Annual Report of the

Supplemental Security Income Program

Social Security Administration

May 2002
.
SOCIAL SECURITY

Office of the Commissioner

May 30, 2002

President George W. Bush

The White House

Washington, D.C.

The Honorable J. Dennis Hastert

Speaker of the House of Representatives

Washington, D.C.

The Honorable Richard B. Cheney

President of the Senate

Washington, D.C.

Gentlemen: 

I have the honor of transmitting to you the 2002 Annual Report of the Supplemental Security

Income Program (the sixth such report), in compliance with section 231 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

As I am sure you are aware, in 1997 the General Accounting Office declared SSI to be a high

risk program. I am determined to take the action necessary to address the problems identified by

GAO. I have met with the Comptroller General and have developed a corrective action plan.

In my commitment to SSA’s mission of managing America’s social security programs, two of

my top goals are: (1) delivering quality citizen-centered service in a timely and efficient manner,

and (2) providing accountable stewardship to taxpayers by ensuring superior financial, performance and budget management and integrity in all payments, records and processes. Emphasizing these two goals is particularly important for the SSI program. I hope that the contents of this

report will enable you to understand how seriously we take our role in this area.

Sincerely,

Jo Anne B. Barnhart

Commissioner

SOCIAL SECURITY ADMINISTRATION BALTIMORE MD 21235-0001
.
EXECUTIVE SUMMARY

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

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

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

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

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

Highlights of the SSI Program

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

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

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

and limited resources.

 • In January 2002, 6.4 million individuals

received monthly Federal SSI payments

averaging $374 versus 6.4 million with an

average payment of $363 in January 2001.

 • Federal expenditures for cash payments

under the SSI program during calendar

year 2001 totaled $30.5 billion, and the

cost of administering the SSI program in

fiscal year 2001 was $2.4 billion. The

equivalent 2000 amounts were $28.8 billion and $2.4 billion, respectively.

 • SSA has developed a new Corrective

Action Plan to better manage the SSI program and effect the removal of the program from the General Accounting

Office’s (GAO) list of high-risk programs.

The SSI program has been included in

GAO’s list since 1997.

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

vocational rehabilitation, employment, and other support services, was introduced in 13 States in the

first half of 2002 and will be in operation nationwide by January 2004.

Major Findings of the Report

 • By 2026, the end of 25-year projection period, the Federal SSI recipient population is estimated to

reach 8.2 million. The projected growth in the SSI program over the 25-year period is largely due to

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

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

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

level at 2.2 percent in 2001, and is projected to grow slightly to 2.37 percent of the population by

2026. 

Disabled

18-64

62%

Disabled

under 18

17%

Aged

13%

Disabled 65

or older

8%

 SSI Federal Payments, Calendar Year 2001

$30.5 billion
 • Federal expenditures for SSI payments in calendar year 2002 are estimated to increase by $1.4 billion

to $31.9 billion, an increase of 4.6 percent from 2001 levels.

 • In constant 2002 dollars, Federal expenditures for SSI payments are projected to increase to $41.6 billion in 2026, a real increase of 1.1 percent per year.

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

decline over time, from the current level of 0.30 percent of GDP in 2001 to 0.25 percent of GDP by

2026. 
(VII)

CONTENTS

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

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

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

B. SSI LEGISLATION SINCE THE 2001 ANNUAL REPORT. . . . . . . . . . . . . . . . . . . . . . . . . . 2

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

1. Stewardship and Program Integrity (1998-2001). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

2. Corrective Action Plan (2002-2005) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

3. Special Disability Workload. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

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

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

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

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

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

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

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

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

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

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

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

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

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

b. Parent-to-Child Deeming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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

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

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

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

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

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

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

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

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

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

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

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

2. Determinations of Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

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

4. Representative Payees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5. Appeal Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

6. Attorney Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

7. Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

a. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

b. Presumptive Disability or Blindness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
(VIII)

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

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

2. Mandatory State Supplementary Payment Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3. Administration of State Supplementary Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

4. Mandatory Passalong . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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

1. Windfall Offset. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

2. Medicaid Determinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

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

4. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES 

UNDER THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2002-26 . . . . . . . . . 25

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

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

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

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

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

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

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

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

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

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

a. Citizenship and Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

b. Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

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

d. Institutionalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

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

f. Continuing Disability Reviews and Eligibility Redeterminations . . . . . . . . . . . . . . . . . . 56

g. Deeming of Income and Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

3. Federal Benefit Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

a. Windfall Offset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

b. Proration of Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

c. Retrospective Monthly Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

d. Uncashed Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

e. Rounding of Payment Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

f. Penalties Resulting in Nonpayment of Benefits for False or Misleading Statements . . . 59

4. Federal Benefit Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

5. Exclusions from Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

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

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

6. Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

a. General Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

b. Special Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

c. Transfer-of-Assets Penalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

7. Presumptive and Emergency Payments and Interim Assistance Reimbursement . . . . . . . . 66

a. Presumptive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

b. Emergency Advance Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

c. Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
(IX)

8. Medicaid Eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

9. State Supplementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

10. Overpayment Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

B. INCOME AND RESOURCE EXCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

1. Earned Income Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

2. Unearned Income Exclusions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

3. Resource Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

C. HISTORICAL ALLOWANCE DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

1. Technical Notes on the Disability Research File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

2. General Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY 

REVIEW DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

1. Redeterminations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

2. Continuing Disability Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION . . . . . . . . . 88

1. Work Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

a. Numbers of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

b. Average Earnings of Participants in Work Incentive Programs . . . . . . . . . . . . . . . . . . . . 90

2. Vocational Rehabilitation/Ticket to Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS . . . . . . . . . . . . . . . . . . . . 93

1. Program Participation Data from the Supplemental Security Record (SSR). . . . . . . . . . . . 93

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

Participation (SIPP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

G. RESEARCH ON RELATED TOPICS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

1. Recently Completed Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

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

Benefits for Children with Disabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

b. Analyses Using SSA’s Model of Financial Eligibility for SSI. . . . . . . . . . . . . . . . . . . . . 95

2. Ongoing Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

a. National Survey of Children with Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

b. Evaluation of the State Partnership Initiative Return-to-Work Demonstrations . . . . . . . 96

c. Evaluation of the Ticket to Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

3. Bibliography. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

H. GLOSSARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

ADDITIONAL STATEMENT BY THE SOCIAL SECURITY ADVISORY BOARD

(XI)

TABLES

II.C1 Trends in Detection and Recovery of SSI Overpayments, Fiscal Years 1998-2001 . . . . . . . . . 3

II.C2 Total Redeterminations Selected for Review, Fiscal Years 1998-2001. . . . . . . . . . . . . . . . . . . 4

II.C3 Continuing Disability Reviews, Fiscal Years 1998-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

II.C4 Estimated Present Value of Lifetime Program Savings Due to CDRs Conducted in 

Fiscal Years 1998-2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

III.H1 SSI State Supplementation and Coordination with Other Programs. . . . . . . . . . . . . . . . . . . . . 24

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

Intermediate Assumptions of the 2002 OASDI Trustees Report, as of July 1, 1974-2026. . . . 27

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

Basis of the Intermediate Assumptions of the 2002 OASDI Trustees Report, 1974-2026 . . . . 28

IV.B1 SSI Federally-Administered Applications, Calendar Years 1974-2026 . . . . . . . . . . . . . . . . . . 30

IV.B2 SSI Federally-Administered New Entrants, Calendar Years 1974-2026. . . . . . . . . . . . . . . . . . 32

IV.B3 SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2026 . . . . . . . 34

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

Calendar Years 1974-2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

IV.B5 SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2026 . . . . . 36

IV.B6 SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2026. 37

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

Selected Social Security Area Population Totals, as of December, 1975-2026 . . . . . . . . . . . . 39

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

in Current-Payment Status as of December, 1974-2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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

as of December, 1974-2026. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

IV.C1 SSI Federal Payments in Current Dollars, Calendar Years 1974-2002 . . . . . . . . . . . . . . . . . . . 43

IV.C2 SSI Federal Payments in Current Dollars, Fiscal Years 1978-2002 . . . . . . . . . . . . . . . . . . . . . 44

IV.C3 SSI Federal Payments in Constant 2002 Dollars, Calendar Years 1974-2026 . . . . . . . . . . . . . 46

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

Calendar Years 1974-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

IV.C5 SSI State-Administered Payments in Current Dollars, Calendar Years 1974-2001 . . . . . . . . . 47

IV.D1 SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2026. . . . . . . . . . . . . . . 49

IV.E1 Selected SSI Administrative Costs, Fiscal Years 1978-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . 50

V.A1 Federal Benefit Rates Set by Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

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

Year of Filing and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
(XII)

V.D1 SSI Redeterminations Completed, Fiscal Years 1986-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

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

Fiscal Year of Initial Decision and Level of Decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

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

December, 1987-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

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

Participating in Other Work Incentives as of December, 1990-2001 . . . . . . . . . . . . . . . . . . . . 90

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

Recipients, as of December, 1987-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

V.E4 Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2001 . . . . . . . 92

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

Participation in Selected Programs Based on SSA Administrative Records, 

December, 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

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

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

Collected Under Wave 12 of the 1996 Survey of Income and Program Participation, 

December, 1999. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
(XIII)

FIGURES

IV.B1 SSI Federally-Administered Applications by Age Group, Calendar Years 1980-2030 . . . . . . 31

IV.B2 SSI Federally-Administered New Entrants by Age Group, Calendar Years 1980-2030. . . . . . 33

IV.B3 SSI Federally-Administered Terminations by Age Group, Calendar Years 1980-2030 . . . . . . 37

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

December, 1980-2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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

Selected Social Security Area Population Age Groups, as of December, 1980-2030 . . . . . . . 40

IV.C1 SSI Federal Payments, by Age Group, in Constant 2002 Dollars, Calendar Years 1980-2030 . 45

IV.D1 SSI Federal Payments, by Age Group, as a Percentage of GDP, Calendar Years 1980-2030. . 48

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

December, 1987-2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

1

I. INTRODUCTION

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

beginning in January 1974. It is administered by the Social Security Administration (SSA). SSI replaced

the former Federal-State programs of Old-Age Assistance (OAA), Aid to the Blind (AB), and Aid to the

Permanently and Totally Disabled (APTD) in the 50 States and the District of Columbia. Residents of the

Northern Mariana Islands became eligible for SSI in January 1978.

Under the SSI program, each eligible person living in his/her own household and having no other countable income is provided in 2002 a monthly Federal cash payment of $545 ($817 for a couple if both members are eligible). Since 1975, these Federal SSI benefit rates have been increased by applying the same

cost-of-living adjustment that has been applied to benefits under the Old-Age, Survivors, and Disability

Insurance (OASDI) program. In addition to setting a Federal benefit standard, the legislation establishing

SSI also permitted individual States to supplement the Federal payment with an additional monthly

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

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

program began.

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

Commissioner of Social Security is required to submit a report on the SSI program to the President and

Congress no later than May 30 of each year. This is the sixth annual report on the SSI program. The legislative mandate requires that the report include:

 • A comprehensive description of the SSI program;

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

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

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

 • 25-year projections of future participation rates and program costs; 

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

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

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

Security Advisory Board.

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

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

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

social safety net.
2002 SSI Annual Report

2

II. HIGHLIGHTS

A brief history and comprehensive description of the SSI program is presented in section III. 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 forecasts.

A. RECENT PROGRAM EXPERIENCE

SSI program experience during the past year included the following:

 • During 2001, 1.6 million individuals applied for SSI benefits based on blindness or disability, an

increase of 4 percent over 2000. An additional 0.1 million applied for SSI benefits based on age, a

decrease of 5 percent from 2000.

 • On average during calendar year 2001, 6.4 million individuals received Federal SSI benefits on a

monthly basis. This group was composed of 1.2 million aged recipients, 5.2 million disabled recipients, and fewer than 0.1 million blind recipients. An estimated 7.2 million aged, blind, or disabled

individuals received at least 1 month’s Federal SSI benefit during the year.

 • Federal expenditures for cash payments under the SSI program during calendar year 2001 totaled

$30.5 billion.

 • On average during calendar year 2001, 2.5 million individuals received Federally-administered State

supplementary payments on a monthly basis. This group was composed of 0.6 million aged recipients, 1.9 million disabled recipients, and fewer than 0.05 million blind recipients. An estimated

2.8 million individuals received at least 1 month’s Federally-administered State supplementary payment during calendar year 2001.

 • State expenditures for Federally-administered supplements during calendar year 2001 totaled

$3.5 billion, excluding fees for Federal administration.

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

50 percent in 2001.

 • The cost of administering the SSI program in fiscal year 2001 was $2.4 billion, which was roughly

7 percent of total Federally-administered SSI expenditures.

 • Pursuant to Public Law 106-554, a one-time payment was issued in July 2001 to correct an error by

the Bureau of Labor Statistics in the calculation of the Consumer Price Index (CPI) that resulted in a

lower Federal benefit rate for individuals in 2000 and 2001. Most individual SSI recipients received

$19, representing a $1 increase in the monthly payment amount from January 2000 through July

2001. Monthly payments beginning in August 2001 were based on the adjusted Federal benefit rate

for individuals.

B. SSI LEGISLATION SINCE THE 2001 ANNUAL REPORT

In 2001, there was only one minor legislative change to the SSI program. This change, which was

included in the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107-16),

enacted June 7, 2001, increases child tax credit amounts gradually from $500 for each child to $1,000 per

child in 2010. It also expands the child tax credit by making it refundable for low-income workers and

excludes the refundable child tax credit from income or resources in determining eligibility for meanstested programs, including SSI. The refundable child tax credit is excluded from SSI countable resources

in the month of receipt and in the following month.
3

2002 SSI Annual Report

C. CURRENT ISSUES FACING THE SSI PROGRAM

In each of the past 4 years, the current issues section of this report has noted that the stewardship and

integrity of the SSI program are the primary issues confronting SSA in its responsibility for administering

the program. Agency stewardship and program integrity remain the major issues facing SSI in 2002.

1. Stewardship and Program Integrity (1998-2001)

Before describing SSA’s efforts to meet the challenges provided by the SSI program, it is important to reiterate that the over 6.7 million aged, blind, or disabled individuals receiving Federally-administered SSI

payments are among the most vulnerable Americans, who have little in the way of income or resources.

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

impoverishment.

When the SSI program was designed in 1972, SSA was designated as the agency responsible for its

administration because of its existing infrastructure and reputation for accurate, efficient, humane and dignified administration of the OASDI social insurance programs. As stated in a 1977 report by staff of the

Senate Finance Committee, “[d]espite very severe problems, Social Security Administration personnel by

hard work, long hours, and considerable ingenuity managed to short circuit many of the bottlenecks, keep

the program going, and gradually but significantly improve program performance.”

SSA’s administration of the SSI program came under criticism in 1997, when the General Accounting

Office (GAO) designated SSI as a high-risk program because of the existence of overpayments of over

$1 billion. SSA responded to the issues raised by GAO by developing a comprehensive plan to improve

payment accuracy and management of the SSI program titled “Management of the Supplemental Security

Income Program: Today and in the Future” dated October 1998. As part of that plan, SSA sought and

obtained legislation in the Foster Care Independence Act of 1999 that strengthened its ability to obtain

applicant income and resource information from financial institutions, access State databases for essential

eligibility information, and use credit bureaus, private collection agencies, interest levies, and other tools

to recover delinquent debt.

The initiatives undertaken since 1998 to improve SSA’s management of the SSI program have yielded

measurable successes. SSA now does a better job of identifying and collecting SSI debt. For example, SSI

overpayment collections as a percent of SSI outlays are 33 percent higher in fiscal year 2001 than they

were in fiscal year 1998, and overpayment detections as a percent of program outlays are 32 percent

higher. Importantly, this increase in the rate of detections and collections occurred while payment accuracy

remained stable. That is, the increase came from improved detection and collection performance, not

increased error.

The following table illustrates that success. It documents that in fiscal year 2001 alone, SSA identified

$477 million more overpaid dollars and collected $205 million more debt than we would have had the initiatives not been implemented.

Table II.C1.—Trends in Detection and Recovery of SSI Overpayments, Fiscal Years 1998-2001

(Amounts in millions)

1998 1999 2000 2001 2001 performance Excess actual

Federally-administered SSI outlays1 . . .

