123 1,239

1977 . . . . . . . . . . . . . . 259 894 145 1,298

1978 . . . . . . . . . . . . . . 258 916 131 1,304

1979 . . . . . . . . . . . . . . 262 942 147 1,352

1980 . . . . . . . . . . . . . . 276 991 159 1,427

1981 . . . . . . . . . . . . . . 130 629 104 864

1982 . . . . . . . . . . . . . . 141 702 128 971

1983 . . . . . . . . . . . . . . 190 761 140 1,092

1984 . . . . . . . . . . . . . . 286 799 145 1,230

1985 . . . . . . . . . . . . . . 223 968 154 1,345

1986 . . . . . . . . . . . . . . 231 1,045 160 1,437

1987 . . . . . . . . . . . . . . 200 896 137 1,233

1988 . . . . . . . . . . . . . . 200 872 149 1,221

1989 . . . . . . . . . . . . . . 222 915 157 1,294

1990 . . . . . . . . . . . . . . 227 1,029 197 1,454

1991 . . . . . . . . . . . . . . 227 1,225 254 1,706

1992 . . . . . . . . . . . . . . 226 1,365 363 1,955

1993 . . . . . . . . . . . . . . 218 1,486 487 2,191

1994 . . . . . . . . . . . . . . 188 1,461 528 2,177

1995 . . . . . . . . . . . . . . 165 1,310 492 1,966

1996 . . . . . . . . . . . . . . 153 1,225 454 1,831

1997 5 . . . . . . . . . . . . 

 5 Due to a reporting problem, application receipts are estimated for part of 1997 using cleared and pending applications.

118 1,056 322 1,496

Estimated:

1998 . . . . . . . . . . . . . . 141 1,101 356 1,599

1999 . . . . . . . . . . . . . . 138 1,122 374 1,635

2000 . . . . . . . . . . . . . . 134 1,148 380 1,662

2001 . . . . . . . . . . . . . . 130 1,168 384 1,682

2002 . . . . . . . . . . . . . . 127 1,179 391 1,696

2003 . . . . . . . . . . . . . . 125 1,187 397 1,709

2004 . . . . . . . . . . . . . . 122 1,190 402 1,714

2005 . . . . . . . . . . . . . . 121 1,197 405 1,723

2006 . . . . . . . . . . . . . . 121 1,201 405 1,727

2007 . . . . . . . . . . . . . . 121 1,212 408 1,741

2008 . . . . . . . . . . . . . . 123 1,227 409 1,758

2009 . . . . . . . . . . . . . . 126 1,237 407 1,770

2010 . . . . . . . . . . . . . . 128 1,248 406 1,782

2011 . . . . . . . . . . . . . . 130 1,258 406 1,794

2012 . . . . . . . . . . . . . . 134 1,265 405 1,804

2013 . . . . . . . . . . . . . . 138 1,270 405 1,814

2014 . . . . . . . . . . . . . . 142 1,276 406 1,824

2015 . . . . . . . . . . . . . . 146 1,281 406 1,833

2016 . . . . . . . . . . . . . . 151 1,285 407 1,843

2017 . . . . . . . . . . . . . . 155 1,288 408 1,851

2018 . . . . . . . . . . . . . . 160 1,291 409 1,859

2019 . . . . . . . . . . . . . . 165 1,292 410 1,867

2020 . . . . . . . . . . . . . . 170 1,293 411 1,874

2021 . . . . . . . . . . . . . . 175 1,294 412 1,881

2022 . . . . . . . . . . . . . . 181 1,293 413 1,887
1998 SSI Annual Report

26

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, parental, and citizenship

status. In addition, in over 90 percent of the cases, an evaluation of an alleged impairment must be

done by the appropriate State Disability Determination Service. An unfavorable disability determination may then be appealed by the applicant through several administrative levels of appeal. If all

administrative levels of appeal are exhausted, the applicant may in turn carry his/her appeal to the

Federal courts. Data on recent historical experience for this disability decision process is 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 final result of this decision process. Awards in 1997 were

roughly 8 percent lower than estimated for the 1997 Annual Report. For the same reasons discussed

above with respect to applications, this temporary downward trend is expected to be reversed in

1998.

 Figure IV.B1.—SSI Federally-Administered Applications, Calendar Years 1975-2025

[In thousands]

Table IV.B2.—SSI Federally-Administered Awards, Calendar Years 1974-2022

[In thousands]

Calendar year 1 

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . 554 362 49 965

1975 . . . . . . . . . . . . . . 260 383 59 702

1976 . . . . . . . . . . . . . . 172 327 44 542

1977 . . . . . . . . . . . . . . 190 320 48 558

1978 . . . . . . . . . . . . . . 177 303 52 532

1979 . . . . . . . . . . . . . . 160 273 51 484

1980 . . . . . . . . . . . . . . 170 274 52 496

1981 2 . . . . . . . . . . . . 107 226 45 379

1982 3 . . . . . . . . . . . . 83 183 40 306

1983 . . . . . . . . . . . . . . 135 236 49 420

1984 . . . . . . . . . . . . . . 201 303 49 554

1985 3 . . . . . . . . . . . . 143 313 51 506

1986 . . . . . . . . . . . . . . 149 369 54 572

1987 . . . . . . . . . . . . . . 154 349 52 554

1988 . . . . . . . . . . . . . . 155 343 51 549

1989 . . . . . . . . . . . . . . 175 369 54 598

1990 . . . . . . . . . . . . . . 179 423 83 685

1991 . . . . . . . . . . . . . . 175 476 126 777

1992 . . . . . . . . . . . . . . 175 590 191 956

1993 . . . . . . . . . . . . . . 170 576 226 971

1994 . . . . . . . . . . . . . . 144 533 206 883

1995 . . . . . . . . . . . . . . 128 516 177 822

1996 . . . . . . . . . . . . . . 113 482 147 741

1997 . . . . . . . . . . . . . . 85 410 114 609

Aged

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Historical Estimated

Calendar year

Blind or Disabled Adults

Blind or Disabled Children
27

1998 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components.

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. In particular, 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. Table IV.B3 and figure IV.B3 present historical and proEstimated:

1998 . . . . . . . . . . . . . . 97 425 119 641

1999 . . . . . . . . . . . . . . 97 432 121 650

2000 . . . . . . . . . . . . . . 94 436 122 653

2001 . . . . . . . . . . . . . . 92 441 124 657

2002 . . . . . . . . . . . . . . 90 445 126 660

2003 . . . . . . . . . . . . . . 89 447 128 664

2004 . . . . . . . . . . . . . . 88 447 130 664

2005 . . . . . . . . . . . . . . 87 449 131 667

2006 . . . . . . . . . . . . . . 87 450 131 668

2007 . . . . . . . . . . . . . . 87 454 132 673

2008 . . . . . . . . . . . . . . 89 459 132 681

2009 . . . . . . . . . . . . . . 91 463 132 686

2010 . . . . . . . . . . . . . . 92 468 132 691

2011 . . . . . . . . . . . . . . 94 471 131 696

2012 . . . . . . . . . . . . . . 97 474 131 702

2013 . . . . . . . . . . . . . . 100 476 131 707

2014 . . . . . . . . . . . . . . 103 478 131 712

2015 . . . . . . . . . . . . . . 106 480 132 717

2016 . . . . . . . . . . . . . . 109 481 132 722

2017 . . . . . . . . . . . . . . 112 483 132 726

2018 . . . . . . . . . . . . . . 115 483 132 731

2019 . . . . . . . . . . . . . . 119 484 133 736

2020 . . . . . . . . . . . . . . 123 484 133 740

2021 . . . . . . . . . . . . . . 126 485 133 744

2022 . . . . . . . . . . . . . . 130 484 134 748

 1 Represents period in which award was processed, not date of eligibility for payments.

 2 Estimate based on 10 months of data.

 3 Estimate based on 11 months of data.

 Figure IV.B2.—SSI Federally-Administered Awards, Calendar Years 1975-2025

[In thousands]

Table IV.B2.—SSI Federally-Administered Awards, Calendar Years 1974-2022 (Cont.)

[In thousands]

Calendar year 1 

Blind or disabled

Aged Adults Children Total

Aged

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Historical Estimated

Blind or Disabled Adults

Blind or Disabled Children
1998 SSI Annual Report

28

jected numbers of such terminations by calendar year and type of benefit. The sharp spike in terminations in 1997 estimated in the 1997 Annual Report was largely unrealized due to the impact of

Public Law 105-33, which re-established eligibility for qualified noncitizens who were receiving SSI

benefits as of the date of enactment of the 1996 welfare reform legislation. The remaining higher

than normal terminations in 1997 are mainly attributable to the implementation of the revised standard of disability for children mandated by Public Law 104-193. The total number of childhood terminations shown for 1997-98 is somewhat lower than estimated in the 1997 Annual Report, reflecting

the re-reviews of certain cases as initiated by the Commissioner late last year. 1 The net effect of these

factors yielded 36 percent fewer terminations in 1997 than estimated for the 1997 Annual Report.

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.

Note: Totals do not necessarily equal the sums of rounded components.

 1 The year-by-year pattern shows higher actual terminations in 1997 and lower estimated terminations in 1998 than estimated last year. This

reflects the fact that fewer beneficiaries elected to continue their benefits while their termination decision was being appealed. 

Table IV.B3.—SSI Federally-Administered Terminations, Calendar Years 1974-2022

[In thousands]

Calendar year

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . 91 17 6 114

1975 . . . . . . . . . . . . . . 239 143 2 384

1976 . . . . . . . . . . . . . . 331 271 19 621

1977 . . . . . . . . . . . . . . 287 243 26 556

1978 . . . . . . . . . . . . . . 260 263 30 553

1979 . . . . . . . . . . . . . . 256 259 36 551

1980 . . . . . . . . . . . . . . 234 234 36 504

1981 . . . . . . . . . . . . . . 237 221 44 502

1982 . . . . . . . . . . . . . . 212 214 41 468

1983 . . . . . . . . . . . . . . 169 166 42 376

1984 . . . . . . . . . . . . . . 187 203 37 426

1985 . . . . . . . . . . . . . . 169 195 34 397

1986 . . . . . . . . . . . . . . 180 222 40 441

1987 . . . . . . . . . . . . . . 172 223 43 439

1988 . . . . . . . . . . . . . . 177 243 50 470

1989 . . . . . . . . . . . . . . 169 251 48 469

1990 . . . . . . . . . . . . . . 164 258 39 461

1991 . . . . . . . . . . . . . . 164 284 27 476

1992 . . . . . . . . . . . . . . 169 333 6 508

1993 . . . . . . . . . . . . . . 166 308 79 553

1994 . . . . . . . . . . . . . . 153 335 84 572

1995 . . . . . . . . . . . . . . 148 360 96 604

1996 . . . . . . . . . . . . . . 146 392 103 641

1997 . . . . . . . . . . . . . . 135 391 202 727

Estimated:

1998 . . . . . . . . . . . . . . 145 375 89 608

1999 . . . . . . . . . . . . . . 125 403 94 622

2000 . . . . . . . . . . . . . . 121 406 95 622

2001 . . . . . . . . . . . . . . 117 409 98 624

2002 . . . . . . . . . . . . . . 113 413 102 628

2003 . . . . . . . . . . . . . . 110 416 106 632

2004 . . . . . . . . . . . . . . 106 419 109 635

2005 . . . . . . . . . . . . . . 104 422 112 637

2006 . . . . . . . . . . . . . . 102 424 114 640

2007 . . . . . . . . . . . . . . 100 427 116 643

2008 . . . . . . . . . . . . . . 99 429 118 646

2009 . . . . . . . . . . . . . . 98 432 119 649

2010 . . . . . . . . . . . . . . 97 435 120 653

2011 . . . . . . . . . . . . . . 97 438 121 657

2012 . . . . . . . . . . . . . . 97 441 122 661

2013 . . . . . . . . . . . . . . 97 444 123 664

2014 . . . . . . . . . . . . . . 97 447 124 669

2015 . . . . . . . . . . . . . . 98 450 125 673

2016 . . . . . . . . . . . . . . 99 453 125 677

2017 . . . . . . . . . . . . . . 100 456 126 681

2018 . . . . . . . . . . . . . . 101 458 127 686

2019 . . . . . . . . . . . . . . 102 460 127 690

2020 . . . . . . . . . . . . . . 104 463 128 694

2021 . . . . . . . . . . . . . . 105 465 128 698

2022 . . . . . . . . . . . . . . 107 466 129 703
29

1998 SSI Annual Report

Combining the number of persons awarded SSI benefits 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.B4 and in figure IV.B4. The

net effect of actual experience in 1997 (8 percent fewer awards and 36 percent fewer terminations

than estimated) was that there were about 6 percent more Federal SSI recipients at the end of 1997

than estimated for the 1997 Annual Report.

 Figure IV.B3.—SSI Federally-Administered Terminations, Calendar Years 1975-2025

[In thousands]

Table IV.B4.—SSI Recipients With Federal Benefits in Current-Payment Status 

as of December, 1974-2022

[In thousands]

Year

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . ( 1 ) ( 1 ) ( 1 ) ( 1 )

1975 . . . . . . . . . . . . . . 2,025 1,742 127 3,893

1976 . . . . . . . . . . . . . . 1,867 1,780 152 3,799

1977 . . . . . . . . . . . . . . 1,765 1,839 174 3,778

1978 . . . . . . . . . . . . . . 1,686 1,873 196 3,755

1979 . . . . . . . . . . . . . . 1,593 1,883 211 3,687

1980 . . . . . . . . . . . . . . 1,533 1,922 227 3,682

1981 . . . . . . . . . . . . . . 1,430 1,931 229 3,590

1982 . . . . . . . . . . . . . . 1,329 1,916 228 3,473

1983 . . . . . . . . . . . . . . 1,339 2,015 235 3,590

1984 . . . . . . . . . . . . . . 1,347 2,104 248 3,699

1985 . . . . . . . . . . . . . . 1,322 2,213 264 3,799

1986 . . . . . . . . . . . . . . 1,291 2,351 279 3,922

1987 . . . . . . . . . . . . . . 1,268 2,464 287 4,019

1988 . . . . . . . . . . . . . . 1,245 2,555 289 4,089

1989 . . . . . . . . . . . . . . 1,247 2,664 295 4,206

1990 . . . . . . . . . . . . . . 1,257 2,817 339 4,412

1991 . . . . . . . . . . . . . . 1,279 3,014 437 4,730

1992 . . . . . . . . . . . . . . 1,304 3,276 622 5,202

1993 . . . . . . . . . . . . . . 1,324 3,544 768 5,636

1994 . . . . . . . . . . . . . . 1,326 3,748 890 5,965

1995 . . . . . . . . . . . . . . 1,315 3,908 972 6,194

1996 . . . . . . . . . . . . . . 1,296 4,013 1,016 6,326

1997 . . . . . . . . . . . . . . 1,251 4,032 928 6,212

Aged

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Historical Estimated

Blind or Disabled Adults

Blind or Disabled Children
1998 SSI Annual Report

30

Note: Totals do not necessarily equal the sums of rounded components.

