Annual Report of the

Supplemental Security Income Program

Social Security Administration

May 2001
.
SOCIAL SECURITY

Office of the Commissioner

May 30, 2001

President George W. Bush

The White House

Washington, D.C.

The Honorable J. Dennis Hastert

Speaker of the House of Representatives

Washington, D.C.

The Honorable Richard B. Cheney

President of the Senate

Washington, D.C.

Gentlemen: 

I have the honor of transmitting to you the 2001 Annual Report of the Supplemental Security Income

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

Opportunity Reconciliation Act of 1996.

Respectfully,

Larry G. Massanari

Acting Commissioner

of Social Security

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001
.
EXECUTIVE SUMMARY

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

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

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

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

the fifth 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 2001, 6.4 million individuals received monthly Federal SSI payments averaging $363. 

 • Federal expenditures for cash payments under the SSI program during calendar year 2000 totaled

$28.8 billion, and the cost of administering the SSI program in fiscal year 2000 was $2.4 billion.

Major Findings of the Report

 • Throughout the 25-year period ending in 2025, the SSI program is estimated to grow largely due to

the overall growth in the U.S. population. By 2025, the Federal SSI recipient population is estimated

to reach 7.9 million. 

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

level at 2.21 percent in 2000, and is projected to remain fairly level at 2.2 to 2.3 percent of the population through 2025. 

 • Federal expenditures for SSI payments in calendar year 2001 are estimated to total $30.5 billion, an

increase of $1.7 billion from 2000 levels.

 • Growth in SSI program outlays during the next 25 years is projected to remain relatively modest. In

constant 2001 dollars, the cost of the program is projected to increase to $39.7 billion in 2025. 

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

decline over time, from the current level of 0.29 percent of GDP in 2000 to 0.25 percent of GDP by

2025. 
.
(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2000 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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

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

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

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

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

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

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

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

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

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

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

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

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

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

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

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

2. Determinations of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

3. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

4. Appeal Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

5. Attorney Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

6. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

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

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

G. STATE SUPPLEMENTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

1. Optional State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

2. Mandatory State Supplementary Payment Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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

4. Mandatory Passalong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
(VIII)

H. COORDINATION WITH OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

1. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3. Food Stamp Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

4. Interim Assistance Reimbursement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2001-25 . . . . . . . 22

A. ECONOMIC AND DEMOGRAPHIC ASSUMPTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM. . . . . . . . . . . . . . . . . . . . . . . . . 26

C. FEDERAL PAYMENTS UNDER SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT 45

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

AND BENEFICIARY SERVICES COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

V. APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

1. Basic Eligibility Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

2. Other Eligibility Provisions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

a. Citizenship and Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

c. Drug Addiction and Alcoholism (DA&A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . . . . 53

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

3. Federal Benefit Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

f. Penalties Resulting in Nonpayment of Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

4. Federal Benefit Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

5. Exclusions from Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

6. Limits and Exclusions from Resources. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement. . . . . . . 63

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

9. State Supplementation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

10. Overpayment Recovery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

2. Unearned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
(IX)

C. HISTORICAL ALLOWANCE DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY 

REVIEW DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

1. Redeterminations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . 82

1. Work Incentives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . 82

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . 84

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . 87

1. Program Participation Data from the Supplemental Security Record (SSR) . . . . . . . . . . 87

2. Program Participation Data from the Survey of Income and Program 

Participation (SIPP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

G. BIBLIOGRAPHY OF RESEARCH ON RELATED TOPICS . . . . . . . . . . . . . . . . . . . . . . . 89

1. Research Topics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

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

SSI Benefits for Children with Disabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

b. Design and Implementation of Survey of Children with Disabilities . . . . . . . . . . . . . 89

c. Policy Evaluation of the Overall Effects of Welfare Reform on SSA Programs . . . . . 90

d. Project NetWork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

e. State Partnership Return-to-Work Demonstrations—Design and Implementation 

of the Net Outcomes Evaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

f. Ticket to Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

g. Modeling Participation in SSI and Simulating the Effects of Policy Options 

Utilizing SSA’s Financial Eligibility Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

2. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

III.H1 SSI State Supplementation and Coordination with Other Programs . . . . . . . . . . . . . 21

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

for the Intermediate Assumptions of the 2001 OASDI Trustees Report, 

as of July 1, 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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

on the Basis of the Intermediate Assumptions of the 2001 OASDI Trustees Report, 

1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2025 . . . . . . . . . . . 27

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2025 . . . . . . . . . . 29

IV.B3 SSI Federally-Administered Terminations Due to Death, 

Calendar Years 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

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

Calendar Years 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

IV.B5 SSI Federally-Administered Terminations for All Reasons, 

Calendar Years 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of 

December, 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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

Selected Social Security Area Population Totals, as of December, 1975-2025 . . . . . 36

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

in Current-Payment Status as of December, 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . 38

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

as of December, 1974-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2001. . . . . . . . . . . . 40

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2001 . . . . . . . . . . . . . . 41

IV.C3 SSI Federal Payments in Constant 2001 Dollars, Calendar Years 1974-2025 . . . . . . 43

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

Calendar Years 1974-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2000 . . 44

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2025 . . . . . . . 46

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2001 . . . . . . . . . . . . . . . . . . . 47

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
(XII)

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-2000 . . . . . . . . . . . . . . . . . . . . 76

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

by Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . 78

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

by Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . 80

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

December, 1987-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

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

Participating in Other Work Incentives as of December, 1990-2000 . . . . . . . . . . . . . 84

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

Disabled Working Recipients, as of December, 1987-2000 . . . . . . . . . . . . . . . . . . . . 84

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, 

Fiscal Years 1987-2000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

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

with Participation in Selected Programs Based on SSA Administrative Records, 

December, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

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

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

Collected Under Waves 9 and 10 of the Survey of Income and Program Participation, 

December, 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, 

Calendar Years 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

IV.B2 SSI Federally-Administered New Entrants by Age Group, 

Calendar Years 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

IV.B3 SSI Federally-Administered Terminations by Age Group, 

Calendar Years 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

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

as of December, 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

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

Percentage of Selected Social Security Area Population Age Groups, 

as of December, 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

IV.C1 SSI Federal Payments, by Age Group, in Constant 2001 Dollars, 

Calendar Years 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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

Calendar Years 1980-2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

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

as of December, 1987-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

1

I. INTRODUCTION

The Supplemental Security Income (SSI) program was established by Congress in 1972, 1 with payments

beginning 27 years ago 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 in

2001 a monthly Federal cash payment of $531 2 ($796 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 a requirement in the original SSI legislation.

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 fifth 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; 

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

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

In addition, the legislation specified that the report may include views of the SSI program by 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 previous SSI Annual Reports, much of the required information is the subject of extensive ongoing research. In responding to each of the specific requests for information, every effort has been

made to provide the best information available at this time. It is expected that in future versions of this

annual report improvements will continue to 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.

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

2 Benefits paid to individuals thus far in 2001 are based on a Federal benefit rate of $530. Pursuant to Public Law 106-554, enacted December 21,

2000, monthly payments beginning in August 2001 will be effectively based on the higher $531 amount. Lump-sum compensation payments will

be made based on an adjusted benefit rate for months prior to August 2001.
2001 SSI Annual Report

2

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. 
3

2001 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 rationales 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 2000, 6.3 million aged, blind, or disabled individuals received Federal SSI benefits on a monthly basis. An estimated 7.1 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 2000 totaled

$28.8 billion.

• On average during calendar year 2000, 2.5 million aged, blind, or disabled individuals received Federally-administered State supplementary payments on a monthly basis. An estimated 2.8 million individuals received at least 1 month’s Federally-administered State supplementary payment during

calendar year 2000.

• State expenditures for Federally-administered supplements during calendar year 2000 totaled

$3.4 billion, excluding fees for Federal administration.

• The cost of administering the SSI program in fiscal year 2000 was $2.4 billion.

B. SSI LEGISLATION SINCE THE 2000 ANNUAL REPORT

Only a few, relatively minor legislative changes in the SSI program were made in 2000. Public Law 106-

246 1 restored the regular payment date for the October 2000 SSI payment. Public Law 106-386 2 adds victims of trafficking to the categories of noncitizens who may be eligible for SSI. Public Law 106-554 3

includes provisions changing the schedule for States remitting SSA for State supplementary payments and

the SSI treatment of earnings of certain employees and monies put into Individual Development Accounts.

Public Law 106-246

SSI payment date—Repeals section 5527 of Public Law 105-33, the Balanced Budget Act of 1997. Section 5527 changed the SSI payment date from September 29, 2000 (Friday) to October 2, 2000 (Monday).

The repeal of this section allowed SSI recipients to receive their October payments on the regular SSI payment date of September 29, 2000, which was the last day before the first day of October that was not a Saturday, Sunday, or legal holiday.

Public Law 106-386

Trafficking victims—Provides that aged, blind, or disabled noncitizens regardless of their immigration

status who are victims of “severe forms of trafficking in persons in the United States” are eligible for Federal benefits and services, including SSI, to the same extent that refugees are eligible for such benefits and

1 The Military Construction FY 2001 Appropriations Act, enacted July 13, 2000.

2 The Victims of Trafficking and Violence Protection Act of 2000, enacted October 28, 2000.

3 The Consolidated Appropriations Act, 2001, enacted December 21, 2000.
2001 SSI Annual Report

4

services. That is, they could be eligible for SSI for 7 years after the date that they are determined to be victims.

Public Law 106-554

State supplementary payment remittance—Changes the effective date of the provision in the “Ticket to

Work and Work Incentives Improvement Act of 1999” (P.L. 106-170) regarding State supplementary

remittances from “for months after September 2009” to “for months beginning after September 2001.” The

provision requires that a State, which has entered into an agreement with the Commissioner of Social

Security for Federal administration of the State’s supplementary payments, remit payments and fees no

later than the business day preceding the SSI payment date.

SSI treatment of statutory employees—Provides that in the case of an individual who is defined as a

Social Security statutory employee, his or her net profit from self-employment, rather than reported wages,

would be counted in determining SSI eligibility and benefit amount. There are four categories of statutory

employees: certain full-time life insurance sales people; agent drivers or commission drivers; homeworkers; and full-time traveling or city sales people. While these individuals will continue to be treated as statutory employees for Social Security purposes and self-employed for income tax purposes, they now will be

treated as self-employed for SSI purposes.

Individual Development Accounts—Excludes, for the purpose of determining means-tested program eligibility and benefit amounts, all funds (including accrued interest) in an individual development account

provided for under the “Assets for Independence Act” (P.L. 105-285).

C. CURRENT ISSUES FACING THE SSI PROGRAM

Program integrity remains the most significant issue facing the SSI program. A General Accounting Office

(GAO) report issued in January 2001, acknowledged that SSA has stepped up its efforts to better verify

individuals’ financial eligibility for SSI via enhanced computer matching and other means. The GAO

report stated that SSA’s initiatives have the potential to significantly improve SSI management and financial integrity, but additional activities still are needed.

In November 2000, SSA issued The SSI Program at the Millennium. The report included an update of the

plan for strengthening the management of the SSI program outlined in the October 1998 report, Management of the Supplemental Security Income Program, Today, and in the Future. The updated report indicates that SSA has made progress in improving the payment accuracy rate from 93.5 percent in FY 1998 to

94.3 percent in FY 1999 1.

SSA’s efforts to improve program integrity encompass a broad range of activities designed to detect and

prevent incorrect payments, and to aggressively seek recovery of identified overpayments. The initiatives

are designed to ensure proper expenditure of general fund resources for the SSI program. These initiatives

are generally estimated to produce program savings that exceed the investment in administrative efforts.

Continuing and expanding the successful initiatives outlined in the 1998 management plan and the 2000

update will depend upon the Congress providing sufficient administrative resources. 

An example of SSA’s program integrity initiatives is the fugitive felon project. Fugitive felons and parole

violators are not eligible for SSI under a provision enacted in 1996. The fugitive felon project utilizes a

multifaceted approach that requires extensive and cooperative efforts of many law enforcement agencies

throughout the United States. SSA protects the integrity of the SSI program by stopping payments to fugitive felons and protects the public by providing information to law enforcement officials that assists in the

apprehension of fugitive felons fleeing from justice.

1 Final results for FY 2000 will be available later this year.
5

2001 SSI Annual Report

Ensuring that eligible individuals receive their SSI payments is also part of the program integrity issue.

SSI recipients who—due to their medical conditions—are unable to handle their own funds are among the

most vulnerable individuals in the United States. Last year we identified a number of representative payees

who misused or embezzled SSI recipients’ funds. In response, SSA established the Representative Payment Task Force to improve the representative payee program. The Task Force undertook a comprehensive

review of the features and vulnerabilities of the representative payee program and has made improvements

in determining the suitability of payees, monitoring payee performance, and control and consistency in

payee accounting.

SSA will continue to explore options to make sure the best possible payees are selected, including options

for conducting criminal background and credit checks on fee-for-service organizational payees. We will

also further expand our monitoring and oversight activities. 

D. KEY RESULTS FROM THE 25-YEAR FORECASTS

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

• Following recent declines in the SSI recipient population due to the combined impact of Public Law

104-121 and Public Law 104-193, modest growth in the SSI rolls resumed in 1998, and is expected to

continue throughout the projection period largely due to the growth in the U.S. population. By 2025,

the Federal SSI recipient population is estimated to reach 7.9 million. Expressed as a percentage of

the total U.S. population, the number of Federal SSI recipients is projected to remain fairly level at 2.2

to 2.3 percent of the population through 2025. 

• Federal expenditures for SSI payments in calendar year 2001 are estimated to total $30.5 billion, an

increase of $1.7 billion from 2000 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 2001 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 2001 dollars, the cost of the program is projected to

increase to $39.7 billion in 2025. 

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

to decline over time, from the current level of 0.29 percent of GDP in 2000 to 0.25 percent of GDP by

2025.
2001 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 2001, 6.6 million individuals received Federally-administered monthly SSI benefits 1 averaging $390.

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 payment levels the States established. Federal law specified no maximum or minimum standards. Consequently, each

State was responsible for setting its own standards for determining who would get assistance and how

much they would 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 payment levels. Other criticism centered on specific requirements, such as lien laws and

provisions that required certain relatives to bear responsibility for the maintenance of needy family members. 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 would receive assistance and how much

assistance they would receive. 

B. THE BASIC PLAN

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

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

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

below specified levels;

1 Including Federally-administered State supplementary payments.
7

2001 SSI Annual Report

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

them to reduce their dependency on public assistance;

• An efficient and economical method of providing assistance;

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

and

• 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. The countable income limits for individuals and couples

are equal to their respective Federal benefit rates 1 and hence are increased annually according to

changes in the cost of living. The resource limit is $2,000 in countable resources for individuals and

$3,000 for couples.

• Sixty-five as the minimum age requirement for assistance based on age.

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

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

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

expected to last or has lasted at least 12 continuous months or result in death and (1) if 18 or older prevents him/her from doing any substantial gainful activity 2 or (2) if under 18 results in marked and

severe functional limitations. 3 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. 4 In

order to be considered blind, an individual must have central visual acuity of 20/200 or less in the better eye with the use of a correcting lens or have tunnel vision of 20 degrees or less.

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

2 “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 $740 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $740 a month, he/she generally would not

be considered disabled. However, if an SSI recipient is earning over $740 a month, he/she could continue to be eligible for SSI. (See “Incentives for

Work and Opportunities for Rehabilitation” section III.E.) The SGA level of $740 was increased from $700 effective January 1, 2001 (65 FR

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

3 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.

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

March 29, 1996.
2001 SSI Annual Report

8

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

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

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

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

receiving SSI benefits on August 22, 1996, or be a qualified alien in one of the following categories: 1

— 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 Education 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; or

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

with, 40 qualifying quarters of earnings.

Note: Qualified alien status includes noncitizens who have been battered or subjected to extreme cruelty in the United States by a spouse or parent (or a member of the spouse’s or parent’s family) with

whom they live, and who have an approved petition, or have a petition pending, setting forth a prima

facie case for adjustment of their immigration status. A complete list of noncitizens who are considered qualified aliens can be found in the Glossary under “Qualified Alien”. However, to be eligible to

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

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

been determined to be victims of severe forms of trafficking in persons in the United States 2. Such

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

a determination is made that they are trafficking victims. 3

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

categories, an individual must reside in the 50 States, the District of Columbia or the Northern Mariana Islands. An individual also must be physically present in the United States 4 for 30 consecutive

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

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

1996 as amended by Public Law 104-208, Public Law 105-33 and Public Law 105-306. Prior to this, the law permitted SSI eligibility for individuals who were residents of the United States and—citizens or nationals of the United States; aliens lawfully admitted for permanent residence in the

United States; or aliens permanently residing in the United States under color of law.

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

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

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

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

2001 SSI Annual Report

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

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

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

the U.S. Armed Forces. 

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

the studies are sponsored by a U.S. educational institution but cannot be conducted in the United

States.

D. ASSISTANCE OF LAST RESORT

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

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

assistance.

1. Income 

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

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

The monthly Federal benefit rate 1 is reduced dollar-for-dollar by the amount of the individual’s “countable” income—i.e., income less all applicable exclusions. Countable income is determined on a calendar

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

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

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

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

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

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

income. However, the amount that is countable is limited to an amount equal to one-third of the applicable

Federal benefit rate plus $20. 

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

self-employment, remuneration for work in a sheltered workshop, royalties on published work, and honoraria for services. All other income is unearned. 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 2

The principal earned income exclusions are: 

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

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

2 A complete list of the SSI income exclusions can be found in section V.B.
2001 SSI Annual Report

10

• 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, 1

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

• State or locally funded assistance based on need, 

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

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

2. Resources 

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

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

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

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

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

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

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

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

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

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

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

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

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

Resource Exclusions 2

The principal resource exclusions are:

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

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

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

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

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

• Property essential to self-support; and 

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

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

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

2001 SSI Annual Report

3. Filing for Other Benefits 

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

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

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

principle, SSI law requires that SSI applicants file for other payments for which they may be entitled, such

as annuities, pensions, retirement or disability benefits, worker’s compensation, and unemployment insurance benefits. 

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

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

of the notice to file for the benefits involved. 

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

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

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

ineligible for SSI unless one of the following exceptions applies:

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

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

more than 50 percent of the cost of care;

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

16 residents; 

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

6 months in any 9-month period);

• 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); or

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

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

individual will return.

5. Personal Needs Allowance 

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

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

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

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

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

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

6. Deeming 

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

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

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

ineligible parent, or an eligible noncitizen has a sponsor. 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. 

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 remaining.
2001 SSI Annual Report

12

a. Spouse-to-Spouse Deeming 

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

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

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

under age 181 living in the household. The allowance reduces the amount of income to be deemed.

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

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

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

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

b. Parent-to-Child Deeming 

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

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

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

age 18 1 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 2 or the previous version of the affidavit. Generally, individuals who entered the country before 1998 did so under the old version of the affidavit. 3

Under the old version of the affidavit, deeming of the sponsor’s income and resources lasts until the noncitizen has been in the United States for 3 years. 4 Living allowances equal to the Federal benefit rate are

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

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

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

resources deemed to the noncitizen.

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

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

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

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

1 Under age 21, if a student.

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

3 The Immigration and Naturalization Service (INS) began using the new, legally enforceable affidavits on December 19, 1997. However, if a

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

December 19, 1997.

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

2001 SSI Annual Report

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

children or parents have been battered or subjected to extreme cruelty while in the United States or if sponsors leave the noncitizens indigent by not providing them with sufficient support. 

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

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

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

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

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

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

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

services and support for work efforts. 

1. Earned Income Exclusion 

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

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

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

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

work.

2. Impairment-Related Work Expense Exclusion 

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

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

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

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

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

condition. 

3. Work Expenses of the Blind Exclusion 

Any expenses relating to work that a blind individual has are excluded from earned income in determining

SSI eligibility and benefit amounts. Unlike an impairment-related work expense (described above), a

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

necessary work expense of the worker. 

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

4. Student Earned Income Exclusion 

The student earned income exclusion is an additional exclusion for an individual who is under age 22, regularly attending school and neither married nor the head of a household. It is intended to help defray the

cost of educational training. Under current regulations, up to $1,290 of earned income per month but no

more than $5,200 per year may be excluded. 1

1 Increased from $400 and $1,620, respectively, effective January 1, 2001 (65 FR 82905). Under current regulations this exclusion will be

increased in subsequent years based on changes in the cost of living.
2001 SSI Annual Report

14

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 is time limited and must be

approved by SSA. The individual must then follow the plan and negotiate revisions as needed. SSA monitors the plans once approved by reviewing them periodically to ensure the individual’s progress towards

attaining the work goal. 

6. Special Provisions for Disabled People Who Work 

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

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

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

• Continue to have the disabling condition,

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

counting rules, and

• Meet all other nondisability requirements for SSI payment.

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

benefits.

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

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

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

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

Medicaid benefits. 

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

• Have a disabling condition,

• Need Medicaid in order to work,

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

which would be lost without assistance, 

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

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

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

of 1619 eligibility.) 

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

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

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

1619(b) status may continue. 
15

2001 SSI Annual Report

7. Vocational Rehabilitation/Ticket to Work Program

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

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

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

rehabilitation services. SSA reimburses the VR agency or alternate provider for services provided in situations where the services result in the individual’s working at the substantial gainful activity level for a continuous period of 9 months, and in certain other limited situations.

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

Ticket to Work program under which a disabled beneficiary will be able to obtain vocational rehabilitation,

employment and other support services from a qualified private or public provider. Providers of such services in this new setting will be referred to as “employment networks” (ENs). In addition, the Ticket legislation provided for a new procedure for compensating the ENs under an outcome or outcome-milestone

payment system to be specified under regulations issued by the Commissioner. By expanding the pool of

providers and giving the providers incentives for achieving success, this program seeks to expand a disabled beneficiary’s access to these services in order to assist the beneficiary in finding, entering, and

retaining employment and reducing his/her dependence on cash benefits. 

The Ticket to Work program will be implemented on a State-by-State basis over a 3-year period. Once the

Ticket to Work program is implemented in a State, the traditional VR referral process described earlier

will be eliminated in that State, and SSA will provide eligible individuals who receive SSI benefits due to

blindness or disability in such State with a Ticket to Work document (“ticket”). These individuals may use

the ticket to obtain the vocational rehabilitation services, employment services and other support services

needed to return to work, or go to work for the first time. The Ticket program provides that as long as the

beneficiary is “using a ticket” as defined by the Commissioner, SSA will not initiate a continuing disability

review.

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

under the traditional system can continue to receive compensation under the cost reimbursement system

described above. However, once the Ticket to Work program is fully implemented only the State VR agencies will have the option on a case-by-case basis of electing to remain under the traditional VR compensation system. At that time, ENs will be the only other providers of VR services for disabled beneficiaries

and will be compensated through the new outcome-based system.

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

program, or another approved VR program, and continuation or 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.

8. Expedited Reinstatement

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

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

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

ended and must have a disabling medical condition that (1) is the same as (or related to) the disabling medical condition that led to the previous period of eligibility and (2) prevents him/her from performing substantial gainful activity. In determining whether the individual is disabled or blind, the medical review

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

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

his/her request is pending. These benefits generally are not considered an overpayment if the request is
2001 SSI Annual Report

16

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

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

previously eligible for SSI as a spouse.

F. ADMINISTRATION OF THE SSI PROGRAM

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

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

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

manner.

1. Application Process 

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

field offices around the country or through SSA teleservice centers. The claims process includes the application interview, the obtaining of necessary evidence and documentation, and the adjudication of the

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

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

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

first and second months are both determined using the income received in the first month. 

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

every 1 to 6 years depending on their specific situation. 

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

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

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

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

following circumstances:

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

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

likely to improve;
17

2001 SSI Annual Report

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

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

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

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

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

3. Representative Payees 

When SSI recipients are incapable of managing 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 have been authorized by SSA to

collect a fee from the benefit for acting as payee. The fee cannot exceed the lesser of 10 percent of the

benefit amount or a specified amount ($29 a month in 2001 ($56 a month for disabled recipients who also

have a drug addiction or alcoholism condition)).

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

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

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

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

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

expenses related to the child’s impairment.

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. While the Social Security Act does not establish a maximum

fee, most attorneys use an options process that limits their maximum fee to the lesser of 25 percent of the

retroactive payment or $4,000. A representative cannot charge or receive more than the fee amount authorized. The SSI program differs from the Social Security program in that amounts cannot be withheld from

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

directly to their attorneys.

6. Advance Payments 

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

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

their SSI status. 
2001 SSI Annual Report

18

a. Emergency Advance Payments 

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

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

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

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

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

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

b. Presumptive Disability or Blindness 

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

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

G. STATE1 SUPPLEMENTATION

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

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

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

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

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

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

programs requiring State and Federal coordination as discussed in section 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 2001, 45 States have optional State supplementary payment programs.

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

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

extend them to persons ineligible for SSI because of excess income. States’ flexibility in setting supplementary payments, however, has been significantly restricted by 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 mandatory State supplementation. Because of the increases in Federal benefits

over the years, there are few individuals who continue to receive mandatory State supplementary payments. In December 2000, there were roughly 1,900 such recipients receiving a Federally-administered

payment. 

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

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

adult assistance programs.
19

2001 SSI Annual Report

3. Administration of State Supplementary Payments 

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

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

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

required to pay SSA a $8.10 fee for each supplementary payment issued in fiscal year 2001. 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 exclusions. 

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 year-toyear—the “payment levels” method—or it may spend the same amount of money, in the aggregate, that it

spent for supplementary benefits in the 12-month period preceding the increase in the SSI benefit rate—

the “total expenditures” method. Currently 40 States use the levels method and 10 use the expenditure

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

plan because Federal SSI income standards exceeded all payments made under the State’s adult assistance

programs in 1973.

H. COORDINATION WITH OTHER PROGRAMS

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

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

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

1. Windfall Offset 

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

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

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

and SSI payments were paid for the same period. 

2. Medicaid Determinations 

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

use their own criteria. 

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 Medic-
2001 SSI Annual Report

20

aid; SSA does not determine Medicaid ineligibility. SSA has Medicaid determination agreements with 33

States. 

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

SSI eligibility due to entitlement to Social Security benefits, or due to 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 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. In all cases where the retroactive benefits exceed a certain amount, SSA reimburses the State, then

pays the remainder in installments to the recipient or his/her representative payee.
21

2001 SSI Annual Report

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

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

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

4 Mandatory minimum State supplementation program is Federally-administered.

5 State provides assistance only in initial application cases. No assistance provided during periods that SSI benefits are suspended or terminated.

