Annual Report 

of the

Supplemental

 Security

 Income Program

Social Security Administration

May 2009
.
SOCIAL SECURITY

The Commissioner

May 29, 2009

President Barack H. Obama

The White House

Washington, D.C.

The Honorable Nancy Pelosi

Speaker of the House of Representatives

Washington, D.C.

The Honorable Joseph R. Biden, Jr.

President of the Senate

Washington, D.C.

Dear Mr. President, Madam Speaker, and Mr. Biden: 

It is my pleasure to submit to you the 2009 Annual Report of the Supplemental Security Income

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

Responsibility and Work Opportunity Reconciliation Act of 1996.

Sincerely,

Michael J. Astrue

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001
.
EXECUTIVE SUMMARY

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

directs the Social Security Administration (SSA) 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 recipients and costs through at least 25 years. This report is the thirteenth

of such reports, and following are its major highlights and findings. 

Highlights of the SSI Program

 • The SSI program is a nationwide Federal assistance program administered by SSA that guarantees a

minimum level of income for needy aged, blind, or disabled individuals. It acts as a safety net for

individuals who have limited resources and little or no Social Security or other income.

 • In January 2009, 7.2 million individuals

received monthly Federal SSI payments averaging $474, up slightly from 7.1 million recipients with an average payment of $445 in

January 2008.

 • Federal expenditures for cash payments under

the SSI program during calendar year 2008

increased 6.4 percent to $42 billion, while the

funds made available to administer the SSI

program in fiscal year 2008 remained level at

$2.9 billion. In calendar year 2007 the corresponding Federal program expenditures were

$39.5 billion.

Major Findings of the Report

 • By 2033, the end of the 25-year projection

period, the Federal SSI recipient population is

estimated to reach 9.7 million. The projected

growth in the SSI program over the 25-year period is largely due to the overall growth in the U.S.

population, although the current economic recession is expected to temporarily generate additional

growth beyond what might be expected from historical trends. The percentage of the population

receiving SSI is projected to vary somewhat by age group, with the percentage for those age 65 or

older projected to decline and the percentage for those under 65 projected to increase slightly.

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

slightly from 2.28 percent in 2007 to 2.31 percent in 2008 and is projected to increase gradually to

2.56 percent of the population by 2033 due largely to the changing age distribution of the population.

 • Federal expenditures for SSI payments in calendar year 2009 are estimated to increase by $2.8 billion

to $44.9 billion, an increase of 6.7 percent from 2008 levels.

 • In constant 2009 dollars, Federal expenditures for SSI payments are projected to increase to $57 billion in 2033, a real increase of 1.3 percent per year.

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

temporarily increase from the 2008 level of 0.29 percent of GDP due to the effects of the economic

recession, but thereafter gradually decline over time to 0.25 percent of GDP by 2033. 

Disabled

18-64

62.3%

Disabled

under 18

18.6%

Aged

10.7%

Disabled 65

or older

8.3%

 SSI Federal Payments, Calendar Year 2008

$42.0 billion

(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2008 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

5. Plan to Achieve Self-Support. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

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

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

8. Expedited Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

H. COORDINATION WITH OTHER PROGRAMS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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

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

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

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

IV. ESTIMATES OF PROGRAM RECIPIENTS AND FEDERAL EXPENDITURES

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2009-33 . . . . . . . . . 26

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

B. NUMBERS OF SSI PROGRAM RECIPIENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

C. FEDERAL PAYMENTS UNDER SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

D. FEDERAL SSI PAYMENTS AS A PERCENTAGE OF GROSS DOMESTIC PRODUCT . . 50

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

AND BENEFICIARY SERVICES COSTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

V. APPENDICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

A. HISTORY OF PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

1. Basic Eligibility Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

2. Other Eligibility Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

a. Citizenship and U.S. Residency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

c. Drug Addiction and Alcoholism (DA&A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

e. Vocational Rehabilitation and Treatment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

f. Continuing Disability Reviews and Eligibility Redeterminations. . . . . . . . . . . . . . . . . . 60

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

3. Federal Benefit Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

a. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

e. Rounding of Payment Amounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

f. Penalties for False or Misleading Statements or Withholding of Information. . . . . . . . . 64

g. Installment Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

4. Federal Benefit Rates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

5. Exclusions from Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

6. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

c. Transfer-of-Resources Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . . . . . . . 73

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

9. State Supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

10. Overpayment Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

1. Earned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
(IX)

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

C. HISTORICAL ALLOWANCE DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA 90

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 99

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

a. Numbers of Participants in Work Incentive Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . 99

b. Average Earnings of Participants in Work Incentive Programs. . . . . . . . . . . . . . . . . . . . 101

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 106

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

1. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

a. SSI Policy Simulations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

b. National Survey of SSI Children and Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

c. Analytic Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

d. Evaluation of the Ticket to Work Program. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

e. Homeless Outreach Projects and Evaluation (HOPE) . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

f. Youth Transition Demonstration (YTD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

g. Disability Program Navigators (DPNs) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

h. TANF/SSI Disability Transition Project (TSDTP). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

2. Bibliography of Recent Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

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

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

Intermediate Assumptions of the 2009 OASDI Trustees Report, as of July 1, 1974-2033. . . . 27

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

the Intermediate Assumptions of the 2009 OASDI Trustees Report, 1974-2033 . . . . . . . . . . . 28

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2033 . . . . . . . . . . . . . . . . . . 31

IV.B2 SSI Federally-Administered New Recipients, Calendar Years 1974-2033 . . . . . . . . . . . . . . . . 33

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2033 . . . . . . . 35

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

Calendar Years 1974-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2033 . . . . . 37

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2033 38

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

Selected Social Security Area Population Totals, as of December, 1974-2033 . . . . . . . . . . . . 40

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

in Current-Payment Status as of December, 1974-2033 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

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

as of December, 1974-2033. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2009. . . . . . . . . . . . . . . . . . . 45

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2009 . . . . . . . . . . . . . . . . . . . . . 46

IV.C3 SSI Federal Payments in Constant 2009 Dollars, Calendar Years 1974-2033 . . . . . . . . . . . . . 48

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

Calendar Years 1974-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2033. . . . . . . . . . . . . . . 51

IV.E1 Selected SSI Costs, Fiscal Years 1978-2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

V.D1 SSI Redeterminations and Limited Issues Completed, Fiscal Years 1986-2008. . . . . . . . . . . . 90

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
(XII)

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

of December, 1987-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

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

Status Participating in Other Work Incentives as of December, 1990-2008 . . . . . . . . . . . . . . . 101

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

Recipients, as of December, 1987-2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2008 . . . . . . . 104

V.E5 Employment Network Payments Allowed, Fiscal Years 2002-08 . . . . . . . . . . . . . . . . . . . . . . 105

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

Participation in Selected Programs Based on SSA Administrative Records, 

December, 2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1975-2035 . . . . . . 32

IV.B2 SSI Federally-Administered New Recipients by Age Group, Calendar Years 1975-2035 . . . . 34

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1975-2035 . . . . . . 38

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

as of December, 1975-2035. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

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

Selected Social Security Area Population Age Groups, as of December, 1975-2035 . . . . . . . 42

IV.C1 SSI Federal Payments, by Age Group, in Constant 2009 Dollars, Calendar Years 1975-2035 47

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1975-2035. . 50

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

as of December, 1987-2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
.
1

I. INTRODUCTION

The SSI program was established by Congress in 1972, with payments beginning in January 1974. It is

administered by SSA. SSI replaced the former Federal-State programs of Old-Age Assistance, Aid to the

Blind, and Aid to the Permanently and Totally Disabled 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 2009 a monthly Federal cash payment of $674 ($1,011 for a couple if both

members are eligible). Since 1975, these Federal SSI benefit rates have been increased by applying the

same cost-of-living adjustment that has been applied to benefits under the Old-Age, Survivors, and Disability Insurance (OASDI) program. In addition to setting a Federal benefit standard, the legislation establishing SSI also permitted individual States to supplement the Federal payment with an additional monthly

amount. As described in section III, these State supplementary payments can be either voluntary at the

option of the individual States or, in certain cases, mandatory under requirements in effect when the SSI

program began.

Under section 231 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, SSA

is required to submit a report on the SSI program to the President and Congress no later than May 30 of

each year. This is the thirteenth annual report on the SSI program. The legislative mandate requires that

the report include:

 • A comprehensive description of the SSI program;

 • Historical and current data relating to (1) claims intake and dispositions at all levels of decision making; (2) demographic information about recipients, including program cost and prior enrollment in

other public benefit programs; (3) redeterminations, continuing disability reviews, and utilization of

work incentives; (4) administrative costs; and (5) State supplementation program operations; 

 • 25-year projections of future recipients and program costs; 

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

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

In addition, the legislation specified that the report may include views of the SSI program by the Social

Security Advisory Board.

Much of the required information is the subject of extensive ongoing research. In responding to each of the

specific requests for information, every effort has been made to provide the best information available at

this time. SSA will continue to make improvements upon such information, in order to provide the President and Congress with the input necessary to effectively manage this important part of our society’s

social safety net.
2009 SSI Annual Report

2

II. HIGHLIGHTS

The SSI program is a nationwide Federal assistance program administered by SSA that guarantees a minimum level of income for needy aged, blind, or disabled individuals. This section presents highlights of

recent SSI program experience, a summary of important changes to the program in the last year, a discussion of current issues facing the SSI program, and a summary of the key results from the 25-year projections.

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During calendar year 2008, 2 million individuals applied for SSI benefits based on blindness or disability, an increase of 5 percent over 2007. An additional 147 thousand applied for SSI benefits based

on age, an increase of 2 percent from 2007. In 2008, 930 thousand applicants were awarded SSI benefits, an increase of 10 percent as compared to the 844 thousand awarded benefits in 2007.

 • Each month on average during calendar year 2008, 7.2 million individuals received Federal SSI benefits. This group was composed of 1.1 million aged recipients, 6 million disabled recipients, and 66

thousand blind recipients. Of the 6.1 million blind or disabled recipients, 0.8 million were aged 65 or

older. During the year, 8.1 million aged, blind, or disabled individuals received at least 1 month’s Federal SSI benefit.

 • Federal expenditures for payments under the SSI program in calendar year 2008 totaled $42 billion,

up from $39.5 billion in 2007.

 • Each month on average during calendar year 2008, 2.3 million individuals received Federally-administered State supplementary payments. This group was composed of 0.6 million aged recipients, 1.7

million disabled recipients, and fewer than 50 thousand blind recipients. During calendar year 2008,

2.6 million individuals received at least 1 month’s Federally-administered State supplementary payment.

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

totaled $4.4 billion in calendar year 2008, up from $4.3 billion in 2007.

 • The percentage of SSI recipients participating in direct deposit reached 60 percent in fiscal year 2008.

SSI recipient participation in direct deposit has increased gradually in recent years after experiencing

a period of sharp growth when it more than doubled from 24 percent in 1995 to 49 percent in 2000. 

 • The cost of administering the SSI program in fiscal year 2008 was $2.9 billion, which was roughly

6 percent of total Federally-administered SSI expenditures.

 • In January 2009, 7.5 million individuals received Federally-administered monthly SSI benefits averaging $504. Of these, 7.2 million received monthly Federal SSI payments averaging $474, and

2.3 million received monthly State supplementation payments averaging $156.

B. SSI LEGISLATION SINCE THE 2008 ANNUAL REPORT

Since the 2008 SSI Annual Report was transmitted to the President and Congress on May 30, 2008, the

following legislative changes were made to the SSI program:
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2009 SSI Annual Report

Public Law 110-245, enacted June 17, 2008

Provides that most cash military compensation will be treated as earned income for SSI purposes, thus

allowing the service member to benefit from the SSI program’s more favorable consideration of earned

income.

Provides that privatized military housing allowances withdrawn directly from a service member’s pay by

military payroll and paid to the landlord, will be considered in-kind income and the SSI benefit reduction

attributable to the housing allowance will be capped at one-third of the Federal benefit rate. In other cases,

housing allowances will be considered earned income.

Excludes State-provided pensions for aged, blind, or disabled veterans (or their spouses) from income and

resource considerations for SSI purposes.

Excludes any cash or in-kind benefits provided under an AmeriCorps program from income consideration

for SSI purposes.

Public Law 110-328, enacted September 30, 2008

Extends the 7-year eligibility period for certain refugees, asylees, and other humanitarian immigrants

(including victims of human trafficking) to 9 years for the period October 1, 2008 through September 30,

2011.

The 2-year extension also applies to those noncitizens whose SSI had previously ceased due to the expiration of the 7-year period. For these individuals, SSI benefits will be paid prospectively, monthly over the

duration of the noncitizen’s renewed eligibility.

Exempts time-limited noncitizens from the 7-year cap on SSI eligibility during the 3-year window of

October 1, 2008, through September 30, 2011, if they have naturalization applications pending or are

awaiting the swearing-in ceremony.

Public Law 111-5, enacted February 17, 2009

Provides a one-time economic recovery payment of $250 to individuals not residing in Medicaid-funded

treatment facilities who were eligible for SSI benefits in November 2008, December 2008, or January

2009. This payment will not be counted as income or taken into account for resources for the month of

receipt and the following 9 months.

C. CURRENT ISSUES FACING THE SSI PROGRAM

Throughout the past year, SSA has continued to ensure that its programs provide support for millions of

beneficiaries. In particular, the SSI program provides a safety net for the neediest of aged, blind, and disabled Americans—an especially valuable form of aid during this severe economic downturn, when an

increasing number of Americans rely on the Federal Government for assistance. Concurrently, an increase

in the number of program beneficiaries generates additional burdens for SSA that are inherent in the

administration of the SSI program. Confronted with the uncertainty of annual appropriations needed to

support our large workloads, SSA must constantly balance the mandate to provide the required cash assistance to eligible SSI recipients with the equally important stewardship obligation to ensure that the correct

levels of SSI payments are made and that these payments only go to those who truly meet the legislatively

established requirements of the program. Our ability to manage these competing challenges will ultimately
2009 SSI Annual Report

4

be the measure of success in our administration of the SSI program. Additional details of some successes

and challenges recognized since the 2008 report are provided in the following paragraphs.

Economic Recovery Payments

The American Recovery and Reinvestment Act of 2009 provided for a one-time payment of $250 to adult

Social Security beneficiaries, and to SSI recipients, except those in Medicaid-funded treatment facilities.

Congress worked with the Administration to provide this relief to millions of beneficiaries. In response,

SSA has worked with several Federal agencies including the Department of the Treasury, the Department

of Veterans Affairs, and the Railroad Retirement Board to ensure that beneficiaries receive these payments

in a timely manner. As a result, these Economic Recovery payments to nearly 55 million Social Security

and SSI beneficiaries were made in May, 3 to 6 weeks ahead of the statutory requirement.

Expected Significant Increases in Claims Receipts

As a result of the economic downturn, SSA also expects to see substantial increases in applications for

both Social Security and SSI benefits. While the baby-boom retirement wave has been expected, increases

beyond those anticipated could occur due to persons who have been recently unemployed choosing to

leave the labor force and elect earlier-than-expected retirement. In addition, the sharp increase in unemployment is expected to generate a significant increase in disability claims. Because SSI is predominately

a program paying benefits to persons with disabilities, such increases in disability claims would result in

significant increases in SSI program outlays and administrative costs. In addition to the increase in SSA’s

workloads, the demographics of an aging labor force also affect our ability to meet these workload challenges. Many of SSA’s most experienced staff are baby boomers themselves. Recent projections indicate

that we might lose more than 40 percent of our current employees by 2016. Through additional funding

recently provided by the President and Congress, we have started to replenish our staff, although newly

hired staff will not have an immediate impact on our workloads since hiring and training employees is a

lengthy process.

Payment Accuracy

As mentioned in last year’s report, SSI payment accuracy is beginning to reflect the strain of years of

underfunding of SSA’s administrative budget. Since then, payment accuracy (measured as percentage of

SSI payments made that are free from overpayments) continues to decline, from 90.9 percent in FY 2007

to 89.7 percent in FY 2008. This number is measured by internal quality reviews and is our most comprehensive measure of program performance. As in past years, the two areas with the highest error rate are

earned income and resources (primarily bank accounts). This decline in payment accuracy is almost certainly related to recent declines in the resources available to conduct nonmedical redeterminations. 

Beginning in FY 2009, however, increased resources are being provided for such nonmedical redeterminations, and it is hoped that this change will help reverse the downward trend in payment accuracy. In addition, we are committed to developing additional tools to assist in the process of ensuring payments are

made properly. An example of such a tool is the Access to Financial Institutions (AFI) initiative. Under

this program, SSA is able to electronically submit requests for verification of bank data, helping to determine whether SSI applicants have undisclosed resources, a factor that could affect their eligibility for SSI

benefits. The AFI initiative has been tested in three States and results to date have shown a positive return

on investment, suggesting that expansion of the AFI initiative on a nationwide basis would improve our

stewardship of the program. However, in order to continue AFI operations in these three States, as well as

complete a nationwide expansion, we need sustained dedicated funding for training and systems development, in addition to funding of ongoing maintenance costs.
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2009 SSI Annual Report

Performing More CDRs and Redeterminations

Robust program stewardship and program integrity are necessary for preserving the public’s trust in our

programs. As indicated above, one of our important tools in assuring payment accuracy is the nonmedical

redetermination which periodically reviews the factors that can change or eliminate the eligibility of an

individual. In addition, the main tool in evaluating whether disabled individuals continue to satisfy the

medical eligibility requirements of the SSI program is the continuing disability review (CDR). In recent

years, due to reduced funding for such efforts, SSA has had to defer some of these program integrity

efforts. However, with the funds appropriated to SSA by Congress in the Omnibus Appropriations Act,

2009 (Public Law 111–8), we expect to conduct 1.7 million SSI redeterminations, an increase of nearly

500,000 compared to FY 2008. Furthermore, estimates continue to indicate that SSA will achieve a savings in Federal SSI payments of roughly $10 for every $1 spent conducting additional redeterminations

above our base workload volume. The FY 2010 President’s Budget includes $759 million for our program

integrity efforts, an increase of $255 million from FY 2009. This increased funding would allow us to

complete a total of 794,000 CDRs1 and 2,322,000 SSI redeterminations during FY 2010.

Potential Program Improvements

Because the public expects secure, convenient, and easy-to-use electronic services, we have enhanced two

online programs. Ready Retirement and Disability Direct allow Social Security claimants to simplify the

process for filing for benefits, while also allowing claimants to file from any home or office with Internet

access. In the long term, we would like to provide an Internet option for SSI applicants as well. However,

because of the complexity of SSI, automation will be challenging. Were certain eligibility and benefit calculations to be simplified, automation of the application process might be more tractable. However, such

simplification efforts must be balanced against the means-tested nature and aims of the SSI program.

Achieving such a balance is an ongoing challenge, but we remain committed to finding ways to simplify

SSI, and to providing a wide array of service options for our beneficiaries.

Although legislative and regulatory changes have attempted to simplify aspects of the SSI program, the

means-testing requirements remain complicated. We expect to work with Congress in support of the President’s proposal to revisit asset limits for Federal means-tested programs, many of which have remained

unchanged for over 20 years. Nevertheless, even with needed simplification and reformed assets tests, we

are in the early phases of the SSI automation initiative, and we anticipate that at its completion beneficiaries will have more filing options, and our employees will—in some cases—have a less labor intensive

adjudication process.

We are also continuing efforts to strengthen our representative payee program. We have begun to pull sample sets of representative payee cases and perform spot checks to ensure integrity and compliance. There is

also an effort underway to match data with National Protection and Advocacy groups. This will allow us

to flag potential “problem” cases and check them against our data to ensure that representative payees are

properly financially managing the SSI payments of our beneficiaries who are incapable of managing their

own payments. 

Moving Forward

The SSI program is one of the most relied upon programs for some of the nation’s neediest individuals.

Because of the program’s important role as a safety net, we must be mindful that we have a responsibility

to wisely use our resources. Given the proper resources, we can strive to achieve the high level of SSI payment accuracy that legislators and the public expect from us. However, even with sufficient resources, we

1 This figure is the total number of CDRs expected to be processed in 2010, including cases involving OASDI and/or SSI. Over the past several years,

CDRs involving SSI recipients have represented about 45 percent of the total number of CDRs processed.
2009 SSI Annual Report

6

realize that the SSI program still needs to be simplified. New legislative or regulatory proposals may be

needed to address issues identified by our stewardship reviews. With the continued support of Congress

and adequate funding, we will strive to overcome these challenges. We are committed to carry out our

mission of advancing the economic security of the nation’s people through compassionate and vigilant

leadership. 

D. KEY RESULTS FROM THE 25-YEAR PROJECTIONS

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

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

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

is expected to continue throughout the projection period largely due to the growth in the U.S. population, although the current economic recession is expected to temporarily generate additional growth

beyond what might be expected from recent historical trends. By 2033, the Federal SSI recipient population is estimated to reach 9.7 million. Expressed as a percentage of the total U.S. population, the

number of Federal SSI recipients is projected to increase slightly from 2.31 percent of the population

in 2008 to 2.56 percent by 2033 due largely to the changing age distribution of the population. 

 • Federal expenditures for SSI payments in calendar year 2009 are estimated to increase by $2.8 billion

to $44.9 billion, an increase of 6.7 percent from 2008 levels. In constant 2009 dollars, SSI program

outlays are projected to increase to $57.0 billion in 2033, a real increase of 1.3 percent per year. 

 • When compared to the GDP, Federal SSI expenditures are projected to temporarily increase from the

2008 level of 0.29 percent of GDP due to the effects of the economic recession, but thereafter gradually decline over time to 0.25 percent of GDP by 2033.
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2009 SSI Annual Report

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM 

This section presents a brief history and comprehensive description of the SSI program. This section also

includes information on the administration of the program and coordination with other programs.

A. BACKGROUND

Federal entitlement programs for the aged, blind, or disabled have their roots in the original Social Security Act of 1935. That Act established an old-age social insurance program to be administered by the Federal Government and an old-age means-tested assistance program to be administered by the States. Similar

programs for the blind or disabled were added to the Act in later years. Means-tested assistance provided a

safety net for individuals who were either ineligible for Social Security or whose benefits could not provide a basic level of income.

This means-tested assistance comprised three separate programs—Old-Age Assistance, Aid to the Blind,

and Aid to the Permanently and Totally Disabled. Despite substantial Federal financing, these programs

were essentially State programs. Federal law established only broad guidelines for assistance. The Federal

Government provided matching funds to support whatever payment levels the States established, with no

maximum or minimum standards. Consequently, each State was responsible for setting its own standards

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

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

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

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

for the maintenance of needy family members.

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

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

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

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

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

B. THE BASIC PLAN

The main objective of the SSI program is to provide the basic financial support of needy aged, blind, or

disabled individuals. Congress designed the SSI program based on the following principles:

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

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

below specified levels;

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

them to reduce their dependency on public assistance;

 • An efficient and economical method of providing assistance;

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

and
2009 SSI Annual Report

8

 • Appropriate coordination of the SSI program with the food stamp, medical assistance, and other programs.1

C. UNIFORM STANDARDS AND OBJECTIVE CRITERIA

Prior to the SSI program, the eligibility of aged, blind, or disabled individuals for Federally-funded adult

assistance depended on the State in which they lived. Benefit amounts varied from State to State. The SSI

program replaced the State-run programs with a national program with uniform standards and objective

eligibility criteria. These standards include:

 • A uniform limitation on the dollar amount or value of income and resources that an individual can

have and still qualify for SSI assistance. The countable income limits for individuals and couples are

equal to their respective Federal benefit rates2 and hence are increased annually according to changes

in the cost of living. Effective January 1, 2009, the Federal benefit rate is $674 a month for individuals and $1,011 a month for couples. The resource limit is $2,000 in countable resources for individuals and $3,000 for couples.

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

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

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

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

which is expected to last or has lasted at least 12 continuous months or is expected to result in death

and (1) if age 18 or older, prevents him/her from doing any substantial gainful activity3 or (2) if under

age 18, results in marked and severe functional limitations. However, individuals for whom addiction

to drugs or alcoholism is a contributing factor material to the determination of their disabilities are not

eligible for benefits. In order to be considered blind, an individual must have central visual acuity of

20/200 or less in the better eye with the use of a correcting lens or have tunnel vision of 20 degrees or

less.

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

must be a citizen or national of the United States, an American Indian born in Canada who is admitted to the United States 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:4

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

August 22, 1996;

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

medical needs.

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

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

physical and/or mental duties which are productive—and gainful—i.e., performed for remuneration or profit. SGA rules do not apply to the SSI blind. Generally earnings from work activity of over $980 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $980 a month, he/she

generally would not be considered disabled. However, if an SSI recipient is earning over $980 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 $980 was increased from $940 effective January 1, 2009 (73 FR

64652). Yearly increases in the SGA level are based on increases in the national average wage index.

4 Under the “SSI Extension for Elderly and Disabled Refugees Act,” that became law on September 30, 2008, the 7-year period was extended to 9 years

during the window of October 1, 2008 through September 30, 2011. Afterwards, the 9-year period reverts back to 7 years. Noncitizens who have naturalization applications pending during this same 3-year window are exempt from the 7-year limitation.
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2009 SSI Annual Report

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

States);

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

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

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

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

removal is withheld);

 — Cuban and Haitian entrants as defined by Federal statute, including: 1) section 501(e) of the Refugee Education Assistance Act of 1980; 2) former parolees and other aliens who became residents under the Cuban Adjustment Act of 1966; 3) aliens who became permanent residents

under the Nicaraguan and Central American Relief Act; 4) aliens who adjusted status as Cuban/

Haitian entrants under the provisions of the Immigration Reform and Control Act of 1986; and

5) aliens who became permanent residents under the Haitian Refugee Immigration Fairness Act

(eligibility for these categories is generally limited to the 7-year period after the date that entrant

status is granted);

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

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

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

spouses and dependent children; or

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

with, 40 qualifying quarters of earnings.

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

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

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

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

listed above.

In addition, certain noncitizens may be eligible for SSI if they have been certified by the Department

of Health and Human Services to be victims of trafficking in persons in the United States1. Such individuals are treated for SSI purposes as refugees. That is, they are eligible for SSI for 7 years after a

determination is made that they are trafficking victims.

Finally, certain Iraqi or Afghan noncitizens granted special immigrant status under emergency conditions are also treated as refugees for SSI purposes. Unlike trafficking victims, however, Iraqi and

Afghan noncitizen eligibility is time-limited to 6 months (or 8 months for certain Iraqis or Afghans

who provided valuable service to the U.S. Government).2

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

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

2 Effective March 11, 2009, Afghan special immigrants are generally eligible for 8 months from the date of entry into the United States or the date the special immigrant status was granted if already admitted to the United States (Section 602, Division F of Public Law 111-8). This same 8-month eligibility

period was effective January 28, 2008, for Iraqi special immigrants providing valuable service to the U.S. Government (Section 1244 of Public Law 110-

181).
2009 SSI Annual Report

10

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 States1 for 30 consecutive

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

exceptions to the residency and physical presence requirements: 

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

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

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

personnel who (1) are born overseas, (2) become blind or disabled overseas, or (3) applied for

SSI benefits while overseas.

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

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

United States.

D. ASSISTANCE OF LAST RESORT

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

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

assistance.

1. Income

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

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

The monthly Federal benefit rate2 is reduced dollar-for-dollar by the amount of the individual’s “countable” income—i.e., income less all applicable exclusions. Countable income is determined on a calendar

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

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

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

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

shelter-related items the individual receives in kind from persons other than the householder (including inkind assistance from outside the household in which he/she lives) is counted as unearned income.3 However, the amount that is countable is limited to an amount equal to one-third of the applicable Federal benefit rate plus $20.

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

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

significant because different exclusions apply to each type of income. 

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

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

3 Effective February 7, 2005, SSA simplified the SSI program (70 FR 6340) by generally eliminating clothing from the definition of income and from the

definition of in-kind support and maintenance.
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2009 SSI Annual Report

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

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

example, if someone pays an individual’s medical bills, or offers free medical care, or if the individual

receives money from a social services agency that is a repayment of an amount he/she previously spent,

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

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

Income Exclusions1

The principal earned income exclusions are: 

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

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

 • Income set aside or being used to pursue a plan to achieve self-support (PASS) by a disabled or blind

individual; and 

 • The first $30 of infrequent or irregularly received income in a quarter. 

The principal unearned income exclusions are: 

 • The first $20 per month;2

 • Income set aside or being used to pursue a PASS by a disabled or blind individual; 

 • State or locally funded assistance based on need; 

 • Rent subsidies under the Department of Housing and Urban Development (HUD) programs;

 • The value of food stamps; and 

 • The first $60 of infrequent or irregularly received income in a quarter. 

2. Resources 

The value 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). Although “resources” is not defined, the law

lists those items that are not considered resources.

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

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

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

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

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

If an applicant 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 SSI ben1 A complete list of the SSI income exclusions can be found in section V.B.

2 Any portion of this $20 amount not used to exclude unearned income may be used to exclude earned income.
2009 SSI Annual Report

12

efits for a number of months (up to a 36-month maximum).1 The penalty does not apply if, among other

things, the applicant can show that the resources were disposed of exclusively for a purpose other than

establishing SSI eligibility.

Resource Exclusions2

The principal resource exclusions are:

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

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

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

 • Household goods, if needed for maintenance, use and occupancy of the home, and personal effects;3

 • An automobile, if used to provide necessary transportation;4

 • Property essential to self-support;

 • Resources set aside to fulfill a PASS; and

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

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

earned on such amounts.

3. Filing for Other Benefits 

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

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

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

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

be eligible, such as annuities, pensions, retirement or disability benefits, workers’ 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 Treatment 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. Residents of public institutions for a full calendar month are generally ineligible for

SSI unless one of the following exceptions applies:

1 The number of months of penalty is obtained by dividing the uncompensated value of disposed-of-resources by the Federal benefit rate plus the maximum

Federally-administered State supplementary payment, if any, applicable to the individual’s living arrangement.

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

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

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

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

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

transportation, simplifies the evaluation of this resource.
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2009 SSI Annual Report

 • 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 or private health insurance pays more

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

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

16 residents; 

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

6 months in any 9-month period);

 • The recipient was eligible under section 1619(a) or (b)1 for the month preceding the first full month in

the public institution and is permitted by the institution to retain any benefits (payable for up to 2

months); or

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

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

to which the individual will return. In these situations, the recipient may continue to receive the full

benefit for any of the first 3 full months of medical confinement if all other conditions for payment

are met.

5. Personal Needs Allowance 

When individuals enter medical treatment facilities in which more than half of the bill is paid by the Medicaid program, their monthly Federal benefit rate 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 amount

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 treatment 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 facility. 

6. Deeming 

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

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

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

ineligible parent, or an eligible noncitizen has a sponsor.2 In concept, the practice takes into account the

responsibility of the spouse, parent, or sponsor to provide for the basic needs of the eligible individual. 

a. Spouse-to-Spouse Deeming 

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

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

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

under age 183 living in the household. The allowance reduces the amount of income to be deemed.

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

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

1 See section III.E.6 of this report for a description of the special section 1619 provisions for disabled individuals who work.

2 Deeming also applies to an individual who lives with an essential person (a concept carried over from the former State assistance plans). However, there

are fewer than 100 of these cases remaining.

3 Under age 22, if a student, effective June 16, 2008 (73 FR 28033). Previously, under age 21, if a student. 
2009 SSI Annual Report

14

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. Deeming does not apply if a child lives in a household with

only the spouse of a parent (i.e., a stepparent) and the natural or adoptive parent has permanently left the

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 (or under age 22 and a student) who is living in the household. Deeming to a child would continue if the parent is absent from the

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

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

c. Sponsor-to-Alien Deeming 

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

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

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

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

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

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

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

resources deemed to the noncitizen.

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

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

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

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

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

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

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

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

SSI benefits provide a basic level of assistance for individuals who are blind or disabled with limited earnings capacity 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

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

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

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

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

3 For a temporary period—January 1994 through September 1996—the deeming period was 5 years.
15

2009 SSI Annual Report

independence. The SSI program includes a number of work incentives that enable recipients who are blind

or disabled to work and retain benefits or to increase their levels of work activity without the loss of SSI

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

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

and support for work efforts. 

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

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

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

1. Earned Income Exclusion 

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

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

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

who are working will be rewarded for their efforts.

2. Impairment-Related Work Expense Exclusion 

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

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

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

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

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

condition. They are paid for by the individual, and they are not reimbursable from another source such as

Medicaid.

3. Work Expenses of the Blind Exclusion 

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

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

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

expense of the worker.

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

4. Student Earned Income Exclusion 

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

regularly attending school. It is intended to help defray the cost of educational training. Under current regulations, up to $1,640 of earned income per month but no more than $6,600 per year may be excluded.1

1 Increased from $1,550 and $6,240, respectively, effective January 1, 2009 (73 FR 64651). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.
2009 SSI Annual Report

16

5. Plan to Achieve Self-Support 

A plan to achieve 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, must have a specific savings or spending plan, and must

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

by SSA. The individual must then follow the plan and negotiate revisions as needed. SSA monitors the

plans by reviewing them periodically to evaluate the individual’s progress towards attaining the work goal. 

6. Special Provisions for Disabled Recipients 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 may receive special cash benefits so 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

SSI benefits, social services, and Medicaid benefits that an individual 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

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.) 
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2009 SSI Annual Report

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

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

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

1619(b) status may continue. 

7. Vocational Rehabilitation/Ticket to Work Program

Since the beginning of the SSI program, State Vocational Rehabilitation (VR) agencies have provided services to those blind or disabled SSI recipients whom they have accepted as clients. SSA has traditionally

reimbursed the VR agency for services provided in situations where the services result in the individual’s

working at the substantial gainful activity level for a continuous period of 9 months and in certain other

limited situations.

The Ticket to Work and Work Incentives Improvement Act of 1999 established a Ticket to Work and SelfSufficiency program under which a blind or disabled beneficiary may obtain vocational rehabilitation,

employment, and other support services from a qualified private or public provider, referred to as an

“employment network” (EN), or from a State VR agency. In addition, the Ticket legislation provided that

ENs would be compensated under an outcome or outcome-milestone payment system.1 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 has been in operation nationwide since November 2003. Under this program

SSA provides eligible individuals who receive SSI benefits due to blindness or disability with a ticket.

These individuals may use the ticket to obtain the vocational rehabilitation services, employment services,

and other support services needed to return to work or go to work for the first time. The Ticket to Work

program provides that as long as the beneficiary is “using a ticket” SSA will not initiate a continuing disability review to determine whether the beneficiary has medically improved.

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

compensated for those services by SSA. All ENs are compensated through the outcome-based system.

State VR agencies are compensated under the traditional VR reimbursement system unless they have

elected to participate as an EN for specific cases. Any services provided by the State VR agencies to SSI

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

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

approved program of VR services, employment services, or other support services. In addition, SSA must

determine that continuing or completing the program will increase the likelihood that they will be permanently removed from the SSI rolls. SSI benefits and Medicaid generally continue until the approved program is completed or until the individual ceases to participate in the program.

In 2008, SSA revised the Ticket to Work regulations to enhance beneficiary choice and improve the effectiveness of the program. The revisions extended the program to all adult SSDI and SSI blind or disabled

beneficiaries, removed disincentives for ENs to participate in the program, provided incentives for ENs to

support beneficiaries through a more gradual return to work and positioned ENs to better support ongoing

1 State VR agencies generally have the option on a case-by-case basis of electing to be paid under an EN payment system or under the traditional cost reimbursement payment system. Effective July 21, 2008, a State VR agency under the traditional cost reimbursement option and an EN under the EN payment

system may be compensated for providing successive services to a beneficiary.
2009 SSI Annual Report

18

retention of employment. The regulations also encourage partnership between State VR agencies and ENs

to provide long-term services to a beneficiary by allowing the beneficiary to assign a ticket to an EN after

receiving VR services.

8. Expedited Reinstatement

A disabled or blind individual whose eligibility for SSI payments 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 improvement

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

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

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

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

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 favorable reputation for dealing directly with the public.

1. Application Process

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

country or through SSA teleservice centers. Although many of the eligibility requirements for the Social

Security program and the SSI program are different, the application process is very similar. Many times,

individuals file for benefits under both programs at the same time.

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

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

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

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

claimants in obtaining the necessary proofs.

With regard to disability and blindness claims, SSA determines the nonmedical eligibility factors whereas

each State’s disability determination services (DDS) determines the medical eligibility factors.1

2. Determination of Eligibility for Benefits

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

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

based on income received in that month. The amount of the monthly benefit is generally calculated using

income in the second month preceding the month for which the benefit is paid.2 However, at the start of a

period of eligibility or re-eligibility, the amount of benefits for the first and second months are both determined using the income received in the first month.

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

several steps, which must be requested within certain time periods.

2 This method of calculating the benefit is called retrospective monthly accounting.
19

2009 SSI Annual Report

3. Payment of Benefits

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

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

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

by direct deposit, benefit payments are also made by check if individuals do not wish to use direct deposit.

Monthly benefit payments include both the Federal SSI and State amounts if the recipient lives in a State

in which SSA administers the State supplementary payment. (See section III.G.)

4. Ensuring Continued Eligibility for Benefits

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

every 1 to 6 years depending on their specific situation.

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

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

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

improve. Medical reviews are required for disabled or blind recipients under the following circumstances:

 • When earnings of recipients exceed the substantial gainful activity level;1

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

likely to improve;

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

the determination of their disability, unless SSA determines that the impairment is not expected to

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

 • Within 1 year after attaining age 18 for those recipients whose eligibility was established under the

disabled child eligibility criteria. The required review is done using the adult eligibility criteria.

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

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

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

States. Failure or delay in reporting such a change can result in monetary penalties or ineligibility for SSI

benefits.

The basic “failure to report” penalty is $25 for the first such failure or delay, $50 for the second such failure or delay, and $100 for each subsequent failure or delay. However, in cases of fraud or false representation of material facts, SSA’s Inspector General can assess civil monetary penalties in amounts as large as

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

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

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

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

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

the recipient misrepresentated or concealed material information, 100 percent of the monthly SSI benefit

may be subject to recovery.

1 A medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
2009 SSI Annual Report

20

5. Representative Payees 

When SSI recipients are incapable of managing their benefits or are declared legally incompetent, SSA

appoints representative payees for them, and their SSI benefits are sent to the representative payees. In

many cases the representative payee is a spouse, a parent, or other close relative who will act in the recipient’s best interest. In some cases, SSA approves an organization to serve as a payee. SSA authorizes certain types of organizations 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 ($37 a month in 20091) .

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

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

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

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

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

related to the child’s impairment.

6. Appeal Rights 

Recipients must receive advance notice of adverse actions SSA plans to take and may request that their

benefits continue while a decision at the first level of appeal is pending. Recipients may qualify for payment continuation when they appeal an adverse action within 10 days of receiving the advance notice.

Slightly different rules apply to medical cessation cases. When appealing medical cessation cases, individuals may elect to have their benefits continued at both the reconsideration and hearing levels of appeal.

7. Fees for Attorneys and Non-attorney Representatives

At any time, an individual may appoint a representative in any dealings with SSA. 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 SSA, 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 SSA (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 SSA generally decides how much

the fee will be. The representative may request authorization to charge and receive a fee under either a fee

agreement or fee petition. The fee that may be authorized under a fee agreement is currently limited to the

lesser of 25 percent of the retroactive payment or $5,300.2 There is no limit on the amount of the fee that

may be authorized under a fee petition; a reasonable fee is authorized for specific services provided by the

representative. A representative cannot charge or receive more than the fee amount authorized. 

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

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

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

attorney fees has temporarily been extended to the SSI program.3 As in the fee process for the Social

Security program, attorneys are now charged an assessment of the smaller of 6.3 percent of each authorized fee withheld or $83. The flat-rate cap is adjusted based on annual cost-of-living adjustments,

rounded down to the next lower dollar. 

1 For disabled recipients who also have a drug addiction or alcoholism condition, the maximum permitted fee in 2009 is $72 a month.

2 Fee agreements entered into prior to February 1, 2002, were limited to the lesser of 25 percent of the retroactive payment or $4,000. Effective June 22,

2009, fee agreements will be limited to the lesser of 25 percent of the retroactive payment or $6,000 (74 FR 6080).

3 Public Law 108-203, enacted March 2, 2004, granted temporary extension of the attorney fee payment system to title XVI claims for a period of 5 years.

SSA began direct payments on February 28, 2005; thus the extension will expire February 28, 2010.
21

2009 SSI Annual Report

In addition, SSA is conducting a nationwide demonstration project extending fee withholding to non-attorney representatives under Social Security and SSI. In order to be eligible to participate in the demonstration project, non-attorney representatives will have to meet specified prerequisites that include: having a

bachelors’ degree or equivalent; having experience in representing claimants before SSA; having liability

insurance; passing a criminal background check; and passing an examination given by SSA that tests relevant knowledge of the Social Security Act and recent court decisions. The authority for both SSI fee withholding and the demonstration project expires after 5 years.

8. Advance Payments 

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

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

on their SSI status. 

a. Emergency Advance Payments 

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

eligible, may receive up to 1 month of SSI benefits; i.e., 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 denied because the claimant is not disabled or blind, repayment would be waived. If

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

b. Presumptive Disability or Blindness 

A claimant applying for benefits based on disability or blindness may be paid up to 6 months’ benefits

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. If the claim is disallowed for

other reasons, the amount paid would be an overpayment and processed as such.

G. STATE SUPPLEMENTATION

In designing the SSI program, Congress recognized that States,1 in many instances, may want to provide a

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

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

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

under the former State program. The following paragraphs describe the various forms of State supplementation that currently exist. Table III.H1 summarizes State-specific participation in these programs as well

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

1. Optional State Supplementary Payment Programs 

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

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

the State. Currently, 46 States have optional State supplementary payment programs.

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

Northern Mariana Islands if it began making State supplementary payments.
2009 SSI Annual Report

22

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

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

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

Provisions section below).

2. Mandatory State Supplementary Payment Programs 

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

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

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

converted to SSI from the State benefit rolls have died and others have had their incomes increased above

the December 1973 level. As a result, there are few individuals who continue to receive mandatory State

supplementary payments.

3. Administration of State Supplementary Payments 

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

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

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

are required to pay SSA a fee for each supplementary payment issued. In fiscal year 2009, the fee is

$10.45 per payment issued. Fees are subject to change in succeeding fiscal years, based on increases in the

CPI.

States that administer their own supplementary payment programs to title XVI recipients establish their

own eligibility criteria for the supplementary payments. States with Federally-administered programs may

supplement the Federal benefit among a limited number of geographical and living arrangement variations

for title XVI recipients.2

4. Passalong Provisions

When the SSI program began in 1974, Congress did not require States to maintain their efforts with regard

to levels of State supplementary payments. However, in 1976 in reaction to States reducing their supplementary payment amounts when SSI payments were increased, Congress mandated that States pass along

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

To meet the passalong 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, 41 States use the levels method and 9 use the expenditure

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

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

programs in 1973. 

1 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.