Estimated:

1998 . . . . . . . . . . . . . . 1,209 4,087 959 6,255

1999 . . . . . . . . . . . . . . 1,183 4,119 986 6,289

2000 . . . . . . . . . . . . . . 1,159 4,152 1,013 6,324

2001 . . . . . . . . . . . . . . 1,136 4,187 1,038 6,361

2002 . . . . . . . . . . . . . . 1,114 4,222 1,062 6,398

2003 . . . . . . . . . . . . . . 1,095 4,255 1,084 6,435

2004 . . . . . . . . . . . . . . 1,078 4,286 1,105 6,468

2005 . . . . . . . . . . . . . . 1,062 4,316 1,124 6,501

2006 . . . . . . . . . . . . . . 1,047 4,344 1,141 6,532

2007 . . . . . . . . . . . . . . 1,035 4,374 1,157 6,565

2008 . . . . . . . . . . . . . . 1,025 4,406 1,171 6,602

2009 . . . . . . . . . . . . . . 1,017 4,439 1,184 6,640

2010 . . . . . . . . . . . . . . 1,012 4,473 1,195 6,680

2011 . . . . . . . . . . . . . . 1,008 4,507 1,205 6,720

2012 . . . . . . . . . . . . . . 1,008 4,540 1,213 6,761

2013 . . . . . . . . . . . . . . 1,009 4,573 1,221 6,803

2014 . . . . . . . . . . . . . . 1,014 4,604 1,228 6,846

2015 . . . . . . . . . . . . . . 1,020 4,634 1,235 6,889

2016 . . . . . . . . . . . . . . 1,028 4,663 1,241 6,933

2017 . . . . . . . . . . . . . . 1,039 4,691 1,247 6,977

2018 . . . . . . . . . . . . . . 1,051 4,717 1,253 7,021

2019 . . . . . . . . . . . . . . 1,066 4,741 1,258 7,065

2020 . . . . . . . . . . . . . . 1,082 4,763 1,264 7,108

2021 . . . . . . . . . . . . . . 1,100 4,783 1,269 7,152

2022 . . . . . . . . . . . . . . 1,120 4,801 1,274 7,195

 1 Data not available.

 Figure IV.B4.—SSI Recipients With Federal Benefits in Current-Payment Status 

as of December, 1975-2025

[In thousands]

Table IV.B4.—SSI Recipients With Federal Benefits in Current-Payment Status 

as of December, 1974-2022 (Cont.)

[In thousands]

Year

Blind or disabled

Aged Adults Children Total

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

Calendar year

Historical Estimated

Blind or Disabled Adults

Blind or Disabled Children

Aged
31

1998 SSI Annual Report

As discussed above and 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.

Beginning in 1998, the Federal SSI recipient population is projected to resume growing at a modest

rate, attaining its 1996 level early in 2001. In order to place this projected growth in the context of

overall population growth, table IV.B5 and figure IV.B5 present Federal SSI recipients as percentages

of selected Social Security Area population totals. For this presentation, 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 beneficiary 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.

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

Selected Social Security Area Population Totals, as of December, 1975-2022 

Year

Blind or disabled

Aged 1

 1 Aged recipients as a percentage of the 65 or older Social Security Area population.

Adults 2

 2 Blind or disabled adult recipients as a percentage of the 18 or older Social Security Area population.

Children 3

 3 Blind or disabled child recipients as a percentage of the under age 22 Social Security Area population.

Total 4

 4 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to

overlapping populations.

Historical data:

1975 . . . . . . . . . . . . . . 8.62 1.12 0.15 1.73

1976 . . . . . . . . . . . . . . 7.76 1.12 .18 1.67

1977 . . . . . . . . . . . . . . 7.16 1.14 .20 1.65

1978 . . . . . . . . . . . . . . 6.69 1.14 .23 1.62

1979 . . . . . . . . . . . . . . 6.17 1.12 .25 1.58

1980 . . . . . . . . . . . . . . 5.81 1.13 .27 1.56

1981 . . . . . . . . . . . . . . 5.31 1.11 .28 1.51

1982 . . . . . . . . . . . . . . 4.82 1.09 .28 1.44

1983 . . . . . . . . . . . . . . 4.76 1.13 .29 1.47

1984 . . . . . . . . . . . . . . 4.69 1.17 .30 1.51

1985 . . . . . . . . . . . . . . 4.51 1.21 .32 1.53

1986 . . . . . . . . . . . . . . 4.31 1.27 .34 1.56

1987 . . . . . . . . . . . . . . 4.15 1.32 .35 1.59

1988 . . . . . . . . . . . . . . 4.00 1.35 .35 1.60

1989 . . . . . . . . . . . . . . 3.94 1.39 .36 1.63

1990 . . . . . . . . . . . . . . 3.90 1.46 .41 1.69

1991 . . . . . . . . . . . . . . 3.91 1.55 .52 1.79

1992 . . . . . . . . . . . . . . 3.92 1.67 .74 1.95

1993 . . . . . . . . . . . . . . 3.93 1.79 .90 2.09

1994 . . . . . . . . . . . . . . 3.89 1.87 1.04 2.19

1995 . . . . . . . . . . . . . . 3.82 1.93 1.12 2.26

1996 . . . . . . . . . . . . . . 3.74 1.97 1.17 2.28

1997 . . . . . . . . . . . . . . 3.58 1.95 1.06 2.22

Estimated:

1998 . . . . . . . . . . . . . . 3.44 1.96 1.08 2.22

1999 . . . . . . . . . . . . . . 3.35 1.95 1.11 2.21

2000 . . . . . . . . . . . . . . 3.26 1.95 1.13 2.21

2001 . . . . . . . . . . . . . . 3.18 1.95 1.16 2.20

2002 . . . . . . . . . . . . . . 3.10 1.94 1.18 2.20

2003 . . . . . . . . . . . . . . 3.02 1.94 1.21 2.19

2004 . . . . . . . . . . . . . . 2.94 1.93 1.23 2.19

2005 . . . . . . . . . . . . . . 2.87 1.93 1.25 2.18

2006 . . . . . . . . . . . . . . 2.80 1.92 1.26 2.18

2007 . . . . . . . . . . . . . . 2.72 1.91 1.28 2.17

2008 . . . . . . . . . . . . . . 2.64 1.91 1.29 2.17

2009 . . . . . . . . . . . . . . 2.58 1.90 1.31 2.17

2010 . . . . . . . . . . . . . . 2.53 1.90 1.32 2.16

2011 . . . . . . . . . . . . . . 2.45 1.89 1.33 2.16

2012 . . . . . . . . . . . . . . 2.37 1.89 1.34 2.16

2013 . . . . . . . . . . . . . . 2.31 1.89 1.35 2.16

2014 . . . . . . . . . . . . . . 2.25 1.88 1.36 2.16

2015 . . . . . . . . . . . . . . 2.21 1.88 1.37 2.16

2016 . . . . . . . . . . . . . . 2.16 1.88 1.38 2.16

2017 . . . . . . . . . . . . . . 2.12 1.88 1.38 2.16

2018 . . . . . . . . . . . . . . 2.08 1.87 1.39 2.16

2019 . . . . . . . . . . . . . . 2.04 1.87 1.39 2.16

2020 . . . . . . . . . . . . . . 2.01 1.87 1.40 2.16

2021 . . . . . . . . . . . . . . 1.99 1.86 1.40 2.16

2022 . . . . . . . . . . . . . . 1.96 1.86 1.40 2.16
1998 SSI Annual Report

32

Figure IV.B5 indicates that the number of persons receiving Federal SSI payments declined as a percentage of the total Social Security Area population from the inception of the program through the

early 1980s. In 1983, the number of Federal SSI recipients started increasing as a percentage of the

total population, and continued to increase through 1996. The number of Federal SSI recipients as a

percentage of the total population declined in 1997 due to factors described previously, and then

remain fairly constant as a percentage of the total population throughout the remainder of 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. (The sharp decline that was estimated for 1997 in the 1997 Annual Report did not materialize due to the changes in the law enacted

in Public Law 105-33.) In contrast, except for the drop due to the eligibility redeterminations in 1997

mandated by Public Law 104-193, the number of blind or disabled children receiving Federal SSI

payments increases steadily as a percentage of the under age 22 population, with the increase being

quite steep in the early 1990s. The blind or disabled adult Federal SSI recipient population as a percentage of the 18 or older population remained fairly level until the early 1980s when it started

increasing and continued to increase through 1996. After the modest drop in 1997 due to the implementation of legislation described previously, the number of blind or disabled adults receiving Federal SSI payments are estimated to remain fairly level as a percentage of the 18 or older population,

declining slightly near the end of the projection period.

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

Selected Social Security Area Population Totals, as of December, 1975-2025

0%

2%

4%

6%

8%

10%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Aged

Blind or Disabled Adults

Blind or Disabled Children

Total

Historical Estimated
33

1998 SSI Annual Report

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B6.

Note: Totals do not necessarily equal the sums of rounded components.

The combined numbers of persons receiving either a Federal SSI payment or a Federally-administered State supplement are displayed in table IV.B7.

In examining the recent history of SSI participation and the projections of such participation in the

near future, certain patterns are worth noting. The rapid increase in the total number of SSI participants in the early 1990s is a function of the growth in the numbers of disabled adults and children.

The growth in the numbers of children receiving SSI resulted in large part from the Supreme

Court decision in the case of Sullivan v. Zebley, which greatly expanded the criteria used for determining disability for children. The growth in the numbers of disabled adults is a more complicated 

Table IV.B6.—SSI Recipients With Federally-Administered State Supplementary Benefits Only,

in Current-Payment Status as of December, 1974-2022

[In thousands]

Year

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . ( 1 )

 1 Data not available.

( 1 ) ( 1 ) ( 1 )

1975 . . . . . . . . . . . . . . 282 137 1 421

1976 . . . . . . . . . . . . . . 280 155 1 437

1977 . . . . . . . . . . . . . . 286 173 1 460

1978 . . . . . . . . . . . . . . 282 179 1 462

1979 . . . . . . . . . . . . . . 278 183 2 462

1980 . . . . . . . . . . . . . . 274 184 2 460

1981 . . . . . . . . . . . . . . 248 179 1 429

1982 . . . . . . . . . . . . . . 219 164 1 384

1983 . . . . . . . . . . . . . . 176 135 1 312

1984 . . . . . . . . . . . . . . 184 146 1 331

1985 . . . . . . . . . . . . . . 182 156 1 339

1986 . . . . . . . . . . . . . . 182 164 1 348

1987 . . . . . . . . . . . . . . 187 177 1 366

1988 . . . . . . . . . . . . . . 188 185 1 375

1989 . . . . . . . . . . . . . . 192 194 1 387

1990 . . . . . . . . . . . . . . 197 206 1 405

1991 . . . . . . . . . . . . . . 186 201 2 389

1992 . . . . . . . . . . . . . . 167 196 2 364

1993 . . . . . . . . . . . . . . 151 195 2 348

1994 . . . . . . . . . . . . . . 139 189 2 331

1995 . . . . . . . . . . . . . . 131 186 2 320

1996 . . . . . . . . . . . . . . 116 170 2 288

1997 . . . . . . . . . . . . . . 111 170 2 283

Estimated:

1998 . . . . . . . . . . . . . . 105 165 2 273

1999 . . . . . . . . . . . . . . 102 163 2 267

2000 . . . . . . . . . . . . . . 99 160 2 262

2001 . . . . . . . . . . . . . . 97 158 3 257

2002 . . . . . . . . . . . . . . 95 155 3 253

2003 . . . . . . . . . . . . . . 94 152 3 249

2004 . . . . . . . . . . . . . . 93 150 3 246

2005 . . . . . . . . . . . . . . 92 147 3 242

2006 . . . . . . . . . . . . . . 92 145 3 240

2007 . . . . . . . . . . . . . . 91 142 4 237

2008 . . . . . . . . . . . . . . 91 140 4 235

2009 . . . . . . . . . . . . . . 92 138 4 234

2010 . . . . . . . . . . . . . . 92 137 4 233

2011 . . . . . . . . . . . . . . 93 136 4 232

2012 . . . . . . . . . . . . . . 93 134 4 232

2013 . . . . . . . . . . . . . . 95 133 4 232

2014 . . . . . . . . . . . . . . 96 133 4 233

2015 . . . . . . . . . . . . . . 97 132 4 234

2016 . . . . . . . . . . . . . . 99 131 4 235

2017 . . . . . . . . . . . . . . 101 131 4 236

2018 . . . . . . . . . . . . . . 103 130 4 238

2019 . . . . . . . . . . . . . . 106 130 4 240

2020 . . . . . . . . . . . . . . 108 129 5 242

2021 . . . . . . . . . . . . . . 111 129 5 244

2022 . . . . . . . . . . . . . . 114 128 5 247
1998 SSI Annual Report

34

Note: Totals do not necessarily equal the sums of rounded components.

phenomenon which is still not completely understood. However, extensive research conducted under

contract to SSA and the Department of Health and Human Services suggested that this growth was

the result of a combination of factors including (1) demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term structural changes in the economy, and (4)

changes in other support programs (in particular the reduction or elimination of general assistance

programs in certain States). The recent modest decline in program participation reflects the combined effects of recent legislation described in previous sections, along with changes in some of the

factors mentioned above.