1 Thirteen months of benefits were paid in 2000 and 11 months were paid in 2001 because October 1, 2000 fell on a weekend. The amounts shown on

this line for 2000 and 2001 have been adjusted for comparability to reflect 12 months for each year.

$30,371 $31,342 $31,968 $33,266 at 1998 rates detections and collections

New detections:

Amount. . . . . . . . . . . . . . . . . . . . . . . $1,346 $1,813 2$1,461

2 The amount detected in 2000 declined relative to the amount shown for 1999 due to limited resources resulting in 300,000 fewer redeterminations

and match alerts being processed in 2000 versus 1999.

$1,951 $1,474 +$477

Percent of outlays . . . . . . . . . . . . . . . 4.4% 5.8% 4.6% 5.9% 4.4%

Collection:

Amount. . . . . . . . . . . . . . . . . . . . . . . $539 $640 $702 $796 $591 +$205

Percent of outlays . . . . . . . . . . . . . . . 1.8% 2.0% 2.2% 2.4% 1.8%

SSI payment accuracy rate3. . . . . . . . . .

3 Computed excluding unavoidable erroneously paid dollars. Variance in the accuracy rate over the period 1998-2000 was not statistically significant.

94.1% 94.9% 94.7% N/A
2002 SSI Annual Report

4

In the past year, SSA has continued to engage in an aggressive program to deter, detect, investigate and

prosecute fraud. SSA’s leadership has supported efforts to expand the capabilities of the Office of the

Inspector General to improve the accuracy and integrity of the agency’s work. SSA has taken numerous

actions to strengthen its research and policy development role. It has increased the number of redeterminations of nondisability factors and the number of continuing disability reviews (CDRs) to assure continuing

eligibility for disability.

Experience has shown that the most powerful tool SSA has to detect and prevent improper payments1 in

the SSI program is to perform more redeterminations. A “redetermination” is a periodic review of the nondisability factors of eligibility for SSI. Since fiscal year 1998, SSA has taken action to both increase the

number of redeterminations processed and to improve the profiles that are used to select cases for this

review. These improvements resulted in $131 million in overpayments collected or prevented.

The following table shows the number of redeterminations selected for review over the period 1998-2001,

including their outcomes.

The CDR process is also a major component in SSA’s effort to ensure the integrity of the SSI program. It

is the primary process used to monitor the disability status of beneficiaries. Since the CDR process applies

also to OASDI disabled recipients, the funding and administration of the CDR process is carried out

jointly for both programs administered by SSA.

Using special funding provided by Congress for fiscal years 1996-2002, SSA has dramatically expanded

the number of CDRs conducted under both the SSI and OASDI programs. As shown in table II.C3 below,

the number of SSI-only CDRs have increased from 389,000 in 1998 to 651,000 in 2001.

1 Includes both overpayments and underpayments.

Table II.C2.—Total Redeterminations Selected for Review, Fiscal Years 1998-2001

Fiscal year

Number of

redeterminations

Overpayments detected

(In billions)

Underpayments detected

(In billions)

2001 2,986,300 $2.7 $1.5

2000 2,590,400 2.1 .9

1999 2,881,900 2.5 1.0

1998 2,622,650 1.9 1.0

Table II.C3.—Continuing Disability Reviews, Fiscal Years 1998-2001

Fiscal year of

initial CDR

decision

CDRs conducted1

(In thousands)

1 Those conducted as part of the centralized CDR scheduling process.

Estimated ultimate cessations—after all appeals

(In thousands)

OASDI SSI only Total OASDI2

2 Including beneficiaries concurrently receiving OASDI and SSI benefits.

SSI only Total

2001 1,006 651 1,657 N/A N/A N/A

2000 1,110 637 1,747 19 57 76

1999 838 792 1,630 17 70 87

1998 967 389 1,356 23 47 70
5

2002 SSI Annual Report

As shown in table II.C4, CDRs have been very effective in reducing SSI program outlays. It is estimated

that $2.3 billion in lifetime Federal SSI program savings and another $1.4 billion in lifetime Federal Medicaid program savings will result from CDRs conducted in fiscal year 2000.

2. Corrective Action Plan (2002-2005)

Notwithstanding the recent progress of these various efforts, SSA recognizes that it can do more, and is

committed to providing ongoing management attention to the SSI program. To improve the management

of the SSI program, SSA is focusing on four areas—commitment to timely processing of CDRs, improved

prevention of overpayments, increased overpayment detection, and increased collection of debt. To this

end, SSA has developed a new Corrective Action Plan directed at the issues raised by GAO in its “highrisk” designation. The new Corrective Action Plan outlines the initiatives SSA intends to pursue, gives a

description of new tools SSA will provide, and pledges explicit executive accountability for results.

Over the fiscal year period 1996-2002, SSA’s ability to reduce the backlog of CDRs that were due, and to

get on a schedule of conducting all reviews as they come due in a timely manner, has been facilitated by

special administrative expense funding that was provided by Congress. Using that special funding, SSA

expects to become current in our processing of SSI CDRs by the end of 2002. Furthermore, even after the

expiration of the special CDR funding authority, our fiscal year 2003 budget submission anticipates that

we will continue to process all CDRs coming due in a timely fashion. This Fiscal Year 2003 Budget plan

provides tangible assurance of SSA’s commitment to maintaining the integrity of the SSI disability rolls.

The CDRs being conducted in 2002 together with those anticipated in the Fiscal Year 2003 Budget are

estimated to result in lifetime savings to the SSI program of over $4 billion.

The top two reasons for SSI overpayment errors are unreported wages and unreported bank accounts with

substantial assets. To prevent overpayments before they occur, SSA will test various cost-effective wage

reporting methods for workers at higher risk for wage-related overpayments, and will implement those

methods that work best. SSA also plans to electronically access the records of financial institutions to

determine if an applicant or recipient has unreported income or assets, and will use credit bureaus and

public databases to detect unreported income or resources.

Experience has proven that the most powerful tool SSA has to detect and prevent overpayments is to perform more redeterminations. SSA has sought funding to perform 2.25 million redeterminations in fiscal

year 2002. The Commissioner recently decided to provide an additional $21 million to increase the number of redeterminations of more complicated, error-prone cases conducted this year. And SSA is committed to conducting 2.45 million redeterminations in fiscal year 2003. That means that approximately one of

every three SSI recipients will have their eligibility reviewed at some time during each of these years. 

To better detect and prevent overpayments, online access to data will be increased to improve SSA’s ability to perform verification of documents and claimant allegations. Online access to such data will detect

and prevent overpayments better than traditional methods, will reduce administrative costs associated with

current paper bound processes (e.g., requesting certified copies), and will improve service by decreasing

processing time when verifications are required.

Table II.C4.—Estimated Present Value of Lifetime Program Savings Due to CDRs Conducted in Fiscal Years 1998-2000

(In millions)

Fiscal year of initial 

CDR decision OASDI SSI1

1 Includes SSI savings from CDRs initiated under OASDI for beneficiaries concurrently receiving OASDI and SSI benefits.

HI SMI Medicaid Total

2000 $1,545 $2,275 $495 $365 $1,350 $6,030

1999 1,245 2,795 490 360 1,210 6,100

1998 1,710 1,885 670 600 710 5,575
2002 SSI Annual Report

6

SSA also will increase its emphasis on collecting the debt detected. A new debt collection measurement

tool has been developed for fiscal year 2003 and beyond. The new tool will enable SSA to characterize

those portions of our debt portfolio that are subject to being collected and those that are not set up in a

repayment agreement, with the goal being to obtain repayment agreements from more debtors. Cross-program recovery of SSI debt from Social Security benefits has also been implemented. SSA is currently

developing regulations to institute administrative wage garnishment for public-and private-sector employees who have outstanding SSI overpayments.

In addition to the operational and management improvements, SSA will continue to assess potential

changes in SSI policies in order to reduce error. In particular, SSA will focus on simplification of the program as a way of preventing payment errors. Legislative proposals for simplifying the SSI program are

under development, and additional analysis will be done in order to assess the impact of other policy

changes on program costs and on beneficiaries.

SSA anticipates that successful implementation of the Corrective Action Plan will put into place policies,

tools, and incentives necessary for all SSA employees responsible for the SSI program to improve the

administration of this complex program, detect and recover overpayments, and greatly reduce fraud, waste

and abuse. SSA is continuing to make improvements by looking at new, innovative ways to make its

administration accurate, efficient, humane, and dignified. By its nature, this effort is an ongoing challenge.

3. Special Disability Workload

SSA has found that due to Agency oversights, it failed to recognize that approximately 500,000 past and

present SSI recipients had the necessary insured status to qualify for Social Security Disability Insurance

(DI) benefits. For the affected individuals, this could mean an increase in the combined monthly benefit

received from SSI and/or DI. SSA is working diligently to address these past oversights. As a result, there

will be significant increases in administrative costs over the near term for both the SSI and DI programs.

SSA has taken steps to correct these oversights on an ongoing basis for the future. This will mean that an

appropriate portion of a recipient’s monthly benefit will now be paid from the Disability Insurance Trust

Fund, rather than the General Fund of the Treasury. The net effect of this correction is to lower somewhat

future payments under the SSI program, and this effect is reflected in the estimates of future outlays shown

later in this report.

D. KEY RESULTS FROM THE 25-YEAR FORECASTS

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

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

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

continue throughout the projection period largely due to the growth in the U.S. population. By 2026,

the Federal SSI recipient population is estimated to reach 8.2 million. Expressed as a percentage of

the total U.S. population, the number of Federal SSI recipients is projected to grow slightly from

2.22 percent of the population in 2001 to 2.37 percent by 2026. 

 • Federal expenditures for SSI payments in calendar year 2002 are estimated to increase by $1.4 billion

to $31.9 billion, an increase of 4.6 percent from 2001 levels. In constant 2002 dollars, SSI program

outlays are projected to increase to $41.6 billion in 2026, a real increase of 1.1 percent per year. 

 • Furthermore, when compared to the Gross Domestic Product (GDP), Federal SSI expenditures are

projected to decline over time, from the current level of 0.30 percent of GDP in 2001 to 0.25 percent

of GDP by 2026.
7

2002 SSI Annual Report

III. THE SUPPLEMENTAL SECURITY INCOME PROGRAM 

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

aged, blind, or disabled individuals. In January 2002, 6.7 million individuals received Federally-administered monthly SSI benefits averaging $405. Of these, 6.4 million received monthly Federal SSI payments

averaging $374, and 2.5 million received monthly State supplementation payments averaging $123.

A. BACKGROUND

Entitlement programs for the aged, blind, or disabled have their roots in the original Social Security Act of

1935. That Act established an old-age social insurance program to be administered by the Federal Government and an old-age means-tested assistance program to be administered by the States. Similar programs

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

for individuals who were either ineligible for Social Security or whose benefits could not provide a basic

living.

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

Blind (AB), and Aid to the Permanently and Totally Disabled (APTD). Despite substantial Federal financing, these programs were essentially State programs. Federal law established only broad guidelines and

assistance. Federal financing was open-ended in the sense that the Federal Government would provide

matching funds to support whatever payment levels the States established, with no maximum or minimum

standards. Consequently, each State was responsible for setting its own standards for determining who

would get assistance and how much they would receive.

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

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

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

for the maintenance of needy family members.

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

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

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

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

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

B. THE BASIC PLAN

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

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

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

below specified levels;

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

them to reduce their dependency on public assistance;

 • An efficient and economical method of providing assistance;
2002 SSI Annual Report

8

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

and

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

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 rates1 and hence are increased annually according to changes

in the cost of living. Effective January 1, 2002, the Federal benefit rate is $545 a month for individuals and $817 a month for couples. The resource limit is $2,000 in countable resources for individuals

and $3,000 for couples.

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

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

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

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

expected to last or has lasted at least 12 continuous months or result in death and (1) if 18 or older prevents him/her from doing any substantial gainful activity2 or (2) if under 18 results in marked and

severe functional limitations.3 However, individuals for whom addiction to drugs or alcoholism is a

contributing factor material to the determination of their disabilities are not eligible for benefits.4 In

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

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

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

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

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

receiving SSI benefits on August 22, 1996, or be a qualified alien in one of the following categories:5

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

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

physical and/or mental duties which are productive—and gainful—i.e., performed for remuneration or profit. Generally earnings from work activity of over

$780 a month is evidence of ability to engage in SGA. If an SSI applicant is earning over $780 a month, he/she generally would not be considered disabled.

However, if an SSI recipient is earning over $780 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 $780 was increased from $740 effective January 1, 2002 (65 FR 82905). Increases in the SGA level in subsequent years will be based on increases in the national average wage index.

3 The definition of disability and blindness for individuals under age 18 reflects amendments made by Public Law 104-193, the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996. Prior to this, the law required a medically determinable physical or mental impairment of comparable severity

to that required for individuals 18 or older.

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

5 These standards reflect amendments made by Public Law 104-193, the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 as

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

permanently residing in the United States under color of law.
9

2002 SSI Annual Report

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

August 22, 1996;

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

States);

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

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

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

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

removal is withheld);

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

of 1980 (eligibility generally limited to the 7-year period after the date that entrant status is

granted);

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

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

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

spouses and dependent children; or

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

with, 40 qualifying quarters of earnings.

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

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

spouse’s or parent’s family) with whom they live, and who have an approved petition, or have a petition pending, setting forth a prima facie case for adjustment of their immigration status. A complete

list of noncitizens who are considered qualified aliens can be found in the Glossary under “Qualified

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

categories listed above.

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

been determined to be victims of severe forms of trafficking in persons in the United States1. Such

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

a determination is made that they are trafficking victims.2

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

categories, an individual must reside in the 50 States, the District of Columbia or the Northern Mariana Islands. An individual also must be physically present in the United States3 for 30 consecutive

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

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

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

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

3 Fifty States, the District of Columbia or the Northern Mariana Islands.
2002 SSI Annual Report

10

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

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

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

the U.S. Armed Forces. 

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

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

United States.

D. ASSISTANCE OF LAST RESORT

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

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

assistance.

1. Income

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

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

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

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

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

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

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

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

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

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

Federal benefit rate plus $20. 

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

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

significant because different exclusions apply to each type of income. 

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

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

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

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

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

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

1 See table IV.A2 for historical and estimated future Federal benefit rates.
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2002 SSI Annual Report

Income Exclusions1

The principal earned income exclusions are: 

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

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

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

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

The principal unearned income exclusions are: 

 • The first $20 per month,2

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

 • State or locally funded assistance based on need, 

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

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

2. Resources 

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

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

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

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

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

used for an individual’s food, clothing or shelter should be used in determining his/her eligibility and benefit amount. Not all resources an individual owns are counted. The value of an item may be totally

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

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

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

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

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

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

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

2 Any portion of this $20 amount not used to exclude unearned income may be used to exclude earned income.
2002 SSI Annual Report

12

Resource Exclusions1

The principal resource exclusions are:

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

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

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

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

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

 • Property essential to self-support; and 

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

3. Filing for Other Benefits 

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

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

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

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

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

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

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

of the notice to file for the benefits involved. 

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

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

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

ineligible for SSI unless one of the following exceptions applies:

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

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

more than 50 percent of the cost of care;

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

16 residents; 

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

6 months in any 9-month period);

1 A complete list of the SSI resource exclusions can be found in section V.B.
13

2002 SSI Annual Report

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

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

months); or

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

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

individual will return.

5. Personal Needs Allowance 

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

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

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

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

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

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

6. Deeming 

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

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

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

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

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

a. Spouse-to-Spouse Deeming 

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

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

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

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

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

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

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

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

b. Parent-to-Child Deeming 

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

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

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

age 183 who is living in the household. Deeming from an eligible parent to a child would continue if the

parent is absent from the household but the absence is temporary or is due solely to active duty assignment

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

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

are fewer than 100 of these cases remaining.

3 Under age 21, if a student.
2002 SSI Annual Report

14

as a member of the U.S. Armed Forces. If a child lives in a household in which all members are receiving

public assistance benefits, that child is not considered to be receiving any support and deeming would not

apply. 

c. Sponsor-to-Alien Deeming 

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

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

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

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

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

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

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

resources deemed to the noncitizen.