2 Includes, for this purpose, those eligible for title XVI benefits but for income.
23

2009 SSI Annual Report

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 ensure 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 so long as the criteria are no more restrictive than the State’s January 1972 medical assistance standards. Forty States use SSI criteria and 11 States

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

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

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

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

33 States. 

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

from:

 • Cost-of-living adjustments;

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

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

 • Increases in or entitlement to childhood disability 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 Department 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.

1 California “cashes out” food stamps and SSI recipients there receive a cash payment in their State supplementary payment in lieu of food stamps.
2009 SSI Annual Report

24

The law also provides for Social Security offices to take food stamp applications from eligible or potentially eligible SSI households that are not already receiving food stamps and 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 first reimburses the State, then pays the remainder in installments to the recipient or his/her

representative payee.1 In certain disabled children cases, SSA pays the remainder in installments into special dedicated financial institution accounts for the children. Thirty-nine States have interim assistance

agreements with SSA. 

1 In those cases where the retroactive benefits are less than a certain amount, 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. Beginning February 2005, when an authorized representative fee may be paid directly, SSA reimburses the State and then

pays the approved fee. Any remainder will be paid in installments, or the full remainder will be paid to the recipient. This change is a 5-year demonstration

project.
25

2009 SSI Annual Report

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

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

 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 

reimburseme

nt 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 b

b State has no recipients receiving mandatory minimum State supplementation.

* * ** Alaska * * * * Arizona * * * ** Arkansas c

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

* * * California d

d Mandatory minimum State supplementation program is Federally-administered.

* * * ** Colorado * * * * * Connecticut b * * ** Delaware d * * * * * District of Columbia d * ** * * Florida b * * * * * Georgia d * * * ** Hawaii b * * * * Idaho * ** Illinois * * * * Indiana b * * ** Iowa d * * * * * Kansas c ** * Kentucky b * * * * * Louisiana d * * ** Maine * * * * * Maryland d * * * ** Massachusetts d * * * * * Michigan d * * * * * e

Minnesota b * * * * Mississippi c * ** Missouri * * * * Montana d * * * ** Nebraska * * * * Nevada b ** * * New Hampshire * * * * e

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

New Jersey d * * * ** New Mexico * * * * * e

New York d ** * * * North Carolina * * * * * North Dakota b ** * Ohio d * * * * Oklahoma * ** Oregon * * * * Pennsylvania d ** * * * Rhode Island b * * * * * e

South Carolina b * * ** South Dakota d * * * * Tennessee c * * ** Texas f

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

* * * * Utah b ** * * Vermont b * * * * * Virginia b * ** * Washington * * * * * West Virginia f * * Wisconsin * * * * * Wyoming * * **

Total number of States 31 10 5 41 9 40 11 33 39
2009 SSI Annual Report

26

IV. ESTIMATES OF PROGRAM RECIPIENTS AND FEDERAL EXPENDITURES

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2009-33

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

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

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

Social Security Act. Nonetheless, for planning purposes it is important to develop the best possible projections of future SSI program recipients and expenditures.

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

period of 25 years. The current projection model uses estimates of the general population by single year of

age and gender. Transitions into payment status are projected separately for: (1) new recipients resulting

from an application for program benefits and (2) returns to payment status from suspended status. Movements out of payment status are projected separately for (1) terminations due to death and (2) suspensions

of payment for all other reasons.1 The assumptions and methods used in preparing these projections are

reexamined each year in the light of recent experience and new information about future conditions and

are revised if warranted. The presentation of projection results in the remainder of this section provides

SSI recipient information for selected age groups.

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS

The estimates of program recipients and Federal expenditures presented in this section have been prepared

using the intermediate demographic and economic projections developed for the 2009 Annual Report of

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

(OASDI) Trust Funds.2 The single economic parameter that has the most direct effect on the level of SSI

benefits is the Consumer Price Index for Urban Wage Earners and Clerical Workers (hereafter denoted as

CPI),3 which is used for indexing the SSI Federal benefit rate. A detailed discussion of these demographic

and economic projections is presented in sections V.A and V.B of the Trustees Report.4 An important feature of the intermediate assumptions for the 2009 Trustees Report is a continuation of the recent economic

downturn through part of 2009, with a return to a sustainable path for the economy over the following several years. As explained later in this section, the economic recession is expected to result in an increase in

applications for SSI disability benefits in the near term and a consequent increase in projected SSI expenditures.

The key parameters utilized for the estimates presented in this report are summarized in the following two

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

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

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

and (2) recovery from a qualifying disability.

2 House Document 111-41, published May 12, 2009.

3 Historical values of the CPI are developed and published by the Bureau of Labor Statistics.

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

2009 SSI Annual Report

Notes: 1. Totals do not necessarily equal the sums of rounded components.

2. Historical data are estimated and subject to revision.

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

Intermediate Assumptions of the 2009 OASDI Trustees Report, as of July 1, 1974-2033

[In thousands]

Year

Age groups a

a Age as of last birthday.

Total

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

Historical data:

1974 .................. 71,044 59,770 36,417 32,792 13,832 8,899 222,754

1975 .................. 70,079 61,731 36,392 33,152 14,137 9,117 224,609

1976 .................. 69,099 63,647 36,504 33,434 14,449 9,387 226,519

1977 .................. 68,199 65,381 36,834 33,712 14,774 9,648 228,548

1978 .................. 67,381 66,988 37,370 33,960 15,119 9,896 230,715

1979 .................. 66,627 68,601 37,982 34,126 15,443 10,167 232,945

1980 .................. 66,060 70,178 38,545 34,256 15,747 10,449 235,236

1981 .................. 65,702 71,436 39,374 34,337 16,036 10,752 237,637

1982 .................. 65,458 72,184 40,767 34,307 16,326 11,076 240,119

1983 .................. 65,335 72,676 42,339 34,229 16,581 11,405 242,565

1984 .................. 65,362 73,059 43,849 34,150 16,815 11,718 244,953

1985 .................. 65,544 73,306 45,371 34,032 17,093 12,029 247,374

1986 .................. 65,814 73,455 46,950 33,880 17,409 12,338 249,846

1987 .................. 66,071 73,559 48,600 33,776 17,701 12,642 252,348

1988 .................. 66,315 73,666 50,286 33,760 17,941 12,947 254,915

1989 .................. 66,710 73,635 52,032 33,829 18,141 13,275 257,622

1990 .................. 67,464 73,265 53,810 33,932 18,358 13,623 260,452

1991 .................. 68,511 72,576 55,598 34,108 18,606 13,957 263,356

1992 .................. 69,611 71,769 57,319 34,511 18,818 14,287 266,315

1993 .................. 70,639 71,006 58,898 35,121 18,971 14,604 269,239

1994 .................. 71,547 70,263 60,487 35,770 19,064 14,913 272,044

1995 .................. 72,302 69,570 62,180 36,360 19,092 15,244 274,749

1996 .................. 72,939 69,034 63,653 37,198 19,059 15,594 277,478

1997 .................. 73,448 68,669 64,645 38,543 18,971 15,945 280,222

1998 .................. 73,819 68,436 65,454 40,055 18,842 16,265 282,871

1999 .................. 74,173 68,321 66,241 41,525 18,697 16,549 285,506

2000 .................. 74,539 68,341 66,853 43,005 18,608 16,881 288,227

2001 .................. 74,888 68,535 67,273 44,528 18,576 17,256 291,055

2002 .................. 75,212 68,864 67,494 46,123 18,590 17,580 293,863

2003 .................. 75,477 69,210 67,540 47,756 18,672 17,863 296,518

2004 .................. 75,732 69,551 67,552 49,449 18,826 18,129 299,239

2005 .................. 76,035 69,892 67,634 51,206 19,048 18,367 302,182

2006 .................. 76,365 70,312 67,662 52,982 19,372 18,533 305,226

2007 .................. 76,638 70,942 67,434 54,686 19,896 18,594 308,189

2008 .................. 76,805 71,813 66,955 56,260 20,602 18,577 311,012

Projected:

2009 .................. 76,946 72,787 66,376 57,828 21,309 18,561 313,807

2010 .................. 77,133 73,730 65,758 59,473 21,923 18,580 316,597

2011................... 77,395 74,597 65,146 60,916 22,710 18,626 319,391

2012 .................. 77,733 75,348 64,616 61,928 23,860 18,709 322,194

2013 .................. 78,138 75,980 64,185 62,780 25,069 18,853 325,006

2014 .................. 78,601 76,494 63,894 63,613 26,183 19,040 327,825

2015 .................. 79,093 76,903 63,832 64,270 27,286 19,265 330,648

2016 .................. 79,593 77,269 63,981 64,693 28,379 19,559 333,474

2017 .................. 80,084 77,632 64,256 64,918 29,414 19,994 336,299

2018 .................. 80,562 78,023 64,550 65,027 30,401 20,556 339,119

2019 .................. 81,065 78,410 64,776 65,096 31,461 21,122 341,931

2020 .................. 81,605 78,738 64,947 65,174 32,626 21,639 344,729

2021 .................. 82,131 79,053 65,151 65,175 33,683 22,316 347,509

2022 .................. 82,624 79,389 65,526 64,941 34,482 23,304 350,266

2023 .................. 83,087 79,715 66,128 64,486 35,209 24,369 352,994

2024 .................. 83,500 79,998 66,900 63,943 35,980 25,369 355,688

2025 .................. 83,903 80,188 67,779 63,368 36,743 26,363 358,344

2026 .................. 84,333 80,314 68,679 62,803 37,449 27,381 360,958

2027 .................. 84,753 80,473 69,496 62,316 38,049 28,437 363,524

2028 .................. 85,148 80,708 70,196 61,923 38,537 29,529 366,041

2029 .................. 85,518 81,018 70,767 61,663 38,885 30,654 368,504

2030 .................. 85,864 81,398 71,201 61,618 39,038 31,793 370,913

2031 .................. 86,188 81,837 71,549 61,769 38,980 32,944 373,267

2032 .................. 86,492 82,304 71,862 62,036 38,764 34,107 375,566

2033 .................. 86,781 82,779 72,183 62,321 38,501 35,244 377,810
2009 SSI Annual Report

28

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

Assumptions of the 2009 OASDI Trustees Report, 1974-2033

Year

Benefit rate

increase a

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

January 1 of the year.

Federal benefit rate

Individual Couple Essential person b

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

Historical data:

Initial benefit paid January 1, 1974 c ...............

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

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

— $140.00 $210.00 $70.00

1974....................................................... d 4.3%

d Ad hoc increases as specified in the law.

146.00 219.00 73.00

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

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

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

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

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

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

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

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

1983....................................................... d 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....................................................... e 2.5

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

f

 513.00

f Benefits originally paid in 2000 and through July 2001 were based on Federal benefit rates of $512.00 and $530.00, respectively. Pursuant to Public Law

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

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

769.00 257.00

2001....................................................... 3.5 f 531.00 796.00 266.00

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

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

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

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

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

2007....................................................... 3.3 623.00 934.00 312.00

2008....................................................... 2.3 637.00 956.00 319.00

2009....................................................... 5.8 674.00 1,011.00 338.00

Projected:

2010....................................................... 0.0 674.00 1,011.00 338.00

2011....................................................... 0.0 674.00 1,011.00 338.00

2012....................................................... 1.4 684.00 1,025.00 342.00

2013....................................................... 2.8 703.00 1,054.00 352.00

2014....................................................... 3.1 725.00 1,087.00 363.00

2015....................................................... 3.0 746.00 1,120.00 374.00

2016....................................................... 2.8 767.00 1,151.00 384.00

2017....................................................... 2.8 789.00 1,183.00 395.00

2018....................................................... 2.8 811.00 1,216.00 406.00

2019....................................................... 2.8 833.00 1,250.00 417.00

2020....................................................... 2.8 857.00 1,285.00 429.00

2021....................................................... 2.8 881.00 1,321.00 441.00

2022....................................................... 2.8 906.00 1,358.00 454.00

2023....................................................... 2.8 931.00 1,396.00 466.00

2024....................................................... 2.8 957.00 1,436.00 479.00

2025....................................................... 2.8 984.00 1,476.00 493.00

2026....................................................... 2.8 1,011.00 1,517.00 507.00

2027....................................................... 2.8 1,040.00 1,560.00 521.00

2028....................................................... 2.8 1,069.00 1,603.00 535.00

2029....................................................... 2.8 1,099.00 1,648.00 550.00

2030....................................................... 2.8 1,129.00 1,694.00 566.00

2031....................................................... 2.8 1,161.00 1,742.00 582.00

2032....................................................... 2.8 1,194.00 1,791.00 598.00

2033....................................................... 2.8 1,227.00 1,841.00 615.00
29

2009 SSI Annual Report

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

recipients to reflect the increase in the CPI generally from the third quarter of the second prior calendar

year to the third quarter of the prior calendar year. This cost-of-living adjustment is identical to the adjustment applied to Social Security benefits under the OASDI program after initial benefit eligibility. In previous years, occasional ad hoc increases were also applied to the Federal benefit rates, either in place of or in

addition to the automatic adjustments. The history of legislation affecting the Federal benefit rates is presented in table V.A1. It is worth noting that the benefit rate increases for January 1, 2010 and January 1,

2011 are both shown in table IV.A2 as 0.0 percent. This is consistent with the underlying assumption that the

CPI in 2009 will be below the actual level achieved in the third quarter of 2008 and will not rise above that

2008 level until the second quarter of 2011.

Estimates presented in the sections that follow are based on the demographic and economic parameters

described in this section. For the purpose 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.
2009 SSI Annual Report

30

B. NUMBERS OF SSI PROGRAM RECIPIENTS

This section presents projections of the numbers of persons receiving Federal SSI payments by category

and age group.1 SSI recipients are categorized as (1) aged or (2) blind or disabled. The following paragraphs discuss the age groupings and recipient categories in more detail.

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

on meeting the age-65-or-older requirement2 and other SSI eligibility requirements including income

and resource limits. In December 2008, there were 1.203 million aged recipients of Federally-administered SSI payments. 

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

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

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

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

In December 2008, there were 6.317 million blind or disabled recipients of Federally-administered

SSI payments. 

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

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

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

earned income exclusion. After attaining age 65, these individuals generally continue to be classified as blind or disabled adults (rather than aged). In December 2008, there were 5.163 million

blind or disabled recipients of Federally-administered SSI payments age 18 or older, including 7

thousand students who used the special student earned income exclusion and 830 thousand disabled or blind recipients age 65 or older.

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

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

these individuals continue to be eligible for SSI if they meet the definition of blindness or disability for individuals age 18 or older as well as other eligibility criteria and, as a result, are

reclassified as blind or disabled adults. In December 2008, there were 1.154 million blind or disabled recipients of Federally-administered SSI payments who were under age 18.

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

year of application. Figure IV.B1 presents the same information in graphical form. Recent historical data

indicate that the number of applications grew fairly rapidly beginning in calendar year 2002 and that this

growth continued through calendar year 2005. The rate of growth in applications slowed significantly

from 2005 to 2007, but increased significantly again in 2008, with the actual number of applications for

2008 coming in 2.8 percent higher than was estimated in the 2008 Annual Report, largely due to the economic recession. The fairly rapid growth in applications from 2002 to 2004 was largely attributable to two

main factors: (1) the downturn in the economy that began early in 2001 and (2) implementation of the signature proxy process3 introduced by SSA in June 2004. The more recent large increase in applications is

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

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

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

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

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

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

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

via the telephone. Previously, some portion of those telephone applicants never followed through with a signed paper application and as a result were not

counted as received applications. Under the signature proxy process, most of those previously uncounted applications are now reported in SSA workload

totals. However, many of these “new” applications are never completed with the required financial or medical evidence resulting in an increase in the number of recorded denials, but not a corresponding increase in the numbers of new SSI recipients.
31

2009 SSI Annual Report

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

Table IV.B1.—SSI Federally-Administered Applications,a Calendar Years 1974-2033

[In thousands]

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

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 b, c ...

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

Report.

c Includes conversions from State programs and applications received in 1973.

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

1975 b....... 94 276 258 443 15 d

d Fewer than 500.

238 145 1,086 382 1,468

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

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

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

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

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

1981 ......... 78 206 173 271 5 d 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 d 178 108 944 286 1,230

1985 ......... 114 294 297 409 7 d 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 d 146 76 1,072 222 1,294

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

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

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

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

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

1995 ......... 473 435 524 363 6 d 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 d 107 39 1,468 145 1,614

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

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

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

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

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

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

2006 ......... 415 437 584 484 4 d 109 41 1,925 150 2,075

2007 ......... 421 442 578 502 5 d 105 39 1,948 143 2,091

2008 ......... 434 482 593 535 5 d 109 38 2,048 147 2,195

Projected:

2009 ......... 458 524 630 594 6 d 114 39 2,212 152 2,364

2010 ......... 462 528 628 605 5 d 116 39 2,228 154 2,382

2011 ......... 457 515 605 598 6 d 126 39 2,181 164 2,345

2012 ......... 442 495 576 582 6 d 135 39 2,101 174 2,274

2013 ......... 412 460 531 547 6 d 140 39 1,955 178 2,133

2014 ......... 412 454 524 547 6 d 144 39 1,944 183 2,127

2015 ......... 415 452 524 549 6 d 149 39 1,946 188 2,135

2016 ......... 422 457 532 557 6 d 154 40 1,975 194 2,169

2017 ......... 427 462 537 559 7 d 159 41 1,992 200 2,192

2018 ......... 434 469 544 563 7 d 163 42 2,017 206 2,222

2019 ......... 438 473 546 565 7 d 169 43 2,030 212 2,242

2020 ......... 441 474 547 565 7 d 174 44 2,035 218 2,253

2021 ......... 443 476 548 564 7 d 179 46 2,039 225 2,264

2022 ......... 446 479 552 560 8 d 182 48 2,044 231 2,275

2023 ......... 448 480 558 554 8 d 186 50 2,049 236 2,285

2024 ......... 450 482 565 548 8 d 189 52 2,054 241 2,295

2025 ......... 452 483 573 543 8 d 192 54 2,059 247 2,305

2026 ......... 455 483 580 538 8 d 195 56 2,064 251 2,315

2027 ......... 457 484 586 534 8 d 196 58 2,070 255 2,324

2028 ......... 458 486 592 533 8 d 198 60 2,077 258 2,335

2029 ......... 460 488 596 533 8 d 198 63 2,085 260 2,345

2030 ......... 462 490 600 534 7 d 196 65 2,093 261 2,354

2031 ......... 463 493 603 536 7 d 194 67 2,103 261 2,363

2032 ......... 464 496 605 539 7 d 192 69 2,112 261 2,373

2033 ......... 466 499 609 541 7 d 190 71 2,121 261 2,383
2009 SSI Annual Report

32

presumed to be attributable to the worsening economy. During the projected recession, higher levels of

unemployment are assumed to result in further sharp temporary increases in applications above the general

trend level. The elevated levels are assumed to subside as the economy recovers, and to briefly drop below

the general trend level on the assumption that some of the earlier additional applications will be cases that

would have applied in a later year. In the longer term, applications are estimated to grow roughly in line

with overall population growth, although the trend level of applications reflects a permanent upward shift

due to the signature proxy process.

The adjudication of these applications involves an evaluation of levels of income and resources available

to the applicants, as well as other eligibility factors including marital and citizenship status and living

arrangements. In addition, over 90 percent of the applications are for disability benefits which generally

require an evaluation of an alleged impairment by the appropriate State DDS. 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 start receiving SSI

payments as a result of this decision process. Individuals are counted as of the first month that they move

into SSI payment status. For this reason, we refer to these individuals as “new recipients” rather than

“awards.”1 During the 2002 to 2004 period, growth in new recipients did not keep pace with the growth in

applications. From 2005 to 2007, the numbers of new recipients declined even though there were more

applications during this period than in the preceding years. There were two main factors contributing to

the slower growth for new recipients as compared to applications: (1) since 2001 there was substantial 

 Figure IV.B1.—SSI Federally-Administered Applications by Age Group, Calendar Years 1975-2035

[In thousands]

1 In addition, these counts differ slightly from other similar totals identified as “awards” and published by the Office of Research, Evaluation, and Statistics

(ORES) in the Annual Statistical Supplement to the Social Security Bulletin. The ORES totals are similar in concept to those used in this report, but differ

slightly due to the timing of the action being tabulated. For example, ORES does not count a disability benefit as being awarded until the disability decision

is made. In contrast, under the procedures used in this report, individuals first coming on the SSI rolls through a finding of presumptive disability would be

counted as a “new recipient” in the first month of presumptive disability payment.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Projected 75 or older
33

2009 SSI Annual Report

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

Table IV.B2.—SSI Federally-Administered New Recipients, Calendar Years 1974-2033

[In thousands]

Calendar year a

a Represents period in which first payment was made, not date of first eligibility for payments.

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

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

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 c ......

c Totals for 1974 include recipients converted from previous State programs as well as new recipients to the SSI program during 1974.

63 390 381 925 141 18 1,211 1,268 1,919 2,479 4,398

1975......... 58 133 105 272 16 d

d Fewer than 500.

216 131 584 347 931

1976......... 43 105 88 207 9 d 147 70 452 218 669

1977......... 48 104 84 184 8 1 140 69 429 209 637

1978......... 43 92 76 154 6 d 127 66 370 193 563

1979......... 44 87 62 133 4 d 116 53 330 169 499

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

1981......... 37 77 49 106 3 d 80 37 272 117 389

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

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

1984......... 47 109 78 142 4 d 131 78 380 209 589

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2004......... 183 138 202 231 4 d 78 27 757 105 862

2005......... 178 131 192 238 4 d 81 29 744 111 854

2006......... 175 128 190 243 3 d 81 28 739 109 849

2007......... 172 128 186 252 3 d 75 27 741 103 844

2008......... 183 146 204 289 4 d 79 26 825 105 930

Projected:

2009......... 198 155 212 315 5 d 82 27 884 109 994

2010......... 195 159 214 324 5 d 85 27 897 112 1,009

2011......... 193 156 206 320 6 d 94 28 881 122 1,003

2012......... 187 150 196 310 6 d 102 28 849 130 979

2013......... 174 139 179 288 6 d 106 28 786 134 919

2014......... 173 137 175 285 6 d 109 28 776 137 914

2015......... 174 136 175 285 6 d 112 29 776 141 917

2016......... 177 138 178 289 7 d 116 29 789 145 934

2017......... 178 140 179 291 7 d 119 30 794 149 944

2018......... 180 142 181 294 7 d 123 31 804 153 958

2019......... 182 143 182 295 7 d 127 32 809 158 967

2020......... 183 143 182 294 7 d 130 32 810 163 973

2021......... 184 144 182 293 8 d 134 33 811 167 979

2022......... 185 145 183 291 8 d 136 35 813 171 984

2023......... 186 145 185 288 8 d 139 37 813 175 989

2024......... 187 146 188 286 8 d 141 38 814 179 993

2025......... 188 146 190 283 8 d 143 39 815 183 998

2026......... 189 146 193 280 8 d 145 41 816 186 1,002

2027......... 191 146 194 277 8 d 146 42 816 188 1,004

2028......... 191 147 196 276 8 d 147 44 817 190 1,007

2029......... 192 147 197 275 8 d 147 45 819 192 1,011

2030......... 192 148 198 276 7 d 145 47 822 192 1,014

2031......... 193 149 199 276 7 d 143 48 825 191 1,016

2032......... 194 150 200 277 7 d 141 50 828 191 1,019

2033......... 194 150 201 278 7 d 140 51 831 191 1,022
2009 SSI Annual Report

34

growth in the numbers of claims pending adjudication which was consistent with a longer lag time

between application and the allowance decision; and (2) since the introduction of the signature proxy process there was a significant increase in the numbers of denials for applications where the applicant did not

meet the nonmedical criteria, causing a permanent downward shift in the allowance rate. In 2008, however, there was a substantial increase in the numbers of new recipients which was likely attributable to:

(1) the sharp increase in applications, (2) improvements in claims processing, and (3) an initiative to accelerate the processing of cases pending adjudication thereby resulting in an increase in the number of adjudications and allowances during this period. Over the next several years, the numbers of new recipients are

projected to increase in a fashion similar to the growth in applications described above, reaching its peak

in 2010 and dropping to a relative low point by 2014. Over the longer term the numbers of new recipients

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

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 a redetermination of the recipient’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, as a

result of a continuing disability review.1 For example, disabled children, upon attainment of age 18, lose

eligibility if they do not qualify for benefits under the disabled adult eligibility criteria. For purposes of

this presentation, we refer to the net reduction in the number of SSI recipients in payment status during a

period as the number of SSI terminations for that period. 

In the following tables, we have separated the numbers of persons 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. 

 Figure IV.B2.—SSI Federally-Administered New Recipients by Age Group, Calendar Years 1975-2035

[In thousands]

1 Some historical details on income and resource redeterminations and the results of continuing disability reviews are presented in section V.D. Section V.E

presents information on certain incentive programs intended to encourage disabled SSI recipients to return to work.

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
35

2009 SSI Annual Report

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

Table IV.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2033

[In thousands]

Calendar year

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

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 ......... b 3 8 34 7 2 40 97 55 137 192

1975 ......... 1 5 12 35 10 2 39 108 65 147 212

1976 ......... 2 5 9 36 12 1 34 103 64 137 201

1977 ......... 1 5 12 30 15 1 36 101 65 137 203

1978 ......... 2 5 8 34 16 2 31 95 67 126 193

1979 ......... 2 6 9 32 18 2 29 92 67 121 189

1980 ......... 3 5 9 31 22 1 27 100 71 127 198

1981 ......... 3 5 8 31 24 2 21 92 73 112 186

1982 ......... 3 4 8 28 21 2 16 80 65 96 161

1983 ......... 3 6 8 25 21 3 15 79 65 94 158

1984 ......... 3 4 9 29 18 5 13 83 67 96 163

1985 ......... 2 6 10 29 24 6 17 84 77 101 178

1986 ......... 2 8 12 28 22 8 15 83 80 98 178

1987 ......... 3 8 13 30 23 10 15 82 87 97 184

1988 ......... 5 8 14 31 25 12 16 81 95 97 191

1989 ......... 3 8 16 33 23 12 15 78 95 93 187

1990 ......... 4 9 18 36 22 14 16 75 103 92 194

1991 ......... 4 9 20 39 23 17 17 74 112 91 203

1992 ......... 4 11 22 38 22 15 16 69 111 84 195

1993 ......... 6 13 27 41 23 17 16 72 127 88 215

1994 ......... 6 14 27 41 23 17 16 69 127 85 212

1995 ......... 6 13 30 43 24 18 16 65 135 81 216

1996 ......... 7 12 30 44 24 18 16 67 135 83 218

1997 ......... 5 10 24 43 24 19 15 64 127 79 206

1998 ......... 5 9 24 43 25 20 14 64 127 78 205

1999 ......... 5 9 25 45 25 21 13 63 131 76 207

2000 ......... 5 8 27 46 25 21 12 61 132 73 205

2001 ......... 5 8 28 47 25 22 11 60 135 71 207

2002 ......... 5 8 28 49 24 21 11 58 135 70 205

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

2004 ......... 5 8 27 52 25 22 10 56 140 65 205

2005 ......... 5 8 28 54 25 22 9 54 141 63 204

2006 ......... 5 8 27 55 25 22 9 54 143 62 205

2007 ......... 5 8 26 57 25 23 8 54 145 62 207

2008 ......... 5 8 25 60 25 21 8 53 144 62 206

Projected:

2009 ......... 5 9 25 63 26 24 8 52 153 60 213

2010 ......... 5 10 25 66 26 24 8 52 156 59 215

2011 ......... 5 10 25 68 27 25 8 52 159 59 219

2012 ......... 5 10 24 70 27 25 8 51 163 59 222

2013 ......... 5 10 24 72 28 26 8 51 165 59 224

2014 ......... 5 10 23 73 29 26 8 51 166 59 225

2015 ......... 5 10 23 73 30 26 8 51 167 59 226

2016 ......... 5 10 22 73 31 27 9 50 168 59 227

2017 ......... 5 10 22 73 32 27 9 50 169 59 228

2018 ......... 5 10 22 72 33 27 9 50 170 59 229

2019 ......... 5 10 22 72 34 28 9 50 171 59 230

2020 ......... 5 10 22 71 35 28 10 50 172 60 231

2021 ......... 4 10 22 71 36 29 10 50 173 60 233

2022 ......... 4 10 22 70 37 30 10 50 173 61 234

2023 ......... 4 10 22 69 37 31 10 51 174 61 235

2024 ......... 4 10 22 68 38 32 11 52 175 62 237

2025 ......... 4 10 23 67 39 33 11 52 175 63 238

2026 ......... 4 10 23 66 39 34 11 53 176 64 240

2027 ......... 4 10 23 65 39 35 11 54 176 65 242

2028 ......... 4 10 23 64 39 36 11 55 177 66 243

2029 ......... 4 10 23 64 39 37 11 57 177 68 245

2030 ......... 4 10 23 63 39 39 11 58 178 69 247

2031 ......... 4 10 23 63 39 40 11 60 179 71 249

2032 ......... 4 10 23 63 38 41 11 61 179 72 251

2033 ......... 4 10 23 63 37 43 11 63 180 74 253

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

b Fewer than 500.
2009 SSI Annual Report

36

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

Table IV.B4.—SSI Federally-Administered Terminations Due to Reasons Other Than Death, Calendar Years 1974-2033

[In thousands]

Calendar year

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

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ......... 5 33 34 69 12 2 27 29 154 56 210

1975 ......... 7 50 44 104 15 2 88 91 221 180 401

1976 ......... 11 70 61 139 24 1 107 133 306 240 546

1977 ......... 13 65 56 110 19 1 76 92 265 168 433

1978 ......... 11 64 49 97 18 1 64 86 241 150 391

1979 ......... 12 59 43 96 23 1 58 85 234 144 378

1980 ......... 19 48 43 80 23 1 44 77 214 121 334

1981 ......... 17 43 39 72 21 1 49 86 192 134 326

1982 ......... 19 48 43 79 23 1 50 87 212 137 348

1983 ......... 18 43 36 63 14 1 25 61 175 86 261

1984 ......... 13 51 37 77 21 1 37 60 200 98 298

1985 ......... 11 42 37 68 13 2 23 54 172 77 249

1986 ......... 18 49 47 73 16 3 34 60 206 94 300

1987 ......... 19 51 48 75 17 3 32 57 214 89 302

1988 ......... 19 52 51 74 15 5 33 59 216 93 309

1989 ......... 19 55 52 72 16 4 33 58 218 91 308

1990 ......... 14 52 57 73 17 8 40 68 221 108 330

1991 ......... 20 50 70 84 18 5 33 58 248 91 339

1992 ......... 39 68 94 103 19 8 34 56 329 90 419

1993 ......... 34 73 97 106 22 8 37 55 340 92 433

1994 ......... 41 73 101 107 18 8 32 49 348 81 429

1995 ......... 47 81 111 115 20 7 32 48 382 80 461

1996 ......... 47 89 128 119 21 8 29 49 413 78 491

1997 ......... 128 105 147 115 18 8 24 40 522 64 586

1998 ......... 67 89 112 110 19 8 22 38 406 61 466

1999 ......... 119 111 120 116 20 9 24 43 495 68 563

2000 ......... 84 99 111 112 22 9 22 38 437 61 498

2001 ......... 65 95 111 118 20 9 22 38 418 60 478

2002 ......... 78 100 122 133 20 9 20 35 463 55 517

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

2004 ......... 85 101 136 156 23 9 24 38 510 62 572

2005 ......... 64 101 129 157 20 8 15 30 479 45 524

2006 ......... 56 96 131 162 21 8 19 30 473 50 522

2007 ......... 46 108 124 160 20 8 18 29 466 48 513

2008 ......... 63 112 131 185 20 8 18 27 518 45 563

Projected:

2009 ......... 45 103 123 201 22 9 18 30 501 48 549

2010 ......... 54 114 123 203 21 9 20 30 523 50 573

2011 ......... 54 118 120 200 21 9 21 31 521 52 573

2012 ......... 60 117 112 181 22 9 23 34 501 57 558

2013 ......... 64 125 119 195 23 10 24 34 535 57 593

2014 ......... 67 129 117 199 24 10 24 34 547 58 605

2015 ......... 79 133 114 198 25 11 25 36 560 61 620

2016 ......... 92 136 114 198 27 11 26 37 578 62 641

2017 ......... 83 140 117 202 28 12 26 37 582 63 645

2018 ......... 74 142 118 202 29 12 27 37 577 63 640

2019 ......... 77 142 118 201 31 12 27 36 581 64 644

2020 ......... 76 145 119 202 33 13 29 37 587 65 652

2021 ......... 76 145 120 201 33 13 30 37 587 67 654

2022 ......... 76 146 121 199 34 13 30 39 590 69 658

2023 ......... 76 147 123 197 35 14 31 40 592 70 662

2024 ......... 76 148 125 195 36 14 32 41 594 72 666

2025 ......... 77 148 127 193 36 15 32 42 595 74 669

2026 ......... 77 148 129 191 37 15 33 43 597 76 673

2027 ......... 77 148 131 190 37 16 33 45 599 78 677

2028 ......... 78 148 132 189 38 17 34 46 601 80 680

2029 ......... 78 148 133 188 38 17 34 48 603 81 684

2030 ......... 79 149 134 188 37 18 34 49 605 83 688

2031 ......... 79 149 135 189 37 19 34 51 608 85 692

2032 ......... 80 150 135 190 37 19 34 53 611 86 697

2033 ......... 80 151 136 190 36 20 33 54 613 88 701
37

2009 SSI Annual Report

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

Actual numbers of terminations increased in 2008 compared to 2007. This increase appears to be attributable to a modest increase in nonmedical redeterminations processed in fiscal year 2008. Thereafter, projected terminations reflect an assumed gradual return to processing schedules for both continuing

disability reviews and nonmedical redeterminations consistent with more resources being made available

to SSA to carry out these legislatively mandated workloads.

Table IV.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2033

[In thousands]

Calendar year

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

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ........ 5 36 42 103 19 4 67 126 209 193 402

1975 ........ 8 55 56 140 25 3 127 199 287 326 613

1976 ........ 13 75 71 174 35 3 141 236 371 377 748

1977 ........ 14 71 68 140 34 3 112 194 330 305 636

1978 ........ 14 70 58 130 34 3 94 181 308 276 584

1979 ........ 13 65 52 128 41 2 88 177 301 265 566

1980 ........ 22 53 52 111 45 2 70 177 284 248 532

1981 ........ 20 48 47 103 45 3 69 177 266 246 512

1982 ........ 21 52 51 107 43 2 65 168 277 233 510

1983 ........ 21 49 44 87 34 4 39 140 240 180 419

1984 ........ 16 55 46 106 39 6 50 144 267 194 461

1985 ........ 13 47 47 97 37 8 40 138 249 178 427

1986 ........ 21 58 59 101 38 11 48 143 287 192 478

1987 ........ 22 59 61 106 40 13 47 138 301 185 486

1988 ........ 24 60 65 105 39 18 49 140 311 189 500

1989 ........ 22 63 69 105 39 15 47 136 312 183 496

1990 ........ 18 61 75 109 39 22 56 144 324 200 524

1991 ........ 25 60 90 123 40 22 50 132 360 182 542

1992 ........ 42 78 115 140 41 23 50 125 440 175 614

1993 ........ 40 86 124 148 45 24 54 127 467 181 648

1994 ........ 47 87 128 148 41 24 48 118 475 166 642

1995 ........ 54 94 142 158 44 25 47 113 517 160 677

1996 ........ 54 101 158 163 45 27 45 116 548 161 710

1997 ........ 133 116 172 159 43 26 39 105 648 143 792

1998 ........ 73 98 136 153 44 29 36 102 533 138 671

1999 ........ 124 120 146 161 45 31 38 106 626 144 770

2000 ........ 89 107 138 159 46 29 35 99 569 134 703

2001 ........ 70 103 139 166 45 31 34 98 554 132 685

2002 ........ 83 108 150 182 44 30 31 93 598 124 722

2003 ........ 76 104 149 186 46 30 31 92 591 122 713

2004 ........ 90 109 163 208 48 31 34 93 650 127 777

2005 ........ 69 109 157 211 45 30 24 84 621 107 728

2006 ........ 61 104 158 217 46 31 28 84 615 112 727

2007 ........ 51 116 150 218 46 31 27 83 610 110 720

2008 ........ 68 120 155 245 45 29 26 80 663 106 769

Projected:

2009 ........ 50 112 148 264 48 32 26 82 653 108 762

2010 ........ 59 124 148 268 47 33 28 82 679 109 788

2011 ........ 59 128 144 268 48 34 29 83 680 111 792

2012 ........ 65 127 136 251 50 34 31 85 663 116 780

2013 ........ 69 136 143 267 51 35 32 85 700 116 817

2014 ........ 72 140 140 272 53 36 32 85 713 118 830

2015 ........ 84 143 137 271 55 37 33 86 727 120 846

2016 ........ 97 146 136 271 58 38 34 87 746 121 868

2017 ........ 88 151 139 274 60 39 35 87 751 122 873

2018 ........ 78 152 140 275 62 39 36 87 747 122 869

2019 ........ 81 153 140 273 65 40 37 86 752 123 875

2020 ........ 80 155 141 273 68 41 39 86 759 125 883

2021 ........ 81 155 142 271 69 42 40 87 760 127 887

2022 ........ 81 156 143 269 71 43 40 89 763 129 892

2023 ........ 81 157 145 266 72 45 41 91 766 132 898

2024 ........ 81 158 147 263 74 46 42 92 768 134 903

2025 ........ 81 158 149 260 75 48 43 94 771 137 908

2026 ........ 81 158 152 257 76 49 44 96 773 140 913

2027 ........ 81 158 154 255 76 51 44 99 775 143 918

2028 ........ 82 158 155 253 77 53 45 102 777 146 924

2029 ........ 82 158 156 252 77 55 45 104 780 149 929

2030 ........ 83 159 157 252 76 57 45 107 783 152 935

2031 ........ 83 159 158 252 76 59 45 110 786 155 941

2032 ........ 83 160 158 253 75 60 44 114 790 158 948

2033 ........ 84 161 159 253 74 62 44 117 793 161 954
2009 SSI Annual Report

38

Combining the number of persons coming on the SSI payment rolls during a year with the number of those

already receiving benefits at the beginning of the year, and subtracting the number leaving the rolls during

the year, yields the number of persons receiving Federally-administered SSI payments at the end of the

specified period. Individuals receiving Federal SSI payments, who comprise the great majority of Federally-administered recipients, are presented in table IV.B6 and in figure IV.B4. The net effect of actual

experience in 2008 was that the number of Federal SSI recipients at the end of 2008 was about 2.2 percent

higher than the corresponding number at the end of 2007, but relatively close to what was projected in last

year’s report.

 Figure IV.B3.—SSI Federally-Administered Terminations by Age Group, Calendar Years 1975-2035

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2033

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ......... 70 338 321 756 109 13 1,010 1,019 1,606 2,029 3,635

1975 ......... 106 395 352 838 164 14 963 1,062 1,869 2,025 3,893

1976 ......... 124 420 352 813 208 14 864 1,003 1,932 1,867 3,799

1977 ......... 147 442 358 800 249 16 785 980 2,013 1,765 3,778

1978 ......... 165 460 361 791 277 16 728 958 2,069 1,686 3,755

1979 ......... 176 472 359 764 307 16 656 938 2,094 1,593 3,687

1980 ......... 188 500 351 750 342 17 609 925 2,149 1,533 3,682

1981 ......... 194 514 349 720 366 17 541 888 2,160 1,430 3,590

1982 ......... 191 517 346 683 386 21 459 871 2,144 1,329 3,473

1983 ......... 198 555 366 692 412 28 449 890 2,250 1,339 3,590

1984 ......... 210 595 393 700 406 48 463 884 2,352 1,347 3,699

1985 ......... 226 634 426 717 402 72 462 860 2,477 1,322 3,799

1986 ......... 240 688 475 739 397 91 465 827 2,630 1,291 3,922

1987 ......... 249 717 524 756 392 113 464 804 2,751 1,268 4,019

1988 ......... 254 738 564 774 387 127 468 777 2,844 1,245 4,089

1989 ......... 263 757 613 799 382 145 488 760 2,959 1,247 4,206

1990 ......... 306 788 677 840 389 156 508 749 3,156 1,257 4,412

1991 ......... 395 833 769 897 390 166 542 736 3,451 1,279 4,730

1992 ......... 555 920 877 970 402 173 577 727 3,898 1,304 5,202

1993 ......... 721 990 979 1,034 410 179 604 720 4,312 1,324 5,636

1994 ......... 839 1,032 1,071 1,089 425 182 610 716 4,638 1,326 5,965

1995 ......... 915 1,058 1,150 1,134 435 188 601 713 4,880 1,315 6,194

1996 ......... 954 1,066 1,198 1,176 444 192 586 711 5,029 1,296 6,326

1997 ......... 878 1,039 1,196 1,198 457 193 547 704 4,960 1,251 6,212

1998 ......... 885 1,038 1,238 1,243 464 197 521 705 5,063 1,226 6,289

1999 ......... 845 1,005 1,274 1,278 474 195 499 704 5,072 1,203 6,275

0

500

1,000

1,500

2,000

2,500

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Calendar year

Historical Projected

75 or older

35-49

65-74

50-64

18-34

0-17
39

2009 SSI Annual Report

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

Historical data: (Cont.)