6 State does not have a mandatory minimum State supplementation program.

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

 United States and 

District of Columbia

Optional State program—

Administered by:

Method of mandatory 

passalong of benefit 

increases from 

cost-of-living adjustments

Medicaid eligibility 

determination— Interim 

assistance 

reimbursement 

agreement 

with SSA

Based on:

Agreement 

with SSA to 

determine 

State eligibility

Federal 

(SSA)

Federal & 

State

“Payment

levels”

“Total

expenditures”

Federal 

criteria

State

criteria

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

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

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

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

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

Total number of 

States 29 11 5 40 10 40 11 33 37
2001 SSI Annual Report

22

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER 

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2001-25

As described in section III, eligibility for payments under the SSI program depends on a collection of provisions related to the socioeconomic status of the individual, as well as the evaluation of disability or

blindness for all persons under age 65, and for certain individuals at ages 65 or older. Consequently, future

SSI program participation will depend on a variety of difficult-to-predict factors including the performance

of national and local economies, distribution of personal income within that macroeconomic framework,

the prevalence of disability in the general population, and the determination of disability as defined by the

Social Security Act. 

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

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

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

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

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

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

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

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

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

improvements.

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

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

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

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

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

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

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

and provided us with an enhanced ability to analyze the age structure of the historical and forecasted disabled adult population. In the 2 years since the 1999 Annual Report, we have analyzed certain age subgroups in greater detail, with the result that our longer term assumptions with respect to the growth in the

SSI population better reflect the growth patterns to be expected of the respective age groups. As a consequence, the current forecasts presented in this section suggest slightly slower growth among disabled children, but slightly faster growth among disabled adults. The presentation of forecast results in the

remainder of this section corresponds to our new model structure. In particular, all tables present SSI population information by selected age groups, rather than groups based exclusively on SSI recipient categories. Where certain recipient categories have overlapping age distributions, recipient category totals are

still shown.

A. ECONOMIC AND DEMOGRAPHIC ASSUMPTIONS

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

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

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

that same 25-year period. For purposes of developing these estimates, we have relied on the demographic

projections and CPI assumptions underlying the intermediate estimates prepared for the 2001 Annual

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

and recovery from a qualifying disability.
23

2001 SSI Annual Report

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 sections

V.A and V.B of that report. 2 The key assumptions utilized directly for the projections presented in this

report are summarized in the following two tables. Table IV.A1 presents population projections summarized by certain age subgroups that match the presentation of SSI participant projections discussed in the

next section. 

Notes:

1. Historical population data subject to revision.

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

1 House Document 107-55, published March 19, 2001.

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

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

Intermediate Assumptions of the 2001 OASDI Trustees Report, as of July 1, 1974-2025

[In thousands]

Year

Age groups Total

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

Historical data:

1974.............. 70,714 60,135 36,339 32,809 13,865 8,871 222,734

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

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

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

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

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

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

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

1982.............. 65,213 72,167 41,020 34,275 16,278 11,044 239,997

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

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

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

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

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

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

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

1990.............. 67,633 72,868 53,976 33,664 18,441 13,585 260,166

1991.............. 68,640 72,036 55,747 33,904 18,606 13,992 262,924

1992.............. 69,652 71,136 57,412 34,349 18,787 14,381 265,716

1993.............. 70,583 70,262 58,996 34,939 18,931 14,741 268,451

1994.............. 71,398 69,415 60,613 35,526 19,021 15,072 271,045

1995.............. 72,063 68,623 62,302 36,063 19,052 15,419 273,522

1996.............. 72,626 67,953 63,717 36,929 18,982 15,795 276,003

1997.............. 73,071 67,447 64,685 38,280 18,858 16,141 278,483

1998.............. 73,391 67,074 65,484 39,759 18,712 16,438 280,859

1999.............. 73,657 66,803 66,251 41,206 18,585 16,701 283,203

2000.............. 73,886 66,702 66,848 42,688 18,510 16,939 285,573

Estimated:

2001.............. 74,108 66,783 67,195 44,231 18,471 17,149 287,936

2002.............. 74,337 66,987 67,311 45,863 18,453 17,351 290,302

2003.............. 74,525 67,289 67,275 47,547 18,495 17,546 292,677

2004.............. 74,672 67,584 67,173 49,288 18,603 17,713 295,033

2005.............. 74,800 67,825 67,044 51,083 18,771 17,854 297,376

2006.............. 74,885 68,149 66,788 52,888 19,045 17,955 299,711

2007.............. 74,886 68,749 66,255 54,624 19,529 18,000 302,042

2008.............. 74,800 69,635 65,488 56,243 20,201 18,006 304,374

2009.............. 74,693 70,626 64,637 57,862 20,868 18,020 306,707

2010.............. 74,639 71,573 63,773 59,549 21,440 18,068 309,042

2011.............. 74,668 72,415 62,950 61,022 22,198 18,125 311,378

2012.............. 74,775 73,119 62,236 62,063 23,322 18,198 313,712

2013.............. 74,944 73,691 61,662 62,924 24,502 18,317 316,040

2014.............. 75,158 74,127 61,279 63,729 25,593 18,473 318,359

2015.............. 75,393 74,446 61,145 64,341 26,678 18,663 320,666

2016.............. 75,635 74,715 61,232 64,707 27,754 18,914 322,957

2017.............. 75,870 74,966 61,467 64,847 28,785 19,293 325,228

2018.............. 76,106 75,222 61,742 64,839 29,774 19,794 327,477

2019.............. 76,360 75,472 61,962 64,771 30,833 20,298 329,697

2020.............. 76,623 75,669 62,148 64,682 32,004 20,757 331,884

2021.............. 76,890 75,819 62,401 64,476 33,075 21,372 334,033

2022.............. 77,152 75,946 62,847 64,006 33,907 22,283 336,140

2023.............. 77,402 76,024 63,519 63,313 34,681 23,261 338,199

2024.............. 77,632 76,013 64,349 62,540 35,489 24,183 340,206

2025.............. 77,837 75,911 65,268 61,758 36,273 25,111 342,158
2001 SSI Annual Report

24

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

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

CPI for the third quarter of the calendar year. This “cost-of-living” adjustment is identical to the adjustment of Social Security benefits under the OASDI program. In previous years, occasional ad hoc increases

were also applied to the Federal benefit rates, either in place of or in addition to such automatic adjustments. The history of legislation affecting the Federal benefit rates is presented in table V.A1. Table IV.A2

presents a complete history of the “cost-of-living” adjustment factors and Federal benefit rates since the

inception of the program, along with projections of such amounts consistent with the economic assumptions underlying the SSI expenditure estimates discussed in section IV.C.
25

2001 SSI Annual Report

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

on January 1 of the year.

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

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

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

4 Ad hoc increases as specified in the law.

5 Originally determined as 2.4 percent, but pursuant to Public Law 106-554, enacted December 21, 2000, is effectively now 2.5 percent.

6 Benefits paid in 2000 and thus far in 2001 are based on Federal benefit rates of $512.00 and $530.00, respectively. Pursuant to Public Law 106-554,

monthly payments beginning in August 2001 will be effectively based on the higher $531 amount. Lump-sum compensation payments will be made

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

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

Intermediate Assumptions of the 2001 OASDI Trustees Report, 1974-2025 

Year

Benefit rate

increase1

Federal benefit rate

Individual Couple Essential person 2

Historical data:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Estimated:

2002 ............................................ 2.8 546.00 819.00 273.00

2003 ............................................ 2.9 562.00 842.00 281.00

2004 ............................................ 3.0 578.00 868.00 290.00

2005 ............................................ 3.1 596.00 895.00 299.00

2006 ............................................ 3.2 615.00 923.00 308.00

2007 ............................................ 3.3 636.00 954.00 318.00

2008 ............................................ 3.3 657.00 985.00 329.00

2009 ............................................ 3.3 678.00 1,018.00 340.00

2010 ............................................ 3.3 701.00 1,051.00 351.00

2011 ............................................ 3.3 724.00 1,086.00 363.00

2012 ............................................ 3.3 748.00 1,122.00 375.00

2013 ............................................ 3.3 773.00 1,159.00 387.00

2014 ............................................ 3.3 798.00 1,197.00 400.00

2015 ............................................ 3.3 824.00 1,237.00 413.00

2016 ............................................ 3.3 852.00 1,278.00 427.00

2017 ............................................ 3.3 880.00 1,320.00 441.00

2018 ............................................ 3.3 909.00 1,363.00 455.00

2019 ............................................ 3.3 939.00 1,408.00 470.00

2020 ............................................ 3.3 970.00 1,455.00 486.00

2021 ............................................ 3.3 1,002.00 1,503.00 502.00

2022 ............................................ 3.3 1,035.00 1,553.00 518.00

2023 ............................................ 3.3 1,069.00 1,604.00 536.00

2024 ............................................ 3.3 1,104.00 1,657.00 553.00

2025 ............................................ 3.3 1,141.00 1,711.00 572.00
2001 SSI Annual Report

26

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

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM

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

2000 Annual Report, the tables in this section present these population totals by selected age groupings.

This is in contrast with annual reports prior to 1999 which presented forecast results exclusively by recipient categories of aged, blind or disabled adults, and blind or disabled children. Since these recipient categories are in large part based on age, the additional age breakouts shown in this year’s report can be

viewed as a refinement of the information presented in the first two SSI Annual Reports. The following

paragraphs discuss a few of the subtle points in the translation between the previous recipient categories

and current age categories.

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

meeting the age-65-or-older requirement for assistance, and the income and resource limits applicable

for adults. In December 2000, there were 1.289 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 2000, there were 4.452

million blind or disabled adult recipients of Federally-administered SSI payments, including 703

thousand disabled and 19 thousand blind recipients aged 65 or older.

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

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

blind or disabled adults at age 18. However, students aged 18 to 21 are still classified as blind or disabled children, but only for purposes of applying a special student earned income exclusion. 1The

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

For example, in December 2000, there were 860 thousand blind or disabled child recipients of Federally-administered SSI payments, including 13 thousand students aged 18 to 21. Since these students

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

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

conform to this new standard.

Much of the historical age-specific information presented in the discussion that follows had to be reconstructed using samples of various sizes. Most age-specific splits prior to 1980 have not yet been developed,

but may be constructed for future reports as we develop more complete retrospective data. Historical age

breakouts may be revised in future reports as more complete data become available. Unless otherwise indicated, the historical calendar year program totals should agree with those shown in previous SSI Annual

Reports.

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 2000 were about 1.2 percent higher than were received in 1999. The actual result

1 Parent-to-child deeming ends in all cases when an individual turns 18.
27

2001 SSI Annual Report

for 2000 was about 0.2 percent lower than estimated for 2000 in the 2000 Annual Report. Longer term

trends in applications are estimated to continue to grow from current levels roughly in line with overall

population growth.

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

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

3 Totals estimated using a 1-percent sample.

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

5 Fewer than 500.

Notes:

1. Historical split among age groups is estimated.

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

Table IV.B1.—SSI Federally-Administered Applications,1 Calendar Years 1974-2025

[In thousands]

Calendar 

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974....... (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

1975 3 .... (4) (4) (4) (4) (4) (4) (4) (4) 1,075 325 1,400

1976....... (4) (4) (4) (4) (4) (4) (4) (4) 984 254 1,239

1977....... (4) (4) (4) (4) (4) (4) (4) (4) 1,040 259 1,298

1978....... (4) (4) (4) (4) (4) (4) (4) (4) 1,046 258 1,304

1979....... (4) (4) (4) (4) (4) (4) (4) (4) 1,090 262 1,352

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Estimated:

2001....... 342 335 477 349 7 (5) 101 39 1,511 140 1,651

2002....... 341 339 476 361 5 (5) 104 40 1,523 144 1,667

2003....... 341 340 476 375 5 (5) 105 40 1,538 146 1,683

2004....... 342 339 475 390 5 (5) 106 40 1,552 146 1,698

2005....... 343 339 473 406 6 (5) 106 40 1,566 146 1,712

2006....... 343 339 470 422 6 (5) 106 39 1,580 146 1,726

2007....... 344 342 464 438 7 (5) 108 38 1,595 146 1,741

2008....... 345 347 457 454 7 (5) 108 37 1,609 145 1,754

2009....... 345 352 451 466 7 (5) 108 37 1,620 145 1,765

2010....... 345 356 445 477 7 (5) 109 36 1,630 145 1,775

2011....... 345 360 439 487 8 (5) 114 36 1,640 150 1,791

2012....... 346 364 435 494 9 (5) 120 36 1,648 157 1,804

2013....... 347 366 431 501 9 (5) 123 36 1,654 160 1,814

2014....... 348 368 428 506 9 (5) 128 37 1,660 165 1,824

2015....... 350 369 427 510 9 (5) 133 37 1,665 170 1,835

2016....... 351 370 428 511 9 (5) 137 37 1,669 175 1,844

2017....... 352 371 429 511 10 (5) 141 38 1,673 179 1,853

2018....... 353 373 431 509 10 (5) 145 39 1,676 185 1,861

2019....... 354 374 432 508 10 (5) 150 40 1,679 191 1,869

2020....... 356 375 433 506 11 (5) 155 41 1,681 197 1,877

2021....... 357 376 435 503 11 (5) 160 43 1,683 203 1,885

2022....... 358 377 439 498 11 (5) 164 45 1,684 209 1,892

2023....... 359 378 445 492 11 (5) 167 47 1,684 214 1,898

2024....... 360 377 451 485 11 (5) 171 48 1,684 219 1,904

2025....... 360 376 458 479 11 (5) 174 50 1,685 224 1,909
2001 SSI Annual Report

28

The adjudication of these applications involves an evaluation of levels of income and resources available

to the applicants, as well as other eligibility factors including marital and citizenship status and living

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

done by the appropriate State Disability Determination Service. An unfavorable disability determination

may then be appealed by the applicant through several administrative levels of appeal. If all administrative

levels of appeal are exhausted, the applicant may in turn carry his/her appeal to the Federal courts. Data on

recent historical experience for this disability decision process are presented in section V.C. 

Table IV.B2 and figure IV.B2 present historical and projected numbers of persons who are ultimately

awarded SSI eligibility as a result of this decision process. In that table and graph, we are essentially

counting individuals as being awarded in the first month that they move into SSI payment status. For this

reason, we refer to these individuals as “new entrants” rather than “awards.” 1 The numbers of new entrants

into SSI payment status increased in 1998 and again slightly in 1999 following a period of decline ending

in 1997. In 2000 the numbers of new entrants experienced a small decrease but are estimated to increase

gradually in the future in line with projected growth in applications.

Figure IV.B1.—SSI Federally-Administered Applications by Age Group, Calendar Years 1980-2025

[In thousands]

1 In addition, these counts differ slightly from other similar totals identified as “awards” and published by the Office of Research, Evaluation, and

Statistics (ORES) in the Annual Statistical Supplement to the Social Security Bulletin. The ORES totals are similar in concept to those used in this

report, but differ slightly due to the timing of the action being tabulated. For example, ORES does not count a disability benefit as being awarded

until the disability decision is made. Under the procedures used in this report, individuals first coming on the SSI rolls through a finding of presumptive disability would be counted as a “new entrant” in the first month of presumptive disability payment. In contrast, ORES would not count

this person as an award until a final disability allowance decision had been rendered.

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
29

2001 SSI Annual Report

1 Represents period in which first payment was made, not date of first eligibility for payments.

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

3 Totals for 1974 include recipients converted from previous State programs as well as new entrants to the SSI program during 1974.

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

5 Fewer than 500.

Notes:

1. Historical split among age groups is estimated.

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

Table IV.B2.—SSI Federally-Administered New Entrants, Calendar Years 1974-2025

[In thousands]

Calendar 

year 1

Blind or disabled, by age group Aged, by age group Totals 2

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 3 .... (4) (4) (4) (4) (4) (4) (4) (4) 1,919 2,479 4,398

1975....... (4) (4) (4) (4) (4) (4) (4) (4) 584 347 931

1976....... (4) (4) (4) (4) (4) (4) (4) (4) 452 218 669

1977....... (4) (4) (4) (4) (4) (4) (4) (4) 429 209 637

1978....... (4) (4) (4) (4) (4) (4) (4) (4) 370 193 563

1979....... (4) (4) (4) (4) (4) (4) (4) (4) 330 169 499

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1999....... 140 114 186 195 5 (5) 87 33 640 120 760

2000....... 145 112 180 191 6 (5) 83 31 634 114 748

Estimated:

2001....... 148 118 178 193 6 (5) 79 30 645 110 754

2002....... 149 120 181 202 5 (5) 84 32 657 117 774

2003....... 148 120 182 211 5 (5) 85 33 667 118 785

2004....... 149 120 182 220 6 (5) 86 33 677 118 795

2005....... 149 120 183 229 6 (5) 86 32 687 118 805

2006....... 149 120 182 238 6 (5) 85 32 695 117 813

2007....... 149 120 178 246 7 (5) 86 31 701 117 818

2008....... 149 121 174 253 7 (5) 86 30 704 116 820

2009....... 149 121 170 257 7 (5) 86 29 703 115 819

2010....... 149 121 166 260 6 (5) 86 29 703 115 818

2011....... 150 121 162 263 7 (5) 90 29 703 119 822

2012....... 150 122 160 266 7 (5) 95 29 705 124 829

2013....... 151 122 158 270 7 (5) 98 29 708 126 835

2014....... 151 123 157 273 7 (5) 101 29 711 130 842

2015....... 152 123 156 275 8 (5) 105 29 714 134 848

2016....... 152 123 156 276 8 (5) 109 30 716 139 855

2017....... 153 124 157 276 8 (5) 112 30 718 142 860

2018....... 153 124 158 276 8 (5) 115 31 719 147 866

2019....... 154 125 158 275 9 (5) 119 32 721 151 872

2020....... 154 125 158 275 9 (5) 123 33 722 156 878

2021....... 154 126 159 274 9 (5) 127 34 722 161 883

2022....... 155 126 161 271 9 (5) 130 36 722 166 888

2023....... 155 126 163 268 9 (5) 133 37 722 170 892

2024....... 155 126 166 265 9 (5) 136 39 722 174 896

2025....... 156 126 168 261 9 (5) 138 40 721 179 900
2001 SSI Annual Report

30

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. For

example, disabled children, upon attainment of age 18, lose eligibility if they do not qualify for benefits

under the disabled adult eligibility criteria. For purposes of this presentation, we refer to the net reduction

in the number of SSI recipients in payment status during a period as the number of SSI terminations for

that period. 

In the following tables, we have separated the numbers of people moving out of payment status into those

leaving due to death (table IV.B3), and those leaving for all other reasons (table IV.B4). Table IV.B5 and

figure IV.B3 present historical and projected numbers of total terminations by calendar year. 

Actual experience for terminations in 2000 was 3.2 percent lower than anticipated in the 2000 Annual

Report. Terminations due to death and terminations due to reasons other than death were both lower than

estimated.

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.

Figure IV.B2.—SSI Federally-Administered New Entrants by Age Group, Calendar Years 1980-2025

[In thousands]

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
31

2001 SSI Annual Report

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

2 Data not available.

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

Notes:

1. Historical split among age groups is estimated.

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

Table IV.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2025

[In thousands]

Calendar 

year

Blind or disabled, by age group Aged, by age group Totals1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974....... (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

1975....... (3) (3) (3) (3) (3) (3) (3) (3) 65 147 212

1976....... (3) (3) (3) (3) (3) (3) (3) (3) 64 137 201

1977....... (3) (3) (3) (3) (3) (3) (3) (3) 65 137 203

1978....... (3) (3) (3) (3) (3) (3) (3) (3) 67 126 193

1979....... (3) (3) (3) (3) (3) (3) (3) (3) 67 121 189

1980....... 3 5 9 31 22 1 27 100 71 127 198

1981....... 3 5 8 31 24 2 21 92 73 112 186

1982....... 3 4 8 28 21 2 16 80 65 96 161

1983....... 3 6 8 25 21 3 15 79 65 94 158

1984....... 3 4 9 29 18 5 13 83 67 96 163

1985....... 2 6 10 29 24 6 17 84 77 101 178

1986....... 2 8 12 28 22 8 15 83 80 98 178

1987....... 3 8 13 30 23 10 15 82 87 97 184

1988....... 5 8 14 31 25 12 16 81 95 97 191

1989....... 3 8 16 33 23 12 15 78 95 93 187

1990....... 4 9 18 36 22 14 16 75 103 92 194

1991....... 4 9 20 39 23 17 17 74 112 91 203

1992....... 4 11 22 38 22 15 16 69 111 84 195

1993....... 6 13 27 41 23 17 16 72 127 88 215

1994....... 6 14 27 41 23 17 16 69 127 85 212

1995....... 6 13 30 43 24 18 16 65 135 81 216

1996....... 7 12 30 44 24 18 16 67 135 83 218

1997....... 5 10 24 43 24 19 15 64 127 79 206

1998....... 5 9 24 43 25 20 14 64 127 78 205

1999....... 5 9 25 45 25 21 13 63 131 76 207

2000....... 5 8 27 46 25 21 12 61 132 73 205

Estimated:

2001....... 5 9 27 46 25 20 12 59 133 71 204

2002....... 5 9 28 48 27 19 11 59 136 70 206

2003....... 6 9 28 50 27 20 11 59 139 70 209

2004....... 6 9 28 52 28 20 11 59 142 70 213

2005....... 6 9 28 54 29 21 11 60 146 70 217

2006....... 6 9 28 56 30 22 11 60 150 71 221

2007....... 6 9 28 58 31 23 11 60 154 71 225

2008....... 6 9 27 60 32 23 11 60 158 71 229

2009....... 6 9 27 62 33 23 11 59 161 71 231

2010....... 6 9 26 64 33 24 11 59 163 70 233

2011....... 6 9 26 66 34 24 11 58 165 69 235

2012....... 6 10 25 66 36 24 11 57 168 69 236

2013....... 6 10 25 67 37 24 12 57 170 68 238

2014....... 6 10 25 68 38 25 12 56 172 68 240

2015....... 6 10 24 69 39 25 12 55 174 68 241

2016....... 7 10 24 69 41 26 13 55 176 67 243

2017....... 7 10 24 69 42 26 13 54 178 67 245

2018....... 7 10 24 69 43 27 14 54 180 68 247

2019....... 7 10 24 69 45 27 14 54 182 68 250

2020....... 7 10 24 69 46 28 15 54 183 68 252

2021....... 7 10 24 69 47 28 15 54 185 69 254

2022....... 7 10 24 68 48 29 15 54 187 70 257

2023....... 7 11 25 67 50 30 16 55 189 71 260

2024....... 7 11 25 66 51 31 16 56 190 72 262

2025....... 7 11 25 65 52 32 17 57 191 74 265
2001 SSI Annual Report

32

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

2 Data not available.

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

Notes:

1. Historical split among age groups is estimated.

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

Table IV.B4.—SSI Federally-Administered Terminations Due to Reasons Other Than Death, Calendar Years 1974-2025

[In thousands]

Calendar 

year

Blind or disabled, by age group Aged, by age group Totals1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ...... (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

1975 ...... (3) (3) (3) (3) (3) (3) (3) (3) 221 180 401

1976 ...... (3) (3) (3) (3) (3) (3) (3) (3) 306 240 546

1977 ...... (3) (3) (3) (3) (3) (3) (3) (3) 265 168 433

1978 ...... (3) (3) (3) (3) (3) (3) (3) (3) 241 150 391

1979 ...... (3) (3) (3) (3) (3) (3) (3) (3) 234 144 378

1980 ...... 19 48 43 80 23 1 44 77 214 121 334

1981 ...... 17 43 39 72 21 1 49 86 192 134 326

1982 ...... 19 48 43 79 23 1 50 87 212 137 348

1983 ...... 18 43 36 63 14 1 25 61 175 86 261

1984 ...... 13 51 37 77 21 1 37 60 200 98 298

1985 ...... 11 42 37 68 13 2 23 54 172 77 249

1986 ...... 18 49 47 73 16 3 34 60 206 94 300

1987 ...... 19 51 48 75 17 3 32 57 214 89 302

1988 ...... 19 52 51 74 15 5 33 59 216 93 309

1989 ...... 19 55 52 72 16 4 33 58 218 91 308

1990 ...... 14 52 57 73 17 8 40 68 221 108 330

1991 ...... 20 50 70 84 18 5 33 58 248 91 339

1992 ...... 39 68 94 103 19 8 34 56 329 90 419

1993 ...... 34 73 97 106 22 8 37 55 340 92 433

1994 ...... 41 73 101 107 18 8 32 49 348 81 429

1995 ...... 47 81 111 115 20 7 32 48 382 80 461

1996 ...... 47 89 128 119 21 8 29 49 413 78 491

1997 ...... 128 105 147 115 18 8 24 40 522 64 586

1998 ...... 67 89 112 110 19 8 22 38 406 61 466

1999 ...... 119 111 120 116 20 9 24 43 495 68 563

2000 ...... 84 99 112 112 22 9 22 38 438 60 498

Estimated:

2001 ...... 70 99 119 124 22 9 20 38 442 58 500

2002 ...... 59 99 117 121 20 8 20 39 425 59 485

2003 ...... 68 101 118 126 20 9 20 39 442 59 501

2004 ...... 68 98 119 131 21 9 20 39 445 59 504

2005 ...... 66 100 119 136 21 9 19 39 451 59 510

2006 ...... 64 100 119 142 21 9 19 39 456 58 515

2007 ...... 63 102 118 148 22 9 19 39 462 58 520

2008 ...... 59 104 117 154 23 9 20 38 465 58 523

2009 ...... 56 106 115 159 23 9 20 38 468 58 526

2010 ...... 53 107 113 163 24 9 20 37 470 57 527

2011 ...... 52 108 111 166 25 9 20 37 471 57 528

2012 ...... 53 109 109 168 26 9 21 36 475 57 532

2013 ...... 54 110 108 170 27 9 21 36 478 57 535

2014 ...... 54 111 106 172 28 10 22 35 481 57 538

2015 ...... 55 112 106 173 29 10 23 35 484 57 541

2016 ...... 55 113 105 174 30 10 23 34 487 58 545

2017 ...... 55 115 105 174 30 10 24 34 489 58 548

2018 ...... 56 116 105 173 31 10 25 34 492 59 551

2019 ...... 56 117 105 173 32 11 26 34 494 60 554

2020 ...... 56 119 105 172 33 11 27 34 496 61 557

2021 ...... 56 120 106 171 34 11 28 34 497 62 559

2022 ...... 56 120 106 169 35 11 28 35 498 63 562

2023 ...... 56 121 108 167 36 12 29 36 500 65 564

2024 ...... 56 122 109 165 36 12 30 37 500 66 567

2025 ...... 56 123 111 163 37 12 30 37 501 68 569
33

2001 SSI Annual Report

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

2 Data not available.

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

Notes:

1. Historical split among age groups is estimated.

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

Table IV.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2025

[In thousands]

Calendar 

year

Blind or disabled, by age group Aged, by age group Totals 1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974...... (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)

1975...... (3) (3) (3) (3) (3) (3) (3) (3) 287 326 613

1976...... (3) (3) (3) (3) (3) (3) (3) (3) 371 377 748

1977...... (3) (3) (3) (3) (3) (3) (3) (3) 330 305 636

1978...... (3) (3) (3) (3) (3) (3) (3) (3) 308 276 584

1979...... (3) (3) (3) (3) (3) (3) (3) (3) 301 265 566

1980...... 22 53 52 111 45 2 70 177 284 248 532

1981...... 20 48 47 103 45 3 69 177 266 246 512

1982...... 21 52 51 107 43 2 65 168 277 233 510

1983...... 21 49 44 87 34 4 39 140 240 180 419

1984...... 16 55 46 106 39 6 50 144 267 194 461

1985...... 13 47 47 97 37 8 40 138 249 178 427

1986...... 21 58 59 101 38 11 48 143 287 192 478

1987...... 22 59 61 106 40 13 47 138 301 185 486

1988...... 24 60 65 105 39 18 49 140 311 189 500

1989...... 22 63 69 105 39 15 47 136 312 183 496

1990...... 18 61 75 109 39 22 56 144 324 200 524

1991...... 25 60 90 123 40 22 50 132 360 182 542

1992...... 42 78 115 140 41 23 50 125 440 175 614

1993...... 40 86 124 148 45 24 54 127 467 181 648

1994...... 47 87 128 148 41 24 48 118 475 166 642

1995...... 54 94 142 158 44 25 47 113 517 160 677

1996...... 54 101 158 163 45 27 45 116 548 161 710

1997...... 133 116 172 159 43 26 39 105 648 143 792

1998...... 73 98 136 153 44 29 36 102 533 138 671

1999...... 124 120 146 161 45 31 38 106 626 144 770

2000...... 90 107 139 159 46 29 34 98 570 133 703

Estimated:

2001...... 75 107 147 170 47 29 32 97 575 129 704

2002...... 65 108 145 169 47 28 32 98 561 129 691

2003...... 73 110 146 176 47 28 31 98 581 129 710

2004...... 73 107 147 183 48 29 31 98 588 129 717

2005...... 72 108 147 190 49 30 30 99 597 129 726

2006...... 70 109 147 198 51 31 30 99 606 129 735

2007...... 69 111 146 206 53 31 30 99 616 129 745

2008...... 65 113 145 214 55 32 31 98 623 129 752

2009...... 62 115 142 221 56 32 31 97 629 128 757

2010...... 59 117 140 227 57 33 31 96 633 127 760

2011...... 58 118 137 232 59 33 31 95 637 126 763

2012...... 59 119 135 234 62 34 32 93 643 126 768

2013...... 60 120 133 237 64 34 33 92 648 125 773

2014...... 61 121 131 240 66 34 34 91 653 125 778

2015...... 61 122 130 242 68 35 35 90 658 125 783

2016...... 62 123 130 243 70 36 36 89 663 125 788

2017...... 62 125 130 243 72 36 37 88 667 126 793

2018...... 62 126 130 242 75 37 38 88 672 127 798

2019...... 62 128 129 242 77 38 40 88 676 128 803

2020...... 62 129 129 241 79 38 42 88 679 129 808

2021...... 63 130 130 240 82 39 43 88 682 131 813

2022...... 63 131 131 237 83 41 44 90 685 133 819

2023...... 63 132 132 234 85 42 45 91 688 136 824

2024...... 63 133 134 231 87 43 46 93 690 138 829

2025...... 63 133 136 228 88 44 47 94 692 141 834
2001 SSI Annual Report

34

Combining the number of persons coming on the SSI payment rolls during a year with the number of those

already receiving benefits at the beginning of the year, and subtracting the number leaving the rolls during

the year, yields the number of persons receiving Federally-administered SSI payments at the end of the

specified period. Individuals receiving Federal SSI payments, who comprise the great majority of Federally-administered recipients, are presented in table IV.B6 and in figure IV.B4. The net effect of actual

experience in 2000 was that there were roughly 0.3 percent more Federal SSI recipients at the end of 2000

than estimated for the 2000 Annual Report.