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

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

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

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

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

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

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

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

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

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

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

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

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

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

rehabilitation services and support for work efforts. 

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

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

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

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

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

immigrant had a visa issued before that date, the sponsor would sign an old 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

2002 SSI Annual Report

1. Earned Income Exclusion 

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

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

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

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

work.

2. Impairment-Related Work Expense Exclusion 

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

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

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

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

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

condition. 

3. Work Expenses of the Blind Exclusion 

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

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

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

necessary work expense of the worker. 

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

4. Student Earned Income Exclusion 

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

cost of educational training. Under current regulations, up to $1,320 of earned income per month but no

more than $5,340 per year may be excluded.1

5. Plan for Achieving Self-Support 

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

resources to get a specific type of job or to start a business. This may involve setting aside funds for education or vocational training. Funds can even be set aside to purchase work-related equipment or pay for

transportation related to the work goal. The income and resources that are set aside are excluded under the

SSI income and resources tests. 

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

clearly identifiable accounting for the funds which are set aside. The PASS is time limited and must be

approved by SSA. The individual must then follow the plan and negotiate revisions as needed. SSA moni1 Increased from $1,290 and $5,200, respectively, effective January 1, 2002 (65 FR 82905). Under current regulations this exclusion will be increased in

subsequent years based on changes in the cost of living.
2002 SSI Annual Report

16

tors the plans once approved by reviewing them periodically to ensure the individual’s progress towards

attaining the work goal. 

6. Special Provisions for Disabled People Who Work 

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

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

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

 • Continue to have the disabling condition,

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

counting rules, and

 • Meet all other nondisability requirements for SSI payment.

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

benefits.

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

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

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

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

Medicaid benefits. 

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

 • Have a disabling condition,

 • Need Medicaid in order to work,

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

which would be lost without assistance, 

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

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

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

of 1619 eligibility.) 

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

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

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

1619(b) status may continue. 
17

2002 SSI Annual Report

7. Vocational Rehabilitation/Ticket to Work Program

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

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

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

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

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

Ticket to Work and Self-Sufficiency program (Ticket to Work program) under which a disabled beneficiary may obtain vocational rehabilitation, employment and other support services from a qualified private

or public provider. Providers of such services in this new setting are referred to as “employment networks”

(ENs). In addition, the Ticket legislation provided for a new procedure for compensating the ENs under an

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

these services in order to assist the beneficiary in finding, entering, and retaining employment and reducing his/her dependence on cash benefits. Regulations issued by the Commissioner became effective January 2002.

The Ticket to Work program will be in operation nationwide by January 2004. Initially, 13 States participated, with tickets distributed in the first half of 2002. Twenty more States and the District of Columbia

are scheduled for the second phase in late 2002. The remaining States and territories are scheduled in the

final phase for 2003. Once the Ticket to Work program is implemented in a State, the traditional VR referral process described earlier will be eliminated in that State, and SSA will provide eligible individuals who

receive SSI benefits due to blindness or disability in such State with a Ticket to Work document (“ticket”).

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

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

program provides that as long as the beneficiary is “using a ticket” as defined by the Commissioner, SSA

will not initiate a continuing disability review. Individuals not eligible for a ticket may still request services from a State VR agency, which must decide whether they are eligible for services under the Rehabilitation Act of 1973.

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

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

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

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

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

program, or another approved VR program, and SSA determines that continuation or completion of the

program will increase the likelihood that they will be permanently removed from the SSI rolls. SSI benefits and Medicaid generally continue until the rehabilitation services are completed or until the individual

ceases to participate in the program.

8. Expedited Reinstatement

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

request expedited reinstatement of his/her SSI benefits without filing a new application. To qualify for
2002 SSI Annual Report

18

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.

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

previously eligible for SSI as a spouse.

F. ADMINISTRATION OF THE SSI PROGRAM

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

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

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

manner.

1. Application Process

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

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

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

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

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

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

obtaining the necessary proofs.

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

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

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

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

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

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

medical eligibility factors.

2. Determinations of Eligibility

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

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

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

second month preceding the month for and in which the benefit is paid (a method called retrospective
19

2002 SSI Annual Report

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

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

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

every 1 to 6 years depending on their specific situation. 

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

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

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

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

following circumstances:

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

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

likely to improve;

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

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

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

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

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

3. Payment of Benefits

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

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

or holiday. While SSA strongly encourages all SSI beneficiaries to receive their monthly benefits by direct

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

directly to a bank. Monthly benefit payments include both the Federal SSI and State amounts if the recipient lives in a State in which SSA administers the State supplementary payment. (See section III.G.) Eligible couples generally receive their monthly benefits in one payment.

4. Representative Payees 

When SSI recipients are incapable of managing their benefits, SSA appoints representative payees for

them, and their SSI benefits are sent to the representative payees. In many cases the representative payee is

a spouse, a parent, or other close relative who will act in the recipient’s best interest. In some cases, an

SSA-approved organization may be appointed and some organizations have been authorized by SSA to

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

benefit amount or a specified amount ($30 a month in 2002 ($57 a month for disabled recipients who also

have a drug addiction or alcoholism condition)).

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

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

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

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

rate, the representative payee is required to establish a separate (dedicated) account at a financial institu1 Medical review cannot be initiated while the SSI recipient is “using a ticket” under the Ticket to Work program.
2002 SSI Annual Report

20

tion to maintain the retroactive payment. Expenditures from the account must be used primarily for certain

expenses related to the child’s impairment.

5. Appeal Rights 

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

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

6. Attorney Fees 

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

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

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

provide valuable service to claimants).

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

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

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

retroactive payment or $5,300 1. A representative cannot charge or receive more than the fee amount

authorized. The SSI program differs from the Social Security program in that amounts cannot be withheld

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

fees directly to their attorneys.

7. Advance Payments 

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

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

their SSI status. 

a. Emergency Advance Payments 

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

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

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

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

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

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

b. Presumptive Disability or Blindness 

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

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

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

2002 SSI Annual Report

G. STATE1 SUPPLEMENTATION

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

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

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

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

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

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

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

1. Optional State Supplementary Payment Programs 

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

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

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

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

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

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

2. Mandatory State Supplementary Payment Programs 

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

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

constitutional bar against mandatory State supplementation. Because of the increases in Federal benefits

over the years, there are few individuals who continue to receive mandatory State supplementary payments.

3. Administration of State Supplementary Payments 

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

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

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

required to pay SSA a $8.50 fee for each supplementary payment issued in fiscal year 2002. Fees are projected to rise in succeeding fiscal years, based on changes in the cost of living.

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

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

that they may establish additional income exclusions. 

4. Mandatory Passalong 

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

State supplementary payments. However, public reaction to States reducing their supplementary payment

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

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

assistance programs.
2002 SSI Annual Report

22

amounts when SSI payments were increased led Congress to mandate that States pass along SSI benefit

increases resulting from cost-of-living adjustments. 

To meet the passalong requirement, a State may either maintain each State payment level from year-toyear—the “payment levels” method—or it may spend the same amount of money, in the aggregate, that it

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

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

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

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

programs in 1973.

H. COORDINATION WITH OTHER PROGRAMS

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

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

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

1. Windfall Offset 

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

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

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

and SSI payments were paid for the same period. 

2. Medicaid Determinations 

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

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

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

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

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

33 States. 

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

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

 • Cost-of-living adjustments,

 • Actuarial increases in widow(er)s benefits,

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

 • Increases in disabled adult child benefits. 
23

2002 SSI Annual Report

3. Food Stamp Applications 

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

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

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

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

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

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

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

Security offices forward the food stamp applications and any supporting documents to the local food

stamp offices within 1 day of taking the application. Eligibility is determined by the food stamp office. 

4. Interim Assistance Reimbursement 

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

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

pending, or the individual’s SSI benefits were suspended and subsequently reinstated (the interim period).

Under these interim assistance reimbursement agreements, if the individual has given SSA written authorization, SSA sends an individual’s first SSI benefit check relating to the interim period to the State or local

jurisdiction that had provided the interim assistance. The State then deducts the amount it is owed and is

required to forward the remainder to the claimant within 10 days.2 Thirty-eight States have interim assistance agreements with SSA. 

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

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

institution accounts for the children. In all other cases where the retroactive benefits exceed a certain amount, SSA reimburses the State, then pays the

remainder in installments to the recipient or his/her representative payee.
2002 SSI Annual Report

24

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

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

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

4 Mandatory minimum State supplementation program is Federally-administered.

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

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

 United States and 

District of Columbia

Optional State program—

Administered by:

Method of mandatory 

passalong of benefit 

increases from 

cost-of-living adjustments

Medicaid eligibility 

determination—

Interim 

assistance 

reimbursement 

agreement 

with SSA

Based on: Agreement 

with SSA 

to 

determine 

State eligibility

Federal 

(SSA)

Federal 

& State

“Payment

levels”

“Total

expenditures”

Federal 

criteria

State

criteria

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

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

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

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

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

Total number of 

States . . . . . . . . . . . 29 11 5 40 10 40 11 33 38
25

2002 SSI Annual Report

IV. ESTIMATES OF PROGRAM PARTICIPATION AND FEDERAL EXPENDITURES UNDER 

THE SUPPLEMENTAL SECURITY INCOME PROGRAM, 2002-26

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

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

SSI program participation will depend on a variety of difficult-to-predict factors including the performance of national and local economies, distribution of personal income within that macroeconomic framework, the prevalence of disability in the general population, and the determination of disability as defined

by the Social Security Act. 

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

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

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

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

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

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

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

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

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

improvements.

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

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

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

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

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

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

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

and provided us with an enhanced ability to analyze the age structure of the historical and forecasted disabled adult population. In the 3 years since the 1999 Annual Report, we have analyzed certain age subgroups in greater detail, with the result that our longer term assumptions with respect to the growth in the

SSI population better reflect the growth patterns to be expected of the respective age groups. As a consequence, the current forecasts presented in this section suggest slightly faster growth among disabled

adults. In addition, for this year’s report we have begun to incorporate the results of recent research on

mortality levels among the population receiving SSI.

The presentation of forecast results in the remainder of this section corresponds to our revised model

structure. In particular, all tables present SSI population information by selected age groups, rather than

groups based exclusively on SSI recipient categories. Where certain recipient categories have overlapping

age distributions, recipient category totals are still shown.

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

recovery from a qualifying disability.
2002 SSI Annual Report

26

A. DEMOGRAPHIC AND ECONOMIC ASSUMPTIONS

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

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

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

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

projections and CPI assumptions underlying the intermediate estimates prepared for the 2002 Annual

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

Trust Funds.1 Detailed discussion of these demographic and economic parameters is presented in sections

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

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

projections discussed in the next section. 

1 House Document 107-196, published April 9, 2002.

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

2002 SSI Annual Report

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

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

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

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

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

also applied to the Federal benefit rates, either in place of or in addition to such automatic adjustments.

The history of legislation affecting the Federal benefit rates is presented in table V.A1. Table IV.A2 presents a complete history of the cost-of-living adjustment factors and Federal benefit rates since the inception of the program, along with projections of such amounts consistent with the economic assumptions

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

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

Intermediate Assumptions of the 2002 OASDI Trustees Report, as of July 1, 1974-2026

[In thousands]

Year

Age groups1

1 Age as of last birthday.

Total

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

Historical data:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

1990 .................. 67,634 72,868 53,979 33,664 18,443 13,593 260,181

1991 .................. 68,646 72,035 55,756 33,906 18,609 14,016 262,967

1992 .................. 69,662 71,130 57,427 34,354 18,791 14,420 265,785

1993 .................. 70,597 70,252 59,016 34,948 18,936 14,794 268,543

1994 .................. 71,415 69,402 60,641 35,538 19,024 15,138 271,157

1995 .................. 72,081 68,603 62,340 36,077 19,053 15,496 273,649

1996 .................. 72,644 67,925 63,753 36,956 18,981 15,882 276,141

1997 .................. 73,083 67,416 64,715 38,323 18,856 16,234 278,627

1998 .................. 73,394 67,045 65,519 39,806 18,708 16,533 281,005

1999 .................. 73,661 66,802 66,270 41,224 18,583 16,789 283,329

2000 .................. 73,963 66,745 66,874 42,679 18,515 17,001 285,776

2001 .................. 74,323 66,851 67,255 44,230 18,480 17,181 288,320

Estimated:

2002 .................. 74,686 67,059 67,383 45,865 18,467 17,352 290,813

2003 .................. 74,994 67,348 67,348 47,547 18,513 17,517 293,267

2004 .................. 75,258 67,632 67,244 49,285 18,623 17,658 295,701

2005 .................. 75,498 67,860 67,117 51,073 18,792 17,779 298,119

2006 .................. 75,692 68,171 66,857 52,871 19,069 17,868 300,529

2007 .................. 75,798 68,759 66,313 54,602 19,556 17,907 302,935

2008 .................. 75,813 69,635 65,534 56,214 20,231 17,915 305,342

2009 .................. 75,804 70,617 64,669 57,823 20,900 17,939 307,752

2010 .................. 75,844 71,556 63,785 59,498 21,476 18,005 310,164

2011................... 75,965 72,392 62,937 60,959 22,239 18,086 312,578

2012 .................. 76,160 73,094 62,194 61,984 23,368 18,190 314,990

2013 .................. 76,412 73,663 61,593 62,830 24,552 18,345 317,395

2014 .................. 76,703 74,090 61,191 63,618 25,648 18,539 319,789

2015 .................. 77,004 74,399 61,043 64,214 26,740 18,768 322,169

2016 .................. 77,300 74,662 61,118 64,567 27,822 19,061 324,530

2017 .................. 77,597 74,899 61,341 64,694 28,859 19,481 326,869

2018 .................. 77,832 75,202 61,601 64,673 29,853 20,022 329,183

2019 .................. 78,011 75,576 61,806 64,593 30,916 20,566 331,467

2020 .................. 78,202 75,894 61,976 64,495 32,086 21,064 333,718

2021 .................. 78,400 76,163 62,216 64,278 33,156 21,718 335,931

2022 .................. 78,598 76,404 62,651 63,793 33,988 22,668 338,102

2023 .................. 78,789 76,593 63,312 63,087 34,760 23,685 340,225

2024 .................. 78,964 76,690 64,131 62,302 35,564 24,646 342,297

2025 .................. 79,119 76,694 65,042 61,504 36,344 25,612 344,315

2026 .................. 79,248 76,671 65,955 60,743 37,058 26,600 346,274
2002 SSI Annual Report

28

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

January 1 of the year.

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

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

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

4 Ad hoc increases as specified in the law.

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

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

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

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

Intermediate Assumptions of the 2002 OASDI Trustees Report, 1974-2026 

Year

Benefit rate

increase 1

Federal benefit rate

Individual Couple Essential person 2

Historical data:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Estimated:

2003....................................................... 1.3 552.00 828.00 276.00

2004....................................................... 2.6 566.00 849.00 283.00

2005....................................................... 2.8 582.00 873.00 291.00

2006....................................................... 3.0 599.00 899.00 300.00

2007....................................................... 3.0 617.00 926.00 309.00

2008....................................................... 3.0 636.00 954.00 318.00

2009....................................................... 3.0 655.00 983.00 328.00

2010....................................................... 3.0 675.00 1,012.00 338.00

2011....................................................... 3.0 695.00 1,043.00 348.00

2012....................................................... 3.0 716.00 1,074.00 358.00

2013....................................................... 3.0 737.00 1,106.00 369.00

2014....................................................... 3.0 759.00 1,139.00 380.00

2015....................................................... 3.0 782.00 1,174.00 392.00

2016....................................................... 3.0 806.00 1,209.00 404.00

2017....................................................... 3.0 830.00 1,245.00 416.00

2018....................................................... 3.0 855.00 1,282.00 428.00

2019....................................................... 3.0 881.00 1,321.00 441.00

2020....................................................... 3.0 907.00 1,360.00 454.00

2021....................................................... 3.0 934.00 1,401.00 468.00

2022....................................................... 3.0 962.00 1,443.00 482.00

2023....................................................... 3.0 991.00 1,487.00 496.00

2024....................................................... 3.0 1,021.00 1,531.00 511.00

2025....................................................... 3.0 1,051.00 1,577.00 527.00

2026....................................................... 3.0 1,083.00 1,625.00 543.00
29

2002 SSI Annual Report

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

B. NUMBERS OF PARTICIPANTS IN THE SSI PROGRAM

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

this section present these population totals by selected age groupings. This is in contrast with annual

reports prior to 1999 which presented forecast results exclusively by recipient categories of aged, blind or

disabled adults, and blind or disabled children. Since these recipient categories are in large part based on

age, the additional age breakouts shown in this year’s report can be viewed as a refinement of the information presented in the first two SSI Annual Reports. The following paragraphs discuss a few of the subtle

points in the translation between the previous recipient categories and current age categories.