2000 ......... 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

2001 ......... 879 995 1,329 1,353 493 196 461 703 5,245 1,165 6,410

2002 ......... 912 1,002 1,344 1,394 502 200 447 705 5,354 1,152 6,505

2003 ......... 956 1,023 1,353 1,436 511 204 430 703 5,482 1,133 6,614

2004 ......... 990 1,044 1,350 1,476 515 208 412 699 5,584 1,111 6,695

2005 ......... 1,034 1,065 1,347 1,523 522 215 408 705 5,706 1,113 6,819

2006 ......... 1,076 1,095 1,334 1,575 529 220 405 704 5,830 1,109 6,939

2007 ......... 1,119 1,124 1,316 1,634 540 228 397 704 5,960 1,101 7,061

2008 ......... 1,151 1,173 1,306 1,704 550 234 396 704 6,119 1,100 7,219

Projected:

2009 ......... 1,213 1,241 1,309 1,785 561 239 401 703 6,348 1,104 7,452

2010 ......... 1,259 1,302 1,312 1,868 571 246 403 705 6,558 1,107 7,665

2011 ......... 1,302 1,356 1,312 1,940 590 251 413 704 6,751 1,117 7,868

2012 ......... 1,333 1,401 1,312 2,009 617 257 427 702 6,930 1,129 8,059

2013 ......... 1,347 1,425 1,291 2,044 642 263 444 700 7,012 1,143 8,155

2014 ......... 1,355 1,443 1,272 2,068 667 267 463 697 7,071 1,160 8,231

2015 ......... 1,349 1,457 1,264 2,083 692 271 484 695 7,116 1,179 8,295

2016 ......... 1,330 1,472 1,268 2,091 721 275 507 693 7,156 1,200 8,356

2017 ......... 1,322 1,481 1,275 2,090 750 280 527 696 7,198 1,224 8,422

2018 ......... 1,325 1,493 1,283 2,088 780 284 548 703 7,253 1,252 8,505

2019 ......... 1,325 1,505 1,290 2,087 810 290 573 710 7,308 1,283 8,591

2020 ......... 1,327 1,512 1,296 2,085 840 296 600 717 7,357 1,317 8,674

2021 ......... 1,329 1,522 1,305 2,077 867 306 618 735 7,406 1,353 8,760

2022 ......... 1,331 1,532 1,319 2,061 890 321 629 762 7,454 1,391 8,845

2023 ......... 1,332 1,541 1,337 2,042 914 333 644 787 7,499 1,431 8,930

2024 ......... 1,334 1,548 1,359 2,021 936 345 658 813 7,543 1,471 9,014

2025 ......... 1,338 1,549 1,383 2,000 957 357 673 840 7,585 1,513 9,098

2026 ......... 1,343 1,551 1,406 1,980 975 371 686 869 7,626 1,555 9,181

2027 ......... 1,351 1,553 1,424 1,963 988 385 697 899 7,665 1,596 9,261

2028 ......... 1,360 1,556 1,440 1,950 999 400 706 931 7,704 1,637 9,340

2029 ......... 1,368 1,559 1,452 1,942 1,004 415 712 963 7,742 1,675 9,417

2030 ......... 1,377 1,565 1,461 1,943 1,003 430 715 997 7,779 1,712 9,491

2031 ......... 1,386 1,571 1,470 1,949 997 445 715 1,031 7,817 1,745 9,562

2032 ......... 1,394 1,577 1,478 1,957 988 460 711 1,064 7,854 1,775 9,629

2033 ......... 1,401 1,584 1,487 1,965 979 474 706 1,097 7,891 1,803 9,693

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

as of December, 1975-2035

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2033 (Cont.)

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Projected
2009 SSI Annual Report

40

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. From

the end of 2000 to the end of 2008, the growth rate for the Federal SSI recipient population averaged

1.7 percent per year. However, as described earlier, the impact of the ongoing economic recession on

applications and new recipients is projected to result in more rapid growth with year-to-year increases

from the end of 2008 through the end of 2012 averaging approximately 2.8 percent. By 2018, the growth

in the projected numbers of Federal SSI recipients gradually returns to a rate of about 1 percent per year

over the remainder of the 25-year projection period. In order to place this projected growth in the context

of overall population growth, table IV.B7 and figure IV.B5 present Federal SSI recipients as percentages of

selected Social Security Area population totals.

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

Selected Social Security Area Population Totals, as of December, 1974-2033

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

disableda Agedb Allc

Historical data:

1974 ........ 0.10 0.56 0.88 2.29 0.77 0.14 7.21 11.26 0.72 8.80 1.63

1975 ........ .15 .63 .97 2.51 1.14 .15 6.71 11.42 .83 8.56 1.73

1976 ........ .18 .65 .96 2.42 1.42 .14 5.90 10.46 .85 7.71 1.67

1977 ........ .22 .67 .97 2.36 1.66 .17 5.23 9.98 .88 7.11 1.65

1978 ........ .25 .68 .96 2.32 1.81 .16 4.75 9.50 .89 6.63 1.62

1979 ........ .27 .68 .94 2.23 1.97 .15 4.19 9.04 .90 6.13 1.58

1980 ........ .29 .71 .90 2.18 2.14 .16 3.82 8.68 .91 5.77 1.56

1981 ........ .30 .72 .87 2.09 2.26 .16 3.34 8.09 .91 5.26 1.50

1982 ........ .29 .71 .83 1.99 2.34 .19 2.78 7.70 .89 4.78 1.44

1983 ........ .30 .76 .85 2.02 2.46 .24 2.68 7.65 .92 4.72 1.47

1984 ........ .32 .81 .88 2.05 2.39 .40 2.73 7.40 .96 4.66 1.50

1985 ........ .35 .86 .92 2.11 2.32 .58 2.67 7.01 1.00 4.47 1.53

1986 ........ .37 .94 .99 2.18 2.26 .73 2.64 6.58 1.05 4.28 1.56

1987 ........ .38 .97 1.06 2.24 2.20 .87 2.59 6.25 1.09 4.12 1.59

1988 ........ .38 1.00 1.10 2.29 2.14 .97 2.59 5.89 1.11 3.98 1.60

1989 ........ .40 1.03 1.16 2.36 2.09 1.07 2.67 5.61 1.14 3.92 1.63

1990 ........ .45 1.08 1.24 2.47 2.10 1.12 2.74 5.40 1.21 3.88 1.69

1991 ........ .58 1.15 1.36 2.62 2.08 1.17 2.89 5.19 1.30 3.88 1.79

1992 ........ .80 1.29 1.51 2.79 2.12 1.19 3.05 5.00 1.46 3.89 1.94

1993 ........ 1.02 1.40 1.64 2.91 2.15 1.21 3.16 4.85 1.59 3.90 2.08

1994 ........ 1.17 1.48 1.75 3.02 2.22 1.20 3.19 4.72 1.70 3.87 2.18

1995 ........ 1.27 1.53 1.82 3.09 2.27 1.21 3.14 4.60 1.77 3.79 2.25

1996 ........ 1.31 1.55 1.86 3.11 2.33 1.21 3.07 4.48 1.80 3.71 2.27

1997 ........ 1.20 1.52 1.84 3.04 2.41 1.19 2.89 4.34 1.76 3.56 2.21

1998 ........ 1.20 1.52 1.88 3.05 2.46 1.19 2.77 4.27 1.78 3.47 2.21

1999 ........ 1.14 1.47 1.91 3.02 2.54 1.16 2.67 4.19 1.77 3.39 2.19

2000 ........ 1.14 1.45 1.94 3.00 2.60 1.14 2.59 4.10 1.77 3.31 2.18

2001 ........ 1.18 1.45 1.97 2.98 2.65 1.12 2.48 4.01 1.79 3.22 2.19

2002 ........ 1.22 1.45 1.99 2.97 2.69 1.12 2.40 3.95 1.81 3.16 2.21

2003 ........ 1.27 1.47 2.00 2.95 2.72 1.12 2.29 3.89 1.84 3.07 2.22

2004 ........ 1.31 1.50 2.00 2.93 2.72 1.13 2.17 3.80 1.86 2.98 2.23

2005 ........ 1.36 1.52 1.99 2.92 2.72 1.16 2.12 3.79 1.88 2.94 2.25

2006 ........ 1.41 1.55 1.97 2.92 2.70 1.18 2.06 3.76 1.90 2.89 2.26

2007 ........ 1.47 1.58 1.96 2.94 2.66 1.22 1.96 3.76 1.93 2.83 2.28

2008 ........ 1.51 1.62 1.96 2.99 2.62 1.25 1.88 3.77 1.96 2.77 2.31

Projected:

2009 ........ 1.58 1.69 1.98 3.04 2.59 1.28 1.85 3.76 2.02 2.74 2.37

2010 ........ 1.64 1.76 2.01 3.09 2.56 1.31 1.81 3.76 2.06 2.70 2.41

2011 ........ 1.69 1.81 2.02 3.15 2.54 1.34 1.78 3.75 2.11 2.66 2.45

2012 ........ 1.72 1.85 2.04 3.22 2.52 1.36 1.74 3.72 2.14 2.60 2.49

2013 ........ 1.73 1.87 2.02 3.23 2.50 1.38 1.73 3.67 2.15 2.56 2.50

2014 ........ 1.73 1.88 1.99 3.23 2.49 1.39 1.73 3.62 2.15 2.52 2.50

2015 ........ 1.71 1.89 1.98 3.22 2.48 1.39 1.74 3.56 2.14 2.49 2.50

2016 ........ 1.67 1.90 1.98 3.22 2.49 1.38 1.75 3.49 2.14 2.46 2.50

2017 ........ 1.65 1.90 1.98 3.21 2.50 1.37 1.76 3.42 2.13 2.43 2.50

2018 ........ 1.65 1.91 1.98 3.21 2.52 1.36 1.77 3.35 2.13 2.41 2.50

2019 ........ 1.64 1.92 1.99 3.20 2.53 1.35 1.79 3.30 2.13 2.39 2.50
41

2009 SSI Annual Report

For the totals shown in table IV.B7, the percentages are calculated using the population age group totals

corresponding to the age groups in the Federal recipient categories. Because the ratios for the separate

recipient categories are computed as percentages of differing base populations, the percentage for the total

SSI recipient population is not the arithmetic sum of the percentages for the respective recipient categories. As indicated in the table, the percentage of the total Social Security Area population who were receiving Federal SSI payments declined from 1975 through the early 1980s. In 1983, this percentage started

increasing and continued to increase through 1996. Due to factors described previously, the percentage of

the total population receiving Federal SSI payments declined in 1997, but leveled out over the next few

years. It has increased slightly over the past few years and is expected to increase gradually over the projection period, due largely to the changing age distribution of the underlying population. 

The various subcategories of Federal SSI recipients, however, follow significantly different growth patterns in relationship to their respective population totals. The aged Federal SSI recipient population

declines steadily as a percentage of the 65 or older population throughout the historical period and most of

the projection period, with the decline leveling off near the end of the projection period. In contrast, except

for decreases in the late 1990s 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 throughout the historical period as a percentage of the under age 18 population,

with the increase being quite steep in the early 1990s. The total blind or disabled Federal SSI recipient

population as a percentage of the total population remained fairly level until the early 1980s when it

started increasing and continued to increase through 1996. After the modest decrease in the late 1990s due

to the implementation of legislation described in other sections, the number of blind or disabled persons

receiving Federal SSI payments began a gradual increase as a percentage of the total population that is

estimated to continue through 2014, reaching more than 2.1 percent of the total population. In the later

years of the projection period, the percentage is expected to gradually decline under the assumption that

SSA will receive the resources necessary to carry out the normal CDR and nonmedical redetermination

workloads.

Projected: (Cont.)

2020 ........ 1.63 1.92 1.99 3.19 2.53 1.34 1.80 3.26 2.13 2.38 2.51

2021 ........ 1.62 1.92 2.00 3.19 2.54 1.34 1.81 3.21 2.12 2.37 2.51

2022 ........ 1.61 1.93 2.00 3.18 2.55 1.34 1.80 3.17 2.12 2.36 2.52

2023 ........ 1.61 1.93 2.01 3.18 2.56 1.33 1.81 3.15 2.12 2.36 2.52

2024 ........ 1.60 1.93 2.02 3.17 2.57 1.33 1.81 3.13 2.11 2.36 2.53

2025 ........ 1.60 1.93 2.03 3.17 2.57 1.32 1.81 3.11 2.11 2.36 2.53

2026 ........ 1.60 1.93 2.03 3.16 2.58 1.32 1.81 3.10 2.11 2.36 2.54

2027 ........ 1.60 1.93 2.04 3.16 2.57 1.32 1.82 3.09 2.10 2.36 2.54

2028 ........ 1.60 1.92 2.04 3.16 2.57 1.32 1.82 3.08 2.10 2.37 2.54

2029 ........ 1.60 1.92 2.05 3.15 2.57 1.32 1.82 3.07 2.10 2.38 2.55

2030 ........ 1.61 1.92 2.05 3.15 2.56 1.32 1.83 3.06 2.09 2.39 2.55

2031 ........ 1.61 1.91 2.05 3.15 2.56 1.32 1.83 3.06 2.09 2.40 2.55

2032 ........ 1.62 1.91 2.05 3.15 2.55 1.32 1.84 3.05 2.09 2.41 2.56

2033 ........ 1.62 1.91 2.05 3.15 2.55 1.32 1.84 3.05 2.08 2.42 2.56

a Blind or disabled recipients as a percentage of the total Social Security Area population.

b Aged recipients as a percentage of the 65 or older Social Security Area population.

c Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations.

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

Selected Social Security Area Population Totals, as of December, 1974-2033 (Cont.)

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

disableda Agedb Allc
2009 SSI Annual Report

42

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B8.

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

Selected Social Security Area Population Age Groups, as of December, 1975-2035

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

in Current-Payment Status as of December, 1974-2033

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ......... 1 12 20 57 13 1 138 120 104 257 361

1975 ......... 1 15 25 74 21 2 144 138 139 282 421

1976 ......... 1 14 27 87 26 2 134 146 156 280 437

1977 ......... 1 16 27 94 35 2 136 150 174 286 460

1978 ......... 1 16 26 93 41 2 127 155 180 282 462

1979 ......... 1 18 25 89 49 2 121 157 184 278 462

1980 ......... 2 20 26 82 52 2 112 162 185 274 460

1981 ......... 1 19 26 75 58 2 94 155 181 248 429

1982 ......... 1 18 23 68 53 2 82 137 165 219 384

1983 ......... 1 17 19 50 44 4 65 111 136 176 312

1984 ......... 1 18 23 50 47 7 68 116 147 184 331

1985 ......... 1 21 28 53 45 8 67 115 157 182 339

1986 ......... 1 23 31 55 45 11 66 116 166 182 348

1987 ......... 1 26 36 60 43 12 72 115 178 187 366

1988 ......... 1 26 42 59 44 14 74 114 187 188 375

1989 ......... 2 28 45 60 45 16 76 115 195 192 387

1990 ......... 2 31 54 60 44 17 82 116 208 197 405

1991 ......... 2 29 54 59 42 17 78 108 203 186 389

1992 ......... 2 29 55 59 37 16 70 97 197 167 364

1993 ......... 2 29 58 59 34 15 64 88 197 151 348

1994 ......... 2 28 59 56 32 14 59 81 192 139 331

1995 ......... 3 25 59 56 32 14 54 77 188 131 320

1996 ......... 2 21 54 53 29 13 49 68 172 116 288

1997 ......... 2 20 55 53 29 13 46 65 172 111 283

1998 ......... 2 18 54 55 28 13 43 63 171 106 277

1999 ......... 2 18 57 58 28 13 43 62 177 105 282

2000 ......... 2 17 57 60 29 13 42 61 179 103 282

2001 ......... 2 17 56 62 29 12 41 59 179 100 278

2002 ......... 3 17 57 64 30 12 42 58 183 100 283

2003 ......... 3 18 58 67 30 12 42 58 188 100 288

2004 ......... 3 18 58 70 31 12 43 58 193 100 293

2005 ......... 3 18 56 73 31 12 44 58 193 102 295

2006 ......... 3 18 55 76 32 12 45 58 194 103 297

2007 ......... 2 18 53 77 32 12 46 57 195 103 298

2008 ......... 3 18 52 80 34 12 46 57 198 103 301

0%

2%

4%

6%

8%

10%

12%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Year

0-17

18-34

35-49

50-64

65-74

75 or older

Total

Historical Projected
43

2009 SSI Annual Report

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

The combined numbers of persons receiving either a Federal SSI payment or a Federally-administered

State supplement are displayed in table IV.B9.

In examining the numbers of SSI recipients in the recent past and projections of such numbers for the near

future, certain patterns are worth noting. The rapid increase in the total number of SSI recipients in the

early 1990s is a function of the growth in the numbers of disabled adults and children. The growth in the

numbers of children receiving SSI resulted in large part from the Supreme Court decision in the case of

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

growth in the numbers of disabled adults is a more complicated phenomenon which is not completely

understood. However, extensive research conducted under contract to SSA and the Department of Health

and Human Services suggests that this growth was the result of a combination of factors including (1)

demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term structural changes in the economy, and (4) changes in other support programs (in particular the reduction or

elimination of general assistance programs in certain States). The recent modest changes in program participation reflect the combined effects of recent legislation described in previous sections, along with

changes in some of the factors mentioned above.

Projected:

2009 ......... 3 19 51 82 33 12 44 56 201 100 301

2010 ......... 3 21 51 88 34 12 44 56 208 100 308

2011 ......... 3 22 51 92 35 12 45 56 215 101 316

2012 ......... 3 22 51 95 37 12 47 57 221 103 325

2013 ......... 3 23 50 97 39 13 49 57 225 106 331

2014 ......... 3 24 50 98 41 13 51 58 230 109 339

2015 ......... 3 24 51 100 43 13 54 58 234 112 345

2016 ......... 3 25 51 100 45 13 56 59 237 114 351

2017 ......... 3 25 51 100 46 14 58 60 239 117 356

2018 ......... 3 25 51 100 48 14 60 61 241 120 361

2019 ......... 3 25 51 100 50 14 62 62 243 124 367

2020 ......... 3 25 51 100 51 15 65 63 246 128 373

2021 ......... 3 26 52 99 53 15 66 65 248 132 380

2022 ......... 3 26 52 98 54 16 68 68 250 136 386

2023 ......... 3 26 53 98 56 17 69 70 252 140 392

2024 ......... 3 26 54 97 57 17 71 73 254 144 398

2025 ......... 3 26 55 96 58 18 72 75 256 148 404

2026 ......... 3 26 56 95 59 19 74 78 258 152 410

2027 ......... 3 26 57 94 60 19 75 81 259 156 415

2028 ......... 3 26 57 93 61 20 76 84 261 160 420

2029 ......... 3 26 58 93 61 21 76 87 262 163 425

2030 ......... 3 26 58 93 61 22 77 90 263 167 430

2031 ......... 3 26 59 93 60 22 77 93 264 170 434

2032 ......... 3 27 59 93 60 23 76 96 265 172 437

2033 ......... 3 27 59 94 59 24 76 99 266 175 441

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

in Current-Payment Status as of December, 1974-2033 (Cont.)

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All
2009 SSI Annual Report

44

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

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

as of December, 1974-2033

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ......... 71 349 341 813 122 14 1,148 1,138 1,710 2,286 3,996

1975 ......... 107 410 378 911 185 16 1,107 1,200 2,007 2,307 4,314

1976 ......... 125 434 379 900 234 15 999 1,149 2,088 2,148 4,236

1977 ......... 147 458 385 893 284 18 921 1,130 2,187 2,051 4,238

1978 ......... 166 476 387 884 319 17 855 1,113 2,249 1,968 4,217

1979 ......... 177 490 384 852 357 17 777 1,095 2,278 1,872 4,150

1980 ......... 190 521 377 833 393 20 721 1,086 2,334 1,808 4,142

1981 ......... 195 533 375 795 424 19 635 1,043 2,341 1,678 4,019

1982 ......... 192 535 369 751 439 23 541 1,008 2,309 1,549 3,858

1983 ......... 198 572 386 742 456 32 514 1,001 2,386 1,515 3,901

1984 ......... 212 613 417 751 453 54 531 999 2,499 1,530 4,029

1985 ......... 227 655 454 769 447 80 530 975 2,634 1,504 4,138

1986 ......... 241 711 506 794 442 102 531 942 2,796 1,473 4,269

1987 ......... 251 743 560 816 436 124 536 920 2,930 1,455 4,385

1988 ......... 255 764 606 833 431 142 543 891 3,030 1,433 4,464

1989 ......... 265 785 658 859 427 160 564 875 3,154 1,439 4,593

1990 ......... 309 819 731 900 432 172 589 865 3,363 1,454 4,817

1991 ......... 397 863 823 956 432 183 620 845 3,654 1,465 5,118

1992 ......... 556 949 932 1,029 440 189 647 824 4,095 1,471 5,566

1993 ......... 723 1,019 1,036 1,093 445 194 667 808 4,509 1,475 5,984

1994 ......... 841 1,060 1,130 1,146 457 196 669 797 4,830 1,466 6,296

1995 ......... 917 1,083 1,209 1,190 467 202 656 790 5,068 1,446 6,514

1996 ......... 955 1,087 1,252 1,229 472 205 634 778 5,201 1,413 6,614

1997 ......... 880 1,059 1,251 1,252 486 205 593 770 5,133 1,362 6,495

1998 ......... 887 1,056 1,292 1,298 492 209 564 768 5,234 1,332 6,566

1999 ......... 847 1,024 1,331 1,336 503 208 543 765 5,249 1,308 6,557

2000 ......... 847 1,011 1,360 1,373 513 209 525 764 5,312 1,289 6,602

2001 ......... 882 1,012 1,385 1,415 522 209 502 762 5,424 1,264 6,688

2002 ......... 915 1,019 1,401 1,458 532 212 489 763 5,536 1,252 6,788

2003 ......... 959 1,040 1,410 1,503 541 216 471 761 5,670 1,233 6,902

2004 ......... 993 1,062 1,408 1,546 546 221 455 756 5,777 1,211 6,988

2005 ......... 1,036 1,083 1,404 1,596 553 228 452 763 5,900 1,214 7,114

2006 ......... 1,079 1,113 1,388 1,651 560 232 450 762 6,024 1,212 7,236

2007 ......... 1,121 1,142 1,369 1,711 572 240 443 761 6,155 1,205 7,360

2008 ......... 1,154 1,191 1,358 1,784 584 246 442 761 6,317 1,203 7,521

Projected:

2009 ......... 1,216 1,260 1,360 1,867 594 251 445 759 6,548 1,204 7,753

2010 ......... 1,262 1,323 1,363 1,956 604 258 447 761 6,766 1,207 7,973

2011 ......... 1,305 1,378 1,363 2,032 625 263 458 760 6,966 1,218 8,185

2012 ......... 1,336 1,424 1,363 2,104 655 270 474 759 7,152 1,232 8,384

2013 ......... 1,350 1,448 1,341 2,141 681 276 493 757 7,237 1,250 8,486

2014 ......... 1,358 1,466 1,322 2,167 707 280 514 755 7,301 1,269 8,570

2015 ......... 1,352 1,481 1,315 2,182 735 284 538 753 7,350 1,290 8,640

2016 ......... 1,334 1,496 1,319 2,191 765 288 563 751 7,393 1,314 8,707

2017 ......... 1,326 1,506 1,326 2,190 796 293 585 756 7,437 1,341 8,777

2018 ......... 1,328 1,518 1,334 2,188 828 298 608 764 7,494 1,372 8,866

2019 ......... 1,328 1,530 1,342 2,187 860 305 635 772 7,551 1,407 8,958

2020 ......... 1,331 1,538 1,348 2,184 892 311 665 780 7,603 1,445 9,047

2021 ......... 1,333 1,548 1,356 2,176 921 321 685 800 7,654 1,485 9,139

2022 ......... 1,334 1,558 1,371 2,159 945 337 697 830 7,704 1,527 9,231

2023 ......... 1,335 1,567 1,390 2,139 970 350 713 858 7,751 1,570 9,322

2024 ......... 1,337 1,574 1,413 2,117 994 362 729 886 7,797 1,615 9,412

2025 ......... 1,341 1,575 1,438 2,095 1,016 375 745 916 7,841 1,661 9,502

2026 ......... 1,347 1,577 1,462 2,075 1,034 389 760 947 7,884 1,707 9,591

2027 ......... 1,354 1,579 1,481 2,057 1,048 405 772 980 7,925 1,752 9,677

2028 ......... 1,363 1,581 1,498 2,043 1,059 420 782 1,015 7,964 1,796 9,760

2029 ......... 1,372 1,586 1,510 2,035 1,065 436 788 1,050 8,003 1,839 9,842

2030 ......... 1,381 1,591 1,520 2,035 1,064 451 792 1,087 8,042 1,879 9,921

2031 ......... 1,390 1,597 1,528 2,041 1,057 467 791 1,124 8,081 1,915 9,995

2032 ......... 1,398 1,603 1,536 2,051 1,047 483 787 1,161 8,119 1,947 10,066

2033 ......... 1,405 1,610 1,546 2,059 1,039 498 781 1,196 8,157 1,977 10,134
45

2009 SSI Annual Report

C. FEDERAL PAYMENTS UNDER SSI

In order to estimate future amounts of Federal expenditures under SSI, the projected Federal benefit rates

shown in table IV.A2 are first modified to reflect actual payment levels, taking into account historical and

projected levels of adjustments for other actual or deemed income. Combining these actual payment levels

with the projected numbers of persons receiving Federal SSI payments yields estimates of the amounts of

Federal SSI payments. Historical amounts of such payments on a calendar year basis are shown in table

IV.C1. For purposes of this presentation, these payment amounts are computed on a cash-flow basis consistent with the concepts used to define SSI obligations for the Federal Budget. As a result, for months

after January 1978, SSI payments due on the first of the month are tabulated in the previous month, if the

first of the month falls on a weekend or Federal holiday.1

a 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.

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

c Payments for 2008 include $1.4 billion for SSI checks mailed in late December 2008, but reported by the Department of the Treasury in January 2009.

These checks are normally reported in December.

d Partially estimated.

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

Using this cash-flow concept causes these payments to differ from similar amounts shown in other Social

Security Administration publications, such as the Annual Statistical Supplement to the Social Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement are tabulated for

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,a Calendar Years 1974-2009

[In millions]

Calendar 

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1974........... $40 $438 $452 $968 $135 $17 $825 $958 $2,050 $1,783 $3,833

1975............ 128 537 499 1,099 190 17 812 1,031 2,471 1,843 4,314

1976............ 176 605 541 1,147 241 17 762 1,023 2,727 1,785 4,512

1977............ 227 671 579 1,174 298 17 721 1,016 2,966 1,737 4,703

1978 b ......... 302 781 655 1,312 381 18 736 1,111 3,449 1,847 5,296

1979........... 340 809 650 1,296 429 21 667 1,093 3,546 1,760 5,306

1980............ 397 931 731 1,420 544 28 642 1,230 4,051 1,872 5,923

1981............ 458 1,079 821 1,542 654 32 643 1,320 4,586 1,963 6,549

1982............ 512 1,211 883 1,590 704 38 630 1,364 4,937 1,994 6,931

1983............ 574 1,372 985 1,704 774 58 624 1,440 5,466 2,064 7,530

1984............ 659 1,576 1,128 1,835 836 102 670 1,512 6,136 2,182 8,318

1985............ 736 1,709 1,250 1,924 833 160 699 1,499 6,611 2,198 8,809

1986............ 831 1,929 1,452 2,043 848 209 731 1,479 7,312 2,210 9,522

1987............ 900 2,081 1,618 2,157 846 259 765 1,444 7,860 2,210 10,069

1988............ 955 2,228 1,818 2,303 874 304 814 1,449 8,481 2,263 10,744

1989............ 1,025 2,431 2,048 2,481 936 366 881 1,479 9,286 2,361 11,647

1990............ 1,201 2,660 2,395 2,792 969 407 987 1,532 10,423 2,519 12,943

1991............ 1,678 3,129 2,966 3,305 1,060 463 1,169 1,637 12,601 2,806 15,407

1992............ 3,154 3,900 3,577 3,790 1,124 487 1,303 1,690 16,033 2,993 19,026

1993............ 3,909 4,465 4,164 4,188 1,208 513 1,471 1,759 18,447 3,230 21,677

1994............ 4,167 4,504 4,666 4,533 1,274 538 1,566 1,814 19,682 3,380 23,063

1995............ 4,657 4,777 5,155 4,896 1,357 565 1,599 1,900 21,407 3,499 24,906

1996............ 4,947 5,004 5,614 5,298 1,427 590 1,643 1,977 22,880 3,621 26,501

1997............ 4,920 5,031 5,564 5,410 1,505 614 1,586 2,046 23,044 3,632 26,675

1998............ 4,965 5,150 5,901 5,777 1,588 635 1,542 2,136 24,017 3,678 27,695

1999............ 4,835 5,132 6,185 6,037 1,660 654 1,503 2,206 24,503 3,709 28,212

2000............ 4,789 5,121 6,404 6,293 1,717 675 1,470 2,309 24,999 3,779 28,778

2001............ 5,104 5,354 6,817 6,783 1,838 713 1,470 2,454 26,608 3,924 30,532

2002............ 5,353 5,484 7,048 7,131 1,909 738 1,433 2,520 27,663 3,953 31,616

2003............ 5,686 5,715 7,243 7,532 1,984 771 1,408 2,601 28,932 4,009 32,941

2004............ 6,036 5,954 7,384 7,943 2,054 809 1,366 2,657 30,179 4,023 34,202

2005............ 6,488 6,291 7,624 8,437 2,148 871 1,358 2,778 31,859 4,136 35,995

2006............ 6,948 6,656 7,760 8,943 2,235 924 1,413 2,895 33,467 4,308 37,775

2007............ 7,346 7,067 7,871 9,539 2,333 981 1,406 2,970 35,137 4,376 39,514

2008 c ......... 7,831 7,623 8,172 10,387 2,459 1,051 1,438 3,078 37,523 4,516 42,040

2009 c, d ..... 8,495 8,309 8,389 11,245 2,600 1,122 1,492 3,200 40,160 4,692 44,853
2009 SSI Annual Report

46

the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are

actually paid. In particular, since January 1 of each year is a Federal holiday, SSI payments due on

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

the calendar year 2008 payment amounts shown in table IV.C1 reflect payments made in January-December, 2008, and include the payments due on January 1, 2009 (which were actually paid in December,

2008), but not the payments due on January 1, 2008 (which were actually paid in December, 2007). Second, beginning in 1991, SSI obligations as accounted for in the Federal Budget are not reduced for certain

recovered overpayments which are remitted directly to the Department of the Treasury. The payments

shown in the Annual Statistical Supplement continue to report an amount which is reduced by such overpayment recoveries, as was done for the Budget prior to 1991.

Corresponding amounts of SSI outlays on a fiscal year1 basis are presented in table IV.C2 for fiscal years

1978-2009. 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.

a Payment due on October 1 of fiscal year paid in previous fiscal year.

b Partially estimated.

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

1 Fiscal years 1977 and later cover the 12-month period ending September 30. For example, fiscal year 2009 payments include payments made from October 1, 2008 through September 30, 2009.

2 Generally, for fiscal years 1979 and later, the number of months of payments included in the fiscal year is:

11 months if October 1 of the current, but not the succeeding fiscal year falls on a weekend;

12 months if October 1 of both the current and succeeding fiscal years falls during the week (all payments made in the fiscal year due);

12 months if October 1 of both the current and succeeding fiscal years falls on a weekend (both payments due on October 1 paid in preceding fiscal year);

and

13 months if October 1 of the succeeding, but not current, fiscal year falls on a weekend.

Table IV.C2.—SSI Federal Payments in Current Dollars, Fiscal Years 1978-2009

[In millions]

Fiscal

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1978............ $206 $740 $668 $1,438 $312 $22 $772 $1,076 $3,386 $1,848 $5,234

1979 a ......... 226 711 620 1,265 331 20 656 954 3,172 1,610 4,782

1980............ 372 877 698 1,360 506 26 629 1,184 3,840 1,813 5,653

1981............ 442 1,039 797 1,508 625 31 647 1,307 4,442 1,954 6,396

1982............ 499 1,181 861 1,570 693 36 640 1,356 4,840 1,996 6,836

1983............ 596 1,416 1,024 1,783 806 56 660 1,510 5,680 2,170 7,850

1984 a ......... 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 a ......... 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 a ......... 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 a ......... 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 a ......... 4,543 4,595 5,123 4,830 1,305 540 1,510 1,808 20,936 3,317 24,254

1997............ 4,933 5,004 5,529 5,340 1,478 606 1,602 2,027 22,890 3,629 26,519

1998............ 4,915 5,114 5,816 5,688 1,567 630 1,548 2,110 23,729 3,658 27,387

1999............ 4,901 5,152 6,123 5,975 1,638 648 1,506 2,180 24,438 3,685 28,123

2000............ 5,152 5,500 6,827 6,692 1,822 718 1,599 2,453 26,710 4,052 30,763

2001 a ......... 4,597 4,869 6,170 6,125 1,670 652 1,352 2,236 24,083 3,588 27,671

2002............ 5,290 5,456 6,998 7,041 1,889 731 1,444 2,500 27,405 3,944 31,349

2003............ 5,558 5,623 7,170 7,390 1,957 759 1,417 2,572 28,456 3,989 32,445

2004............ 5,910 5,868 7,327 7,797 2,031 796 1,380 2,638 29,729 4,018 33,748

2005............ 6,856 6,669 8,150 8,928 2,282 916 1,463 2,945 33,800 4,409 38,208

2006 a ......... 6,832 6,560 7,739 8,813 2,207 908 1,404 2,863 33,060 4,267 37,327

2007 a ......... 6,659 6,427 7,207 8,630 2,135 895 1,297 2,731 31,952 4,028 35,981

2008............ 7,651 7,411 8,063 10,106 2,416 1,027 1,419 3,035 36,673 4,454 41,127

2009 b ......... 8,391 8,211 8,445 11,126 2,591 1,118 1,500 3,214 39,882 4,715 44,597
47

2009 SSI Annual Report

When projecting dollar amounts over longer periods of time, the changing value of the dollar due to inflation can make meaningful comparisons of such amounts difficult. For this reason, in projecting SSI expenditures for 25 years, some means of removing inflation is generally desirable. The CPI, as discussed in

section IV.A, 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 1974-2008, and the full 25-year projection period, 2009-33. This same

information is presented in graphical form in figure IV.C1. Projections of the CPI used for this standardization are based on the intermediate economic assumptions of the 2009 OASDI Trustees Report.

The future growth in the “constant dollar” estimates is primarily attributable to the underlying growth in

the U.S. population as shown in table IV.A1. However, an additional contributing factor is the projected

growth in the number of SSI recipients as a percent of the population, as shown in table IV.B7. A notable

aspect of the time series of constant dollar estimates illustrated below is that there is a rather sharp level

increase from 2008 to 2009 in these amounts. This level shift is the result of the combination of the spike

in the CPI for the third quarter of calendar year 2008, which caused the large 5.8 percent benefit rate

increase for 2009, and the drop in the level of the CPI for 2009 after the 2008 spike.

 Figure IV.C1.—SSI Federal Payments, by Age Group, in Constant 2009 Dollars, Calendar Years 1975-2035

[In billions]

$0

$10

$20

$30

$40

$50

$60

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Calendar year

Constant 2009 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older Historical Projected
2009 SSI Annual Report

48

a The adjusted CPI is the CPI-W indexed to calendar year 2009. Projections of the adjusted CPI are based on the intermediate economic assumptions of the

2009 OASDI Trustees Report.

b Payment amounts include 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

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

Table IV.C3.—SSI Federal Payments in Constant 2009 Dollars, Calendar Years 1974-2033

[Payment amounts in millions]

Calendar year

Adjusteda

CPI 

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............ 23.70 $170 $1,846 $1,906 $4,086 $570 $73 $3,481 $4,041 $8,651 $7,522 $16,173

1975............ 25.87 496 2,076 1,929 4,247 734 67 3,140 3,984 9,550 7,124 16,673

1976............ 27.35 643 2,213 1,978 4,194 882 61 2,786 3,741 9,972 6,527 16,498

1977............ 29.12 781 2,303 1,988 4,032 1,022 60 2,477 3,487 10,185 5,963 16,149

1978 b......... 31.34 965 2,491 2,089 4,186 1,217 58 2,348 3,546 11,006 5,893 16,899

1979............ 34.92 973 2,318 1,862 3,712 1,230 60 1,909 3,131 10,155 5,040 15,195

1980............ 39.63 1,002 2,349 1,845 3,583 1,373 70 1,620 3,103 10,222 4,723 14,945

1981............ 43.69 1,049 2,469 1,879 3,530 1,497 72 1,471 3,022 10,496 4,493 14,989

1982............ 46.31 1,107 2,614 1,906 3,432 1,520 82 1,360 2,946 10,662 4,305 14,967

1983............ 47.72 1,202 2,875 2,064 3,571 1,622 121 1,308 3,017 11,455 4,325 15,780

1984............ 49.35 1,336 3,194 2,286 3,718 1,694 206 1,358 3,064 12,434 4,422 16,856

1985............ 51.10 1,440 3,344 2,446 3,766 1,630 313 1,368 2,933 12,939 4,301 17,240

1986............ 51.89 1,602 3,718 2,799 3,937 1,634 403 1,408 2,850 14,092 4,258 18,351

1987............ 53.76 1,673 3,870 3,010 4,012 1,574 482 1,424 2,686 14,621 4,110 18,732

1988............ 55.89 1,709 3,986 3,252 4,120 1,564 544 1,457 2,592 15,175 4,049 19,224

1989............ 58.58 1,750 4,149 3,495 4,234 1,598 624 1,504 2,525 15,851 4,029 19,880

1990............ 61.67 1,947 4,313 3,884 4,528 1,570 659 1,601 2,484 16,902 4,085 20,987

1991............ 64.16 2,616 4,877 4,623 5,151 1,653 721 1,822 2,552 19,640 4,374 24,014

1992............ 66.03 4,776 5,907 5,418 5,741 1,702 738 1,973 2,560 24,282 4,533 28,816

1993............ 67.89 5,758 6,576 6,133 6,169 1,780 756 2,167 2,590 27,172 4,757 31,929

1994............ 69.60 5,987 6,471 6,703 6,513 1,830 773 2,250 2,606 28,278 4,856 33,134

1995............ 71.57 6,507 6,674 7,203 6,841 1,896 790 2,234 2,655 29,910 4,889 34,800

1996............ 73.67 6,715 6,793 7,621 7,191 1,937 801 2,231 2,684 31,059 4,915 35,974

1997............ 75.30 6,534 6,681 7,390 7,185 1,998 815 2,106 2,717 30,603 4,823 35,426

1998............ 76.30 6,507 6,750 7,734 7,572 2,081 833 2,021 2,799 31,476 4,820 36,296

1999............ 78.01 6,198 6,578 7,928 7,739 2,128 838 1,927 2,828 31,409 4,755 36,164

2000............ 80.71 5,933 6,344 7,934 7,797 2,127 837 1,821 2,861 30,972 4,682 35,654

2001............ 82.93 6,155 6,456 8,220 8,179 2,216 860 1,773 2,959 32,086 4,732 36,819

2002............ 84.05 6,369 6,524 8,385 8,484 2,271 878 1,705 2,998 32,911 4,703 37,614

2003............ 85.93 6,617 6,650 8,429 8,765 2,309 898 1,638 3,026 33,669 4,665 38,333

2004............ 88.17 6,846 6,753 8,375 9,009 2,329 918 1,550 3,014 34,230 4,563 38,793

2005............ 91.27 7,108 6,893 8,353 9,244 2,354 955 1,488 3,044 34,907 4,532 39,439

2006............ 94.22 7,373 7,065 8,237 9,493 2,373 980 1,499 3,073 35,521 4,573 40,094

2007............ 96.90 7,581 7,293 8,123 9,844 2,407 1,013 1,451 3,065 36,260 4,516 40,776

2008............ 101.03 7,751 7,546 8,088 10,281 2,434 1,040 1,423 3,047 37,140 4,470 41,611

Projected:

2009............ 100.00 8,495 8,309 8,389 11,245 2,600 1,122 1,492 3,200 40,160 4,692 44,853

2010............ 101.65 8,881 8,727 8,455 11,771 2,655 1,161 1,502 3,237 41,650 4,739 46,389

2011............ 104.04 9,016 8,890 8,284 11,935 2,690 1,167 1,500 3,180 41,983 4,679 46,662

2012............ 106.85 9,214 9,089 8,208 12,201 2,797 1,192 1,533 3,157 42,702 4,690 47,392

2013............ 110.13 9,370 9,260 8,106 12,436 2,910 1,224 1,593 3,156 43,306 4,749 48,055

2014............ 113.51 9,474 9,381 7,997 12,586 3,035 1,251 1,666 3,165 43,723 4,831 48,555

2015............ 116.70 9,525 9,498 7,975 12,691 3,168 1,280 1,749 3,179 44,138 4,928 49,065

2016............ 119.97 9,457 9,612 8,023 12,754 3,312 1,306 1,838 3,191 44,465 5,029 49,494

2017............ 123.32 9,404 9,710 8,110 12,789 3,465 1,342 1,920 3,225 44,819 5,144 49,964

2018............ 126.78 9,446 9,802 8,189 12,789 3,621 1,374 2,001 3,267 45,219 5,268 50,487

2019............ 130.33 9,453 9,887 8,254 12,786 3,775 1,412 2,096 3,308 45,567 5,404 50,971

2020............ 133.98 9,494 9,966 8,326 12,805 3,939 1,451 2,203 3,356 45,981 5,560 51,541

2021............ 137.73 9,530 10,047 8,405 12,784 4,086 1,511 2,275 3,450 46,363 5,725 52,089

2022............ 141.58 9,565 10,131 8,524 12,713 4,215 1,595 2,319 3,585 46,742 5,904 52,646

2023............ 145.55 9,586 10,218 8,673 12,623 4,348 1,669 2,375 3,711 47,116 6,086 53,202

2024............ 149.62 9,612 10,283 8,844 12,524 4,481 1,742 2,433 3,843 47,486 6,276 53,762

2025............ 153.81 9,663 10,304 9,017 12,410 4,601 1,817 2,492 3,981 47,813 6,473 54,286

2026............ 158.12 9,677 10,304 9,159 12,280 4,693 1,894 2,544 4,129 48,007 6,673 54,680

2027............ 162.55 9,685 10,294 9,270 12,164 4,763 1,974 2,592 4,291 48,149 6,882 55,031

2028............ 167.10 9,700 10,283 9,358 12,059 4,813 2,055 2,630 4,455 48,269 7,085 55,354

2029............ 171.78 9,722 10,285 9,423 11,994 4,843 2,139 2,658 4,627 48,405 7,285 55,690

2030............ 176.59 9,741 10,290 9,463 11,970 4,837 2,222 2,676 4,799 48,523 7,475 55,999

2031............ 181.53 9,773 10,309 9,508 11,992 4,809 2,308 2,681 4,983 48,699 7,664 56,362

2032............ 186.62 9,800 10,334 9,552 12,036 4,768 2,395 2,672 5,171 48,884 7,843 56,727

2033............ 191.84 9,815 10,357 9,597 12,068 4,729 2,475 2,657 5,350 49,040 8,007 57,048
49

2009 SSI Annual Report

Although detailed projections of SSI State supplementary payments are not prepared, historical information on the amounts of such supplements administered by SSA is presented in table IV.C4. These amounts

are consistent with those presented in the Annual Statistical Supplement to the Social Security Bulletin and

are shown only for the two broad recipient categories.

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

Historical information on State-administered State supplementary payments was previously included in

this report, but is no longer included since complete data for all States is generally not available. Information on selected characteristics of State assistance programs for SSI recipients can be found in the Social

Security Administration publication, State Assistance Programs for SSI Recipients, January 2008.1

Table IV.C4.—SSI Federally-Administered State Supplementary Payments

in Current Dollars, Calendar Years 1974-2008

[In millions]

Calendar year Aged

Blind or

disabled Total

1974 ................................................ $631 $632 $1,264

1975 ................................................ 674 729 1,403

1976 ................................................ 635 753 1,388

1977 ................................................ 627 804 1,431

1978 ................................................ 636 855 1,491

1979 ................................................ 661 928 1,590

1980 ................................................ 757 1,091 1,848

1981 ................................................ 731 1,108 1,839

1982 ................................................ 694 1,104 1,798

1983 ................................................ 645 1,066 1,711

1984 ................................................ 645 1,148 1,792

1985 ................................................ 694 1,278 1,973

1986 ................................................ 759 1,484 2,243

1987 ................................................ 849 1,714 2,563

1988 ................................................ 873 1,798 2,671

1989 ................................................ 954 2,001 2,955

1990 ................................................ 1,038 2,201 3,239

1991 ................................................ 999 2,232 3,231

1992 ................................................ 1,023 2,412 3,435

1993 ................................................ 934 2,336 3,270

1994 ................................................ 876 2,240 3,116

1995 ................................................ 864 2,253 3,118

1996 ................................................ 833 2,155 2,988

1997 ................................................ 824 2,090 2,913

1998 ................................................ 838 2,165 3,003

1999 ................................................ 921 2,380 3,301

2000 ................................................ 943 2,439 3,381

2001 ................................................ 956 2,505 3,460

2002 ................................................ 1,051 2,768 3,820

2003 ................................................ 1,098 2,906 4,005

2004 ................................................ 1,133 3,045 4,178

2005 ................................................ 1,128 3,050 4,178

2006 ................................................ 1,147 3,006 4,153

2007 ................................................ 1,187 3,133 4,320

2008a...............................................

a Split between recipient categories is a preliminary estimate.