Figure IV.B3.—SSI Federally-Administered Terminations by Age Group, Calendar Years 1980-2025

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2025

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974....... (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)

1975....... (2) (2) (2) (2) (2) (2) (2) (2) 1,869 2,025 3,893

1976....... (2) (2) (2) (2) (2) (2) (2) (2) 1,932 1,867 3,799

1977....... (2) (2) (2) (2) (2) (2) (2) (2) 2,013 1,765 3,778

1978....... (2) (2) (2) (2) (2) (2) (2) (2) 2,069 1,686 3,755

1979....... (2) (2) (2) (2) (2) (2) (2) (2) 2,094 1,593 3,687

1980....... 188 500 351 750 342 17 609 925 2,149 1,533 3,682

1981....... 194 514 349 720 366 17 541 888 2,160 1,430 3,590

1982....... 191 517 346 683 386 21 459 871 2,144 1,329 3,473

1983....... 198 555 366 692 412 28 449 890 2,250 1,339 3,590

1984....... 210 595 393 700 406 48 463 884 2,352 1,347 3,699

1985....... 226 634 426 717 402 72 462 860 2,477 1,322 3,799

1986....... 240 688 475 739 397 91 465 827 2,630 1,291 3,922

1987....... 249 717 524 756 392 113 464 804 2,751 1,268 4,019

1988....... 254 738 564 774 387 127 468 777 2,844 1,245 4,089

1989....... 263 757 613 799 382 145 488 760 2,959 1,247 4,206

1990....... 306 788 677 840 389 156 508 749 3,156 1,257 4,412

1991....... 395 833 769 897 390 166 542 736 3,451 1,279 4,730

1992....... 555 920 877 970 402 173 577 727 3,898 1,304 5,202

1993....... 721 990 979 1,034 410 179 604 720 4,312 1,324 5,636

1994....... 839 1,032 1,071 1,089 425 182 610 716 4,638 1,326 5,965

1995....... 915 1,058 1,150 1,134 435 188 601 713 4,880 1,315 6,194

1996....... 954 1,066 1,198 1,176 444 192 586 711 5,029 1,296 6,326

1997....... 878 1,039 1,196 1,198 457 193 547 704 4,960 1,251 6,212

1998....... 885 1,038 1,238 1,243 464 197 521 705 5,063 1,226 6,289

1999....... 845 1,005 1,274 1,278 474 195 499 704 5,072 1,203 6,275

2000....... 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
35

2001 SSI Annual Report

1 Data not available.

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

Notes:

1. Historical split among age groups is estimated.

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

Estimated:

2001....... 865 987 1,315 1,345 492 198 464 705 5,202 1,169 6,371

2002....... 894 987 1,324 1,388 500 202 450 706 5,296 1,157 6,452

2003....... 909 990 1,329 1,435 508 207 439 707 5,379 1,146 6,525

2004....... 924 995 1,332 1,484 517 212 431 705 5,465 1,136 6,600

2005....... 938 998 1,334 1,537 525 217 423 702 5,550 1,125 6,675

2006....... 952 1,005 1,329 1,594 536 219 421 693 5,635 1,114 6,749

2007....... 964 1,017 1,315 1,647 550 222 422 680 5,715 1,102 6,817

2008....... 978 1,031 1,296 1,697 566 223 424 666 5,791 1,090 6,882

2009....... 995 1,043 1,274 1,748 577 225 425 654 5,862 1,078 6,940

2010....... 1,014 1,054 1,251 1,798 584 227 425 642 5,929 1,067 6,996

2011....... 1,034 1,063 1,228 1,833 603 230 432 629 5,992 1,061 7,052

2012....... 1,052 1,071 1,208 1,856 630 233 441 617 6,051 1,059 7,110

2013....... 1,069 1,080 1,192 1,880 651 236 452 608 6,109 1,059 7,168

2014....... 1,085 1,089 1,178 1,901 672 240 465 599 6,165 1,064 7,229

2015....... 1,098 1,099 1,171 1,914 693 244 480 592 6,218 1,072 7,291

2016....... 1,109 1,109 1,168 1,921 715 247 496 587 6,270 1,084 7,354

2017....... 1,119 1,120 1,169 1,922 736 253 511 588 6,318 1,099 7,417

2018....... 1,127 1,132 1,169 1,920 758 259 527 590 6,364 1,117 7,481

2019....... 1,135 1,144 1,168 1,916 782 263 546 592 6,408 1,138 7,546

2020....... 1,143 1,154 1,167 1,911 807 266 569 593 6,448 1,162 7,611

2021....... 1,150 1,164 1,170 1,900 828 274 585 604 6,486 1,189 7,676

2022....... 1,157 1,174 1,179 1,881 847 285 597 622 6,522 1,219 7,741

2023....... 1,163 1,182 1,193 1,859 865 294 612 638 6,555 1,250 7,805

2024....... 1,168 1,188 1,209 1,834 882 303 628 655 6,585 1,283 7,867

2025....... 1,173 1,193 1,227 1,810 898 312 644 673 6,613 1,317 7,929

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

as of December, 1980-2025

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2025

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

C alendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Estimated
2001SSI Annual Report

36

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. Our

forecasts indicate that this modest growth rate is expected to continue throughout the remainder of the

25-year projection period. In order to place this projected growth in the context of overall population

growth, table IV.B7 and figure IV.B5 present Federal SSI recipients as percentages of selected Social

Security Area population totals. For the totals shown in 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 recipient categories are computed as percentages of differing base populations, the percentage for the total SSI recipient population is not the arithmetic sum of the percentages

for the respective recipient categories.

1 Blind or disabled recipients as a percentage of the total Social Security Area population.

2 Aged recipients as a percentage of the 65 or older Social Security Area population.

3 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations.

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

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

Selected Social Security Area Population Totals, as of December, 1975-2025 

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled1 Aged2 All3

Historical data:

1975...... (4) (4) (4) (4) (4) (4) (4) (4) 0.83 8.62 1.73

1976...... (4) (4) (4) (4) (4) (4) (4) (4) .85 7.76 1.67

1977...... (4) (4) (4) (4) (4) (4) (4) (4) .88 7.16 1.65

1978...... (4) (4) (4) (4) (4) (4) (4) (4) .89 6.68 1.62

1979...... (4) (4) (4) (4) (4) (4) (4) (4) .90 6.17 1.58

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

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

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

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

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

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

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

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

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

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

1990...... .45 1.09 1.24 2.49 2.10 1.13 2.74 5.45 1.21 3.90 1.69

1991...... .57 1.16 1.36 2.63 2.09 1.17 2.90 5.21 1.31 3.90 1.79

1992...... .79 1.30 1.51 2.81 2.13 1.19 3.06 5.01 1.46 3.91 1.95

1993...... 1.02 1.42 1.64 2.94 2.16 1.20 3.18 4.84 1.60 3.91 2.09

1994...... 1.17 1.49 1.75 3.05 2.23 1.20 3.20 4.71 1.70 3.87 2.19

1995...... 1.26 1.55 1.82 3.13 2.29 1.21 3.16 4.58 1.78 3.80 2.26

1996...... 1.31 1.57 1.87 3.14 2.34 1.21 3.09 4.46 1.82 3.72 2.28

1997...... 1.20 1.54 1.84 3.08 2.43 1.19 2.91 4.33 1.77 3.57 2.22

1998...... 1.20 1.55 1.88 3.08 2.49 1.19 2.79 4.26 1.80 3.48 2.23

1999...... 1.15 1.51 1.91 3.06 2.56 1.16 2.69 4.19 1.78 3.40 2.21

2000...... 1.14 1.49 1.94 3.03 2.61 1.15 2.61 4.13 1.79 3.34 2.21

Estimated:

2001...... 1.17 1.48 1.95 2.99 2.67 1.15 2.51 4.09 1.80 3.28 2.21

2002...... 1.20 1.47 1.97 2.98 2.71 1.16 2.44 4.05 1.82 3.22 2.22

2003...... 1.22 1.47 1.98 2.97 2.74 1.18 2.37 4.02 1.83 3.17 2.22

2004...... 1.24 1.47 1.98 2.97 2.77 1.19 2.31 3.97 1.85 3.12 2.23

2005...... 1.25 1.47 1.99 2.97 2.79 1.21 2.24 3.92 1.86 3.06 2.24

2006...... 1.27 1.47 1.99 2.97 2.79 1.22 2.20 3.85 1.87 3.00 2.24

2007...... 1.29 1.47 1.99 2.98 2.78 1.23 2.13 3.78 1.89 2.92 2.25

2008...... 1.31 1.47 1.99 2.98 2.76 1.24 2.07 3.70 1.90 2.83 2.25

2009...... 1.33 1.47 1.98 2.99 2.73 1.25 2.01 3.63 1.91 2.75 2.26

2010...... 1.36 1.47 1.97 2.98 2.70 1.26 1.96 3.55 1.91 2.68 2.26

2011...... 1.38 1.46 1.96 2.98 2.67 1.27 1.91 3.47 1.92 2.60 2.26

2012...... 1.41 1.46 1.95 2.97 2.64 1.28 1.85 3.39 1.92 2.52 2.26

2013...... 1.43 1.46 1.94 2.97 2.61 1.29 1.81 3.31 1.93 2.45 2.26

2014...... 1.44 1.47 1.93 2.97 2.58 1.30 1.78 3.23 1.93 2.39 2.26

2015...... 1.45 1.47 1.91 2.97 2.56 1.30 1.77 3.16 1.93 2.34 2.27

2016...... 1.46 1.48 1.90 2.96 2.54 1.30 1.76 3.09 1.94 2.29 2.27

2017...... 1.47 1.49 1.90 2.96 2.52 1.30 1.75 3.02 1.94 2.26 2.27

2018...... 1.48 1.50 1.89 2.96 2.51 1.29 1.74 2.95 1.94 2.22 2.28

2019...... 1.48 1.51 1.88 2.96 2.50 1.29 1.75 2.89 1.94 2.20 2.28

2020...... 1.49 1.52 1.88 2.96 2.48 1.27 1.75 2.83 1.94 2.17 2.29

2021...... 1.49 1.53 1.87 2.95 2.47 1.26 1.75 2.79 1.94 2.16 2.29

2022...... 1.50 1.54 1.87 2.95 2.47 1.26 1.74 2.74 1.94 2.14 2.30

2023...... 1.50 1.55 1.87 2.95 2.47 1.25 1.75 2.70 1.93 2.13 2.30

2024...... 1.50 1.56 1.87 2.95 2.46 1.24 1.75 2.67 1.93 2.12 2.31

2025...... 1.51 1.57 1.87 2.95 2.45 1.23 1.76 2.64 1.93 2.12 2.31
37

2001 SSI Annual Report

Table IV.B7 indicates that the percentage of the total Social Security Area population who were receiving

Federal SSI payments declined from the inception of the program through the early 1980s. In 1983, this

percentage started increasing and continued to increase through 1996. Due to factors described previously,

the percentage of the total population receiving Federal SSI payments declined in 1997, but has leveled out

since and is expected to remain fairly constant throughout the projection period. 

The various subcategories of Federal SSI recipients, however, follow significantly different growth patterns in relationship to their respective population totals. The aged Federal SSI recipient population

declines steadily as a percentage of the 65 or older population. In contrast, except for recent decreases due

to the eligibility redeterminations and continuing disability reviews mandated by Public Law 104-193, the

number of blind or disabled children receiving Federal SSI payments increased steadily as a percentage of

the under age 18 population, with the increase being quite steep in the early 1990s. The total blind or disabled Federal SSI recipient population as a percentage of the total population remained fairly level until

the early 1980s when it started increasing and continued to increase through 1996. After the recent modest

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

the total population.

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B8.

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

Selected Social Security Area Population Age Groups, as of December, 1980-2025

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

0-17

18-34

35-49

50-64

65-74

75 or older

Total

Historical Estimated
2001SSI Annual Report

38

1 Data not available.

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

Notes:

1. Historical split among age groups is estimated.

2. 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.B9.

In examining the recent history of SSI participation and the projections of such participation in the near

future, certain patterns are worth noting. The rapid increase in the total number of SSI participants in the

early 1990s is a function of the growth in the numbers of disabled adults and children. The growth in the

numbers of children receiving SSI resulted in large part from the Supreme Court decision in the case of

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

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

in Current-Payment Status as of December, 1974-2025

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974....... (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)

1975....... (2) (2) (2) (2) (2) (2) (2) (2) 139 282 421

1976....... (2) (2) (2) (2) (2) (2) (2) (2) 156 280 437

1977....... (2) (2) (2) (2) (2) (2) (2) (2) 174 286 460

1978....... (2) (2) (2) (2) (2) (2) (2) (2) 180 282 462

1979....... (2) (2) (2) (2) (2) (2) (2) (2) 184 278 462

1980....... 2 20 26 82 52 2 112 162 185 274 460

1981....... 1 19 26 75 58 2 94 155 181 248 429

1982....... 1 18 23 68 53 2 82 137 165 219 384

1983....... 1 17 19 50 44 4 65 111 136 176 312

1984....... 1 18 23 50 47 7 68 116 147 184 331

1985....... 1 21 28 53 45 8 67 115 157 182 339

1986....... 1 23 31 55 45 11 66 116 166 182 348

1987....... 1 26 36 60 43 12 72 115 178 187 366

1988....... 1 26 42 59 44 14 74 114 187 188 375

1989....... 2 28 45 60 45 16 76 115 195 192 387

1990....... 2 31 54 60 44 17 82 116 208 197 405

1991....... 2 29 54 59 42 17 78 108 203 186 389

1992....... 2 29 55 59 37 16 70 97 197 167 364

1993....... 2 29 58 59 34 15 64 88 197 151 348

1994....... 2 28 59 56 32 14 59 81 192 139 331

1995....... 3 25 59 56 32 14 54 77 188 131 320

1996....... 2 21 54 53 29 13 49 68 172 116 288

1997....... 2 20 55 53 29 13 46 65 172 111 283

1998....... 2 18 54 55 28 13 43 63 171 106 277

1999....... 2 18 57 58 28 13 43 62 177 105 282

2000....... 2 17 57 60 29 13 42 61 179 103 282

Estimated:

2001....... 2 18 56 62 29 13 41 59 180 101 281

2002....... 2 18 56 64 29 13 41 59 182 101 283

2003....... 2 18 56 66 30 13 41 60 185 100 286

2004....... 2 18 56 69 31 13 40 60 189 100 289

2005....... 3 18 57 72 31 13 40 60 193 99 293

2006....... 3 18 57 75 32 13 40 59 198 99 297

2007....... 3 18 56 79 34 13 40 58 203 98 301

2008....... 3 19 56 82 35 13 40 57 207 97 304

2009....... 3 19 55 85 36 13 40 56 211 96 307

2010....... 3 19 54 89 36 13 40 55 214 95 309

2011....... 3 19 53 91 38 13 41 54 217 95 312

2012....... 3 19 52 92 40 14 42 53 220 95 315

2013....... 3 19 51 93 41 14 43 53 222 96 318

2014....... 3 20 51 95 43 14 44 52 225 96 321

2015....... 3 20 50 95 44 14 46 52 227 98 324

2016....... 3 20 50 96 45 15 48 51 229 99 328

2017....... 3 20 50 96 47 15 49 52 231 101 332

2018....... 3 20 50 96 48 15 51 52 233 103 336

2019....... 3 20 50 96 50 16 53 53 234 105 340

2020....... 3 21 50 96 51 16 55 53 236 108 344

2021....... 3 21 50 95 53 16 56 54 238 111 349

2022....... 3 21 50 94 54 17 58 56 239 114 353

2023....... 3 21 51 93 55 17 59 58 241 117 358

2024....... 3 21 52 92 56 18 61 59 242 120 362

2025....... 3 21 52 91 57 18 62 61 243 123 367
39

2001 SSI Annual Report

growth in the numbers of disabled adults is a more complicated phenomenon which is still not completely understood. However, extensive research conducted under contract to SSA and the Department of

Health and Human Services suggested that this growth was the result of a combination of factors including

(1) demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term

structural changes in the economy, and (4) changes in other support programs (in particular the reduction

or elimination of general assistance programs in certain States). The recent modest 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.

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

Notes:

1. Historical split among age groups is estimated.

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

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

as of December, 1974-2025

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974...... (1) (1) (1) (1) (1) (1) (1) (1) 1,710 2,286 3,996

1975...... (1) (1) (1) (1) (1) (1) (1) (1) 2,007 2,307 4,314

1976...... (1) (1) (1) (1) (1) (1) (1) (1) 2,088 2,148 4,236

1977...... (1) (1) (1) (1) (1) (1) (1) (1) 2,187 2,051 4,238

1978...... (1) (1) (1) (1) (1) (1) (1) (1) 2,249 1,968 4,217

1979...... (1) (1) (1) (1) (1) (1) (1) (1) 2,278 1,872 4,150

1980...... 190 521 377 833 393 20 721 1,086 2,334 1,808 4,142

1981...... 195 533 375 795 424 19 635 1,043 2,341 1,678 4,019

1982...... 192 535 369 751 439 23 541 1,008 2,309 1,549 3,858

1983...... 198 572 386 742 456 32 514 1,001 2,386 1,515 3,901

1984...... 212 613 417 751 453 54 531 999 2,499 1,530 4,029

1985...... 227 655 454 769 447 80 530 975 2,634 1,504 4,138

1986...... 241 711 506 794 442 102 531 942 2,796 1,473 4,269

1987...... 251 743 560 816 436 124 536 920 2,930 1,455 4,385

1988...... 255 764 606 833 431 142 543 891 3,030 1,433 4,464

1989...... 265 785 658 859 427 160 564 875 3,154 1,439 4,593

1990...... 309 819 731 900 432 172 589 865 3,363 1,454 4,817

1991...... 397 863 823 956 432 183 620 845 3,654 1,465 5,118

1992...... 556 949 932 1,029 440 189 647 824 4,095 1,471 5,566

1993...... 723 1,019 1,036 1,093 445 194 667 808 4,509 1,475 5,984

1994...... 841 1,060 1,130 1,146 457 196 669 797 4,830 1,466 6,296

1995...... 917 1,083 1,209 1,190 467 202 656 790 5,068 1,446 6,514

1996...... 955 1,087 1,252 1,229 472 205 634 778 5,201 1,413 6,614

1997...... 880 1,059 1,251 1,252 486 205 593 770 5,133 1,362 6,495

1998...... 887 1,056 1,292 1,298 492 209 564 768 5,234 1,332 6,566

1999...... 847 1,024 1,331 1,336 503 208 543 765 5,249 1,308 6,557

2000...... 847 1,011 1,360 1,373 513 209 525 764 5,312 1,289 6,602

Estimated:

2001...... 867 1,006 1,371 1,406 521 211 506 764 5,382 1,270 6,652

2002...... 896 1,005 1,380 1,452 529 215 491 766 5,478 1,257 6,735

2003...... 912 1,009 1,385 1,500 539 220 479 767 5,564 1,246 6,811

2004...... 927 1,013 1,388 1,553 548 225 471 765 5,654 1,235 6,889

2005...... 941 1,016 1,390 1,609 557 230 462 762 5,743 1,224 6,968

2006...... 954 1,023 1,386 1,669 568 232 461 751 5,833 1,213 7,045

2007...... 966 1,035 1,371 1,726 584 235 462 738 5,918 1,200 7,118

2008...... 981 1,049 1,352 1,780 601 236 464 723 5,999 1,187 7,186

2009...... 997 1,062 1,329 1,834 612 238 465 710 6,073 1,174 7,248

2010...... 1,016 1,073 1,305 1,887 621 241 466 697 6,143 1,163 7,305

2011...... 1,037 1,082 1,281 1,924 641 243 473 683 6,209 1,156 7,364

2012...... 1,055 1,091 1,261 1,948 670 247 483 670 6,271 1,154 7,425

2013...... 1,072 1,099 1,244 1,973 692 250 495 660 6,331 1,155 7,486

2014...... 1,087 1,109 1,229 1,995 715 254 509 651 6,389 1,160 7,550

2015...... 1,101 1,118 1,221 2,010 737 258 526 644 6,445 1,170 7,615

2016...... 1,112 1,129 1,218 2,017 761 262 544 639 6,499 1,183 7,682

2017...... 1,122 1,140 1,219 2,018 783 268 560 639 6,549 1,200 7,749

2018...... 1,130 1,152 1,219 2,016 806 274 578 642 6,597 1,220 7,817

2019...... 1,138 1,165 1,218 2,011 831 279 599 644 6,642 1,243 7,885

2020...... 1,146 1,175 1,217 2,006 858 282 624 646 6,684 1,270 7,955

2021...... 1,153 1,185 1,220 1,995 881 290 642 658 6,724 1,300 8,024

2022...... 1,160 1,195 1,229 1,975 900 302 655 678 6,761 1,333 8,094

2023...... 1,166 1,203 1,244 1,952 920 312 671 695 6,796 1,367 8,162

2024...... 1,171 1,209 1,261 1,926 938 321 689 714 6,827 1,403 8,230

2025...... 1,176 1,214 1,279 1,901 955 331 706 734 6,856 1,440 8,296
2001 SSI Annual Report

40

C. FEDERAL PAYMENTS UNDER SSI

In order to estimate future amounts of Federal expenditures under SSI, the projected Federal benefit rates

shown in table IV.A2 are first modified to reflect actual payment levels, taking into account historical and

projected levels of adjustments for other actual or deemed income. Combining these actual payment levels

with the projected numbers of persons receiving Federal SSI payments yields estimates of the amounts of

Federal SSI payments. Historical amounts of such payments on a calendar year basis are shown in table

IV.C1. For purposes of this presentation, these payment amounts are computed on a cash-flow basis consistent with the concepts used to define SSI obligations for the Federal Budget. As a result, for months

after January 1978, SSI payments due on the first of the month are tabulated in the previous month, if the

first of the month falls on a weekend or Federal holiday. 1

1 Total historical payments for 1974-77 agree with those presented in the Annual Statistical Supplement to the Social Security Bulletin. Total historical

payments for 1978-83 are estimated.

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

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

4 Partially estimated.

Notes:

1. Historical split among age groups is estimated.

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

Using this cash-flow concept causes these payments to differ from similar amounts shown in other Social

Security Administration publications, such as the Annual Statistical Supplement to the Social Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement are tabulated for

the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are

actually paid. In particular, since January 1 of each year is a Federal holiday, SSI payments due on

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

1 Public Law 95-216, the Social Security Amendments of 1977, enacted December 20, 1977, added a statutory requirement that SSI payments,

which are normally due on the first of the month, be delivered early when the normal delivery date falls on a Saturday, Sunday or Federal holiday.

When the first of the month falls on a weekend or Federal holiday, all payments due on that day are paid in the previous month. Payments presented

on a cash-flow basis are tabulated according to the month in which they are actually paid.