Table IV.B7.—SSI Recipients With Federally-Administered Benefits in Current-Payment Status 

as of December, 1974-2022

[In thousands]

Year

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . 2,286 1,639 71 3,996

1975 . . . . . . . . . . . . . . 2,307 1,879 128 4,314

1976 . . . . . . . . . . . . . . 2,148 1,935 153 4,236

1977 . . . . . . . . . . . . . . 2,051 2,012 175 4,238

1978 . . . . . . . . . . . . . . 1,968 2,052 197 4,217

1979 . . . . . . . . . . . . . . 1,872 2,066 212 4,150

1980 . . . . . . . . . . . . . . 1,808 2,106 229 4,142

1981 . . . . . . . . . . . . . . 1,678 2,111 230 4,019

1982 . . . . . . . . . . . . . . 1,549 2,080 229 3,858

1983 . . . . . . . . . . . . . . 1,515 2,150 236 3,901

1984 . . . . . . . . . . . . . . 1,530 2,250 249 4,029

1985 . . . . . . . . . . . . . . 1,504 2,368 265 4,138

1986 . . . . . . . . . . . . . . 1,473 2,516 280 4,269

1987 . . . . . . . . . . . . . . 1,455 2,641 289 4,385

1988 . . . . . . . . . . . . . . 1,433 2,740 290 4,464

1989 . . . . . . . . . . . . . . 1,439 2,858 296 4,593

1990 . . . . . . . . . . . . . . 1,454 3,023 340 4,817

1991 . . . . . . . . . . . . . . 1,465 3,215 439 5,118

1992 . . . . . . . . . . . . . . 1,471 3,471 624 5,566

1993 . . . . . . . . . . . . . . 1,475 3,739 771 5,984

1994 . . . . . . . . . . . . . . 1,466 3,937 893 6,296

1995 . . . . . . . . . . . . . . 1,446 4,094 974 6,514

1996 . . . . . . . . . . . . . . 1,413 4,183 1,018 6,614

1997 . . . . . . . . . . . . . . 1,362 4,202 930 6,495

Estimated:

1998 . . . . . . . . . . . . . . 1,314 4,253 961 6,528

1999 . . . . . . . . . . . . . . 1,286 4,282 988 6,556

2000 . . . . . . . . . . . . . . 1,258 4,312 1,015 6,586

2001 . . . . . . . . . . . . . . 1,233 4,345 1,041 6,618

2002 . . . . . . . . . . . . . . 1,210 4,377 1,065 6,651

2003 . . . . . . . . . . . . . . 1,189 4,407 1,087 6,684

2004 . . . . . . . . . . . . . . 1,171 4,435 1,108 6,714

2005 . . . . . . . . . . . . . . 1,154 4,463 1,127 6,744

2006 . . . . . . . . . . . . . . 1,139 4,489 1,144 6,772

2007 . . . . . . . . . . . . . . 1,126 4,516 1,160 6,802

2008 . . . . . . . . . . . . . . 1,116 4,546 1,175 6,837

2009 . . . . . . . . . . . . . . 1,109 4,577 1,187 6,874

2010 . . . . . . . . . . . . . . 1,104 4,610 1,199 6,912

2011 . . . . . . . . . . . . . . 1,101 4,643 1,209 6,952

2012 . . . . . . . . . . . . . . 1,101 4,675 1,217 6,993

2013 . . . . . . . . . . . . . . 1,104 4,706 1,225 7,035

2014 . . . . . . . . . . . . . . 1,109 4,737 1,233 7,079

2015 . . . . . . . . . . . . . . 1,117 4,766 1,239 7,123

2016 . . . . . . . . . . . . . . 1,128 4,795 1,246 7,168

2017 . . . . . . . . . . . . . . 1,140 4,821 1,252 7,213

2018 . . . . . . . . . . . . . . 1,154 4,847 1,257 7,259

2019 . . . . . . . . . . . . . . 1,171 4,870 1,263 7,304

2020 . . . . . . . . . . . . . . 1,190 4,892 1,268 7,350

2021 . . . . . . . . . . . . . . 1,211 4,912 1,273 7,396

2022 . . . . . . . . . . . . . . 1,234 4,930 1,278 7,442
35

1998 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 

Notes:

1. Historical split between blind or disabled adults and children is estimated for 1974-78; historical split among all recipient categories is estimated for years 1979 and later.

2. Totals do not necessarily equal the sums of rounded components.

 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 1974-98

[In millions]

 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.

Calendar year

Blind or disabled

Aged Adults Children Total

1974 . . . . . . . . . . . . . . . . . . . . $1,783 $1,884 $166 $3,833

1975 . . . . . . . . . . . . . . . . . . . . 1,843 2,272 199 4,314

1976 . . . . . . . . . . . . . . . . . . . . 1,785 2,507 220 4,512

1977 . . . . . . . . . . . . . . . . . . . . 1,737 2,687 280 4,703

1978 2 . . . . . . . . . . . . . . . . . .

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

1,847 3,082 367 5,296

1979 . . . . . . . . . . . . . . . . . . . . 1,760 3,142 404 5,306

1980 . . . . . . . . . . . . . . . . . . . . 1,872 3,563 488 5,923

1981 . . . . . . . . . . . . . . . . . . . . 1,963 4,023 563 6,549

1982 . . . . . . . . . . . . . . . . . . . . 1,994 4,321 617 6,931

1983 . . . . . . . . . . . . . . . . . . . . 2,064 4,773 693 7,530

1984 . . . . . . . . . . . . . . . . . . . . 2,182 5,373 763 8,318

1985 . . . . . . . . . . . . . . . . . . . . 2,198 5,772 840 8,809

1986 . . . . . . . . . . . . . . . . . . . . 2,210 6,378 935 9,522

1987 . . . . . . . . . . . . . . . . . . . . 2,210 6,855 1,005 10,069

1988 . . . . . . . . . . . . . . . . . . . . 2,263 7,401 1,080 10,744

1989 . . . . . . . . . . . . . . . . . . . . 2,361 8,133 1,153 11,647

1990 . . . . . . . . . . . . . . . . . . . . 2,519 9,080 1,343 12,943

1991 . . . . . . . . . . . . . . . . . . . . 2,806 10,685 1,916 15,407

1992 . . . . . . . . . . . . . . . . . . . . 2,993 12,434 3,599 19,026

1993 . . . . . . . . . . . . . . . . . . . . 3,230 14,081 4,366 21,677

1994 . . . . . . . . . . . . . . . . . . . . 3,380 15,155 4,527 23,063

1995 . . . . . . . . . . . . . . . . . . . . 3,499 16,356 5,051 24,906

1996 . . . . . . . . . . . . . . . . . . . . 3,621 17,481 5,399 26,501

1997 . . . . . . . . . . . . . . . . . . . . 3,632 17,679 5,364 26,675

1998 (partially estimated). . . . 3,618 18,463 5,383 27,463
1998 SSI Annual Report

36

Using this cash-flow concept causes these payments to differ from similar amounts shown in other

Social Security Administration publications, such as the Annual Statistical Supplement to the Social

Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement

are tabulated for the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are actually paid. In particular, since January 1 of each year is a Federal

holiday, SSI payments due on January 1 of years 1979 and later are actually paid in December of the

previous year. Thus, for example, the calendar year 1997 payment amounts shown in table IV.C1

reflect payments made in January-December, 1997, and include the payments due on January 1,

1998 (which were actually paid in December, 1997), but not the payments due on January 1, 1997

(which were actually paid in December, 1996). 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 year 1 basis are presented in table IV.C2 for fiscal

years 1978-98. 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.

Notes:

1. Historical split among recipient categories is estimated.

2. Totals do not necessarily equal the sums of rounded components.

 1 Fiscal years 1977 and later cover the period from October 1 of the previous calendar year to September 30 of the year. For example, fiscal year

1997 payments include payments made from October 1, 1996 through September 30, 1997.

 2 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 month 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 1978-98

[In millions]

Fiscal year

Blind or disabled

Aged Adults Children Total

1978. . . . . . . . . . . . . . . . . . . . $1,848 $3,033 $353 $5,234

1979 1 . . . . . . . . . . . . . . . . . .

 1 Payment due on October 1 of fiscal year paid in previous fiscal year.

1,610 2,816 356 4,782

1980. . . . . . . . . . . . . . . . . . . . 1,813 3,386 455 5,653

1981. . . . . . . . . . . . . . . . . . . . 1,954 3,898 544 6,396

1982. . . . . . . . . . . . . . . . . . . . 1,996 4,241 599 6,836

1983. . . . . . . . . . . . . . . . . . . . 2,170 4,958 722 7,850

1984 1 . . . . . . . . . . . . . . . . . . 2,004 4,826 688 7,517

1985. . . . . . . . . . . . . . . . . . . . 2,193 5,647 812 8,652

1986. . . . . . . . . . . . . . . . . . . . 2,209 6,174 906 9,290

1987. . . . . . . . . . . . . . . . . . . . 2,203 6,698 983 9,884

1988. . . . . . . . . . . . . . . . . . . . 2,419 7,794 1,141 11,354

1989 1 . . . . . . . . . . . . . . . . . . 2,335 7,958 1,136 11,430

1990 1 . . . . . . . . . . . . . . . . . . 2,273 8,089 1,159 11,521

1991. . . . . . . . . . . . . . . . . . . . 2,728 10,187 1,698 14,614

1992. . . . . . . . . . . . . . . . . . . . 2,949 11,927 3,005 17,881

1993. . . . . . . . . . . . . . . . . . . . 3,150 13,568 4,312 21,029

1994. . . . . . . . . . . . . . . . . . . . 3,588 15,926 4,709 24,223

1995 1 . . . . . . . . . . . . . . . . . . 3,480 16,084 4,943 24,507

1996 1 . . . . . . . . . . . . . . . . . . 3,317 15,993 4,944 24,254

1997. . . . . . . . . . . . . . . . . . . . 3,629 17,474 5,416 26,519

1998 (partially estimated). . . . 3,625 18,227 5,297 27,149
37

1998 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. Several economic series are available to allow current dollars to be adjusted for changes in prices, wages, and

certain other aspects of economic growth during the projection period. The selection of a particular

index for adjustment of current dollars depends upon a determination as to which index provides the

most useful standard for adjusting dollar amounts over time, to create values that are appropriately

comparable.

One of the most common forms of standardization is based on some measure of change in the prices of

consumer goods. One such price index is the Consumer Price Index for Urban Wage Earners and

Clerical Workers published by the Bureau of Labor Statistics. This is the index used to determine

annual increases in the SSI Federal benefit rate as described in table IV.A2, and for this reason 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 1974-97, along with the full 25-year projection period, 1998-2022. This same

information is presented in graphical form in figure IV.C1.

The future growth in the “constant dollar” estimates is attributable primarily to the underlying

growth in the U.S. population as shown in table IV.A1, since, after the spike in terminations in 1997,

the SSI recipient population is projected to remain fairly constant as a percentage of the total U.S.

population. However, a small part of the growth in estimated payments is due to some underlying

real growth in the assumed average SSI benefit. This results from an estimated increase in the disabled child recipients and a decrease in aged recipients as a percentage of the total SSI recipient population, along with the fact that disabled children typically have a much larger SSI benefit than do

aged recipients. 1 

 1 Disabled children typically have higher monthly Federal payment amounts because they have, on average, much less countable income than do

adult beneficiaries.

Table IV.C3.—SSI Federal Payments in Constant 1998 Dollars, Calendar Years 1974-2022

[In millions]

Calendar year

Blind or disabled

Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . $5,745 $6,072 $535 $12,352

1975 . . . . . . . . . . . . . . 5,444 6,710 588 12,741

1976 . . . . . . . . . . . . . . 4,987 7,003 615 12,605

1977 . . . . . . . . . . . . . . 4,557 7,049 735 12,341

1978 . . . . . . . . . . . . . . 4,499 7,509 893 12,901

1979 . . . . . . . . . . . . . . 3,847 6,869 883 11,599

1980 . . . . . . . . . . . . . . 3,608 6,868 941 11,417

1981 . . . . . . . . . . . . . . 3,432 7,034 984 11,450

1982 . . . . . . . . . . . . . . 3,288 7,125 1,017 11,430

1983 . . . . . . . . . . . . . . 3,304 7,642 1,110 12,056

1984 . . . . . . . . . . . . . . 3,376 8,312 1,180 12,868

1985 . . . . . . . . . . . . . . 3,285 8,628 1,255 13,168

1986 . . . . . . . . . . . . . . 3,251 9,384 1,376 14,011

1987 . . . . . . . . . . . . . . 3,139 9,738 1,427 14,303

1988 . . . . . . . . . . . . . . 3,091 10,109 1,475 14,675

1989 . . . . . . . . . . . . . . 3,077 10,601 1,503 15,180

1990 . . . . . . . . . . . . . . 3,121 11,248 1,664 16,033

1991 . . . . . . . . . . . . . . 3,341 12,723 2,282 18,346

1992 . . . . . . . . . . . . . . 3,461 14,377 4,162 22,000

1993 . . . . . . . . . . . . . . 3,632 15,835 4,910 24,377

1994 . . . . . . . . . . . . . . 3,710 16,633 4,969 25,312

1995 . . . . . . . . . . . . . . 3,733 17,448 5,388 26,569

1996 . . . . . . . . . . . . . . 3,755 18,128 5,598 27,481

1997 . . . . . . . . . . . . . . 3,682 17,926 5,439 27,048
1998 SSI Annual Report

38

Note: Totals do not necessarily equal the sums of rounded components.

Estimated:

1998 . . . . . . . . . . . . . . $3,618 $18,463 $5,383 $27,463

1999 . . . . . . . . . . . . . . 3,505 18,449 5,428 27,382

2000 . . . . . . . . . . . . . . 3,459 18,637 5,599 27,695

2001 . . . . . . . . . . . . . . 3,415 18,851 5,767 28,032

2002 . . . . . . . . . . . . . . 3,367 19,028 5,914 28,309

2003 . . . . . . . . . . . . . . 3,326 19,200 6,052 28,577

2004 . . . . . . . . . . . . . . 3,288 19,364 6,182 28,834

2005 . . . . . . . . . . . . . . 3,253 19,528 6,306 29,087

2006 . . . . . . . . . . . . . . 3,224 19,684 6,419 29,326

2007 . . . . . . . . . . . . . . 3,204 19,870 6,532 29,605

2008 . . . . . . . . . . . . . . 3,185 20,038 6,629 29,852

2009 . . . . . . . . . . . . . . 3,173 20,212 6,716 30,101

2010 . . . . . . . . . . . . . . 3,169 20,408 6,801 30,378

2011 . . . . . . . . . . . . . . 3,168 20,581 6,868 30,616

2012 . . . . . . . . . . . . . . 3,178 20,781 6,939 30,898

2013 . . . . . . . . . . . . . . 3,192 20,940 6,992 31,124

2014 . . . . . . . . . . . . . . 3,215 21,096 7,043 31,354

2015 . . . . . . . . . . . . . . 3,247 21,272 7,100 31,619

2016 . . . . . . . . . . . . . . 3,282 21,430 7,149 31,861

2017 . . . . . . . . . . . . . . 3,323 21,574 7,194 32,090

2018 . . . . . . . . . . . . . . 3,374 21,729 7,242 32,344

2019 . . . . . . . . . . . . . . 3,426 21,847 7,279 32,552

2020 . . . . . . . . . . . . . . 3,489 21,973 7,322 32,783

2021 . . . . . . . . . . . . . . 3,553 22,069 7,358 32,980

2022 . . . . . . . . . . . . . . 3,624 22,166 7,395 33,185

 Figure IV.C1.—SSI Federal Payments in Constant 1998 Dollars, Calendar Years 1975-2025

[In billions]

Table IV.C3.—SSI Federal Payments in Constant 1998 Dollars, Calendar Years 1974-2022 (Cont.)