1,198 3,187 4,385

1 Publication No. 13-11975, prepared by the Office of Research, Evaluation, and Statistics, is available on the internet at http://www.socialsecurity.gov/

policy/docs/progdesc/ssi_st_asst/2008.
2009 SSI Annual Report

50

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

For SSI, an appropriate relative measure of program costs is produced by comparing estimated annual SSI

costs to the Gross Domestic Product (GDP)1. In addition to providing an inflation-independent measure of

the cost of the SSI program, this provides a useful perspective on the proportion of the total output of the

U.S. economy needed to provide Federal SSI benefits. As is shown in table IV.D1 and figure IV.D1, the

total cost of the SSI program relative to GDP is projected to be relatively constant through 2013 and

decline thereafter.

Table IV.D1 and figure IV.D1 present historical and projected Federal expenditures under the SSI program

as a percentage of GDP. Following the initial higher costs of the program, total Federal SSI payments during the 1980s were a fairly constant percentage of GDP (0.21 percent). During the early 1990s, SSI experienced rather rapid growth (to 0.34 percent of GDP in 1996) due to a combination of factors discussed

earlier in section IV. Legislation enacted in 19962 resulted in a drop in the cost of SSI as a percentage of

GDP beginning in 1997 and continuing through 2000. The share of GDP devoted to Federal SSI expenditures increased slightly after the turn of the century in part in response to a slowdown in economic growth

over that period, but resumed its very gradual downward trend from 2002 to 2007 due to relatively slower

growth in the number of SSI recipients. In 2008, however, this trend was reversed due to an increase in

program recipients described in earlier sections. This elevated level of cost as a percentage of GDP is projected to continue for the next two years as the economy begins to recover. Beyond that, the gradual downward trend is projected to resume. As described in last year’s report, this ultimate trend is the net effect of

two factors. First, Federal SSI expenditures, after adjusting for growth in prices, are projected to grow

slightly faster than the population due to some estimated growth in the SSI recipient population as a percentage of the overall U.S. population, as discussed previously in section IV.C. Second, in years beyond

the current economic downturn, the real growth projected for GDP under the 2009 Trustees Report intermediate assumptions is greater than the effect of these projected increases in SSI recipients. Thus, Federal

SSI payments are projected to decline as a percentage of GDP over the remainder of the projection period,

reaching 0.25 percent of GDP by 2033.

1 The total value of goods and services produced in the United States.

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

 Figure IV.D1.—SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1975-2035

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older 

Historical Projected
51

2009 SSI Annual Report

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

Table IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2033 

Calendar 

year

GDP a

(In billions)

a Projected values based on the intermediate economic assumptions of the 2009 OASDI Trustees Report.

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 ........ $1,500 0.003 0.029 0.030 0.065 0.009 0.001 0.055 0.064 0.137 0.119 0.256

1975 ........ 1,638 .008 .033 .030 .067 .012 .001 .050 .063 .151 .112 .263

1976 ........ 1,825 .010 .033 .030 .063 .013 .001 .042 .056 .149 .098 .247

1977 ........ 2,031 .011 .033 .029 .058 .015 .001 .036 .050 .146 .086 .232

1978 ........ 2,295 .013 .034 .029 .057 .017 .001 .032 .048 .150 .080 .231

1979 ........ 2,563 .013 .032 .025 .051 .017 .001 .026 .043 .138 .069 .207

1980 ........ 2,790 .014 .033 .026 .051 .020 .001 .023 .044 .145 .067 .212

1981 ........ 3,128 .015 .034 .026 .049 .021 .001 .021 .042 .147 .063 .209

1982 ........ 3,255 .016 .037 .027 .049 .022 .001 .019 .042 .152 .061 .213

1983 ........ 3,537 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 ........ 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .211

1985 ........ 4,220 .017 .040 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 ........ 4,463 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .213

1987 ........ 4,739 .019 .044 .034 .046 .018 .005 .016 .030 .166 .047 .212

1988 ........ 5,104 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .211

1989 ........ 5,484 .019 .044 .037 .045 .017 .007 .016 .027 .169 .043 .212

1990 ........ 5,803 .021 .046 .041 .048 .017 .007 .017 .026 .180 .043 .223

1991 ........ 5,996 .028 .052 .049 .055 .018 .008 .019 .027 .210 .047 .257

1992 ........ 6,338 .050 .062 .056 .060 .018 .008 .021 .027 .253 .047 .300

1993 ........ 6,657 .059 .067 .063 .063 .018 .008 .022 .026 .277 .049 .326

1994 ........ 7,072 .059 .064 .066 .064 .018 .008 .022 .026 .278 .048 .326

1995 ........ 7,398 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 ........ 7,817 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 ........ 8,304 .059 .061 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 ........ 8,747 .057 .059 .067 .066 .018 .007 .018 .024 .275 .042 .317

1999 ........ 9,268 .052 .055 .067 .065 .018 .007 .016 .024 .264 .040 .304

2000 ........ 9,817 .049 .052 .065 .064 .017 .007 .015 .024 .255 .038 .293

2001 ........ 10,128 .050 .053 .067 .067 .018 .007 .015 .024 .263 .039 .301

2002 ........ 10,470 .051 .052 .067 .068 .018 .007 .014 .024 .264 .038 .302

2003 ........ 10,961 .052 .052 .066 .069 .018 .007 .013 .024 .264 .037 .301

2004 ........ 11,686 .052 .051 .063 .068 .018 .007 .012 .023 .258 .034 .293

2005 ........ 12,422 .052 .051 .061 .068 .017 .007 .011 .022 .256 .033 .290

2006 ........ 13,178 .053 .051 .059 .068 .017 .007 .011 .022 .254 .033 .287

2007 ........ 13,808 .053 .051 .057 .069 .017 .007 .010 .022 .254 .032 .286

2008 ........ 14,260 .055 .053 .057 .073 .017 .007 .010 .022 .263 .032 .295

Projected:

2009 ........ 14,088 .060 .059 .060 .080 .018 .008 .011 .023 .285 .033 .318

2010 ........ 14,585 .062 .061 .059 .082 .019 .008 .010 .023 .290 .033 .323

2011 ........ 15,437 .061 .060 .056 .080 .018 .008 .010 .021 .283 .032 .314

2012 ........ 16,382 .060 .059 .054 .080 .018 .008 .010 .021 .279 .031 .309

2013 ........ 17,355 .059 .059 .051 .079 .018 .008 .010 .020 .275 .030 .305

2014 ........ 18,327 .059 .058 .050 .078 .019 .008 .010 .020 .271 .030 .301

2015 ........ 19,267 .058 .058 .048 .077 .019 .008 .011 .019 .267 .030 .297

2016 ........ 20,165 .056 .057 .048 .076 .020 .008 .011 .019 .265 .030 .294

2017 ........ 21,107 .055 .057 .047 .075 .020 .008 .011 .019 .262 .030 .292

2018 ........ 22,087 .054 .056 .047 .073 .021 .008 .011 .019 .260 .030 .290

2019 ........ 23,100 .053 .056 .047 .072 .021 .008 .012 .019 .257 .030 .288

2020 ........ 24,158 .053 .055 .046 .071 .022 .008 .012 .019 .255 .031 .286

2021 ........ 25,264 .052 .055 .046 .070 .022 .008 .012 .019 .253 .031 .284

2022 ........ 26,420 .051 .054 .046 .068 .023 .009 .012 .019 .250 .032 .282

2023 ........ 27,631 .050 .054 .046 .066 .023 .009 .013 .020 .248 .032 .280

2024 ........ 28,897 .050 .053 .046 .065 .023 .009 .013 .020 .246 .032 .278

2025 ........ 30,222 .049 .052 .046 .063 .023 .009 .013 .020 .243 .033 .276

2026 ........ 31,602 .048 .052 .046 .061 .023 .009 .013 .021 .240 .033 .274

2027 ........ 33,050 .048 .051 .046 .060 .023 .010 .013 .021 .237 .034 .271

2028 ........ 34,563 .047 .050 .045 .058 .023 .010 .013 .022 .233 .034 .268

2029 ........ 36,153 .046 .049 .045 .057 .023 .010 .013 .022 .230 .035 .265

2030 ........ 37,818 .045 .048 .044 .056 .023 .010 .012 .022 .227 .035 .261

2031 ........ 39,566 .045 .047 .044 .055 .022 .011 .012 .023 .223 .035 .259

2032 ........ 41,401 .044 .047 .043 .054 .021 .011 .012 .023 .220 .035 .256

2033 ........ 43,320 .043 .046 .043 .053 .021 .011 .012 .024 .217 .035 .253
2009 SSI Annual Report

52

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, but unlike the OASDI program, is

funded from general revenues. SSA was given responsibility for the SSI program when it was created in

1972 because of the agency’s existing field office network and its administrative and automated data processing capabilities. Because of the integration of the administration of the SSI and OASDI programs, it is

more practical to fund them from a single source. The trust funds and the general fund pay their appropriate share of administrative expenses through SSA’s Limitation on Administrative Expenses (LAE)

account, which in turn funds the total operating expenses of the agency. The appropriate share of administrative expenses borne by each funding source is determined based on a Government Accountability

Office approved method of cost analysis, with a final settlement of costs by the end of the subsequent fiscal year. If necessary, section 201(g)(1) of the Social Security Act provides that SSI administrative

expenses, including Federal administration of State supplementation payments, may be financed from the

Social Security trust funds with reimbursement, including any interest lost, to the trust funds from general

revenues.

The SSI program also provides beneficiary services to recipients through State Vocational

Rehabilitation (VR) agencies and Employment Networks for VR services and payments under the Ticket

to Work program. For SSI recipients, the objective of VR is to help disabled individuals achieve and sustain productive, self-supporting work activity.

Table IV.E1.—Selected SSI Costs, Fiscal Years 1978-2009

[Outlays in millions] 

Fiscal year

SSI Administrative

expenses a

a Includes user fees charged to participating States to reimburse SSA for the costs of administering their

SSI State Supplementation program.

Beneficiary

services b

b Payments for referral and monitoring services for Drug Addicts and Alcoholics are included through

December 1996; these payments were terminated effective January 1997. The increase in the estimate for

fiscal year 2009 assumed an increase in Ticket to Work activity.

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 c 84.0

c Reflects a one-time payment to State VR agencies for prior year expenses.

1985.................................................................. 956 3.0

1986.................................................................. 1,023 7.2

1987.................................................................. 977 9.5

1988.................................................................. 976 12.9

1989.................................................................. 1,052 20.0

1990.................................................................. 1,075 28.3

1991.................................................................. 1,230 33.1

1992.................................................................. 1,426 36.0

1993.................................................................. 1,468 32.3

1994.................................................................. 1,780 33.8

1995.................................................................. 1,978 48.2

1996.................................................................. 1,953 71.8

1997.................................................................. 2,055 77.3

1998.................................................................. 2,304 46.0

1999.................................................................. 2,493 52.0

2000.................................................................. 2,321 53.7

2001.................................................................. 2,397 43.9

2002.................................................................. 2,522 54.0

2003.................................................................. 2,656 37.0

2004.................................................................. 2,806 38.6

2005.................................................................. 2,795 30.4

2006.................................................................. 2,916 38.9

2007.................................................................. 2,857 36.1

2008.................................................................. 2,820 45.1

2009 (estimated)............................................... 3,326 67.0
53

2009 SSI Annual Report

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of a

correcting lens, or with tunnel vision of 20 degrees or less. An individual transferred from a State Aid to the Blind (AB) program to SSI is eligible if he/she

received such State aid in December 1973 and continues to meet the October

1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment expected

to result in death or that has lasted or can be expected to last for a continuous

period of at least 12 months. For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred

from a State Aid to the Permanently and Totally Disabled (APTD) program to

SSI is also eligible if he/she received such State aid in December 1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls in

December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973 must

meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at the

substantial gainful activity level may continue to receive a special benefit under

section 1619 and retain eligibility for Medicaid under title XIX of the Social

Security Act. This special benefit status may continue as long as the recipient

has the disabling impairment and meets all nondisability SSI eligibility criteria.

States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through December

31, 1983. Beginning in January 1984, under a 1-year demonstration project, this

provision was continued for persons already eligible for either regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments are made

permanent. The provisions were amended effective July 1, 1987, with significant modifications to simplify administration and to allow free movement

between regular SSI disability payments and either the special cash benefit or

Medicaid eligibility under section 1619. The distinction between a disabled person eligible for regular SSI payments and one eligible for 1619(a) is that the latter has several months with gross earnings above the SGA level. Previously,

section 1619(a) status required completion of a trial work period and the determination that the work was SGA.
2009 SSI Annual Report

54

Act

1996

Public Law 104-193, 

enacted August 22

For individuals under age 18, the “comparable severity” standard is eliminated

and replaced with a requirement that a child be considered disabled if he/she has

a medically determinable impairment that results in “marked and severe functional limitations,” and meets the existing statutory duration requirement. The

law also eliminates references to “maladaptive behaviors” from the personal/

behavioral domain of the mental disorders in the Listing of Impairments for

children, and discontinues the use of individualized functional assessments for

children.

SSI eligibility is prohibited for an individual in any month during which such an

individual is a fugitive felon, fleeing prosecution for a felony, or violating State

or Federal conditions of probation or parole 1. In addition, SSI eligibility is prohibited for 10 years for those convicted of fraudulently claiming residence to

obtain benefits simultaneously in two or more States. 2

2006

Public Law 109-171, 

enacted February 8

Requires the Commissioner to conduct reviews of a specific percentage of SSI

initial disability and blindness cases involving individuals aged 18 or older that

are allowed by the State DDS. The provision is phased in as follows—for fiscal

year 2006, the Commissioner is required to review 20 percent of DDS allowances; in fiscal year 2007, the requirement is 40 percent; and, for fiscal years

2008 and thereafter, 50 percent of all DDS allowances are required to be

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

2. Other Eligibility Provisions

a. Citizenship and U.S. Residency

1972

Public Law 92-603, 

enacted October 30

The individual must reside within one of the 50 States or the District of Columbia and be a citizen or an alien lawfully admitted for permanent residence or

permanently residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such

a month.

1976

Public Law 94-241, 

enacted March 24

Eligibility for SSI is extended to residents of the Northern Mariana Islands,

effective January 9, 1978.

1980

Public Law 96-265, 

enacted June 9

The income and resources of the immigration sponsors of aliens applying for

SSI are considered in determining eligibility for and the amount of payment.

After allowances for the needs of the sponsor and his/her family, the remainder

is deemed available for the support of the alien applicant for a 3-year period

after admission to the United States for permanent residence. This provision

does not apply to those who become blind or disabled after admission, to refugees, or to persons granted political asylum. (See section 2.g. for subsequent

changes to sponsor-to-alien deeming provisions.)

1 In most respects, SSA stopped implementing the fugitive felon and fleeing prosecution for a felony aspects of the

provision April 1, 2009, pursuant to a tentative settlement of a proposed nationwide class action.

2 This last provision was repealed in 1999 by Public Law 106-169 and replaced with a provision providing for nonpayment of benefits for up to 24 months for knowingly making false or misleading statements regarding material

facts.
55

2009 SSI Annual Report

Act

1989

Public Law 101-239, 

enacted December 19

SSI eligibility is continued for a disabled or blind child who was receiving SSI

benefits while living in the United States and is now living with a parent who is

a member of the U.S. Armed Forces assigned to permanent duty ashore outside

the United States, but not where the parent is stationed in Puerto Rico or the territories and possessions of the United States.

1993

Public Law 103-66, 

enacted August 10

Above provision made applicable where the parent is a member of the U.S.

Armed Forces and stationed in Puerto Rico or the territories and possessions of

the United States.

1996

Public Law 104-193, 

enacted August 22

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless

they are in a “qualified alien” category and meet one of certain exceptions such

as lawful permanent residents who earn or can be credited with 40 qualifying

quarters of earnings, certain refugee type categories eligible for up to 5 years of

time limited eligibility, or active duty U.S. military or veterans and their spouses

and children. Extends eligibility for aliens receiving SSI as of August 22, 1996

(the enactment date of the law) for 1 year after the enactment date for those

aliens found ineligible under the new standards.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens (and their children) who have been battered or subjected to extreme cruelty by a spouse or parent or a member of the spouse’s or parent’s family living

in the same household.

1997

Public Law 105-18, 

enacted June 12

Extends eligibility for aliens receiving SSI as of August 22, 1996, until September 30, 1997, for those found ineligible under the new alien standards of Public

Law 104-193.

Public Law 105-33, 

enacted August 5

Further amends Public Law 104-193 to add Cuban and Haitian entrants, and the

child of a parent who has been battered or subjected to extreme cruelty, to the

list of qualified aliens. Provides that Cuban and Haitian entrants and Amerasian

immigrants qualify for time limited eligibility, and increases the time limit from

5 to 7 years for all time-limited categories. Additional exceptions are added for

qualified aliens: (1) lawfully residing in the United States and receiving SSI

benefits on August 22, 1996; and (2) lawfully residing in the United States on

August 22, 1996 and meeting the definition of blind or disabled in the Social

Security Act.

Certain noncitizen American Indians are excepted from the alien nonpayment

provisions of Public Law 104-193.

Extends eligibility for “nonqualified aliens” receiving SSI as of August 22,

1996, until September 30, 1998.

1998

Public Law 105-306, 

enacted October 28

Permanently extends eligibility of all remaining “nonqualified aliens” who

were receiving SSI benefits when Public Law 104-193 was enacted on

August 22, 1996.

2000

Public Law 106-386, 

enacted October 28

Noncitizens may be eligible for SSI to the same extent as refugees, if they have

been certified by the Department of Health and Human Services to be victims of

“severe forms of trafficking in persons.”
2009 SSI Annual Report

56

Act

2004

Public Law 108-203, 

enacted March 2

Extends SSI eligibility to blind or disabled children who are U.S. citizens living

with a parent assigned to permanent U.S. military duty outside of the United

States, and who were not receiving SSI benefits while in the United States. Previously, only blind or disabled children who received an SSI benefit for the

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

Effective April 2004 for applications filed after enactment.

2007

Public Law 110-161, 

enacted December 26

Provides certain Iraqi and Afghan aliens with special immigrant status, as

described in section 101(a)(27) of the Immigration and Nationality Act. As special immigrants, these Iraqi and Afghan aliens are eligible for resettlement assistance, entitlement programs, and other benefits available to refugees admitted

under section 207 of such Act (admission of refugees in emergency situations)

for a period not to exceed 6 months.

2008

Public Law 110-181, 

enacted January 28

Provides certain Iraqi aliens who have provided service to the United States

with special immigrant status, as described in section 101(a)(27) of the Immigration and Nationality Act. As special immigrants, these Iraqis are eligible for

resettlement assistance, entitlement programs, and other benefits available to

refugees admitted under section 207 of such Act (admission of refugees in

emergency situations) for a period not to exceed 8 months.

Public Law 110-328, 

enacted September 30

Extends the 7-year SSI eligibility period for certain refugees, asylees, and other

humanitarian immigrants (including victims of human trafficking) to 9 years for

the period October 1, 2008 through September 30, 2011. For those with naturalization applications pending or awaiting the swearing-in-ceremony, the eligibility period is extended through September 30, 2011. Also applies to the

noncitizens whose SSI had previously ceased due to the expiration of the 7-year

period. For these noncitizens, SSI benefits will be paid for months in the period

October 1, 2008 through September 30, 2011, for the duration of the noncitizen’s reestablished eligibility.

b. Other Benefits

1980

Public Law 96-272, 

enacted June 17

SSI applicants and recipients are not required as a condition of eligibility to

elect to receive Veterans Administration pensions under the Veterans and Survivors’ Pension Improvement Act of 1978 if the State of residence lacks a medically-needy program under title XIX.

c. Drug Addiction and Alcoholism (DA&A)

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and
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2009 SSI Annual Report

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terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies

and Federal, State, or local government agencies in representative payee selection. These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$50 (adjusted annually after 1995 by the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State is

required.

1996

Public Law 104-121, 

enacted March 29

An individual is not considered disabled if DA&A is a contributing factor material to a finding of disability.

Applies DA&A representative payee requirements enacted under Public Law

103-296 to disabled SSI recipients who have a DA&A condition and are incapable of managing their benefits. In addition, these recipients shall be referred to

the appropriate State agency administering the State plan for substance abuse

treatment.

d. Institutionalization

1972

Public Law 92-603, 

enacted October 30

An individual who is an inmate of a public institution is ineligible for SSI payments unless the institution is a facility approved for Medicaid payments and is

receiving such payments on behalf of the person. Under regulations, the Medicaid payment must represent more than 50 percent of the cost of services provided by the facility to the individual.

1976

Public Law 94-566, 

enacted October 20

An inmate of a publicly operated community residence serving no more than 16

persons may, if otherwise eligible, receive SSI.

1983

Public Law 98-21, 

enacted April 20

Payments may be made to persons who are residents of public emergency shelters for the homeless for a period of up to 3 months in any 12-month period.

1986

Public Law 99-643, 

enacted November 10

Effective July 1, 1987, disabled or blind recipients who were receiving special

SSI payments or had special SSI recipient status under section 1619 in the

month preceding the first full month of institutionalization, may receive payments based on the full Federal benefit rate for the initial 2 full months of institutionalization, if they reside in certain public medical, psychiatric or Medicaid

facilities, or in private Medicaid facilities.
2009 SSI Annual Report

58

Act

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 only if the

services result in the recipient’s return to work for a continuous period of

9 months. The work must be at the substantial gainful activity earnings level.

1984

Public Law 98-460, 

enacted October 9

Authorizes the reimbursement of States for the cost of VR services provided to

individuals who (1) continue to receive benefits after medical recovery because

they are participating in a State VR program or (2) refuse, without good cause,

to continue in or cooperate with the VR program in which they had been participating.
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1987

Public Law 100-203, 

enacted December 22

Extends the provision for continuation of payments to disabled SSI recipients

who have medically recovered while enrolled in an approved vocational rehabilitation program to include blind SSI recipients.

1990

Public Law 101-508, 

enacted November 5

Reimbursement authorized for the cost of vocational rehabilitation services provided in months in which the individual was not receiving Federal SSI payments, if:

 • SSI recipient status for Medicaid eligibility purposes was retained under

work incentive provisions; or 

 • Benefits were in suspense 1 status (for a reason other than cessation of disability or blindness); or

 • Federally-administered State supplementation was received.

Extends benefit continuation provision to disabled SSI recipients who medically

recover while participating in a non-State VR program.

1999

Public Law 106-170, 

enacted December 17

Establishes a Ticket to Work and Self-Sufficiency program which will provide

SSI (and OASDI) disability beneficiaries with a ticket that can be used to obtain

vocational rehabilitation services, employment services, or other support services, from an employment network (EN) of their choice. An EN chooses one of

the two EN payment options at the time it submits an application to SSA to

become an EN. The chosen payment system will apply to all beneficiaries

served. An EN can elect to receive payment under the:

 • Outcome payment system, under which it can receive payment for up to 60

outcome payment months, which are defined as months in which SSA does

not pay any Federal disability cash benefits to a beneficiary because of

work or earnings; or

 • Outcome-milestone payment system, under which it can receive payment

for one or more milestones in addition to reduced outcome payments, but

will receive less in total than under the outcome payment system. 

The Commissioner of Social Security will initially establish and periodically

review the amount and duration of the outcome payments and the number and

amounts of the outcome-milestone payments.

Also eliminates the requirement that blind or disabled SSI recipients age 16

through 64 be referred to the State VR agency and accept the services offered.

Under the initial regulation, effective January 28, 2002:

 • The outcome payment system provided that ENs could receive payment for

up to 60 outcome payment months for both SSDI and SSI beneficiaries

based on earnings exceeding the substantial gainful activity level and the

beneficiary no longer receiving Federal disability cash benefits because of

work or earnings; and

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
2009 SSI Annual Report

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Act

 • The outcome-milestone payment system provided that ENs could receive

up to four milestone payments in addition to reduced outcome payments.

The four milestones were based on gross earnings exceeding the substantial

gainful activity level for specified months. Milestone payments were made

only for milestones achieved prior to the first outcome payment month, and

outcome payments were reduced by the amount of milestone payments

received. Four milestone payments plus 60 months of reduced outcome

payments equaled 85 percent of the total that would be available if the EN

chose the outcome payment system. 

Under the revised regulation, effective July 21, 2008:

 • The outcome payment system provides that ENs can receive payment for

up to 60 outcome payment months for an SSI beneficiary and up to 36 outcome payment months for an SSDI beneficiary (including a concurrent title

II/title XVI disability beneficiary), with the reduction in available number

of outcome months for SSDI beneficiaries offset by an increased outcome

payment; and

 • The outcome-milestone payment system provides that ENs can receive the

following milestone payments in addition to outcome payments:

 — Up to four Phase 1 milestones achieved by either an SSDI or SSI beneficiary (including a concurrent title II/title XVI disability beneficiary); and

 — Up to 11 Phase 2 milestones achieved by an SSDI or concurrent beneficiary or up to 18 Phase 2 milestones achieved by an SSI beneficiary.

Phase 1 milestones are based on gross earnings at or above trial work level for

specified months, and Phase 2 milestones are based on gross earnings exceeding

the substantial gainful activity level for specified months. These milestones

must occur before the EN enters the first month for which it is eligible for an

outcome payment. If an available milestone payment is not paid prior to the outcome period, it is payable in a reconciliation payment when the beneficiary

reaches the 12th outcome month. This payment amount is equal to the total

amount of unpaid Phase 1 and Phase 2 milestones that were available when the

ticket was first assigned. The Phase 1 and Phase 2 milestone payments and outcome payments equal 90 percent of the total that would be available if the EN

chose the outcome payment system.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994

Public Law 103-296, 

enacted August 15

During each of fiscal years 1996, 1997, and 1998, requires SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In

addition, during the same period, requires SSA to redetermine the SSI eligibility

of at least one-third of all child SSI recipients who reach age 18 after April 1995

during the 1-year period following attainment of age 18. Redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.
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1996

Public Law 104-193, 

enacted August 22

Repeals the requirement that SSA redetermine the eligibility of at least one-third

of all child SSI recipients who reach age 18 after April 1995 during the 1-year

period following attainment of age 18.

Requires a CDR:

 • At least once every 3 years for SSI recipients under age 18 who are eligible

by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is

a contributing factor material to the determination of their disability.

Requires eligibility redetermination under the adult disability standard for all

child SSI recipients eligible for the month before the month in which they attain

age 18.

Requires redetermination of eligibility for children considered disabled based

on an individual functional assessment and/or consideration of maladaptive

behavior.

Requires the representative payee of a child SSI recipient whose continuing eligibility is being reviewed to present evidence that the recipient is receiving

treatment which is considered medically necessary and available for the condition which was the basis for providing SSI benefits.

1997

Public Law 105-33, 

enacted August 5

Modifies provision of Public Law 104-193 to extend from 12 to 18 months the

period for redetermining the disability of children under age 18 under the new

childhood disability standard.

Modifies provision of Public Law 104-193 to permit SSA to schedule a CDR

for a disabled child for whom low birth weight is a contributing factor material

to the determination of disability, at a date after the child’s first birthday if the

Commissioner determines the impairment is not expected to improve within 12

months of the child’s birth.

Modifies provision of Public Law 104-193 to provide SSA the authority to

make redeterminations of disabled childhood recipients who attain age 18, more

than 1 year after the date such recipient attains age 18.

1999

Public Law 106-170, 

enacted December 17

Prohibits the initiation of a CDR during the period that a recipient is “using a

ticket” under the Ticket to Work program.

g. Deeming of Income and Resources

1972

Public Law 92-603, 

enacted October 30

Deeming occurs when the income and resources of certain family members living in the same household with the SSI recipient are considered in determining

the amount of the SSI payment. These family members are the ineligible spouse

of an adult recipient and the ineligible parents of a child recipient under age 21.

After deduction of personal allocations for the spouse (or parents) and for ineligible children in the home, and after application of income exclusions, any

remaining income of the spouse (or parents) is added to the income of the eligible person.
2009 SSI Annual Report

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Act

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 103-66, 

enacted August 10

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.

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.

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.

2006

Public Law 109-163, 

enacted January 6

Provides that individuals who were made ineligible for SSI because of their

spouses or parents being called to active military duty would not have to file a

new application for SSI benefits if they again could be eligible for benefits

before the end of 24 consecutive months of ineligibility.

3. Federal Benefit Payments

a. Windfall Offset

1980

Public Law 96-265, 

enacted June 9

Offset (by reduction of retroactive Social Security benefits) to prevent persons

whose initial OASDI payment is retroactive from receiving more in total benefits than if they were paid the benefits when regularly due.
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Act

1984

Public Law 98-617, 

enacted November 8

Offset provision expanded to allow for reduction of retroactive SSI benefits and

to apply in cases of OASDI benefit reinstatement.

b. Proration of Benefit

1982

Public Law 97-248, 

enacted September 3

Benefit for first month of eligibility to be prorated by the number of days in the

month for which an application has been filed and there is eligibility.

1996

Public Law 104-193, 

enacted August 22

Changes the effective date of an SSI application to the first day of the month

following the date on which the application was filed or on which the individual

first becomes eligible, whichever is later. This, in effect, eliminates prorated

payments in initial claims.

c. Retrospective Monthly Accounting

1981

Public Law 97-35, 

enacted August 13

Changes the method of computing the SSI benefit to one under which the benefit amount is computed on a monthly basis and is based on income and other

characteristics in the previous (or second previous) month.

1984

Public Law 98-369, 

enacted July 18

Changes the method of computing the SSI benefit to persons receiving title II

payments. The effect of the increased title II income at the time of the cost-ofliving increase is not delayed as it otherwise would be.

1987

Public Law 100-203, 

enacted December 22

Provides an exception to retrospective monthly accounting so that amounts

received under Aid to Families With Dependent Children (AFDC), foster care,

refugee cash assistance, Cuban-Haitian entrant assistance, or general and child

welfare assistance provided by the Bureau of Indian Affairs are counted only in

the month received.

1993

Public Law 103-66, 

enacted August 10

Changes the method of computing the SSI benefit to persons receiving the value

of the one-third reduction. The effect of the increased value at the time of the

cost-of-living increase is not delayed as it otherwise would be. Effective January

1995.

2004

Public Law 108-203, 

enacted March 2

Eliminates triple counting of one-time, nonrecurring income by providing that

this income will be counted only for the month that the income is received, and

not for any other month during the transition to retrospective monthly accounting, which occurs during the first 3 months of an individual’s SSI eligibility.

Effective April 2005.

d. Uncashed Checks

1981

Public Law 97-35, 

enacted August 13

States that have Federally-administered supplements to be credited their share

of SSI checks that remain unnegotiated for 180 days.

1987

Public Law 100-86, 

enacted August 10

SSI checks now unnegotiable after 1 year. States are credited their share of SSI

checks after 1 year rather than 180 days.
2009 SSI Annual Report

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Act

e. Rounding of Payment Amounts

1982

Public Law 97-248, 

enacted September 3

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent cost-of-living adjustments will be calculated on the

previous year’s benefit standard before rounding.

f. Penalties for False or Misleading Statements or Withholding of 

Information

1999

Public Law 106-169, 

enacted December 14

Provides for the nonpayment of OASDI and SSI benefits (6, 12 and 24 months,

respectively, for the first, second, and third or subsequent violations) for individuals found to have knowingly made a false or misleading statement of material fact for use in determining eligibility for benefits.

2004

Public Law 108-203, 

enacted March 2

Expands the administrative sanction of nonpayment of benefits to situations

where an individual has failed to disclose material information, if the person

knew or should have known that such failure was misleading.

Authorizes Federal courts to order a defendant convicted of defrauding Social

Security, Special Veterans’ Benefits, or SSI to make restitution to SSA. Restitution funds would be deposited to the trust funds or General Fund of the Treasury, as appropriate. Effective with respect to violations occurring on or after the

date of enactment.

g. Installment Payments

1996

Public Law 104-193, 

enacted August 22

Establishes a schedule for paying retroactive SSI benefit amounts that exceed 12

times the FBR plus the State supplement level. Payments would be made at

6-month intervals:

 • The first installment would be 12 times the FBR plus any Federally administered State supplement.

 • Any remaining retroactive benefits would be paid in a second installment

(not to exceed the first payment amount).

 • All remaining retroactive benefits would be paid in the third installment.

Provides that where an underpaid individual has incurred debts to provide for

food, clothing or shelter, has expenses for disability-related items and services

that exceed the installment amount, or has entered into a contract to purchase a

home, the installment payment would be increased by the amount needed to

cover those debts, expenses and obligations.

Provides that full retroactive payments be paid to an individual who is terminally ill or, if currently ineligible, is likely to remain so for the next 12 months.

2006

Public Law 109-171, 

enacted February 8

Requires that past-due monthly SSI benefits that exceed three times the maximum monthly benefit (Federal benefit rate plus State supplementary payment

amount, if any) payable to the individual be paid in up to three installment payments, 6 months apart. Also, limits the amount of the first two installment payment to three times the maximum monthly benefit. All remaining benefits due

are to be paid in the third installment. As under current law, the amounts of the
65

2009 SSI Annual Report

Act

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

the individual has outstanding debt relating to food, clothing, or shelter, or has

necessary medical needs.

Effective 3 months after February 8, 2006.

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 medical treatment facilities where

Medicaid pays more than 50 percent of the cost of care. Individuals or couples living in their own households are eligible for the full Federal benefit. If an individual or couple is living in another person’s household and receiving support and maintenance there, the Federal benefit is reduced by one-third. The Federal

benefit rates for persons in households are increased annually to reflect increases in the cost of living. Legislation affecting the level of Federal benefit rates since the inception of the SSI program are summarized

in table V.A1.

a For those in another person’s household receiving support and maintenance there, the Federal benefit rate is reduced by one-third. b For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.

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

d Includes persons in private institutions whose care in not provided by Medicaid.

e Public Law 93-66, enacted July 9, 1973.

f Public Law 93-233, enacted December 31, 1973.

g Public Law 93-368, enacted August 7, 1974.

h Subject to automatic provisions, see table IV.A2.

i Public Law 98-21, enacted April 20, 1983.

j Public Law 100-203, enacted December 22, 1987.

Table V.A1.—Federal Benefit Rates Set by Legislation

Act Living arrangements a

Amount b

Individual Couple Conditions

1972 c ....... Own household d $130.00 $195.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 e ....... — 140.00 210.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 f........ — 140.00 210.00 Effective January 1, 1974.

1973 f ....... — 146.00 219.00 Effective July 1, 1974.

1974 g ....... — — — 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.

— h157.70 h 236.60 Effective July 1, 1975.

1983 i ........ — 304.30 456.40 Effective July 1, 1983 (general benefit increase).

— h 314.00 h 472.00 Effective January 1, 1984.

1973 e ....... Increment for 

“essential person” 

in household

65.00 — Was to be effective January 1, 1974. For persons transferred 

from OAA, AB, or APTD programs who were receiving 

payments in December 1973 under a State plan that took 

account of “essential persons” in the household.

— 70.00 — Was to be effective July 1, 1974.

1973 f ....... — 70.00 — Effective January 1, 1974.

— 73.00 — Effective July 1, 1974.

1974 g ....... — — — Mechanism established for providing cost-of-living 

adjustments.

— h 78.90 — Effective July 1, 1975.

1983 i ....... — 152.50 — Effective July 1, 1983 (general benefit increase).

— h 157.00 — Effective January 1, 1984.

1972 c ....... Receiving institutional 

care covered by 

Medicaid

25.00 50.00 Effective January 1, 1974. Must be receiving more than 50 

percent of the cost of the care from Medicaid (title XIX of 

the Social Security Act).

1987 j ........ — 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).
2009 SSI Annual Report

66

Act 5. Exclusions from Income

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

The first $60 of earned or unearned income per calendar quarter for an individual or couple; the next $195 and one-half the remainder of quarterly earned

income. Unearned income includes Social Security benefits, other government

or private pensions, veterans’ benefits, and workers’ compensation.

1981

Public Law 97-35, 

enacted August 13

The first $20 of earned or unearned income per month for an individual or couple; the next $65 and one-half the remainder of monthly earned income.

Unearned income includes Social Security benefits, other government or private

pensions, veterans’ benefits, and workers’ compensation.

2000

Public Law 106-554, 

enacted December 21

Earnings of persons defined as Social Security statutory employees are treated

as self-employment income for SSI purposes.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Any amount of tax rebate issued to an individual by any public agency that is

based on either real property or food purchase taxes.

Grants, scholarships, and fellowships used to pay tuition and fees at an educational institution.

Income required for achieving an approved self-support plan for blind or disabled persons.

Work expenses of blind persons.

For blind persons transferred from State programs to SSI, income exclusions

equal to the maximum amount permitted as of October 1972 under the State

programs.

Irregularly or infrequently received income totaling $60 or less of unearned

income and $30 of earned income in a calendar quarter.

Payment for foster care of ineligible child residing in recipient’s home through

placement by a public or private nonprofit child care agency.

One-third of any payment received from an absent parent for the support of a

child eligible for SSI.

Certain earnings of a blind or disabled child under age 22 regularly attending an

educational institution.

State or local government cash payments based on need and designed to supplement SSI payments.

1976

Public Law 94-331, 

enacted June 30

Disaster assistance from income for 9 months and application of one-third

reduction for 6 months for certain victims of disasters occurring between January 1, 1976 and December 31, 1976.

Public Law 94-566, 

enacted October 20

Any assistance based on need (including vendor payments) made to or on behalf

of SSI recipients, which is paid and wholly funded by State or local governments.
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2009 SSI Annual Report

Act

The value of assistance provided under certain Federal housing programs.

1977

Public Law 95-113, 

enacted September 29

Food stamps, Federally donated food, and the value of free or reduced price

food for women and children under the Child Nutrition Act and National School

Lunch Act.

Public Law 95-171, 

enacted November 12

Provisions for exclusions for support and maintenance under the Disaster Relief

and Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1, 1978.

1980

Public Law 96-222, 

enacted April 1

Earned income tax credit treated as earned income (temporarily excluded from

1975 through 1980).

Public Law 96-265, 

enacted June 9

Remunerations received in sheltered workshops and work activity centers are

considered earned income and qualify for earned income exclusions.

Impairment-related work expenses paid by the individual (including cost for

attendant care, medical equipment, drugs, and services necessary to control an

impairment) are deducted from earnings when determining if an individual is

engaging in substantial gainful activity. Impairment-related work expenses are

excluded in calculating income for benefit purposes if initial eligibility for benefits exists on the basis of countable income without applying this exclusion.

1981

Public Law 97-35, 

enacted August 13

Modifies provision under which irregularly or infrequently received income is

excluded to conform to change from quarterly to monthly accounting; amounts

excludable: $20 or less of unearned income and $10 of earned income in a

month.

1982

Public Law 97-377, 

enacted December 21

From December 18, 1982, to September 30, 1983, certain home energy assistance payments are excluded if a State agency certified that they are based on

need.

1983

Public Law 97-424, 

enacted January 6

Support or maintenance assistance (including home energy assistance) provided

in kind by a nonprofit organization or in cash or in kind by certain providers of

home energy is excluded if the State determines that the assistance is based on

need. Provision is applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that the assistance is based on need. Provision is applicable through June

1985.

1984

Public Law 98-369, 

enacted July 18

The 1983 provisions for support and maintenance and home energy assistance

continue to October 1, 1987.

1986

Public Law 99-498, 

enacted October 17

Educational assistance used for educational expenses under the Higher Education Act of 1965 as amended.

1987

Public Law 100-203, 

enacted December 22

The 1983 provisions for support and maintenance and home energy assistance

made permanent.
2009 SSI Annual Report

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Act

Excludes death payments (for example, proceeds from life insurance) from SSI

income determinations to the extent they were spent on last illness and burial.

Modifies the 1982 resource exclusion for burial funds to extend the exclusion to

any burial fund of $1,500 or less maintained separately from all other assets,

thereby allowing interest to be excluded from income if retained in the fund.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

1989

Public Law 101-239, 

enacted December 19

Interest on agreements representing the purchase of an excluded burial space.

Payments from the Agent Orange Settlement.

Value of a ticket for domestic travel received as a gift and not cashed.

1990

Public Law 101-508, 

enacted November 5

Earned income tax credit (including the child health insurance portion).

Payments received from a State-administered fund established to aid victims of

crime.

Impairment-related work expenses excluded from income in determining initial

eligibility for benefits.

Payments received as State or local government relocation assistance.

Payments received under the Radiation Exposure Compensation Act.

Redefines as earned income, royalties earned in connection with any publication

of the individual’s work, and honoraria received for services rendered (previously defined as unearned income).

1993

Public Law 103-66, 

enacted August 10

Hostile fire pay to members of the uniformed services.

Payments received as State or local government relocation assistance made permanent.

1994

Public Law 103-286, 

enacted August 1

Payments to victims of Nazi persecution.

1998

Public Law 105-285, 

enacted October 27

Funds made available to an SSI recipient by a State or local government or a

nonprofit organization as part of the Individual Development Account demonstration project.

Public Law 105-306, 

enacted October 28

In-kind gifts to children with life-threatening conditions by tax-exempt organizations not converted to cash.

The first $2,000 annually of cash gifts by tax-exempt organizations to, or for the

benefit of, individuals under age 18 with life-threatening conditions.

Public Law 105-369, 

enacted November 12

Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998.
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2009 SSI Annual Report

Act

2000

Public Law 106-554, 

enacted December 21

Interest on funds deposited in an individual development account.

Any adjustments made to prior payments from other Federal programs to

account for the error in the computation of the Consumer Price Index during

1999.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit is excluded in determining eligibility for meanstested programs, including SSI.

2004

Public Law 108-203, 

enacted March 2

Changes the calculation of infrequent or irregular income from a monthly to a

quarterly basis. Excludes from the determination of an individual’s income all

interest and dividend income earned on countable resources. Effective July

2004.

Permits the student earned income exclusion to apply to any individual under

age 22 who is a student. Thus, students under age 22 who are married or heads

of households would be eligible for the exclusion. Effective April 2005.