Table IV.C1.—SSI Federal Payments in Current Dollars,1 Calendar Years 1974-2001

[In millions]

Calendar 

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1974......... (2) (2) (2) (2) (2) (2) (2) (2) $2,050 $1,783 $3,833

1975......... (2) (2) (2) (2) (2) (2) (2) (2) 2,471 1,843 4,314

1976......... (2) (2) (2) (2) (2) (2) (2) (2) 2,727 1,785 4,512

1977......... (2) (2) (2) (2) (2) (2) (2) (2) 2,966 1,737 4,703

1978 3 ...... (2) (2) (2) (2) (2) (2) (2) (2) 3,449 1,847 5,296

1979......... (2) (2) (2) (2) (2) (2) (2) (2) 3,546 1,760 5,306

1980......... $397 $931 $731 $1,420 $544 $28 $642 $1,230 4,051 1,872 5,923

1981......... 458 1,079 821 1,542 654 32 643 1,320 4,586 1,963 6,549

1982......... 512 1,211 883 1,590 704 38 630 1,364 4,937 1,994 6,931

1983......... 574 1,372 985 1,704 774 58 624 1,440 5,466 2,064 7,530

1984......... 659 1,576 1,128 1,835 836 102 670 1,512 6,136 2,182 8,318

1985......... 736 1,709 1,250 1,924 833 160 699 1,499 6,611 2,198 8,809

1986......... 831 1,929 1,452 2,043 848 209 731 1,479 7,312 2,210 9,522

1987......... 900 2,081 1,618 2,157 846 259 765 1,444 7,860 2,210 10,069

1988......... 955 2,228 1,818 2,303 874 304 814 1,449 8,481 2,263 10,744

1989......... 1,025 2,431 2,048 2,481 936 366 881 1,479 9,286 2,361 11,647

1990......... 1,201 2,660 2,395 2,792 969 407 987 1,532 10,423 2,519 12,943

1991......... 1,678 3,129 2,966 3,305 1,060 463 1,169 1,637 12,601 2,806 15,407

1992......... 3,154 3,900 3,577 3,790 1,124 487 1,303 1,690 16,033 2,993 19,026

1993......... 3,909 4,465 4,164 4,188 1,208 513 1,471 1,759 18,447 3,230 21,677

1994......... 4,167 4,504 4,666 4,533 1,274 538 1,566 1,814 19,682 3,380 23,063

1995......... 4,657 4,777 5,155 4,896 1,357 565 1,599 1,900 21,407 3,499 24,906

1996......... 4,947 5,004 5,614 5,298 1,427 590 1,643 1,977 22,880 3,621 26,501

1997......... 4,920 5,031 5,564 5,410 1,505 614 1,586 2,046 23,044 3,632 26,675

1998......... 4,965 5,150 5,901 5,777 1,588 635 1,542 2,136 24,017 3,678 27,695

1999......... 4,835 5,132 6,185 6,037 1,660 654 1,503 2,206 24,503 3,709 28,212

2000......... 4,789 5,121 6,404 6,293 1,717 675 1,470 2,309 24,999 3,779 28,778

2001 4 ...... 5,083 5,355 6,792 6,819 1,830 709 1,466 2,438 26,588 3,904 30,492
41

2001 SSI Annual Report

the calendar year 2000 payment amounts shown in table IV.C1 reflect payments made in January-December, 2000, and include the payments due on January 1, 2001 (which were actually paid in December,

2000), but not the payments due on January 1, 2000 (which were actually paid in December, 1999). 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

1978-2001. Fiscal years prior to 1978 are omitted from table IV.C2 since historical SSI payment amounts

on a fiscal year basis for years prior to 1978 are not readily available. As with the calendar year figures,

these fiscal year amounts are shown on a cash-flow basis. Consequently, fiscal years 1979 and later may

contain 11, 12, or 13 months of payments, depending on whether October 1 of the current and succeeding

fiscal years falls on a weekend. 2 Fiscal year 1978 contains 13 months of payments.

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

2 Payment due on October 1 of fiscal year paid in previous fiscal year.

3 Partially estimated.

Notes:

1. Historical split among age groups 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 2000 payments include payments made from October 1, 1999 through September 30, 2000.

2 Generally, for fiscal years 1979 and later, the number of months of payments included in the fiscal year is:

.

 11 months if October 1 of the current, but not the succeeding fiscal year falls on a weekend;

.

 12 months if October 1 of both the current and succeeding fiscal years falls during the week (all payments made in the 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.

An exception to this general rule for payments due on Sunday, October 1, 2000, was enacted in Public Law 105-33, changing the payment day

from Friday, September 29 to Monday, October 2. This exception was eliminated by Public Law 106-246, enacted July 13, 2000.

Table IV.C2.—SSI Federal Payments in Current Dollars, Fiscal Years 1978-2001

[In millions]

Fiscal

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1978......... (1) (1) (1) (1) (1) (1) (1) (1) $3,386 $1,848 $5,234

1979 2 ...... (1) (1) (1) (1) (1) (1) (1) (1) 3,172 1,610 4,782

1980......... $372 $877 $698 $1,360 $506 $26 $629 $1,184 3,840 1,813 5,653

1981......... 442 1,039 797 1,508 625 31 647 1,307 4,442 1,954 6,396

1982......... 499 1,181 861 1,570 693 36 640 1,356 4,840 1,996 6,836

1983......... 596 1,416 1,024 1,783 806 56 660 1,510 5,680 2,170 7,850

1984 2 ...... 588 1,411 1,005 1,665 760 85 613 1,391 5,514 2,004 7,517

1985......... 713 1,662 1,215 1,895 828 145 691 1,502 6,459 2,193 8,652

1986......... 800 1,864 1,386 1,995 840 196 723 1,487 7,080 2,209 9,290

1987......... 880 2,030 1,565 2,119 845 242 755 1,448 7,681 2,203 9,884

1988......... 1,009 2,356 1,898 2,425 932 316 860 1,559 8,935 2,419 11,354

1989 2 ...... 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 2 ...... 1,039 2,378 2,115 2,479 876 362 879 1,394 9,247 2,273 11,521

1991......... 1,519 2,975 2,772 3,141 1,032 447 1,120 1,608 11,886 2,728 14,614

1992......... 2,684 3,621 3,398 3,653 1,099 476 1,269 1,680 14,932 2,949 17,881

1993......... 3,817 4,377 3,977 4,033 1,175 502 1,420 1,730 17,880 3,150 21,029

1994......... 4,328 4,771 4,866 4,756 1,344 569 1,659 1,930 20,635 3,588 24,223

1995 2...... 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 2 ...... 4,543 4,595 5,123 4,830 1,305 540 1,510 1,808 20,936 3,317 24,254

1997......... 4,933 5,004 5,529 5,340 1,478 606 1,602 2,027 22,890 3,629 26,519

1998......... 4,915 5,114 5,816 5,688 1,567 630 1,548 2,110 23,729 3,658 27,387

1999......... 4,901 5,152 6,123 5,975 1,638 648 1,506 2,180 24,438 3,685 28,123

2000......... 5,152 5,500 6,827 6,692 1,822 718 1,599 2,453 26,710 4,052 30,763

20012, 3 .... 4,607 4,900 6,196 6,180 1,673 652 1,357 2,237 24,208 3,594 27,802
2001 SSI Annual Report

42

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 1974-2000,

along with the full 25-year projection period, 2001-25. This same information is presented in graphical

form in figure IV.C1.

The future growth in the “constant dollar” estimates is attributable primarily to the underlying growth in

the U.S. population as shown in table IV.A1, since, after the spike in terminations in 1997, the SSI recipient population is projected to remain fairly constant as a percentage of the total U.S. population. However, a small part of the growth in estimated payments is due to some underlying real growth in the

assumed average SSI benefit. This results from an estimated increase in the disabled child recipients and a

decrease in aged recipients as a percentage of the total SSI recipient population, along with the fact that

disabled children typically have a much larger SSI benefit than do aged recipients. 1

1 Disabled children typically have higher monthly Federal payment amounts because they have, on average, much lower countable income than do

adult recipients.

Figure IV.C1.—SSI Federal Payments, by Age Group, in Constant 2001 Dollars, Calendar Years 1980-2025

[In billions]

$0

$10

$20

$30

$40

$50

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

Constant 2001 dollars -- billions 

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Estimated
43

2001 SSI Annual Report

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

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

Notes:

1. Historical split among age groups is estimated.

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

Table IV.C3.—SSI Federal Payments in Constant 2001 Dollars, Calendar Years 1974-2025

[In millions]

Calendar 

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974....... (1) (1) (1) (1) (1) (1) (1) (1) $7,190 $6,251 $13,441

1975....... (1) (1) (1) (1) (1) (1) (1) (1) 7,941 5,924 13,866

1976....... (1) (1) (1) (1) (1) (1) (1) (1) 8,291 5,427 13,718

1977....... (1) (1) (1) (1) (1) (1) (1) (1) 8,471 4,959 13,430

1978 2 .... (1) (1) (1) (1) (1) (1) (1) (1) 9,143 4,896 14,039

1979....... (1) (1) (1) (1) (1) (1) (1) (1) 8,436 4,187 12,623

1980....... $833 $1,953 $1,534 $2,978 $1,142 $58 $1,346 $2,580 8,498 3,927 12,424

1981....... 872 2,053 1,562 2,934 1,245 60 1,223 2,512 8,725 3,735 12,461

1982....... 920 2,173 1,584 2,853 1,263 68 1,130 2,448 8,861 3,578 12,439

1983....... 999 2,391 1,716 2,969 1,348 101 1,087 2,508 9,524 3,596 13,120

1984....... 1,110 2,653 1,899 3,089 1,407 171 1,128 2,545 10,330 3,674 14,003

1985....... 1,197 2,779 2,033 3,130 1,355 260 1,137 2,438 10,755 3,575 14,330

1986....... 1,331 3,089 2,325 3,271 1,357 335 1,170 2,368 11,709 3,538 15,247

1987....... 1,391 3,216 2,501 3,334 1,308 401 1,183 2,232 12,150 3,416 15,565

1988....... 1,419 3,312 2,702 3,422 1,299 452 1,210 2,153 12,606 3,364 15,970

1989....... 1,455 3,448 2,904 3,519 1,328 519 1,250 2,098 13,172 3,348 16,520

1990....... 1,619 3,586 3,229 3,764 1,306 548 1,331 2,065 14,052 3,396 17,448

1991....... 2,173 4,051 3,841 4,279 1,373 599 1,513 2,120 16,317 3,634 19,950

1992....... 3,968 4,908 4,501 4,770 1,414 613 1,639 2,127 20,175 3,766 23,941

1993....... 4,784 5,464 5,096 5,125 1,479 628 1,800 2,152 22,576 3,953 26,528

1994....... 4,977 5,380 5,573 5,415 1,522 643 1,871 2,166 23,508 4,037 27,545

1995....... 5,406 5,545 5,985 5,684 1,575 656 1,856 2,206 24,851 4,062 28,913

1996....... 5,583 5,647 6,335 5,978 1,611 666 1,855 2,231 25,820 4,086 29,906

1997....... 5,429 5,551 6,140 5,970 1,660 677 1,750 2,257 25,427 4,007 29,434

1998....... 5,406 5,608 6,426 6,291 1,729 692 1,679 2,326 26,152 4,005 30,157

1999....... 5,152 5,447 6,607 6,453 1,753 696 1,590 2,363 26,109 3,953 30,062

2000....... 4,931 5,272 6,594 6,479 1,768 695 1,513 2,378 25,739 3,891 29,630

Estimated:

2001....... 5,083 5,355 6,792 6,819 1,830 709 1,466 2,438 26,588 3,904 30,492

2002....... 5,301 5,373 6,893 7,066 1,859 725 1,418 2,456 27,217 3,873 31,090

2003....... 5,450 5,398 6,957 7,317 1,892 742 1,382 2,481 27,756 3,864 31,620

2004....... 5,551 5,416 6,998 7,580 1,926 760 1,357 2,497 28,230 3,854 32,083

2005....... 5,645 5,441 7,032 7,868 1,959 779 1,334 2,511 28,724 3,845 32,569

2006....... 5,735 5,492 7,037 8,175 2,005 789 1,332 2,497 29,233 3,829 33,062

2007....... 5,822 5,582 7,008 8,482 2,069 802 1,334 2,471 29,766 3,805 33,571

2008....... 5,911 5,673 6,937 8,761 2,132 809 1,338 2,435 30,223 3,773 33,996

2009....... 6,009 5,751 6,839 9,027 2,178 818 1,339 2,401 30,622 3,740 34,362

2010....... 6,134 5,825 6,739 9,294 2,218 831 1,341 2,371 31,041 3,712 34,753

2011....... 6,266 5,889 6,642 9,488 2,300 844 1,356 2,329 31,428 3,684 35,112

2012....... 6,396 5,951 6,564 9,628 2,411 859 1,380 2,294 31,808 3,674 35,482

2013....... 6,515 6,010 6,497 9,766 2,502 874 1,410 2,264 32,164 3,673 35,837

2014....... 6,621 6,067 6,436 9,871 2,589 890 1,446 2,236 32,474 3,682 36,156

2015....... 6,714 6,125 6,407 9,936 2,676 906 1,488 2,214 32,765 3,702 36,466

2016....... 6,805 6,196 6,413 9,979 2,770 924 1,538 2,203 33,086 3,741 36,828

2017....... 6,875 6,267 6,431 9,984 2,860 949 1,584 2,206 33,367 3,789 37,157

2018....... 6,940 6,351 6,448 9,978 2,956 973 1,632 2,217 33,646 3,849 37,494

2019....... 7,002 6,427 6,456 9,963 3,060 993 1,693 2,225 33,900 3,918 37,818

2020....... 7,061 6,495 6,467 9,943 3,168 1,010 1,762 2,236 34,144 3,998 38,142

2021....... 7,119 6,561 6,498 9,893 3,262 1,045 1,810 2,279 34,376 4,089 38,465

2022....... 7,171 6,621 6,561 9,800 3,344 1,091 1,844 2,345 34,589 4,189 38,778

2023....... 7,221 6,681 6,656 9,696 3,430 1,130 1,890 2,405 34,814 4,295 39,109

2024....... 7,266 6,727 6,761 9,584 3,512 1,169 1,938 2,469 35,019 4,407 39,426

2025....... 7,310 6,763 6,870 9,468 3,586 1,208 1,987 2,539 35,205 4,526 39,731
2001 SSI Annual Report

44

Although detailed projections of SSI State supplementary payments are not prepared, historical information on the amounts of such supplements is presented in tables IV.C4 and IV.C5. These amounts are consistent with those presented in the Annual Statistical Supplement to the Social Security Bulletin and are

shown only for the two broad recipient categories.

1 Split between recipient categories is estimated.

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

1 Data provided by individual States are partially estimated, and may be incomplete.

2 Includes amounts not distributed by recipient category.

3 Estimated.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-2000

[In millions]

Calendar year Aged

Blind or

disabled Total

1974 ....................................... $631 $632 $1,264

1975 ....................................... 674 729 1,403

1976 ....................................... 635 753 1,388

1977 ....................................... 627 804 1,431

1978 ....................................... 636 855 1,491

1979 ....................................... 661 928 1,590

1980 ....................................... 757 1,091 1,848

1981 ....................................... 731 1,108 1,839

1982 ....................................... 694 1,104 1,798

1983 ....................................... 645 1,066 1,711

1984 ....................................... 645 1,148 1,792

1985 ....................................... 694 1,278 1,973

1986 ....................................... 759 1,484 2,243

1987 ....................................... 849 1,714 2,563

1988 ....................................... 873 1,798 2,671

1989 ....................................... 954 2,001 2,955

1990 ....................................... 1,038 2,201 3,239

1991 ....................................... 999 2,232 3,231

1992 ....................................... 1,023 2,412 3,435

1993 ....................................... 934 2,336 3,270

1994 ....................................... 876 2,240 3,116

1995 ....................................... 864 2,253 3,118

1996 ....................................... 833 2,155 2,988

1997 ....................................... 824 2,090 2,913

1998 ....................................... 838 2,165 3,003

1999 ....................................... 921 2,380 3,301

2000 1..................................... 942 2,439 3,381

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2000

[In millions]

Calendar year Aged

Blind or

disabled Total 2

1974 ....................................... $89 $49 $149

1975 ....................................... 88 74 162

1976 ....................................... 88 77 166

1977 ....................................... 85 87 172

1978 ....................................... 91 88 180

1979 ....................................... 105 100 207

1980 ....................................... 117 106 226

1981 ....................................... 120 113 237

1982 ....................................... 125 119 276

1983 ....................................... 135 132 270

1984 ....................................... 141 152 299

1985 ....................................... 138 165 311

1986 ....................................... 147 185 340

1987 ....................................... 146 205 359

1988 ....................................... 150 224 381

1989 ....................................... 160 251 419

1990 ....................................... 177 281 466

1991 ....................................... 200 310 529

1992 ....................................... 216 323 550

1993 ....................................... 219 341 566

1994 ....................................... 225 354 585

1995 ....................................... 228 356 590

1996 ....................................... 225 307 539

1997 ....................................... 228 303 681

1998 ....................................... 259 429 808

1999 ....................................... 271 461 853

2000 3..................................... 283 488 893
45

2001 SSI Annual Report

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 after 2001 is projected to decline relative to

GDP.

Table IV.D1 and figure IV.D1 present a concise summary of Federal expenditures under the SSI program.

Following the initial higher costs of the program, total Federal SSI payments during the 1980s were a

fairly constant percentage of GDP (0.21 percent). During the early 1990s, SSI experienced rather rapid

growth (to 0.34 percent of GDP in 1996) due to a combination of factors discussed earlier in section IV.

Welfare reform legislation resulted in a drop in the cost of SSI as a percentage of GDP in 1997. As mentioned earlier, the estimates prepared for this report project total participation in the SSI program to remain

a stable proportion of the U.S. population. Federal SSI expenditures, after adjusting for growth in prices,

are projected to grow slightly faster than the population due to the estimated small amount of real growth

in the SSI average benefit, as discussed previously in section IV.C. Since the real growth projected for

GDP under the 2001 Trustees Report intermediate assumptions is greater than the combined effects of

increases in SSI participation and the estimated real increase in the SSI average benefit, Federal SSI payments are projected to decline as a percentage of GDP over the next 25 years, reaching 0.25 percent of

GDP by 2025.

Figure IV.D1.—SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1980-2025

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older 

Historical Estimated
2001 SSI Annual Report

46

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

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 1974-2025 

Calendar 

year

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

GDP

(In billions) 0-17 18-34 35-49 50-64 65-74

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ..... $1,501 (1) (1) (1) (1) (1) (1) (1) (1) 0.137 0.119 0.255

1975 ..... 1,635 (1) (1) (1) (1) (1) (1) (1) (1) .151 .113 .264

1976 ..... 1,824 (1) (1) (1) (1) (1) (1) (1) (1) .150 .098 .247

1977 ..... 2,031 (1) (1) (1) (1) (1) (1) (1) (1) .146 .085 .232

1978 ..... 2,296 (1) (1) (1) (1) (1) (1) (1) (1) .150 .080 .231

1979 ..... 2,566 (1) (1) (1) (1) (1) (1) (1) (1) .138 .069 .207

1980 ..... 2,796 0.014 0.033 0.026 0.051 0.019 0.001 0.023 0.044 .145 .067 .212

1981 ..... 3,131 .015 .034 .026 .049 .021 .001 .021 .042 .146 .063 .209

1982 ..... 3,259 .016 .037 .027 .049 .022 .001 .019 .042 .151 .061 .213

1983 ..... 3,535 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 ..... 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .212

1985 ..... 4,213 .017 .041 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 ..... 4,453 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .214

1987 ..... 4,743 .019 .044 .034 .045 .018 .005 .016 .030 .166 .047 .212

1988 ..... 5,108 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .210

1989 ..... 5,489 .019 .044 .037 .045 .017 .007 .016 .027 .169 .043 .212

1990 ..... 5,803 .021 .046 .041 .048 .017 .007 .017 .026 .180 .043 .223

1991 ..... 5,986 .028 .052 .050 .055 .018 .008 .020 .027 .211 .047 .257

1992 ..... 6,319 .050 .062 .057 .060 .018 .008 .021 .027 .254 .047 .301

1993 ..... 6,642 .059 .067 .063 .063 .018 .008 .022 .026 .278 .049 .326

1994 ..... 7,054 .059 .064 .066 .064 .018 .008 .022 .026 .279 .048 .327

1995 ..... 7,401 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 ..... 7,813 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 ..... 8,318 .059 .060 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 ..... 8,790 .056 .059 .067 .066 .018 .007 .018 .024 .273 .042 .315

1999 ..... 9,299 .052 .055 .067 .065 .018 .007 .016 .024 .263 .040 .303

2000 ..... 9,982 .048 .051 .064 .063 .017 .007 .015 .023 .250 .038 .288

Estimated:

2001 ..... 10,528 .048 .051 .065 .065 .017 .007 .014 .023 .253 .037 .290

2002 ..... 11,104 .049 .050 .064 .065 .017 .007 .013 .023 .252 .036 .288

2003 ..... 11,669 .049 .049 .063 .066 .017 .007 .013 .023 .252 .035 .287

2004 ..... 12,270 .049 .048 .062 .067 .017 .007 .012 .022 .251 .034 .286

2005 ..... 12,920 .049 .047 .061 .069 .017 .007 .012 .022 .251 .034 .284

2006 ..... 13,610 .049 .047 .060 .070 .017 .007 .011 .021 .250 .033 .283

2007 ..... 14,313 .049 .047 .059 .071 .017 .007 .011 .021 .250 .032 .282

2008 ..... 15,054 .049 .047 .057 .072 .018 .007 .011 .020 .249 .031 .281

2009 ..... 15,832 .049 .047 .055 .073 .018 .007 .011 .019 .248 .030 .278

2010 ..... 16,646 .049 .046 .054 .074 .018 .007 .011 .019 .247 .030 .277

2011 ..... 17,529 .049 .046 .052 .074 .018 .007 .011 .018 .245 .029 .274

2012 ..... 18,422 .049 .046 .050 .074 .019 .007 .011 .018 .244 .028 .272

2013 ..... 19,345 .049 .045 .049 .074 .019 .007 .011 .017 .243 .028 .271

2014 ..... 20,304 .049 .045 .048 .073 .019 .007 .011 .017 .241 .027 .269

2015 ..... 21,302 .049 .045 .047 .073 .020 .007 .011 .016 .240 .027 .267

2016 ..... 22,345 .049 .045 .046 .072 .020 .007 .011 .016 .238 .027 .265

2017 ..... 23,431 .049 .044 .046 .071 .020 .007 .011 .016 .237 .027 .264

2018 ..... 24,567 .049 .044 .045 .070 .021 .007 .011 .016 .235 .027 .262

2019 ..... 25,752 .048 .044 .045 .069 .021 .007 .012 .015 .234 .027 .261

2020 ..... 26,989 .048 .044 .044 .068 .022 .007 .012 .015 .232 .027 .259

2021 ..... 28,280 .048 .044 .044 .066 .022 .007 .012 .015 .230 .027 .258

2022 ..... 29,628 .047 .044 .043 .065 .022 .007 .012 .015 .228 .028 .256

2023 ..... 31,038 .047 .044 .043 .063 .022 .007 .012 .016 .227 .028 .255

2024 ..... 32,518 .047 .043 .043 .062 .023 .008 .012 .016 .225 .028 .253

2025 ..... 34,068 .046 .043 .043 .060 .023 .008 .013 .016 .223 .029 .252
47

2001 SSI Annual Report

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

AND BENEFICIARY SERVICES COSTS

The SSI program is administered by the Social Security Administration. Section 201(g)(1) of the Social

Security Act provides that administrative expenses for the SSI program, including Federal administration

of State supplementation payments, may be financed from the OASDI Trust Funds. The trust funds are

reimbursed from the General Fund of the Treasury for any such SSI administrative expenditures. These

reimbursements include adjustments for any interest losses the trust funds may have incurred as a result of

such expenditures. The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving SSA the responsibility for the SSI

program because of its existing field office network and its administrative and automated data processing

facilities. Because of the integration of the administration of the SSI and OASDI programs, it was desirable to fund them from a single source, with reimbursement to the trust funds based on a General Accounting Office-approved method of cost analysis of the respective expenses of the SSI and OASDI programs,

and a final settlement by the end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected administrative costs of the SSI program.

1 This activity funds the reimbursement to the OASI and DI Trust Funds from the General Fund of the

Treasury for the SSI program’s share of SSA’s administrative expenses.

2 Includes payments to State Vocational Rehabilitation (VR) agencies for VR services and payments for

referral and monitoring services for Drug Addicts and Alcoholics, which terminated effective

January, 1997.

3 Reflects a one-time payment to State VR agencies for prior year expenses.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2001

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1

Beneficiary

services 2

1978........................................................ $539 $31.6

1979........................................................ 611 57.0

1980........................................................ 668 33.1

1981........................................................ 717 37.3

1982........................................................ 780 12.0

1983........................................................ 846 8.0

1984........................................................ 864 3 84.0

1985........................................................ 956 3.0

1986........................................................ 1,023 7.2

1987........................................................ 977 9.5

1988........................................................ 976 12.9

1989........................................................ 1,052 20.0

1990........................................................ 1,075 28.3

1991........................................................ 1,230 33.1

1992........................................................ 1,426 36.0

1993........................................................ 1,468 32.3

1994........................................................ 1,780 33.8

1995........................................................ 1,978 48.2

1996........................................................ 1,953 71.8

1997........................................................ 2,055 77.3

1998........................................................ 2,304 46.0

1999........................................................ 2,493 52.0

2000........................................................ 2,321 53.7

2001 (estimated)..................................... 2,559 71.0
2001 SSI Annual Report

48

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of

correcting lenses, or with tunnel vision of 20 degrees or less. An individual

transferred from a State Aid to the Blind (AB) program is eligible if he/she

received such State aid in December 1973 and continues to meet the October

1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment

expected to result in death or that has lasted or can be expected to last for a

continuous period of at least 12 months. For a child under age 18, eligibility is

based on disability of severity comparable with that of an adult. An individual

transferred from a State Aid to the Permanently and Totally Disabled (APTD)

program to SSI is also eligible if he/she received such State aid in December

1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls

in December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973

must meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at

the substantial gainful activity level may continue to receive a special benefit

under section 1619 and retain eligibility for Medicaid under title XIX of the

Social Security Act. This special benefit status may continue as long as the

recipient has the disabling impairment and meets all nondisability SSI eligibility criteria. States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December 31, 1983. Beginning in January 1984, under a 1-year demonstration

project, this provision was continued for persons already eligible for either

regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments are

made permanent. The provisions were amended effective July 1, 1987, with

significant modifications to simplify administration and to allow free movement between regular SSI disability payments and either the special cash benefit or Medicaid eligibility under section 1619. The distinction between a

disabled person eligible for regular SSI payments and one eligible for 1619(a)

is that the latter has several months with gross earnings above the SGA level.

Previously, section 1619(a) status required completion of a trial work period

and the determination that the work was SGA.
49

2001 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

For individuals under age 18, the “comparable severity” standard is eliminated

and replaced with a requirement that a child be considered disabled if he/she has

a medically determinable impairment that results in “marked and severe functional limitations,” and meets the existing statutory duration requirement. The

law also eliminates references to “maladaptive behaviors” in the Listing of

Impairments for children, and discontinues the use of individualized functional

assessments for children.