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

on meeting the age-65-or-older requirement for assistance, and the income and resource limits applicable for adults. In December 2001, there were 1.264 million aged recipients of Federally-administered SSI payments. 

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

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

resource limits applicable for adults. After attainment of age 65, these individuals generally continue

to be classified as blind or disabled adults (rather than aged). In December 2001, there were

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

712 thousand disabled and 18 thousand blind recipients aged 65 or older.

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

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

as blind or disabled adults at age 18. However, students aged 18 to 21 are still classified as blind or

disabled children, but only for purposes of applying a special student earned income exclusion.1 The

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

For example, in December 2001, there were 892 thousand blind or disabled child recipients of Federally-administered SSI payments, including 11 thousand students aged 18 to 21. Since these students

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

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

conform to this new standard.

Much of the historical age-specific information presented in the discussion that follows had to be reconstructed using samples of various sizes. Most age-specific splits prior to 1980 have not yet been developed, but may be constructed for future reports as we develop more complete retrospective data. Historical

age breakouts may be revised in future reports as more complete data become available.

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

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

applications received in 2001 were about 3.3 percent higher than were received in 2000. The actual result

1 Parent-to-child deeming ends in all cases when an individual turns 18.
2002 SSI Annual Report

30

for 2001 was almost 2.3 percent higher than estimated for 2001 in the 2001 Annual Report. The higher

than anticipated growth in 2001 is not yet completely understood, but it was very likely related to the

downturn in the economy experienced over that time. Our short-term projections of numbers of applications reflect a continuation of that higher than previously expected rate of growth, but returning to more

modest levels of growth as the economy is assumed to recover. Longer term trends in applications are estimated to continue to grow from current levels roughly in line with overall population growth, as was

assumed in last year’s report.

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

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

3 Totals estimated using a 1-percent sample.

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

5 Fewer than 500.

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

Table IV.B1.—SSI Federally-Administered Applications,1 Calendar Years 1974-2026

[In thousands]

Calendar year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 3 . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,075 325 1,400

1976 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 984 254 1,239

1977 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,040 259 1,298

1978 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,046 258 1,304

1979 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,090 262 1,352

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2001 . . . . 350 346 501 353 4 5/ 98 35 1,555 133 1,688

Estimated:

2002 . . . . 387 388 541 396 5 5/ 98 35 1,716 133 1,849

2003 . . . . 390 396 544 413 5 5/ 100 36 1,747 136 1,883

2004 . . . . 386 391 536 424 5 5/ 102 36 1,742 138 1,881

2005 . . . . 379 383 524 431 5 5/ 104 37 1,723 141 1,864

2006 . . . . 372 375 509 439 5 5/ 106 37 1,702 144 1,845

2007 . . . . 365 369 492 448 6 5/ 110 37 1,679 147 1,827

2008 . . . . 358 362 473 457 7 5/ 111 37 1,657 148 1,805

2009 . . . . 354 360 459 466 7 5/ 110 37 1,645 147 1,792

2010 . . . . 354 365 452 477 7 5/ 111 36 1,656 147 1,803

2011 . . . . 355 369 447 487 8 5/ 117 36 1,666 153 1,819

2012 . . . . 357 372 442 494 9 5/ 124 36 1,673 160 1,833

2013 . . . . 358 375 438 501 8 5/ 127 37 1,679 164 1,843

2014 . . . . 359 376 435 506 9 5/ 132 37 1,685 169 1,854

2015 . . . . 360 377 434 509 9 5/ 137 37 1,690 174 1,864

2016 . . . . 362 379 434 510 9 5/ 142 38 1,694 180 1,874

2017 . . . . 363 380 436 510 9 5/ 146 39 1,698 185 1,882

2018 . . . . 364 382 437 509 10 5/ 150 40 1,701 190 1,891

2019 . . . . 365 384 438 507 10 5/ 155 41 1,703 197 1,900

2020 . . . . 366 386 439 505 10 5/ 160 42 1,706 203 1,908

2021 . . . . 366 387 441 502 10 5/ 165 44 1,708 209 1,917

2022 . . . . 367 389 445 497 11 5/ 169 46 1,709 215 1,924

2023 . . . . 368 390 451 490 11 5/ 172 48 1,709 220 1,930

2024 . . . . 369 390 457 483 11 5/ 176 50 1,710 226 1,936

2025 . . . . 369 389 464 477 11 5/ 179 52 1,710 231 1,941

2026 . . . . 369 389 470 471 11 5/ 182 54 1,711 235 1,946
31

2002 SSI Annual Report

The adjudication of these applications involves an evaluation of levels of income and resources available

to the applicants, as well as other eligibility factors including marital and citizenship status and living

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

done by the appropriate State Disability Determination Service. An unfavorable disability determination

may then be appealed by the applicant through several administrative levels of appeal. If all administrative

levels of appeal are exhausted, the applicant may in turn carry his/her appeal to the Federal courts. Data on

recent historical experience for this disability decision process are presented in section V.C. 

Table IV.B2 and figure IV.B2 present historical and projected numbers of persons who are ultimately

awarded SSI eligibility as a result of this decision process. In that table and graph, we are essentially

counting individuals as being awarded in the first month that they move into SSI payment status. For this

reason, we refer to these individuals as “new entrants” rather than “awards.”1 The numbers of new

entrants into SSI payment status increased in 1998 and again slightly in 1999 following a period of decline

ending in 1997. In 2000, the numbers of new entrants experienced a small decrease but resumed growing

in 2001 with an increase of 3.2 percent over the 2000 level. As mentioned earlier in the discussion of

applications, this increase is likely related to the poor performance of the economy in 2001. As with applications, our projections in the near term assume a somewhat higher rate of growth than experienced in the

years just prior to 2001. Over the longer term the numbers of new entrants are estimated to increase gradually in line with projected growth in applications.

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

[In thousands]

1 In addition, these counts differ slightly from other similar totals identified as “awards” and published by the Office of Research, Evaluation, and Statistics

(ORES) in the Annual Statistical Supplement to the Social Security Bulletin. The ORES totals are similar in concept to those used in this report, but differ

slightly due to the timing of the action being tabulated. For example, ORES does not count a disability benefit as being awarded until the disability decision

is made. In contrast, under the procedures used in this report, individuals first coming on the SSI rolls through a finding of presumptive disability would be

counted as a “new entrant” in the first month of presumptive disability payment.

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
2002 SSI Annual Report

32

1 Represents period in which first payment was made, not date of first eligibility for payments.

2 Historical totals estimated based on 1-percent or 10-percent sample data.

3 Totals for 1974 include recipients converted from previous State programs as well as new entrants to the SSI program during 1974. 4 Age-specific information for these years not yet available.

5 Fewer than 500.

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

Table IV.B2.—SSI Federally-Administered New Entrants, Calendar Years 1974-2026

[In thousands]

Calendar year 1

Blind or disabled, by age group Aged, by age group Totals 2

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 3. . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 1,919 2,479 4,398

1975 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 584 347 931

1976 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 452 218 669

1977 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 429 209 637

1978 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 370 193 563

1979 . . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 330 169 499

1980 . . . . . 41 92 61 142 4 5/ 125 59 341 184 524

1981 . . . . . 37 77 49 106 3 5/ 80 37 272 117 389

1982 . . . . . 38 63 51 90 4 5/ 72 31 245 103 348

1983 . . . . . 47 88 62 117 3 5/ 95 51 317 146 463

1984 . . . . . 47 109 78 142 4 5/ 131 78 380 209 589

1985 . . . . . 48 104 80 148 4 5/ 106 46 384 152 536

1986 . . . . . 55 127 109 153 5 5/ 110 51 449 161 610

1987 . . . . . 48 119 106 157 5 5/ 116 52 435 167 602

1988 . . . . . 50 101 108 146 5 1 112 56 412 167 579

1989 . . . . . 48 113 115 155 5 5/ 127 62 436 189 625

1990 . . . . . 76 136 134 182 5 5/ 149 66 533 215 748

1991 . . . . . 126 146 172 200 6 5/ 139 54 650 193 844

1992 . . . . . 221 199 221 233 6 5/ 133 48 881 181 1,062

1993 . . . . . 235 194 221 225 6 5/ 136 49 881 185 1,066

1994 . . . . . 204 164 207 215 6 5/ 116 42 796 157 953

1995 . . . . . 177 147 207 218 5 5/ 105 36 755 141 895

1996 . . . . . 145 134 193 203 6 1 93 35 681 128 809

1997 . . . . . 116 111 171 178 4 5/ 68 25 580 93 673

1998 . . . . . 135 117 181 194 7 1 78 30 634 108 742

1999 . . . . . 140 114 186 195 5 5/ 88 33 640 120 760

2000 . . . . . 145 112 180 191 5 5/ 84 31 633 115 748

2001 . . . . . 157 121 185 198 4 5/ 79 28 665 107 772

Estimated:

2002 . . . . . 171 130 192 211 5 5/ 79 28 708 107 815

2003 . . . . . 176 137 201 228 5 5/ 81 28 747 110 857

2004 . . . . . 176 137 202 236 5 5/ 83 29 756 112 868

2005 . . . . . 170 133 196 238 5 5/ 84 29 742 114 856

2006 . . . . . 167 131 191 244 5 5/ 86 30 738 116 854

2007 . . . . . 164 129 185 249 6 5/ 89 30 733 119 852

2008 . . . . . 161 126 178 254 7 5/ 89 30 726 119 845

2009 . . . . . 159 124 172 257 6 5/ 88 29 719 118 836

2010 . . . . . 159 125 168 261 6 5/ 89 29 720 118 838

2011 . . . . . 159 125 165 265 7 5/ 94 29 722 123 844

2012 . . . . . 160 126 163 268 7 5/ 99 29 725 128 853

2013 . . . . . 161 127 161 272 7 5/ 102 29 728 131 859

2014 . . . . . 161 127 160 275 7 5/ 106 29 731 135 866

2015 . . . . . 162 127 160 277 8 5/ 109 30 734 139 873

2016 . . . . . 162 128 160 278 8 5/ 113 30 736 144 880

2017 . . . . . 163 128 160 279 8 5/ 117 31 738 148 885

2018 . . . . . 163 129 161 278 8 5/ 120 32 739 152 891

2019 . . . . . 164 130 161 277 9 5/ 124 33 740 157 898

2020 . . . . . 164 130 161 277 9 5/ 128 34 741 162 903

2021 . . . . . 164 131 162 275 9 5/ 132 35 742 167 909

2022 . . . . . 165 132 164 273 9 5/ 135 37 742 172 914

2023 . . . . . 165 132 166 270 9 5/ 138 38 742 176 918

2024 . . . . . 165 132 168 266 9 5/ 141 40 741 181 922

2025 . . . . . 165 132 171 263 10 5/ 144 41 741 185 926

2026 . . . . . 165 132 173 259 10 5/ 146 43 740 189 929
33

2002 SSI Annual Report

Some of the persons receiving SSI benefits in a year will be removed from current-payment status during

the year because of death or the loss of SSI eligibility. The loss of eligibility can occur either as the result

of an evaluation of the individual’s nonmedical factors of eligibility, including income and resources, or

due to a determination that he/she is no longer disabled as defined under the Social Security Act. For

example, disabled children, upon attainment of age 18, lose eligibility if they do not qualify for benefits

under the disabled adult eligibility criteria. For purposes of this presentation, we refer to the net reduction

in the number of SSI recipients in payment status during a period as the number of SSI terminations for

that period. 

In the following tables, we have separated the numbers of people moving out of payment status into those

leaving due to death (table IV.B3), and those leaving for all other reasons (table IV.B4). Table IV.B5 and

figure IV.B3 present historical and projected numbers of total terminations by calendar year. 

Actual experience for terminations in 2001 was 2.7 percent lower than anticipated in the 2001 Annual

Report. Terminations due to death were slightly higher than anticipated, but terminations due to reasons

other than death were 4.4 percent lower than estimated last year.

Some historical details on income and resource redeterminations and the results of continuing disability

reviews are presented in section V.D. Section V.E presents information on certain incentive programs

intended to encourage disabled SSI recipients to return to work.

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

[In thousands]

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

Historical Estimated

75 or older
2002 SSI Annual Report

34

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

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

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

Table IV.B3.—SSI Federally-Administered Terminations Due to Death, Calendar Years 1974-2026

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 65 147 212

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 64 137 201

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 65 137 203

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 67 126 193

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 67 121 189

1980 . . . . 3 5 9 31 22 1 27 100 71 127 198

1981 . . . . 3 5 8 31 24 2 21 92 73 112 186

1982 . . . . 3 4 8 28 21 2 16 80 65 96 161

1983 . . . . 3 6 8 25 21 3 15 79 65 94 158

1984 . . . . 3 4 9 29 18 5 13 83 67 96 163

1985 . . . . 2 6 10 29 24 6 17 84 77 101 178

1986 . . . . 2 8 12 28 22 8 15 83 80 98 178

1987 . . . . 3 8 13 30 23 10 15 82 87 97 184

1988 . . . . 5 8 14 31 25 12 16 81 95 97 191

1989 . . . . 3 8 16 33 23 12 15 78 95 93 187

1990 . . . . 4 9 18 36 22 14 16 75 103 92 194

1991 . . . . 4 9 20 39 23 17 17 74 112 91 203

1992 . . . . 4 11 22 38 22 15 16 69 111 84 195

1993 . . . . 6 13 27 41 23 17 16 72 127 88 215

1994 . . . . 6 14 27 41 23 17 16 69 127 85 212

1995 . . . . 6 13 30 43 24 18 16 65 135 81 216

1996 . . . . 7 12 30 44 24 18 16 67 135 83 218

1997 . . . . 5 10 24 43 24 19 15 64 127 79 206

1998 . . . . 5 9 24 43 25 20 14 64 127 78 205

1999 . . . . 5 9 25 45 25 21 13 63 131 76 207

2000 . . . . 5 8 27 46 25 21 12 61 132 73 205

2001 . . . . 5 8 28 47 25 22 11 60 135 71 207

Estimated:

2002 . . . . 6 9 28 49 26 20 11 60 136 71 207

2003 . . . . 6 9 29 51 27 21 11 60 143 72 214

2004 . . . . 6 9 29 54 27 21 11 60 146 71 217

2005 . . . . 6 9 29 56 28 22 11 59 150 70 220

2006 . . . . 6 9 29 58 29 22 11 59 153 69 222

2007 . . . . 6 9 29 60 30 22 11 58 156 69 225

2008 . . . . 6 9 29 62 30 22 11 58 159 69 227

2009 . . . . 6 10 28 64 31 23 11 57 161 68 230

2010 . . . . 6 10 27 66 32 23 11 57 164 68 232

2011 . . . . 6 10 27 67 33 23 11 56 166 67 234

2012 . . . . 6 10 26 68 34 24 11 56 168 67 236

2013 . . . . 6 10 26 69 35 24 12 55 171 67 238

2014 . . . . 6 10 25 70 37 25 12 55 173 67 240

2015 . . . . 7 10 25 70 38 25 12 54 175 67 242

2016 . . . . 7 10 25 71 39 26 13 54 177 67 244

2017 . . . . 7 10 25 71 40 27 13 54 179 67 246

2018 . . . . 7 10 25 71 41 27 14 54 181 68 249

2019 . . . . 7 10 25 71 42 28 14 54 183 68 251

2020 . . . . 7 10 25 71 44 28 15 54 185 69 253

2021 . . . . 7 11 25 70 45 29 15 54 186 70 256

2022 . . . . 7 11 25 69 46 30 16 55 188 71 259

2023 . . . . 7 11 25 69 47 31 16 56 189 72 262

2024 . . . . 7 11 26 68 48 32 16 57 191 74 264

2025 . . . . 7 11 26 67 49 33 17 58 192 75 267

2026 . . . . 7 11 26 66 50 34 17 60 193 77 270
35

2002 SSI Annual Report

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

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

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

Table IV.B4.—SSI Federally-Administered Terminations Due to Reasons Other Than Death, Calendar Years 1974-2026