[In millions]

Calendar year

Blind or disabled

Aged Adults Children Total

$0

$10

$20

$30

$40

$50

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Constant 1998 dollars -- billions

Historical Estimated

Aged

Blind or Disabled Adults

Blind or Disabled Children
39

1998 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.

Note: Totals do not necessarily equal the sums of rounded components.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-97

[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 1 . . . . . . . . . . . . . . . . . .

 1 Split between recipient categories is estimated.

828 2,085 2,913

Table IV.C5.—SSI State-Administered Payments 1 in Current Dollars, Calendar Years 1974-97

[In millions]

 1 Data provided by individual States are partially estimated, and may be incomplete.

Calendar year Aged

Blind or

disabled Total 2

 2 Includes amounts not distributed by recipient category.

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 SSI Annual Report

40

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

As mentioned in the previous section, in order to make meaningful comparisons of dollar amounts

projected over long periods of time, it is essential to provide some sort of standardization that

accounts for various aspects of economic growth over the projection period. In that section, one such

set of standardized amounts (“constant dollars”) was presented by adjusting for changes in the CPI

over time. An alternative approach would be to provide some type of relative measure of these

amounts. In the OASDI Trustees Report, such a relative measure of program costs is produced by

comparing the nominal annual outgo to the total earnings in the economy subject to taxation under

the OASDI program. In the case of SSI, a more appropriate measure is produced by comparing estimated annual SSI costs to the Gross Domestic Product (GDP—the total value of goods and services

produced in the United States). 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 is projected to decline relative to GDP throughout the projection period.

Notes:

1. Historical GDP amounts subject to revision.

2. Totals do not necessarily equal the sums of rounded components.

Table IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2022 

Calendar year

GDP Blind or disabled

(In billions) Aged Adults Children Total

Historical data:

1974 . . . . . . . . . . . . . . $1,497 0.119 0.126 0.011 0.256

1975 . . . . . . . . . . . . . . 1,631 .113 .139 .012 .265

1976 . . . . . . . . . . . . . . 1,819 .098 .138 .012 .248

1977 . . . . . . . . . . . . . . 2,027 .086 .133 .014 .232

1978 . . . . . . . . . . . . . . 2,291 .081 .135 .016 .231

1979 . . . . . . . . . . . . . . 2,558 .069 .123 .016 .207

1980 . . . . . . . . . . . . . . 2,784 .067 .128 .018 .213

1981 . . . . . . . . . . . . . . 3,116 .063 .129 .018 .210

1982 . . . . . . . . . . . . . . 3,242 .061 .133 .019 .214

1983 . . . . . . . . . . . . . . 3,515 .059 .136 .020 .214

1984 . . . . . . . . . . . . . . 3,902 .056 .138 .020 .213

1985 . . . . . . . . . . . . . . 4,181 .053 .138 .020 .211

1986 . . . . . . . . . . . . . . 4,422 .050 .144 .021 .215

1987 . . . . . . . . . . . . . . 4,692 .047 .146 .021 .215

1988 . . . . . . . . . . . . . . 5,050 .045 .147 .021 .213

1989 . . . . . . . . . . . . . . 5,439 .043 .150 .021 .214

1990 . . . . . . . . . . . . . . 5,744 .044 .158 .023 .225

1991 . . . . . . . . . . . . . . 5,917 .047 .181 .032 .260

1992 . . . . . . . . . . . . . . 6,244 .048 .199 .058 .305

1993 . . . . . . . . . . . . . . 6,558 .049 .215 .067 .331

1994 . . . . . . . . . . . . . . 6,947 .049 .218 .065 .332

1995 . . . . . . . . . . . . . . 7,265 .048 .225 .070 .343

1996 . . . . . . . . . . . . . . 7,636 .047 .229 .071 .347

1997 . . . . . . . . . . . . . . 8,083 .045 .219 .066 .330

Estimated:

1998 . . . . . . . . . . . . . . 8,384 .043 .220 .064 .328

1999 . . . . . . . . . . . . . . 8,735 .041 .216 .064 .321

2000 . . . . . . . . . . . . . . 9,119 .040 .215 .064 .319

2001 . . . . . . . . . . . . . . 9,532 .039 .213 .065 .317

2002 . . . . . . . . . . . . . . 9,981 .037 .211 .066 .315

2003 . . . . . . . . . . . . . . 10,469 .036 .210 .066 .312

2004 . . . . . . . . . . . . . . 11,002 .035 .208 .066 .309

2005 . . . . . . . . . . . . . . 11,579 .034 .206 .066 .307

2006 . . . . . . . . . . . . . . 12,202 .033 .204 .066 .304

2007 . . . . . . . . . . . . . . 12,866 .033 .202 .066 .301

2008 . . . . . . . . . . . . . . 13,540 .032 .200 .066 .298

2009 . . . . . . . . . . . . . . 14,253 .031 .199 .066 .296

2010 . . . . . . . . . . . . . . 15,000 .031 .197 .066 .294

2011 . . . . . . . . . . . . . . 15,779 .030 .196 .065 .291

2012 . . . . . . . . . . . . . . 16,571 .030 .195 .065 .289

2013 . . . . . . . . . . . . . . 17,393 .029 .193 .065 .288

2014 . . . . . . . . . . . . . . 18,255 .029 .192 .064 .286

2015 . . . . . . . . . . . . . . 19,145 .029 .191 .064 .284

2016 . . . . . . . . . . . . . . 20,077 .029 .190 .063 .283

2017 . . . . . . . . . . . . . . 21,041 .029 .189 .063 .281

2018 . . . . . . . . . . . . . . 22,048 .029 .188 .063 .280

2019 . . . . . . . . . . . . . . 23,096 .029 .187 .062 .278

2020 . . . . . . . . . . . . . . 24,185 .029 .186 .062 .277

2021 . . . . . . . . . . . . . . 25,323 .030 .184 .061 .276

2022 . . . . . . . . . . . . . . 26,503 .030 .183 .061 .274
41

1998 SSI Annual Report

Figure IV.D1 presents 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 0.35 percent of GDP in 1996) due to a combination of factors discussed earlier in section

IV. Welfare reform legislation resulted in a drop in the cost of SSI as a percentage of GDP in 1997. As

mentioned earlier, the estimates prepared for this report project total participation in the SSI program to remain a stable proportion of the U.S. population. Federal SSI expenditures, after adjusting

for growth in prices, are projected to grow slightly faster than the population due to the estimated

small amount of real growth in the SSI average benefit, as discussed previously in section IV.C. Since

the real growth projected for GDP under the 1998 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 continue to decline as a percentage of

GDP over the next 25 years, reaching 0.27 percent of GDP by 2022.

 Figure IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1975-2025

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Historical Estimated

Blind or Disabled Children

Blind or Disabled Adults

Aged
1998 SSI Annual Report

42

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 Accounting Office-approved method of cost

analysis of the respective expenses of the SSI and OASDI programs, and a final settlement by the

end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected

administrative costs of the SSI program.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-98

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1

 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.

Beneficiary

services 2

 2 Includes payments to State Vocational Rehabilitation (VR) agencies for VR services and payments for

referral and monitoring services for Drug Addicts and Alcoholics, which terminated effective January,

1997.

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

 3 Reflects a one-time payment to State VR agencies for prior year expenses.

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 (partially estimated) . . . . . . . 2,273 46.0
43

1998 SSI Annual Report

V. APPENDICES

A. HISTORY OF PROVISIONS

Act 1. Basic Eligibility Requirements

1972 (Public Law 92-603, enacted October 30.)

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of correcting

lenses, or with tunnel vision of 20 degrees or less. An individual transferred from a State

Aid to the Blind (AB) program is eligible if he/she received such State aid in December

1973 and continues to meet the October 1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by reason of

any medically determinable physical or mental impairment expected to result in death or

that has lasted or can be expected to last for a continuous period of at least 12 months.

For a child under age 18, eligibility is based on disability of severity comparable with that

of an adult. An individual transferred from a State Aid to the Permanently and Totally

Disabled (APTD) program to SSI is also eligible if he/she received such State aid in

December 1973 and continues to meet the October 1972 State definition of disability.

1973 (Public Law 93-233, enacted December 31.)

Only persons who had received APTD before July 1973 and were on the rolls in December

1973 may receive SSI on the basis of the State definition of disability; those who became

eligible for State aid from July to December 1973 must meet the Federal definition of disability.

1980 (Public Law 96-265, enacted June 9.)

A disabled recipient who loses Federal SSI eligibility because of earnings at the substantial gainful activity level may continue to receive a special benefit under section 1619 and

retain eligibility for Medicaid under title XIX of the Social Security Act. This special benefit status may continue as long as the recipient has the disabling impairment and meets

all nondisability SSI eligibility criteria. States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December 31, 1983.

Beginning in January 1984, under a 1-year demonstration project, this provision was continued for persons already eligible for either regular SSI payments or special monthly

benefits.

1984 (Public Law 98-460, enacted October 9.)

The special benefit and Medicaid provisions of the 1980 legislation were extended

through June 30, 1987 (retroactive to January 1, 1984).

1986 (Public Law 99-643, enacted November 10.)

The special benefit and Medicaid provisions of the 1980 amendments were 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

benefits and either the special cash benefit or Medicaid eligibility under section 1619.
1998 SSI Annual Report

44

Act

1996 (Public Law 104-193, enacted August 22.)

For individuals under age 18, the “comparable severity” standard was eliminated and

replaced with a requirement that a child would be considered disabled if he/she had a

medically determinable impairment that resulted in “marked and severe functional limitations,” and met the existing statutory duration requirement. The law also eliminated

references to “maladaptive behaviors” in the Listing of Impairments for children, and discontinued 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.

2. Other Eligibility Provisions

a. Citizenship and Residence

1972 (Public Law 92-603, enacted October 30.)

The individual must reside within one of the 50 States or the District of Columbia and be

a citizen or an alien lawfully admitted for permanent residence or permanently residing

in the United States under color of law. Persons living outside the United States for an

entire calendar month lose their eligibility for such a month.

1976 (Public Law 94-241, enacted March 24.)

Eligibility for SSI was 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.

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 was 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.
45

1998 SSI Annual Report

Act

1996 (Public Law 104-193, enacted August 22.)

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless they are in

a “qualified alien” category and meet one of certain exceptions such as lawful permanent

residents who earn or can be credited with 40 qualifying quarters of earnings, certain refugee type categories eligible for up to 5 years of time limited eligibility, or active duty U.S.

military or veterans and their spouses and children. Extends eligibility for aliens receiving SSI as of August 22, 1996 (the enactment date of the law) for 1 year after the enactment date for those aliens found ineligible under the new standards.

(Public Law 104-208, enacted September 30.)

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens

(and their children) who have been battered or subjected to extreme cruelty by a spouse

or parent or a member of the spouse’s or parent’s family living in the same household.

1997 (Public Law 105-18, enacted June 12.)

Extends eligibility for aliens receiving SSI as of August 22, 1996, until September 30,

1997, for those found ineligible under the new alien standards of Public Law 104-193.

(Public Law 105-33, enacted August 5.)

Further amended 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. Provided that Cuban and Haitian entrants and Amerasian immigrants qualify for

time limited eligibility, and increased the time limit from 5 to 7 years for all categories.

Additional exceptions were 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 were 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.

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

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.
1998 SSI Annual Report

46

Act

1994 (Public Law 103-296, enacted August 15.)

Any individual who is receiving SSI based on a disability where drug addiction or alcoholism (DA&A) 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 benefit suspensions.

Before benefits 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 benefits; however, this does not prevent such individuals from reapplying and again becoming

eligible for benefits.

SSI disability benefits 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.

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 may retain the lesser of 10 percent of the monthly benefit or $51 (indexed to the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State required.

1996 (Public Law 104-121, enacted March 29.)

An individual is not considered disabled if drug addiction or alcoholism is a contributing

factor material to a finding of disability.

Applies drug addiction and alcoholism representative payee requirements enacted under

Public Law 103-296 to disabled SSI recipients who have a drug addiction or alcoholism

condition and are incapable of managing their benefits. In addition, these beneficiaries

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.
47

1998 SSI Annual Report

Act

1986 (Public Law 99-643, enacted November 10.)

Effective July 1, 1987, up to 2 full months of full-rate benefits can be made to recipients of

special SSI payments under section 1619 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 and for whom the receipt of benefits is necessary to maintain living

arrangements to which they may return.

1996 (Public Law 104-193, enacted August 22.)

Effective December 1996, institutionalized children under age 18 whose private health

insurance is making payments to the institution may receive no more than $30 per month

in Federal SSI.

e. Vocational Rehabilitation and Treatment

1972 (Public Law 92-603, enacted October 30.)

Blind or disabled individuals receiving Federal SSI benefits who are under age 65, must

be referred to the State agency providing services under the Vocational Rehabilitation Act

and must accept the services offered. States are reimbursed for the cost of services.

1976 (Public Law 94-566, enacted October 20.)

Blind or disabled children under age 16 must be referred to the State agency administering crippled children’s services or to another agency designated by the State. States are

reimbursed for the cost of services.

Of funds provided for these services, at least 90 percent must be used for children under

age 6 or for those who have never attended public schools.

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 if the services result in

the recipient’s return to work.
1998 SSI Annual Report

48

Act

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.)

Provision for continuation of payments to SSI recipients who have medically recovered

while enrolled in an approved vocational rehabilitation program extended to 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 the provision providing for benefit continuation to beneficiaries who medically

recover while participating in a State VR program to include beneficiaries participating

in a non-State VR program.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994 (Public Law 103-296, enacted August 15.)

During each of fiscal years 1996, 1997, and 1998, required SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In addition, during the

same period, required SSA to redetermine the SSI eligibility of at least one-third of all

childhood 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.)

Repealed the requirement that SSA redetermine the eligibility of at least one-third of all

childhood SSI recipients who reach age 18 after April 1995 during the 1-year period following attainment of age 18.

Requires a CDR:

 • at least once every 3 years for SSI recipients under age 18 who are eligible by reason

of an impairment which is likely to improve; and

 • not later than 12 months after birth for recipients whose low birth weight is a contributing factor material to the determination of their disability.

Requires eligibility redetermination for all childhood SSI recipients eligible for the month

before the month in which they attain age 18.

 1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment status.
49

1998 SSI Annual Report

Act

Requires redetermination of eligibility for children considered disabled based on an individual functional assessment and/or consideration of maladaptive behavior.

Requires the representative payee of a childhood disability 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.

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 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 as a member of the household for deeming purposes.
1998 SSI Annual Report

50

Act

1996 (Public Law 104-193, enacted August 22.)

Deeming of income and resources from an immigration sponsor to a noncitizen continues

until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor signs a new legally enforceable

affidavit of support.

(Public Law 104-208, enacted September 30.)