SSI eligibility is prohibited for an individual in any month during which such an

individual is a fugitive felon, fleeing prosecution, or violating State or Federal

conditions of probation or parole. In addition, SSI eligibility is prohibited for 10

years for those convicted of fraudulently claiming residence to obtain benefits

simultaneously in two or more States. 1

2. Other Eligibility Provisions

a. Citizenship and Residence

1972

Public Law 92-603, 

enacted October 30

The individual must reside within one of the 50 States or the District of Columbia and be a citizen or an alien lawfully admitted for permanent residence or

permanently residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such

a month.

1976

Public Law 94-241, 

enacted March 24

Eligibility for SSI is extended to residents of the Northern Mariana Islands,

effective January 9, 1978.

1980

Public Law 96-265, 

enacted June 9

The income and resources of the immigration sponsors of aliens applying for

SSI are considered in determining eligibility for and the amount of payment.

After allowances for the needs of the sponsor and his/her family, the remainder

is deemed available for the support of the alien applicant for a 3-year period

after admission to the United States for permanent residence. This provision

does not apply to those who become blind or disabled after admission, to refugees, or to persons granted political asylum. (See section 2.g. for subsequent

changes to sponsor-to-alien deeming provisions.)

1989

Public Law 101-239, 

enacted December 19

SSI eligibility is continued for a disabled or blind child who was receiving SSI

benefits while living in the United States and is now living with a parent who is

a member of the U.S. Armed Forces assigned to permanent duty ashore outside

the United States, but not where the parent is stationed in Puerto Rico or the territories and possessions of the United States.

1993

Public Law 103-66, 

enacted August 10

Above provision made applicable where the parent is a member of the U.S.

Armed Forces and stationed in Puerto Rico or the territories and possessions of

the United States.

1This last provision was repealed in 1999 by Public Law 106-169 and replaced with a provision providing for

nonpayment of benefits for up to 24 months for making false or misleading statements regarding material

facts.
2001 SSI Annual Report

50

Act

1996

Public Law 104-193, 

enacted August 22

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless

they are in a “qualified alien” category and meet one of certain exceptions such

as lawful permanent residents who earn or can be credited with 40 qualifying

quarters of earnings, certain refugee type categories eligible for up to 5 years of

time limited eligibility, or active duty U.S. military or veterans and their spouses

and children. Extends eligibility for aliens receiving SSI as of August 22, 1996

(the enactment date of the law) for 1 year after the enactment date for those

aliens found ineligible under the new standards.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens (and their children) who have been battered or subjected to extreme cruelty by a spouse or parent or a member of the spouse’s or parent’s family living

in the same household.

1997

Public Law 105-18, 

enacted June 12

Extends eligibility for aliens receiving SSI as of August 22, 1996, until

September 30, 1997, for those found ineligible under the new alien standards of

Public Law 104-193.

Public Law 105-33, 

enacted August 5

Further amends Public Law 104-193 to add Cuban and Haitian entrants, and the

child of a parent who has been battered or subjected to extreme cruelty, to the

list of qualified aliens. Provides that Cuban and Haitian entrants and Amerasian

immigrants qualify for time limited eligibility, and increases the time limit from

5 to 7 years for all categories. Additional exceptions are added for qualified

aliens: (1) lawfully residing in the United States and receiving SSI benefits on

August 22, 1996; and (2) lawfully residing in the United States on August 22,

1996 and meeting the definition of blind or disabled in the Social Security Act.

Certain noncitizen American Indians are excepted from the alien nonpayment

provisions of Public Law 104-193.

Extends eligibility for “nonqualified aliens” receiving SSI as of August 22,

1996, until September 30, 1998.

1998

Public Law 105-306, 

enacted October 28

Permanently extends eligibility of all remaining “nonqualified aliens” who

were receiving SSI benefits when Public Law 104-193 was enacted on

August 22, 1996.

2000

Public Law 106-386, 

enacted October 28

Noncitizens, regardless of their immigration status, may be eligible for SSI as

refugees, if they are determined to be victims of “severe forms of trafficking in

persons.”

b. Other Benefits

1980

Public Law 96-272, 

enacted June 17

SSI applicants and recipients are not required as a condition of eligibility to

elect to receive Veterans Administration pensions under the Veterans and Survivors’ Pension Improvement Act of 1978 if the State of residence lacks a medically-needy program under title XIX.
51

2001 SSI Annual Report

Act

c. Drug Addiction and Alcoholism (DA&A)

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and

terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies and

Federal, State, or local government agencies in representative payee selection.

These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$56 (indexed to the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State is

required.

1996

Public Law 104-121, 

enacted March 29

An individual is not considered disabled if DA&A is a contributing factor material to a finding of disability.

Applies DA&A representative payee requirements enacted under Public Law

103-296 to disabled SSI recipients who have a DA&A condition and are incapable of managing their benefits. In addition, these recipients shall be referred to

the appropriate State agency administering the State plan for substance abuse

treatment.

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.
2001 SSI Annual Report

52

Act

1976

Public Law 94-566, 

enacted October 20

An inmate of a publicly operated community residence serving no more than 16

persons may, if otherwise eligible, receive SSI.

1983

Public Law 98-21, 

enacted April 20

Payments may be made to persons who are residents of public emergency shelters for the homeless for a period of up to 3 months in any 12-month period.

1986

Public Law 99-643, 

enacted November 10

Effective July 1, 1987, disabled or blind recipients who were receiving special

SSI payments or had special SSI recipient status under section 1619 in the

month preceding the first full month of institutionalization, may receive payments based on the full Federal benefit rate for the initial 2 full months of institutionalization, if they reside in certain public medical, psychiatric or Medicaid

facilities, or in private Medicaid facilities.

1987

Public Law 100-203, 

enacted December 22

Effective January 1, 1988, payments may be made to persons who are residents

of public emergency shelters for the homeless, for up to 6 months in a 9-month

period.

Effective July 1, 1988, continued payment of SSI benefits for up to 3 months is

permitted, at the rate that was applicable in the month prior to the first full

month of institutionalization, for individuals whose expected institutional stay

on admission is not likely to exceed 3 months, as certified by a physician, and

for whom the receipt of benefits is necessary to maintain living arrangements to

which they may return.

1996

Public Law 104-193, 

enacted August 22

Effective December 1996, institutionalized children under age 18 whose private

health insurance is making payments to the institution may receive no more than

$30 per month in Federal SSI.

e. Vocational Rehabilitation and Treatment

1972

Public Law 92-603, 

enacted October 30

Blind or disabled individuals receiving Federal SSI benefits who are under age

65, must be referred to the State agency providing services under the Vocational

Rehabilitation Act and must accept the services offered. States are reimbursed

for the cost of services.

1976

Public Law 94-566, 

enacted October 20

Blind or disabled children under age 16 must be referred to the State agency

administering crippled children’s services or to another agency designated by

the State. States are reimbursed for the cost of services.

Of funds provided for these services, at least 90 percent must be used for children under age 6 or for those who have never attended public schools.

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.
53

2001 SSI Annual Report

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 SSI recipients who

medically recover while participating in a State VR program to include SSI

recipients participating in a non-State VR program.

1999

Public Law 106-170, 

enacted December 17

Establishes a program which will provide SSI (and OASDI) disability beneficiaries with a ticket that can be used to obtain vocational rehabilitation services,

employment services, or other support services, from an employment network

of their choice.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994

Public Law 103-296, 

enacted August 15

During each of fiscal years 1996, 1997, and 1998, requires SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In

addition, during the same period, requires SSA to redetermine the SSI eligibility

of at least one-third of all 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

Repeals 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.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended

payment status.
2001 SSI Annual Report

54

Act

Requires eligibility redetermination for all childhood SSI recipients eligible for

the month before the month in which they attain age 18.

Requires redetermination of eligibility for children considered disabled based

on an individual functional assessment and/or consideration of maladaptive

behavior.

Requires the representative payee of a 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.

1999

Public Law 106-170, 

enacted December 17

Prohibits the initiation of a CDR during the period that a recipient is using a

“ticket” to work.

g. Deeming of Income and Resources

1972

Public Law 92-603, 

enacted October 30

Deeming occurs when the income and resources of certain family members living in the same household with the SSI recipient are considered in determining

the amount of the SSI payment. These family members are the ineligible spouse

of an adult recipient and the ineligible parents of a child recipient under age 21.

After deduction of personal allocations for the spouse (or parents) and for ineligible children in the home, and after application of income exclusions, any

remaining income of the spouse (or parents) is added to the income of the eligible person.

1980

Public Law 96-265, 

enacted June 9

Children aged 18 or older are not subject to parental deeming.

Sponsor’s income and resources deemed to an alien for 3 years.

1989

Public Law 101-239, 

enacted December 19

Disabled children receiving home care services under State Medicaid programs,

who are ineligible for SSI because of deeming of parental income, and who

received SSI benefits limited to $30 while in a medical treatment facility may

receive the $30 monthly allowance that would be payable if the recipient were

institutionalized.

1993

Public Law 103-152, 

enacted November 24

Sponsor-to-alien deeming period extended from 3 years to 5 years, effective

January 1, 1994, through September 30, 1996.

Considers an ineligible spouse or parent who is absent from the household due

to active military service to be a member of the household for deeming purposes.
55

2001 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Deeming of income and resources from an immigration sponsor to a noncitizen

continues until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor

signs a new legally enforceable affidavit of support.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add two exceptions to the sponsor-to-alien

deeming:

• Provides that if the noncitizen is indigent and would be unable to obtain

food and shelter without SSI benefits even after receiving support from the

sponsor, then only the amount of income and resources actually provided

by the sponsor will be counted for a 12-month period after a determination

of indigence; and

• Provides that in certain cases, deeming would not apply for a 12-month

period (with some options for extension) if the noncitizen (or his/her children) has been battered, or subjected to extreme cruelty by family members.

1997

Public Law 105-33, 

enacted August 5

Amends Public Law 104-208 to add an additional exception to sponsor-to-alien

deeming when the parent of a noncitizen has been battered or subjected to

extreme cruelty by family members.

3. Federal Benefit Payments

a. Windfall Offset

1980

Public Law 96-265, 

enacted June 9

Offset (by reduction of retroactive Social Security benefits) to prevent persons

whose initial OASDI payment is retroactive from receiving more in total benefits 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.

c. Retrospective Monthly Accounting

1981

Public Law 97-35, 

enacted August 13

Changes the method of computing the SSI benefit to one under which the benefit amount is computed on a monthly basis and is based on income and other

characteristics in the previous (or second previous) month.
2001 SSI Annual Report

56

Act

1984

Public Law 98-369, 

enacted July 18

Changes the method of computing the SSI benefit to persons receiving title II

payments. The effect of the increased title II income at the time of the cost-ofliving increase is not delayed as it otherwise would be.

1987

Public Law 100-203, 

enacted December 22

Provides an exception to retrospective monthly accounting so that amounts

received under Aid to Families With Dependent Children (AFDC), foster care,

refugee cash assistance, Cuban-Haitian entrant assistance, or general and child

welfare assistance provided by the Bureau of Indian Affairs are counted only in

the month received.

1993

Public Law 103-66, 

enacted August 10

Changes the method of computing the SSI benefit to persons receiving the value

of the one-third reduction. The effect of the increased value at the time of the

cost-of-living increase is not delayed as it otherwise would be. Effective January

1995.

d. Uncashed Checks

1981

Public Law 97-35, 

enacted August 13

States that have Federally-administered supplements to be credited their share of

SSI checks that remain unnegotiated for 180 days.

1987

Public Law 100-86, 

enacted August 10

SSI checks now unnegotiable after 1 year. States are credited their share of SSI

checks after 1 year rather than 180 days.

e. Rounding of Payment Amounts

1982

Public Law 97-248, 

enacted September 3

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent cost-of-living adjustments will be calculated on the

previous year’s benefit standard before rounding.

f. Penalties Resulting in Nonpayment of Benefits

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.

Provides for the nonpayment of OASDI and SSI benefits (6, 12 and 24 months,

respectively, for the first, second, and third or subsequent violations) for individuals found to have made a statement or representation of material fact for use in

determining eligibility for benefits that the individual knew, or should have

known, was false or misleading or omitted a material fact.
57

2001 SSI Annual Report

4. Federal Benefit Rates

Basic benefit standards are used in computing the amount of Federal SSI payments. Benefit levels differ

for individuals and couples living in households and for persons in Medicaid institutions. Individuals or

couples living in their own households receive the full Federal benefit. If an individual or couple is living

in another person’s household and receiving support and maintenance there, the Federal benefit is reduced

by one-third. The Federal benefit rates for persons in households are increased annually to reflect increases

in the cost of living. Legislation affecting the level of Federal benefit rates since the inception of the SSI

program are summarized in table V.A1.

1 For those in another person’s household receiving support and maintenance there, the Federal benefit rate is reduced by one-third. 2 For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.

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

4 Includes persons in private institutions whose care in not provided by Medicaid.

5 Public Law 93-66, enacted July 9, 1973.

6 Public Law 93-233, enacted December 31, 1973.

7 Public Law 93-368, enacted August 7, 1974.

8 Subject to automatic provisions, see table IV.A2.

9 Public Law 98-21, enacted April 20, 1983.

10 Public Law 100-203, enacted December 22, 1987.

Table V.A1.—Federal Benefit Rates Set by Legislation

Act Living arrangements 1

Amount 2

Individual Couple Conditions

19723 ....... Own household 4 $130.00 $195.00 Was to be effective January 1, 1974; superseded by 

Public Law 93-233.

19735 ....... — 140.00 210.00 Was to be effective January 1, 1974; superseded by 

Public Law 93-233.

19736 ....... — 140.00 210.00 Effective January 1, 1974.

19736 ....... — 146.00 219.00 Effective July 1, 1974.

19747 ....... — —— Mechanism established for providing cost-of-living 

adjustments coordinated with earlier legislation 

applying to OASDI cash benefits. SSI payments to 

be increased by the same percentage as OASDI 

benefits and at the same time.

— 8157.70 8236.60 Effective July 1, 1975.

19839 ....... — 304.30 456.40 Effective July 1, 1983 (general benefit increase).

— 8314.00 8472.00 Effective January 1, 1984.

19735 ....... 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.

19736 ....... — 70.00 — Effective January 1, 1974.

— 73.00 — Effective July 1, 1974.

19747 ....... — —— Mechanism established for providing cost-of-living 

adjustments.

— 878.90 — Effective July 1, 1975.

19839 ....... — 152.50 — Effective July 1, 1983 (general benefit increase).

— 8157.00 — Effective January 1, 1984.

19723 ....... 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).

198710 ..... — 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).
2001 SSI Annual Report

58

Act 5. Exclusions from Income

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

The first $60 of earned or unearned income per calendar quarter for an individual or couple; the next $195 and one-half the remainder of quarterly earned

income. Unearned income includes Social Security benefits, other government

or private pensions, veterans’ benefits, and workers’ compensation.

1981

Public Law 97-35, 

enacted August 13

The first $20 of earned or unearned income per month for an individual or couple; the next $65 and one-half the remainder of monthly earned income.

Unearned income includes Social Security benefits, other government or private

pensions, veterans’ benefits, and workers’ compensation.

2000

Public Law 106-554, 

enacted December 21

Earnings of persons defined as Social Security statutory employees are treated

as self-employment income for SSI purposes.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Any amount of tax rebate issued to an individual by any public agency that is

based on either real property or food purchase taxes.

Grants, scholarships, and fellowships used to pay tuition and fees at an educational institution.

Income required for achieving an approved self-support plan for blind or disabled persons.

Work expenses of blind persons.

For blind persons transferred from State programs to SSI, income exclusions

equal to the maximum amount permitted as of October 1972 under the State

programs.

Irregularly or infrequently received income totaling $60 or less of unearned

income and $30 of earned income in a calendar quarter.

Payment for foster care of ineligible child residing in recipient’s home through

placement by a public or private nonprofit child care agency.

One-third of any payment received from an absent parent for the support of a

child eligible for SSI.

Certain earnings of a blind or disabled child under age 22 regularly attending an

educational institution.

State or local government cash payments based on need and designed to supplement SSI payments.

1976

Public Law 94-331, 

enacted June 30

Disaster assistance from income for 9 months and application of one-third

reduction for 6 months for certain victims of disasters.

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.
59

2001 SSI Annual Report

Act

1977

Public Law 95-113, 

enacted September 29

Food stamps, Federally donated food, and the value of free or reduced price

food for women and children under the Child Nutrition Act and National School

Lunch Act.

Public Law 95-171, 

enacted November 12

Provisions for exclusions for support and maintenance under the Disaster Relief

and Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1, 1978.

1980

Public Law 96-222, 

enacted April 1

Earned income tax credit treated as earned income (temporarily excluded from

1975 through 1980).

Public Law 96-265, 

enacted June 9

Remunerations received in sheltered workshops and work activity centers are

considered earned income and qualify for earned income exclusions.

Impairment-related work expenses paid by the individual (including cost for

attendant care, medical equipment, drugs, and services necessary to control an

impairment) are deducted from earnings when determining if an individual is

engaging in substantial gainful activity. Impairment-related work expenses are

excluded in calculating income for benefit purposes if initial eligibility for benefits exists on the basis of countable income without applying this exclusion.

1981

Public Law 97-35, 

enacted August 13

Modifies provision under which irregularly or infrequently received income is

excluded to conform to change from quarterly to monthly accounting; amounts

excludable: $20 or less of unearned income and $10 of earned income in a

month.

1982

Public Law 97-377, 

enacted December 21

From December 18, 1982, to September 30, 1983, certain home energy assistance payments are excluded if a State agency certified that they are based on

need.

1983

Public Law 97-424, 

enacted January 6

Support or maintenance assistance (including home energy assistance) provided

in kind by a nonprofit organization or in cash or in kind by certain providers of

home energy is excluded if the State determines that the assistance is based on

need. Provision is applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that the assistance is based on need. Provision is applicable through June

1985.

1984

Public Law 98-369, 

enacted July 18

The 1983 provisions for support and maintenance and home energy assistance

continue to October 1, 1987.

1986

Public Law 99-498, 

enacted October 17

Educational assistance used for educational expenses under the Higher Education Act of 1965 as amended.
2001 SSI Annual Report

60

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.

Redefines as earned income, royalties earned in connection with any publication

of the individual’s work, and honoraria received for services rendered (previously defined as unearned income).

1993

Public Law 103-66, 

enacted August 10

Hostile fire pay to members of the uniformed services.

Payments received as State or local government relocation assistance made permanent.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.
61

2001 SSI Annual Report

Act

2000

Public Law 106-554, 

enacted December 21

Interest on funds deposited in an Individual Development Account.

Any adjustments made to prior payments from other Federal programs to

account for the error in the computation of the Consumer Price Index during

1999.

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.

1984

Public Law 98-369, 

enacted July 18

Limit on countable resources raised by $100 a year for individuals and $150 a

year for couples, beginning in calendar year 1985 through 1989. The respective

limits would become $2,000 for an individual and $3,000 for a couple in 1989

and thereafter.

1999

Public Law 106-169, 

enacted December 14

Includes generally in the countable resources of an individual the assets of a

trust which could be used for the benefit of the individual or spouse.

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

A home of reasonable value—established by regulation as not exceeding a fairmarket value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding

a market value of $1,200.

An automobile may be excluded, regardless of value, if the individual’s household uses it for employment or medical treatment, or if it is modified to be operated by or for transportation of a handicapped person.

Life insurance with face value of $1,500 or less.

1976

Public Law 94-569, 

enacted October 20

The recipient’s home, regardless of value, is excluded from consideration in

determining resources.

1977

Public Law 95-171, 

enacted November 12

Assistance received under the Disaster Relief and Emergency Assistance Act of

1974 for 9 months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market value; personal goods and household effects increased to $2,000 of

equity value.
2001 SSI Annual Report

62

Act

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.

1985 Regulations permit exclusion, regardless of value, of an automobile needed for

essential transportation or modified for a handicapped person. The $4,500 current market value limit applies only if no automobile could be excluded based

on the nature of its use.

1987

Public Law 100-203, 

enacted December 22

Provides for suspension of the 1980 transfer of assets provision, in any month

that it is determined that undue hardship would result.

Real property that cannot be sold 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 (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.
63

2001 SSI Annual Report

Act

1989

Public Law 101-239, 

enacted December 19

Specifies that no limitation can be placed on property essential to self-support

used in a trade or business, or by an individual as an employee (including the

tools of a tradesperson and the machinery and livestock of a farmer).

Payments from the Agent Orange Settlement.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit excluded for the month following the month the credit

is received.

Payments received from a State-administered fund established to aid victims of

crime excluded for a 9-month period. Individual not required to file for such

benefits.

Payments received as State or local government relocation assistance

excluded for a 9-month period. (The provision expired 3 years after its effective

date.)

Payments received under the Radiation Exposure Compensation Act.

1993

Public Law 103-66, 

enacted August 10

Makes permanent the 9-month exclusion of payments received as State or local

government relocation assistance.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.

1996

Public Law 104-193, 

enacted August 22

Dedicated financial institution accounts required to be established for large pastdue benefits for disabled individuals under age 18 with a representative payee.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.

2000

Public Law 106-554, 

enacted December 21

Funds deposited by an individual in an Individual Development Account and the

interest on those funds.

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.
2001 SSI Annual Report

64

Act

1976

Public Law 94-569, 

enacted October 20

Presumptive payment provision was extended to persons applying on the basis

of blindness.

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.

b. Emergency Advance Payments

1972

Public Law 92-603, 

enacted October 30

Any applicant who can be presumed to meet the criteria of eligibility, but has

not yet been determined eligible, and who is faced with a financial emergency

may receive an immediate cash advance of up to $100.

1987

Public Law 100-203, 

enacted December 22

Increases the maximum emergency advance payment amount to the maximum

amount of the regular Federal SSI monthly benefit rate, plus, if any, the Federally-administered State supplementary payment.

1996

Public Law 104-193, 

enacted August 22

Applicants who have a financial emergency may receive an emergency advance

payment in the month of application, which, effective with this law, is always

prior to the first month of eligibility. These advance payments are recouped by

proportional reductions in the recipient’s first 6 months of SSI benefits.

c. Interim Assistance Reimbursement

1974

Public Law 93-368, 

enacted August 7

SSA may enter into agreements with the States to repay them directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The repayment is made from the first check due to the individual. This

legislation expires June 30, 1976.

1976

Public Law 94-365, 

enacted July 14

The authority to repay the State for interim assistance is made permanent.

1987

Public Law 100-203, 

enacted December 22

Extends interim assistance reimbursement to situations in which payments are

made by States or political subdivisions to persons whose SSI payments were

suspended or terminated and who subsequently are found to be eligible for such

benefits. Also clarifies that the payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim

period.

8. Medicaid Eligibility

1972

Public Law 92-603, 

enacted October 30

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the

State Medicaid plan in effect on January 1, 1972.

States can accept SSA determination of eligibility, or make their own determination.

1976

Public Law 94-566, 

enacted October 20

Preserves the Medicaid eligibility of recipients who become ineligible for cash

SSI payments due to the cost-of-living increases in Social Security benefits.
65

2001 SSI Annual Report

Act

1980

Public Law 96-265, 

enacted June 9

Blind or disabled recipients under age 65 no longer eligible for either regular or

special SSI payments because of their earnings may retain SSI recipient status

for Medicaid eligibility purposes under the following conditions: (1) they continue to have the disabling impairment, (2) they meet all nondisability eligibility

criteria except for earned income, (3) they would be seriously inhibited from

continuing employment without Medicaid services, and (4) their earnings are

insufficient to provide a reasonable equivalent of SSI payments and Medicaid.

In States that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid benefits depends on the State’s specific eligibility and program requirements.

The Medicaid provision of the 1980 legislation was in effect from January 1,

1981, through December 31, 1983. Under a 1-year demonstration project,

beginning January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.

1984

Public Law 98-460, 

enacted October 9

Medicaid provision of 1980 legislation extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-272, 

enacted April 7

Restores Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI when their title II benefits increased in 1984 because of a change in

the Social Security disabled widow(er)s benefits reduction factor.

Public Law 99-643, 

enacted November 10

The SSI recipient status for Medicaid eligibility provision of the 1980 amendments is made permanent.

Effective July 1, 1987, certain expenses are excluded from earnings when determining sufficiency of earnings to establish SSI recipient status eligibility for

Medicaid purposes:

• Impairment-related work expenses of disabled persons,

• Work expenses of blind persons,

• Income required for achieving an approved self-support plan, and

• The value of publicly funded attendant care services.

Effective July 1, 1987, preserves the Medicaid eligibility of recipients who

become ineligible for SSI payments because of entitlement to, or an increase in,

Social Security disabled adult child benefits on or after the effective date.

Effective July 1, 1987, requires all States to provide Medicaid coverage for

recipients in special SSI status (either receiving special SSI payments or in the

special recipient status described for 1980) if they received Medicaid coverage

the month before special SSI status.

1987

Public Law 100-203, 

enacted December 22

Effective July 1, 1988, restores or preserves the Medicaid eligibility of persons

aged 60 or older who are eligible for Social Security benefits as widows or widowers (but not eligible for Medicare) and who become ineligible for SSI payments or State supplementation because of the receipt of old-age or survivors

insurance benefits under Social Security.
2001 SSI Annual Report

66

Act

1990

Public Law 101-508, 

enacted November 5

Age limit for retention of SSI recipient status for Medicaid eligibility purposes

is (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.

1997

Public Law 105-33, 

enacted August 5

Requires States to continue Medicaid coverage for disabled children who were

receiving SSI payments as of August 22, 1996 and would have continued to be

eligible for such payments except that their eligibility terminated because they

did not meet the revised SSI childhood disability standard established under

Public Law 104-193.

9. State Supplementation

1972

Public Law 92-603, 

enacted October 30

States are given the option of providing supplementary payments both to recipients transferred from the State program and to those newly eligible for SSI.

States may either administer the payments themselves or have the Social Security Administration make payments on their behalf. When State supplementary

payments are Federally-administered, the Social Security Administration makes

eligibility and payment determinations for the State and assumes administrative

costs.

“Hold harmless” protection, which limits a State’s fiscal liability to its share of

OAA, AB, and APTD expenditures for calendar year 1972, is provided to States

electing Federal administration of their supplementary plans. This provision

applies only to supplementary payments that do not, on the average, exceed a

State’s “adjusted payment level.” (The adjusted payment level is the average of

the payments that individuals with no other income received in January 1972; it

may include the bonus value of food stamps. Adjustments are provided for payments that had been below State standards.)

1973

Public Law 93-66, 

enacted July 9

Provision is 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 costof-living increase, such an increase will be excluded in calculating the “hold

harmless” amount.