Excludes from the determination of income any gift to an individual for use in

paying tuition or educational fees, just as grants, scholarships, and fellowships

for such use are currently excluded from the determination of income. Effective

June 2004.

2005

Public Law 109-64, 

enacted September 20

Amends the National Flood Insurance Act of 1968 to specify that assistance

provided under a program for flood mitigation activities with respect to a property would not be considered income or a resource of the owner of the property

when determining eligibility for or benefit levels under any income assistance or

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

Federal agency or by appropriated Federal funds.

2006

Public-Law 109-432, 

enacted December 20

Extends the present law that allows combat pay to be considered for Earned

Income Tax Credit (EITC) purposes for one additional year (for taxable years

ending before January 1, 2008). For SSI purposes, EITC payments are excluded

from income, and are not a countable resource for 9 calendar months following

the month of receipt.

2008

Public Law 110-185, 

enacted February 13

A rebate payment received under the Economic Stimulus Act of 2008, and any

other credit or refund under section 6428 of the Internal Revenue Code, would

not be taken into account as income for purposes of SSI.

Public Law 110-245, 

enacted June 17

Privatized military housing allowances withdrawn directly from a service member’s pay by military payroll and paid to the landlord will be considered in-kind

income, and the SSI benefit reduction attributable to the housing allowance will

be capped at one-third of the Federal benefit rate. In other cases, housing allowances will be considered earned income.

Excludes any cash or in-kind benefits provided under an AmeriCorps program

from income consideration. Effective for benefits payable for months beginning

60 days after enactment. 
2009 SSI Annual Report

70

Act

2009

Public Law 111-5, 

enacted February 17 

A one-time economic recovery payment of $250 to SSI recipients will not be

taken into account as income for purposes of SSI.

The Making Work Pay tax credit, which provides a tax credit in the form of

decreased withholding by employers, will not be counted as income.

6. Resources

1972

Public Law 92-603, 

enacted October 30

Countable resources limited to $1,500 or less for an individual and to $2,250 or

less for a couple.

1984

Public Law 98-369, 

enacted July 18

Limit on countable resources raised by $100 a year for individuals and $150 a

year for couples, beginning in calendar year 1985 through 1989. The respective

limits would become $2,000 for an individual and $3,000 for a couple in 1989

and thereafter.

1999

Public Law 106-169, 

enacted December 14

Includes generally in the countable resources of an individual the assets of a

trust which could be used for the benefit of the individual or spouse.

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

A home of reasonable value—established by regulation as not exceeding a fairmarket value of $25,000 ($35,000 in Alaska and Hawaii).

Personal effects and household goods of reasonable value established by regulation as not exceeding a total market value of $1,500.

An automobile of reasonable value—established by regulation as not exceeding

a market value of $1,200.

An automobile may be excluded, regardless of value, if the individual’s household uses it for employment or medical treatment, or if it is modified to be operated by or for transportation of a person with a disability.

Life insurance with face value of $1,500 or less.

1976

Public Law 94-569, 

enacted October 20

The recipient’s home, regardless of value, is excluded from consideration in

determining resources.

1977

Public Law 95-171, 

enacted November 12

Assistance received under the Disaster Relief and Emergency Assistance Act of

1974 for 9 months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market value; personal goods and household effects increased to $2,000 of

equity value.

1982

Public Law 97-248, 

enacted September 3

The value, within prescribed limits, of a burial space for the recipient, spouse,

and immediate family is excluded. In addition, $1,500 each (less the value of

already excluded life insurance and any amount in an irrevocable burial arrangement) may be set aside for the burial of the recipient and spouse.
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2009 SSI Annual Report

Act

1984

Public Law 98-369, 

enacted July 18

The unspent portion of any retroactive title II or title XVI payment is excluded

for 6 months following its receipt, and the individual must be given written

notice of the time limit on the exclusion.

1985 Regulations permit exclusion, regardless of value, of an automobile needed for

essential transportation or modified for a person with a disability. The $4,500

current market value limit applies only if no automobile could be excluded

based on the nature of its use.

1987

Public Law 100-203, 

enacted December 22

Provides for suspension of the 1980 transfer of assets provision, in any month

that it is determined that undue hardship would result.

Real property that cannot be sold for the following reasons: it is jointly owned;

its sale would cause the other owner(s) undue hardship due to loss of housing;

its sale is barred by a legal impediment; or, the owner’s reasonable efforts to sell

have been unsuccessful.

Temporarily extends the 1984 exclusion of retroactive title II and title XVI benefits from 6 months to 9 months (the longer exclusion applies to benefits paid in

fiscal years 1988 and 1989).

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

2004

Public Law 108-203, 

enacted March 2

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

resources amounts attributable to payments of past-due Social Security and SSI

benefits and earned income and child tax credits. Effective for such payments

received on or after the date of enactment.

2005 Regulations permit exclusion, regardless of value, of:

 • One automobile if used for transportation for the beneficiary or a member

of the beneficiary’s household; and

 • Personal goods and household effects.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Assets of a blind or disabled individual that are necessary to an approved plan of

self-support.

Tools and other property essential to self-support (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.
2009 SSI Annual Report

72

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.

2001

Public Law 107-16, 

enacted June 7

The refundable child tax credit in the month of receipt and in the following

month.
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2009 SSI Annual Report

Act

2004

Public Law 108-203, 

enacted March 2

Excludes grants, scholarships, fellowships, or gifts to be used for tuition or educational fees from an individual’s countable resources for 9 months after the

month of receipt.

2008

Public Law 110-185, 

enacted February 13

A rebate payment received under the Economic Stimulus Act of 2008, and any

other credit or refund under section 6428 of the Internal Revenue Code, would

not be included as a resource during the month of receipt or the following 2

months.

Public Law 110-245, 

enacted June 17

Excludes State-provided pensions for aged, blind, or disabled veterans (or their

spouses) from resources consideration. Effective for benefits payable for

months beginning 60 days after enactment.

2009

Public Law 111-5, 

enacted February 17

A one-time economic recovery payment of $250 to SSI recipients will not be

taken into account as a resource for the month of receipt and the following 9

months.

The Making Work Pay tax credit, which provides a tax credit in the form of

decreased withholding by employers, will not be taken into account as a

resource for the month of receipt and the following 2 months.

c. Transfer-of-Resources Penalties

1980

Public Law 96-611, 

enacted December 28

Assets transferred for less than fair market value for the purpose of establishing

eligibility for benefits under the Social Security Act are counted as resources for

24 months after transfer.

1988

Public Law 100-360, 

enacted July 1

Removes the transfer-of-assets penalty for transfers made July 1, 1988, or later.

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.

7. Presumptive and Emergency Payments and Interim Assistance

Reimbursement

a. Presumptive Payments

1972

Public Law 92-603, 

enacted October 30

A person applying on the basis of disability who meets all other criteria of eligibility, and is likely to be disabled, may receive payments for 3 months pending

the disability determination.

1976

Public Law 94-569, 

enacted October 20

Presumptive payment provision was extended to persons applying on the basis

of blindness.

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.
2009 SSI Annual Report

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Act

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.

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 
75

2009 SSI Annual Report

Act

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.

1990

Public Law 101-508, 

enacted November 5

Age limit for retention of SSI recipient status for Medicaid eligibility purposes

(1980 and subsequent work incentive provisions, above) is eliminated.

Preserves the Medicaid eligibility of SSI recipients who become ineligible for

payments when they become entitled to Social Security disabled widow(er)s

benefits following the revised definition used for their disability.
2009 SSI Annual Report

76

Act

1997

Public Law 105-33, 

enacted August 5

Requires States to continue Medicaid coverage for disabled children who were

receiving SSI payments as of August 22, 1996 and would have continued to be

eligible for such payments except that their eligibility terminated because they

did not meet the revised SSI childhood disability standard established under

Public Law 104-193.

2006

Public Law 109-171, 

enacted February 8

Begins Medicaid coverage for children who are eligible for SSI effective the

month the SSI application is filed or the first month of SSI eligibility, whichever

is later. (Under prior law, Medicaid eligibility for such children began the month

following the month of the SSI application or first eligibility.)

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 average, exceed a

State’s “adjusted payment level.” (The adjusted payment level is the average of

the payments that individuals with no other income received in January 1972; it

may include the bonus value of food stamps. Adjustments are provided for payments that had been below State standards.)

1973

Public Law 93-66, 

enacted July 9

Provides for mandatory State supplementation as assurance against reduction of

income for persons who received State assistance in December 1973 and were

transferred to SSI. These supplementary payments must equal the difference

between (1) the amount of the State assistance payment that the individual

received in December 1973 plus other income and (2) his/her Federal SSI payment plus other income.

1976

Public Law 94-585, 

enacted October 21

After June 30, 1977, when the Federal SSI payment level is increased by a costof-living increase, such an increase will be excluded in calculating the “hold

harmless” amount.

Requires States to maintain State supplementation payments at the level of

December 1976 (“maintenance of payments”) or to continue to pay in supplements the same total annual amounts (“maintenance of expenditures”) when the

Federal SSI payment level is increased and thereby pass through any increases

in Federal benefits without reducing State supplements.
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2009 SSI Annual Report

Act

1982

Public Law 97-248, 

enacted September 3

Begins a 3-year phase out of “hold harmless” protection. Effective with fiscal

year 1985, Wisconsin and Hawaii (the only remaining “hold harmless” States)

assumed the full cost of their supplementary payments.

1983

Public Law 98-21, 

enacted April 20

Federal pass-through law is adjusted (1) by substituting the State supplementary

payment levels in effect in March 1983 for those in effect in December 1976 as

the levels that States must maintain in complying with the pass-through requirements, and (2) with regard to the $20 (individual) and $30 (couple) increase in

the Federal SSI standard in July 1983, by requiring States to pass through only

as much as would have been required if the SSI cost-of-living adjustment had

been made in July 1983.

1987

Public Law 100-203, 

enacted December 22

Provides for Federal administration of State supplements to residents of medical

institutions.

Provides for required pass through of $5 increase in Federal rate for persons

whose care in institutions is paid in substantial part by Medicaid.

1993

Public Law 103-66, 

enacted August 10

Requires States to pay fees for Federal administration of their State supplementation payments. The fees are $1.67 for each monthly supplementary payment in

fiscal year 1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year 1996. Fees

for subsequent fiscal years will be $5.00 or another amount determined by the

Commissioner to be appropriate. The Commissioner may charge the States

additional fees for services they request that are beyond the level customarily

provided in administering State supplementary payments.

1997

Public Law 105-33, 

enacted August 5

Revises the schedule of per-payment fees for Federal administration of State

supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002.

1999

Public Law 106-170, 

enacted December 17

A State which has an agreement with SSA to administer its supplementation

payments, must remit both payments and fees prior to the SSI payment date.

2000

Public Law 106-554, 

enacted December 21

Changes the effective date of above provision from 2009 to 2001.

10. Overpayment Recovery

1984

Public Law 98-369, 

enacted July 18

Limits the rate of recovering overpayments from monthly payments to the lesser

of: (1) the monthly payment, or (2) 10 percent of a recipient’s monthly income.

Permits a higher or lower adjustment at the request of the recipient subject to the

agreement of the Commissioner. The limit does not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part

of the recipient or spouse in connection with the overpayment.
2009 SSI Annual Report

78

Act

Waives recovery of certain overpayments due to amount of excess resources of

$50 or less.

Provides authority for the recovery of overpayments from tax refunds.

1998

Public Law 105-306, 

enacted October 28

Authorizes SSA to collect SSI overpayments for individuals not currently eligible for SSI cash benefits by offsetting Old-Age, Survivors, and Disability Insurance (OASDI) benefits, with a maximum monthly offset of no more than 10

percent of the Social Security benefit. 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.

1999

Public Law 106-169, 

enacted December 14

Makes a representative payee liable for an SSI overpayment caused by a payment made to the representative payee on behalf of a recipient, after the recipient’s death and requires SSA to establish an overpayment control record under

the representative payee’s Social Security number. 

Requires SSA to recover SSI overpayments from SSI lump-sum amounts by

withholding at least 50 percent of the lump-sum payment or the amount of the

overpayment, whichever is less.

Extends all of the debt collection authorities currently available for the collection of overpayments under the OASDI program to the SSI program.

2004

Public Law 108-203, 

enacted March 2

Provides for recovery of overpayment of SSI benefits by withholding from

OASDI and Special Veterans’ benefits up to 100 percent of any underpayment

of benefits and 10 percent of ongoing monthly benefits. The 10 percent 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.

Also provides for recovery of overpayment of OASDI or Special Veterans’ benefits by withholding from SSI up to 100 percent of any underpayment of benefits, but limits any recovery from SSI benefits to the lesser of 100 percent of the

monthly benefit or 10 percent of the individual’s total monthly income.

Effective with respect to overpayments that are outstanding at the time of enactment. 
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2009 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);

 • Rebate payment received under the Economic Stimulus Act of 2008, and any other credit or refund

under section 6428 of the Internal Revenue Code;

 • Amounts received pursuant to the Making Work Pay tax credit set forth in the American Recovery

and Reinvestment Act of 2009;

 • Any refundable child tax credit;

 • The first $30 of earned income in a quarter if it is infrequent or irregular, that is, (1) if it is received

only once in a calendar quarter from a single source and is not also received in the month immediately

preceding or the month immediately following the month of receipt regardless of whether or not these

payments occur in different calendar quarters or (2) if its receipt cannot reasonably be expected;

 • Up to $1,6401 per month but not more than $6,600 in a calendar year received by a blind or disabled

recipient who is a working student under age 22 and 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 652;

 • 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 652;

 • 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; 

 • Cash or in-kind income provided under an AmeriCorps program;

 • Any earned income deposited into either a Temporary Assistance for Needy Families (TANF) or

Assets for Independence Act individual development account (IDA); and

1 Increased from $1,550 and $6,240, respectively, effective January 1, 2009 (73 FR 64651). Under current regulations this exclusion is increased yearly

based on changes in the cost of living.

2 Amounts used to pay impairment-related work expenses are deducted before the one-half of earned income deduction, whereas amounts used to pay the

work expenses of the blind are deducted after the one-half of earned income deduction. In effect, amounts of blind work expenses reduce SSI earned income

twice as much as the same amounts of impairment-related work expenses.
2009 SSI Annual Report

80

 • 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, fellowship, or gift to an individual used for paying tuition, fees or

other necessary educational expenses. Portions set aside for food or shelter are counted;

 • Food raised by a household if it is consumed by that household;

 • Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided

under any Federal statute because of a catastrophe which the President of the United States declares to

be a major disaster;

 • Assistance received under a program for flood mitigation activities;

 • The first $60 of unearned income in a quarter if it is infrequent or irregular, that is, (1) if it is received

only once in a calendar quarter from a single source and is not also received in the month immediately

preceding or the month immediately following the month of receipt regardless of whether or not these

payments occur in different calendar quarters or (2) if its receipt cannot reasonably be expected;

 • Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or

disabled individual in the month before he/she attained age 65;

 • Periodic payments made by a State under a program established before July 1, 1973, and based solely

on the recipient’s length of residence and attainment of age 65;

 • Payments for providing foster care to an ineligible child who was placed in the recipient’s home by a

public or private nonprofit child placement or child care agency;

 • Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial

arrangement which are left to accumulate and become part of the separately identifiable burial fund;

 • Certain support and maintenance assistance provided in the form of home energy assistance;

 • One-third of support payments made by an absent parent if the recipient is a child;

 • The first $20 of unearned income in a month other than income in the form of in-kind support and

maintenance received in the household of another and income based on need;

 • The value of any assistance paid with respect to a dwelling unit under the United States Housing Act

of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act of 1965,

title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959;
81

2009 SSI Annual Report

 • Any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement (effective April 1, 1990) and any interest earned on the value of nonexcludable

burial funds and burial space purchase agreements is excluded from income (effective July 1, 2004);

 • 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;

 • Payments received from State-provided pensions to aged, blind, or disabled veterans (or their

spouses);

 • Relocation assistance provided by a State or local government that is comparable to assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act

of 1970;

 • Hostile fire pay received from one of the uniformed services pursuant to 37 U.S.C. 310 and other

kinds of additional pay received by military personnel in a combat zone;

 • Interest or other earnings on a dedicated account excluded from resources;

 • 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);

 • One-time economic recovery payment received under the American Recovery and Reinvestment Act

of 2009;

 • Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the Assets for Independence Act IDA demonstration project and interest earned on these deposits; 

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416; and

 • Generally, all interest and dividend income earned on countable resources.

3. Resource Exclusions

 • The home in which an individual has ownership interest and which serves as the individual’s principal

place of residence (including the land appertaining thereto);

 • Household goods and personal effects;

 • One automobile if used for transportation for the beneficiary or a member of the beneficiary’s household;

 • Property used in a trade or business which is essential to self-support;

 • Up to $6,000 of nonbusiness property which is essential to self-support;
2009 SSI Annual Report

82

 • Resources of a blind or disabled individual which are necessary to fulfill an approved plan to achieve

self-support;

 • Stock in regional or village corporations held by natives of Alaska during the 20-year period in which

the stock is inalienable pursuant to the Alaska Native Claims Settlement Act;

 • Life insurance owned by an individual (and spouse, if any) provided that all life insurance on any person does not exceed a face value of $1,500;

 • Restricted allotted Indian lands;

 • Disaster relief assistance;

 • Assistance received under a program for flood mitigation activities;

 • Burial spaces and certain funds up to $1,500 for burial expenses;

 • Title XVI or title II retroactive payments (for 9 months following the month of receipt);

 • Housing assistance;

 • Refunds of Federal income taxes and advances made by an employer relating to an earned income tax

credit (for 9 months following the month of receipt);

 • Rebate payment received under the Economic Stimulus Act of 2008, and any other credit or refund

under section 6428 of the Internal Revenue Code, during the month of receipt or the following 2

months;

 • One-time economic recovery payment received under the American Recovery and Reinvestment Act

of 2009, for the month of receipt and the following 9 months;

 • Amounts received pursuant to the Making Work Pay tax credit set forth in the American Recovery

and Reinvestment Act of 2009, for the month of receipt and the following 2 months.

 • Refundable child tax credit (for 9 months following the month of receipt);

 • Grants, scholarships, fellowships or gifts to be used for tuition or educational fees (for 9 months following the month of receipt);

 • Payments received as compensation for expenses incurred or losses suffered as a result of a crime (for

9 months following the month of receipt);

 • Relocation assistance from a State or local government (for 9 months following the month of receipt);

 • Payments made from State-provided pensions to aged, blind, or disabled veterans (or their spouses);

 • Dedicated financial institution accounts for disabled children;

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • Amounts deposited into either a TANF or Assets for Independence Act IDA, including matching

funds and interest earned on such amounts;
83

2009 SSI Annual Report

 • 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.
2009 SSI Annual Report

84

C. HISTORICAL ALLOWANCE DATA

At the end of 2008, 84 percent of SSI recipients were receiving benefits based on a determination of disability or blindness. Claims are filed at a local Social Security office and claims requiring an evaluation of

disability are sent to the State DDS for a decision. Initial DDS decisions that are unfavorable to the applicant may be appealed. Historically, 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 request 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.1 However,

since the mid-1990s SSA has conducted small pilots testing revisions to this process and introduced a

modification of this process that has been utilized in 10 States for applications filed on or after October 1,

1999. Under this revised process, the first level of appeal of an initial determination is a request for hearing before an ALJ, thereby eliminating the reconsideration step.

Such a process of application and appeal can, in some cases, span several years. However, before 1993,

the only data available on the disability determination process resided in files compiled at each separate

stage of the process and only captured various point-in-time snapshots. A complete picture of the disability determination process can be fully understood only by compiling a longitudinal database from administrative records at all levels of appeal. Beginning in 1993, such a longitudinal database (the “Disability

Research File”) was constructed by SSA’s Office of Disability Programs to assist the agency in understanding and managing this process. In constructing this database, some problems were encountered due to

inconsistencies in the data collected from all the respective levels of appeal. The following sections

present some additional details and qualifications essential to a complete understanding of the resulting

data. Following these technical notes are tables based on the Disability Research File which show the latest available summary of results on disability determinations under title XVI.

1. Technical Notes on the Disability Research File

Methods used to build the title XVI Disability Research File—The “base” file for the title XVI research

file is the Supplemental Security Record (SSR). This “base” file is matched against records from various

other administrative sources, including transactions from the disability determination (SSA-831) files,

Social Security number identification records and earnings data, and ODAR case control data. 

The process used to build this research file is cumbersome, involving about 200 steps, and generally

requiring 2 to 4 months to complete. Much of this complexity flows from the fact that the file is assembled

based on filing date cohorts, even though many of the source files do not contain a filing date. The three

most recent calendar year cohorts are completely reassembled from the basic data sources. Older calendar

year cohorts are updated to reflect activity since the last time the file was built. Since the process is so time

consuming, the research file is updated only annually (usually beginning in July). Therefore, research file

data are not yet available for claims filed in 2008.

Methods used for estimating results (through February 2009) for claims filed in 2008—Although decision

counts are available for 2008 filers (from many of the “source” files), those counts do not translate directly

1 Implementation of the Disability Service Improvement (DSI) process began in the Boston region in August 2006. The DSI process eliminated reconsideration as the first level of appeal of an initial disability determination and introduced review by the Office of the Federal Reviewing Official (OFedRO) in its

place. By final rule published in the Federal Register (73 FR 2411) SSA suspended new claims to the OFedRO level; this change was effective March 23,

2008 (73 FR 10381). For those initial disability appeals that had not been transferred to OFedRO on or before the effective date, the procedure for the first

level of appeal reverted to that which was in place prior to August 2006; i.e., reconsideration. The DSI regulations also modified administrative appeal of an

ALJ’s decision or dismissal. These modifications remain in effect in the Boston region.
85

2009 SSI Annual Report

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 2009) for 2008 filers, we started from the

latest available transaction data, such as the SSA-831 data, and took into account recent years’ experience

of the relationship between corresponding earlier transaction data and the resulting claims/appeals data in

completed research files. Estimates of ODAR appeals activity are taken from a file which tracks individual

claimants, rather than individual claims. Therefore, this may result in a slight undercount of ODAR activity. 

While we believe that the methods used are reasonable, it must be emphasized that the resulting estimates

may prove to be of limited reliability, especially in light of the fact that the estimates give results only

through February 2009, whereas the final research files will reflect information through June 2009. Actual

data for 2008 will be available to replace these estimates in the 2010 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2007 filers are as of August 2008 for decisions at the DDS and OFedRO levels. Results

for those years’ filers have been updated to include results at the hearing and Appeals Council levels

and Federal courts through August 2008. 

 • Data for 2008 filers are preliminary estimates as of February 2009, and reflect larger numbers of

claims still pending. February 2009 data on number of claims appealed may be too low because larger

numbers of claimants are still within the period allowed for filing an appeal (i.e., larger numbers of

recently denied claimants who have not yet filed an appeal may appeal before the time limit runs out). 

 • Remaining appeals will affect the results. Since allowances are generally processed more quickly than

denials, we expect that the percent allowed will ultimately be lower as all cases are processed. 

 • In certain pilot activities and under the revised process introduced October 1, 1999 in 10 States, initial

denials can be appealed directly to ODAR without a separate reconsideration step. As a result the

appeals of initial denials shown in these tables include cases which will not receive a decision at the

reconsideration level.

 • The cases appealed to the OFedRO level under the DSI process are not shown separately, but are

included in these tables in the reconsideration counts.
2009 SSI Annual Report

86

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

Year of Filing a and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent b Number Percent b Number c Percent d

1988 946,603 — 272,204 28.8 674,399 71.2 265,151 39.3

1989 969,218 — 292,044 30.1 677,174 69.9 274,823 40.6

1990 1,099,805 — 347,823 31.6 751,982 68.4 320,207 42.6

1991 1,288,331 — 415,336 32.2 872,995 67.8 383,669 43.9

1992 1,415,624 — 436,888 30.9 978,736 69.1 433,244 44.3

1993 1,503,278 — 416,300 27.7 1,086,978 72.3 485,166 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 75.4 482,533 44.6

1995 1,318,416 — 323,084 24.5 995,332 75.5 439,166 44.1

1996 1,247,926 — 305,351 24.5 942,575 75.5 406,425 43.1

1997 1,110,898 — 292,839 26.4 818,059 73.6 357,973 43.8

1998 1,108,957 — 322,734 29.1 786,223 70.9 339,288 43.2

1999 1,104,975 — 326,607 29.6 778,368 70.4 332,122 42.7

2000 1,139,571 — 344,163 30.2 795,408 69.8 332,503 41.8

2001 1,216,182 — 365,932 30.1 850,250 69.9 355,165 41.8

2002 1,322,683 — 371,233 28.1 951,450 71.9 398,582 41.9

2003 1,403,442 — 378,538 27.0 1,024,904 73.0 424,698 41.4

2004 1,475,930 — 384,208 26.0 1,091,722 74.0 426,986 39.1

2005 1,472,810 — 369,999 25.1 1,102,811 74.9 408,438 37.0

2006 1,500,934 — 363,204 24.2 1,137,730 75.8 416,709 36.6

2007 1,512,117 6,311 364,221 24.2 1,141,585 75.8 413,031 36.2

2008 1,607,355 258,348 412,067 30.5 936,940 69.5 300,800 32.1

Calendar year

of filing 

Reconsiderationse Appeals beyond reconsideration f

Pending

Allowances

Denials

Appeals of

reconsideration denials Allowances

Number Percent b Number g Percent d Pending h Number Percent i Denialsj

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,816 68.4 — 139,698 63.0 82,118

1992 — 58,819 13.6 374,425 260,554 69.6 — 159,084 61.1 101,470

1993 — 57,938 11.9 427,228 294,801 69.0 — 170,402 57.8 124,399

1994 — 55,822 11.6 426,711 293,448 68.8 — 164,537 56.1 128,911

1995 — 51,697 11.8 387,469 264,270 68.2 — 143,582 54.3 120,688

1996 — 49,263 12.1 357,162 242,407 67.9 — 133,323 55.0 109,084

1997 — 47,573 13.4 306,561 213,969 69.8 — 121,619 55.8 96,189

1998 — 46,507 13.7 292,272 203,767 69.7 — 115,323 56.5 88,953

1999 — 42,135 13.3 274,269 193,497 70.6 — 118,768 56.8 90,447

2000 — 39,522 14.3 237,714 169,112 71.1 — 125,568 56.0 98,811

2001 — 38,987 13.9 241,200 172,082 71.3 1,838 136,050 55.5 109,172

2002 — 40,290 12.9 271,278 193,416 71.3 2,689 153,853 55.4 123,888

2003 — 40,861 12.2 293,433 208,070 70.9 5,134 162,217 55.3 131,123

2004 — 38,858 11.6 295,019 209,106 70.9 12,395 162,039 55.9 127,781

2005 — 36,407 11.4 283,760 201,515 71.0 39,269 143,300 57.2 107,217

2006 — 34,858 10.8 289,047 204,908 70.9 150,230 84,298 57.2 63,184

2007 16,317 28,876 9.5 274,703 171,566 62.5 230,025 21,214 61.2 13,462

2008 66,809 20,144 12.1 146,905 76,109 51.8 136,239 4,987 73.2 1,825
87

2009 SSI Annual Report

a Data for claims filed in 1988-2007 reflect results as of August 2008. The numbers of total claims filed for 2005-07 are subject to change. Data for claims

filed in 2008 are preliminary estimates as of February 2009. The ultimate numbers of allowances and denials are subject to change until all initial decisions

have been completed and all appeals are final.

b Percentage of decisions at this level.

c Includes certain cases which can be appealed directly to the hearing level.

d Percentage of denials at this level appealed to next level.

e Includes cases reviewed by a Federal Reviewing Official (FedRO) as part of the DSI process.

f Includes cases appealed to the hearing and Appeals Council levels and to the Federal courts.

g Number of persons appealing beyond the reconsideration level.

h Includes cases remanded to SSA from the Federal courts.

i Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

j Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

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

Year of Filing a and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1988 946,603 — 946,603 393,003 — 553,600

1989 969,218 — 969,218 425,718 — 543,500

1990 1,099,805 — 1,099,805 508,976 — 590,829

1991 1,288,331 — 1,288,331 614,191 — 674,140

1992 1,415,624 — 1,415,624 654,791 — 760,833

1993 1,503,278 — 1,503,278 644,640 — 858,638

1994 1,436,958 — 1,436,958 574,354 — 862,604

1995 1,318,416 — 1,318,416 518,363 — 800,053

1996 1,247,926 — 1,247,926 487,937 — 759,989

1997 1,110,898 — 1,110,898 462,031 — 648,867

1998 1,108,957 — 1,108,957 484,564 — 624,393

1999 1,104,975 — 1,104,975 487,510 — 617,465

2000 1,139,571 — 1,139,571 509,253 — 630,318

2001 1,216,182 — 1,216,182 540,969 1,838 673,375

2002 1,322,683 — 1,322,683 565,376 2,689 754,618

2003 1,403,442 — 1,403,442 581,616 5,134 816,692

2004 1,475,930 — 1,475,930 585,105 12,395 878,430

2005 1,472,810 — 1,472,810 549,706 39,269 883,835

2006 1,500,934 — 1,500,934 482,360 150,230 868,344

2007 1,512,117 6,311 1,505,806 414,311 246,342 845,153

2008 1,607,355 258,348 1,349,007 437,198 203,048 708,761

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1988 — 41.5 — 58.5 41.5 — 58.5

1989 — 43.9 — 56.1 43.9 — 56.1

1990 — 46.3 — 53.7 46.3 — 53.7

1991 — 47.7 — 52.3 47.7 — 52.3

1992 — 46.3 — 53.7 46.3 — 53.7

1993 — 42.9 — 57.1 42.9 — 57.1

1994 — 40.0 — 60.0 40.0 — 60.0

1995 — 39.3 — 60.7 39.3 — 60.7

1996 — 39.1 — 60.9 39.1 — 60.9

1997 — 41.6 — 58.4 41.6 — 58.4

1998 — 43.7 — 56.3 43.7 — 56.3

1999 — 44.1 — 55.9 44.1 — 55.9

2000 — 44.7 — 55.3 44.7 — 55.3

2001 — 44.5 0.2 55.4 44.5 0.2 55.4

2002 — 42.7 .2 57.1 42.7 .2 57.1

2003 — 41.4 .4 58.2 41.4 .4 58.2

2004 — 39.6 .8 59.5 39.6 .8 59.5

2005 — 37.3 2.7 60.0 37.3 2.7 60.0

2006 — 32.1 10.0 57.9 32.1 10.0 57.9

2007 0.4 27.4 16.3 55.9 27.5 16.4 56.1

2008 16.1 27.2 12.6 44.1 32.4 15.1 52.5
2009 SSI Annual Report

88

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

Year of Filing a and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent b Number Percent b Number c Percent d

1991 250,962 — 148,220 59.1 102,742 40.9 24,702 24.0

1992 372,971 — 189,079 50.7 183,892 49.3 49,297 26.8

1993 496,131 — 212,268 42.8 283,863 57.2 75,967 26.8

1994 525,013 — 172,219 32.8 352,794 67.2 92,093 26.1

1995 487,730 — 144,231 29.6 343,499 70.4 86,841 25.3

1996 453,473 — 127,416 28.1 326,057 71.9 75,013 23.0

1997 332,032 — 106,528 32.1 225,504 67.9 51,493 22.8

1998 335,732 — 123,249 36.7 212,483 63.3 50,110 23.6

1999 342,153 — 128,543 37.6 213,610 62.4 49,573 23.2

2000 349,288 — 136,989 39.2 212,299 60.8 48,091 22.7

2001 367,751 — 151,288 41.1 216,463 58.9 49,089 22.7

2002 402,130 — 163,772 40.7 238,358 59.3 55,863 23.4

2003 425,365 — 171,183 40.2 254,182 59.8 59,431 23.4

2004 435,629 — 173,163 39.8 262,466 60.2 58,135 22.1

2005 425,139 — 162,084 38.1 263,055 61.9 54,544 20.7

2006 433,132 — 159,577 36.8 273,555 63.2 57,672 21.1

2007 435,062 890 160,725 37.0 273,447 63.0 56,937 20.8

2008 449,364 62,159 168,434 43.5 218,771 56.5 41,084 18.8

Calendar year

of filing 

Reconsiderationse Appeals beyond reconsideration f

Pending

Allowances

Denials

Appeals of

reconsideration

denials Allowances

Number Percent b Number g Percent d Pending h Number Percent i Denialsj

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,770 49.6 — 7,523 38.1 12,247

1993 — 11,338 14.9 64,629 31,193 48.3 — 10,638 34.1 20,555

1994 — 11,332 12.3 80,761 38,433 47.6 — 12,954 33.7 25,479

1995 — 10,287 11.8 76,554 35,592 46.5 — 10,924 30.7 24,668

1996 — 9,355 12.5 65,658 27,920 42.5 — 8,853 31.7 19,067

1997 — 8,266 16.2 42,705 18,916 44.3 — 7,027 36.2 12,411

1998 — 7,799 15.6 42,237 18,762 44.4 — 7,034 37.3 11,802

1999 — 7,196 15.5 39,377 17,836 45.3 — 7,833 37.6 13,003

2000 — 6,932 18.3 31,051 14,353 46.2 — 8,928 36.5 15,533

2001 — 6,807 18.7 29,643 13,576 45.8 131 9,338 35.8 16,746

2002 — 7,426 17.9 34,024 15,329 45.1 174 10,418 35.2 19,150

2003 — 7,690 17.1 37,211 16,374 44.0 311 10,682 34.9 19,911

2004 — 7,123 16.2 36,776 15,906 43.3 968 10,344 35.5 18,830

2005 — 7,199 17.1 34,800 15,193 43.7 3,870 8,846 37.1 15,022

2006 — 7,281 16.4 37,235 16,385 44.0 16,306 5,172 39.1 8,063

2007 1,655 6,754 16.0 35,497 14,175 39.9 24,142 1,440 47.0 1,624

2008 7,932 3,156 13.2 20,814 6,589 31.7 15,273 169 33.9 329
89

2009 SSI Annual Report

a Data for claims filed in 1991-2007 reflect results as of August 2008. The numbers of total claims filed for 2005-07 are subject to change. Data for claims

filed in 2008 are preliminary estimates as of February 2009. The ultimate numbers of allowances and denials are subject to change until all initial decisions

have been completed and all appeals are final.

b Percentage of decisions at this level.

c Includes certain cases which can be appealed directly to the hearing level.

d Percentage of denials at this level appealed to next level.

e Includes cases reviewed by a Federal Reviewing Official (FedRO) as part of the DSI process.

f Includes cases appealed to the hearing and Appeals Council levels and to the Federal courts.

g Number of persons appealing beyond the reconsideration level.

h Includes cases remanded to SSA from the Federal courts. i Percentage of decisions at this level. For years in which decisions are still pending, the preliminary percentage shown is expected to ultimately be lower

as all cases are processed. This occurs because allowances are generally processed more quickly than denials.

j 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).

k Less than 0.05 percent.

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

Year of Filing a and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status: Numbers of cases

Total

claims

filed

Initial

decisions

pending

Total

initial

decisions Allowances

Denials

Appeal

decision

pending

No

appeal

pending

1991 250,962 — 250,962 157,709 — 93,253

1992 372,971 — 372,971 206,065 — 166,906

1993 496,131 — 496,131 234,244 — 261,887

1994 525,013 — 525,013 196,505 — 328,508

1995 487,730 — 487,730 165,442 — 322,288

1996 453,473 — 453,473 145,624 — 307,849

1997 332,032 — 332,032 121,821 — 210,211

1998 335,732 — 335,732 138,082 — 197,650

1999 342,153 — 342,153 143,572 — 198,581

2000 349,288 — 349,288 152,849 — 196,439

2001 367,751 — 367,751 167,433 131 200,187

2002 402,130 — 402,130 181,616 174 220,340

2003 425,365 — 425,365 189,555 311 235,499

2004 435,629 — 435,629 190,630 968 244,031

2005 425,139 — 425,139 178,129 3,870 243,140

2006 433,132 — 433,132 172,030 16,306 244,796

2007 435,062 890 434,172 168,919 25,797 239,456

2008 449,364 62,159 387,205 171,759 23,205 192,241

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1991 — 62.8 — 37.2 62.8 — 37.2

1992 — 55.2 — 44.8 55.2 — 44.8

1993 — 47.2 — 52.8 47.2 — 52.8

1994 — 37.4 — 62.6 37.4 — 62.6

1995 — 33.9 — 66.1 33.9 — 66.1

1996 — 32.1 — 67.9 32.1 — 67.9

1997 — 36.7 — 63.3 36.7 — 63.3

1998 — 41.1 — 58.9 41.1 — 58.9

1999 — 42.0 — 58.0 42.0 — 58.0

2000 — 43.8 — 56.2 43.8 — 56.2

2001 — 45.5 k 54.4 45.5 k 54.4

2002 — 45.2 k 54.8 45.2 k 54.8

2003 — 44.6 0.1 55.4 44.6 0.1 55.4

2004 — 43.8 .2 56.0 43.8 .2 56.0

2005 — 41.9 .9 57.2 41.9 .9 57.2

2006 — 39.7 3.8 56.5 39.7 3.8 56.5

2007 0.2 38.8 5.9 55.0 38.9 5.9 55.2

2008 13.8 38.2 5.2 42.8 44.4 6.0 49.6
2009 SSI Annual Report

90

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a recipient is still eligible for SSI and still receiving the correct payment amount. There are two types of redeterminations: scheduled and unscheduled. Except for certain institutionalized individuals, all recipients are

periodically scheduled for a redetermination. Every year SSA schedules for redetermination the cases

most likely to have payment error, but even the cases unlikely to have payment error are scheduled for

review at least once every 6 years. Unscheduled redeterminations are completed on an as needed basis

when recipients report, or we discover, certain changes in circumstances that could affect the continuing

SSI payment amount. The numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations completed and in the numbers

of scheduled redeterminations that were completed during the fiscal year due to administrative resource

limitations and the impact of other workload requirements on the field offices. When redeterminations

cannot be completed in the fiscal year scheduled, they are carried over into the next fiscal year. 

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 indicator to the Supplemental Security Record of the SSI recipient. The limited issue

case is then selected for a field office review of the issue for which the indicator was posted. Beginning in

fiscal year 2007, SSA included limited issue completions with redetermination completions.

Table V.D1 provides historical data on numbers of redeterminations and limited issues completed by fiscal

year. 

Table V.D1.—SSI Redeterminations and Limited Issues Completed, Fiscal Years 1986-2008

[In thousands] 

Numbers of completions

Fiscal year Redeterminations Limited issues Total

1986................................................. 2,278 a

a Data not available.

a

1987................................................. 2,244 a a

1988................................................. 1,997 a a

1989................................................. 2,226 a a

1990................................................. 2,103 a a

1991................................................. 2,138 a a

1992................................................. 2,321 a a

1993................................................. 2,223 a a

1994................................................. b1,900

b Decrease in number of redeterminations completed in fiscal year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

a a

1995................................................. c 1,597

c 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.

a a

1996................................................. 1,763 a a

1997................................................. 1,773 a a

1998................................................. 1,853 a a

1999................................................. 2,122 751 2,873

2000................................................. 2,182 582 2,764

2001................................................. 2,316 589 2,905

2002................................................. 2,311 582 2,894

2003................................................. 2,450 472 2,921

2004................................................. 2,279 248 2,527

2005................................................. d1,725

d Fewer redeterminations were selected in fiscal years 2005-08 due to limitations on administrative funding.

737 2,462

2006................................................. d1,071 348 1,418

2007................................................. d 692 346 e 1,039

e Effective fiscal year 2007, total redeterminations reported by SSA include limited issues.

2008................................................. d 900 321 e 1,221
91

2009 SSI Annual Report

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the Social

Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at

least every 3 years. A similar requirement was not put in place at that time for disabled title XVI recipients. Although the Committee on Finance of the Senate stated in its report on this legislation that the same

continuing disability review (CDR) procedures should be applied with respect to both the title II and

title XVI programs, title XVI was not amended to accomplish this. Section 1614(a)(4) of the Act gives

SSA discretionary authority to conduct periodic CDRs on SSI recipients. On September 28, 1994, SSA

issued a Federal Register notice that periodic SSI CDRs would begin on October 1, 1994. In 1994 and

again in 1996 legislation was enacted adding some mandates for the performance of CDRs under the SSI

program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required to

conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA was

required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who reached age

18 after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for

persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child recipients who reach age 18, with such redetermination being based on the adult eligibility criteria. This law

also added the requirement that a CDR be performed:

 • At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted

in the deferral of full medical reviews for 149,589 cases for which a scheduled title XVI CDR was processed in fiscal year 2008. On January 27, 2007 SSA implemented a streamlined failure to cooperate

(FTC) process for medical CDRs in the field office (FO). Cases where the beneficiaries failed to comply

with the FO’s requests for necessary information during the CDRs have their eligibility for disability benefits terminated after 12 consecutive months of suspension for noncompliance. The streamlined FTC process resulted in the termination of 666 title XVI cases in fiscal year 2008.

For cases involving individuals who receive both title II and title XVI benefits, CDRs are typically initiated as title II CDRs with the results of the review affecting eligibility for benefits under both programs.