Amends Public Law 104-193 to add two exceptions to the sponsor-to-alien deeming:

 • provides that if the noncitizen is indigent and would be unable to obtain food and

shelter without SSI benefits even after receiving support from the sponsor, then only

the amount of income and resources actually provided by the sponsor will be counted

for a 12-month period after a determination of indigence; and

 • provides that in certain cases, deeming would not apply for a 12-month period (with

some options for extension) if the noncitizens (or their children) have been battered,

or subjected to extreme cruelty by family members.

1997 (Public Law 105-33, enacted August 5.)

Amends Public Law 104-208 to add an additional exception to sponsor-to-alien deeming

when the parent of a noncitizen has been battered or subjected to extreme cruelty by family members.

3. Federal Benefit Payments

a. Windfall Offset

1980 (Public Law 96-265, enacted June 9.)

Offset (by reduction of retroactive Social Security benefits) to prevent persons whose initial OASDI payment is retroactive from receiving more in total benefits for the same

period 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.
51

1998 SSI Annual Report

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, living arrangements, and other

conditions 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-of-living increase is not

delayed as it otherwise would be.

1987 (Public Law 100-203, enacted December 22.)

Provides an exception to retrospective monthly accounting so that amounts received

under Aid to Families With Dependent Children (AFDC), foster care, refugee cash assistance, Cuban-Haitian entrant assistance, or general and child welfare assistance provided by the Bureau of Indian Affairs are counted only in the month received.

1993 (Public Law 103-66, enacted August 10.)

Changes the method of computing the SSI benefit to persons receiving the value of the

one-third reduction. The effect of the increased value at the time of the cost-of-living

increase is not delayed as it otherwise would be. Effective January 1995.

d. Uncashed Checks

1981 (Public Law 97-35, enacted August 13.)

States that have Federally-administered supplements to be credited their share of SSI

checks that remain unnegotiated for 180 days.

1987 (Public Law 100-86, enacted August 10.)

SSI checks now unnegotiable after 1 year. States are credited their share of SSI checks

after 1 year rather than 180 days.

e. Rounding of Payment Amounts

1982 (Public Law 97-248, enacted September 3.)

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to

be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent

cost-of-living adjustments will be calculated on the previous year’s benefit standard

before rounding.
1998 SSI Annual Report

52

Act 4. Federal Benefit Rates

Basic benefit standards are used in computing the amount of Federal SSI payments. Benefit levels differ for individuals and couples living in households and for persons in Medicaid institutions. Individuals or couples living in their own households receive the full

Federal benefit. If an individual or couple is living in another person’s household and

receiving support and maintenance there, the Federal benefit is reduced by one-third.

The Federal benefit rates for persons in households are increased annually to reflect

increases in the cost of living. Legislation affecting the level of Federal benefit rates since

the inception of the SSI program are summarized in table V.A1.

Table V.A1.—Federal Benefit Rates Set by Legislation

Act Living arrangements 1 

 1 For those in another person’s household receiving support and maintenance there, the Federal benefit rate is reduced by one-third.

Amount 2 

 2 For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.

Individual Couple Conditions

1972 3 . . . .

 3 Public Law 92-603, enacted October 30, 1972.

Own household 4 

 4 Includes persons in private institutions whose care in not provided by Medicaid.

$130.00 $195.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 5 . . . .

 5 Public Law 93-66, enacted July 9, 1973.

— 140.00 210.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 6 . . . .

 6 Public Law 93-233, enacted December 31, 1973.

— 140.00 210.00 Effective January 1, 1974.

1973 6 . . . . . — 146.00 219.00 Effective July 1, 1974.

1974 7 . . . .

 7 Public Law 93-368, enacted August 7, 1974.

— — — 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.

— 8 157.70

 8 Subject to automatic provisions, see table IV.A2

8 236.60 Effective July 1, 1975.

1983 9 . . . .

 9 Public Law 98-21, enacted April 20, 1983.

— 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 . . . .

 10 Public Law 100-203, enacted December 22, 1987.

— 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).
53

1998 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.

b. Special Exclusions

1972 (Public Law 92-603, enacted October 30.)

Any amount of tax rebate issued to an individual by any public agency that is based on

either real property or food purchase taxes.

Grants, scholarships, and fellowships used to pay tuition and fees at an educational institution.

Income required for achieving an approved self-support plan for blind or disabled persons.

Work expenses of blind persons.

For blind persons transferred from State programs to SSI, income exclusions equal to the

maximum amount permitted as of October 1972 under the State programs.

Irregularly or infrequently received income totaling $60 or less of unearned income and

$30 of earned income in a calendar quarter.

Payment for foster care of ineligible child residing in recipient’s home through placement

by a public or private nonprofit child care agency.

One-third of any payment received from an absent parent for the support of a child eligible for SSI.

Certain earnings of a blind or disabled child under age 22 regularly attending an educational institution.

State or local government cash payments based on need and designed to supplement SSI

payments.

1976 (Public Law 94-331, enacted June 30.)

Disaster assistance from income for 9 months and application of one-third reduction for 6

months for certain victims of disasters.

(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.
1998 SSI Annual Report

54

Act

1977 (Public Law 95-113, enacted September 29.)

Food stamps, Federally donated food, and the value of free or reduced price food for

women and children under the Child Nutrition Act and National School Lunch Act.

(Public Law 95-171, enacted November 12.)

Provisions for exclusions for support and maintenance under the Disaster Relief and

Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1,

1978.

1980 (Public Law 96-222, enacted April 1.)

Earned income tax credit treated as earned income (temporarily excluded from 1975

through 1980).

(Public Law 96-265, enacted June 9.)

Remunerations received in sheltered workshops and work activity centers are considered

earned income and qualify for earned income disregards.

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

disregarded if the State determines that the assistance is based on need. Provision is

applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that

the assistance is based on need. Provision is applicable through June 1985.

1984 (Public Law 98-369, enacted July 18.)

The 1983 provisions for support and maintenance and home energy assistance continue

to October 1, 1987.

1986 (Public Law 99-498, enacted October 17.)

Educational assistance used for educational expenses under the Higher Education Act of

1965 as amended.
55

1998 SSI Annual Report

Act

1987 (Public Law 100-203, enacted December 22.)

The 1983 provisions for support and maintenance and home energy assistance made permanent.

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 the

interest on the funds 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.

Redefined 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.

6. Limits and Exclusions From 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.
1998 SSI Annual Report

56

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.

a. General Exclusions

1972 (Public Law 92-603, enacted October 30.)

A home of reasonable value—established by regulation as not exceeding a fair-market

value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not

exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding a market

value of $1,200.

An automobile, may be excluded, regardless of value, if the individual’s household uses it

for employment or medical treatment, or if it is modified to be operated by or for transportation of a handicapped person.

Life insurance with face value of $1,500 or less.

1976 (Public Law 94-569, enacted October 20.)

The recipient’s home, regardless of value, is excluded from consideration in determining

resources.

1977 (Public Law 95-171, enacted November 12.)

Assistance received under the Disaster Relief and Emergency Assistance Act of 1974 for 9

months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market

value; personal goods and household effects increased to $2,000 of equity value.

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.

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, if held in separately identifiable burial funds and if

inclusion of any of the burial funds in countable resources would cause the resource limit

to be exceeded.

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.
57

1998 SSI Annual Report

Act

1985 Regulations permitted exclusion, regardless of value of an automobile needed for essential transportation or modified for a handicapped person. The $4,500 current-market

value limit applies only if no automobile could be excluded based on the nature of its use.

1987 (Public Law 100-203, enacted December 22.)

Provides for suspension of the 1980 transfer of assets provision, in any month that it is

determined that undue hardship would result.

Real property that cannot be sold because 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).

Allows the exclusion of burial funds, as described above, regardless of whether or not

counting any portion of those funds would result in excess resources.

1988 (Public Law 100-360, enacted July 1.)

Removes the transfer-of-assets penalty for transfers made July 1, 1988, or later.

(Public Law 100-707, enacted November 23.)

Removes the time limit for exclusion of disaster assistance.

b. Special Exclusions

1972 (Public Law 92-603, enacted October 30.)

Assets of a blind or disabled individual that are necessary to an approved plan of self-support.

Tools and other property essential to self-support, 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.
1998 SSI Annual Report

58

Act

1990 (Public Law 101-508, enacted November 5.)

Earned income tax credit excluded for the month following the month the credit is

received.

Payments received from a State-administered fund established to aid victims of crime

excluded for a 9-month period. Individual not required to file for such benefits.

Payments received as State or local government relocation assistance excluded for a 9-

month period. (The provision expired 3 years after its effective date.)

Payments received under the Radiation Exposure Compensation Act.

1993 (Public Law 103-66, enacted August 10.)

Made 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 past-due benefits for disabled individuals under age 18 with a representative payee.

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.
59

1998 SSI Annual Report

Act

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.)

May be made if applicants have a financial emergency in the month of application before

the month that all eligibility requirements are met. These advance payments must be

repaid within 6 months.

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 was made permanent.

1987 (Public Law 100-203, enacted December 22.)

Extends interim assistance reimbursement to situations in which payments are made by

States or political subdivisions to persons whose SSI payments were suspended or terminated and who subsequently are found to be eligible for such benefits. Also clarifies that

the payment from which the interim assistance reimbursement is paid must be the first

payment of benefits relating to the interim period.

8. Medicaid Eligibility

1972 (Public Law 92-603, enacted October 30.)

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively,

they could 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.
1998 SSI Annual Report

60

Act

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.)

Restored Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI

due to a change in the Social Security disabled widow(er)s benefits reduction factor.

Medicaid protection for disabled widow(er)s whose title II benefits increased in 1984

because of a change in the actuarial reduction formula.

(Public Law 99-643, enacted November 10.)

The SSI recipient status for Medicaid eligibility provision of the 1980 amendments was

made permanent.

Effective July 1, 1987, certain expenses that would be lost if SSI eligibility was discontinued may be 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) 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.
61

1998 SSI Annual Report

Act 9. State Supplementation

1972 (Public Law 92-603, enacted October 30.)

States were 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, was 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.)

Provision was made 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 cost-of-living

increase, such an increase will be disregarded 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.)

Began 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.
1998 SSI Annual Report

62

Act

1987 (Public Law 100-203, enacted December 22.)

Provided for Federal administration of State supplements to residents of medical institutions.

Provided 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.)

The Omnibus Budget Reconciliation Act (OBRA) of 1993 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.)

Revised the schedule of per-check fees for Federal administration of State supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provided a formula for determining the fee beyond fiscal year 2002.
63

1998 SSI Annual Report

B. INCOME AND RESOURCE EXCLUSIONS

1. Earned Income Exclusions

 • Any refund of Federal income taxes received under section 32 of the Internal Revenue Code

(relating to earned income tax credit) and any payment received under section 3507 of the Internal Revenue Code (relating to advance payment of earned income tax credit); 

 • Up to $10 of earned income in a month if it is infrequent or irregular, that is, if it is received only

once in a calendar quarter from a single source or if its receipt cannot reasonably be expected. (If

the total amount of the infrequent or irregular income exceeds $10, this exclusion cannot be

used.); 

 • Up to $400 per month but not more than $1,620 in a calendar year received by a blind or disabled

child who is a student regularly attending school; 

 • Any portion of the monthly $20 exclusion for unearned income that has not been used; 

 • $65 of earned income in a month; 

 • Amounts used to pay impairment-related work expenses if the 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 65; 

 • 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 65; 

 • 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; 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 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; 

 • Any portion of a grant, scholarship or fellowship used for paying tuition, fees or other necessary

educational expenses. Portions set aside for food, clothing or shelter are counted; 

 • Food raised by a household if it is consumed by that household; 

 • Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any Federal statute because of a catastrophe which the President of the United

States declares to be a major disaster; 
1998 SSI Annual Report

64

 • Up to $20 of unearned income in a month if it is infrequent or irregular; that is, if a type of

unearned income is received only once during a calendar quarter from a single source or if it cannot reasonably be expected; 

 • Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind

or disabled individual in the month before he/she attained age 65; 

 • Periodic payments made by a State under a program established before July 1, 1973, and based

solely on the recipient’s length of residence and attainment of age 65; 

 • Payments for providing foster care to an ineligible child who was placed in the recipient’s home

by a public or private nonprofit child placement or child care agency; 

 • Any interest earned on excluded burial funds and any appreciation in the value of an excluded

burial arrangement which are left to accumulate and become part of the separately identifiable

burial fund; 

 • Certain support and maintenance assistance provided in the form of home energy assistance; 

 • One-third of support payments made by an absent parent if the recipient is a child; 

 • The first $20 of unearned income in a month other than income in the form of in-kind support

and maintenance received in the household of another and income based on need; 

 • The value of any assistance paid with respect to a dwelling unit under the United States Housing

Act of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act of

1965, title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959; 

 • Any interest accrued on and left to accumulate as part of the value of an excluded burial space

purchase agreement (after April 1, 1990); 

 • The value of any commercial transportation ticket, for travel by the 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;

 • Interest or other earnings on a dedicated account excluded from resources; and

 • Unearned income excluded by other Federal laws. See Appendix to Subpart K, 20 CFR 416.
65

1998 SSI Annual Report

3. Resource Exclusions

 • The home (including the land appertaining thereto); 

 • Household goods and personal effects to the extent that their total value does not exceed $2,000; 

 • An automobile may be totally excluded if: (1) it is necessary for employment; (2) it is necessary

for the medical treatment of a specific or regular medical problem; (3) it is modified for the operation by or transportation of, a handicapped individual; or (4) it is necessary to perform essential

daily activities. If the automobile does not meet any of the above requirements, it may be

excluded to the extent that its current-market value does not exceed $4,500; 

 • Property of a trade or business which is essential to the means of self-support; 

 • Nonbusiness property which is essential to the means of self-support; 

 • Resources of a blind or disabled individual which are necessary to fulfill an approved plan for

achieving self-support; 

 • Stock in regional or village corporations held by natives of Alaska during the 20-year period in

which the stock is inalienable pursuant to the Alaska Native Claims Settlement Act; 

 • Life insurance owned by an individual (and spouse, if any) provided that all life insurance on any

person does not exceed a face value of $1,500; 

 • Restricted allotted Indian lands; 

 • Payments or benefits provided under a Federal statute other than title XVI of the Social Security

Act where exclusion is provided by such statute; 

 • Disaster relief assistance; 

 • Burial spaces and certain funds up to $1,500 for burial expenses; 

 • Title XVI or title II retroactive payments (for 6 months following receipt); 

 • Housing assistance; 

 • Refunds of Federal income taxes and advances made by an employer relating to an earned

income tax credit, (for the month following receipt);

 • 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); and

 • Dedicated financial institution accounts for disabled children.
1998 SSI Annual Report

66

C. HISTORICAL ALLOWANCE DATA

At the end of 1997, 79 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 Service (DDS) for a decision. Initial DDS decisions that are unfavorable to the applicant may be appealed to the DDS for a reconsideration of that

initial denial. Persons denied at the reconsideration level may apply to the Office of Hearings and

Appeals (OHA) for a hearing before an Administrative Law Judge (ALJ), and if dissatisfied with the

hearing decision may request a review by the Appeals Council. Those dissatisfied with the Appeals

Council’s action may seek further relief via the Federal court system.