Requires States to maintain State supplementation payments at the level of

December 1976 (“maintenance of payments”) or to continue to pay in supplements the same total annual amounts (“maintenance of expenditures”) when the

Federal SSI payment level is increased and thereby pass through any increases

in Federal benefits without reducing State supplements.

1982

Public Law 97-248, 

enacted September 3

Begins a 3-year phase out of “hold harmless” protection. Effective with fiscal

year 1985, Wisconsin and Hawaii (the only remaining “hold harmless” States)

assumed the full cost of their supplementary payments.
67

2001 SSI Annual Report

Act

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.

1987

Public Law 100-203, 

enacted December 22

Provides for Federal administration of State supplements to residents of medical

institutions.

Provides for required pass through of $5 increase in Federal rate for persons

whose care in institutions is paid in substantial part by Medicaid.

1993

Public Law 103-66, 

enacted August 10

Requires States to pay fees for Federal administration of their State supplementation payments. The fees are $1.67 for each monthly supplementary payment in

fiscal year 1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year 1996. Fees

for subsequent fiscal years will be $5.00 or another amount determined by the

Commissioner to be appropriate. The Commissioner may charge the States

additional fees for services they request that are beyond the level customarily

provided in administering State supplementary payments.

1997

Public Law 105-33, 

enacted August 5

Revises the schedule of per-payment fees for Federal administration of State

supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002. The scheduled

fees for fiscal years 1999, 2000, and 2001, are: $7.60; $7.80; and $8.10, respectively.

1999

Public Law 106-170, 

enacted December 17

A State which has an agreement with SSA to administer its supplementation

payments, must remit both payments and fees prior to the SSI payment date.

2000

Public Law 106-554, 

enacted December 21

Changes the effective date of above provision from 2009 to 2001.

10. Overpayment Recovery

1984

Public Law 98-369, 

enacted July 18

Limits the rate of recovering overpayments from monthly payments to the lesser

of: (1) the monthly payment, or (2) 10 percent of a recipient’s monthly income.

Permits a higher or lower adjustment at the request of the recipient subject to the

agreement of the Commissioner. The limit does not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part

of the recipient or spouse in connection with the overpayment.

Waives recovery of certain overpayments due to amount of excess resources of

$50 or less.

Provides for the recovery of overpayments from tax refunds.

1988

Public Law 100-485, 

enacted October 13

Extends the authority to recover overpayments from tax refunds. 
2001 SSI Annual Report

68

Act

1998

Public Law 105-306, 

enacted October 28

Authorizes SSA to collect SSI overpayments by offsetting Social Security benefits, with a maximum monthly offset of no more than 10 percent of the Social

Security benefit.

1999

Public Law 106-169, 

enacted December 14

Makes representative payees liable for an SSI overpayment caused by a payment

made to a recipient who has died, and requires SSA to establish an overpayment

control record under the representative payee’s Social Security number. 

Requires SSA to recover SSI overpayments from SSI lump-sum amounts by

withholding at least 50 percent of the lump-sum payment or the amount of the

overpayment, whichever is less.

Extends all of the debt collection authorities currently available for the collection of overpayments under the OASDI program to the SSI program.
69

2001 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 $1,290 per month but not more than $5,200 in a calendar year received by a blind or disabled

child who is a student regularly attending school; 

• Any portion of the monthly $20 exclusion for unearned income that has not been used; 

• $65 of earned income in a month; 

• Amounts used to pay impairment-related work expenses if a recipient is disabled (but not blind) and

under age 65 or is disabled (but not blind) and receiving SSI (or disability payments under a former

State plan) before age 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 Federal Regulations Appendix to Subpart K 20 CFR

416. 

2. Unearned Income Exclusions

• Any public agency’s refund of taxes on real property or food; 

• Assistance based on need which is wholly funded by a State or one of its political subdivisions.

This includes State supplementation of Federal SSI benefits but does not include payments under a

Federal/State grant program such as Temporary Assistance for Needy Families (TANF); 

• Any portion of a grant, scholarship or fellowship used for paying tuition, fees or other necessary

educational expenses. Portions set aside for food, clothing or shelter are counted; 

• Food raised by a household if it is consumed by that household; 

• Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided under any Federal statute because of a catastrophe which the President of the United States

declares to be a major disaster; 

• Up to $20 of unearned income in a month if it is infrequent or irregular; that is, if a type of unearned

income is received only once during a calendar quarter from a single source or if it cannot reasonably be expected; 
2001 SSI Annual Report

70

• Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or

disabled individual in the month before he/she attained age 65; 

• Periodic payments made by a State under a program established before July 1, 1973, and based

solely on the recipient’s length of residence and attainment of age 65; 

• Payments for providing foster care to an ineligible child who was placed in the recipient’s home by

a public or private nonprofit child placement or child care agency; 

• Any interest earned on excluded burial funds and any appreciation in the value of an excluded

burial arrangement which are left to accumulate and become part of the separately identifiable

burial fund; 

• Certain support and maintenance assistance provided in the form of home energy assistance; 

• One-third of support payments made by an absent parent if the recipient is a child; 

• The first $20 of unearned income in a month other than income in the form of in-kind support and

maintenance received in the household of another and income based on need; 

• The value of any assistance paid with respect to a dwelling unit under the United States Housing

Act of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act

of 1965, title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959; 

• Any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement (after April 1, 1990); 

• The value of any commercial transportation ticket, for travel by a recipient or his/her spouse among

the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa

and the Northern Mariana Islands, which is received as a gift and is not converted to cash;

• Payments received from a fund established by a State to aid victims of crime;

• Relocation assistance provided by a State or local government that is comparable to assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies

Act of 1970;

• Hostile fire pay received from one of the uniformed services pursuant to 37 U.S.C. 310;

• Interest or other earnings on a dedicated account excluded from resources;

• In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

• Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

• TANF funds made available to an SSI recipient as part of an Individual Development Account

(IDA);

• Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the “Assets for Independence Act” IDA demonstration project and

interest earned on these deposits; and

• Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K

20 CFR 416.
71

2001 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; 

• 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);

• Dedicated financial institution accounts for disabled children;

• In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

• Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

• TANF funds made available to an SSI recipient as part of an IDA;

• Amounts deposited in an IDA by a participating individual or a sponsoring nonprofit organization

or State or local government under the “Assets for Independence Act” IDA demonstration project

and interest earned on these deposits;

• Certain trusts (e.g., those established by will or certain Medicaid trusts that will repay the State,

upon the death of the beneficiary, for the costs of medical assistance provided to that individual);

and

• Payments or benefits provided under a Federal statute other than title XVI of the Social Security

Act where exclusion is provided by such statute.
2001 SSI Annual Report

72

C. HISTORICAL ALLOWANCE DATA

At the end of 2000, 80 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. Until recently, all appeals were initiated at the DDS level

with a request for reconsideration of that initial denial. Persons denied at the reconsideration level could

then apply to the Office of Hearings and Appeals (OHA) for a hearing before an Administrative Law

Judge (ALJ), and if dissatisfied with the hearing decision could request a review by the Appeals Council.

Those dissatisfied with the Appeals Council’s action could seek further relief via the Federal court system.

This appeals process is still in effect for the majority of new applicants. However, in recent years SSA has

conducted small pilots testing revisions to this process and introduced a modification of this process in 10

States for applications filed October 1, 1999 and later. Under this revised process appeals of initial denials

are made directly to OHA, thereby eliminating the reconsideration step. The options for appeal beyond the

OHA level are unchanged.

Such a process of application and appeal can, in some cases, span several years. However, before 1993, the

only data available on the disability determination process resided in files compiled at each separate stage

of the process and only captured various point-in-time snapshots. A complete picture of the disability

determination process can be fully understood only by compiling a longitudinal database from administrative records at all levels of appeal. Beginning in 1993, such a longitudinal database (the “Disability

Research File”) was constructed by 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 database, some problems were encountered due to inconsistencies in the data collected

from all the respective levels of appeal. The following sections present some additional details and qualifications essential to a complete understanding of the resulting data. Following these technical notes are

tables based on the Disability Research File which show the latest available summary of results on disability determinations under title XVI.

1. Technical Notes on the Disability Research File

Methods used to build the title XVI Disability Research File—The “base” file for the title XVI research file

is the Supplemental Security Record (SSR). This “base” file is matched against records from various other

administrative sources, including transactions from the disability determination (SSA-831) files, Social

Security number identification records and earnings data, and OHA case control data. 

The process used to build this research file is cumbersome, involving more than 170 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 2000.

Methods used for estimating results (through February 2001) for claims filed in 2000—Although decision

counts are available for 2000 filers (from many of the “source” files), those counts do not translate directly

into the claims/appeals counts included in the following tables, due to the consolidation of multiple transactions (and application of claims-based tolerance rules) which occurs when the research file is built.

To prepare preliminary estimates of results (through February 2001) for 2000 filers, we started from the

latest available transaction data, such as the SSA-831 data, and took into account recent years’ experience
73

2001 SSI Annual Report

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 2001, whereas the final research files will reflect information through June 2001. Actual data for 2000

will be available to replace these estimates in the 2002 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

• Data for 1988-99 filers are as of June 2000. Results for those years’ filers have been updated to

include OHA results through August 2000. 

• Data for 2000 filers are preliminary estimates as of February 2001, and reflect larger numbers of

claims still pending. February 2001 data on number of claims appealed may be too low because larger

numbers of claimants are still within the period allowed for filing an appeal (i.e., larger numbers of

recently denied claimants who have not yet filed an appeal may appeal before the time limit runs out). 

• Remaining appeals will affect the results. Since allowances are generally processed more quickly than

denials, we expect that the percent allowed will ultimately be lower as all cases are processed. 

• Computations of overall allowance rates exclude cases which have been appealed and for which a

decision is pending.

• In certain pilot activities and under the revised process introduced October 1, 1999 in 10 States, initial

denials can be appealed directly to OHA without a separate reconsideration step. As a result the

appeals of initial denials shown in these tables include cases which will not receive a decision at the

reconsideration level.
2001 SSI Annual Report

74

1 Data for claims filed in 1988-99 reflect results as of June 2000. The numbers of total claims filed for 1998 and 1999 are subject to change. Data for

claims filed in 2000 are preliminary estimates as of February 2001. The ultimate number of allowances and denials are subject to change until all initial

decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown will ultimately be lower as all cases

are processed. This is true since allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

10 Percentage of initial decisions excluding appealed cases pending decisions.

11 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 of initial denials

Number Percent 2 Number3 Percent 4

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 1,288,331 — 415,336 32.2 872,995 383,669 43.9

1992 1,415,624 — 436,888 30.9 978,736 433,244 44.3

1993 1,503,278 — 416,300 27.7 1,086,978 485,166 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 482,533 44.6

1995 1,318,416 — 323,084 24.5 995,332 439,166 44.1

1996 1,247,926 — 305,351 24.5 942,575 406,425 43.1

1997 1,110,898 — 292,839 26.4 818,059 357,999 43.8

1998 1,107,428 — 317,520 28.7 789,908 341,677 43.3

1999 1,099,795 14,643 316,398 29.2 768,754 310,346 40.4

2000 1,189,500 196,000 332,900 33.5 660,600 198,980 30.1

Calendar year 

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration 

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,794 68.3 — 139,685 63.0 82,109

1992 — 58,819 13.6 374,425 260,363 69.5 — 158,999 61.1 101,364

1993 — 57,938 11.9 427,228 297,164 69.6 3,301 169,992 57.8 123,871

1994 — 55,822 11.6 426,711 295,714 69.3 4,316 163,621 56.2 127,777

1995 — 51,697 11.8 387,469 266,241 68.7 6,237 141,725 54.5 118,279

1996 — 49,263 12.1 357,162 244,209 68.4 12,342 129,161 55.7 102,706

1997 — 47,573 13.4 306,561 215,414 70.3 24,587 114,202 58.7 80,490

1998 — 49,049 14.4 292,142 202,966 69.5 44,991 98,624 62.2 59,837

1999 24,015 32,998 12.1 239,420 162,941 68.1 113,749 40,091 63.5 23,014

2000 42,300 18,800 14.5 111,000 46,460 41.9 65,860 5,085 68.0 2,395

Calendar year 

of filing 

Selected summary totals

Allowances at all levels Allowances at all appeal levels Denials after all appeals

Number Percent 10 Number Percent 11 Number Percent 11

1988 393,003 41.5 120,799 17.9 553,600 82.1

1989 425,718 43.9 133,674 19.7 543,500 80.3

1990 508,976 46.3 161,153 21.4 590,829 78.6

1991 614,178 47.7 198,842 22.8 674,153 77.2

1992 654,706 46.2 217,818 22.3 760,918 77.7

1993 644,230 42.9 227,930 21.0 855,747 78.7

1994 573,438 40.0 219,443 20.3 859,204 79.3

1995 516,506 39.4 193,422 19.4 795,673 79.9

1996 483,775 39.2 178,424 18.9 751,809 79.8

1997 454,614 41.8 161,775 19.8 631,697 77.2

1998 465,193 43.8 147,673 18.7 597,244 75.6

1999 389,487 41.1 73,089 9.5 557,901 72.6

2000 356,785 40.3 23,885 3.6 528,555 80.0
75

2001 SSI Annual Report

1 Data for claims filed in 1991-99 reflect results as of June 2000. The numbers of total claims filed for 1998 and 1999 are subject to change. Data for

claims filed in 2000 are preliminary estimates as of February 2001. The ultimate number of allowances and denials are subject to change until all initial

decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown will ultimately be lower as all cases

are processed. This is true since allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

10 Percentage of initial decisions excluding appealed cases pending decisions. 11 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 of initial denials

Number Percent 2 Number3 Percent 4

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 487,730 — 144,231 29.6 343,499 86,841 25.3

1996 453,473 — 127,416 28.1 326,057 75,013 23.0

1997 332,032 — 106,528 32.1 225,504 51,496 22.8

1998 335,903 — 123,222 36.7 212,681 50,111 23.6

1999 342,458 4,377 127,417 37.7 210,664 46,588 22.1

2000 354,500 61,900 127,300 43.5 165,300 27,990 16.9

Calendar year 

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration 

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,763 49.6 — 7,521 38.1 12,242

1993 — 11,338 14.9 64,629 31,499 48.7 390 10,618 34.1 20,491

1994 — 11,332 12.3 80,761 38,680 47.9 508 12,886 33.8 25,286

1995 — 10,287 11.8 76,554 35,776 46.7 732 10,759 30.7 24,285

1996 — 9,355 12.5 65,658 28,070 42.8 1,200 8,606 32.0 18,264

1997 — 8,266 16.2 42,705 19,028 44.6 2,131 6,643 38.1 10,779

1998 — 7,987 16.0 42,052 18,580 44.2 4,430 5,918 41.6 8,304

1999 3,521 5,973 14.8 34,361 15,178 44.2 12,140 2,351 40.7 3,420

2000 5,500 2,700 15.5 14,700 3,810 25.9 7,940 360 37.5 600

Calendar year 

of filing 

Selected summary totals

Allowances at all levels Allowances at all appeal levels Denials after all appeals

Number Percent 10 Number Percent 11 Number Percent 11

1991 157,709 62.8 9,489 9.2 93,253 90.8

1992 206,063 55.2 16,984 9.2 166,908 90.8

1993 234,224 47.2 21,956 7.7 261,517 92.1

1994 196,437 37.5 24,218 6.9 328,068 93.0

1995 165,277 33.9 21,046 6.1 321,721 93.7

1996 145,377 32.1 17,961 5.5 306,896 94.1

1997 121,437 36.8 14,909 6.6 208,464 92.4

1998 137,127 41.4 13,905 6.5 194,346 91.4

1999 135,741 42.1 8,324 4.0 186,679 88.6

2000 130,360 46.7 3,060 1.9 148,800 90.0
2001 SSI Annual Report

76

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a recipient is still eligible for SSI and still receiving the correct payment amount. There are two types of redeterminations: scheduled and unscheduled. Scheduled redeterminations are selected annually or once every 6

years depending on the likelihood of payment error in the case. Except for certain institutionalized individuals, all recipients are periodically scheduled for a redetermination. Unscheduled redeterminations are

completed on an as needed basis when recipients report, or we discover, certain changes in circumstances

that could affect the continuing SSI payment amount. The numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations

completed and in the numbers of scheduled redeterminations that were selected but not completed during

the fiscal year due to the impact of other workload requirements on the field offices. When redeterminations cannot be completed in the fiscal year scheduled, they are carried over into the next fiscal year. Table

V.D1 provides historical data on numbers of redeterminations completed by fiscal year. 

1 Decrease in number of redeterminations completed in fiscal

year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

2 Effective fiscal year 1995, approximately 200,000 fewer redeterminations were selected annually due to a change from a

3-year to a 6-year redetermination cycle for low-error profile

cases.

During periods between scheduled redeterminations, SSA uses the limited issue process to detect situations that have the potential to affect the continuing eligibility of SSI recipients and SSI payment amounts.

SSA conducts periodic computer matches between its own systems and the systems of other Federal and

State agencies to determine if the income and resources information on SSI recipients’ records is in conflict with data obtained from the other systems. Matches detecting conflicting information usually result in

the posting of an identifier to the Supplemental Security Record of the SSI recipient. The case is then

selected and scheduled for a field office review of the issue for which the indicator was posted. In fiscal

year 2000, SSA released over 600,000 limited issue cases for development by field offices.

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the Social

Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at

Table V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2000

[In thousands] 

Fiscal year

Number of

redeterminations

1986 ....................................... 2,278

1987 ....................................... 2,244

1988 ....................................... 1,997

1989 ....................................... 2,226

1990 ....................................... 2,103

1991 ....................................... 2,138

1992 ....................................... 2,321

1993 ....................................... 2,223

1994 ....................................... 1 1,900

1995 ....................................... 2 1,597

1996 ....................................... 1,763

1997 ....................................... 1,773

1998 ....................................... 1,853

1999 ....................................... 2,122

2000 ....................................... 2,182
77

2001 SSI Annual Report

least every 3 years. A similar requirement was not put in place at that time for disabled title XVI recipients. Although the Committee on Finance of the Senate stated in its report on this legislation that the same

continuing disability reviews (CDRs) procedures should be applied with respect to both the title II and title

XVI programs, title XVI was not amended to accomplish this. In 1994 and again in 1996 legislation was

enacted adding some mandates for the performance of CDRs under the SSI program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required

to conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA

was required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who

reach age 18 after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child

recipients who reach age 18, with such redetermination being based on an adult eligibility criteria.

This law also added the requirement that a CDR be performed:

• At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

• Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted in

the deferral of full medical reviews for 261,129 cases for which a scheduled title XVI CDR was processed

in 2000.

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.
2001 SSI Annual Report

78

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 2

Continuations 2

Cessations

Appeals to reconsideration

Number Percent 3 Number Percent 4

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 40,741 79.2 10,725 7,436 69.3

1998 81,185 68,533 84.4 12,652 8,811 69.6

1999 80,816 70,353 87.1 10,463 6,379 61.0

2000 105,787 93,962 88.8 11,825 6,623 56.0

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 69,557 57,662 82.9 11,895 8,837 74.3

1998 75,071 64,829 86.4 10,242 7,363 71.9

1999 140,429 125,079 89.1 15,350 10,518 68.5

2000 173,470 156,065 90.0 17,405 10,710 61.5

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 121,023 98,403 81.3 22,620 16,273 71.9

1998 156,256 133,362 85.3 22,894 16,174 70.6

1999 221,245 195,432 88.3 25,813 16,897 65.5

2000 279,257 250,027 89.5 29,230 17,333 59.3

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 5

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 7

Continuations

Number Percent Cessations 3 Number 6 Percent 4 Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,245 42.9 1,660 1,007 60.7 — 382 37.9 625

1996 — 1,875 45.5 2,244 1,313 58.5 — 427 32.5 886

1997 95 4,297 58.5 3,044 2,290 75.2 78 867 39.2 1,345

1998 113 5,509 63.3 3,189 2,362 74.1 203 915 42.4 1,244

1999 304 3,930 64.7 2,145 1,353 63.1 396 395 41.3 562

2000 1,481 3,517 68.4 1,625 719 44.2 600 48 40.3 71

Title XVI initiated reviews

1993 — — — — — — — — — —

1994 — — — — — — — — — —

1995 — 241 36.2 424 267 63.0 — 87 32.6 180

1996 — 3,289 53.5 2,857 1,946 68.1 — 623 32.0 1,323

1997 123 5,272 60.5 3,442 2,650 77.0 108 909 35.8 1,633

1998 154 4,527 62.8 2,682 2,020 75.3 168 639 34.5 1,213

1999 379 6,519 64.3 3,620 2,360 65.2 740 582 35.9 1,038

2000 1,810 5,761 64.7 3,139 1,550 49.4 1,247 108 35.6 195

Total reviews, SSI disabled adults

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,486 41.6 2,084 1,274 61.1 — 469 36.8 805

1996 — 5,164 50.3 5,101 3,259 63.9 — 1,050 32.2 2,209

1997 218 9,569 59.6 6,486 4,940 76.2 186 1,776 37.4 2,978

1998 267 10,036 63.1 5,871 4,382 74.6 371 1,554 38.7 2,457

1999 683 10,449 64.4 5,765 3,713 64.4 1,136 977 37.9 1,600

2000 3,291 9,278 66.1 4,764 2,269 47.6 1,847 156 37.0 266
79

2001 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 reflect results as of February 2001. The ultimate number of continuations and cessations are subject to change until all appeals are final.

2 The numbers of fiscal year 1999 decisions and continuations at the initial decision level may differ from totals reported in the 2000 SSI Annual Report

due to subsequent updates to administrative data.

3 Percentage of decisions at this level.

4 Percentage of cessations at this level appealed to next level.

5 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.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of initial decisions excluding appealed cases pending decisions.

9 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 8 Number Percent 9 Number Percent 8

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,114 97.5 60 5.2 29 2.5

1994 9,845 89.9 1,818 16.6 1,100 10.1

1995 14,111 84.3 4,252 25.4 2,625 15.7

1996 22,938 85.3 6,248 23.2 3,946 14.7

1997 45,905 89.5 10,725 20.8 5,388 10.5

1998 74,957 92.7 12,652 15.6 5,912 7.3

1999 74,678 93.2 10,463 12.9 5,438 6.8

2000 97,527 94.0 11,825 11.2 6,179 6.0

Title XVI initiated reviews

1993 — — — — — —

1994 — — — — — —

1995 3,605 84.1 1,010 23.6 682 15.9

1996 50,185 91.2 8,752 15.9 4,840 8.8

1997 63,843 92.1 11,895 17.1 5,483 7.9

1998 69,995 93.6 10,242 13.6 4,754 6.4

1999 132,180 94.9 15,350 10.9 7,130 5.1

2000 161,934 95.0 17,405 10.0 8,479 5.0

Total reviews, SSI disabled adults

1993 1,114 97.5 60 5.2 29 2.5

1994 9,845 89.9 1,818 16.6 1,100 10.1

1995 17,716 84.3 5,262 25.0 3,307 15.7

1996 73,123 89.3 15,000 18.3 8,786 10.7

1997 109,748 91.0 22,620 18.7 10,871 9.0

1998 144,952 93.1 22,894 14.7 10,666 6.9

1999 206,858 94.3 25,813 11.7 12,568 5.7

2000 259,461 94.7 29,230 10.5 14,658 5.3
2001 SSI Annual Report

80

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 2

Continuations 2

Cessations

Appeals to reconsideration

Number Percent 3 Number Percent 4

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 4,482 63.2 2,609 842 32.3

1998 17,620 6,092 34.6 11,528 3,689 32.0

1999 9,773 4,114 42.1 5,659 1,656 29.3

2000 10,178 4,566 44.9 5,612 1,546 27.5

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 22,431 45.9 26,403 16,991 64.4

1998 40,945 21,453 52.4 19,492 11,070 56.8

1999 49,557 27,413 55.3 22,144 10,982 49.6

2000 51,713 28,863 55.8 22,850 10,769 47.1

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 4 66.7

1998 91,157 67,203 73.7 23,954 13,370 55.8

1999 183,211 129,420 70.6 53,791 28,859 53.7

2000 140,699 106,583 75.8 34,116 16,911 49.6

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 26,921 48.1 29,018 17,837 61.5

1998 149,722 94,748 63.3 54,974 28,129 51.2

1999 242,541 160,947 66.4 81,594 41,497 50.9

2000 202,590 140,012 69.1 62,578 29,226 46.7

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 5

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 7

Continuations

Number Percent Cessations 3 Number 6 Percent 4 Number Percent

Reviews of low-birth-weight children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 184 27.7 481 219 45.5 — 53 24.2 166

1996 — 329 36.4 575 232 40.3 — 44 19.0 188

1997 21 292 35.6 529 236 44.6 4 45 19.4 187

1998 51 1,234 33.9 2,404 1,131 47.0 52 217 20.1 862

1999 42 600 37.2 1,014 470 46.4 146 49 15.1 275

2000 515 442 42.9 589 212 36.0 184 6 21.4 22

Redeterminations at age 18

1994 — — — — — — — — — —

1995 — 2 40.0 3 2 66.7 — 1 50.0 1

1996 — 707 34.4 1,348 584 43.3 — 119 20.4 465

1997 265 4,590 27.4 12,136 6,421 52.9 162 1,301 20.8 4,958

1998 184 3,072 28.2 7,814 4,294 55.0 206 821 20.1 3,267

1999 287 3,340 31.2 7,355 4,093 55.6 1,258 648 22.9 2,187

2000 2,467 2,932 35.3 5,370 2,229 41.5 1,824 119 29.4 286

All other reviews of SSI disabled children

1994 — — — — — — — — — —

1995 — 177 32.7 364 202 55.5 — 52 25.7 150

1996 — 69 32.9 141 55 39.0 — 17 30.9 38

1997 1 1 33.3 2 1 50.0 — — 0.0 1

1998 128 4,456 33.7 8,786 5,461 62.2 367 1,101 21.6 3,993

1999 1,053 9,218 33.2 18,588 11,288 60.7 3,346 1,711 21.5 6,231

2000 4,928 5,079 42.4 6,904 3,435 49.8 2,965 111 23.6 359

Total reviews, SSI disabled children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 363 30.0 848 423 49.9 — 106 25.1 317

1996 — 1,105 34.9 2,064 871 42.2 — 180 20.7 691

1997 287 4,883 27.8 12,667 6,658 52.6 166 1,346 20.7 5,146

1998 363 8,762 31.6 19,004 10,886 57.3 625 2,139 20.8 8,122

1999 1,382 13,158 32.8 26,957 15,851 58.8 4,750 2,408 21.7 8,693

2000 7,910 8,453 39.7 12,863 5,876 45.7 4,973 236 26.1 667
81

2001 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 reflect results as of February 2001. The ultimate number of continuations and cessations are subject to change until all appeals are final.

2 The numbers of fiscal year 1999 decisions and continuations at the initial decision level may differ from totals reported in the 2000 SSI Annual Report

due to subsequent updates to administrative data.