Tables V.D2 and V.D3 present the latest available summary of results1 on CDRs of title XVI recipients

performed under titles II and XVI since 1993. These tables include only cases for which a full medical

review was conducted. In particular they do not include:

 • Cases for which a mailer was completed, but for which a full medical review was deferred;

1 The numbers of SSI recipients whose benefits are ceased as a result of CDRs are included in these tables. Estimates of Federal SSI program savings

resulting from the cessation of benefits are reported to Congress in the Annual Report of Continuing Disability Reviews. The most recent such report was

issued November 17, 2008, presenting estimates of the effects of CDRs conducted in fiscal year 2007.
2009 SSI Annual Report

92

 • CDRs initiated as the result of work activity on the part of the beneficiary/recipient;

 • Streamlined FTC terminations; and

 • Miscellaneous other CDRs processed by the State DDS 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.
93

2009 SSI Annual Report

Table V.D2.—SSI Disabled Adult Reviews: Disposition a of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent b Number Percent b Number Percent c

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 16,736 12,484 74.6 4,252 25.4 2,905 68.3

1996 26,884 20,636 76.8 6,248 23.2 4,119 65.9

1997 51,466 40,741 79.2 10,725 20.8 7,344 68.5

1998 81,185 68,533 84.4 12,652 15.6 8,723 68.9

1999 80,816 70,353 87.1 10,463 12.9 6,201 59.3

2000 105,787 93,962 88.8 11,825 11.2 6,851 57.9

2001 110,341 99,666 90.3 10,675 9.7 6,291 58.9

2002 103,947 92,069 88.6 11,878 11.4 7,088 59.7

2003 72,175 63,021 87.3 9,154 12.7 5,444 59.5

2004 84,622 75,047 88.7 9,575 11.3 5,905 61.7

2005 80,597 70,687 87.7 9,910 12.3 5,970 60.2

2006 71,825 63,789 88.8 8,036 11.2 4,852 60.4

2007 26,469 22,893 86.5 3,576 13.5 2,139 59.8

2008 40,045 35,891 89.6 4,154 10.4 2,330 56.1

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,277 76.4 1,010 23.6 665 65.8

1996 55,025 46,273 84.1 8,752 15.9 6,146 70.2

1997 69,557 57,662 82.9 11,895 17.1 8,722 73.3

1998 75,071 64,829 86.4 10,242 13.6 7,239 70.7

1999 140,429 125,079 89.1 15,350 10.9 10,292 67.0

2000 173,470 156,065 90.0 17,405 10.0 10,923 62.8

2001 143,902 126,610 88.0 17,292 12.0 10,262 59.3

2002 172,527 150,837 87.4 21,690 12.6 13,316 61.4

2003 213,212 191,061 89.6 22,151 10.4 14,672 66.2

2004 221,129 199,938 90.4 21,191 9.6 14,629 69.0

2005 110,072 97,330 88.4 12,742 11.6 8,160 64.0

2006 40,605 35,957 88.6 4,648 11.4 2,858 61.5

2007 18,172 16,006 88.1 2,166 11.9 1,412 65.2

2008 18,933 17,049 90.0 1,884 10.0 1,020 54.1

Total reviews, SSI disabled adults

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 21,023 15,761 75.0 5,262 25.0 3,570 67.8

1996 81,909 66,909 81.7 15,000 18.3 10,265 68.4

1997 121,023 98,403 81.3 22,620 18.7 16,066 71.0

1998 156,256 133,362 85.3 22,894 14.7 15,962 69.7

1999 221,245 195,432 88.3 25,813 11.7 16,493 63.9

2000 279,257 250,027 89.5 29,230 10.5 17,774 60.8

2001 254,243 226,276 89.0 27,967 11.0 16,553 59.2

2002 276,474 242,906 87.9 33,568 12.1 20,404 60.8

2003 285,387 254,082 89.0 31,305 11.0 20,116 64.3

2004 305,751 274,985 89.9 30,766 10.1 20,534 66.7

2005 190,669 168,017 88.1 22,652 11.9 14,130 62.4

2006 112,430 99,746 88.7 12,684 11.3 7,710 60.8

2007 44,641 38,899 87.1 5,742 12.9 3,551 61.8

2008 58,978 52,940 89.8 6,038 10.2 3,350 55.5
2009 SSI Annual Report

94

Table V.D2.—SSI Disabled Adult Reviews: Dispositiona of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Reconsiderations Appeals beyond reconsiderationd 

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations b Number e Percent c Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,245 42.9 1,660 1,007 60.7 — 382 37.9 625

1996 — 1,875 45.5 2,244 1,313 58.5 — 427 32.5 886

1997 — 4,297 58.5 3,047 2,257 74.1 — 973 43.1 1,284

1998 — 5,503 63.1 3,220 2,466 76.6 — 1,158 47.0 1,308

1999 — 3,974 64.1 2,227 1,542 69.2 — 679 44.0 863

2000 3 4,427 64.6 2,421 1,556 64.3 — 659 42.4 897

2001 3 4,177 66.4 2,111 1,240 58.7 — 495 39.9 745

2002 9 4,787 67.6 2,292 1,451 63.3 2 594 41.0 855

2003 4 3,575 65.7 1,865 1,176 63.1 — 479 40.7 697

2004 26 3,781 64.3 2,098 1,401 66.8 3 573 41.0 825

2005 111 3,833 65.4 2,026 1,421 70.1 39 587 42.5 795

2006 212 3,046 65.6 1,594 1,129 70.8 190 409 43.6 530

2007 81 1,444 70.2 614 416 67.8 226 68 35.8 122

2008 300 1,493 73.5 537 277 51.6 241 14 38.9 22

Title XVI initiated reviews

1993 — — — — — — — — — —

1994 — — — — — — — — — —

1995 — 241 36.2 424 267 63.0 — 87 32.6 180

1996 — 3,289 53.5 2,857 1,946 68.1 — 623 32.0 1,323

1997 — 5,271 60.4 3,451 2,575 74.6 — 986 38.3 1,589

1998 — 4,527 62.5 2,712 1,987 73.3 — 781 39.3 1,206

1999 — 6,610 64.2 3,682 2,508 68.1 — 973 38.8 1,535

2000 — 6,823 62.5 4,100 2,778 67.8 — 1,057 38.0 1,721

2001 — 6,224 60.7 4,038 2,618 64.8 — 934 35.7 1,684

2002 5 8,160 61.3 5,151 3,321 64.5 — 1,104 33.2 2,217

2003 8 9,656 65.8 5,008 3,334 66.6 — 1,221 36.6 2,113

2004 4 9,404 64.3 5,221 3,741 71.7 2 1,423 38.1 2,316

2005 73 5,235 64.7 2,852 2,016 70.7 27 708 35.6 1,281

2006 69 1,810 64.9 979 672 68.6 95 204 35.4 373

2007 35 951 69.1 426 288 67.6 131 51 32.5 106

2008 10 734 72.7 276 139 50.4 106 14 42.4 19

Total reviews, SSI disabled adults

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,486 41.6 2,084 1,274 61.1 — 469 36.8 805

1996 — 5,164 50.3 5,101 3,259 63.9 — 1,050 32.2 2,209

1997 — 9,568 59.6 6,498 4,832 74.4 — 1,959 40.5 2,873

1998 — 10,030 62.8 5,932 4,453 75.1 — 1,939 43.5 2,514

1999 — 10,584 64.2 5,909 4,050 68.5 — 1,652 40.8 2,398

2000 3 11,250 63.3 6,521 4,334 66.5 — 1,716 39.6 2,618

2001 3 10,401 62.8 6,149 3,858 62.7 — 1,429 37.0 2,429

2002 14 12,947 63.5 7,443 4,772 64.1 2 1,698 35.6 3,072

2003 12 13,231 65.8 6,873 4,510 65.6 — 1,700 37.7 2,810

2004 30 13,185 64.3 7,319 5,142 70.3 5 1,996 38.9 3,141

2005 184 9,068 65.0 4,878 3,437 70.5 66 1,295 38.4 2,076

2006 281 4,856 65.4 2,573 1,801 70.0 285 613 40.4 903

2007 116 2,395 69.7 1,040 704 67.7 357 119 34.3 228

2008 310 2,227 73.3 813 416 51.2 347 28 40.6 41
95

2009 SSI Annual Report

a Data reflect results as of February 2009. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. b Percentage of decisions at this level.

c Percentage of cessations at this level appealed to next level.

d The status and disposition of cases in the Federal courts are not reflected here. However, for cases remanded by the courts to SSA, the status and disposition at ODAR are included. The excluded experience in the Federal courts has a minimal impact on the number of continuations.

e Number of persons appealing beyond the reconsideration level.

f Less than 0.05 percent.

Table V.D2.—SSI Disabled Adult Reviews: Disposition a of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of February 2009

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 16,736 14,111 — 2,625 84.3 — 15.7

1996 26,884 22,938 — 3,946 85.3 — 14.7

1997 51,466 46,011 — 5,455 89.4 — 10.6

1998 81,185 75,194 — 5,991 92.6 — 7.4

1999 80,816 75,006 — 5,810 92.8 — 7.2

2000 105,787 99,048 3 6,736 93.6 f 6.4

2001 110,341 104,338 3 6,000 94.6 f 5.4

2002 103,947 97,450 11 6,486 93.7 f 6.2

2003 72,175 67,075 4 5,096 92.9 f 7.1

2004 84,622 79,401 29 5,192 93.8 f 6.1

2005 80,597 75,107 150 5,340 93.2 0.2 6.6

2006 71,825 67,244 402 4,179 93.6 .6 5.8

2007 26,469 24,405 307 1,757 92.2 1.2 6.6

2008 40,045 37,398 541 2,106 93.4 1.4 5.3

Title XVI initiated reviews

1993 — — — — — — —

1994 — — — — — — —

1995 4,287 3,605 — 682 84.1 — 15.9

1996 55,025 50,185 — 4,840 91.2 — 8.8

1997 69,557 63,919 — 5,638 91.9 — 8.1

1998 75,071 70,137 — 4,934 93.4 — 6.6

1999 140,429 132,662 — 7,767 94.5 — 5.5

2000 173,470 163,945 — 9,525 94.5 — 5.5

2001 143,902 133,768 — 10,134 93.0 — 7.0

2002 172,527 160,101 5 12,421 92.8 f 7.2

2003 213,212 201,938 8 11,266 94.7 f 5.3

2004 221,129 210,765 6 10,358 95.3 f 4.7

2005 110,072 103,273 100 6,699 93.8 .1 6.1

2006 40,605 37,971 164 2,470 93.5 .4 6.1

2007 18,172 17,008 166 998 93.6 .9 5.5

2008 18,933 17,797 116 1,020 94.0 .6 5.4

Total reviews, SSI disabled adults

1993 1,143 1,114 — 29 97.5 — 2.5

1994 10,945 9,845 — 1,100 89.9 — 10.1

1995 21,023 17,716 — 3,307 84.3 — 15.7

1996 81,909 73,123 — 8,786 89.3 — 10.7

1997 121,023 109,930 — 11,093 90.8 — 9.2

1998 156,256 145,331 — 10,925 93.0 — 7.0

1999 221,245 207,668 — 13,577 93.9 — 6.1

2000 279,257 262,993 3 16,261 94.2 f 5.8

2001 254,243 238,106 3 16,134 93.7 f 6.3

2002 276,474 257,551 16 18,907 93.2 f 6.8

2003 285,387 269,013 12 16,362 94.3 f 5.7

2004 305,751 290,166 35 15,550 94.9 f 5.1

2005 190,669 178,380 250 12,039 93.6 .1 6.3

2006 112,430 105,215 566 6,649 93.6 .5 5.9

2007 44,641 41,413 473 2,755 92.8 1.1 6.2

2008 58,978 55,195 657 3,126 93.6 1.1 5.3
2009 SSI Annual Report

96

Table V.D3.—SSI Disabled Child Reviews: Disposition a of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent b Number Percent b Number Percent c

Reviews of low-birth-weight children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 4,231 2,083 49.2 2,148 50.8 665 31.0

1996 5,709 2,491 43.6 3,218 56.4 904 28.1

1997 7,091 4,482 63.2 2,609 36.8 821 31.5

1998 17,620 6,092 34.6 11,528 65.4 3,640 31.6

1999 9,773 4,114 42.1 5,659 57.9 1,639 29.0

2000 10,178 4,566 44.9 5,612 55.1 1,561 27.8

2001 9,086 4,152 45.7 4,934 54.3 1,403 28.4

2002 12,732 5,869 46.1 6,863 53.9 1,955 28.5

2003 7,283 3,516 48.3 3,767 51.7 1,025 27.2

2004 12,060 6,075 50.4 5,985 49.6 1,782 29.8

2005 13,710 6,540 47.7 7,170 52.3 2,009 28.0

2006 8,303 4,030 48.5 4,273 51.5 1,241 29.0

2007 3,175 1,368 43.1 1,807 56.9 509 28.2

2008 5,272 2,231 42.3 3,041 57.7 813 26.7

Redeterminations at age 18

1994 — — — — — — —

1995 71 64 90.1 7 9.9 5 71.4

1996 12,640 8,158 64.5 4,482 35.5 2,055 45.9

1997 48,834 22,431 45.9 26,403 54.1 16,741 63.4

1998 40,945 21,453 52.4 19,492 47.6 10,915 56.0

1999 49,557 27,413 55.3 22,144 44.7 10,879 49.1

2000 51,713 28,863 55.8 22,850 44.2 11,021 48.2

2001 48,944 28,167 57.5 20,777 42.5 10,049 48.4

2002 54,947 32,388 58.9 22,559 41.1 11,552 51.2

2003 53,905 31,862 59.1 22,043 40.9 11,744 53.3

2004 53,232 31,890 59.9 21,342 40.1 11,584 54.3

2005 55,331 31,434 56.8 23,897 43.2 12,513 52.4

2006 40,640 21,796 53.6 18,844 46.4 9,394 49.9

2007 71,359 36,339 50.9 35,020 49.1 18,218 52.0

2008 69,430 34,547 49.8 34,883 50.2 17,496 50.2

All other reviews of SSI disabled children

1994 — — — — — — —

1995 3,535 2,501 70.7 1,034 29.3 541 52.3

1996 789 399 50.6 390 49.4 210 53.8

1997 14 8 57.1 6 42.9 3 50.0

1998 91,157 67,203 73.7 23,954 26.3 13,267 55.4

1999 183,211 129,420 70.6 53,791 29.4 28,410 52.8

2000 140,699 106,583 75.8 34,116 24.2 17,014 49.9

2001 95,835 72,896 76.1 22,939 23.9 11,809 51.5

2002 163,768 130,434 79.6 33,334 20.4 17,894 53.7

2003 127,444 100,522 78.9 26,922 21.1 14,889 55.3

2004 103,437 80,748 78.1 22,689 21.9 12,851 56.6

2005 61,387 45,597 74.3 15,790 25.7 8,457 53.6

2006 19,384 14,428 74.4 4,956 25.6 2,559 51.6

2007 4,440 3,161 71.2 1,279 28.8 644 50.4

2008 4,707 3,473 73.8 1,234 26.2 496 40.2

Total reviews, SSI disabled children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 7,837 4,648 59.3 3,189 40.7 1,211 38.0

1996 19,138 11,048 57.7 8,090 42.3 3,169 39.2

1997 55,939 26,921 48.1 29,018 51.9 17,565 60.5

1998 149,722 94,748 63.3 54,974 36.7 27,822 50.6

1999 242,541 160,947 66.4 81,594 33.6 40,928 50.2

2000 202,590 140,012 69.1 62,578 30.9 29,596 47.3

2001 153,865 105,215 68.4 48,650 31.6 23,261 47.8

2002 231,447 168,691 72.9 62,756 27.1 31,401 50.0

2003 188,632 135,900 72.0 52,732 28.0 27,658 52.5

2004 168,729 118,713 70.4 50,016 29.6 26,217 52.4

2005 130,428 83,571 64.1 46,857 35.9 22,979 49.0

2006 68,327 40,254 58.9 28,073 41.1 13,194 47.0

2007 78,974 40,868 51.7 38,106 48.3 19,371 50.8

2008 79,409 40,251 50.7 39,158 49.3 18,805 48.0
97

2009 SSI Annual Report

Table V.D3.—SSI Disabled Child Reviews: Disposition a of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration d

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending

Continuations

Number Percent Cessations b Number e Percent c Number Percent

Reviews of low-birth-weight children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 184 27.7 481 219 45.5 — 53 24.2 166

1996 — 329 36.4 575 232 40.3 — 44 19.0 188

1997 — 292 35.6 529 235 44.4 — 50 21.3 185

1998 — 1,231 33.8 2,409 1,142 47.4 — 244 21.4 898

1999 — 607 37.0 1,032 488 47.3 — 83 17.0 405

2000 — 609 39.0 952 452 47.5 — 99 21.9 353

2001 — 504 35.9 899 405 45.1 — 61 15.1 344

2002 2 698 35.7 1,255 549 43.7 — 112 20.4 437

2003 — 364 35.5 661 300 45.4 — 59 19.7 241

2004 1 643 36.1 1,138 553 48.6 3 79 14.4 471

2005 31 703 35.5 1,275 609 47.8 13 94 15.8 502

2006 48 421 35.3 772 378 49.0 48 57 17.3 273

2007 32 171 35.8 306 143 46.7 61 13 15.9 69

2008 211 195 32.4 407 143 35.1 119 2 8.3 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 — 4,591 27.4 12,150 6,429 52.9 — 1,517 23.6 4,912

1998 — 3,070 28.1 7,845 4,388 55.9 — 1,026 23.4 3,362

1999 — 3,356 30.8 7,523 4,304 57.2 — 1,059 24.6 3,245

2000 — 3,575 32.4 7,446 4,034 54.2 — 1,017 25.2 3,017

2001 — 3,256 32.4 6,793 3,723 54.8 — 967 26.0 2,756

2002 4 3,819 33.1 7,729 4,124 53.4 1 1,094 26.5 3,029

2003 6 3,818 32.5 7,920 4,291 54.2 — 1,130 26.3 3,161

2004 3 3,531 30.5 8,050 4,643 57.7 22 1,239 26.8 3,382

2005 258 3,770 30.8 8,485 4,978 58.7 138 1,271 26.3 3,569

2006 418 2,595 28.9 6,381 3,680 57.7 581 797 25.7 2,302

2007 1,720 4,782 29.0 11,716 6,384 54.5 3,089 862 26.2 2,433

2008 4,536 4,364 33.7 8,596 3,563 41.4 2,882 144 21.1 537

All other reviews of SSI disabled children

1994 — — — — — — — — — —

1995 — 177 32.7 364 202 55.5 — 52 25.7 150

1996 — 69 32.9 141 55 39.0 — 17 30.9 38

1997 — 1 33.3 2 1 50.0 — — — 1

1998 — 4,456 33.6 8,811 5,511 62.5 — 1,305 23.7 4,206

1999 — 9,324 32.8 19,086 11,711 61.4 — 2,615 22.3 9,096

2000 — 6,434 37.8 10,580 6,237 59.0 — 1,427 22.9 4,810

2001 1 4,619 39.1 7,189 4,257 59.2 — 955 22.4 3,302

2002 8 7,238 40.5 10,648 6,153 57.8 1 1,368 22.2 4,784

2003 13 6,248 42.0 8,628 4,998 57.9 2 1,139 22.8 3,857

2004 5 4,871 37.9 7,975 4,936 61.9 22 1,146 23.3 3,768

2005 146 3,122 37.6 5,189 3,250 62.6 126 687 22.0 2,437

2006 66 943 37.8 1,550 990 63.9 190 183 22.9 617

2007 18 264 42.2 362 209 57.7 96 33 29.2 80

2008 48 200 44.6 248 115 46.4 98 4 23.5 13

Total reviews, SSI disabled children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 363 30.0 848 423 49.9 — 106 25.1 317

1996 — 1,105 34.9 2,064 871 42.2 — 180 20.7 691

1997 — 4,884 27.8 12,681 6,665 52.6 — 1,567 23.5 5,098

1998 — 8,757 31.5 19,065 11,041 57.9 — 2,575 23.3 8,466

1999 — 13,287 32.5 27,641 16,503 59.7 — 3,757 22.8 12,746

2000 — 10,618 35.9 18,978 10,723 56.5 — 2,543 23.7 8,180

2001 1 8,379 36.0 14,881 8,385 56.3 — 1,983 23.6 6,402

2002 14 11,755 37.5 19,632 10,826 55.1 2 2,574 23.8 8,250

2003 19 10,430 37.7 17,209 9,589 55.7 2 2,328 24.3 7,259

2004 9 9,045 34.5 17,163 10,132 59.0 47 2,464 24.4 7,621

2005 435 7,595 33.7 14,949 8,837 59.1 277 2,052 24.0 6,508

2006 532 3,959 31.3 8,703 5,048 58.0 819 1,037 24.5 3,192

2007 1,770 5,217 29.6 12,384 6,736 54.4 3,246 908 26.0 2,582

2008 4,795 4,759 34.0 9,251 3,821 41.3 3,099 150 20.8 572
2009 SSI Annual Report

98

a Data reflect results as of February 2009. The ultimate numbers of continuations and cessations are subject to change until all appeals are final. b Percentage of decisions at this level.

c Percentage of cessations at this level appealed to next level.

d The status and disposition of cases in the Federal courts are not reflected here. However, for cases remanded by the courts to SSA, the status and disposition at ODAR are included. The excluded experience in the Federal courts has a minimal impact on the number of continuations.

e Number of persons appealing beyond the reconsideration level.

f Less than 0.05 percent.

Table V.D3.—SSI Disabled Child Reviews: Disposition a of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of February 2009

Numbers of cases Numbers as a percentage of total initial decisions

Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending Continuations

Cessations

pending an

appeal decision

Cessations

with no

appeal pending

Reviews of low-birth-weight children

1994 1,225 830 — 395 67.8 — 32.2

1995 4,231 2,320 — 1,911 54.8 — 45.2

1996 5,709 2,864 — 2,845 50.2 — 49.8

1997 7,091 4,824 — 2,267 68.0 — 32.0

1998 17,620 7,567 — 10,053 42.9 — 57.1

1999 9,773 4,804 — 4,969 49.2 — 50.8

2000 10,178 5,274 — 4,904 51.8 — 48.2

2001 9,086 4,717 — 4,369 51.9 — 48.1

2002 12,732 6,679 2 6,051 52.5 f 47.5

2003 7,283 3,939 — 3.344 54.1 — 45.9

2004 12,060 6,797 4 5,259 56.4 f 43.6

2005 13,710 7,337 44 6,329 53.5 0.3 46.2

2006 8,303 4,508 96 3,699 54.3 1.2 44.6

2007 3,175 1,552 93 1,530 48.9 2.9 48.2

2008 5,272 2,428 330 2,514 46.1 6.3 47.7

Redeterminations at age 18

1994 — — — — — — —

1995 71 67 — 4 94.4 — 5.6

1996 12,640 8,984 — 3,656 71.1 — 28.9

1997 48,834 28,539 — 20,295 58.4 — 41.6

1998 40,945 25,549 — 15,396 62.4 — 37.6

1999 49,557 31,828 — 17,729 64.2 — 35.8

2000 51,713 33,455 — 18,258 64.7 — 35.3

2001 48,944 32,390 — 16,554 66.2 — 33.8

2002 54,947 37,301 5 17,641 67.9 f 32.1

2003 53,905 36,810 6 17,089 68.3 f 31.7

2004 53,232 36,660 25 16,547 68.9 f 31.1

2005 55,331 36,475 396 18,460 65.9 .7 33.4

2006 40,640 25,188 999 14,453 62.0 2.5 35.6

2007 71,359 41,983 4,809 24,567 58.8 6.7 34.4

2008 69,430 39,055 7,418 22,957 56.3 10.7 33.1

All other reviews of SSI disabled children

1994 — — — — — — —

1995 3,535 2,730 — 805 77.2 — 22.8

1996 789 485 — 304 61.5 — 38.5

1997 14 9 — 5 64.3 — 35.7

1998 91,157 72,964 — 18,193 80.0 — 20.0

1999 183,211 141,359 — 41,852 77.2 — 22.8

2000 140,699 114,444 — 26,255 81.3 — 18.7

2001 95,835 78,470 1 17,364 81.9 f 18.1

2002 163,768 139,040 9 24,719 84.9 f 15.1

2003 127,444 107,909 15 19,520 84.7 f 15.3

2004 103,437 86,765 27 16,645 83.9 f 16.1

2005 61,387 49,406 272 11,709 80.5 .4 19.1

2006 19,384 15,554 256 3,574 80.2 1.3 18.4

2007 4,440 3,458 114 868 77.9 2.6 19.5

2008 4,707 3,677 146 884 78.1 3.1 18.8

Total reviews, SSI disabled children

1994 1,225 830 — 395 67.8 — 32.2

1995 7,837 5,117 — 2,720 65.3 — 34.7

1996 19,138 12,333 — 6,805 64.4 — 35.6

1997 55,939 33,372 — 22,567 59.7 — 40.3

1998 149,722 106,080 — 43,642 70.9 — 29.1

1999 242,541 177,991 — 64,550 73.4 — 26.6

2000 202,590 153,173 — 49,417 75.6 — 24.4

2001 153,865 115,577 1 38,287 75.1 f 24.9

2002 231,447 183,020 16 48,411 79.1 f 20.9

2003 188,632 148,658 21 39,953 78.8 f 21.2

2004 168,729 130,222 56 38,451 77.2 f 22.8

2005 130,428 93,218 712 36,498 71.5 .5 28.0

2006 68,327 45,250 1,351 21,726 66.2 2.0 31.8

2007 78,974 46,993 5,016 26,965 59.5 6.4 34.1

2008 79,409 45,160 7,894 26,355 56.9 9.9 33.2
99

2009 SSI Annual Report

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled or blind recipients have worked and

received SSI payments. Initially, the program contained a basic earned income exclusion that recognized

the additional costs associated with employment. In addition, the law contained a number of special

income exclusions which were intended as work incentives. Among these provisions were the income

exclusion for blind work expenses (BWE), plan to achieve self-support (PASS), and student earned

income exclusion (SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

 • Providing for an earned income exclusion for impairment-related work expenses (IRWE);

 • Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

 • Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

 • Establishing section 1619 which provided:

 — In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to

represent substantial gainful activity (SGA), and

 — In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs.1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure V.E1 presents this information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the SSI Annual Statistical Report. Pub. No. 13-

11827, prepared by the Office of Research, Evaluation, and Statistics, Social Security Administration.
2009 SSI Annual Report

100

a Increases in 2001 and subsequent years are based on increases in the national average wage index.

b Workers’ earnings are above SGA level.

c Workers’ earnings are at or below SGA level.

d 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

e Increased to $700 in July 1999.

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive 

provisions: (1) plan to achieve self-support (PASS), (2) impairment-related work expense exclusion 

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-2008

Year

SGA

level a

In current-payment status 1619(b)

workers d Total1619(a) workers workers b Other workers c

1987...................................... $300 14,559 142,664 15,632 172,855

1988...................................... 300 19,920 153,599 15,625 189,144

1989...................................... 300 25,655 161,928 18,254 205,837

1990...................................... 500 13,994 182,421 23,517 219,932

1991...................................... 500 15,531 186,824 27,264 229,619

1992...................................... 500 17,603 199,665 31,649 248,917

1993...................................... 500 20,028 210,322 35,299 265,649

1994...................................... 500 24,315 217,478 40,683 282,476

1995...................................... 500 28,060 223,573 47,002 298,635

1996...................................... 500 31,085 225,310 51,905 308,300

1997...................................... 500 34,673 228,093 57,089 319,855

1998...................................... 500 37,271 229,662 59,542 326,475

1999...................................... e 700 25,528 245,825 69,265 340,618

2000...................................... 700 27,542 249,313 83,572 360,427

2001...................................... 740 22,100 247,555 76,455 346,110

2002...................................... 780 17,271 241,462 82,177 340,910

2003...................................... 800 17,132 235,453 71,097 323,682

2004...................................... 810 17,114 237,409 73,681 328,204

2005...................................... 830 17,621 240,744 78,205 336,570

2006...................................... 860 17,394 242,676 89,350 349,420

2007...................................... 900 16,939 242,854 97,551 357,344

2008...................................... 940 16,142 240,138 99,482 355,762

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

as of December, 1987-2008

[In thousands]

0

50

100

150

200

250

300

350

400

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Year

1619(b) workers

1619(a) workers

Recipients in current-pay

working at or below SGA
101

2009 SSI Annual Report

(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.

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.

a In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, with increases in 2001 and subsequent years based on increases in the national average wage index. In January 2009 the SGA level was increased to $980.

b Workers’ earnings are at or below the SGA level. c 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes. d Estimated.

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

in Other Work Incentives as of December, 1990-2008

Year

PASS a

a For years 1990 through 1996, data do not include PASS plans which exclude only resources.

Non-workers Workers Total IRWE BWE

1990 ..................................... 1,215 1,040 2,255 5,384 4,385

1991 ..................................... 1,969 1,601 3,570 6,546 4,330

1992 ..................................... 3,189 2,658 5,847 7,813 4,454

1993 ..................................... 4,528 3,602 8,130 8,629 4,406

1994 ..................................... 5,842 4,487 10,329 9,484 4,380

1995 ..................................... 5,719 4,603 10,322 9,940 4,433

1996 ..................................... 2,760 1,944 4,704 9,799 4,230

1997 ..................................... 1,290 708 1,998 9,637 4,116

1998 ..................................... 712 362 1,074 9,301 3,802

1999 ..................................... 698 347 1,045 9,520 3,971

2000 ..................................... 862 520 1,382 9,422 3,895

2001 ..................................... 1,024 576 1,600 8,798 3,642

2002 ..................................... 1,150 571 1,721 8,047 3,386

2003 ..................................... 1,181 524 1,705 7,604 3,074

2004 ..................................... 1,112 486 1,598 6,874 2,827

2005 ..................................... 1,089 493 1,582 6,310 2,552

2006 ..................................... 1,098 485 1,583 5,650 2,370

2007 ..................................... 1,003 512 1,515 5,161 2,142

2008 ..................................... 1,074 485 1,559 4,572 1,925

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

Disabled Working Recipients, as of December, 1987-2008 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b)

workers c Total

1619(a) workers workers a Other workers b

1987..................................... $494 d $124 $739 d $211

1988..................................... 522 d 127 721 d 218

1989..................................... 518 d 131 712 d 231

1990..................................... 712 145 746 245

1991..................................... 724 148 780 262

1992..................................... 726 150 781 271

1993..................................... 728 153 784 280

1994..................................... 746 157 803 301

1995..................................... 754 160 834 322

1996..................................... 764 162 881 344

1997..................................... 772 164 932 367

1998..................................... 772 182 954 390

1999..................................... 926 207 980 418

2000..................................... 945 239 1,048 481

2001..................................... 1,004 252 1,043 475

2002..................................... 1,043 253 1,094 495

2003..................................... 1,059 241 1,081 469

2004..................................... 1,076 246 1,070 474

2005..................................... 1,111 255 1,118 500

2006..................................... 1,166 258 1,193 542

2007..................................... 1,193 262 1,267 581

2008..................................... 1,235 259 1,340 605
2009 SSI Annual Report

102

2. Vocational Rehabilitation/Ticket to Work Program 

Provisions designed to make vocational rehabilitation (VR) services available to SSI blind or disabled

recipients have been part of the SSI program since its inception. From the beginning, SSI recipients were

referred to State VR agencies, which provided services to those recipients who were accepted as clients.

Prior to 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981

amendments changed this and established a “cost” reimbursement provision. VR agencies would be

reimbursed for the cost of VR services furnished to blind or disabled SSI recipients only if the services

resulted in the recipient returning to work. For reimbursement purposes, recipients are considered to have

returned to work if they have had earnings exceeding the SGA level for 9 continuous months. 

The 1984 amendments authorized reimbursement for cases1 where the recipient medically recovers while

engaged in a program of rehabilitation services approved by SSA and SSA determines that continuation or

completion of such a program would increase the likelihood the individual will be permanently removed

from the rolls. Effective with the 1990 amendments, reimbursement for the cost of VR services was authorized for services provided in months in which the individual was not receiving Federal SSI benefits if the

individual: 

 • Had special SSI recipient status for Medicaid purposes under section 1619(b) of the Social Security

Act; 

 • Received a Federally-administered State supplementary payment; or 

 • Had SSI benefits suspended for fewer than 13 consecutive months for a reason other than cessation of

disability or blindness. 

In 1994, the regulations were amended to include reimbursement to alternate private and non-State public

VR providers (referred to as “alternate participants”) that provided VR services to recipients that a State

VR agency had not accepted as clients. The alternate provider program has subsequently been replaced by

the Ticket to Work and Self-Sufficiency program (Ticket to Work program) established by the Ticket to

Work and Work Incentives Improvement Act of 1999.

Under the Ticket to Work program, a disabled beneficiary may obtain vocational rehabilitation,

employment and other support services from qualified private or public providers that are referred to as

“Employment Networks” (ENs). The Ticket to Work program authorized the Commissioner to provide

payments to ENs under either an outcome payment system or an outcome-milestone payment system.

(State VR agencies were provided the option to elect on a case-by-case basis to be paid either under the

traditional VR reimbursement system, or either the outcome or outcome-milestone payment system.) By

expanding the pool of providers and giving the providers incentives for achieving success, this program

expands access to these services for persons with disabilities to assist them in finding, entering, and

retaining employment as well as reducing their dependence on cash benefits. 

The Ticket to Work program was implemented on a State-by-State basis beginning in February 2002 and

has been fully implemented nationwide since November 2003. As the Ticket to Work program was

implemented in a State, the alternate provider and the traditional VR referral process described earlier

were eliminated. SSA provided eligible individuals who received SSI benefits due to blindness or

disability in such State with a Ticket to Work document (“ticket”). Beneficiaries who receive a ticket may

use it to obtain from ENs or their State VR agencies vocational rehabilitation services, employment

services and other support services needed to return to work or go to work for the first time. Individuals

1 The 1980 amendments provided for benefit continuation for such SSI recipients who were continuing in a VR program after their disability had ceased.

The provision was extended to blind recipients effective April, 1988.
103

2009 SSI Annual Report

not eligible for a ticket may still request services from a State VR agency; the VR agency continues to

decide whether each beneficiary is eligible for services under the Rehabilitation Act of 1973. 

The Ticket legislation required that SSA establish a corps of work incentives specialists to disseminate

accurate information about work incentives. In addition, the Social Security Protection Act of 2004

mandated that SSA provide a work report receipt to the beneficiary. In response to these mandates, SSA:

 • In fiscal year 2003, established the Area Work Incentives Coordinator (AWIC) position and trained a

total of 58 AWICs, with at least one AWIC being assigned to each Area Office. The AWIC position

was created to improve the quality of employment support services provided to beneficiaries through

training, outreach, and better coordination of support services. As of fiscal year 2009, there are 54

AWICs on duty.

 • In fiscal year 2004, released a web-based design application known as eWork that provides SSA with

a uniform electronic system to process and control title II return to work cases. Since eWork does not

communicate with any title XVI systems, SSA developed a web-based application, the SSI Monthly

Wage Verification (SSIMWV), to process and control SSI work reports. The SSIMWV allows SSA

employees to issue the mandated work report receipt in addition to processing the wage report. The

SSIMWV was released nationally in November 2006. 

 • In fiscal year 2006, SSA awarded cooperative agreements in all States, the District of Columbia, and

Territories under the new Work Incentives Planning and Assistance (WIPA) program, which replaced

and enhanced the former Benefits Planning, Assistance, and Outreach (BPAO) program. The WIPA

program continues to provide accurate information about work incentive programs and other employment support services, as well as planning and assistance services, to beneficiaries with disabilities to

support and facilitate their transition into the workforce.

In fiscal year 2003, AWIC employees provided refresher training on employment supports to the local

Work Incentive Liaisons (WIL) located in each of the 1,335 local field offices. The systems application

phase of this training was updated beginning in fiscal year 2004 with the release of eWork. Training has

been provided to all direct service employees in field offices, teleservice centers and the payment processing centers. This training initiative was completed in November 2004.

AWICs have also been very active in participating in outreach activities in their local areas and continue to

be the primary point of contact for public information outreach in the communities. They have strengthened the relationship with our Ticket to Work partners: the ENs; WIPAs; Protection and Advocacy (P&A)

agencies and Disability Program Navigators. AWICs also work closely with the regional plan to achieve

self-support (PASS) cadres in SSA to make joint educational presentations to the community about our

employment support programs. The partnership has strengthened support of one of the objectives of the

Ticket to Work program which is to educate the public about the benefits of returning to work and becoming self-sufficient. Presentations that have been made directly to persons with disabilities and/or entities

that provide services to this target group include presentations at:

 • Work Incentives Seminar Events (WISE)

 • Disability Employment Fairs

 • Disability Forums and Expos

 • Technical Colleges

 • Universities
2009 SSI Annual Report

104

 • Disability Resource Centers

 • One-Stop Career Centers

 • Small Business Administration Groups

 • Workforce Investment Fairs

 • Independent Living Councils’ Conferences

 • United Way Agencies

 • State Advocacy Groups

In 2008, SSA revised the Ticket to Work regulations to enhance beneficiary choice and improve the 

effectiveness of the program. The revisions extended the program to all adult SSDI and SSI blind or 

disabled beneficiaries, removed disincentives for Employment Networks to participate in the program, 

provided incentives for them to support beneficiaries through a more gradual return to work and positioned 

them to better support ongoing retention of employment. Since the new regulations were published, SSA 

has noted promising trends:

 • New EN contracts have increased 8-fold, up from 5 per month to 40 per month;

 • Numbers of beneficiaries accessing EN services have increased almost 200 percent; and

 • Job starts with the help of an EN have increased significantly.

See section V.G.1.d for information on the evaluation of the Ticket to Work program.

Table V.E4 provides historical data on the number of VR agency reimbursement claims allowed and the

amount of such awards for SSI recipients.

a For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

b 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 1987-2008

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount a

(in thousands) Number

Amount

(in thousands) Number

Amount a

(in thousands)

1987 .............. b b 1,493 $10,010 b b

1988 .............. b b 1,720 14,831 b b

1989 .............. b b 1,871 18,366 b b

1990 .............. 1,267 $3,290 2,819 22,832 4,086 $26,122

1991 .............. 1,445 4,325 2,171 20,615 3,616 24,940

1992 .............. 1,634 5,312 2,834 28,276 4,468 33,588

1993 .............. 1,928 6,670 2,158 22,264 4,086 28,934

1994 .............. 1,880 7,057 2,074 23,400 3,954 30,457

1995 .............. 2,140 7,761 2,229 26,402 4,369 34,162

1996 .............. 2,033 6,518 2,138 24,334 4,171 30,852

1997 .............. 2,735 8,541 2,914 31,532 5,649 40,073

1998 .............. 3,329 10,089 3,446 36,313 6,775 46,402

1999 .............. 3,572 11,403 4,046 42,281 7,618 53,684

2000 .............. 3,260 11,357 3,589 40,793 6,849 52,150

2001 .............. 2,388 9,590 2,763 34,842 5,151 44,432

2002 .............. 3,241 12,201 3,474 43,244 6,715 55,445

2003 .............. 2,139 8,110 1,993 25,238 4,132 33,348

2004 .............. 1,999 7,759 2,150 26,390 4,149 34,149

2005 .............. 1,883 7,420 1,692 21,866 3,575 29,286

2006 .............. 2,581 10,382 2,257 28,597 4,838 38,979

2007 .............. 2,037 8,407 1,871 26,468 3,908 34,875

2008 .............. 2,743 11,229 2,515 35,732 5,258 46,961
105

2009 SSI Annual Report

Table V.E5 provides historical data on the number of Employment Network payments allowed and the

amount of such payments for SSI recipients.

Table V.E5.—Employment Network Payments Allowed, Fiscal Years 2002-08a

a Does not include reimbursements to State VR agencies for tickets assigned under the VR cost reimbursement option.

Fiscal year

Concurrent title II/XVI payments Title XVI only payments Total payments

Number

Amount b

(in thousands)

b For concurrent title II/XVI payments, amounts shown represent title XVI portion of the payments.

Number

Amount

(in thousands) Number

Amount b

(in thousands)

2002 .............. 7 $1 1 c

c Less than $500.

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

8 $1

2003 .............. 138 19 260 $47 398 66

2004 .............. 245 35 674 127 919 162

2005 .............. 692 105 1,292 251 1,984 356

2006 .............. 975 137 1,648 317 2,623 454

2007 .............. 1,259 181 1,713 334 2,972 515

2008 .............. 1,827 274 2,524 520 4,351 794
2009 SSI Annual Report

106

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present statistics on participation by SSI recipients in other programs based on data

from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data

summarized from the SSR are representative of the overall SSI recipient population since the information

is generally based on a 100-percent extract; however, information on previous participation in other programs by SSI recipients is based on a 10-percent extract from the SSR. Data from the SSR are presented

below. Since the amount of an individual’s income is used to determine both the eligibility for, and the

amount of his/her SSI benefit, it is necessary for the SSR to contain information on participation by SSI

recipients in certain other programs which may provide countable income to the SSI recipient. A significant number of SSI recipients are Social Security beneficiaries whose total countable income, including

OASDI benefits, is less than the Federal benefit rate plus the amount of applicable Federally-administered

State supplementary payment. A smaller number of SSI recipients participate in other programs and

receive income such as Workers’ 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.

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

in Selected Programs Based on SSA Administrative Records, December, 2008

a SSI recipients or the households of SSI recipients may participate in more than one of these programs.

Age groups

0-17 18-64 All

65 or

older

Number of Federally-administered recipients, 

December, 2008 (in thousands)................................................................................................................... 1,154 4,333 2,034 7,521

Program (In percent)

Program participation by SSI recipients, December, 2008

Federal SSI.............................................................................................................................................. 99.8 96.5 92.7 96.0

Federally-administered State SSI supplementation ................................................................................ 20.2 27.6 44.9 31.2

OASDI .................................................................................................................................................... 7.2 31.7 56.8 34.7

Black Lung.............................................................................................................................................. b

b Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Note: Total numbers of recipients do not necessarily equal the sums of rounded components.

bb b

Railroad Retirement................................................................................................................................ b b 0.1 b

Veterans Affairs disability cash benefits................................................................................................. 0.1 0.4 1.6 0.7

Workers’ Compensation.......................................................................................................................... b 0.1 b 0.1

Previous program participation by SSI recipients, December, 2008

TANF/AFDC........................................................................................................................................... 32.9 26.8 9.8 23.2

Interim Assistance Reimbursement ........................................................................................................ 0.7 14.5 10.6 11.3
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There are other potential sources for information on SSI recipients when that information is not available

on the SSI administrative files. One source in particular is the Survey of Income and Program Participation

(SIPP), a U.S. Census Bureau sample survey that collects information such as the source and amount of

income, program participation and general demographic characteristics for the U.S. civilian noninstitutionalized population. Data from the SIPP were last presented in the 2005 SSI Annual Report. 
2009 SSI Annual Report

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G. RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of information about “relevant research on the

SSI program by the Social Security Administration (SSA) and others.” Section 1 of this appendix

describes major ongoing projects. Section 2 presents a bibliography of studies regarding SSI payment levels, recipients, and reform proposals that were published in the past 10 years by both public and private

entities.

1. Ongoing Research

a. SSI Policy Simulations

Using Survey of Income and Program Participation (SIPP) data matched to administrative records, SSA

researchers have developed a model of financial eligibility for SSI that has been used to estimate the rate

of participation among the eligible elderly and the effects of various options to modify the SSI program

(see Davies et al. 2001/2002). The model suggests that the rate of participation among the eligible elderly

was about 62 percent in 1991. The comparable participation rate estimate at the end of 1996 was also

62 percent. The model has recently been updated to use the 2004 SIPP matched to administrative records.

The model was also utilized to simulate the potential effects of several approaches to expand the SSI program to fight poverty among the elderly. Approaches focusing on incremental changes in the Federal benefit rate, the general income exclusion, and the resources test appear roughly equally effective in reducing

the poverty gap among the elderly on a cost-equivalent basis, while two approaches focusing on relaxing

the earned income exclusion are less effective (Davies, Rupp, and Strand, 2004). More recently, the model

has been expanded to address SSI participation and financial eligibility among the working-age disabled,

and to assess SSI benefit restructuring options for the entire SSI population. The working-aged model

allows for the identification of working-aged persons by their SSI financial eligibility status, DI insured

status, and participation in both programs. The model recently has been used to assess SSI’s role in complementing and enhancing the safety net for the working-aged population (Rupp, Davies, and Strand,

2008), focusing on the role of SSI in providing cash benefits to some DI beneficiaries during the 5-month

waiting period and beyond, and increasing health insurance coverage among the disabled by providing

access to Medicaid. The model has been used to simulate the effects of several approaches to changing inkind support and maintenance rules and options for altering the calculation of the Federal benefit rate for

certain living arrangement categories (Balkus et al. 2009). Simulation results are applied to current elderly,

working-age, and child SSI populations to provide up-to-date estimates for potential program changes.