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 221 180 401

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 306 240 546

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 265 168 433

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 241 150 391

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 234 144 378

1980 . . . . 19 48 43 80 23 1 44 77 214 121 334

1981 . . . . 17 43 39 72 21 1 49 86 192 134 326

1982 . . . . 19 48 43 79 23 1 50 87 212 137 348

1983 . . . . 18 43 36 63 14 1 25 61 175 86 261

1984 . . . . 13 51 37 77 21 1 37 60 200 98 298

1985 . . . . 11 42 37 68 13 2 23 54 172 77 249

1986 . . . . 18 49 47 73 16 3 34 60 206 94 300

1987 . . . . 19 51 48 75 17 3 32 57 214 89 302

1988 . . . . 19 52 51 74 15 5 33 59 216 93 309

1989 . . . . 19 55 52 72 16 4 33 58 218 91 308

1990 . . . . 14 52 57 73 17 8 40 68 221 108 330

1991 . . . . 20 50 70 84 18 5 33 58 248 91 339

1992 . . . . 39 68 94 103 19 8 34 56 329 90 419

1993 . . . . 34 73 97 106 22 8 37 55 340 92 433

1994 . . . . 41 73 101 107 18 8 32 49 348 81 429

1995 . . . . 47 81 111 115 20 7 32 48 382 80 461

1996 . . . . 47 89 128 119 21 8 29 49 413 78 491

1997 . . . . 128 105 147 115 18 8 24 40 522 64 586

1998 . . . . 67 89 112 110 19 8 22 38 406 61 466

1999 . . . . 119 111 120 116 20 9 24 43 495 68 563

2000 . . . . 84 99 111 112 22 9 22 38 437 61 498

2001 . . . . 65 95 111 118 20 9 22 38 418 60 478

Estimated:

2002 . . . . 70 99 121 125 20 8 20 37 443 57 500

2003 . . . . 74 107 127 131 20 8 20 37 467 58 525

2004 . . . . 77 106 125 136 20 8 20 37 473 57 530

2005 . . . . 80 106 123 140 21 9 19 37 480 56 536

2006 . . . . 79 107 123 146 21 9 19 37 485 56 541

2007 . . . . 76 109 122 151 22 9 20 37 489 56 545

2008 . . . . 70 110 120 157 23 9 20 37 488 56 544

2009 . . . . 66 111 118 162 24 9 20 37 490 57 546

2010 . . . . 62 113 116 166 24 9 20 36 491 57 548

2011 . . . . 61 115 113 170 25 9 21 36 493 57 549

2012 . . . . 62 115 111 172 26 10 22 35 496 57 553

2013 . . . . 63 116 110 174 27 10 22 35 499 57 557

2014 . . . . 64 117 108 176 28 10 23 35 502 58 560

2015 . . . . 64 118 107 177 29 10 24 34 505 58 563

2016 . . . . 64 119 107 177 30 10 25 34 507 59 566

2017 . . . . 64 120 107 177 31 11 25 34 510 60 569

2018 . . . . 65 121 107 176 32 11 26 34 512 61 573

2019 . . . . 65 123 107 176 33 11 27 34 514 62 576

2020 . . . . 65 124 107 175 34 11 28 35 516 63 579

2021 . . . . 65 125 108 174 34 12 29 35 517 64 581

2022 . . . . 65 126 109 172 35 12 30 36 518 66 584

2023 . . . . 65 127 110 170 36 12 30 37 519 67 586

2024 . . . . 65 127 111 167 37 13 31 37 520 69 589

2025 . . . . 65 128 113 165 37 13 32 38 521 70 591

2026 . . . . 65 128 115 163 38 14 33 39 522 72 594
2002 SSI Annual Report

36

1 Historical totals estimated based on 1-percent or 10-percent sample data.

2 Data not available.

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

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

Table IV.B5.—SSI Federally-Administered Terminations for All Reasons, Calendar Years 1974-2026

[In thousands]

Calendar year

Blind or disabled, by age group Aged, by age group Totals 1

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/

1975 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 287 326 613

1976 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 371 377 748

1977 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 330 305 636

1978 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 308 276 584

1979 . . . . 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 301 265 566

1980 . . . . 22 53 52 111 45 2 70 177 284 248 532

1981 . . . . 20 48 47 103 45 3 69 177 266 246 512

1982 . . . . 21 52 51 107 43 2 65 168 277 233 510

1983 . . . . 21 49 44 87 34 4 39 140 240 180 419

1984 . . . . 16 55 46 106 39 6 50 144 267 194 461

1985 . . . . 13 47 47 97 37 8 40 138 249 178 427

1986 . . . . 21 58 59 101 38 11 48 143 287 192 478

1987 . . . . 22 59 61 106 40 13 47 138 301 185 486

1988 . . . . 24 60 65 105 39 18 49 140 311 189 500

1989 . . . . 22 63 69 105 39 15 47 136 312 183 496

1990 . . . . 18 61 75 109 39 22 56 144 324 200 524

1991 . . . . 25 60 90 123 40 22 50 132 360 182 542

1992 . . . . 42 78 115 140 41 23 50 125 440 175 614

1993 . . . . 40 86 124 148 45 24 54 127 467 181 648

1994 . . . . 47 87 128 148 41 24 48 118 475 166 642

1995 . . . . 54 94 142 158 44 25 47 113 517 160 677

1996 . . . . 54 101 158 163 45 27 45 116 548 161 710

1997 . . . . 133 116 172 159 43 26 39 105 648 143 792

1998 . . . . 73 98 136 153 44 29 36 102 533 138 671

1999 . . . . 124 120 146 161 45 31 38 106 626 144 770

2000 . . . . 89 107 138 159 46 29 35 99 569 134 703

2001 . . . . 70 103 139 166 45 31 34 98 554 132 685

Estimated:

2002 . . . . 76 107 148 174 45 29 31 96 579 128 707

2003 . . . . 80 116 156 183 47 29 31 98 610 129 739

2004 . . . . 83 115 154 190 47 30 31 97 619 128 747

2005 . . . . 86 116 153 196 48 30 30 96 629 126 756

2006 . . . . 85 117 153 204 50 31 30 96 638 126 764

2007 . . . . 82 118 151 211 52 31 30 95 645 125 770

2008 . . . . 76 119 149 218 53 31 30 95 647 125 772

2009 . . . . 72 121 146 225 55 32 31 94 651 125 776

2010 . . . . 69 123 143 232 56 32 31 93 655 125 780

2011 . . . . 67 124 140 237 58 33 32 92 659 124 783

2012 . . . . 68 125 137 240 61 33 33 91 665 124 789

2013 . . . . 69 126 135 243 63 34 34 90 670 124 794

2014 . . . . 70 127 134 245 65 35 35 90 675 125 800

2015 . . . . 70 128 133 247 67 35 36 89 680 125 805

2016 . . . . 71 129 132 248 69 36 38 88 684 126 810

2017 . . . . 71 130 132 248 71 37 39 88 689 127 816

2018 . . . . 71 132 132 247 73 38 40 88 693 128 821

2019 . . . . 71 133 132 246 75 39 41 88 697 130 827

2020 . . . . 71 134 132 246 77 39 43 88 700 132 832

2021 . . . . 71 136 133 244 80 41 44 89 704 134 837

2022 . . . . 71 137 134 241 81 42 45 91 706 136 843

2023 . . . . 72 137 135 238 83 43 46 93 709 139 848

2024 . . . . 72 138 137 235 85 45 48 95 711 142 853

2025 . . . . 72 138 139 232 86 46 49 97 713 145 858

2026 . . . . 72 139 141 228 88 47 50 99 715 149 864
37

2002 SSI Annual Report

Combining the number of persons coming on the SSI payment rolls during a year with the number of those

already receiving benefits at the beginning of the year, and subtracting the number leaving the rolls during

the year, yields the number of persons receiving Federally-administered SSI payments at the end of the

specified period. Individuals receiving Federal SSI payments, who comprise the great majority of Federally-administered recipients, are presented in table IV.B6 and in figure IV.B4. The net effect of actual

experience in 2001 was that there were roughly 0.6 percent more Federal SSI recipients at the end of 2001

than estimated for the 2001 Annual Report.

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

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2026

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/

1975 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 1,869 2,025 3,893

1976 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 1,932 1,867 3,799

1977 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,013 1,765 3,778

1978 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,069 1,686 3,755

1979 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,094 1,593 3,687

1980 . . . . 188 500 351 750 342 17 609 925 2,149 1,533 3,682

1981 . . . . 194 514 349 720 366 17 541 888 2,160 1,430 3,590

1982 . . . . 191 517 346 683 386 21 459 871 2,144 1,329 3,473

1983 . . . . 198 555 366 692 412 28 449 890 2,250 1,339 3,590

1984 . . . . 210 595 393 700 406 48 463 884 2,352 1,347 3,699

1985 . . . . 226 634 426 717 402 72 462 860 2,477 1,322 3,799

1986 . . . . 240 688 475 739 397 91 465 827 2,630 1,291 3,922

1987 . . . . 249 717 524 756 392 113 464 804 2,751 1,268 4,019

1988 . . . . 254 738 564 774 387 127 468 777 2,844 1,245 4,089

1989 . . . . 263 757 613 799 382 145 488 760 2,959 1,247 4,206

1990 . . . . 306 788 677 840 389 156 508 749 3,156 1,257 4,412

1991 . . . . 395 833 769 897 390 166 542 736 3,451 1,279 4,730

1992 . . . . 555 920 877 970 402 173 577 727 3,898 1,304 5,202

1993 . . . . 721 990 979 1,034 410 179 604 720 4,312 1,324 5,636

1994 . . . . 839 1,032 1,071 1,089 425 182 610 716 4,638 1,326 5,965

1995 . . . . 915 1,058 1,150 1,134 435 188 601 713 4,880 1,315 6,194

1996 . . . . 954 1,066 1,198 1,176 444 192 586 711 5,029 1,296 6,326

1997 . . . . 878 1,039 1,196 1,198 457 193 547 704 4,960 1,251 6,212

1998 . . . . 885 1,038 1,238 1,243 464 197 521 705 5,063 1,226 6,289

1999 . . . . 845 1,005 1,274 1,278 474 195 499 704 5,072 1,203 6,275

2000 . . . . 844 994 1,303 1,313 484 196 483 703 5,134 1,186 6,320

2001 . . . . 879 995 1,329 1,353 493 196 461 703 5,245 1,165 6,410

0

500

1,000

1,500

2,000

2,500

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Historical Estimated

75 or older

35-49

65-74

50-64

18-34

0-17
2002 SSI Annual Report

38

1 Data not available.

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

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

Estimated:

2002 . . . . 919 1,004 1,342 1,399 502 200 444 700 5,366 1,145 6,511

2003 . . . . 955 1,019 1,355 1,457 510 204 430 697 5,499 1,126 6,625

2004 . . . . 985 1,034 1,368 1,520 516 208 420 691 5,631 1,111 6,742

2005 . . . . 1,005 1,044 1,374 1,577 526 214 412 687 5,740 1,099 6,839

2006 . . . . 1,020 1,055 1,371 1,634 539 217 413 677 5,836 1,090 6,926

2007 . . . . 1,030 1,070 1,357 1,688 556 220 417 666 5,920 1,083 7,004

2008 . . . . 1,040 1,086 1,335 1,738 574 222 423 654 5,995 1,077 7,072

2009 . . . . 1,052 1,099 1,309 1,787 586 226 428 642 6,059 1,070 7,129

2010 . . . . 1,068 1,110 1,281 1,836 596 230 432 632 6,121 1,064 7,185

2011 . . . . 1,086 1,119 1,255 1,872 616 233 441 621 6,181 1,062 7,243

2012 . . . . 1,103 1,126 1,232 1,896 643 238 454 611 6,239 1,065 7,304

2013 . . . . 1,119 1,134 1,214 1,921 665 242 467 604 6,294 1,071 7,365

2014 . . . . 1,133 1,142 1,199 1,941 687 246 483 597 6,348 1,080 7,428

2015 . . . . 1,145 1,150 1,191 1,954 708 252 500 593 6,400 1,093 7,493

2016 . . . . 1,156 1,159 1,188 1,960 730 257 518 591 6,450 1,108 7,558

2017 . . . . 1,165 1,168 1,190 1,959 751 265 534 594 6,497 1,127 7,624

2018 . . . . 1,171 1,180 1,191 1,955 773 271 550 599 6,541 1,149 7,690

2019 . . . . 1,177 1,192 1,191 1,950 797 277 571 603 6,583 1,174 7,757

2020 . . . . 1,182 1,202 1,191 1,944 823 281 595 607 6,622 1,201 7,823

2021 . . . . 1,188 1,211 1,194 1,931 844 290 612 620 6,659 1,232 7,890

2022 . . . . 1,194 1,220 1,203 1,911 863 302 624 640 6,693 1,264 7,957

2023 . . . . 1,200 1,228 1,217 1,888 882 311 640 658 6,725 1,298 8,023

2024 . . . . 1,205 1,234 1,234 1,862 899 320 656 677 6,754 1,333 8,087

2025 . . . . 1,209 1,238 1,252 1,836 916 330 672 697 6,781 1,369 8,150

2026 . . . . 1,213 1,243 1,269 1,812 929 339 687 719 6,805 1,405 8,210

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

as of December, 1980-2030

[In thousands]

Table IV.B6.—SSI Recipients with Federal Benefits in Current-Payment Status as of December, 1974-2026 (Cont.)

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Estimated
39

2002 SSI Annual Report

As illustrated in figure IV.B4, the implementation of Public Law 104-121 and Public Law 104-193

resulted in a decline in the Federal recipient population from 1996 to 1997. From the end of 1997 through

the end of 2000, the Federal SSI recipient population grew at an annual rate of less than 1 percent. As discussed above, the experience in 2001 resulted in a slightly higher rate of increase (1.4 percent). Our projections indicate that we expect to gradually return to the modest growth rate of less than 1 percent per

year over the remainder of the 25-year projection period. In order to place this projected growth in the

context of overall population growth, table IV.B7 and figure IV.B5 present Federal SSI recipients as percentages of selected Social Security Area population totals. For the totals shown in this presentation, the

percentages are calculated using the population age group totals corresponding to the age groups in the

Federal recipient categories. Because the ratios for the separate recipient categories are computed as percentages of differing base populations, the percentage for the total SSI recipient population is not the arithmetic sum of the percentages for the respective recipient categories.

1 Blind or disabled recipients as a percentage of the total Social Security Area population.

2 Aged recipients as a percentage of the 65 or older Social Security Area population.

3 Total recipients as a percentage of the total Social Security Area population. Totals do not equal sums of components due to overlapping populations. 4 Age-specific information for these years not yet available.