3 Percentage of decisions at this level.

4 Percentage of cessations at this level appealed to next level.

5 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.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of initial decisions excluding appealed cases pending decisions.

9 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 8 Number Percent 9 Number Percent 8

Reviews of low-birth-weight children

1994 830 67.8 454 37.1 395 32.2

1995 2,320 54.8 2,148 50.8 1,911 45.2

1996 2,864 50.2 3,218 56.4 2,845 49.8

1997 4,819 68.2 2,609 36.8 2,247 31.8

1998 7,543 43.1 11,528 65.4 9,974 56.9

1999 4,763 49.7 5,659 57.9 4,822 50.3

2000 5,014 52.9 5,612 55.1 4,465 47.1

Redeterminations at age 18

1994 — — — — — —

1995 67 94.4 7 9.9 4 5.6

1996 8,984 71.1 4,482 35.5 3,656 28.9

1997 28,322 58.5 26,403 54.1 20,085 41.5

1998 25,346 62.5 19,492 47.6 15,209 37.5

1999 31,401 65.4 22,144 44.7 16,611 34.6

2000 31,914 67.3 22,850 44.2 15,508 32.7

All other reviews of SSI disabled children

1994 — — — — — —

1995 2,730 77.2 1,034 29.3 805 22.8

1996 485 61.5 390 49.4 304 38.5

1997 9 69.2 6 42.9 4 30.8

1998 72,760 80.3 23,954 26.3 17,902 19.7

1999 140,349 78.5 53,791 29.4 38,463 21.5

2000 111,773 84.2 34,116 24.2 21,033 15.8

Total reviews, SSI disabled children

1994 830 67.8 454 37.1 395 32.2

1995 5,117 65.3 3,189 40.7 2,720 34.7

1996 12,333 64.4 8,090 42.3 6,805 35.6

1997 33,150 59.7 29,018 51.9 22,336 40.3

1998 105,649 71.0 54,974 36.7 43,085 29.0

1999 176,513 74.7 81,594 33.6 59,896 25.3

2000 148,701 78.4 62,578 30.9 41,006 21.6
2001 SSI Annual Report

82

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received SSI

payments. Initially, the program contained a basic earned income exclusion that recognized the additional

costs associated with employment. In addition, the law contained a number of special income exclusions

which were intended as work incentives. Among these provisions were the income exclusion for blind

work expenses (BWE), plans for achieving self-support (PASS), and student earned income exclusion

(SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

• Providing for an earned income exclusion for impairment-related work expenses (IRWE);

• Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

• Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

• Establishing section 1619 which provided:

— In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to represent substantial gainful activity (SGA), and

— In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs. 1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status.

Figure V.E1 presents the same information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the Quarterly Report on SSI Disabled

Workers and Work Incentive Provisions prepared by the Office of Research, Evaluation and Statistics, Social Security Administration.
83

2001 SSI Annual Report

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999 and $740 in January 2001. Increases in the SGA level in subsequent years will be based on

increases in the national average wage index.

2 Workers’ earnings are at or below the SGA level.

3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

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

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-2000

Year

In current-payment status 1619(b) Total

1619(a) workers 1 Other workers 2 workers 3 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

1998 ...................................... 37,271 229,662 59,542 326,475

1999 ...................................... 25,528 245,825 69,265 340,618

2000 ...................................... 27,542 249,313 83,572 360,427

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

as of December, 1987-2000

[In thousands]

0

50

100

150

200

250

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

Calendar year

1619(a) workers

1619(b) workers

Other workers
2001 SSI Annual Report

84

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive

provisions: (1) plan for achieving self-support (PASS), (2) impairment-related work expense exclusion

(IRWE), and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than

one of these selected work incentive provisions. This information is available only for calendar years 1990

and later.

1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

Note: Working recipients participating in these other work incentives may be 1619(a) recipients, 1619(b) recipients or working

recipients whose earnings are at or below the SGA level.

b. Average Earnings of Participants in Work Incentive Programs

In this section, we present historical data on average earnings of SSI working recipients. Table V.E3 presents average earnings of SSI recipients categorized according to their section 1619 status.

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999 and $740 in January 2001. Increases in the SGA level in subsequent years will be based on

increases in the national average wage index.

2 Workers’ earnings are at or below the SGA level.

3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

4 Estimated.

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

in Other Work Incentives as of December, 1990-2000

Year

PASS 1

Non-workers Workers Total IRWE BWE

1990 .............................. 1,215 1,040 2,255 5,384 4,385

1991 .............................. 1,969 1,601 3,570 6,546 4,330

1992 .............................. 3,189 2,658 5,847 7,813 4,454

1993 .............................. 4,528 3,602 8,130 8,629 4,406

1994 .............................. 5,842 4,487 10,329 9,484 4,380

1995 .............................. 5,719 4,603 10,322 9,940 4,433

1996 .............................. 2,760 1,944 4,704 9,799 4,230

1997 .............................. 1,290 708 1,998 9,637 4,116

1998 .............................. 712 362 1,074 9,301 3,802

1999 .............................. 698 347 1,045 9,520 3,971

2000 .............................. 862 520 1,382 9,422 3,895

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

Disabled Working Recipients, as of December, 1987-2000 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b) Total

1619(a) workers 1 Other workers 2 workers 3 workers

1987 ...................................... $494 4 $124 $739 4 $211

1988 ...................................... 522 4 127 721 4 218

1989 ...................................... 518 4 131 712 4 231

1990 ...................................... 712 145 746 245

1991 ...................................... 724 148 780 262

1992 ...................................... 726 150 781 271

1993 ...................................... 728 153 784 280

1994 ...................................... 746 157 803 301

1995 ...................................... 754 160 834 322

1996 ...................................... 764 162 881 344

1997 ...................................... 772 164 932 367

1998 ...................................... 772 182 954 390

1999 ...................................... 926 207 980 418

2000 ...................................... 945 239 1,048 481
85

2001 SSI Annual Report

2. Vocational Rehabilitation/Ticket to Work Program

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

receiving SSI benefits to be referred to State Vocational Rehabilitation (VR) agencies. The 1980 amendments provided for the continuation of SSI payments for certain disabled individuals enrolled in VR programs whose disability ceased due to medical recovery. This benefit continuation provision applied only if

the VR program was approved by SSA and SSA determined that continuation or completion of such program would increase the likelihood that the individual will be permanently removed from the SSI rolls.

This provision was extended to SSI blind recipients effective April, 1988. In 1994, regulations were

amended to provide access to alternate private and non-State public VR providers when a State VR agency

does not serve an SSI recipient whom SSA refers for services. 

From the beginning of the SSI program through 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981 amendments established reimbursement provisions so that VR

agencies would be reimbursed for the cost of VR services furnished to blind or disabled SSI recipients

only if the services result in the recipient returning to work. 1 In 1994, these reimbursement procedures

were amended by regulation to include reimbursement of alternate providers. For reimbursement purposes,

recipients are considered to have returned to work if they have had earnings exceeding the SGA level for 9

continuous months. Effective with the 1990 amendments, reimbursement for the cost of VR services was

authorized for services provided in months in which the individual was not receiving Federal SSI benefits

if the individual:

• Had special SSI recipient status for Medicaid purposes under 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.

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

Ticket to Work program under which a disabled beneficiary will be able to obtain vocational rehabilitation,

employment and other support services from a qualified private or public provider. Providers of such services in this new setting will be referred to as “employment networks” (ENs). In addition, the Ticket legislation provided for a new procedure for compensating the ENs under an outcome or outcome-milestone

payment system to be specified under regulations issued by the Commissioner. By expanding the pool of

providers and giving the providers incentives for achieving success, this program seeks to expand a disabled beneficiary’s access to these services in order to assist the beneficiary in finding, entering, and

retaining employment and reducing his/her dependence on cash benefits. 

The Ticket to Work program will be implemented on a State-by-State basis over a 3-year period. Once the

Ticket to Work program is implemented in a State, the traditional VR referral process described earlier

will be eliminated in that State, and SSA will provide eligible individuals who receive SSI benefits due to

blindness or disability in such State with a Ticket to Work document (“ticket”). These individuals may use

the ticket to obtain the vocational rehabilitation services, employment services and other support services

needed to return to work, or go to work for the first time.

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

under the traditional system can continue to receive compensation under the cost reimbursement system

described above. However, once the Ticket to Work program is fully implemented only the State VR agencies will have the option on a case-by-case basis of electing to remain under the traditional VR compensa1 Reimbursement may be made in cases where the recipient medically recovers while engaged in a program of rehabilitation services approved by

SSA and SSA determines that continuation or completion of such program increases the likelihood the individual will be permanently removed

from the rolls.
2001 SSI Annual Report

86

tion system. At that time, ENs will be the only other providers of VR services for disabled beneficiaries

and will be compensated through the new outcome-based system.

Pursuant to the Ticket legislation requirement that SSA establish a corps of work incentives specialists to

disseminate accurate information with respect to work incentives, SSA has created the Employment Support Representative (ESR) position. ESRs will provide information about SSA’s employment support programs to (1) disabled beneficiaries who want to work, (2) applicants for disability benefits and their

families, (3) providers of vocational rehabilitation and employment support services, and (4) potential

employers. SSA is currently “piloting” this position in 50 sites across the country and will use the results

from the pilot study to help determine how best to implement this ESR position on a national basis.

Table V.E4 provides historical data on the number of reimbursement claims allowed and the amount of

such awards for SSI recipients.

1 For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

2 For fiscal years 1987-89, data on title II reimbursement claims involving concurrent title XVI reimbursement claims are not available.

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

Table V.E4.—Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2000

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands) Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987........... (2) (2) 1,493 $10,010 (2) (2)

1988........... (2) (2) 1,720 14,831 (2) (2)

1989........... (2) (2) 1,871 18,366 (2) (2)

1990........... 1,267 $3,290 2,819 22,832 4,086 $26,122

1991........... 1,445 4,325 2,171 20,615 3,616 24,940

1992........... 1,634 5,312 2,834 28,276 4,468 33,588

1993........... 1,928 6,670 2,158 22,264 4,086 28,934

1994........... 1,880 7,057 2,074 23,400 3,954 30,457

1995........... 2,140 7,761 2,229 26,402 4,369 34,162

1996........... 2,033 6,518 2,138 24,334 4,171 30,852

1997........... 2,735 8,541 2,914 31,532 5,649 40,073

1998........... 3,329 10,089 3,446 36,313 6,775 46,402

1999........... 3,572 11,403 4,046 42,281 7,618 53,684

2000........... 3,260 11,357 3,589 40,793 6,849 52,150
87

2001 SSI Annual Report

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present data on participation by SSI recipients in other programs. Certain information

is available from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data summarized from the SSR are very representative of the overall SSI recipient population since

the information is based on a 100-percent extract or, for certain information, on a 10-percent extract from

the SSR. Data from the SSR are presented in section 1 below.

There are other potential sources for information on SSI recipients that are not available on the SSI administrative files. One source in particular is the Survey of Income and Program Participation (SIPP) 1, a U.S.

Census Bureau sample survey that collects information such as the source and amount of income, program

participation and general demographic characteristics for the U.S. civilian noninstitutionalized population.

Data from the SIPP are presented in section 2. 

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

Since the amount of an individual’s income is used to determine both the eligibility for, and the amount of

his/her SSI benefit, it is necessary for the SSR to contain information on participation by SSI recipients in

certain other programs which may provide countable income to the SSI recipient. A significant number of

SSI recipients are Social Security beneficiaries whose total countable income, including OASDI benefits,

is less than the Federal benefit rate plus the amount of applicable Federally-administered State supplementary payment. A smaller number of SSI recipients participate in other programs and receive income such

as Worker’s Compensation benefits or disability cash benefits from the Department of Veterans Affairs.

SSA does not maintain complete information in its administrative files concerning the involvement of SSI

recipients in other assistance programs because under the law payments from such programs are excluded

from countable income attributable to the individual. We do, however, have some data with regard to entitlement to benefits under two other programs—Temporary Assistance for Needy Families (TANF) (which

replaced Aid to Families with Dependent Children (AFDC)) and State Interim Assistance Reimbursement—at the point that the individual applied for SSI benefits. TANF (and AFDC previously) is a State

program funded under Part A of title IV of the Social Security Act. Interim assistance is assistance a State

gives to SSI applicants in cash or vendor payments for meeting basic needs while they are awaiting the

outcome of the SSI eligibility determination process.

Table V.F1 presents percentages of SSI recipients who (1) concurrently receive payments from certain

other selected programs or (2) have previously been enrolled in TANF/AFDC or received Interim Assistance Reimbursement.

1The SIPP is a sample survey conducted by the U.S. Census Bureau, which collects data on the civilian noninstitutionalized U.S. population. The

SIPP is comprised of a continuous series of national panels which are identified by the year in which interviewing began for that panel. The participants in the panel are divided into four groups, with each group being interviewed monthly on a rotating basis concerning the 4 months prior to the

month of interview. The data are released in waves, where 4 months of interviews comprise a wave. Due to the design of the survey, in each wave

there is only 1 month for which the data are collected for all participants. For 3 out of 4 months for which data are collected, the information for the

month will be collected by interviews conducted under two separate waves. The data presented here are for December 1998 which was included in

interview months of both Waves 9 and 10 of the 1996 Panel.
2001 SSI Annual Report

88

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

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

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

In this section we present information on program participation by SSI recipients or households of SSI

recipients which is not available from SSA administrative files. This information is based on data collected by interviews conducted under Waves 9 and 10 of the 1996 SIPP and then matched to SSA administrative records. The reference month of December, 1998 is used since that is the most recent December for

which data are available. Since the 1996 Panel consists of 36,700 households, the sample of households

including SSI recipients is small. The individuals in the sample represent only 0.02 percent of SSI noninstitutionalized recipients in December, 1998. Therefore great care should be taken in using this information to make generalizations about the overall SSI recipient population. The data are presented in table

V.F2.

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Table V.F1.—Percentage of SSI Federally-Administered Recipients in Current-Payment Status with Participation1

in Selected Programs Based on SSA Administrative Records, December, 2000

Male Female

0-17 18-64 All

65 or

older 0-17 18-64

65 or

older

Number of Federally-administered recipients, 

December, 2000 (in thousands)............................................................. 539 1,627 570 308 2,117 1,440 6,602

Program (In percent)

Program participation by SSI recipients, December, 2000

Federal SSI ............................................................................................... 99.7 95.6 91.8 99.7 97.0 93.2 95.7

Federally-administered State SSI supplementation .................................. 28.5 36.9 50.4 27.8 34.5 43.3 37.6

OASDI ....................................................................................................... 7.3 31.8 55.9 7.2 29.1 60.4 36.1

Black Lung ................................................................................................ ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Railroad Retirement .................................................................................. ( 2 ) ( 2 ) 0.1 ( 2 ) ( 2 ) 0.1 0.1

Veterans Affairs disability cash benefits.................................................... 0.2 0.6 1.1 0.2 0.8 3.8 1.4

Worker’s Compensation ............................................................................ ( 2 ) 0.1 0.1 ( 2 ) 0.1 ( 2 ) 0.1

Previous program participation by SSI recipients, December, 2000

TANF/AFDC .............................................................................................. 50.7 16.3 7.0 47.7 32.0 7.7 22.9

Interim Assistance Reimbursement .......................................................... 0.4 17.4 8.1 0.4 14.7 7.7 11.4

Table V.F2.—Percentage of Noninstitutionalized SSI Federally-Administered Recipients in Current-Payment Status

with Participation1 in Selected Programs Based on Data Collected Under Waves 9 and 10 of the Survey

of Income and Program Participation, December, 1998

Male Female

0-17 18-64

65 or

older 0-17 18-64

65 or

older All

Number of surveyed individuals reporting SSI Income, December, 1998 .... 107 335 133 76 491 405 1,547

Number of surveyed individuals as a percentage of noninstitutionalized 

Federally-administered recipients, December, 1998 (in percent)........... 0.02 0.02 0.02 0.02 0.02 0.03 0.02

Program (In percent)

Program participation by SSI recipients, December, 1998

General assistance.................................................................................... ( 2 ) 0.5 0.8 ( 2 ) 2.3 0.4 1.0

Medicaid.................................................................................................... 79.6 89.9 91.9 78.4 90.8 92.3 89.4

Medicare ................................................................................................... ( 2 ) 32.2 77.7 ( 2 ) 27.8 88.0 41.4

School breakfast/lunch .............................................................................. 78.6 0.8 ( 2 ) 75.9 0.5 ( 2 ) 10.8

TANF ......................................................................................................... ( 2 ) 1.9 0.5 1.2 11.8 1.0 4.5

Unemployment insurance.......................................................................... ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 ) ( 2 )

Special Supplemental Food Program for Women,

Infants and Children (WIC) ................................................................. ( 2 ) ( 2 ) ( 2 ) ( 2 ) 4.4 ( 2 ) 1.4

Program participation by households of SSI recipients, December, 1998

Energy assistance ..................................................................................... 11.7 10.9 9.4 7.3 13.6 10.3 11.4

Housing assistance ................................................................................... 9.8 6.6 6.6 11.9 12.4 8.6 9.4

Food stamps.............................................................................................. 37.0 39.3 31.2 36.2 50.9 42.5 42.6
89

2001 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 (SSA) 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 six external projects

commissioned by SSA and one internal policy research project. Publicly available versions of the results

of these studies will be published on the Internet at http://www.ssa.gov/policy.

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

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 substantially tightened the

childhood SSI eligibility criteria. This legislation also requires that all SSI children be redetermined based

on the adult disability criteria after turning 18 years of age. SSA has awarded a policy evaluation task

order contract to the RAND Corporation to design a study of both the net effect of this legislation on

SSA’s caseloads and program costs and the impact of losing SSI benefits on the children affected by the

law. Through this contract, SSA sought to obtain answers to the following questions: 

• 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 is the overall net impact of welfare reform on SSI caseloads and costs, taking into account both

terminations and new allowances? 

This 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 currently available 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 are collected through a limited number of case

studies of affected children, their families, and service providers in four States. The study by the RAND

Corporation is expected to be completed soon. After internal review of the results, findings of the study

will be available on SSA’s website.

b. Design and Implementation of Survey of Children with Disabilities

Due to the widely acknowledged shortcomings of existing data sources for evaluating the effects of welfare reform on SSI children and for tracking SSI children unaffected by welfare reform, SSA has undertaken to design and implement a national survey of children with disabilities. The last formal, nationally

representative survey of SSI children was conducted for SSA in 1978 by Urban Systems Research & Engineering, Inc. Among the questions the survey will be designed to answer are the following: 
2001 SSI Annual Report

90

• What is the cost of caring for a disabled child? 

• What are the uses of SSI benefits? 

• What alternative sources of care are available to disabled children who lose SSI benefits? 

• How is quality of life and utilization of medical services impacted by gaining or losing SSI benefits? 

• What is the impact of receiving childhood SSI benefits on parental labor force participation? 

The goal is to collect data that will allow SSA to further evaluate the effects of welfare reform on SSI children and their families, as well as to evaluate future changes to the SSI program that may affect children.

This project consists of two broad activities: survey design and survey implementation. SSA has awarded a

survey design task order contract to Mathematica Policy Research, Inc. Mathematica’s tasks include

designing the sampling plan, developing the survey instrument, pre-testing the survey instrument, and

drafting an Office of Management and Budget (OMB) clearance package. SSA competitively awarded a

contract to Mathematica to conduct the survey. Data collection will begin in Summer, 2001, and should be

completed in Spring, 2002.

c. Policy Evaluation of the Overall Effects of Welfare Reform on SSA Programs

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. A task order contract was awarded to the Lewin Group to propose an evaluation design for the Welfare Reform Act’s effect on non-SSA programs that might affect applications and awards for SSA

programs. The study proposes that the effects should be measured in combination with specific State demonstrations in selected States. The report reviews the characteristics of many State demonstrations and

highlights State evaluation projects in California, Connecticut, Florida, Michigan, and Wisconsin. Using

nationally representative data before welfare reform and State-to-State variations before welfare reform,

the study assesses the likely magnitude and direction of indirect welfare reform effects on SSA caseloads

in the future. The study concludes that they cannot be precisely measured with national level survey data

matched to SSA records or with State-to-State differences across time. As part of the analysis, the project

provides descriptive survey data of SSI participants by age and gender and statistically analyzes the transition onto SSI with these data. In addition, it develops an analytic framework and methodology for future

retrospective studies of the overall effects of welfare reform on SSA caseloads, and includes a systematic

assessment of existing and potential new data collection necessary to track the longer-term effects of welfare reform on SSA caseloads.

d. Project NetWork

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 project focus on the Project NetWork case management approach. With help from contractors, a comprehensive administrative records database has been developed by SSA staff containing detailed information on: 
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• 8,248 Project NetWork participants randomly assigned to receive case management services or to a

control group, and 

• 138,613 eligible nonparticipants living in the demonstration areas.

The database includes information on the receipt of SSI and DI benefits and earnings, prior to the demonstration period through the post-demonstration period, and a set of demographic and diagnostic variables.

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 non-economic variables affecting the decision

to volunteer for return-to-work programs that is not available from SSA administrative record systems; for

example, the survey has detailed information on functional limitations, health (including mental health status), cognitive functioning, motivation, and substance abuse. Study findings focus on the feasibility of

applying case management on a large scale, the feasibility of reaching out to hard-to-serve segments of

beneficiaries and applicants, and measures of project outcomes.

The core of the evaluation was the measurement of the net effects of case management on participant earnings, benefit receipt and other outcomes based on a randomized field experiment design. The results show

that Project NetWork produced modest net benefits to persons with disabilities and net costs to taxpayers.

Persons with disabilities gained mainly because the increases in their earnings easily outweighed the small

(if any) reduction in average SSI and SSDI benefits. For the Social Security Administration and the Federal Government as a whole, the costs borne by Project NetWork were not sufficiently offset by increases

in tax receipts from increased earnings or by reductions in average SSI and SSDI benefits. While the

results cannot be directly generalized to other case management interventions, they are nevertheless

instructive for planning new initiatives. This comprehensive experimental analysis has shown the benefits

of using an experimental design to derive realistic net outcome estimates and has provided numerous other

lessons for the design of future demonstrations.

e. State Partnership Return-to-Work Demonstrations—Design and Implementation of the Net 

Outcomes Evaluation

In the fall of 1998, the Social Security Administration’s Office of Disability and Income Security

Programs (SSA/ODISP) and the Department of Education’s Rehabilitation Services Administration

(ED/RSA) announced the award of 12 SSA and 6 RSA projects with annual funding (renewable for

5 years) under State Partnership agreements and grants. These projects are designed to assist States in

developing alternative program structures and service delivery systems that increase the successful

employment of persons with disabilities who are receiving SSI and SSDI. A technical assistance, monitoring and data collection contract was also awarded by SSA/ODISP at that time to facilitate consistent crosssite data collection from these demonstrations. 

In the Spring of 1999, SSA’s Office of Research, Evaluation, and Statistics (SSA/ORES) awarded Mathematica an 18-month task-order contract to evaluate the net impact of these projects. Mathematica designed

a two-part comprehensive evaluation of the net-outcomes produced by the State demonstrations. The Core

net-outcome evaluation will rely primarily on SSA administrative data and will use appropriate statistical

methods to define comparison groups and determine the net impact of the State demonstrations on participants. To the extent made possible by the quality of additional demonstration data from the States, Mathematica will also implement a Supplemental net-outcome evaluation. Both of these aspects of the contract

will focus primarily on the evaluation designs, but the contractor will be required to test and implement

these evaluations for participants through the term of the task order. Formal descriptions of State projects

have been reviewed and accepted for the State Partnership demonstrations. Based on this review, all 12

projects will continue to receive SSA funding. The descriptions identify the specifics of the demonstration

activity and evaluation of outcomes.
2001 SSI Annual Report

92

f. Ticket to Work

The evaluation of the Ticket to Work and Self-Sufficiency program will examine the following:

• Total and net costs of the program,

• The impact of the program on beneficiary work outcomes and reliance on SSA benefits,

• The individual and service provision characteristics of service providers and provider networks,

• The appeal of the program among the eligible population, and

• The satisfaction of participants with the program in general.

To the degree possible, the evaluation will utilize information from SSA administrative data and from the

Ticket to Work implementation process. Such data will be insufficient, however, to cover many of the evaluation topics required under the legislation. This will be especially true for eligible non-participants and

comparison individuals in areas where the Ticket program is not fully implemented. A significant survey

effort will therefore be required to supply the necessary supplemental information to meet these evaluation

requirements. Due to the relatively short implementation time line of the program, the evaluation will have

two components. The first phase involves a task order contract to provide data development from existing

sources, design of the supplemental data survey, and design of the specific evaluation components to meet

the legislative requirements. SSA awarded an evaluation design contract to the Lewin Group which had a

meeting with a technical support group to discuss a preliminary design proposal. The contractor will prepare a design for evaluating outcomes from the Ticket to Work provision of the law. The second phase will

utilize a multiyear contract to carry out the supplemental data survey and evaluation design, and provide

the congressional evaluation reports mandated in the law.

g. Modeling Participation in SSI and Simulating the Effects of Policy Options Utilizing SSA’s 

Financial Eligibility Model

Using Survey of Income and Program Participation (SIPP) data matched to administrative records, SSA

researchers developed a model of financial eligibility which has been used to estimate the rate of participation among eligible elderly and the effects of various policy options to modify the parameters of the SSI

program. The model suggests that the rate of participation among eligible elderly was about 63 percent in

1991. The model was also utilized to simulate the potential effects of several approaches to expand the SSI

program to fight poverty among the elderly. The proposals involved alternatives to the current income and

asset eligibility rules. The model has several advantages over previous studies. The model improves the

modeling of the decision to participate in SSI because administrative records on participation are utilized

rather than less reliable survey self-reports. Also, a methodology has been developed which allows for the

assessment of the alternatives in a directly comparable, cost-equivalent manner. For an additional amount

of proposed program spending, the potential impact of each policy alternative has been evaluated. The

estimates suggest that a number of relatively low-cost options are available to provide greater income support to the economically most vulnerable elderly. Approaches focusing on incremental changes in the Federal benefit rate (FBR), the general income exclusion (GIE), and the asset test appear roughly equally

effective in reducing the poverty gap among the elderly on a cost-equivalent basis, while two approaches

focusing on relaxing the earned income exclusion appear to be clearly inferior as a means of reducing the

poverty gap among the elderly.

The financial eligibility model has been utilized to study eligibility for other Federal programs, specifically for Medicare buy-in programs. Current work on SSI focuses on evaluating the effect of alternative

policy interventions on economically vulnerable elderly women, on the updating of the model to more

recent SIPP panels, and on utilizing various indices of poverty to better measure the effectiveness of SSI

policy options in reducing poverty.
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2001 SSI Annual Report

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________. ________. Select Committee on Aging. Outreach in the Supplemental Security Income Program: Are the Needy Being Informed?: Hearing, April 5, 1990.