The financial eligibility model has also been utilized to study eligibility for Medicare buy-in programs

(see Rupp and Sears 2000; Sears 2001/2002). More recently the model has been extensively utilized to

estimate the size of the population potentially eligible for the Medicare Part D low income subsidy.

b. National Survey of SSI Children and Families

The National Survey of SSI Children and Families (NSCF) was designed to address a number of SSA policy and program objectives. One objective was to address issues specifically pertaining to the effects of the

Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (welfare reform). However, the

survey as designed is useful for the study of a broader range of issues of current interest to policy makers.

Most importantly it allows for the analysis of a nationally representative cross-section of SSI beneficiary

children aged 0-17 and young adults aged 18-23. Among the questions the survey answers are the following: 
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 • What are the characteristics of SSI children? 

 • 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 cost of caring for a child with disabilities?

 • What are the uses of SSI benefits?

 • What is the impact of the nature and severity of the child’s disabilities on parental labor force participation? 

The NSCF data collection began July 2001 and concluded June 2002. The NSCF sample size was considerably larger for SSI children and young adults than the sample size available in other surveys. Altogether,

8,535 interviews were completed for the NSCF, including 5,006 who received SSI benefits in December

2000 and 5,033 who received SSI benefits in December 1996. A public use file and documentation from

the NSCF are available on the SSA website at http://www.socialsecurity.gov/disabilityresearch/nscf.htm.

Davies and Rupp (2005/2006) provides an overview of the survey and describes some key features. Other

analyses underway using these data are discussed in section c below. Although it was a cross-sectional

data collection effort, longitudinal data on SSI program participation are being added to the NSCF through

continuing efforts to update the match between NSCF and SSI administrative records. 

c. Analytic Studies

SSA researchers have conducted a number of research studies designed to provide a better understanding

of the SSI program, the elderly and disabled target populations, program interactions, and the role of the

SSI program in the United States social safety net. Koenig and Rupp (2003/2004) estimated the prevalence

of households and families with multiple SSI recipients and provided an assessment of the poverty status

of multirecipient households. Rupp and Davies (2004) tracked survey respondents from the 1984 SIPP for

14 years using administrative records on SSI and DI participation and death events to assess the relationship between self-reported health status, disabilities, mortality, and participation in the SSI and DI programs. Weathers et al. (2007) uses a unique longitudinal dataset based on administrative data from the

National Technical Institute for the Deaf (NTID) linked to SSA administrative records to conduct a case

study of SSI children who applied for postsecondary education at NTID. An ongoing study uses SSA

administrative records from August 2005 through August 2007 to analyze SSI recipients who lived in

counties and parishes affected by Hurricanes Katrina and Rita.

Several studies focus on the distributional effects of the SSI program through its interactions with other

Federal and State programs. One study is utilizing longitudinal data from the Health and Retirement Study

(HRS) to assess the role of SSI and related social safety net programs in providing a buffer against the

potentially adverse effects of disability shocks in the near-elderly population on financial well-being.

Rupp et al. (2007) provides an empirical analysis of the SSI Federal benefit rate for assessing benefit adequacy among elderly Social Security beneficiaries and the effectiveness of the SSI benefit eligibility

screens for targeting economically vulnerable elderly beneficiaries. Balkus et al. (2009) examines the distributional effects of replacing current policies on living arrangements and in-kind support with a simpler,

cost neutral alternative. Rupp and Strand (2007) highlights the distributional implications of Social Security reform scenarios involving a potential shift from wage indexing to price indexing or longevity indexing in the establishment of initial benefits. Another study uses matched SIPP records to examine potential

eligibility for three major means-tested programs (SSI, Medicaid, and Food Stamp) among near retirees

aged 55 to 64 and eventual SSI participation upon reaching age 65. A related research project analyzes

interactions between SSI, DI, Medicaid and Medicare on a cohort of SSI and DI awardees utilizing

matched administrative data from SSA and the Centers for Medicare & Medicaid Services. Wamhoff and
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Wiseman (2005/2006) examines the financial consequences of TANF-to-SSI transfers and develops new

estimates of both the prevalence of receipt of SSI benefits among families receiving cash assistance from

TANF and the proportion of new SSI awards that go to adults and children residing in families receiving

TANF-related benefits. Trenkamp and Wiseman (2007) addresses the connections between the SSI and

Food Stamp programs.

In 2003 and again in 2005 SSA provided funding for interviewing supplemental samples of SSI and DI

beneficiaries to increase the SIPP sample size available for analyses of these target groups. DeCesaro and

Hemmeter (2008) examines the characteristics of DI and SSI program participants using the 2003 supplemental sample combined with the 2001 SIPP, both matched to administrative records. Using data from the

Current Population Survey matched to SSA administrative records, Nicholas and Wiseman (2009)

assesses the impact of using administrative records on poverty estimation among elderly SSI recipients

using the official and alternative definitions of poverty. Wiseman and Ycas (2008) compares the Canadian

social assistance program for the elderly with the SSI program, looking at program structure, cost and consequences for elderly poverty rates.

A number of studies are utilizing the NSCF to focus on children and young adults receiving SSI. Rupp et

al. (2005/2006) presents highlights from the survey characterizing SSI children with disabilities and their

families. Additional research is currently underway to study employment and caregiving patterns of parents of SSI children, to examine employment and program outcomes among young adults after their eligibility redetermination at age 18, and to analyze factors affecting out-of-pocket medical expenses and

unmet health care needs of disabled children. These papers are scheduled to be published in a special issue

of the Journal of Vocational Rehabilitation devoted to SSI children and young adults and the transition to

adulthood. The special issue also will include a paper that introduces the issue and examines the life-cycle

human capital development and longer-term SSI and earnings outcomes of SSI youth as they transition to

adulthood.

d. Evaluation of the Ticket to Work Program

The Ticket to Work and Work Incentives Improvement Act of 1999 requires the Commissioner of Social

Security to provide for independent evaluations to assess the effectiveness of the Ticket to Work program

and to submit three separate evaluation reports to Congress. In May 2003, SSA awarded two 5-year contracts to Mathematica Policy Research to conduct the evaluation of the Ticket to Work program. The first

contract focuses on data development, qualitative data collection, and implementation of the comprehensive evaluation analyses. The second contract focuses on a survey of beneficiaries, which is designed to

collect information on the health and well-being of beneficiaries and on how beneficiaries use the Ticket

to Work program. 

Rounds one, two, and three of the National Beneficiary Survey (NBS) have concluded with an overall

response rate of 78 percent. SSA has now completed interviews with more than 20,000 beneficiaries with

disabilities. Round 4 of the survey has been delayed because of changes to the Ticket to Work program

that were implemented in 2008.

The first evaluation report was submitted to Congress in 2004 (Thornton et al. 2004)1, and SSA also published the first interim evaluation report early in 2006 (Thornton et al. 2006)1. The third, post-FY 2005,

evaluation report was sent to Congress in October 2007, and the post-FY 2006 report was sent to Congress

in October of 2008. The reports indicate low but growing participation rates and domination of ticket

assignments by State vocational rehabilitation agencies. The findings thus far indicate that the Ticket to

Work program has significant potential but improvements in beneficiary awareness and Employment Net1 Available at http://www.socialsecurity.gov/disabilityresearch/research.htm.
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work (EN) incentives are needed. Survey findings show that many more beneficiaries are interested in

employment and working their way off disability benefits than is reflected in Ticket to Work participation.

Most beneficiaries remain unaware of the Ticket to Work program despite various efforts by SSA to publicize the program. Among those who are aware, a small but significant number who have tried to use their

ticket have been unable to find an EN to accept it.

Many beneficiaries who are participating in the Ticket to Work program are reaching employment success,

and those who leave the disability rolls appear to be remaining off of benefits for sustained periods of

time. The evaluation has also found that employment success may take longer to achieve than was previously anticipated. Among the earliest participants in Ticket to Work, a small but steady stream of new

exits from disability benefits continued to occur more than 4 years after Ticket to Work participation

began. Participation by ENs has been anemic, and the evaluation indicated that the initial payment rules

were insufficient for ENs to cover their costs. SSA initiatives to reduce EN costs have helped but have not

been enough to help ENs reach financial viability. In July 2008 SSA implemented new regulations for the

Ticket to Work program. The evaluation reviewed these new rules and found that they are likely to significantly increase the early payments to ENs, thereby making the program more financially attractive to a

broader range of service providers. This in turn holds promise for expanding EN availability and reinvigorating the program.

The fifth evaluation report is in progress. Unlike past reports, where SSA produced a single large document, we will produce the fifth report as a series of short papers. Each paper will focus on a specific aspect

of the ticket evaluation in the same way that the chapters did for earlier Ticket to Work evaluation reports.

Two of these papers have been completed: “Process Evaluation of the Work Incentives Planning and

Assistance Program” and “Characteristics, Employment, and Sources of Support among Working-Age SSI

and DI Beneficiaries.” Release of all papers of the fifth report is expected in 2009.

SSA is also in the process of modifying the Ticket evaluation contracts to implement the fourth survey

round in 2010 and to extend the analysis to cover beneficiary and service provider response to the new

Ticket to Work regulations. The evaluation contractor will produce two additional reports in 2011 and

2012 under this modification.

e. Homeless Outreach Projects and Evaluation (HOPE)

In fiscal years 2003-2005, SSA’s appropriations included earmarked funds totaling $24 million to conduct

outreach and application assistance to the homeless and other under-served populations in support of the

President’s initiative to end chronic homelessness. In 2004, SSA awarded funds to 41 service providers in

20 States and the District of Columbia that provide services to the homeless. The service providers began

enrolling project participants in September 2004. Of the 41 service providers, 34 provided outreach efforts

through April 2008, and the remaining seven service providers continued through October 2008. As of

January 2009, HOPE grantees assisted 10,398 homeless individuals with their applications for SSI. Of

those, 3,737 were awarded benefits based on disability.

In October 2007, Westat, of Rockville, Maryland released the final evaluation report of the HOPE program. The overall findings of the independent evaluation showed that HOPE programs were more effective than similar programs without HOPE funding in facilitating determinations for benefits and in

obtaining positive housing outcomes. In addition, the evaluation showed that the housing status of HOPE

beneficiaries had improved over time since they first applied for benefits through SSA’s HOPE grantees.

Continued evaluation plans include a longitudinal study to determine whether HOPE enrollment improved

the economic well-being and housing status of participants. This analysis will consist of constructing a

new control group with similar characteristics to the HOPE participants. The purpose is to determine the
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extent to which those in the HOPE treatment group benefited by outreach efforts, compared to the control

group, in terms of their allowance rates, time to determination, housing status, and other variables.

f. Youth Transition Demonstration (YTD)

The YTD establishes partnerships to improve employment outcomes for youth ages 14-25 who receive (or

could receive) SSI or SSDI payments on the basis of their own disability. The YTD projects include service delivery systems and a broad array of services and supports to assist youth with disabilities in their

transition from school to employment and to help them gain economic self-sufficiency.

YTD began in 2003, with seven projects in six States. In 2007, SSA piloted new projects in five States,

choosing a total of three new projects in Florida, Maryland, and West Virginia. These three projects are

joining three (Colorado and two New York) of the original seven projects in a random assignment study.

This study will produce the first evaluation of the empirical evidence of the effects of youth transition programs and modified SSI work incentives.

The modified SSI program rules that we are testing under the YTD include five elements.

 • Despite the finding of a continuing disability review or an age-18 medical redetermination that an

individual is no longer eligible for benefits, SSA will continue paying benefits for as long as the individual continues to be a YTD participant.

 • The student earned income exclusion (section 1612(b)(1) of the Act), which normally applies only to

students who are age 21 or younger, will apply to all participants who meet school attendance requirements.

 • The general earned-income exclusion (section 1612(b)(4) of the Act) permits the exclusion of $65

plus half of what an individual earns in excess of $65. For the YTD, SSA will exclude the first $65

plus three-fourths of any additional earnings.

 • SSA will extend the SSI program’s treatment of Federally supported Individual Development

Accounts (IDA) to IDAs that do not involve Federal funds.

 • Ordinarily, a plan to achieve self-support (PASS) must specify an employment goal that refers to getting a particular kind of job or starting a particular business. For the YTD, SSA will approve an otherwise satisfactory PASS that has either career exploration or postsecondary education as its goal.

Income and assets that an individual uses for PASS expenses do not count when SSA determines SSI

eligibility and payment amount.

The research findings will help to assess the implications of any such impacts for the Social Security trust

funds and Federal income tax revenues. Three of the sites have completed enrollment for the impact evaluation. Implementation of the interventions is underway at all the sites. 

As of March 2009, 451 of the 2,005 YTD participants (over 22 percent) were employed full-time or parttime. Most are students, so the nature of the work varies widely and some of it is short term. While not

directly comparable to YTD participants, the employment rate for all SSI recipients aged 18-21 was only

about 11 percent as of December 2007.

g. Disability Program Navigators (DPNs)

The Department of Labor (DOL) and SSA jointly established the Disability Program Navigator (DPN)

position. DPNs are located in DOL’s One-Stop Career Centers and help disabled individuals navigate the
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challenges of seeking work. The rules surrounding entitlement programs and a fear of losing cash assistance and health benefits often discourage people with disabilities from working. DOL and SSA established the DPN initiative to better inform beneficiaries and other people with disabilities about the work

support programs available at DOL-funded One-Stop Career Centers. This initiative is developing new/

ongoing partnerships to achieve seamless, comprehensive, and integrated access to services, creating systemic change, and expanding the workforce development system’s capacity to serve customers with disabilities and employers. As of October 2008, there were more than 4,425 DPNs in 43 States, the District of

Columbia, and Puerto Rico. DOL awarded the DPN project evaluation to Mathematica Policy Research.

The final DPN project evaluation is expected to be completed in 2010. See http://www.doleta.gov/disability/.

h. TANF/SSI Disability Transition Project (TSDTP)

The Administration for Children and Families (ACF), which administers the Temporary Assistance for

Needy Families (TANF) program, and the Social Security Administration (SSA), which administers the

Supplemental Security Income (SSI) program, are working together and in collaboration with several

States and localities on the TANF/SSI Disability Transition Project. The objectives of the project are to

examine the overlap in the TANF and SSI populations, document current approaches for identifying and

working with individuals with a disability, and to identify approaches to work more effectively and efficiently with individuals who may be eligible for SSI. Initially SSA will measure the prevalence and outcomes of TANF applicants and recipients who have applied for SSI through data sharing agreements being

developed with five States. ACF is developing and piloting promising approaches to screening and

encouraging work activities.

2. Bibliography of Recent Publications

Alterman, A. I., Q. Shen, J. C. Merrill, A. T. McLellan, J. Durell, and J. R. McKay. “Treatment Services

Received by Supplemental Security Income Drug and Alcohol Clients.” Journal of Substance Abuse

Treatment 18, 3 (2000): 209-215.

American Academy of Pediatrics. Committee on Children with Disabilities. “The Continued Importance

of Supplemental Security Income (SSI) for Children and Adolescents with Disabilities.” Pediatrics 107, 4,

Part 1 of 2 (April 2001): 790-793.

Angel, Ronald J. “Living Arrangements and Supplemental Security Income Use Among Elderly Asians

and Hispanics in the United States: The Role of Nativity and Citizenship.” Journal of Ethnic and Migration Studies 28, 3 (2002): 553-563.

Aron, Laudan Y. and Pamela Loprest. Meeting the Needs of Children with Disabilities. Washington, DC:

The Urban Institute Press, 2007.

Autor, David H. and Mark G. Duggan. The Rise in Disability Recipiency and the Decline in Unemployment. JCPR Working Paper No. 226, Joint Center for Poverty Research, June 2001.

Balkus, Richard and Susan Wilschke. “Annual Wage Trends for Supplemental Security Income Recipients.” Social Security Bulletin 65, 2 (2003/2004): 49-58.

________. Treatment of Married Couples in the SSI Program. Issue Paper No. 2003-01. Washington, DC:

Office of Disability and Income Assistance Policy, Office of Policy, Social Security Administration,

December 2003.
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Balkus, Richard, James Sears, Susan Wilschke, and Bernard Wixon. “Simplifying the Supplemental Security Income Program: Options for Eliminating the Counting of In-Kind Support and Maintenance.” Social

Security Bulletin 68, 4 (2009): 1-25.

Balkus, Richard, L. Scott Muller, Mark Nadel, and Michael Wiseman. “The Challenge of Growth: Public

Disability Benefits in the United States.” In Sick Societies? Trends in Disability Benefits in Post-Industrial

Welfare States, edited by Peter A. Kemp, Annika Sunden, and Bernhard Bakker Tauritz. Geneva, Switzerland: International Social Security Association, 2006.

Barrilleaux, Charles and Ethan Bernick. “Deservingness, Discretion, and the State Politics of Welfare

Spending, 1990-96.” State Politics & Policy Quarterly 3, 1 (Spring 2003): 1-23.

Battaglia, Carol. “SSI and Medicaid Recipients Have a Responsibility to Report Changes that Can Affect

Benefits.” Exceptional Parent 37, 2 (February 2007): 47-48.

Beedon, Laurel and Charles Ford. “Supplemental Security Income (SSI): Yesterday, Today and Tomorrow.” Data Digest AARP Public Policy Institute 43 (February 2000): 1-4.

Beekman, John A. and Eli N. Donkar. “The Relationship Between the Supplemental Security Income and

the Old-Age, Survivors, and Disability Insurance Programs During the 1990s.” North American Actuarial

Journal 5, 4 (2001): 1-23.

Beers, Nathaniel S., Alexa Kemeny, Lon Sherritt, and Judith S. Palfrey. “Variations in State-Level Definitions: Children with Special Health Care Needs.” Public Health Reports 118, 5 (September/October

2003): 434-447.

Benitez-Silva, Hugo, Moshe Buchinsky, and John Rust. How Large are the Classification Errors in the

Social Security Disability Award Process? National Bureau of Economic Research Working Paper No.

10219, January 2004.

Berry, Hugh G. “The Supplemental Security Income Program and Employment for Young Adults with

Disabilities: An Analysis of the National Health Interview Survey on Disability.” Focus on Autism &

Other Developmental Disabilities 15, 3 (Fall 2000): 176-182.

Bond, Gary R, Haiyi Xie, and Robert E. Drake. “Can SSDI and SSI Beneficiaries with Mental Illness Benefit from Evidence-Based Supported Employment?” Psychiatric Services 58, 11 (November 2007): 1412-

1420.

Bound, John and Richard V. Burkhauser. Tracking the Household Income of SSDI and SSI Applicants.

Michigan Retirement Research Center Working Paper No. 99-03, Michigan Retirement Research Center at

the University of Michigan, May 2001.

Bound, John, Julie Berry Cullen, Austin Nichols, and Lucie Schmidt. “The Welfare Implications of

Increasing Disability Insurance Benefit Generosity” Journal of Public Economics 88, 12 (December

2004): 2487-2514.

Bound, John, Michael Schoenbaum, and Timothy A. Waidman. Health Limitations and Early Retirement.

Michigan Retirement Research Center Working Paper No. 99-Q2, Michigan Retirement Research Center

at the University of Michigan, September 2000.
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Brown, Michael Hayden. Geographic and Group Variation in Supplemental Security Income. Ph.D. dissertation, University of Kentucky, 2002.

Burkhauser, Richard V. and Mary C. Daly. “U.S. Disability Policy in a Changing Environment.” Journal

of Economic Perspectives 16, 1 (2002): 213-224.

Burkhauser, Richard V., Mary C. Daly, and Philip R. de Jong. The Role of Disability Transfer Programs on

the Economic Well Being of Working-Age People with Disabilities. Michigan Retirement Research Center

Working Paper No. UM08-Q2, Michigan Retirement Research Center at the University of Michigan,

October 2008.

________. Curing the Dutch Disease: Lessons for United States Disability Policy. Michigan Retirement

Research Center Working Paper No. 2008-188, Michigan Retirement Research Center at the University of

Michigan, September 2008.

Burkhauser, Richard V., Mary C. Daly, Jeff Larrimore, and Joyce Kwok. The Transformation of Who is

Expected to Work in the United States and How it Changed the Lives of Single Mothers and People with

Disabilities. Michigan Retirement Research Center Working Paper No. 2008-187, Michigan Retirement

Research Center at the University of Michigan, September 2008.

Butrica, Barbara A. and Gordon B.T. Mermin. Annuitized Wealth and Consumption at Older Ages. Center

for Retirement Research Working Paper No. 2006-26, Center for Retirement Research at Boston College,

December 2006. 

Campbell, Kevin, Jim Baumohl, and Sharon R. Hunt. “The Bottom Line: Employment and Barriers to

Work among Former SSI DA&A Beneficiaries.” Contemporary Drug Problems 30, 1-2 (Spring/Summer

2003): 195-240.

Chatterji, Pinka and Ellen Meara. Health and Labor Market Consequences of Eliminating Federal Disability Benefits for Substance Abusers. National Bureau of Economic Research Working Paper No. 13407,

September 2007.

Clarke, George R.G. “The Effect of Medicaid on Cash Assistance to the Aged and Disabled Poor.” Public

Finance Review 31, 1 (January 2003): 3- 43.

Daly, Mary C. and Richard V. Burkhauser. The Supplemental Security Income Program. Federal Reserve

Bank of San Francisco Working Paper No. 2001-06, September 2000.

Davies, Paul S. “SSI Eligibility and Participation Among the Oldest Old: Evidence from the AHEAD.”

Social Security Bulletin 64, 3 (2001/2002): 38-63.

Davies, Paul S. and Kalman Rupp. “An Overview of the National Survey of SSI Children and Families

and Related Products.” Social Security Bulletin 66, 2 (2005/2006): 7-20.

Davies, Paul S. and Melissa M. Favreault. Interactions between Social Security Reform and the Supplemental Security Income for the Aged. Center for Retirement Research Working Paper No. 2004-02, Center

for Retirement Research at Boston College, February 2004.

Davies, Paul S. and Michael J. Greenwood. Welfare Reform and Immigrant Participation in the Supplemental Security Income Program. Michigan Retirement Research Center Working Paper No. 2004-087,

Michigan Retirement Research Center at the University of Michigan, September 2004.
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Davies, Paul S., Howard Iams, and Kalman Rupp. “The Effect of Welfare Reform on SSA’s Disability

Programs: Design of Policy Evaluation and Early Evidence.” Social Security Bulletin 63, 1 (2000): 3-11.

Davies, Paul S., Kalman Rupp, and Alexander Strand. “The Potential of the SSI Program to Fight Poverty

among the Poorest Elderly.” Journal of Aging and Social Policy 16, 1 (2004): 21-42.

Davies, Paul S., Minh Huynh, Chad Newcomb, Paul O’Leary, Kalman Rupp, and Jim Sears. “Modeling

SSI Financial Eligibility and Simulating the Effect of Policy Options.” Social Security Bulletin 64, 2

(2001/2002): 16-45.

DeCesaro, Anne and Jeffrey Hemmeter. Characteristics of Noninstitutionalized DI and SSI Program Participants. Research and Statistics Note No. 2008-02. Washington, DC: Office of Research, Evaluation, and

Statistics, Office of Retirement and Disability Policy, Social Security Administration, January 2008. 

Dietz, Tracy L. “Mexican American Elderly and Supplemental Security Income: Reasons and Characteristics Associated with Nonuse.” Journal of Applied Gerontology 20, 3 (September 2001): 292-306.

Dobkin, Carlos and Steven L. Puller. “The Effects of Government Transfers on Monthly Cycles in Drug

Abuse, Hospitalization and Mortality.” Journal of Public Economics 91, 11-12 (December 2007): 2137-

2157.

DosReis, Susan, Julie Magno Zito, Daniel J. Safer, and Karen L. Soeken. “Mental Health Services for

Youths in Foster Care and Disabled Youths.” American Journal of Public Health 91, 7 (July 2001): 

1094-1099.

Duggan, Mark G. and Melissa Schettini Kearney. “The Impact of Child SSI Enrollment on Household

Outcomes.” Journal of Policy Analysis and Management 26, 4 (Autumn 2007): 861-886.

________. The Impact of Child SSI Enrollment on Household Outcomes: Evidence from the Survey of

Income and Program Participation. National Bureau of Economic Research Working Paper No. 11568,

August 2005.

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Weathers, Robert R. II., Gerard Walter, Sara Schley, John Hennessey, Jeffrey Hemmeter, and Richard V.

Burkhauser. “How Postsecondary Education Improves Adult Outcomes for Supplemental Security Income

Children with Severe Hearing Impairments.” Social Security Bulletin 67, 2 (2007): 101-131.

Weaver, Robert D. and Ruthanne L. Hackman. “A New Era for Legal Immigrants?: Rethinking Title IV of

the Personal Responsibility and Work Opportunity Reconciliation Act.” Journal of Policy Practice 8, 1

(2009): 54-68.

Weiner, Barbara. “Protecting SSI Benefits for Elderly and Disabled Refugees.” Human Rights: Journal of

the Section of Individual Rights & Responsibilities 31, 2 (Spring 2004): 11-12.

Wentworth, Seyda G. and David Pattison. “Income Growth and Future Poverty Rates of the Aged.” Social

Security Bulletin 64, 3 (2001-2002): 23-37.

Wheeler, Peter M., John R. Kearney, and Carolyn A. Harrison. “The U.S. Study of Work Incapacity and

Reintegration.” Social Security Bulletin 64, 1 (2001/2002): 32-44.
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Wilschke, Susan. How many SSI Recipients Live with other Recipients? Policy Brief No. 2004-03. Washington, DC: Office of Disability and Income Assistance Policy, Office of Policy, Social Security Administration, June 2004.

________. “Improving Child Support Enforcement for Children Receiving SSI.” Social Security Bulletin

64, 1 (2001/2002): 16-26.

Wilschke, Susan and Richard Balkus. Child Support Payments and the SSI Program. Policy Brief No.

2004-02. Washington, DC: Office of Disability and Income Assistance Policy, Office of Policy, Social

Security Administration, February 2004.

Wiseman, Michael and Martynas Ycas. “The Canadian Safety Net for the Elderly.” Social Security Bulletin 68, 2 (2008): 53-67.

Wittenburg, David. A Health-Conscious Safety Net? Health Problems and Program Use among LowIncome Adults with Disabilities. New Federalism: National Survey of America’s Families No. B-62.

Washington, DC: Urban Institute, September 2004. Available at www.urban.org/url.cfm?ID=311065. 

Wittenburg, David and Melissa Favreault. Safety Net or Tangled Web? An Overview of Programs and Services for Adults with Disabilities. Assessing the New Federalism, Occasional Paper Number 68. Washington, DC: Urban Institute. November 2003.

Wittenburg, David and Pamela J. Loprest. “Early Transition Experiences of Transition-Age Child SSI

Recipients: New Evidence from the National Survey of Children and Families.” Journal of Disability Policy Studies 18, 3 (2007): 176-187. 

________. “Policy Options for Assisting Child SSI Recipients in Transition.” Prepared for the Ticket to

Work and Work Incentives Advisory Panel. Washington, DC: Urban Institute. October 2003. Available at

www.urban.org/url.cfm?ID=410872.

Wittenberg, David and Sandi Nelson. A Guide to Disability Statistics from the Survey of Income and Program Participation. Washington, DC: Urban Institute. February 2006.

Wittenburg, David, David Stapleton, Adam Tucker, and Rick Harwood. “An Assessment of the Representativeness of the SSI DA&A Study Panels.” Contemporary Drug Problems 30, 1-2 (Spring/Summer

2003): 123-136.
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H. GLOSSARY

Administrative Expenses (or Costs). Expenses incurred by the Social Security Administration (SSA) in

administering the Supplemental Security Income (SSI) program. Such administrative expenses are initially

paid from the OASI and DI Trust Funds as provided for in section 201(g)(1) of the Social Security Act.

The trust funds are subsequently reimbursed for such expenditures, including any interest lost, from the

General Fund of the Treasury.

Affidavit of Support. A contract under which a United States citizen or legal resident agrees to provide

support to maintain (i.e., to sponsor) an immigrant as a condition of the immigrant’s admission into the

United States.

Aged. Individuals aged 65 or older.

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

Disabled (APTD). The former Federal-State programs of adult cash assistance under titles I, X, and XVI

respectively, that were replaced in the 50 States and the District of Columbia by the SSI program in 1974.

These programs still operate in Guam, the Virgin Islands, and Puerto Rico and are administered at the Federal level by the Secretary of Health and Human Services.

Alien Lawfully Admitted for Permanent Residence. A noncitizen lawfully accorded the privilege of

residing permanently in the United States. Such individuals may be issued immigrant visas overseas by the

Department of State, or adjusted to permanent resident status while living in the United States by the U.S.

Citizenship and Immigration Services (USCIS).

Appeal Rights Process. The administrative review process followed by SSA in determining an individual’s rights under the Social Security Act. The administrative review process consists of several steps,

which must be requested after the unfavorable initial determination within certain time periods. 

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, and divorce. Economic assumptions include unemployment rates, average earnings, inflation, interest rates, and productivity. Program-specific assumptions include rates of application

for and new receipt of various SSI benefits and rates of termination of SSI benefits. The assumptions

underlying the projections presented in this report are consistent with the intermediate assumptions of the

2009 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. 

Automatic Cost-of-Living Increase. The annual increase in SSI Federal benefit rates, effective for January of the current year, reflecting the change in the cost of living. The increase equals the percentage

increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers measured from the

average over July, August, and September of the second preceding year to the average for the same
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3 months in the preceding year. If the increase is less than one-tenth of 1 percent, when rounded, there is

no automatic increase for the current year; the increase for the next year would reflect the increase in the

cost of living over a 2-year period.

Award. An administrative determination that an individual is eligible for an SSI benefit.

Blind. For purposes of the SSI program, an individual is considered to be blind if he/she has 20/200 or

less vision in the better eye with the use of a correcting lens, has tunnel vision of 20 degrees or less, or met

the October 1972 State definition of blindness and received benefits under the State’s former program of

Aid to the Blind in December 1973.

Blind Work Expenses (BWE). Any expenses incurred by a blind individual that are reasonably attributable to earning income. The BWE provision permits the exclusion of these expenses from the earned

income of a blind individual. (See “Impairment-Related Work Expenses (IRWE)” for the related exclusions

for disabled individuals.)

Burial Funds. A comprehensive term that for SSI purposes includes revocable burial contracts, trusts and

other burial arrangements (including amounts paid on installment sales contracts for burial spaces), cash,

accounts, or other financial instruments with a definite cash value clearly designated for the individual’s

burial expenses.

Child. A blind or disabled individual who is neither married nor the head of household and who is (1)

under age 18 or (2) under the age of 22 and a student regularly attending a school, college or university, or

a course of vocational or technical training designed to prepare him/her for gainful employment. A child

18 or older is subject to the adult definition of disability and is not subject to parental deeming. 

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). An official measure of inflation in consumer prices. In this report, all references to the CPI relate to the Consumer Price Index for Urban Wage Earners and Clerical Workers

(CPI-W). Historical values for the CPI-W are published by the Bureau of Labor Statistics, Department of

Labor.

Continuing Disability Review (CDR). An evaluation of an individual’s impairment(s) to determine

whether the person is still disabled within the meaning of the law for purposes of eligibility for SSI and

OASDI benefits.

Cost-of-Living Adjustment (COLA). See “Automatic Cost-of-Living Increase.”

Countable Income. An individual’s income less all-applicable exclusions. This amount is used to determine SSI eligibility and benefit amount.

Countable Resources. The amount of resources after all exclusions. This amount is used in determining

an individual’s or couple’s SSI eligibility. A resource may be cash or other liquid assets or any real or personal property that an individual (or his/her spouse) owns and could convert to cash to be used for support

and maintenance. SSI law stipulates what items are to be excluded from resources. 

Current Dollars. Amounts expressed in nominal dollars with no adjustment for inflationary changes in

the value of the dollar over time.
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Current-Payment Status. Status of an SSI recipient to whom a benefit is being paid for a given month.

SSI benefits for a month are usually payable on the first day of that month.

Dedicated Account. An account in a financial institution established for a disabled or blind child to contain retroactive SSI payments that exceed six times the Federal benefit rate (FBR) plus State supplementation (certain smaller retroactive payments may be placed in the account once it is established).

Representative payees may only use dedicated account funds for the following allowable expenses: 

 • Education or job skills training;

 • 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 five items, is related to the child’s

impairment. Money from a dedicated account which is knowingly misapplied must be repaid. These

accounts are excluded from resources and the interest earned is excluded from income.

Deeming. The process by which the income and resources of an ineligible individual are considered to be

available to a recipient when determining eligibility or payment amount. Deeming applies only between:

 • The living-with ineligible spouse and the eligible spouse;

 • The living-with ineligible parent(s) and eligible child(ren) under age 18; and

 • The immigration sponsors of some noncitizens and the noncitizen(s).

Demographic Assumptions. See “Assumptions.”

Disability. For individuals aged 18 or older, the inability to engage in any substantial gainful activity

(SGA) by reason of any medically determinable physical or mental impairment that can be expected to

result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.

An individual under age 18 must have a medically determinable physical or mental impairment, which

results in marked and severe functional limitations and that can be expected to result in death or that has

lasted or can be expected to last for a continuous period of at least 12 months. 

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.
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Earned Income Exclusion. The first $65 of a recipient’s monthly earnings and one-half of the earnings

in excess of $65 are excluded in computing the SSI benefit payable.

Earned Income Tax Credit (EITC). A special tax credit that reduces the Federal tax liability of certain

low-income working taxpayers. This tax credit may or may not result in a payment to the taxpayer.

Economic Assumptions. See “Assumptions.”

Effective Date of Application. An application for SSI benefits is effective on the first day of the month

following the date on which the application is filed, or on which the individual first becomes eligible,

whichever is later. 

Eligible Couple. Two persons married and living together in the same household or living together as

married, both being aged, blind, or disabled and eligible for SSI.

Eligible Individual. An aged, blind or disabled person who meets all the requirements for eligibility

under the SSI program, including filing an application.

Emergency Advance Payments (EAP). Special SSI payments that are available only at the time of initial application for eligible individuals who face financial emergencies and need assistance before their

first benefits would otherwise be received. The amount of the EAP an individual receives is recovered

from subsequent benefit payments.

Essential Person. An individual whose presence in the home of an SSI recipient who was transferred

from a State assistance program to SSI in January 1974 results in an increase in the FBR of the SSI recipient. The essential person must have been (1) living in the household of the SSI recipient in December

1973 and continuously thereafter; (2) never eligible for SSI; (3) not eligible for State assistance in December 1973; and (4) taken into account when the SSI recipient’s need for State assistance was determined in

December 1973.

Federal Benefit Rate (FBR). The basic standard used in computing the amount of Federal SSI benefits

for individuals and couples. The FBRs are increased annually to reflect increases in the cost of living. (See

table IV.A2.)

Fiscal Year (FY). The accounting year of the United States Government. Since 1976, a fiscal year is the

12-month period ending September 30. For example, fiscal year 2009 began October 1, 2008 and will end

September 30, 2009.

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. As of October 1, 2008, Supplemental Nutrition Assistance Program (SNAP) is the new name for the Federal Food Stamp Program.

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 dollar value of all 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
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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 onethird of the FBR. 

Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWEs are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income. “Infrequent” means that it is not received

more than once in a calendar quarter from a single source and is not also received in the month immediately preceding or the month immediately following the month of receipt, regardless of whether or not

these payments occur in different calendar quarters.1 “Irregular” means that an individual could not reasonably expect to receive the income. In any given quarter up to $30 of earned and $60 of unearned infrequent or irregular income is excluded.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food or shelter or something an individual can use to

obtain food or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food or shelter.

Interim Assistance Reimbursement (IAR). The process used for reimbursing for basic assistance provided by a State to an individual either while the individual’s application for SSI was pending or during

the period in which an individual’s SSI benefits were suspended. SSA may reimburse a State that has provided this assistance. The individual’s retroactive SSI payment is sent to the State as reimbursement if: (1)

1 The definition of infrequent income was modified in final rules published on August 9, 2006 (71 FR 45375). Previously, infrequent income was defined

as income not received more than once a quarter from a single source.
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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.

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 Treatment Facility. An institution or that part of an institution that is licensed or otherwise

approved by a Federal, State, or local government to provide inpatient medical care and services.

New Recipient. An SSI recipient in the first month of SSI payment receipt.

Noncitizen. An individual who is not a United States citizen. Also referred to in welfare and immigration

law as an alien. (See “Alien Lawfully Admitted for Permanent Residence,” “Asylee,” “Parolee” and “Refugee.”)

Nonqualified Alien. A noncitizen who is not in a qualified alien category for SSI eligibility purposes. 

OASDI. The Old-Age, Survivors, and Disability Insurance programs established under title II of the

Social Security Act.

One-Third Reduction. The reduction of an individual’s SSI payment that occurs when an individual is

living in the household of another. Instead of determining the actual dollar value of in-kind support and

maintenance, one-third of the Federal benefit rate is counted as additional income to an individual living in

another person’s household for a full calendar month and receiving both food and shelter from the household.

Optional State Supplementation. See “State Supplementation.”

Overpayment. The payment of more than the amount due for any period, including any amounts of

Federally-administered State supplementary payments.

Parent. For SSI purposes, the natural mother or father of the child, or the person who legally adopted the

child, or the stepparent who lives in the same household as the child.

Parolee. A noncitizen who appears to be inadmissible to the inspecting USCIS officer but is allowed to

enter the United States under emergency humanitarian conditions or when the noncitizen’s entry is determined to be in the public interest. Parole does not constitute a formal admission to the United States and
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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.

 • Payment Levels Method—States may not lower their supplementary payment for any of the living

arrangement categories below their adjusted March 1983 levels. The adjusted level is the State’s

March 1983 payment level minus that portion of the July 1983 increase in the Federal benefit rate that

was not attributable to the increase in the cost of living (i.e., $10.30 per individual and $15.40 per

couple).

Personal Needs Allowance. The amount allowed for an institutionalized recipient’s personal needs (currently $30). If an SSI recipient is in a Medicaid facility, the law requires that the SSI benefit be used only

for the recipient’s personal needs (i.e., that the institution cannot retain the benefit in repayment of the cost

of the individual’s care).

Plan to Achieve Self-Support (PASS). A plan that permits a disabled or blind SSI recipient to set aside

income (earned and/or unearned) and/or resources for a work goal. The income and resources set aside

under a PASS are used to pay for goods or services needed to reach that goal, such as education, vocational training, starting a business, or purchasing work-related equipment. Income and resources set aside

under a PASS are excluded from SSI income and resources. SSA must approve an individual’s PASS.

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 to Self-Support (PESS). The real and personal property used in a trade or business,

nonbusiness income-producing property and property used to produce goods or services essential to the

individual’s daily activities. PESS may be excluded from resources under certain conditions.

Proration of Benefits. The method of computing benefit amounts in months in which the individual reacquires eligibility after a month or more of ineligibility. In such months, an individual’s SSI benefit will be

paid according to the number of days in the month that he/she is eligible, beginning with the first day in

the month on which all eligibility requirements are met. In order to determine the benefit payable in a prorated month SSA counts the number of days an individual is eligible in the month. The amount of the individual’s regular monthly payment is multiplied by the number of days for which he/she is eligible for

benefits. That figure is divided by the number of days in the month for which the benefit is being determined. The resulting amount is the amount due for the prorated month. Effective with claims filed August

22, 1996, proration for months of initial eligibility was eliminated.

Public Educational Institution. An institution that is operated by or controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county for the primary purpose of providing educational or vocational training. 
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Public Emergency Shelter for the Homeless. A shelter for individuals whose homelessness poses a

threat to their life or health.

Public Institution. An institution that is operated by or controlled by the Federal Government, a State, or

a political subdivision of a State such as a city or county. 

Publicly Operated Community Residence. A facility that provides food and shelter and some other service such as social services, help with personal living activities, training in socialization and life skills, or

occasional or incidental medical or remedial care. In order to be publicly operated it must be operated or

controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county.

The facility must serve no more than 16 residents and must be located in a community setting.

Qualified Alien. An individual who is:

 • Lawfully admitted for permanent residence under the Immigration and Nationality Act (INA);

 • A refugee under section 207 of the INA;

 • An asylee under section 208 of the INA;

 • A person whose deportation is withheld under section 243(h) of the INA as in effect prior to April 1,

1997, or whose removal has been withheld under section 241(b)(3) of the INA;

 • A parolee under section 212(d)(5) of the INA for at least 1 year;

 • A person granted conditional entry under section 203(a)(7) of the INA as in effect prior to

April 1, 1980;

 • A Cuban or Haitian entrant as defined by Federal statute, including Section 501(e) of the Refugee

Education Assistance Act of 1980;

 — Former parolees and other aliens who became permanent residents under the Cuban Adjustment

Act of 1966;

 — Aliens who became permanent residents under the provisions of the Immigration Reform and

Control Act (IRCA) of 1986;

 — Aliens who became permanent residents under the Nicaraguan and Central American Relief Act;

or

 — Aliens who became permanent residents under the Haitian Refugee Immigration Fairness Act.

 • A certain alien, or an alien parent of a child, or an alien child of a parent who:

 — Has been battered or subjected to extreme cruelty in the United States by a spouse, parent, or certain other family members the alien, parent and/or child lived with;

 — Is not living in the same household with the abusive individual;

 — Has been determined to need SSI because of this abuse; and

 — Has a determination from the USCIS for a certain change in status.

Qualifying Quarter of Earnings. Credit for a requisite amount of earnings assigned to a calendar quarter

for the purpose of determining the SSI eligibility of a lawfully admitted permanent resident.
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Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2009, a worker receives one quarter of coverage (up to four a year) for each $1,090 of annual

earnings reported from employment or self-employment. The amount of earnings required for a quarter of

coverage is subject to annual automatic increases in proportion to increases in average wages.

Recipient. A person who is receiving 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 particular social group or political opinion. Unlike asylees, refugees apply for and receive this status prior to

entry into the United States.

Relocation Assistance. A type of assistance provided to persons displaced by projects that acquire real

property. Examples of types of reimbursement, allowances, and help provided are:

 • Moving expenses;

 • Reimbursement for losses of tangible property;

 • Displacement allowances;

 • Amounts required to replace a dwelling which exceed the agency’s acquisition cost for the prior

dwelling;

 • Rental expenses for displaced tenants;

 • Amounts for down payments on replacement housing for tenants who decide to buy;

 • Mortgage insurance through Federal programs with waiver of requirements that borrowers must usually meet; and

 • Replacement housing.

Representative Payee. A person who receives SSI payments on behalf of an SSI recipient. SSA will pay

benefits to a representative payee on behalf of an individual 18 years old or older when it appears that such

method of payment will be in the interest of the individual. A representative payee will be appointed if the

individual is legally incompetent or mentally or physically incapable of managing or directing the management of his/her benefits. Also, in general, if the individual is under the age of 18, a representative

payee will be appointed. The law and regulations require that every beneficiary under age 15 must have a

representative payee.