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 determination process and only captured various point-in-time snapshots of this

process. A complete picture of the disability determination process can be fully understood only by

compiling a longitudinal data base from administrative records at all levels of appeal. Beginning in

1993, such a longitudinal data base (the “Disability Research File”) was constructed by the Division

of Disability Program Information and Studies within SSA’s Office of Disability to assist the agency

in understanding and managing this process. In the process of constructing this data base, 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 is a table based on the

Disability Research File showing the latest available summary of results on disability determinations

under title XVI.

1. Technical Notes on the Disability Research File

Methods used to build the title XVI Disability Research File—The “base” file for the title XVI research

file is the Supplemental Security Record (SSR). This “base” file is matched against records from various other administrative sources, including transactions from the disability determination (SSA-831)

files, Social Security number identification records and earnings data, and OHA case control data. 

The process used to build this research file is cumbersome, involving more than 150 steps, and generally requiring about 4 months to complete. Much of this complexity flows from the fact that the file is

assembled based on filing date cohorts, even though many of the source files do not contain a filing

date. The three most recent calendar year cohorts are completely reassembled from the basic data

sources. Older calendar year cohorts are updated to reflect activity since the last time the file was

built. Since the process is so time consuming, the research file is updated only annually (usually

beginning in July). Therefore, research file data are not yet available for claims filed in 1997. 

Methods used for estimating results (through February 1998) for claims filed in 1997—Although decision counts are available for 1997 filers (from many of the “source” files), those counts do not translate directly into the claims/appeals counts included in the following table, 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 1998) for 1997 filers, we started from

the latest available transaction data, such as the SSA-831 data, and took into account recent years’

experience of the relationship between corresponding earlier transaction data and the resulting

claims/appeals data in completed research files. We also considered claims counts from an extract file

from the SSR. While we believe that the methods used are reasonable, it must be emphasized that

the resulting estimates may prove to be of limited reliability, especially in light of the fact that the

estimates give results only through February 1998, whereas the final research files will reflect information through June 1998. Actual data for 1997 will be available to replace these estimates in the

1999 Annual Report.
67

1998 SSI Annual Report

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-96 filers are as of June 1997. Results for those years’ filers have been updated to

include OHA results through August 1997. 

 • Data for 1997 filers are preliminary estimates as of February 1998, and reflect larger numbers of

claims still pending. February 1998 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. Experience shows that there is a lower allowance rate

on claims that have been pending in OHA a year or more, than on previously decided appeals. 

 • Computations of overall allowance rates exclude cases which have been appealed and for which a

decision is pending.
1998 SSI Annual Report

68

1 Data for claims filed in 1988-96 reflect results as of June 1997. The numbers of total claims filed for 1995 and 1996 are subject to change. Data for

claims filed in 1997 are preliminary estimates as of February 1998. The ultimate number of allowances and denials are subject to change until all initial

decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Percentage of denials at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, as well as beyond OHA to the Federal courts.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

7 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown will ultimately be lower as all

cases are processed. This is true since allowances are generally processed more quickly than denials.

8 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).

9 Percentage of initial decisions excluding appealed cases pending decisions.

10 Percentage of initial denials.

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 to reconsideration

Number Percent 2 Number Percent 3

1988 946,603 — 272,204 28.8 674,399 265,151 39.3

1989 969,218 — 292,044 30.1 677,174 274,823 40.6

1990 1,099,805 — 347,823 31.6 751,982 320,207 42.6

1991 1,288,329 — 415,336 32.2 872,993 383,667 43.9

1992 1,415,624 — 436,888 30.9 978,736 433,244 44.3

1993 1,503,276 — 416,300 27.7 1,086,976 485,164 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 482,533 44.6

1995 1,316,664 — 324,239 24.6 992,425 433,526 43.7

1996 1,238,735 11,154 298,569 24.3 929,012 377,163 40.6

1997 1,088,700 135,600 270,800 28.4 682,300 244,400 35.8

Calendar year 

of filing 

Reconsiderations Appeals beyond reconsideration 4

Pending

Allowances

Denials

Appeals to beyond

reconsideration Allowances

Number Percent 2 Number 5 Percent 3 Pending 6 Number Percent 7 Denials 8

1988 — 38,385 14.5 226,766 140,659 62.0 — 82,412 58.6 58,247

1989 — 43,505 15.8 231,318 146,069 63.1 — 90,162 61.7 55,907

1990 — 52,055 16.3 268,152 175,471 65.4 — 109,075 62.2 66,396

1991 — 59,158 15.4 324,509 222,311 68.5 910 139,529 63.0 81,872

1992 — 58,819 13.6 374,425 261,846 69.9 3,698 158,235 61.3 99,913

1993 — 57,939 11.9 427,225 297,059 69.5 14,118 166,600 58.9 116,341

1994 — 55,830 11.6 426,703 295,692 69.3 41,502 153,330 60.3 100,860

1995 — 50,609 11.7 382,917 261,059 68.2 81,630 110,577 61.6 68,852

1996 24,622 38,289 10.9 314,252 204,567 65.1 142,934 41,580 67.5 20,053

1997 48,700 23,900 12.2 171,800 80,900 47.1 70,300 8,030 75.8 2,570

Calendar year 

of filing 

Selected summary totals

Allowances at all levels Allowances at all appeal levels Denials after all appeals

Number Percent 9 Number Percent 10 Number Percent 10

1988 393,001 41.5 120,797 17.9 553,602 82.1

1989 425,711 43.9 133,667 19.7 543,507 80.3

1990 508,953 46.3 161,130 21.4 590,852 78.6

1991 614,023 47.7 198,687 22.8 673,396 77.1

1992 653,942 46.3 217,054 22.2 757,984 77.4

1993 640,839 43.0 224,539 20.7 848,319 78.0

1994 563,155 40.4 209,160 19.3 832,301 76.9

1995 485,425 39.3 161,186 16.2 749,609 75.5

1996 378,438 35.7 79,869 8.6 681,587 73.4

1997 302,730 36.3 31,930 4.7 531,370 77.9
69

1998 SSI Annual Report

1 Data for claims filed in 1991-96 reflect results as of June 1997. The numbers of total claims filed for 1995 and 1996 are subject to change. Data for

claims filed in 1997 are preliminary estimates as of February 1998. The ultimate number of allowances and denials are subject to change until all initial

decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Percentage of denials at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, as well as beyond OHA to the Federal courts.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

7 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown will ultimately be lower as all

cases are processed. This is true since allowances are generally processed more quickly than denials.

8 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).

9 Percentage of initial decisions excluding appealed cases pending decisions.

10 Percentage of initial denials.

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 to reconsideration

Number Percent 2 Number Percent 3

1991 250,962 — 148,220 59.1 102,742 24,702 24.0

1992 372,971 — 189,079 50.7 183,892 49,297 26.8

1993 496,131 — 212,268 42.8 283,863 75,967 26.8

1994 525,013 — 172,219 32.8 352,794 92,093 26.1

1995 488,540 — 145,710 29.8 342,830 85,452 24.9

1996 454,778 9,274 125,264 28.1 320,240 65,594 20.5

1997 327,900 44,300 97,500 34.4 186,100 34,100 18.3

Calendar year 

of filing 

Reconsiderations Appeals beyond reconsideration 4

Pending

Allowances

Denials

Appeals to beyond

reconsideration Allowances

Number Percent 2 Number 5 Percent 3 Pending 6 Number Percent 7 Denials 8

1991 — 5,605 22.7 19,097 9,222 48.3 58 3,878 42.3 5,286

1992 — 9,463 19.2 39,834 19,889 49.9 492 7,458 38.4 11,939

1993 — 11,338 14.9 64,629 31,476 48.7 3,130 10,114 35.7 18,232

1994 — 11,332 12.3 80,761 38,678 47.9 11,527 10,426 38.4 16,725

1995 — 9,815 11.5 75,637 34,870 46.1 21,315 4,998 36.9 8,557

1996 9,157 6,216 11.0 50,221 20,051 39.9 17,536 1,052 41.8 1,463

1997 7,800 3,200 12.2 23,100 6,680 28.9 6,275 174 43.0 231

Calendar year 

of filing 

Selected summary totals

Allowances at all levels Allowances at all appeal levels Denials after all appeals

Number Percent 9 Number Percent 10 Number Percent 10

1991 157,703 62.9 9,483 9.2 93,201 90.7

1992 206,000 55.3 16,921 9.2 166,479 90.5

1993 233,720 47.4 21,452 7.6 259,281 91.3

1994 193,977 37.8 21,758 6.2 319,509 90.6

1995 160,523 34.4 14,813 4.3 306,702 89.5

1996 132,532 31.6 7,268 2.3 286,279 89.4

1997 100,874 37.4 3,374 1.8 168,651 90.6
1998 SSI Annual Report

70

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a

recipient is still eligible for SSI and still receiving the correct payment amount. There are two types

of redeterminations: scheduled and unscheduled. Scheduled redeterminations are selected annually

or once every 6 years depending on the likelihood of payment error in the case. Except for certain

institutionalized individuals, all recipients are periodically scheduled for a redetermination.

Unscheduled redeterminations are completed on an as needed basis when recipients report, or we

discover, certain changes in circumstances that could affect the continuing SSI payment amount. The

numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations completed and in the numbers of scheduled

redeterminations that were selected but not completed during the fiscal year due to the impact of

other workload requirements on the field offices. When redeterminations cannot be completed in the

fiscal year scheduled, they are carried over into the next fiscal year. Table V.D1 provides historical

data on numbers of redeterminations completed by fiscal year. 

1 Decrease in number of redeterminations completed in fiscal

year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

2 Effective fiscal year 1995, approximately 200,000 fewer redeterminations were selected annually due to a change from a 3-

year to a 6-year redetermination cycle for low-error profile

cases.

During periods between scheduled redeterminations, SSA uses the limited issue process to detect situations that have the potential to affect the continuing eligibility of SSI recipients and SSI payment

amounts. SSA conducts periodic computer matches between its own systems and the systems of other

Federal and State agencies to determine if the income and resources information on SSI recipients’

records is in conflict with data obtained from the other systems. Matches detecting conflicting information usually result in the posting of an identifier to the Supplemental Security Record of the SSI

recipient. The case is then selected and scheduled for a field office review of the issue for which the

indicator was posted. SSA develops over 600,000 limited issues annually.

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the

Social Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at least every 3 years. A similar requirement was not put in place at that time for disabled

title XVI recipients. Although the Committee on Finance of the Senate stated in its report on this legTable V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-97

[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
71

1998 SSI Annual Report

islation that the same continuing disability reviews (CDR) procedures should be applied with respect

to both the title II and title XVI programs, title XVI was not amended to accomplish this. In 1994 and

again in 1996 legislation was enacted adding some mandates for the performance of CDRs under the

SSI program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required

to conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA

was required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who

reach age 18 after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child

recipients who reach age 18, with such redetermination being based on an adult eligibility criteria.

This law also added the requirement that a CDR be performed:

 • at least once every 3 years for SSI recipients under age 18 who are eligible by reason of an

impairment which is likely to improve; and

 • not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability.

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 101,856 cases for which a scheduled title XVI

CDR was processed in 1997.

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 results 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.
1998 SSI Annual Report

72

Table V.D2.—SSI Disabled Adult Reviews: Disposition of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision 1and 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 3

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,083 94.8 60 52 86.7

1994 10,945 9,127 83.4 1,818 1,253 68.9

1995 16,736 12,484 74.6 4,252 2,905 68.3

1996 26,884 20,636 76.8 6,248 4,119 65.9

1997 51,466 40,770 79.2 10,696 6,777 63.4

Title XVI initiated reviews

1993 ——————

1994 ——————

1995 4,287 3,277 76.4 1,010 665 65.8

1996 55,025 46,273 84.1 8,752 6,146 70.2

1997 69,556 57,694 82.9 11,862 8,437 71.1

Total reviews, SSI disabled adults

1993 1,143 1,083 94.8 60 52 86.7

1994 10,945 9,127 83.4 1,818 1,253 68.9

1995 21,023 15,761 75.0 5,262 3,570 67.8

1996 81,909 66,909 81.7 15,000 10,265 68.4

1997 121,022 98,464 81.4 22,558 15,214 67.4

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 6

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 4 20 41.7 28 13 46.4 8 4 80.0 1

1994 38 525 43.2 690 388 56.2 234 73 47.4 81

1995 69 1,215 42.8 1,621 984 60.7 645 150 44.2 189

1996 110 1,825 45.5 2,184 1,278 58.5 904 135 36.1 239

1997 1,099 3,336 58.8 2,342 1,310 55.9 1,169 53 37.6 88

Title XVI initiated reviews

1993 — — — — — — — — — —

1994 — — — — — — — — — —

1995 31 230 36.3 404 256 63.4 159 40 41.2 57

1996 113 3,229 53.5 2,804 1,916 68.3 1,447 153 32.6 316

1997 1,531 4,212 61.0 2,694 1,575 58.5 1,414 61 37.9 100

Total reviews, SSI disabled adults

1993 4 20 41.7 28 13 46.4 8 4 80.0 1

1994 38 525 43.2 690 388 56.2 234 73 47.4 81

1995 100 1,445 41.6 2,025 1,240 61.2 804 190 43.6 246

1996 223 5,054 50.3 4,988 3,194 64.0 2,351 288 34.2 555

1997 2,630 7,548 60.0 5,036 2,885 57.3 2,583 114 37.7 188
73

1998 SSI Annual Report

Table V.D2.—SSI Disabled Adult Reviews: Disposition of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision 1 and Level of Decision (Cont.)

1 Data reflects results as of March 1998. The historical numbers of initial decisions had to be reconstructed and, therefore, differ slightly from totals

reported in the 1997 Annual Report. The ultimate number of continuations and cessations are subject to change until all appeals are final.