________. ________. Select Committee on Aging. The Elimination of Poverty Among the Elderly: Supplemental Security Income Reform: Hearing, 1988.

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Safety Net: Hearing, June 27, 1988.

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________. ________. Subcommittee on Human Resources. Proposals to Improve the Supplemental Security Income Program: Hearing, 1989.

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1977.

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Benefits. Report to Congressional Requesters. GAO/HEHS-96-79, 1996.
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________. Supplemental Security Income: Growth and Changes in Recipient Population Call for Reexamining Program. Report to the Chairman, Committee on Finance, U.S. Senate, and the Chairman, Committee on Ways and Means, U.S. House of Representatives, July 1995.

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Economic Inquiry 38, 3 (July 2000): 419-441.

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Journal of Health Economics 17, 3 (June 1998): 321-349.
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________. Using the Medicare Buy-in Program to Estimate the Effect of Medicaid on SSI Participation.

University of California, Los Angeles, Department of Economics Working Paper No. 753, May 1996.

Zander, Mary. Toward Income Adequacy for the Elderly Poor: Implications of the SSI (Supplemental Security Income) Program for New York City Recipients. New York: Community Service Society of New York,

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Zedlewski, Sheila R. and Jack A. Meyer. “Toward Ending Poverty Among the Elderly and Disabled

Through SSI Reform.” Urban Institute Report, 89-1 (1989).
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H. GLOSSARY

Administrative Expenses (or Costs). Expenses incurred by the Social Security Administration (SSA) in

administering the Supplemental Security Income (SSI) program. Such administrative expenses are initially

paid from the OASI and DI Trust Funds as provided for in section 201(g)(1) of the Social Security Act.

The trust funds are subsequently reimbursed for such expenditures from the General Fund of the Treasury.

Affidavit of Support. A contract under which a United States citizen or legal resident agrees to provide

support to maintain (i.e., to sponsor) an immigrant as a condition of the immigrant’s admission into the

United States.

Aged. Individuals aged 65 or older.

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

Disabled (APTD). The former Federal-State programs of adult cash assistance under titles I, X, and XVI

respectively, that were replaced in the 50 States and the District of Columbia by the SSI program in 1974.

These programs still operate in Guam, the Virgin Islands, and Puerto Rico and are administered at the Federal level by the Secretary of Health and Human Services.

Alien Lawfully Admitted for Permanent Residence. A noncitizen lawfully accorded the privilege of

residing permanently in the United States. Such individuals may be issued immigrant visas overseas by the

Department of State, or adjusted to permanent resident status while living in the United States by the

Immigration and Naturalization Service.

Appeal Rights Process. The administrative review process followed by SSA in determining an individual’s rights under the Social Security Act. The administrative review process consists of several steps,

which must be requested after the initial determination of eligibility, within certain time periods and in the

following order: (1) reconsideration, (2) hearing before an administrative law judge, and (3) an Appeals

Council review. SSA introduced a modification of this process in 10 States for disability applications filed

October 1, 1999 and later. Under this revised process appeals of initial disability denials are made directly

to the Office of Hearings and Appeals (OHA), thereby eliminating the reconsideration step. The options

for appeal beyond the OHA level are unchanged.

Assistance Based on Need. Assistance that is provided by certain programs which use income as a factor

of eligibility. The assistance must be funded wholly by a State, a political subdivision of a State, or a combination of such jurisdictions.

Assumptions. Values relating to future trends in certain key factors which affect the eligibility for SSI

benefits and the level of such SSI payments. Demographic assumptions include fertility, mortality, net

immigration, marriage, divorce, retirement patterns, disability incidence and termination rates, and

changes in the labor force. Economic assumptions include unemployment, average earnings, inflation,

interest rates, and productivity. The assumptions underlying the projections presented in this report are

consistent with the intermediate assumptions of the 2001 OASDI Trustees Report.

Asylee. A noncitizen already in the United States or at a port-of-entry who is granted asylum in

the United States. Asylum may be granted to an individual who is unable or unwilling to return to his/her

country of nationality, or to seek the protection of that country, because of persecution (or a well-founded

fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particular social

group or political opinion.

Attendant Care Services. Services (including personal care assistance) that are paid for from Federal,

State or local funds and which are provided by a paid attendant required to assist with work related and/or

personal functions. 
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Automatic Cost-of-Living Increase. The annual increase in SSI Federal benefit rates, effective for January, reflecting the change in the cost of living. The increase equals the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers measured from the average over July,

August, and September of the preceding year to the average for the same 3 months in the current year. If

the increase is less than one-tenth of 1 percent, when rounded, there is no automatic increase for the current year; the increase for the next year would reflect the increase in the cost of living over a 2-year period.

Award. An administrative determination that an individual is eligible for an SSI benefit.

Blind. For purposes of the SSI program, an individual is considered to be blind if he/she has 20/200 or

less vision in the better eye with the use of a correcting lens, has tunnel vision of 20 degrees or less, or met

the October 1972 State definition of blindness and received benefits under the State’s former program of

Aid to the Blind in December 1973.

Blind Work Expenses (BWE). Any expenses incurred by a blind individual that are reasonably attributable to earning income. The BWE provision permits the exclusion of these expenses from the earned

income of a blind individual. (See “Impairment-Related Work Expenses (IRWE)” for the related exclusions for disabled individuals.)

Burial Funds. A comprehensive term that for SSI purposes includes revocable burial contracts, trusts and

other burial arrangements (including amounts paid on installment sales contracts for burial spaces), cash,

accounts, or other financial instruments with a definite cash value clearly designated for the individual’s

burial expenses.

Child. An unmarried blind or disabled individual who is not the head of a household and who is either

under age 18 or aged 18-21 and regularly attending school. 

Comparable Severity. The phrase in the Social Security Act that defined disability for children prior to

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

Under prior law, an individual under age 18 would have been considered disabled if he/she had an impairment of comparable severity to that required for individuals 18 or older.

Constant Dollars. Dollar amounts adjusted by the CPI to the value of the dollar in a particular year.

Consumer Price Index—CPI. Relative measure of inflation. In this report, all references to the CPI

relate to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Continuing Disability Review (CDR). An evaluation of an individual’s impairment(s) to determine

whether the person is still disabled within the meaning of the law for purposes of eligibility for SSI and

OASDI benefits.

Cost-of-Living Adjustment (COLA). See “Automatic Cost-of-Living Increase.”

Countable Income. An individual’s income less all-applicable exclusions. This amount is used to determine SSI eligibility.

Countable Resources. The amount of resources after all exclusions. This amount is used in determining

an individual’s or couple’s SSI eligibility. A resource may be cash or other liquid assets or any real or personal property that an individual (or his/her spouse) owns and could convert to cash to be used for their

support and maintenance. SSI law stipulates what items are to be excluded from resources. 

Current Dollars. Amounts expressed in nominal dollars with no adjustment for inflationary changes in

the value of the dollar over time.

Current-Payment Status. Status of an SSI recipient to whom a benefit is being paid for a given month.

SSI benefits for a month are usually payable on the first day of that month.
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Dedicated Account. A bank account established for a disabled or blind child to contain retroactive SSI

payments that exceed six times the Federal benefit rate (FBR) plus State supplementation (certain smaller

retroactive payments may be placed in the account once it is established). Funds may be used for: 

• Education,

• Personal needs assistance,

• Special equipment or housing modifications,

• Medical treatment,

• Therapy or rehabilitation, or

• Other items or services that the Commissioner deems appropriate—

provided that the expense benefits the child and, in the case of the last four items, is related to the child’s

impairment. Money from a dedicated account which is misapplied must be repaid. These accounts are

excluded from resources and the interest earned is excluded from income.

Deeming. The process by which the income and resources of an ineligible individual are considered to be

available to a recipient when determining eligibility or payment amount. Deeming applies only between:

• The living-with ineligible spouse and the eligible spouse,

• The living-with ineligible parent(s) and eligible child(ren) under age 18, and

• The immigration sponsors of some noncitizens and the noncitizen(s).

Demographic Assumptions. See “Assumptions.”

Disability. For individuals aged 18 or older, the inability to engage in any substantial gainful activity

(SGA) by reason of any medically determinable physical or mental impairment that can be expected to

result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.

An individual under age 18 must have a medically determinable physical or mental impairment, which

results in marked and severe functional limitations and which has lasted or can be expected to last for a

continuous period of not less than 12 months.

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.

Earned Income Exclusion. The first $65 of a recipient’s monthly earnings and one-half of the earnings

in excess of $65 are excluded in computing the SSI benefit payable.

Earned Income Tax Credit (EITC). A special tax credit that reduces the Federal tax liability of certain

low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer.
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Effective Date of Application. An application for SSI benefits is effective on the first day of the month

following the date on which the application is filed, or on which the individual first becomes eligible,

whichever is later. 

Eligible Couple. Two persons married and living together in the same household or living together as

married, both being aged, blind, or disabled and eligible for SSI.

Eligible Individual. An aged, blind or disabled person who meets all the requirements for eligibility

under the SSI program, including filing an application.

Emergency Advance Payments (EAP). Special SSI payments that are available only at the time of initial application for eligible individuals who face financial emergencies and need assistance before their

first benefits would otherwise be received. The amount of the EAP an individual receives is recovered

from subsequent benefit payments.

Federal Benefit Rate (FBR). The basic standard used in computing the amount of Federal SSI benefits

for individuals and couples. The FBRs are increased annually to reflect increases in the cost of living. (See

table IV.A2.)

Fiscal Year (FY). The accounting year of the United States Government. Since 1976, a fiscal year is the

12-month period ending September 30. For example, fiscal year 2001 began October 1, 2000 and will end

September 30, 2001.

Food Stamps. The U.S. Department of Agriculture (USDA), under cooperative Federal-State agreements,

issues Food Stamp Program benefits in the form of paper food coupons (commonly known as food

stamps) and through electronic benefit transfer, to provide nutrition for low-income families. Food stamps

can be used only to buy food at stores authorized by USDA to accept them.

General Fund of the Treasury. Funds held by the Treasury of the United States, other than receipts collected for a specific purpose (such as Social Security) and maintained in a separate account for that purpose.

Gross Domestic Product (GDP). The total market value of goods and services produced by labor and

property located in the United States, regardless of who supplies the labor or property. 

Holding-Out Marriage. A situation in which a man and woman who are not legally married to each

other are living together in the same household and holding out to the community that they are husband

and wife and, as such, are treated as a couple for purposes of determining eligibility and payment amount

under SSI.

Home Energy Assistance. A Federal Government block grant program that provides funds to States for

energy assistance (including weatherization) to low-income households. This assistance may be provided

by a variety of agencies (e.g., State or local welfare offices, community action agencies, special energy

offices, etc.) and may be known by a variety of names (e.g., Low Income Home Energy Assistance Program (LIHEAP), Project Safe, etc.).

Household. A group of two or more individuals who use a single dwelling unit as primary quarters for

living and eating separate from other individuals’ living units.

Household of Another. An individual is considered to be living in the household of another when the

individual lives with others, does not own or rent the shelter, and does not pay a pro rata share of the

household’s food and shelter expenses. An individual who provides all of his/her own food, or lives in a

public assistance household or in noninstitutional care, is not considered to be living in the household of

another. An individual who is determined to be living in the household of another is considered to be

receiving in-kind support and maintenance from that household, and his/her SSI benefit is reduced by

one-third of the FBR. 
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Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWE’s are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income, provided that the total of this income does not

exceed $10 per month of earned income and $20 per month of unearned income. Infrequent means that it

is not received more than once in a calendar quarter from a single source. Irregular means that an individual could not reasonably expect to receive the income.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food, clothing or shelter or something an individual can

use to obtain food, clothing or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food, clothing, or shelter or

any combination of these.

Interim Assistance Reimbursement (IAR). The process used for reimbursing for basic assistance provided by a State to an individual either while the individual’s application for SSI was pending or during the

period in which an individual’s SSI benefits were suspended. SSA may reimburse a State that has provided

this assistance. The individual’s retroactive SSI payment is sent to the State as reimbursement if: (1) the

State has an agreement with SSA to participate in IAR, (2) the individual has given SSA written authorization to have his/her retroactive payment sent to the State as reimbursement, and (3) the individual is found

eligible for SSI benefits or has had his/her benefits reinstated for the same period of suspense. 

Under IAR, after States reimburse themselves from an individual’s retroactive benefit, they must forward

any remainder to the individual within 10 days.

Living With. A required condition for parent-to-child and spouse-to-spouse deeming. Deeming of

income and resources occurs if an eligible child lives with his/her ineligible parent(s) or an eligible individual lives with his/her ineligible spouse. 

Maintenance-of-Effort. See “Passalong.”

Mandatory State Supplementation. See “State Supplementation.”

Means-Testing. The measuring of income and resources against specified amounts as eligibility factors

for certain assistance benefits. SSI is a means-tested benefit program.
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Medicaid. The program authorized under title XIX of the Social Security Act, which provides medical

assistance to certain low-income individuals and families and certain disabled and medically needy individuals. Medicaid is administered by the States with support from the Federal Government in the form of

matching grants. The Federal Government provides guidelines to the States for formulating their programs. Because these guidelines afford great leeway, Medicaid programs vary widely among the States.

Medicaid Facility. A medical treatment facility such as a hospital, extended care facility, nursing home,

or intermediate care facility, where Medicaid pays more than 50 percent of the cost of a person’s care.

Medical Facility. An establishment that makes available some treatment or services in addition to food

and shelter to four or more persons who are not related to the proprietor.

New Entrant. An SSI recipient in the first month of SSI payment receipt.

Noncitizen. An individual who is not a United States citizen. Also referred to in welfare and immigration

law as an alien. (See “Alien Lawfully Admitted for Permanent Residence,” “Asylee,” “Parolee” and “Refugee.”)

Nonqualified Alien. A noncitizen who is not in a qualified alien category for SSI eligibility purposes.

Public Law 105-306, the Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998,

permanently extended SSI eligibility of all nonqualified aliens who were receiving SSI benefits on August

22, 1996 provided all other eligibility requirements continue to be met.

OASDI. The Old-Age, Survivors, and Disability Insurance programs established under title II of the

Social Security Act.

One-Third Reduction. The reduction of an individual’s SSI payment that occurs when an individual is

living in the household of another. Instead of determining the actual dollar value of in-kind support and

maintenance, one-third of the Federal benefit rate is counted as additional income to an individual living in

another person’s household for a full calendar month and receiving both food and shelter from the household.

Optional State Supplementation. See “State Supplementation.”

Overpayment. The payment of more than the amount due for any period, including any amounts of

Federally-administered State supplementary payments.

Parent. For SSI purposes, the natural mother or father of the child, or the person who legally adopted the

child, or the stepparent who lives in the same household as the child.

Parolee. A noncitizen, who appears to be inadmissible to the inspecting INS officer, but is allowed to

enter the United States under emergency humanitarian conditions or when the noncitizen’s entry is determined to be in the public interest. Parole does not constitute a formal admission to the United States and

confers temporary admission status only, requiring parolees to leave when the conditions supporting their

parole cease to exist.

Passalong. A requirement that States must meet in order to be eligible for Medicaid reimbursement. Any

State making supplementary payments (see “State Supplementation”) after June 30, 1977, must continue

making such payments and must pass along any cost-of-living increase to the Federal benefit rate. Two

methods are available to ensure that cost-of-living increases are passed on to the recipients.

• Total Expenditures Method—State expenditures for supplementary payments in the current calendar

year must at least equal expenditures in the preceding calendar year. If expenditures are less in the

current year (shortfall), the State must increase expenditures in the next calendar year by an amount at

least equal to the shortfall.
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• Payment Levels Method—States may not lower their supplementary payment for any of the living

arrangement categories below their adjusted March 1983 levels. The adjusted level is the State’s

March 1983 payment level minus that portion of the July 1983 increase in the Federal benefit rate that

was not attributable to the increase in the cost of living (i.e., $10.30 per individual and $15.40 per couple).

Payment Accuracy. The accuracy rate reflects the percent of dollars in SSI benefits that are paid correctly. One measure of the quality of the SSI program and SSA’s stewardship of it, based on reviews conducted by SSA to determine the accuracy of the payment and compliance with national instructions and

goals. 

Personal Needs Allowance. The amount allowed for an institutionalized recipient’s personal needs (currently $30). If an SSI recipient is in a Medicaid facility, the law requires that the SSI benefit be used only

for the recipient’s personal needs (i.e., that the institution cannot retain the benefit in repayment of the cost

of the individual’s care).

Plan for Achieving Self-Support (PASS). A plan that permits a disabled or blind SSI recipient to set

aside earned or unearned income and resources for a work goal. The income or resources set aside under a

PASS are used to pay for goods or services needed to reach that goal, such as education, vocational training, starting a business, or purchasing work-related equipment. Income and resources set aside under a

PASS are excluded from SSI income and resources. SSA must approve an individual’s PASS.

Population in the Social Security Area. The population comprised of (i) residents of the 50 States and

the District of Columbia (adjusted for net census undercount); (ii) civilian residents of Puerto Rico, the

Virgin Islands, Guam, American Samoa and the Northern Mariana Islands; (iii) Federal civilian employees

and persons in the Armed Forces abroad and their dependents; (iv) crew members of merchant vessels; and

(v) all other U.S. citizens abroad.

Presumptive Disability or Blindness. A finding that SSI payments may be made before SSA makes a

formal determination as to whether or not the individual is disabled or blind. The individual’s impairment

must be apparent and meet specified criteria. In addition, the individual must meet all other requirements

for eligibility. These payments may be made for no more than 6 months. The presumptive payments will

not be considered overpayments if SSA later finds that the individual is not blind or disabled.

Property Essential for Self-Support (PESS). The real and personal property used in a trade or business,

non-business income-producing property and property used to produce goods or services essential to the

individual’s daily activities. PESS may be excluded from resources under certain conditions.

Proration of Benefits. The method of computing benefit amounts in months in which the individual reacquires eligibility after a month or more of ineligibility. In such months, an individual’s SSI benefit will be

paid according to the number of days in the month that he/she is eligible, beginning with the first day in

the month on which all eligibility requirements are met. In order to determine the benefit payable in a prorated month SSA counts the number of days an individual is eligible in the month. The amount of the individual’s regular monthly payment is multiplied by the number of days for which he/she is eligible for

benefits. That figure is divided by the number of days in the month for which the benefit is being determined. The resulting amount is the amount due for the prorated month. After 1996, proration for months

of initial eligibility was eliminated.

Public Educational Institution. An institution that is operated by or controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county for the primary purpose of providing educational or vocational training. 

Public Emergency Shelter. A shelter for individuals whose homelessness poses a threat to their life or

health. 
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Public Institution. An institution that is operated by or controlled by the Federal Government, a State, or

a political subdivision of a State such as a city or county. 

Publicly Operated Community Residence. A facility that provides food and shelter and some other service such as social services, help with personal living activities, training in socialization and life skills, or

occasional or incidental medical or remedial care. In order to be publicly operated it must be operated or

controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county.

The facility must serve no more than 16 residents and must be located in a community setting.

Qualified Alien. An individual who is:

• Lawfully admitted for permanent residence under the Immigration and Nationality Act (INA);

• A refugee under section 207 of the INA;

• An asylee under section 208 of the INA;

• A person whose deportation is withheld under section 243(h) of the INA as in effect prior to April 1,

1997, or whose removal has been withheld under section 241(b)(3) of the INA;

• A parolee under section 212(d)(5) of the INA for at least one year;

• A person granted conditional entry under section 203(a)(7) of the INA as in effect prior to

April 1, 1980;

• A Cuban or Haitian entrant as defined in section 501(e) of the Refugee Education Assistance Act of

1980; or

• A certain alien, or an alien parent of a child, or an alien child of a parent who has:

— Been battered or subjected to extreme cruelty in the United States by a spouse, parent, or certain

other family members the alien, parent and/or child lived with;

— Been determined to need SSI because of this abuse; and

— A determination from the INS for a certain change in status.

Qualifying Quarter of Earnings. Credit for a requisite amount of earnings assigned to a calendar quarter

for the purpose of determining the SSI eligibility of a lawfully admitted permanent resident.

Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2001, a worker receives one quarter of coverage (up to four a year) for each $830 of annual earnings reported from employment or self-employment. This dollar amount is subject to annual automatic

increases in proportion to increases in average earnings.

Recipient. A person who has been awarded SSI payments based on an evaluation of his/her own countable income and resources, age, and disability status.

Reconsideration. The first step in the administrative review process if an individual is dissatisfied with

SSA’s initial determination.

Redetermination. A periodic review of eligibility for SSI recipients to assure that requirements for eligibility continue to be met and that payment levels are in the proper amount. Income, resources, living

arrangements and other factors are reviewed. The redetermination process does not review the determination of disability. 

Refugee. A noncitizen outside of his/her country of nationality who is unable or unwilling to return to his/

her country of nationality or to seek the protection of that country because of persecution (or a wellfounded fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particu-
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2001 SSI Annual Report

lar social group or political opinion. Unlike asylees, refugees apply for and receive this status prior to entry

into the United States.

Relocation Assistance. A type of assistance provided to persons displaced by projects that acquire real

property. Examples of types of reimbursement, allowances, and help provided are:

• Moving expenses,

• Reimbursement for losses of tangible property,

• Displacement allowances,

• Amounts required to replace a dwelling which exceed the agency’s acquisition cost for the prior

dwelling,

• Rental expenses for displaced tenants,

• Amounts for down payments on replacement housing for tenants who decide to buy,

• Mortgage insurance through Federal programs with waiver of requirements that borrowers must usually meet, and

• Replacement housing.

Representative Payee. A person who receives SSI payments on behalf of an SSI recipient. SSA will pay

benefits to a representative payee on behalf of an individual 18 years old or older when it appears that such

method of payment will be in the interest of the individual. A representative payee will be appointed if the

individual is legally incompetent or mentally or physically incapable of managing or directing the management of his/her benefits. Also, in general, if the individual is under the age of 18, a representative payee

will be appointed.

Resident of a Public Institution. An individual who can receive substantially all of his/her food and

shelter while living in a public institution is considered a resident of the public institution. Generally, an

individual who is a resident of a public institution throughout a month is ineligible for SSI.

Resident of the United States. A person who has established an actual dwelling place within the geographical limits of the United States with the intent to continue to live in the United States. (See “United

States.”)

Resource. The cash or other liquid assets or any real or personal property of an individual (or his/her

spouse, if any) that he/she could use or could convert to cash to be used for his/her support and maintenance.

Retroactive Payments. The SSI payments made in a month later than the month or months in which they

were due. Also referred to as “past-due” benefits.

Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the current

month’s countable income), no payment is due and none is paid. If the individual is eligible based on the

current month’s factors, payment is computed. The benefit for a month is generally based on the countable

income from the second month before the current month. The basic formula is to subtract the countable

income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.
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Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Sponsor. An individual who has signed an affidavit of support for a noncitizen entering the country.

State Supplementation. The payments made by a State or one of its political subdivisions to aged, blind,

or disabled individuals.

• Administration—The governmental unit responsible for administering State supplementary payments

may be either a State or local agency or SSA. Under State administration, the State must absorb both

program benefits and administrative costs. Under Federal administration, the State is responsible for

the program benefits and, as of January 1, 2001, pays $8.10 for each benefit paid for the administrative costs.

• Mandatory Supplementation—The supplementary payments that are made only to beneficiaries who

were converted to the SSI program from former State assistance programs at the inception of the SSI

program. Mandatory minimum State supplementary payments are required to maintain the December

1972 payment levels that these beneficiaries received under the former State assistance programs.

States are required to provide the supplementation to maintain their Federal matching funds for Medicaid.

• Optional Supplementation—The payments made by States to help persons meet needs not fully covered by Federal SSI benefits. The State determines whether it will make a payment, to whom, and in

what amount. These supplements, paid on a regular monthly basis, are intended to cover such items as

food, shelter, clothing, utilities, and other daily necessities. Some States provide optional supplementary payments to all persons eligible for SSI benefits, while others may limit them to certain SSI

recipients such as the blind or residents of domiciliary-care facilities, or they may extend payments to

persons ineligible for SSI because of SSI income.

Statutory Blindness. See “Blind.”

Student Earned Income Exclusion (SEIE). An earned income exclusion for an individual who is under

age 22, regularly attending school and neither married nor the head of a household, with certain limitations

established by regulations. Currently, up to $1,290 earned income in a month, but no more than $5,200 per

year, may be excluded.

Substantial Gainful Activity (SGA). The level of work activity used to establish disability. A finding of

disability requires that a person be unable to engage in SGA. Under current regulations, a person who is

not statutorily blind and is earning more than $740 a month (net of impairment-related work expenses) is

ordinarily considered to be engaging in substantial gainful activity. 

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months

results in a termination of the SSI record. (Once a record is terminated, reapplication is necessary.)

TANF. See “Temporary Assistance for Needy Families (TANF).”

Temporary Absence. An individual’s physical move from his/her permanent place of residence that does

not constitute a change in living arrangement. In general, a temporary absence is an absence from a permanent residence which is not intended to, and does not, exceed a full calendar month. 
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2001 SSI Annual Report

Temporary Assistance for Needy Families (TANF). The State grant program of assistance for needy

families established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

(Public Law 104-193). TANF replaced the Aid to Families with Dependent Children program.

Termination. For an individual, cessation of benefits, which can occur for a number of reasons, including

death, medical improvement, or a period of suspension lasting longer than 12 months. 

Terminations. As used in section IV, the net reduction (after accounting for new entrants) in the number

of SSI recipients in current-payment status during a period. 

Trusts. A legal arrangement involving property and ownership interests. Generally, property held in a

trust will be considered a resource for SSI purposes if the assets of the trust could be used for the benefit of

the individual or spouse. 

Unearned Income. The income that is not earned income. Unearned income may be in cash or in-kind.

Some examples of unearned income are:

• Annuities, pensions, and other periodic payments;

• Retirement and disability benefits;

• Veterans’, workers’ and unemployment compensation;

• Alimony and support payments;

• Dividends, interest and certain royalties; and

• Rents. 

United States. For purposes of the SSI program, the United States consists of the 50 States, District of

Columbia and the Northern Mariana Islands.

Vocational Rehabilitation (VR). The services provided to blind or disabled individuals to help enable

them to work. SSA makes provisions for blind or disabled recipients to be referred to a State VR agency,

or to an alternate provider if the State agency does not accept the referral. 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.

Windfall Offset. A provision to prevent a person from receiving monthly SSI and OASDI benefits in

excess of the total amount which would have been paid if the OASDI benefits had been paid when they

were due rather than retroactively. 

Work Incentives. Provisions in the SSI program that are intended to act as incentives for disabled or

blind individuals to work. Examples of work incentives under the SSI program are:

• Earned income exclusions,

• Impairment related work expenses,

• Blind work expenses,

• PASS, and

• Section 1619 benefits.
.