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

Selected Social Security Area Population Totals, as of December, 1975-2026 

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled1 Aged 2 All 3

Historical data:

1975 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ 0.83 8.62 1.73

1976 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .85 7.76 1.67

1977 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .88 7.16 1.65

1978 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .89 6.68 1.62

1979 . . . . 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/ .90 6.17 1.58

1980 . . . . 0.29 0.70 0.91 2.19 2.16 0.17 3.84 8.78 .91 5.82 1.56

1981 . . . . .30 .72 .87 2.10 2.27 .16 3.36 8.20 .91 5.31 1.50

1982 . . . . .29 .71 .83 1.99 2.35 .19 2.80 7.79 .89 4.82 1.44

1983 . . . . .30 .76 .85 2.03 2.47 .24 2.70 7.75 .92 4.76 1.47

1984 . . . . .32 .81 .88 2.06 2.40 .40 2.74 7.49 .96 4.69 1.50

1985 . . . . .34 .87 .92 2.11 2.33 .59 2.68 7.11 1.00 4.51 1.53

1986 . . . . .36 .94 1.00 2.20 2.26 .74 2.64 6.67 1.05 4.31 1.56

1987 . . . . .38 .98 1.06 2.25 2.20 .89 2.60 6.33 1.09 4.15 1.59

1988 . . . . .38 1.00 1.10 2.30 2.14 .98 2.59 5.97 1.11 4.00 1.60

1989 . . . . .39 1.03 1.16 2.38 2.08 1.08 2.66 5.70 1.14 3.94 1.63

1990 . . . . .45 1.09 1.24 2.49 2.10 1.13 2.74 5.44 1.21 3.89 1.69

1991 . . . . .57 1.16 1.36 2.63 2.09 1.17 2.90 5.20 1.31 3.89 1.79

1992 . . . . .79 1.30 1.51 2.80 2.13 1.19 3.06 4.99 1.46 3.90 1.95

1993 . . . . 1.02 1.42 1.64 2.94 2.16 1.20 3.18 4.82 1.60 3.90 2.09

1994 . . . . 1.17 1.49 1.75 3.04 2.23 1.19 3.20 4.69 1.70 3.86 2.19

1995 . . . . 1.26 1.55 1.82 3.13 2.29 1.20 3.16 4.56 1.78 3.79 2.26

1996 . . . . 1.31 1.57 1.86 3.14 2.34 1.20 3.09 4.43 1.81 3.71 2.28

1997 . . . . 1.20 1.55 1.84 3.07 2.43 1.18 2.91 4.31 1.77 3.56 2.22

1998 . . . . 1.20 1.55 1.88 3.08 2.49 1.18 2.79 4.24 1.80 3.47 2.23

1999 . . . . 1.15 1.51 1.91 3.06 2.56 1.16 2.69 4.17 1.78 3.40 2.21

2000 . . . . 1.14 1.49 1.94 3.03 2.61 1.15 2.61 4.12 1.79 3.33 2.20

2001 . . . . 1.18 1.49 1.97 3.01 2.67 1.14 2.50 4.08 1.81 3.26 2.22

Estimated:

2002 . . . . 1.23 1.50 1.99 3.00 2.72 1.15 2.40 4.02 1.84 3.19 2.23

2003 . . . . 1.27 1.51 2.01 3.02 2.75 1.16 2.32 3.96 1.87 3.12 2.25

2004 . . . . 1.31 1.53 2.04 3.04 2.76 1.18 2.25 3.90 1.90 3.05 2.27

2005 . . . . 1.33 1.54 2.05 3.04 2.79 1.20 2.18 3.86 1.92 3.00 2.29

2006 . . . . 1.35 1.54 2.06 3.05 2.81 1.21 2.15 3.79 1.94 2.94 2.30

2007 . . . . 1.36 1.55 2.05 3.05 2.81 1.23 2.11 3.72 1.95 2.87 2.30

2008 . . . . 1.37 1.55 2.05 3.06 2.79 1.24 2.06 3.65 1.96 2.80 2.31

2009 . . . . 1.39 1.55 2.03 3.05 2.77 1.26 2.02 3.58 1.96 2.74 2.31

2010 . . . . 1.41 1.54 2.02 3.05 2.74 1.28 1.99 3.51 1.97 2.68 2.31

2011 . . . . 1.43 1.54 2.00 3.04 2.72 1.29 1.95 3.43 1.97 2.61 2.31

2012 . . . . 1.45 1.54 1.99 3.04 2.69 1.30 1.90 3.35 1.97 2.53 2.31

2013 . . . . 1.46 1.53 1.98 3.04 2.66 1.32 1.87 3.28 1.98 2.47 2.31

2014 . . . . 1.47 1.54 1.96 3.04 2.63 1.32 1.85 3.21 1.98 2.42 2.32

2015 . . . . 1.48 1.54 1.95 3.03 2.60 1.33 1.84 3.14 1.98 2.37 2.32

2016 . . . . 1.49 1.55 1.94 3.03 2.58 1.34 1.83 3.08 1.98 2.34 2.32

2017 . . . . 1.50 1.56 1.94 3.03 2.56 1.34 1.82 3.02 1.98 2.30 2.33

2018 . . . . 1.50 1.57 1.93 3.02 2.55 1.34 1.82 2.96 1.98 2.27 2.33

2019 . . . . 1.51 1.57 1.92 3.02 2.54 1.33 1.82 2.90 1.98 2.25 2.33

2020 . . . . 1.51 1.58 1.92 3.01 2.52 1.32 1.82 2.85 1.98 2.23 2.34

2021 . . . . 1.51 1.59 1.91 3.01 2.52 1.31 1.82 2.81 1.98 2.22 2.34

2022 . . . . 1.52 1.59 1.91 3.01 2.52 1.31 1.82 2.77 1.97 2.20 2.35

2023 . . . . 1.52 1.60 1.91 3.01 2.51 1.29 1.82 2.73 1.97 2.19 2.35

2024 . . . . 1.52 1.61 1.91 3.00 2.51 1.28 1.83 2.71 1.97 2.19 2.36

2025 . . . . 1.53 1.61 1.91 3.00 2.50 1.27 1.83 2.68 1.96 2.18 2.36

2026 . . . . 1.53 1.62 1.91 3.00 2.49 1.26 1.84 2.66 1.96 2.18 2.37
2002 SSI Annual Report

40

Table IV.B7 indicates that the percentage of the total Social Security Area population who were receiving

Federal SSI payments declined from the inception of the program through the early 1980s. In 1983, this

percentage started increasing and continued to increase through 1996. Due to factors described previously,

the percentage of the total population receiving Federal SSI payments declined in 1997, but has leveled

out since and is expected to remain fairly constant throughout the projection period. 

The various subcategories of Federal SSI recipients, however, follow significantly different growth patterns in relationship to their respective population totals. The aged Federal SSI recipient population

declines steadily as a percentage of the 65 or older population. In contrast, except for recent decreases due

to the eligibility redeterminations and continuing disability reviews mandated by Public Law 104-193, the

number of blind or disabled children receiving Federal SSI payments increased steadily as a percentage of

the under age 18 population, with the increase being quite steep in the early 1990s. The total blind or disabled Federal SSI recipient population as a percentage of the total population remained fairly level until

the early 1980s when it started increasing and continued to increase through 1996. After the recent modest

decreases due to the implementation of legislation described in other sections the number of blind or disabled persons receiving Federal SSI payments is estimated to increase very gradually as a percentage of

the total population.

Historical and projected numbers of individuals who receive only a Federally-administered State supplement are presented in table IV.B8.

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

Selected Social Security Area Population Age Groups, as of December, 1980-2030

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Year

0-17

18-34

35-49

50-64

65-74

75 or older

Total

Historical Estimated
41

2002 SSI Annual Report

1 Data not available.

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

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

The combined numbers of persons receiving either a Federal SSI payment or a Federally-administered

State supplement are displayed in table IV.B9.

In examining the recent history of SSI participation and the projections of such participation in the near

future, certain patterns are worth noting. The rapid increase in the total number of SSI participants in the

early 1990s is a function of the growth in the numbers of disabled adults and children. The growth in the

numbers of children receiving SSI resulted in large part from the Supreme Court decision in the case of

Sullivan v. Zebley, which greatly expanded the criteria used for determining disability for children. The

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

in Current-Payment Status as of December, 1974-2026

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/

1975 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 139 282 421

1976 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 156 280 437

1977 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 174 286 460

1978 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 180 282 462

1979 . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 184 278 462

1980 . . . . 2 20 26 82 52 2 112 162 185 274 460

1981 . . . . 1 19 26 75 58 2 94 155 181 248 429

1982 . . . . 1 18 23 68 53 2 82 137 165 219 384

1983 . . . . 1 17 19 50 44 4 65 111 136 176 312

1984 . . . . 1 18 23 50 47 7 68 116 147 184 331

1985 . . . . 1 21 28 53 45 8 67 115 157 182 339

1986 . . . . 1 23 31 55 45 11 66 116 166 182 348

1987 . . . . 1 26 36 60 43 12 72 115 178 187 366

1988 . . . . 1 26 42 59 44 14 74 114 187 188 375

1989 . . . . 2 28 45 60 45 16 76 115 195 192 387

1990 . . . . 2 31 54 60 44 17 82 116 208 197 405

1991 . . . . 2 29 54 59 42 17 78 108 203 186 389

1992 . . . . 2 29 55 59 37 16 70 97 197 167 364

1993 . . . . 2 29 58 59 34 15 64 88 197 151 348

1994 . . . . 2 28 59 56 32 14 59 81 192 139 331

1995 . . . . 3 25 59 56 32 14 54 77 188 131 320

1996 . . . . 2 21 54 53 29 13 49 68 172 116 288

1997 . . . . 2 20 55 53 29 13 46 65 172 111 283

1998 . . . . 2 18 54 55 28 13 43 63 171 106 277

1999 . . . . 2 18 57 58 28 13 43 62 177 105 282

2000 . . . . 2 17 57 60 29 13 42 61 179 103 282

2001 . . . . 2 17 56 62 29 12 41 59 179 100 278

Estimated:

2002 . . . . 3 18 57 66 31 13 41 58 186 99 285

2003 . . . . 3 18 56 69 32 13 40 58 191 98 289

2004 . . . . 3 18 56 72 33 13 40 57 195 97 292

2005 . . . . 3 18 56 74 34 13 39 57 199 97 296

2006 . . . . 3 18 56 77 35 13 40 57 203 96 300

2007 . . . . 3 19 56 80 36 14 40 56 207 96 304

2008 . . . . 3 19 56 83 38 13 41 56 211 96 308

2009 . . . . 3 19 55 86 38 14 41 55 215 96 311

2010 . . . . 3 20 54 89 39 14 41 55 218 96 314

2011 . . . . 3 20 53 91 40 14 42 54 221 96 317

2012 . . . . 3 20 52 92 42 14 43 54 223 97 320

2013 . . . . 3 20 51 94 43 14 45 53 226 98 323

2014 . . . . 3 20 51 95 45 14 46 53 228 99 327

2015 . . . . 3 21 50 95 46 15 48 53 230 100 330

2016 . . . . 3 21 50 96 47 15 50 53 232 102 334

2017 . . . . 3 21 50 96 49 15 51 53 234 104 338

2018 . . . . 3 21 50 96 50 16 53 54 236 107 342

2019 . . . . 3 21 50 96 52 16 55 54 237 109 347

2020 . . . . 3 21 50 95 53 16 57 55 239 112 351

2021 . . . . 3 22 50 95 55 17 59 56 241 115 356

2022 . . . . 3 22 50 94 56 18 60 58 243 118 361

2023 . . . . 3 22 51 93 57 18 62 60 244 122 366

2024 . . . . 3 22 52 91 58 19 63 62 245 125 371

2025 . . . . 3 22 52 90 59 19 65 64 246 129 375

2026 . . . . 3 22 53 89 60 20 66 66 247 132 380
2002 SSI Annual Report

42

growth in the numbers of disabled adults is a more complicated phenomenon which is still not completely understood. However, extensive research conducted under contract to SSA and the Department of

Health and Human Services suggested that this growth was the result of a combination of factors including

(1) demographic trends, (2) a downturn in the economy in the late 1980s and early 1990s, (3) long-term

structural changes in the economy, and (4) changes in other support programs (in particular the reduction

or elimination of general assistance programs in certain States). The recent modest changes in program

participation reflects the combined effects of recent legislation described in previous sections, along with

changes in some of the factors mentioned above.

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

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

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

as of December, 1974-2026

[In thousands]

Year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1,710 2,286 3,996

1975 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,007 2,307 4,314

1976 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,088 2,148 4,236

1977 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,187 2,051 4,238

1978 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,249 1,968 4,217

1979 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 2,278 1,872 4,150

1980 . . . . 190 521 377 833 393 20 721 1,086 2,334 1,808 4,142

1981 . . . . 195 533 375 795 424 19 635 1,043 2,341 1,678 4,019

1982 . . . . 192 535 369 751 439 23 541 1,008 2,309 1,549 3,858

1983 . . . . 198 572 386 742 456 32 514 1,001 2,386 1,515 3,901

1984 . . . . 212 613 417 751 453 54 531 999 2,499 1,530 4,029

1985 . . . . 227 655 454 769 447 80 530 975 2,634 1,504 4,138

1986 . . . . 241 711 506 794 442 102 531 942 2,796 1,473 4,269

1987 . . . . 251 743 560 816 436 124 536 920 2,930 1,455 4,385

1988 . . . . 255 764 606 833 431 142 543 891 3,030 1,433 4,464

1989 . . . . 265 785 658 859 427 160 564 875 3,154 1,439 4,593

1990 . . . . 309 819 731 900 432 172 589 865 3,363 1,454 4,817

1991 . . . . 397 863 823 956 432 183 620 845 3,654 1,465 5,118

1992 . . . . 556 949 932 1,029 440 189 647 824 4,095 1,471 5,566

1993 . . . . 723 1,019 1,036 1,093 445 194 667 808 4,509 1,475 5,984

1994 . . . . 841 1,060 1,130 1,146 457 196 669 797 4,830 1,466 6,296

1995 . . . . 917 1,083 1,209 1,190 467 202 656 790 5,068 1,446 6,514

1996 . . . . 955 1,087 1,252 1,229 472 205 634 778 5,201 1,413 6,614

1997 . . . . 880 1,059 1,251 1,252 486 205 593 770 5,133 1,362 6,495

1998 . . . . 887 1,056 1,292 1,298 492 209 564 768 5,234 1,332 6,566

1999 . . . . 847 1,024 1,331 1,336 503 208 543 765 5,249 1,308 6,557

2000 . . . . 847 1,011 1,360 1,373 513 209 525 764 5,312 1,289 6,602

2001 . . . . 882 1,012 1,385 1,415 522 209 502 762 5,424 1,264 6,688

Estimated:

2002 . . . . 921 1,022 1,399 1,465 533 213 485 759 5,553 1,243 6,796

2003 . . . . 958 1,037 1,411 1,525 542 217 470 754 5,690 1,224 6,914

2004 . . . . 987 1,052 1,424 1,592 550 222 460 749 5,827 1,208 7,035

2005 . . . . 1,008 1,062 1,431 1,651 561 227 452 744 5,940 1,196 7,135

2006 . . . . 1,023 1,073 1,428 1,712 575 230 452 734 6,039 1,186 7,226

2007 . . . . 1,033 1,089 1,413 1,767 593 234 457 723 6,128 1,180 7,307

2008 . . . . 1,043 1,105 1,391 1,820 611 236 464 710 6,207 1,174 7,380

2009 . . . . 1,055 1,118 1,364 1,873 624 240 469 698 6,274 1,166 7,440

2010 . . . . 1,071 1,129 1,335 1,925 634 244 473 687 6,339 1,160 7,499

2011 . . . . 1,089 1,139 1,308 1,963 656 247 483 675 6,401 1,158 7,560

2012 . . . . 1,106 1,146 1,284 1,988 685 252 497 665 6,462 1,162 7,624

2013 . . . . 1,122 1,154 1,265 2,014 708 257 512 657 6,520 1,169 7,688

2014 . . . . 1,136 1,162 1,249 2,036 732 261 529 650 6,576 1,179 7,755

2015 . . . . 1,148 1,171 1,241 2,050 754 266 548 645 6,630 1,193 7,823

2016 . . . . 1,159 1,180 1,238 2,056 777 272 567 643 6,682 1,211 7,892

2017 . . . . 1,168 1,188 1,239 2,055 799 280 585 647 6,730 1,232 7,962

2018 . . . . 1,174 1,200 1,241 2,051 823 287 603 653 6,777 1,256 8,032

2019 . . . . 1,180 1,213 1,241 2,045 849 293 626 657 6,820 1,283 8,103

2020 . . . . 1,186 1,223 1,240 2,039 876 297 652 662 6,861 1,314 8,175

2021 . . . . 1,191 1,233 1,244 2,026 899 307 671 676 6,900 1,347 8,246

2022 . . . . 1,197 1,242 1,253 2,005 919 319 684 698 6,936 1,382 8,318

2023 . . . . 1,203 1,250 1,268 1,980 939 329 701 718 6,969 1,420 8,388

2024 . . . . 1,208 1,256 1,285 1,954 958 339 719 739 6,999 1,458 8,457

2025 . . . . 1,212 1,260 1,304 1,926 975 349 736 761 7,027 1,498 8,525

2026 . . . . 1,216 1,265 1,322 1,901 989 359 753 785 7,052 1,538 8,590
43

2002 SSI Annual Report

C. FEDERAL PAYMENTS UNDER SSI

In order to estimate future amounts of Federal expenditures under SSI, the projected Federal benefit rates

shown in table IV.A2 are first modified to reflect actual payment levels, taking into account historical and

projected levels of adjustments for other actual or deemed income. Combining these actual payment levels

with the projected numbers of persons receiving Federal SSI payments yields estimates of the amounts of

Federal SSI payments. Historical amounts of such payments on a calendar year basis are shown in table

IV.C1. For purposes of this presentation, these payment amounts are computed on a cash-flow basis consistent with the concepts used to define SSI obligations for the Federal Budget. As a result, for months

after January 1978, SSI payments due on the first of the month are tabulated in the previous month, if the

first of the month falls on a weekend or Federal holiday.1

1 Total historical payments for 1974-77 agree with those presented in the Annual Statistical Supplement to the Social Security Bulletin. Total historical payments for 1978-83 are estimated.