2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases

have a minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

7 Percentage of initial decisions excluding appealed cases pending decisions.

8 Percentage of initial decisions.

Fiscal year of 

initial DDS 

decision

Selected summary totals

Continuations at all levels Cessations at initial level Cessations after all appeals

Number Percent 7 Number Percent 8 Number Percent 7

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,107 97.9 60 5.2 24 2.1

1994 9,725 91.1 1,818 16.6 948 8.9

1995 13,849 86.4 4,252 25.4 2,173 13.6

1996 22,596 87.3 6,248 23.2 3,274 12.7

1997 44,159 89.8 10,696 20.8 5,039 10.2

Title XVI initiated reviews

1993 —— —— ——

1994 — — — — — —

1995 3,547 86.6 1,010 23.6 550 13.4

1996 49,655 92.9 8,752 15.9 3,810 7.1

1997 61,967 93.0 11,862 17.1 4,644 7.0

Total reviews, SSI disabled adults

1993 1,107 97.9 60 5.2 24 2.1

1994 9,725 91.1 1,818 16.6 948 8.9

1995 17,396 86.5 5,262 25.0 2,723 13.5

1996 72,251 91.1 15,000 18.3 7,084 8.9

1997 106,126 91.6 22,558 18.6 9,683 8.4
1998 SSI Annual Report

74

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

Initial Decision 1and 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 3

Reviews of low-birth-weight children

1994 1,225 771 62.9 454 159 35.0

1995 4,231 2,083 49.2 2,148 665 31.0

1996 5,709 2,491 43.6 3,218 904 28.1

1997 7,091 4,487 63.3 2,604 760 29.2

Redeterminations at age 18

1994 ——————

1995 71 64 90.1 7 5 71.4

1996 12,640 8,158 64.5 4,482 2,055 45.9

1997 48,834 22,435 45.9 26,399 13,419 50.8

All other reviews of SSI disabled children

1994 ——————

1995 3,535 2,501 70.7 1,034 541 52.3

1996 789 399 50.6 390 210 53.8

1997 14 8 57.1 6 3 50.0

Total reviews, SSI disabled children

1994 1,225 771 62.9 454 159 35.0

1995 7,837 4,648 59.3 3,189 1,211 38.0

1996 19,138 11,048 57.7 8,090 3,169 39.2

1997 55,939 26,930 48.1 29,009 14,182 48.9

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 6

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of low-birth-weight children

1994 6 42 27.5 111 48 43.2 26 6 27.3 16

1995 48 171 27.7 446 201 45.1 137 11 17.2 53

1996 182 263 36.4 459 146 31.8 117 6 20.7 23

1997 325 173 39.8 262 14 5.3 14 0 0.0 0

Redeterminations at age 18

1994 — — — — — — — — — —

1995 1 2 50.0 2 2 100.0 1 1 100.0 0

1996 208 635 34.4 1,212 515 42.5 370 26 17.9 119

1997 5,328 2,535 31.3 5,556 1,997 35.9 1,973 12 50.0 12

All other reviews of SSI disabled children

1994 — — — — — — — — — —

1995 41 164 32.8 336 187 55.7 122 15 23.1 50

1996 36 57 32.8 117 42 35.9 32 4 40.0 6

1997 1 1 50.0 1 1 100.0 1 0 0.0 0

Total reviews, SSI disabled children

1994 6 42 27.5 111 48 43.2 26 6 27.3 16

1995 90 337 30.1 784 390 49.7 260 27 20.8 103

1996 426 955 34.8 1,788 703 39.3 519 36 19.6 148

1997 5,654 2,709 31.8 5,819 2,012 34.6 1,988 12 50.0 12
75

1998 SSI Annual Report

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

Initial Decision 1 and Level of Decision (Cont.)

1 Data reflects results as of March 1998. The historical numbers of initial decisions had to be reconstructed and, therefore, differ slightly from totals

reported in the 1997 Annual Report. The ultimate number of continuations and cessations are subject to change until all appeals are final.

2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases

have a minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

7 Percentage of initial decisions excluding appealed cases pending decisions.

8 Percentage of initial decisions.

Fiscal year of 

initial DDS 

decision

Selected summary totals

Continuations at all levels Cessations at initial level Cessations after all appeals

Number Percent 7 Number Percent 8 Number Percent 7

Reviews of low-birth-weight children

1994 819 68.7 454 37.1 374 31.3

1995 2,265 56.0 2,148 50.8 1,781 44.0

1996 2,760 51.0 3,218 56.4 2,650 49.0

1997 4,660 69.0 2,604 36.7 2,092 31.0

Redeterminations at age 18

1994 —— —— ——

1995 67 97.1 7 9.9 2 2.9

1996 8,819 73.1 4,482 35.5 3,243 26.9

1997 24,982 60.1 26,399 54.1 16,551 39.9

All other reviews of SSI disabled children

1994 — — — — — —

1995 2,680 79.5 1,034 29.3 692 20.5

1996 460 63.8 390 49.4 261 36.2

1997 9 75.0 6 42.9 3 25.0

Total reviews, SSI disabled children

1994 819 68.7 454 37.1 374 31.3

1995 5,012 66.9 3,189 40.7 2,475 33.1

1996 12,039 66.2 8,090 42.3 6,154 33.8

1997 29,651 61.4 29,009 51.9 18,646 38.6
1998 SSI Annual Report

76

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received

SSI payments. Initially, the program contained a basic earned income exclusion that recognized the

additional costs associated with employment. In addition, the law contained a number of special

income exclusions which were intended as work incentives. Among these provisions were the income

exclusion for blind work expenses (BWE), plans for achieving self-support (PASS), and student

earned income (SEI).

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 income exclusions 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 limit that is ordinarily considered to

represent substantial gainful activity (SGA); 1 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. 2 

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs. Table V.E1 presents historical numbers of SSI recipients categorized according to their section

1619 status. Figure V.E1 presents the same information in graphical form.

 1 For the period 1980-89, the monthly SGA limit was set at $300. It was increased to $500 effective January, 1990.

 2 More detailed information on participation by SSI recipients in work incentive programs is provided in the Quarterly Report on SSI Disabled

Workers and Work Incentive Provisions prepared by the Office of Research, Evaluation and Statistics, Social Security Administration.
77

1998 SSI Annual Report

Note: Totals do not necessarily equal the sums of rounded components.

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-97

Year

In current-payment status 1619(b) Total

1619(a) workers 1

 1 In January, 1990, the SGA limit 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).

Other workers 2

 2 Workers’ earnings are at or below the SGA limit.

workers 3

 3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

workers

1987 . . . . . . . . . . . . . . 14,559 142,664 15,632 172,855

1988 . . . . . . . . . . . . . . 19,920 153,599 15,625 189,144

1989 . . . . . . . . . . . . . . 25,655 161,928 18,254 205,837

1990 . . . . . . . . . . . . . . 13,994 182,421 23,517 219,932

1991 . . . . . . . . . . . . . . 15,531 186,824 27,264 229,619

1992 . . . . . . . . . . . . . . 17,603 199,665 31,649 248,917

1993 . . . . . . . . . . . . . . 20,028 210,322 35,299 265,649

1994 . . . . . . . . . . . . . . 24,315 217,478 40,683 282,476

1995 . . . . . . . . . . . . . . 28,060 223,573 47,002 298,635

1996 . . . . . . . . . . . . . . 31,085 225,310 51,905 308,300

1997 . . . . . . . . . . . . . . 34,673 228,093 57,089 319,855

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

as of December, 1987-97

[In thousands]

0

50

100

150

200

250

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Calendar year

1619(a) workers

1619(b) workers

Other workers
1998 SSI Annual Report

78

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 data is available only for calendar years 1990 and later.

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 limit.

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.

2. Vocational Rehabilitation

SSA makes provision for blind or disabled individuals who are receiving SSI benefits to be referred to

the State Vocational Rehabilitation (VR) agencies. Recipients who have been referred to VR agencies

and accepted as clients lose eligibility for SSI benefits if they refuse, without good cause, the services

offered. As indicated in the Work Incentives section above, the 1980 amendments provided for the

continuation of SSI payments for certain disabled individuals enrolled in VR programs whose disability ceased due to medical recovery. This provision was extended to SSI blind recipients effective April,

1988. In 1994, regulations were amended to expand access to private and public VR providers when a

State VR agency does not serve an SSI recipient whom SSA refers for services. 

Table V.E2.—SSI Federally-Administered Blind or Disabled Individuals With SSI Recipient Status Participating 

in Other Work Incentives as of December, 1990-97

Year

PASS 1 

 1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

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

Table V.E3.—Average Monthly Earnings of SSI Federally-Administered Blind or

Disabled Working Recipients, as of December, 1987-97 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b) Total

1619(a) workers 1

 1 In January, 1990, the SGA limit 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).

Other workers 2

 2 Workers’ earnings are at or below the SGA limit.

 workers 3

 3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

workers

1987 . . . . . . . . . . . . . . $494 4 $124

 4 Estimated.

$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
79

1998 SSI Annual Report

From the beginning of the SSI program through 1981, VR agencies were reimbursed for the cost of

VR services regardless of outcome. The 1981 amendments changed the reimbursement provisions so

that VR agencies would be reimbursed for the cost of VR services furnished to blind or disabled SSI

recipients only if the services result in the recipient returning to work. 1 For reimbursement purposes,

recipients are considered to have returned to work if they have had earnings exceeding the SGA limit

for 9 continuous months. Effective with the 1990 amendments, reimbursement for the cost of VR services was authorized for services provided in months in which the individual was not receiving Federal SSI benefits if the individual:

 • had special SSI recipient status for Medicaid purposes under subsection 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. 

Table V.E4 provides historical data on the number of reimbursement claims allowed and the amount

of such awards for SSI recipients. 

Note: Totals do not necessarily equal the sums of rounded components.

 1 Reimbursement may also be made in cases where the recipient, without good cause, refuses to continue to accept VR services or fails to cooperate in such a manner as to preclude successful rehabilitation. In such cases, the recipient would become ineligible for SSI benefits due to a failure

to accept the offered services. In addition, reimbursement may be made in cases where the recipient medically recovers while engaged in a program of rehabilitation services approved by SSA; and SSA determines that completion of such program increases the likelihood the individual

will be permanently removed from the rolls.

Table V.E4.—Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-97

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands)

 1 For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987 . . . ( 2 ) ( 2 ) 1,493 $10,010 ( 2 ) ( 2 )

1988 . . . ( 2 )

 2 For fiscal years 1987-89, data on title II reimbursement claims involving concurrent title XVI reimbursement claims are not available.

( 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 SSI Annual Report

80

F. INVOLVEMENT OF SSI BENEFICIARIES IN OTHER PROGRAMS

In this section we present data on prior enrollment by recipients, including State programs funded

under part A of title IV of the Social Security Act and State general assistance programs. These data

are based on information from the Supplemental Security Record, the main administrative file for

the SSI program.

SSA does not maintain complete information in its administrative files concerning the involvement of

SSI recipients in all other assistance programs. We do, however, have some indication with regard to

entitlement to benefits under two other programs—Aid to Families with Dependent Children (AFDC)

and Interim Assistance Reimbursement (IAR)—at the point that a person applies for SSI benefits.

Of the 6.5 million people receiving SSI payments in January 1998, almost 1.5 million had at some

time received income from the program formerly known as AFDC (1.42 million). While many of those

receiving AFDC at the point of application were children (42 percent), the majority were disabled

adults who had received assistance benefits either as children or as caretaker relatives.

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. Of

the 6.5 million people receiving SSI payments in January 1998, about 7,500 had part of their initial

SSI check paid to their State as reimbursement for interim assistance.
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1998 SSI Annual Report

G. BIBLIOGRAPHY OF RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of summaries of “relevant research on the

SSI program by the Social Security Administration and others.” Given the volume of research that

has been done since the inception of the Supplemental Security Income (SSI) program, we concluded

that we could most effectively optimize interested readers’ access to this information by developing a

comprehensive bibliography, rather than by attempting to synopsize numerous, sometimes lengthy

and complex documents. In addition, in this and future reports, we expect to provide summary information on certain current research projects related to the SSI program. Section 1 below presents

information on four such projects commissioned by SSA. Future reports will provide the results of

these studies.

Section 2 presents a list of reference sources that include studies and reports regarding various

aspects of the SSI program prepared by, or under contract for, the Social Security Administration.

The list also includes information gleaned from the extensive holdings of the Library of Congress

regarding studies that have been conducted by public and private entities regarding SSI payment

levels, recipients, and reform proposals. It is not intended to be an exhaustive compilation of relevant

studies.

1. Research Topics

a. Policy Evaluation of the Effects of the 1996 Welfare Reform Legislation on SSI Benefits

for Children with Disabilities

Title II (subpart B) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

has substantially altered the SSI provisions affecting children. SSA has awarded a policy evaluation

task order contract to the RAND Corporation to evaluate the net effect of this legislation on SSA’s

caseloads, the program cost, and the impact on children affected by the law. Answers to the following

questions will be obtained: What are the characteristics of the children who are affected by the legislation? What is the impact of the legislation on children with disabilities who were receiving SSI benefits prior to welfare reform? What happens to these children in terms of their family income, living

arrangements, utilization of medical services, and other relevant outcomes? What is the overall

impact of welfare reform on SSI caseloads and costs, taking into account both terminations and new

allowances? The study will provide descriptive and quantitative estimates of the effects of the legislation on the children who were on the rolls prior to the enactment of the legislation through analyses

of SSA administrative data and non-SSA survey data. In addition, the study will provide estimates of

the net effect of the legislation on the number of children on the SSI rolls, total benefit years, and

program cost, accounting for both terminations and new allowances. Qualitative data will be collected

through limited case studies of affected children, their families, and service providers.

b. Policy Evaluation of the Overall Effects of Welfare Reform on SSA Programs—Phase I

Evaluation Design

Future cutbacks in non-SSA welfare programs may result in increased applications among some

groups of people. Awards to such applicants would increase the growth of SSA’s disability programs

and program costs. Thus, while some aspects of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996 (such as provisions restricting the eligibility of children) are expected to

decrease SSA caseloads and program costs, other changes (most notably the replacement of the Aid to

Families with Dependent Children program by block grants for Temporary Assistance for Needy

Families) may work in the opposite direction. Therefore, a comprehensive and unbiased evaluation of

the overall net effects of the welfare reform legislation must take account of the effect of non-SSA

welfare reform provisions on SSA’s programs. This task focuses on the Act’s effect on non-SSA programs that might affect applications and awards for SSA programs. The study will provide an early
1998 SSI Annual Report

82

assessment of the likely magnitude and direction of indirect welfare reform effects on SSA caseloads

in the future, and will consider the implications of State-to-State variations in the implementation of

welfare reform on SSA program caseloads and study design. In addition, it will develop an analytic

framework and methodology for future retrospective studies of the overall effects of welfare reform on

SSA caseloads, and will include a systematic assessment of existing and potential new data collection

necessary to track the longer-term effects of welfare reform on SSA caseloads.

c. Policy Evaluation of the Effects of Legislation Prohibiting the Payment of Disability

Benefits to Individuals Whose Disability is Based on Drug Addiction or Alcoholism

Section 105 of Public Law 104-121 mandated the removal from the disability rolls of persons for

whom drug addiction or alcoholism is a contributing factor material to the determination of disability.