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.
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Resident of the United States. A person who has established an actual dwelling place within the geographical limits of the United States with the intent to continue to live in the United States. (See “United

States.”)

Resource. The cash or other liquid assets or any real or personal property of an individual (or his/her

spouse, if any) that he/she could use or could convert to cash to be used for his/her support and maintenance.

Retroactive Payments. The SSI payments made in a month later than the month or months in which they

were due. Also referred to as “past-due” benefits.

Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the

current month’s countable income), no payment is due and none is paid. If the individual is eligible based

on the current month’s factors, payment is computed. The benefit for a month is generally based on the

countable income from the second month before the current month. The basic formula is to subtract the

countable income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.

Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Social Security Area Population. 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.

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, 2009, pays a $10.45 administrative fee for each benefit

paid.

 • Mandatory Supplementation—The supplementary payments that are made only to beneficiaries who

were converted to the SSI program from former State assistance programs at the inception of the SSI

program. Mandatory minimum State supplementary payments are required to maintain the December

1972 payment levels that these beneficiaries received under the former State assistance programs.

States are required to provide the supplementation to maintain their Federal matching funds for Medicaid.

 • Optional Supplementation—The payments made by States to help persons meet needs not fully covered by Federal SSI benefits. The State determines whether it will make a payment, to whom, and in

what amount. These supplements, paid on a regular basis, are intended to cover such items as food,

shelter, clothing, utilities, and other daily necessities. Some States provide optional supplementary
2009 SSI Annual Report

138

payments to all persons eligible for SSI benefits, while others may limit them to certain SSI recipients

such as the blind or residents of domiciliary-care facilities, or they may extend payments to persons

ineligible for SSI because of SSI income.

Statutory Blindness. See “Blind.”

Student. An individual who is regularly attending a school, college or university, or a course of vocational or technical training designed to prepare him/her for gainful employment.

Student Earned Income Exclusion (SEIE). An earned income exclusion for a student under age 22 with

certain limitations established by regulations. For 2009, up to $1,640 earned income in a month, but no

more than $6,600 per year, may be excluded.

Substantial Gainful Activity (SGA). The level of work activity used to establish disability. A finding of

disability requires that a person be unable to engage in SGA. For 2009, a person who is not statutorily

blind and is earning more than $980 a month (net of impairment-related work expenses) is ordinarily considered to be engaging in substantial gainful activity.

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months (24

months for individuals who were made ineligible because of their spouses or parent being called to active

military duty) results in a termination of the SSI record. (Once a record is terminated, reapplication is necessary.)

TANF. See “Temporary Assistance for Needy Families (TANF).”

Temporary Absence. An individual’s physical move from his/her permanent place of residence that does

not constitute a change in living arrangement. In general, a temporary absence is an absence from a permanent residence which is not intended to, and does not, exceed a full calendar month. 

Temporary Assistance for Needy Families (TANF). The State grant program of assistance for needy

families established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

(Public Law 104-193). TANF replaced the Aid to Families with Dependent Children program.

Termination. For an individual, cessation of benefits, which can occur for a number of reasons, including

death, medical improvement, or a period of suspension lasting longer than 12 months. 

Terminations. As used in section IV, the net reduction (after accounting for new entrants) in the number

of SSI recipients in current-payment status during a period. 

Ticket to Work Program. The Ticket to Work and Work Incentives Improvement Act of 1999 established a voluntary Ticket to Work and Self-Sufficiency program (Ticket to Work program) under which a

blind or disabled beneficiary may obtain vocational rehabilitation (VR), employment and other support

services from a qualified private or public provider referred to as an “employment network,” or from a

State VR agency. 

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:
139

2009 SSI Annual Report

 • Annuities, pensions, and other periodic payments;

 • Retirement and disability benefits;

 • Veterans’, workers’ and unemployment compensation;

 • Alimony and support payments;

 • Dividends, interest and certain royalties; and

 • Rents. 

United States. For purposes of the SSI program, the United States consists of the 50 States, District of

Columbia and the Northern Mariana Islands.

Vocational Rehabilitation (VR). The process of restoring individuals with disabilities to full capabilities.

VR services are designed to provide an individual with the training or other services that are needed to

return to work, begin working or to enter a new line of work.

Windfall Offset. A provision to prevent a person from receiving monthly SSI and OASDI benefits in

excess of the total amount which would have been paid if the OASDI benefits had been paid when they

were due rather than retroactively. 

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;

 • Section 1619 benefits; and

 • Ticket to Work program.
SOCIAL SECURITY ADVISORY BOARD 

STATEMENT ON THE SUPPLEMENTAL 

SECURITY INCOME PROGRAM 

Public Law 104-193 requires that members of the Social Security Advisory Board be 

given an opportunity, either individually or jointly, to include their views in the Social 

Security Administration’s annual report to the President and the Congress on the 

Supplemental Security Income (SSI) program. 

We appreciate the opportunity to present our views on this important program, and we 

have asked the Social Security Administration (SSA) to include the following statement 

of our views in this year’s annual report. 

A Look Back at the Last 10 Years of SSI Program Integrity

In 1997, the General Accounting Office included the SSI program in its list of high-risk 

programs because of an increase in overpayments and because of internal control 

weaknesses that left the program susceptible to fraud, waste, and abuse.1

In response, SSA issued its first SSI Management Report at the beginning of FY 1999.2 

That report stated that in reviewing the program to identify its challenges and 

vulnerabilities, SSA found a need for aggressive action in the areas of: improving overall 

payment accuracy, increasing continuing disability reviews, combating program fraud, 

and improving debt collection. The report further stated that SSA had begun taking 

action in those areas and had submitted proposals to Congress to provide additional 

authority for the agency to improve its stewardship of the SSI program. 

In 2003, GAO removed the SSI program from its high-risk list, noting the considerable 

progress that SSA had made in addressing weaknesses in program integrity. It cautioned, 

however, that sustained management attention was needed to ensure that reforms were 

completely implemented, and noted that strengthening the integrity of the SSI program 

remained a major management challenge.3

In this Statement we will examine SSA’s accomplishments in payment accuracy, 

continuing disability reviews, combating program fraud, and improving debt collection 

over the last 10 years; look at where the program is today; and make some 

recommendations for continued improvement. 

 

1 GAO High Risk Series: An Overview, February 1997. GAO/HR-97-1. 

2 Management of the Supplemental Security Income Program: Today and in the Future, October 8, 1998. 

3

 GAO Performance and Accountability Series, Major Management Challenges and Program Risks: Social 

Security Administration, January 2003. GAO-03-117. 
2

Obstacles to Payment Accuracy 

Administrative challenges to payment accuracy are inherent in the design of the meanstested SSI program. Beneficiaries’ continuing eligibility and payment amount depend on 

circumstances that may change from month to month. Each month, SSA has to take into 

account beneficiaries’ income, resources, and living arrangements to determine if they 

are still eligible and what their payment amount should be. SSA depends to a large 

extent on beneficiary self-reporting of changes. 

The timing of benefit payments makes accuracy even more difficult. Benefits are paid 

for a month on the first day of that month. Changes that occur after payments are made 

in a given month can affect payment eligibility and amounts for that month. Some 

information that varies from month to month, such as wages, can only be estimated and 

then verified after the fact. Even if every beneficiary reported every change in a timely 

manner, some inaccurate payments would still be made. 

Due process requirements also affect payment accuracy. SSA cannot stop, reduce, 

suspend, or terminate SSI payments without first providing written advance notice that it 

plans to do so. The advance notice provides beneficiaries with an opportunity to appeal a 

potentially erroneous adverse action by SSA. Since SSI payments are issued by the 

Treasury Department, SSA must send its information to Treasury in the month before the 

payments are made, giving SSA even less time to change its records. Beneficiaries have 

the right to have their SSI payments continued until a decision is issued at the first level 

of appeal. If the beneficiary loses at that level of appeal, the continued payments would 

be considered overpayments. 

What is described in the preceding paragraph is the best case scenario, in which 

beneficiaries report all changes. In fact, most SSI overpayments are made because 

beneficiaries do not report changes in income, resources, or living arrangements. The 

most recent report on SSI payment accuracy shows that failure to report information or 

reporting incorrect information is a major cause of payment inaccuracy:4

• The leading cause of overpayments in FY 2007 was excess resources in financial 

accounts (19 percent of overpaid benefits). Eighty-six percent of the overpaid 

dollars resulted from a failure to report information, and 11 percent resulted from 

an incorrect report. 

• Wages were the second leading cause of overpayments (18 percent of overpaid 

benefits). Eighty-one percent of the overpaid dollars resulted from a failure to 

report, and 8 percent resulted from an incorrect report. 

• In-kind support and maintenance (non-cash provision of food, shelter, or 

something that can be used to obtain food or shelter) was the third leading cause 

of overpayments. Sixty percent of the overpaid dollars resulted from a failure to 

report, and 24 percent resulted from an incorrect report. 

 

4

Supplemental Security Income Stewardship Report, Fiscal Year 2007, August 2008. 
3

How Payment Accuracy is Measured 

SSA derives accuracy rates by reviewing a random selection of SSI cases. Cases are 

selected monthly; quality reviewers interview beneficiaries and/or their representative 

payees and redevelop the non-medical factors of eligibility to determine whether the 

payment is correct. Any difference between what the quality review determines should 

have been paid and what was actually paid is expressed as an overpayment or 

underpayment error. The overpayment and underpayment error rates are calculated and 

reported separately. Accuracy rates are computed by dividing the error dollars by the 

total dollars paid for the fiscal year and subtracting the resulting percentage from 100 to 

get the accuracy rate. 

Since 1998 SSA has been reporting from its quality review what it calls preventable 

overpayments. It excludes unpreventable overpayments, which result from a 

beneficiary's change in circumstances that affect payment and/or eligibility, and the 

agency is precluded from stopping or adjusting the affected scheduled payment. There 

are two possible reasons why SSA might be precluded from adjusting the payment. One 

is a matter of timing. This situation occurs when a recipient has a change in 

circumstances that affects payment and occurs after the point in time when SSA could 

have adjusted the scheduled payment to reflect the change. Changes in income or 

resources that occur on or after the first of a month and which result in ineligibility for 

that month are examples of such situations. For instance, if an SSI beneficiary inherited 

$5,000 on the 23rd of a month, the receipt of so much income would render the 

beneficiary ineligible for any SSI payment in that month. However, the beneficiary 

would have already received his or her SSI payment on the first of the month, so the 

overpayment would have already occurred, and there would have been no way to prevent 

it. 

The other type of situation that would result in an unpreventable overpayment is a result 

of due process requirements for advance notice of an adverse action. SSA must notify a 

beneficiary that benefits for the next month will be reduced because SSA knows or 

believes that the person has received some form of countable income that would reduce 

the amount of SSI the person typically receives. The beneficiary has the right to appeal 

and ask that no changes be made until the appeal is resolved. In such a case the person 

would continue to receive a benefit amount calculated without taking the adverse action 

into account. If it turned out after the appeal that SSA was correct all along, the 

beneficiary might have received one or more inaccurate payments that SSA could not 

have prevented because of the beneficiary’s right to appeal a decision with which he or 

she does not agree. 

The program was made somewhat less susceptible to overpayments and underpayments 

in the 1980s, when SSA began a system known as “retrospective monthly accounting,” 

which uses a three-month cycle. Payments for a given month are based on known 

circumstances for a past month. The payment for a month is based on the beneficiary’s 

countable income in the second month before the current month. If changes to income 
4

are reported promptly and recorded in a timely and accurate manner, they should not 

result in overpayments. For example, the payment that is made at the beginning of June 

is generally based on the income for April. If the beneficiary has an increase or decrease 

in income or a change in living arrangements in April, he or she is supposed to report that 

change by the 10th of May and should then receive the correct payment in June. This 

works as long as beneficiaries report changes timely and as long as SSA inputs the 

information in a timely way. Changes need to be entered into the SSA computer system 

by a particular time each month in order for that information to be accurately reflected in 

the check issued on the first of the following month. If the correct information from 

April is not input before the cutoff date in May, an incorrect payment will be made for 

June.5

SSI Payment Accuracy 

The FY 1999 SSI Management Report established a goal of raising the accuracy of SSI 

payment from the FY 1996 rate of 94.5 percent to at least 96 percent by FY 2002. It 

went on to describe the actions it would take in order to achieve that improvement. 

SSA’s FY 1999 action plan: information technology

SSA’s plan to improve its payment accuracy depended in large part on technology, 

specifically computer data matching, and on redeterminations, which will be discussed 

later in this Statement. 

In its FY 1999 SSI Management Plan, SSA described plans for wage and unemployment 

compensation matches, nursing home computer matches, reporting agreements with 

correctional facilities, online access to State databases, matches with the databases of the 

Immigration and Naturalization Service (as it was then called), and improved or more 

frequent matches with the Railroad Retirement Board, the Treasury, and the Department 

of Defense. 

SSA has done all that and more. The agency receives data from 44 Federal and 2,385 

State data exchange partners, mainly to administer its benefit programs.6

 Specifically for 

SSI, for example, it uses online queries to access the Office of Child Support 

Enforcement online wage and new hire files to help avoid and detect wage 

overpayments.7

 It has data matches with Federal data sources that include the Internal 

 

5

 As we pointed out in our 2005 Statement on the Supplemental Security Income Program, retrospective 

accounting may make it easier for the agency to administer the program, but it does not serve the best

interests of beneficiaries who live at or near the poverty level and are concerned with meeting their current 

needs. Retrospective accounting makes budget planning difficult for beneficiaries even if all the payments 

are accurate. 

6

 Government Accountability Office, Information Technology: Demand for the Social Security 

Administration’s Electronic Data Exchanges Is Growing and Presents Future Challenges, December 2008, 

GAO-09-126. 

7

 The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 mandated a National 

Directory of New Hires that would maintain quarterly wage information on individuals to assist with child 
5

Revenue Service, Department of Labor, Office of Personnel Management, the 

Department of Veterans Affairs, and law enforcement agencies. It also obtains 

information from the States, including electronic death registration information to prevent 

improper payments after a beneficiary’s death. 

As mentioned above, financial accounts have long been a leading source of overpayment 

errors in the SSI program. SSA has been working since 1998 on an automated system for 

data exchanges with financial institutions to reduce SSI overpayments. The FY 1999 SSI 

Management Plan reported that SSA had submitted a legislative proposal that would 

allow SSA to obtain financial account information through data exchanges with financial 

institutions. The proposal required, as a condition of eligibility, that applicants for and 

beneficiaries of SSI (and other persons, such as parents or spouses whose income or 

resources were material to determining an individual’s eligibility) authorize the release of 

financial information held by financial institutions. The Foster Care Independence Act of 

1999 gave SSA the authority it had asked for, and the agency issued final regulations in 

FY 2004 that would enable it to request information from financial institutions. 

SSA contracted with a firm named Accuity Solutions to create an automated system that 

would electronically submit requests for verification of financial data and process the 

replies. Accuity developed a web-based system that automated the consent form and 

handled the sending and receipt of bank account verifications. The software can also 

search for undisclosed bank accounts at financial institutions near an individual’s 

residence. In FY 2004, 20 SSA field offices participated in a proof-of-concept test, along 

with 75 percent of the financial institutions in New York and New Jersey. The limited 

proof-of-concept test showed that the system found undisclosed accounts. This was 

followed by a larger study of more than 3,000 cases, which showed savings of $10 per 

dollar spent. 

SSA has said that should funding become available, it would extend the system for access 

to financial institutions nationwide. At present, it is being used only in field offices in 

New York, New Jersey, and California and in SSA quality review offices nationwide. 

SSA recently estimated the cost of a national rollout at $34 million over a period of a few 

years. Based on data through 2007, it estimates a 10-to-1 ratio of benefits to costs. It is 

currently revising its cost-benefit analysis with data from 2008. 

Redeterminations

The FY 1999 SSI Management Report called redeterminations “the most powerful tool 

available to SSA for improving the accuracy of SSI payments.” Redeterminations are 

reviews of the non-disability factors (income, resources, and living arrangements) that 

affect eligibility and payment amounts. The law requires SSA to conduct 

redeterminations but gives the agency the authority to determine the frequency and 

manner of conducting them. 

 

support enforcement. SSA has permission to use this data. SSA also has an agreement with the 

Department of Labor to obtain online queries of wage and unemployment compensation data. 
6

In the late 1970s SSA began using profiling techniques to identify cases that were most 

likely to have changes that would affect eligibility or payment amount. SSA uses that 

information to decide the frequency of redeterminations and to decide whether to 

complete the redetermination through a mailed questionnaire or a field office interview. 

Related to redeterminations are what SSA calls “limited issues.” These are cases selected 

for limited review by the field office due to a single issue, such as an alert resulting from 

a match between SSA's records and those of another agency. 

The FY 1999 SSI Management Report noted that redeterminations were very costeffective, and recent enhancements in its profiling had made them even more effective. 

At that time, SSA’s spending on redeterminations yielded savings (in the form of 

collected and prevented overpayments) of $8 for each $1 spent. The report noted that the 

President’s proposed FY 1999 budget included additional funds for redeterminations. 

The report stated that if that funding was approved, SSA would conduct 2.1 million 

redeterminations in 1999. In addition, the agency planned to further increase the number 

of redeterminations with a high risk of overpayment beyond 1999. 

The number of redeterminations did increase for a time, as the following chart shows.8

 In 

1999 the number of field office redeterminations rose to 1.6 million, with 642,000 

mailers. The number of field office redeterminations fell every year from 2004 through 

2007, and in 2008 was only 56 percent of what it had been in 1999. The number 

completed through mailers dropped every year since 2004. An SSA Deputy 

Redeterminations 1999 to 2008

0

0.5

1

1.5

2

2.5

3

3.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Millions

Limited issues

Mailer only

Field office redeterminations

Commissioner testified in 2008, “We have had to reduce some of our stewardship 

activities in order to devote necessary resources to service delivery, and our payment 

accuracy has suffered as a result.”9

 

8

 Data are from SSA’s Redeterminations Change Rate Study for the years shown. Through FY 03, the 

study provides figures for redeterminations selected for completion. Beginning FY 04, it provides figures 

for redeterminations completed. 

9

 Testimony of David A. Rust, Acting Deputy Commissioner for Disability and Income Security Programs 

before the Federal Financial Management, Government Information, Federal Services, and International 

Security Subcommittee of the Committee on Homeland Security and Governmental Affairs, United States 

Senate, January 13, 2008. http://www.ssa.gov/legislation/testimony_013108.htm
7

Since FY 2000, SSA has published a Redeterminations Change Rate Study, an analysis 

of the results of redeterminations it has conducted. This study shows, among other 

things, the number of redeterminations and the resulting overpayment benefits. 

Overpayment benefits are defined as overpayments prevented or projected to be 

collected. In the following chart, the bars show the number of redeterminations per year 

in millions (left-hand scale) and the line shows the overpayment benefits in billions of 

dollars (right-hand scale). SSA attributes the large increase in overpayment benefits in 

FY 2008 to a combination of factors. One was the increase in the volume of high-error 

profile cases in the redeterminations it conducted in 2008. Another was the fact that the 

average overpayment benefit for these cases increased due to improved profiling 

techniques. 

Redeterminations and their overpayment benefits, 1999-2008

0

0.5

1

1.5

2

2.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Millions of redeterminations

0

0.5

1

1.5

2

2.5

$Billions of overpayment benefits

Redeterminations

Overpayment benefits

Earlier we described overpayments in terms of the type of incorrect information that 

caused them. It is also helpful to look at them in terms of when they occurred in the life 

of the claim. SSA’s analysis shows the importance of redeterminations in preventing 

overpayments: 

• For overpayments due to financial accounts, 68 percent of the overpaid dollars 

resulted from a change in circumstances after the most recent redetermination or 

related limited issue, and 18 percent resulted from a change between the time the 

initial claim was completed and a redetermination or related limited issue was 

completed. 

• For overpayments due to wages, 77 percent of the overpaid dollars resulted from a 

change in circumstances after the most recent redetermination or related limited 

issue, and 18 percent from a change between the time the initial claim was 

completed and a redetermination or related limited issue was completed. 

• For overpayments due to in-kind support and maintenance, 46 percent of the 

overpaid dollars resulted from a change in circumstances after the most recent 

redetermination or related limited issue, and 31 percent resulted from a change 

between the time the initial claim was completed and a redetermination or related 

limited issue was completed. 
8

The point at which the overpayments occurred shows that overpayments could be greatly 

reduced if redeterminations were conducted more frequently. 

Results: SSI payment accuracy since FY 1999

Despite the agency’s efforts, while SSA’s overpayment accuracy rate increased slightly 

following its FY 1999 SSI Management Report, it has never reached the 96 percent goal. 

In fact, it has fallen dramatically since 2005, and as of 2007, the most recent year for 

which data are available, was at its lowest level in more than 30 years. 

SSI overpayment accuracy rate, FY 1998-2007

90.9

92.1

93.6 93.6 93.9

93.3 93.4

94.7 94.9

94.1

90

91

92

93

94

95

96

97

98

99

100

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Percent

In dollar terms, SSI overpayments have risen from about $2 billion in 2001 to nearly $4 

billion in 2007. Total Federal SSI payments were nearly $29 billion in 2001 and nearly 

$37 billion in 2007. 

SSI overpayment dollars, FY 2001-2007

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2001 2002 2003 2004 2005 2006 2007

Billions

Continuing Disability Reviews

SSA periodically reviews disability cases to determine whether individuals who are 

receiving benefits because they are disabled have improved so that they no longer meet 

SSA’s definition of disability. These reviews are called continuing disability reviews, or 

CDRs. Before the mid-1990s, SSA did not conduct many SSI CDRs. Until 1994, the 
9

law did not require CDRs for SSI beneficiaries, and SSA directed its limited resources to 

CDRs of Old-Age, Survivors, and Disability Insurance (OASDI) beneficiaries. 

By regulation, SSA sets CDR diaries for six to 18 months for beneficiaries who are 

expected to improve, up to three years for beneficiaries for whom medical improvement 

is possible, and five to seven years for beneficiaries who are not expected to improve. 

Beginning in 1994, SSI CDRs were mandated by statute. Legislation in 1994 required 

SSA to conduct CDRs on 100,000 SSI beneficiaries and on at least one-third of SSI 

beneficiaries reaching age 18 in each fiscal year from 1996 through 1998. Legislation in 

1996 required CDRs within one year on all children eligible because of their low birth 

weight; every three years on all SSI childhood beneficiaries who were considered likely 

to improve medically, and medical redeterminations using the adult disability standard on 

all SSI childhood beneficiaries within a year after reaching age 18.10

When this legislation was enacted, there was already a large backlog of CDRs. There 

had been an unexpected increase in initial disability claims in the early 1990s, and SSA 

moved resources from CDRs to initial claim processing. By the end of FY 1996, about 

4.3 million CDRs were due or overdue. In response, Congress gave SSA more than $4 

billion in special funding for OASDI and SSI CDRs for FYs 1996 through 2002. 

Ten years ago, when SSA issued its SSI Management Report, it was in the early stages of 

working through its seven-year plan to become current in its CDR workload. Its goal was 

to be current in conducting CDRs by FY 2002. It was current with OASDI CDRs by FY 

2000 and with all CDRs by FY 2002. 

Beginning with 2003, however, backlogs have grown again. About 1.6 million CDRs 

come due every year. Because of budgetary constraints, SSA has consistently been 

unable to process the number that come due. 

CDR backlogs, 2003-2008

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

2003 2004 2005 2006 2007 2008

Millions

 

10 20 CFR 416.990. The regulation also provides for non-diaried CDRs in other circumstances, such as a 

report of return to work or substantial earnings posted to the earnings record. 
10

Of the total 1.4 million backlogged CDRs at the end of FY 08, more than 500,000 were 

SSI children, and more than 400,000 were SSI adults. (The rest were non-SSI disability 

cases.) 

To help cope with the CDR workload, SSA has used a process based on profiling since 

1993. Cases that are profiled as having a high likelihood of medical improvement are 

sent to the State Disability Determination Services (DDS – the same agency that makes 

decisions on initial disability claims) for a full medical review. Cases that are profiled as 

having a low or medium likelihood of medical improvement are sent a brief mailer 

questionnaire. (The mailer process is not used for SSI disabled children.) If the 

responses to the mailer indicate a possible medical improvement, the case is sent to the 

DDS for a full medical review. By using profiling, SSA has been able to conduct more 

CDRs than if it did a full medical review of each case. 

Full medical and mailer CDRs, 1998-2008

0

200

400

600

800

1000

1200

1400

1600

1800

2000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Thousands

Mailer

Full medical

SSA has been refining its profiling in order to focus its full medical CDRs where they are 

most needed. Beginning in 2001, it worked with contractor assistance to refine and 

enhance its profiling models, using more comprehensive data and more advanced 

statistical modeling techniques. In 2007, with the help of a contractor, it completed a 

profiling model for SSI children. Since then it has worked on incorporating Medicare 

claims data and the relationship between pre-entitlement earnings and medical 

improvement into its profiling models. SSA has also developed an improved diary 

model, used to set a date for a CDR when an initial claim is approved. 

The administrative cost of conducting CDRs results in much greater savings of program 

costs. For the period 1996 through 2006, CDRs yielded savings-to-cost ratios averaging 

$10.4 to $1. For FY 2007, the ratio was estimated at $11.7 to $1. Looking specifically at 

SSI, CDRs conducted in FY 2007 will result in an estimated reduction in Federal benefit 

payments of $1.2 billion over a 10-year period, and a reduction in the Federal share of 

Medicaid payments of $715 million over the same period.11

 

11 SSA, Annual Report of Continuing Disability Reviews, Fiscal Year 2007. 
11

SSI Program Fraud 

The FY 1999 SSI Management Report noted that the potential for fraud is inherent in any 

cash benefit program. Because the extent of fraud is not accurately measurable, we 

cannot draw any conclusions about the amount by which the agency may have reduced 

fraud in the SSI program, but we can note some of the efforts. 

Even before the 1999 report was issued, SSA had already increased its anti-fraud activity. 

Over a three-year period, SSA added to its Office of Inspector General, increasing its 

staff (mainly investigators) by two-thirds. SSA also formed a joint Payment Accuracy 

Task Force with OIG that reviewed SSI payment errors and recommended measures for 

improvement. Another initiative that started before the management report was the 

creation in FY 1998 of five pilot projects using investigative teams composed of OIG, 

SSA, State DDS employees, and State law enforcement officials in five States. These 

pilots became the Cooperative Disability Investigation (CDI) program. By the end of FY 

2008 there were 19 CDI units in 17 States working to identify and resolve issues of fraud 

and abuse in initial and continuing disability claims. In FY 2008, these units received 

4,940 allegations of fraud and confirmed 3,464 of them. 

The management report observed that front-line SSA employees have an important role 

in detecting potential fraud. The number of fraud allegations from SSA employees 

increased from 22,000 in FY 1999 to 34,000 in FY 2008. In FY 1999 26 percent of 

allegations dealt with SSI disability benefits and 3 percent with SSI aged benefits. In FY 

2008, 40 percent dealt with SSI disability benefits and 1 percent with SSI aged. 

As the following chart shows, dollar amounts from penalties, assessments, savings, 

recoveries, and restitutions related to SSI investigative activities increased from $30 

million in 1999 to $158 million in 2008.12

SSI dollar amounts from investigative activities

0

20

40

60

80

100

120

140

160

180

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

$ millions

 

12 Data provided by SSA’s Office of the Inspector General. Figures for 1999 through 2003 differ from 

figures reported in Performance and Accountability Reports for those years, because the figures used here 

exclude savings from the Fugitive Felon Program, which were no longer reported after 2003. 
12

In addition to its investigative activities, the OIG also conducts audits of SSA activities. 

Some of these have looked into aspects of the SSI program that are susceptible to fraud. 

For example, in FY 2008, the OIG issued a report on SSI beneficiaries with automated 

teller machine withdrawals indicating that they were outside the United States. (SSI 

beneficiaries are not eligible for benefits for any calendar month if they are outside the 

United States throughout the month.) Another audit looked into SSI beneficiary 

marriages not reported to SSA. Another analyzed SSI beneficiaries with excess income 

or resources. In each of these cases, it recommended corrective actions that SSA 

followed. 

Debt Collection 

The FY 1999 SSI Management Report described the debt collection tools that SSA then 

had available to it: 

• Benefit offset: Overpayments to beneficiaries who were still on the benefit rolls 

could be recovered by withholding a portion of the ongoing monthly benefit until 

the debt was collected. In addition, former SSI beneficiaries who received 

OASDI benefits could repay an SSI overpayment by voluntarily requesting offset 

of their OASDI benefit. SSA could not at that time recover an SSI debt from an 

OASDI benefit without the beneficiary’s consent. 

• Repayment agreements: These were agreements to repay by installments, and 

were difficult and costly ways to recover overpayments. 

• Tax refund offset: SSA had authority to refer delinquent debtors to the Treasury 

Department, which could withhold tax refunds until the SSI debt was repaid.13

The report also mentioned that SSA had submitted to Congress legislative proposals to 

give the agency additional authorities to collect debts. The Foster Care Independence 

Act of 1999 gave SSA the following additional authorities for recovering overpayments: 

• SSA could report delinquent SSI debts to credit bureaus, which has led to 

repayment of delinquent overpayments. 

• SSA could withhold SSI overpayments from OASDI benefits without the consent 

of the beneficiary. (SSA received additional authority in the Social Security 

Protection Act of 2004 to collect SSI overpayments from large OASDI 

underpayments, even when the individual remains eligible for SSI monthly 

payments.) 

• SSA could issue garnishment orders to employers to collect SSI overpayments. 

• SSA could automatically net SSI overpayments against SSI underpayments. 

The following table shows the dates that each of these initiatives was implemented, and 

the amount of SSI overpayments that have been collected as a result through the end of 

FY 2008. 

 

13 GAO later pointed out that SSA had only started using tax refund offsets to recover SSI overpayments in 

1998 although it had had the authority to do so since 1984. (GAO, Supplemental Security Income: LongStanding Issues Require More Active Management and Program Oversight, February 3, 1999. GAO/THEHS-99-51. 
13

Results of overpayment initiatives through FY08 

Initiative Began Results ($ in billions) 

Credit bureau reporting 1999 $0.217 

Cross-program recovery 2002 $0.409 

Wage garnishment 2005 $0.008 

Automatic netting 2002 $0.596 

Total $1.230 

In FY 2006 SSA also implemented what it calls its non-entitled debtors program. This is 

an automated system to control recovery activity for debts owed by people who do not 

receive benefits. This system controls, for example, recovery of debts from 

representative payees who receive benefits after the death of a beneficiary. 

Overall, SSI collections increased from $640 million in FY 1999 to nearly $1.1 billion in 

FY 2008. 

Conclusions and Recommendations 

Since issuing its SSI Management Report in FY 1999, SSA has taken the actions it 

outlined and has gone beyond those actions. It has made increased use of technology to 

collect information on income, resources, and living arrangements. It achieved its goal of 

being current with continuing disability reviews as of FY 2002. It has improved its 

profiling of redeterminations. It has obtained authority for and has implemented new 

methods of collecting overpayments. 

Despite these actions, the bottom line results are disappointing. SSA has yet to reach the 

goal it set in FY 1999 to attain an overpayment accuracy rate of 96 percent. In fact, in 

recent years, accuracy levels have declined, and overpayment dollars have climbed. 

To improve its bottom-line results, SSA needs an increased number of redeterminations 

and CDRs. These program integrity efforts help ensure the accuracy of benefit payments. 

The administrative funds expended on them also result in program savings. SSA 

estimates that for each dollar spent on redeterminations and CDRs, the agency saves $10 

in program costs. But quality and program integrity should not become concerns only 

after claims are approved. SSA should also focus on improving the accuracy of its initial 

claims processes. It can realize the largest savings by doing things right the first time. 

SSA should also continue to improve and expand its use of technology for program 

integrity, work to improve beneficiary reporting, and simplify the SSI program rules. 

Funding increased redeterminations and CDRs

A reliable source of funding for redeterminations and CDRs is essential to improving 

SSA’s stewardship of the SSI program. Since the end of special funding for CDRs, SSA 

has reduced its stewardship activities in order to devote resources to basic service 
14

delivery.14 The following chart shows the amount of the Commissioner’s request, the 

President’s budget request for SSA, and the appropriation for the agency. In no year 

since 2000 has the President’s budget met the amount requested by the Commissioner, 

and in only the last two years has the appropriation exceeded the President’s request. 

SSA administrative budget, FY 2000-2009

0

2

4

6

8

10

12

14

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Billions of dollars

Commissioner's request President's budget Appropriation

Greater transparency in SSA budgeting would be helpful. The Commissioner’s request is 

published as a number without any explanation. The Advisory Board has previously 

recommended that SSA be able to submit its entire request and budget justification to 

Congress without having it first obtain the approval of the Office of Management and 

Budget. SSA’s budget justification would be helpful to Congress in assessing the 

agency’s needs. As the Board’s chairman has testified, “Additional transparency in 

budgeting could help Congress better understand what is needed to fund the 

administrative costs adequately.”15

The Advisory Board has previously recommended that all of SSA’s administrative 

expenses be excluded from discretionary spending caps. In our 1999 report on service to 

the public, we stated, “It is entirely appropriate that spending for administration of Social 

Security programs be set at a level that fits the needs of Social Security’s contributors and 

beneficiaries, rather than an arbitrary level that fits within the current government cap on 

discretionary spending.”16

The Government Accountability Office has noted that “the earmarking of funds for 

activities such as CDRs could help SSA keep current with these activities. For example, 

 

14 Testimony of David Rust, Acting Deputy Commissioner for Disability and Income Security Programs to 

the Federal Financial Management, Government Information, Federal Services, and International Security

Subcommittee, January 31, 2008. 

15 Testimony of Sylvester J. Schieber to the Subcommittee on Social Security of the Committee on Ways 

and Means, U.S. House of Representatives, February 14, 2007. 

16 How the Social Security Administration Can Improve Its Service to the Public. 

http://www.ssab.gov/Publications/ServicePublic/stpweb.pdf. 
15

if the number of initial applications for disability benefits continues to increase over the 

next several years, holding apart the necessary funds for CDRs could be a prudent 

measure.”17 The President’s FY 2010 budget proposes $759 million for SSA CDRs and 

redeterminations, and a total of $4.3 billion for fiscal years 2010 through 2014. The 

proposal uses the same sort of cap adjustment that was used for CDR funding in FY 2002 

through 2006 to ensure that this funding will not supplant other Federal spending on these 

activities or be diverted for other purposes. 

Budgetary transparency and cap adjustments are helpful, but we believe that a more 

fundamental approach is needed to establish a reliable source to fund program integrity 

activities. As the Board’s chairman has said to the Ways and Means Committee, “I 

realize that there is a budgetary distinction between administrative and benefit spending, 

but that is an artificial distinction that most taxpayers supporting Social Security would 

consider ludicrous. You might want to support an incentive-based stewardship approach 

whereby the Agency can retain a percentage of such stewardship savings. Abandoning 

the ability to minimize improper payments is not only wasteful, but will worsen the 

future year total deficits that will constrain future discretionary spending.”18

The Chief Financial Officer Council and the President’s Council on Integrity and 

Efficiency established a workgroup on reduction of improper payments that proposed a 

similar government-wide funding mechanism from collections of erroneous payments. 

The proposal called for legislation that would authorize all Federal agencies and Offices 

of Inspector General to use a percentage of actual collections of erroneous payments to 

fund activities to prevent, detect, and collect erroneous payments. The legislation the 

workgroup proposed would establish permanent indefinite appropriations, subject to 

apportionment by OMB, which would be based on a percentage of actual collections. 

Agencies and OIGs would report on how these funds were used to prevent, detect, and 

collect erroneous payments.19

Improved use of technology

The Advisory Board has recently published a report on information technology (IT) at 

SSA.20 In that report, we recommended improved strategic planning, comprehensive 

business plans, a restructured IT governance process, integrated electronic service 

delivery, and an ongoing commitment to future technologies. All of those 

recommendations apply to SSA’s program integrity activities. SSA should include 

program integrity concerns in all that it does to update its systems. As it models its 

 

17 GAO, Social Security Disability: Reviews of Beneficiaries’ Disability Status Require Continued Attention 

to Achieve Timeliness and Cost-Effectiveness. GAO-03-662, July 2003. 

18 Testimony of Sylvester J. Schieber, Chairman, Social Security Advisory Board to the Committee on 

Ways and Means, U.S. House of Representatives, April 23, 2008. 

http://www.ssab.gov/documents/SchieberWaysandMeans042308.pdf

19 Testimony of Inspector General James G. Huse, Jr., Hearing before the Subcommittee on Human 

Resources of the Committee on Ways and Means, U.S. House of Representatives, July 25, 2002. SSA has 

drafted a legislative proposal along these lines. See SSA Office of the Inspector General, Congressional 

Response Report: Opportunities and Challenges for the Social Security Administration, April 2009, p. 14. 

20 http://www.ssab.gov/documents/Bridging_the_Gap_pre-publication_release_april_2009.pdf
16

business processes, it should strive to ensure that it does things correctly the first time and 

to integrate program integrity into its systems. 

Looking back over the last 10 years, we see that SSA has made some advances in its use 

of technology that point the direction to a more effective future. It has moved from 

periodic matches with other databases to online query capability. In the case of its 

automated program for access to data from financial institutions, it is working toward 

integrating it with its claims processing system, to reduce the amount of employee 

intervention required. There is still a substantial need in program integrity, as in its other 

business processes for further improvements. We encourage SSA to continue its work 

with the Access to Financial Information project and expand it nationally as soon as 

feasible. 

Program simplification

The Board has frequently pointed out that the complexity of the SSI program makes it 

difficult for claimants and beneficiaries to understand and challenging for the agency to 

manage. We have also made some recommendations for improving program design and 

rules.21 In 2003, when it removed the SSI program from its high-risk list, GAO pointed 

out that program complexity was a key program vulnerability associated with SSI 

overpayments. 

Since then, SSA has achieved some simplification of the program, but they have been 

relatively minor. The Social Security Protection Act of 2004 included provisions 

simplifying some income exclusion and income counting rules and establishing a uniform 

resource exclusion period. Regulations issued in 2005 simplified an income counting 

rule and added resource exclusions.22 Although SSA has studied various options for 

major program simplifications, it has not proposed specific legislative changes. 

The most recent study is an article on options for eliminating the counting of in-kind 

support and maintenance, one of the most complex aspects of SSI.23 The article points 

out that since the SSI program began 35 years ago, at least 10 workgroups, studies, and 

reports have examined ways to simplify the program, and most of them have looked at 

 

21 The Board has recommended program simplification since its Statement in 1999 and made some specific 

recommendations in its Statements beginning in 2005. Earlier Statements are available at: 

http://www.ssab.gov/Publications/Subject.html. 

22 Rene Parent and Richard Balkus, “Efforts Since 2000 to Simplify the SSI Program: Legislative and 

Regulatory Changes,” Policy Brief 2008-01, April 2008, SSA Office of Policy. 

http://www.ssa.gov/policy/docs/policybriefs/pb2008-01.html. See also, Erik Hansen, “A Legislative 

History of the Social Security Protection Act of 2004,” Social Security Bulletin, vol. 68, no. 4, 2008, 41-52. 

23 Richard Balkus, James Sears, Susan Wilschke, and Bernard Wixon, “Simplifying the Supplemental 

Security Income Program: Options for Eliminating the Counting of In-kind Support and Maintenance,” 

Social Security Bulletin, Vol. 68, no. 4, 2008, 15-39. 

http://www.ssa.gov/policy/docs/ssb/v68n4/v68n4p15.pdf. 

In-kind support and maintenance is non-cash support to beneficiaries for food or shelter, which is counted 

as unearned income and reduces the SSI benefit. Determining the amount of this type of income requires 

obtaining detailed information on household composition, household expenses, and contributions by 

members of the household. 
17

the issue of in-kind support and maintenance, with only limited progress at simplifying 

these rules. The article illustrates the difficulty of simplifying this aspect of SSI policy in 

a way that is budget neutral. Eliminating the counting of in-kind support and 

maintenance is estimated to save about $70 million per year in administrative costs, but at 

a program cost of $1.2 billion per year. To maintain budget neutrality, the costs are 

recouped by reducing the benefits of beneficiaries who share housing. As the article 

points out, the redistribution seems disproportionate to the administrative savings, and 

there are distributional concerns about how the costs would be recouped, with some 

groups of beneficiaries gaining and others losing. 

Wages are another error-prone area in the SSI program where policy changes may be 

helpful. Payment errors are due in part to lack of reporting or incorrect reporting by 

beneficiaries. Other errors are caused by field office personnel either not verifying or 

incorrectly verifying wages.24 SSA has developed systems for online reporting and 

automated telephone reporting, but it remains to be seen how widely these will be used. 

SSA has established online access to State wage data, but those data are in a quarterly 

format, and current SSA procedures require monthly verified wage amounts. The 

President’s budget for FY 2010 proposes to restructure the Federal wage reporting 

process to increase the frequency with which wages are reported to SSA, but that would 

only increase from annual to quarterly reporting. SSA should consider policy changes 

that might make more use of quarterly wage data and reduce its labor-intensive 

verification processes. 

Improving beneficiary reporting

Much of what we know – or think we know – about the failure of beneficiaries to report 

relevant information is anecdotal in nature. We have heard, and can readily believe, that 

many beneficiaries do not understand program requirements or remember the reporting 

instructions they received when they first filed for benefits. It is also likely that some 

beneficiaries withhold information in order to get a higher benefit. And given the near 

impossibility of getting through to some local field offices by phone and the delays in 

getting through to the 800-number system, we can understand that beneficiaries might be 

discouraged from reporting. SSA has been working on an automated telephone system 

and an online system for reporting wages, but progress has been slow. 

Given the importance of beneficiary reporting to SSI payment accuracy, an evidencebased approach to improving that reporting would be worth investigating. The United 

Kingdom’s Department for Work and Pensions recently issued a study on Reporting 

Changes in Circumstances: Factors Affecting the Behaviours of Benefit Claimants.25 The 

study showed that ignorance and confusion were the main factors underlying nonreporting or late reporting of changes. Other factors included resentment about program 

rules that were perceived as unfair, difficulties in making contact and relaying 

information to agencies, and a widespread misunderstanding that if a beneficiary reports 

 

24 SSA, Office of Quality Performance, SSI Transaction Accuracy Review Wage Report, October 24, 2006. 

25 Research Report no. 544, published 2009. http://www.dwp.gov.uk/asd/asd5/rports2009-

2010/rrep544.pdf. 
18

a change to one agency, that agency will convey the information to others that need it. A 

similar study of the SSI population would provide information from which SSA could 

devise ways to improve beneficiary reporting. 

SSA has come a long way in a decade, but considerably more remains to be done through 

technology, simplification, and improved reporting.

Sylvester J. Schieber, Chairman 

Dana K. Bilyeu Dorcas R. Hardy Marsha Rose Katz 

 Barbara B. Kennelly Mark J. Warshawsky