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

3 Includes 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

4 Partially estimated.

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

Using this cash-flow concept causes these payments to differ from similar amounts shown in other Social

Security Administration publications, such as the Annual Statistical Supplement to the Social Security Bulletin, in two main ways. First, the payments shown in the Annual Statistical Supplement are tabulated for

the month the payment is due, while the amounts shown in table IV.C1 are tabulated for the month they are

actually paid. In particular, since January 1 of each year is a Federal holiday, SSI payments due on

January 1 of years 1979 and later are actually paid in December of the previous year. Thus, for example,

the calendar year 2001 payment amounts shown in table IV.C1 reflect payments made in January-Decem1 Public Law 95-216, the Social Security Amendments of 1977, enacted December 20, 1977, added a statutory requirement that SSI payments, which are

normally due on the first of the month, be delivered early when the normal delivery date falls on a Saturday, Sunday or Federal holiday. When the first of the

month falls on a weekend or Federal holiday, all payments due on that day are paid in the previous month. Payments presented on a cash-flow basis are tabulated according to the month in which they are actually paid.

Table IV.C1.—SSI Federal Payments in Current Dollars,1 Calendar Years 1974-2002

[In millions]

Calendar 

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1974 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ $2,050 $1,783 $3,833

1975 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,471 1,843 4,314

1976 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,727 1,785 4,512

1977 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2,966 1,737 4,703

1978 3 ........ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 3,449 1,847 5,296

1979 ........... 2/ 2/ 2/ 2/ 2/ 2/ 2/ 2/ 3,546 1,760 5,306

1980 ........... $397 $931 $731 $1,420 $544 $28 $642 $1,230 4,051 1,872 5,923

1981 ........... 458 1,079 821 1,542 654 32 643 1,320 4,586 1,963 6,549

1982 ........... 512 1,211 883 1,590 704 38 630 1,364 4,937 1,994 6,931

1983 ........... 574 1,372 985 1,704 774 58 624 1,440 5,466 2,064 7,530

1984 ........... 659 1,576 1,128 1,835 836 102 670 1,512 6,136 2,182 8,318

1985 ........... 736 1,709 1,250 1,924 833 160 699 1,499 6,611 2,198 8,809

1986 ........... 831 1,929 1,452 2,043 848 209 731 1,479 7,312 2,210 9,522

1987 ........... 900 2,081 1,618 2,157 846 259 765 1,444 7,860 2,210 10,069

1988 ........... 955 2,228 1,818 2,303 874 304 814 1,449 8,481 2,263 10,744

1989 ........... 1,025 2,431 2,048 2,481 936 366 881 1,479 9,286 2,361 11,647

1990 ........... 1,201 2,660 2,395 2,792 969 407 987 1,532 10,423 2,519 12,943

1991 ........... 1,678 3,129 2,966 3,305 1,060 463 1,169 1,637 12,601 2,806 15,407

1992 ........... 3,154 3,900 3,577 3,790 1,124 487 1,303 1,690 16,033 2,993 19,026

1993 ........... 3,909 4,465 4,164 4,188 1,208 513 1,471 1,759 18,447 3,230 21,677

1994 ........... 4,167 4,504 4,666 4,533 1,274 538 1,566 1,814 19,682 3,380 23,063

1995 ........... 4,657 4,777 5,155 4,896 1,357 565 1,599 1,900 21,407 3,499 24,906

1996 ........... 4,947 5,004 5,614 5,298 1,427 590 1,643 1,977 22,880 3,621 26,501

1997 ........... 4,920 5,031 5,564 5,410 1,505 614 1,586 2,046 23,044 3,632 26,675

1998 ........... 4,965 5,150 5,901 5,777 1,588 635 1,542 2,136 24,017 3,678 27,695

1999 ........... 4,835 5,132 6,185 6,037 1,660 654 1,503 2,206 24,503 3,709 28,212

2000 ........... 4,789 5,121 6,404 6,293 1,717 675 1,470 2,309 24,999 3,779 28,778

2001 ........... 5,104 5,354 6,817 6,783 1,838 713 1,470 2,454 26,608 3,924 30,532

2002 4 ........ 5,439 5,570 7,080 7,225 1,929 740 1,428 2,525 27,981 3,953 31,934
2002 SSI Annual Report

44

ber, 2001, and include the payments due on January 1, 2002 (which were actually paid in December,

2001), but not the payments due on January 1, 2001 (which were actually paid in December, 2000). 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

1978-2002. Fiscal years prior to 1978 are omitted from table IV.C2 since historical SSI payment amounts

on a fiscal year basis for years prior to 1978 are not readily available. As with the calendar year figures,

these fiscal year amounts are shown on a cash-flow basis. Consequently, fiscal years 1979 and later may

contain 11, 12, or 13 months of payments, depending on whether October 1 of the current and succeeding

fiscal years falls on a weekend.2 Fiscal year 1978 contains 13 months of payments.

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

2 Payment due on October 1 of fiscal year paid in previous fiscal year.

3 Partially estimated.

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

When projecting dollar amounts over longer periods of time, the changing value of the dollar due to inflation can make meaningful comparisons of such amounts difficult. For this reason, in projecting SSI expenditures for 25 years, some means of removing inflation is generally desirable. The Consumer Price Index

for Urban Wage Earners and Clerical Workers, published by the Bureau of Labor Statistics and used to

1 Fiscal years 1977 and later cover the period from October 1 of the previous calendar year to September 30 of the year. For example, fiscal year 2002 payments include payments made from October 1, 2001 through September 30, 2002.

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 1978-2002

[In millions]

Fiscal

year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

1978 . . . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ $3,386 $1,848 $5,234

1979 2 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 3,172 1,610 4,782

1980 . . . . . . $372 $877 $698 $1,360 $506 $26 $629 $1,184 3,840 1,813 5,653

1981 . . . . . . 442 1,039 797 1,508 625 31 647 1,307 4,442 1,954 6,396

1982 . . . . . . 499 1,181 861 1,570 693 36 640 1,356 4,840 1,996 6,836

1983 . . . . . . 596 1,416 1,024 1,783 806 56 660 1,510 5,680 2,170 7,850

1984 2 . . . . 588 1,411 1,005 1,665 760 85 613 1,391 5,514 2,004 7,517

1985 . . . . . . 713 1,662 1,215 1,895 828 145 691 1,502 6,459 2,193 8,652

1986 . . . . . . 800 1,864 1,386 1,995 840 196 723 1,487 7,080 2,209 9,290

1987 . . . . . . 880 2,030 1,565 2,119 845 242 755 1,448 7,681 2,203 9,884

1988 . . . . . . 1,009 2,356 1,898 2,425 932 316 860 1,559 8,935 2,419 11,354

1989 2 . . . . 1,012 2,378 1,997 2,452 910 345 862 1,473 9,094 2,335 11,430

1990 2 . . . . 1,039 2,378 2,115 2,479 876 362 879 1,394 9,247 2,273 11,521

1991 . . . . . . 1,519 2,975 2,772 3,141 1,032 447 1,120 1,608 11,886 2,728 14,614

1992 . . . . . . 2,684 3,621 3,398 3,653 1,099 476 1,269 1,680 14,932 2,949 17,881

1993 . . . . . . 3,817 4,377 3,977 4,033 1,175 502 1,420 1,730 17,880 3,150 21,029

1994 . . . . . . 4,328 4,771 4,866 4,756 1,344 569 1,659 1,930 20,635 3,588 24,223

1995 2 . . . . 4,554 4,719 5,031 4,822 1,341 560 1,596 1,884 21,027 3,480 24,507

1996 2 . . . . 4,543 4,595 5,123 4,830 1,305 540 1,510 1,808 20,936 3,317 24,254

1997 . . . . . . 4,933 5,004 5,529 5,340 1,478 606 1,602 2,027 22,890 3,629 26,519

1998 . . . . . . 4,915 5,114 5,816 5,688 1,567 630 1,548 2,110 23,729 3,658 27,387

1999 . . . . . . 4,901 5,152 6,123 5,975 1,638 648 1,506 2,180 24,438 3,685 28,123

2000 . . . . . . 5,152 5,500 6,827 6,692 1,822 718 1,599 2,453 26,710 4,052 30,763

2001 2 . . . . 4,597 4,869 6,170 6,125 1,670 652 1,352 2,236 24,083 3,588 27,671

2002 3 . . . . 5,314 5,491 6,993 7,068 1,898 731 1,441 2,502 27,495 3,943 31,438
45

2002 SSI Annual Report

determine annual increases in the SSI Federal benefit rate as described in table IV.A2, is an appropriate

means of standardizing projected SSI costs over time. Constant-dollar values of Federal SSI benefit payments (those adjusted by the CPI) are presented in table IV.C3 for both the historical period, calendar

years 1974-2001, and the full 25-year projection period, 2002-26. This same information is presented in

graphical form in figure IV.C1.

The future growth in the “constant dollar” estimates is attributable primarily to the underlying growth in

the U.S. population as shown in table IV.A1, since, after the spike in terminations in 1997, the SSI recipient population is projected to remain fairly constant as a percentage of the total U.S. population. However, a small part of the growth in estimated payments is due to some underlying real growth in the

assumed average SSI benefit. This results from an estimated increase in the disabled child recipients and a

decrease in aged recipients as a percentage of the total SSI recipient population, along with the fact that

disabled children typically have a much larger SSI benefit than do aged recipients.1

1 Disabled children typically have higher monthly Federal payment amounts because they have, on average, much lower countable income than do adult

recipients.

 Figure IV.C1.—SSI Federal Payments, by Age Group, in Constant 2002 Dollars, Calendar Years 1980-2030

[In billions]

$0

$10

$20

$30

$40

$50

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

Constant 2002 dollars -- billions .

35-49

65-74

50-64

18-34

0-17

75 or older

Historical Estimated
2002 SSI Annual Report

46

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

2 Includes 13 months of payments since payments due on January 1, 1978 and January 1, 1979 were both paid in calendar year 1978.

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

Table IV.C3.—SSI Federal Payments in Constant 2002 Dollars, Calendar Years 1974-2026

[In millions]

Calendar year

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ $7,267 $6,319 $13,586

1975 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,028 5,989 14,017

1976 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,381 5,486 13,867

1977 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,563 5,014 13,577

1978 2 . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 9,243 4,949 14,192

1979 . . . . 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 8,528 4,233 12,761

1980 . . . . $842 $1,974 $1,551 $3,011 $1,154 $59 $1,361 $2,608 8,591 3,969 12,560

1981 . . . . 881 2,075 1,579 2,966 1,258 61 1,236 2,540 8,821 3,776 12,597

1982 . . . . 930 2,196 1,602 2,884 1,277 69 1,142 2,475 8,958 3,617 12,575

1983 . . . . 1,010 2,417 1,735 3,001 1,363 102 1,099 2,536 9,628 3,635 13,264

1984 . . . . 1,122 2,682 1,920 3,123 1,423 173 1,141 2,573 10,442 3,714 14,156

1985 . . . . 1,210 2,810 2,055 3,164 1,370 263 1,150 2,465 10,873 3,614 14,487

1986 . . . . 1,346 3,123 2,351 3,307 1,372 338 1,183 2,394 11,837 3,577 15,414

1987 . . . . 1,406 3,251 2,528 3,370 1,322 405 1,196 2,257 12,282 3,453 15,735

1988 . . . . 1,436 3,351 2,734 3,463 1,314 457 1,225 2,179 12,755 3,403 16,158

1989 . . . . 1,470 3,485 2,936 3,557 1,343 524 1,264 2,121 13,316 3,385 16,700

1990 . . . . 1,636 3,625 3,264 3,805 1,320 554 1,346 2,088 14,205 3,433 17,638

1991 . . . . 2,197 4,096 3,883 4,326 1,388 606 1,530 2,143 16,495 3,673 20,168

1992 . . . . 4,012 4,962 4,551 4,822 1,430 620 1,657 2,150 20,395 3,807 24,202

1993 . . . . 4,836 5,524 5,151 5,181 1,495 635 1,820 2,176 22,822 3,996 26,818

1994 . . . . 5,031 5,438 5,634 5,474 1,538 650 1,891 2,190 23,765 4,081 27,846

1995 . . . . 5,465 5,606 6,050 5,746 1,592 663 1,877 2,230 25,123 4,107 29,229

1996 . . . . 5,644 5,709 6,405 6,044 1,628 673 1,875 2,256 26,102 4,131 30,232

1997 . . . . 5,488 5,612 6,207 6,035 1,678 685 1,769 2,282 25,705 4,051 29,756

1998 . . . . 5,465 5,670 6,496 6,360 1,748 699 1,698 2,351 26,438 4,049 30,487

1999 . . . . 5,208 5,528 6,662 6,503 1,788 704 1,619 2,377 26,394 3,996 30,390

2000 . . . . 4,985 5,330 6,666 6,550 1,787 703 1,530 2,404 26,020 3,934 29,954

2001 . . . . 5,168 5,422 6,903 6,869 1,861 722 1,489 2,485 26,945 3,974 30,919

Estimated:

2002 . . . . 5,439 5,570 7,080 7,225 1,929 740 1,428 2,525 27,981 3,953 31,934

2003 . . . . 5,668 5,618 7,135 7,472 1,939 747 1,369 2,509 28,577 3,877 32,454

2004 . . . . 5,861 5,697 7,223 7,799 1,965 763 1,338 2,511 29,307 3,849 33,155

2005 . . . . 6,006 5,762 7,287 8,112 2,006 783 1,315 2,518 29,957 3,833 33,790

2006 . . . . 6,116 5,841 7,310 8,436 2,061 794 1,318 2,503 30,559 3,821 34,379

2007 . . . . 6,199 5,950 7,283 8,752 2,134 810 1,329 2,478 31,128 3,806 34,934

2008 . . . . 6,280 6,062 7,215 9,057 2,208 821 1,349 2,447 31,643 3,796 35,440

2009 . . . . 6,363 6,154 7,106 9,343 2,263 838 1,364 2,419 32,067 3,783 35,850

2010 . . . . 6,466 6,228 6,983 9,606 2,311 855 1,377 2,393 32,449 3,769 36,218

2011 . . . . 6,586 6,292 6,868 9,807 2,402 870 1,400 2,357 32,825 3,757 36,582

2012 . . . . 6,709 6,351 6,774 9,957 2,516 892 1,437 2,325 33,198 3,762 36,960

2013 . . . . 6,817 6,402 6,690 10,092 2,609 911 1,476 2,300 33,521 3,776 37,296

2014 . . . . 6,922 6,455 6,628 10,202 2,703 929 1,521 2,280 33,838 3,802 37,639

2015 . . . . 7,014 6,510 6,602 10,271 2,792 952 1,571 2,268 34,143 3,839 37,982

2016 . . . . 7,100 6,576 6,609 10,307 2,887 977 1,627 2,267 34,456 3,894 38,350

2017 . . . . 7,169 6,635 6,630 10,302 2,980 1,009 1,675 2,280 34,726 3,956 38,682

2018 . . . . 7,225 6,718 6,656 10,290 3,080 1,039 1,728 2,302 35,008 4,030 39,037

2019 . . . . 7,275 6,800 6,672 10,272 3,189 1,064 1,795 2,320 35,272 4,114 39,387

2020 . . . . 7,320 6,865 6,682 10,240 3,299 1,085 1,867 2,338 35,490 4,205 39,695

2021 . . . . 7,369 6,928 6,715 10,181 3,396 1,123 1,917 2,391 35,712 4,308 40,020

2022 . . . . 7,420 6,990 6,784 10,085 3,484 1,173 1,954 2,468 35,936 4,422 40,358

2023 . . . . 7,468 7,048 6,882 9,975 3,574 1,216 2,003 2,539 36,163 4,541 40,705

2024 . . . . 7,514 7,098 6,995 9,859 3,661 1,258 2,053 2,613 36,385 4,666 41,051

2025 . . . . 7,547 7,126 7,100 9,723 3,735 1,297 2,103 2,689 36,529 4,792 41,321

2026 . . . . 7,559 7,151 7,195 9,594 3,794 1,337 2,151 2,774 36,630 4,926 41,556
47

2002 SSI Annual Report

Although detailed projections of SSI State supplementary payments are not prepared, historical information on the amounts of such supplements is presented in tables IV.C4 and IV.C5. These amounts are consistent with those presented in the Annual Statistical Supplement to the Social Security Bulletin and are

shown only for the two broad recipient categories.