SSA awarded a policy evaluation task order contract to the Lewin Group to evaluate the net effect of

the legislation on SSA’s caseloads and program costs. The study will provide information on the characteristics of the people affected by the law including what happens to them in terms of total family

income from all sources and their living arrangements. The policy evaluation will utilize information

from three sources: (1) SSA administrative data; (2) case studies conducted by the contractor; and (3)

secondary analysis of available survey information providing comprehensive information on the characteristics of affected beneficiaries. Study results will be included in an Interim Report and a Final

Report.

d. Project NetWork

The purpose of this project is to develop, maintain, and update an in-house database on the Project

NetWork return-to-work experiment for persons with severe disabilities, and to conduct in-house

analyses focusing on current issues of interest in developing SSA employment strategies. The Project

NetWork demonstration was SSA’s first large-scale initiative to assist DI beneficiaries and SSI applicants and recipients in returning to employment through a combination of intensive outreach and

case management services. A rigorous evaluation component based on a randomized field experiment

design has been an integral part of the demonstration design. Under contract with SSA, Abt Associates, Inc. is conducting a comprehensive evaluation of the Project NetWork demonstration. Because

of their richness, the databases that are potentially available from the demonstration can be utilized

to conduct studies focusing on issues relevant for targeting future SSA return-to-work initiatives.

The narrower objectives of the Abt Associates contract focuses on the Project NetWork case management approach. A wide array of survey data has been collected on a random sample of project eligibles—covering all DI beneficiaries and SSI applicants and recipients—living in the demonstration

areas. Both project participants who volunteered for the demonstration and nonparticipants have

been interviewed at baseline. The survey data file contains information on both economic and noneconomic variables affecting the decision to volunteer for return-to-work programs that are not available from SSA administrative record systems. For example, detailed information on functional limitations, health (including mental health status), cognitive functioning, motivation, and substance abuse

are available. These data can be matched to SSA administrative records, and Supplemental Security

Record files, as well as to management information system data from the Case Management Control

System.
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1998 SSI Annual Report

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GAO/HEHS-97-17. 1996.

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Senate, and the Chairman, Committee on Ways and Means, U. S. House of Representatives. July

1995.

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Report of the Experts. Baltimore, MD. 1992.

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Census-Based Measures of AFDC and SSI Recipiency.” Journal of Economic and Social Measurement

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1982): 236-260.

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Through SSI Reform.” Urban Institute Report, 89-1 (1989).
 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. The members of the Board have asked the

Social Security Administration to include the following statement of views in this year’s

annual report, due May 30, 1998.

I. VIEWS OF THE BOARD REGARDING THE SSI PROGRAM

In 1994, when the Congress passed legislation establishing the Social Security

Administration as an independent agency, it also created a bipartisan Advisory Board to

advise the Congress, the President, and the Commissioner of Social Security on matters

relating to both the Social Security (OASDI) programs, and the Supplemental Security

Income (SSI) program. The statute directs the Board, among other responsibilities, to

make recommendations with respect to the quality of service that SSA provides to the

public; the policies and regulations of the OASDI and SSI programs; and a long-range

research and program evaluation plan for SSA.

Responding to that mandate, the Board has begun a long-term study of the SSI

program. Our efforts to date have focused on the disability aspects of the program, and

the quality of service that SSA provides to the public. Since the Board began its work

two years ago, it has made on-site visits to Boston, Los Angeles, San Francisco,

Philadelphia, and Washington, D. C. in order to get a front-line view of the challenges

facing both those who administer SSI and those whom the program is intended to serve.

The Board has met with Social Security Administration staff at all levels, State and local

officials, and advocates for SSI applicants and beneficiaries. It also held a public hearing

in San Francisco on issues of service to the public and employment for individuals with

disabilities.

The following observations reflect the work we have completed at this point in

time. We anticipate that in the coming months the Board will be issuing reports with

recommendations on the subjects of disability and service to the public, which will

address these specific topics in a more comprehensive way.
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A. THE IMPACT OF THE SSI PROGRAM

ON THE FUNCTIONING OF THE AGENCY

In 1972, when the Supplemental Security Income program was enacted, questions

were raised in the Congress and elsewhere about SSA’s capacity to absorb administrative

responsibility for the complex new welfare program without compromising its ability to

administer the much larger Social Security retirement, survivors, and disability programs.

The Congress ultimately chose the Social Security Administration to administer the SSI

program in part because of the agency’s network of offices accessible to the public, and

its reputation for providing high quality service.

The Congress believed that the SSI program, which was intended to serve as a

supplement to the Social Security programs, could function best in close connection with

them. It was hoped that joint administration of the programs would result in improved

service for low-income aged, blind, and disabled individuals, and that they would

experience less stigma than under the prior State-administered welfare programs.

The agency had difficulties from the beginning in taking over the difficult

responsibility of administering the means-tested SSI program, and over the last 25 years

the impact of the SSI program on the functioning of the agency has grown. Today SSI

continues to represent a major challenge for SSA’s management.

As a means-tested program, SSI is inherently more difficult to administer than the

earned-right Social Security programs. Social Security eligibility depends upon generally

objective and stable factors, such as date of birth, date of death, and marital status. In

contrast, under SSI, the fact and degree of eligibility can change from month to month

based on changes in income, resources, individual living arrangements, and place of

residence. In addition, SSI disability applicants often lack a consistent record of medical

treatment that can be relied upon without the need for consultative examinations, and they

are likely to lack the type of work history that can be used in Social Security cases as a

benchmark. Many have special needs due to physical or mental limitations, emotional

problems, language difficulties, and educational deficits.

Administration is further complicated by the fact that the SSI program has become

predominantly a disability program and thus shares with Social Security all of the

complexities involved in the multi-step disability determination process. Today the five

million SSI disability beneficiaries greatly outnumber the 1.2 million beneficiaries who

receive benefits on the basis of age. This is in contrast with the situation prevailing at the

time the SSI program began, when the aged constituted the majority of beneficiaries.

Because SSI rules are complicated, initial claims taking is much more difficult

and time-consuming than it is for Social Security. In addition, because of the need for
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regular redetermination of eligibility to take account of possible changes in

circumstances, SSI beneficiaries tend to have many more contacts with SSA after they

become entitled to benefits than do Social Security beneficiaries.

As a result of all these factors, the share of SSI program expenditures devoted to

administration is disproportionately high. In fiscal year 1998, Federal SSI administrative

costs are expected to be about $2.3 billion dollars, or 8 percent of the program’s $29

billion in outlays, while administrative costs for Social Security programs are projected to

be about $3.4 billion, or less than 1 percent of total outlays of $382 billion.

Although SSI will account for only about 7 percent of SSA’s benefit outlays in

fiscal year 1998, it will account for about 35 percent of the agency’s administrative

budget (as compared to about 50 percent for the Social Security program and 14 percent

for Medicare responsibilities).

The proportion of SSA’s administrative budget devoted to SSI has grown since

the early years of the program. While SSI accounts for 35 percent of the agency’s total

administrative budget this year, in 1980 it accounted for just 27 percent of total

administrative costs. Under SSA’s fiscal year 1999 budget request, the SSI portion of

total administrative expenses would increase to 37 percent.

Today, much of the work in handling claims for Social Security Old-Age and

Survivors Insurance (OASI) benefits is conducted by telephone. More and more, the

work of employees in Social Security field offices is directed at serving applicants and

beneficiaries of the SSI program. This is a reversal of the original expectations by the

Congress, but is a factor that is unlikely to change and needs to be fully taken account of

by policy makers.

Summing up, the major impression that has emerged from the Board’s review of

the SSI program is the extent to which SSI (and particularly SSI disability) now

dominates the attention of much of SSA’s management and staff at all levels of the

agency.

In a period of declining resources, there are concerns both within and outside the

agency about SSA’s ability to provide the high quality of service to the public that

applicants and beneficiaries of both the Social Security and SSI programs should receive.

And as SSA’s staff ages and more and more experienced employees retire, the agency

will likely become more hard-pressed to provide the informed leadership that is needed to

guide these programs in the future. The Board has been told that 83 percent of the SSI

policy staff will be eligible to retire in 1998.
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B. SOME SPECIFIC AREAS OF CONCERN

The Need to Assess How Well the SSI Population is Being Served

Because of the factors discussed above relating to the complexity of SSI rules and

procedures and the special characteristics of the population, SSA has been called upon to

take on substantial casework responsibility, a responsibility that it is not currently staffed

to fulfill.

Many SSA field office personnel, as well as advocates for the poor, believe that

the agency should do more to assist aged and disabled individuals. Specific

recommendations which the Board has heard include:

• provide more assistance to SSI claimants than it is currently providing, particularly to

those who are infirm or have disabilities that make it difficult for them to pursue their

claims on their own;

• be more diligent and careful in helping to obtain representative payees for those who

are unable to manage their own resources, and in monitoring how their funds are

spent;

• find ways to make it easier for individuals to report income and other changes that

will result in a change in benefits;

• improve the consistency and fairness of the disability determination process and make

it quicker and easier to negotiate; and

• do more to help SSI applicants and beneficiaries find and retain employment.

All of these recommendations appear to have validity. SSA needs to analyze

carefully how well it is serving the specific needs of SSI applicants and recipients. This

is consistent with a March 3, 1998 Presidential Executive Order that directs all

government agencies to undertake initiatives that will enable them to determine what is

most important to the individuals they serve, and what government can do to meet their

expectations. It is also consistent with the agency’s Strategic Plan, which includes as one

of its goals the improvement of its service to the public.

Service delivery could almost certainly be improved if the complexity of SSI

program rules were reduced. While not underestimating the difficulty of the task, we

encourage SSA to take the lead in developing measures, however incremental, that will

simplify the SSI program from the standpoint of the individual applicant and beneficiary,

and from the standpoint of the agency. The Congress should also be cognizant of the

desirability of program simplification, and consider legislative changes where they are

appropriate.
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The Need to Assure the Public That Tax Dollars Are Being Well Spent

In response to attention by the Congress and the General Accounting Office, as

well as its own concerns about accurate administrative practices, SSA has begun to take

steps to improve eligibility verification and ensure the accuracy of SSI payments. It has

substantially increased the number of Continuing Disability Reviews to assure continuing

eligibility for disability, proposed legislation to give the agency new tools to assure

payment accuracy, made changes in the approval process for the PASS program (Plans

for Achieving Self Support), and taken steps to reduce erroneous payments to prisoners

and nursing home residents. It is working to improve the disability determination process

through Disability Redesign, and it has also given priority to trying to find ways of

helping disabled individuals get access to vocational rehabilitation services through

development of its “Ticket to Independence” initiative.

In addition, SSA’s leadership has supported efforts to expand the capabilities of

the Office of Inspector General to take steps to improve the accuracy and integrity of the

agency’s work.

These initiatives have merit in protecting the accuracy and integrity of the SSI

program, and we commend the agency for undertaking them. But program accuracy and

integrity are dependent first of all on how well claims are handled in the 1,300 Social

Security field offices. We are aware that there are many in the agency, including in field

offices, who think that SSA’s ongoing efforts to achieve the Government-wide goal of a

15-to-1 management-staff ratio pose a potential threat to program accuracy and integrity.

There is considerable concern that the reduction in supervisory staff will have a negative

effect on staff training, payment accuracy, and oversight – and ultimately on program

integrity. The Board is concerned about reports that in some cases the agency may be

saving administrative dollars at the expense of program dollars.

Although the Board does not have sufficient information at this time to form a

judgment about whether the 15-to-1 ratio is a reasonable overall goal for the agency, we

are convinced that if it is to be adhered to, it should be done flexibly, so as to ensure that

all field offices, regardless of size, have the essential supervisory resources they need to

ensure program accuracy and integrity.

As part of its fiscal year 1999 budget request, SSA has asked for adjustment of the

government-wide discretionary spending caps to permit the completion of additional

Continuing Disability Reviews and redeterminations of the non-disability factors of SSI

eligibility. The Board agrees with the agency that the increased funding for these

purposes will result in program savings exceeding the expenditure of administrative funds

and is important to the financial integrity of the SSI program.
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The Need to Look Ahead

One of the goals of the agency’s Strategic Plan is to conduct effective policy

development, research, and program evaluation, and SSA has recently been taking steps

to strengthen and expand its policy and research capacity. We believe that one of the

priorities should be to look ahead to try to foresee what the SSI program will look like in

the future and what needs to be done to improve it.

We hope the agency will focus additional resources on investigating trends that

will affect the size and composition of the SSI caseload in the coming years. Policy

makers need to know much more, for example, about factors that will determine the

extent and demographics of poverty in the next century, the reasons for changes in growth

in the SSI program, the types of disabilities that are likely to affect adults and children,

and how to expand employment and rehabilitation opportunities for disabled individuals,

including children as they move into adulthood.

Having such information is essential if policy makers are to be able to develop the

kinds of changes that will make the program more effective in meeting the needs of the

target population in the future.

II. COMMENTS ON SSA’S 1998 ANNUAL REPORT

This second “Annual Report of the Supplemental Security Income Program” by

the Social Security Administration provides a comprehensive review of program data. It

makes an important first step in projecting program participation and costs over the next

25 years. It includes the specific information that the law requires, and thus will be a

useful resource for policy makers and administrators.

We believe it may be helpful if future reports would also provide the type of

analysis of SSI program and administrative issues that SSA is uniquely capable of

undertaking. For example, the 25-year estimates that are included in this report are based

on simple extrapolation of short-term trends. The only two significant long-term

variables that are factored in are the projected rate of growth in the population and the

increases in the Consumer Price Index that are used in the intermediate assumptions for

the 1998 report of the OASDI Boards of Trustees. The report makes clear that staffing

limitations have precluded the development of models that could be used in developing

more sophisticated long-term estimates for SSI.

We hope that development of a model that can take account of the complex

interaction between economic and demographic factors and the SSI program will proceed

expeditiously. Being able to gauge the impact on the SSI program of such factors as

variations in future distribution of personal income and prevalence of disability is

important to meaningful evaluation of the continuing effectiveness of the program in

meeting the needs of low income aged, blind, and disabled individuals.
7

The annual report should be more than a statistical scorecard for the SSI program.

In the future, the Social Security Administration should consider using this report as a

way of bringing to the attention of policy makers both the policy issues that it believes

need to be resolved, and the difficulties the agency is encountering in administering the

program. This is useful information that can help the Congress, as well as others within

the Administration, to become better informed about the challenges SSA faces, and the

need to address them.

Stanford G. Ross

Chair

 Jo Anne Barnhart Lori L. Hansen

 Martha Keys Sylvester J. Schieber