1 Split between recipient categories is estimated.

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

1 Data provided by individual States are partially estimated, and may be incomplete.

2 Includes amounts not distributed by recipient category.

Table IV.C4.—SSI Federally-Administered State Supplementary Payments in Current Dollars, Calendar Years 1974-2001

[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 1 ............................................. 956 2,505 3,460

Table IV.C5.—SSI State-Administered Payments1 in Current Dollars, Calendar Years 1974-2001

[In millions]

Calendar year Aged

Blind or

disabled Total 2

1974 ................................................ $89 $49 $149

1975 ................................................ 88 74 162

1976 ................................................ 88 77 166

1977 ................................................ 85 87 172

1978 ................................................ 91 88 180

1979 ................................................ 105 100 207

1980 ................................................ 117 106 226

1981 ................................................ 120 113 237

1982 ................................................ 125 119 276

1983 ................................................ 135 132 270

1984 ................................................ 141 152 299

1985 ................................................ 138 165 311

1986 ................................................ 147 185 340

1987 ................................................ 146 205 359

1988 ................................................ 150 224 381

1989 ................................................ 160 251 419

1990 ................................................ 177 281 466

1991 ................................................ 200 310 529

1992 ................................................ 216 323 550

1993 ................................................ 219 341 566

1994 ................................................ 225 354 585

1995 ................................................ 228 356 590

1996 ................................................ 225 307 539

1997 ................................................ 228 303 681

1998 ................................................ 259 429 808

1999 ................................................ 271 461 853

2000 ................................................ 283 488 893

2001 ................................................ 295 494 895
2002 SSI Annual Report

48

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

For SSI, an appropriate relative measure of program costs is produced by comparing estimated annual SSI

costs to the Gross Domestic Product (GDP—the total value of goods and services produced in the United

States). In addition to providing an inflation-independent measure of the cost of the SSI program, this provides a useful perspective on the proportion of the total output of the U.S. economy needed to provide

Federal SSI benefits. As is shown in table IV.D1 and figure IV.D1, the total cost of the SSI program is projected to grow slightly in 2002, but then, after 2002, is projected to decline relative to GDP.

Table IV.D1 and figure IV.D1 present a concise summary of Federal expenditures under the SSI program.

Following the initial higher costs of the program, total Federal SSI payments during the 1980s were a

fairly constant percentage of GDP (0.21 percent). During the early 1990s, SSI experienced rather rapid

growth (to 0.34 percent of GDP in 1996) due to a combination of factors discussed earlier in section IV.

Welfare reform legislation resulted in a drop in the cost of SSI as a percentage of GDP in 1997. As mentioned earlier, the estimates prepared for this report project total participation in the SSI program to remain

a stable proportion of the U.S. population. Federal SSI expenditures, after adjusting for growth in prices,

are projected to grow slightly faster than the population due to the estimated small amount of real growth

in the SSI average benefit, as discussed previously in section IV.C. Since the real growth projected for

GDP under the 2002 Trustees Report intermediate assumptions is greater than the combined effects of

increases in SSI participation and the estimated real increase in the SSI average benefit, Federal SSI payments are projected to decline as a percentage of GDP over the next 25 years, reaching 0.25 percent of

GDP by 2026.

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

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030

Calendar year

35-49

65-74

50-64

18-34

0-17

75 or older 

Historical Estimated
49

2002 SSI Annual Report

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

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

Table IV.D1.—SSI Federal Payments as a Percentage of GDP, Calendar Years 1974-2026 

Calendar 

year

GDP

(In billions)

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

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

75 or

older 65-74

75 or

older

Blind or

disabled Aged All

Historical data:

1974 . . . . $1,501 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 0.137 0.119 0.255

1975 . . . . 1,635 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .151 .113 .264

1976 . . . . 1,824 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .150 .098 .247

1977 . . . . 2,031 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .146 .085 .232

1978 . . . . 2,296 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .150 .080 .231

1979 . . . . 2,566 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ .138 .069 .207

1980 . . . . 2,796 0.014 0.033 0.026 0.051 0.019 0.001 0.023 0.044 .145 .067 .212

1981 . . . . 3,131 .015 .034 .026 .049 .021 .001 .021 .042 .146 .063 .209

1982 . . . . 3,259 .016 .037 .027 .049 .022 .001 .019 .042 .151 .061 .213

1983 . . . . 3,535 .016 .039 .028 .048 .022 .002 .018 .041 .155 .058 .213

1984 . . . . 3,933 .017 .040 .029 .047 .021 .003 .017 .038 .156 .055 .212

1985 . . . . 4,213 .017 .041 .030 .046 .020 .004 .017 .036 .157 .052 .209

1986 . . . . 4,453 .019 .043 .033 .046 .019 .005 .016 .033 .164 .050 .214

1987 . . . . 4,742 .019 .044 .034 .045 .018 .005 .016 .030 .166 .047 .212

1988 . . . . 5,108 .019 .044 .036 .045 .017 .006 .016 .028 .166 .044 .210

1989 . . . . 5,489 .019 .044 .037 .045 .017 .007 .016 .027 .169 .043 .212

1990 . . . . 5,803 .021 .046 .041 .048 .017 .007 .017 .026 .180 .043 .223

1991 . . . . 5,986 .028 .052 .050 .055 .018 .008 .020 .027 .211 .047 .257

1992 . . . . 6,319 .050 .062 .057 .060 .018 .008 .021 .027 .254 .047 .301

1993 . . . . 6,642 .059 .067 .063 .063 .018 .008 .022 .026 .278 .049 .326

1994 . . . . 7,054 .059 .064 .066 .064 .018 .008 .022 .026 .279 .048 .327

1995 . . . . 7,401 .063 .065 .070 .066 .018 .008 .022 .026 .289 .047 .337

1996 . . . . 7,813 .063 .064 .072 .068 .018 .008 .021 .025 .293 .046 .339

1997 . . . . 8,318 .059 .060 .067 .065 .018 .007 .019 .025 .277 .044 .321

1998 . . . . 8,782 .057 .059 .067 .066 .018 .007 .018 .024 .273 .042 .315

1999 . . . . 9,269 .052 .055 .067 .065 .018 .007 .016 .024 .264 .040 .304

2000 . . . . 9,873 .049 .052 .065 .064 .017 .007 .015 .023 .253 .038 .291

2001 . . . . 10,197 .050 .053 .067 .067 .018 .007 .014 .024 .261 .038 .299

Estimated:

2002 . . . . 10,430 .052 .053 .068 .069 .018 .007 .014 .024 .268 .038 .306

2003 . . . . 11,039 .053 .052 .066 .069 .018 .007 .013 .023 .265 .036 .301

2004 . . . . 11,681 .053 .051 .065 .070 .018 .007 .012 .023 .264 .035 .299

2005 . . . . 12,356 .053 .051 .064 .071 .018 .007 .012 .022 .263 .034 .296

2006 . . . . 13,068 .052 .050 .062 .072 .018 .007 .011 .021 .261 .033 .294

2007 . . . . 13,814 .052 .050 .061 .073 .018 .007 .011 .021 .259 .032 .291

2008 . . . . 14,550 .051 .049 .059 .074 .018 .007 .011 .020 .258 .031 .289

2009 . . . . 15,298 .051 .049 .057 .075 .018 .007 .011 .019 .256 .030 .286

2010 . . . . 16,070 .051 .049 .055 .075 .018 .007 .011 .019 .254 .029 .283

2011 . . . . 16,869 .051 .048 .053 .075 .018 .007 .011 .018 .252 .029 .281

2012 . . . . 17,690 .051 .048 .051 .075 .019 .007 .011 .018 .250 .028 .279

2013 . . . . 18,541 .051 .047 .050 .075 .019 .007 .011 .017 .248 .028 .276

2014 . . . . 19,424 .050 .047 .048 .074 .020 .007 .011 .017 .246 .028 .274

2015 . . . . 20,337 .050 .047 .047 .074 .020 .007 .011 .016 .245 .028 .272

2016 . . . . 21,285 .050 .046 .047 .073 .020 .007 .011 .016 .243 .027 .270

2017 . . . . 22,280 .050 .046 .046 .071 .021 .007 .012 .016 .241 .027 .268

2018 . . . . 23,319 .049 .046 .045 .070 .021 .007 .012 .016 .239 .028 .267

2019 . . . . 24,407 .049 .046 .045 .069 .021 .007 .012 .016 .237 .028 .265

2020 . . . . 25,539 .048 .045 .044 .068 .022 .007 .012 .015 .235 .028 .263

2021 . . . . 26,720 .048 .045 .044 .066 .022 .007 .012 .016 .233 .028 .261

2022 . . . . 27,952 .048 .045 .043 .065 .022 .008 .013 .016 .230 .028 .259

2023 . . . . 29,240 .047 .044 .043 .063 .023 .008 .013 .016 .228 .029 .257

2024 . . . . 30,589 .047 .044 .043 .061 .023 .008 .013 .016 .226 .029 .255

2025 . . . . 32,000 .046 .044 .043 .060 .023 .008 .013 .016 .224 .029 .253

2026 . . . . 33,478 .046 .043 .043 .058 .023 .008 .013 .017 .221 .030 .250
2002 SSI Annual Report

50

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

AND BENEFICIARY SERVICES COSTS

The SSI program is administered by the Social Security Administration. Section 201(g)(1) of the Social

Security Act provides that administrative expenses for the SSI program, including Federal administration

of State supplementation payments, may be financed from the OASDI Trust Funds. The trust funds are

reimbursed from the General Fund of the Treasury for any such SSI administrative expenditures. These

reimbursements include adjustments for any interest losses the trust funds may have incurred as a result of

such expenditures. The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving SSA the responsibility for the SSI

program because of its existing field office network and its administrative and automated data processing

facilities. Because of the integration of the administration of the SSI and OASDI programs, it was desirable to fund them from a single source, with reimbursement to the trust funds based on a General Accounting Office-approved method of cost analysis of the respective expenses of the SSI and OASDI programs,

and a final settlement by the end of the subsequent fiscal year required by law. Table IV.E1 provides historical data on selected administrative costs of the SSI program.

1 This activity funds the reimbursement to the OASI and DI Trust Funds from the General Fund of the

Treasury for the SSI program’s share of SSA’s administrative expenses.

2 Includes payments to State Vocational Rehabilitation (VR) agencies for VR services and payments for

referral and monitoring services for Drug Addicts and Alcoholics, which terminated effective January, 1997.

3 Reflects a one-time payment to State VR agencies for prior year expenses.

Table IV.E1.—Selected SSI Administrative Costs, Fiscal Years 1978-2002

[Outlays in millions] 

Fiscal year

Payments to the

trust funds 1 Beneficiary

services 2

1978.................................................................. $539 $31.6

1979.................................................................. 611 57.0

1980.................................................................. 668 33.1

1981.................................................................. 717 37.3

1982.................................................................. 780 12.0

1983.................................................................. 846 8.0

1984.................................................................. 864 3 84.0

1985.................................................................. 956 3.0

1986.................................................................. 1,023 7.2

1987.................................................................. 977 9.5

1988.................................................................. 976 12.9

1989.................................................................. 1,052 20.0

1990.................................................................. 1,075 28.3

1991.................................................................. 1,230 33.1

1992.................................................................. 1,426 36.0

1993.................................................................. 1,468 32.3

1994.................................................................. 1,780 33.8

1995.................................................................. 1,978 48.2

1996.................................................................. 1,953 71.8

1997.................................................................. 2,055 77.3

1998.................................................................. 2,304 46.0

1999.................................................................. 2,493 52.0

2000.................................................................. 2,321 53.7

2001.................................................................. 2,397 43.9

2002 (estimated)............................................... 2,767 75.0
51

2002 SSI Annual Report

V. APPENDICES

A. HISTORY OF PROVISIONS

Act

1. Basic Eligibility Requirements

1972

Public Law 92-603, 

enacted October 30

An individual may qualify for payments on the basis of age, blindness, or disability.

Aged: Any person aged 65 or older.

Blind: Any person with 20/200 or less vision in the better eye with the use of

correcting lenses, or with tunnel vision of 20 degrees or less. An individual

transferred from a State Aid to the Blind (AB) program is eligible if he/she

received such State aid in December 1973 and continues to meet the October

1972 State definition of blindness.

Disabled: Any person unable to engage in any substantial gainful activity by

reason of any medically determinable physical or mental impairment expected

to result in death or that has lasted or can be expected to last for a continuous

period of at least 12 months. For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred

from a State Aid to the Permanently and Totally Disabled (APTD) program to

SSI is also eligible if he/she received such State aid in December 1973 and continues to meet the October 1972 State definition of disability.

1973

Public Law 93-233, 

enacted December 31

Only persons who had received APTD before July 1973 and were on the rolls in

December 1973 may receive SSI on the basis of the State definition of disability; those who became eligible for State aid from July to December 1973 must

meet the Federal definition of disability.

1980

Public Law 96-265, 

enacted June 9

A disabled recipient who loses Federal SSI eligibility because of earnings at the

substantial gainful activity level may continue to receive a special benefit under

section 1619 and retain eligibility for Medicaid under title XIX of the Social

Security Act. This special benefit status may continue as long as the recipient

has the disabling impairment and meets all nondisability SSI eligibility criteria.

States have the option of supplementing this special benefit.

This provision of the law was in effect from January 1, 1981, through

December 31, 1983. Beginning in January 1984, under a 1-year demonstration

project, this provision was continued for persons already eligible for either regular SSI payments or special monthly benefits.

1984

Public Law 98-460, 

enacted October 9 

The special benefit and Medicaid provisions of the 1980 legislation were

extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-643, 

enacted November 10

The special benefit and Medicaid provisions of the 1980 amendments 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.
2002 SSI Annual Report

52

Act

1996

Public Law 104-193, 

enacted August 22

For individuals under age 18, the “comparable severity” standard is eliminated

and replaced with a requirement that a child be considered disabled if he/she has

a medically determinable impairment that results in “marked and severe functional limitations,” and meets the existing statutory duration requirement. The

law also eliminates references to “maladaptive behaviors” in the Listing of

Impairments for children, and discontinues the use of individualized functional

assessments for children.

SSI eligibility is prohibited for an individual in any month during which such an

individual is a fugitive felon, fleeing prosecution, or violating State or Federal

conditions of probation or parole. In addition, SSI eligibility is prohibited for

10 years for those convicted of fraudulently claiming residence to obtain benefits simultaneously in two or more States. 1

2. Other Eligibility Provisions

a. Citizenship and Residence

1972

Public Law 92-603, 

enacted October 30

The individual must reside within one of the 50 States or the District of Columbia and be a citizen or an alien lawfully admitted for permanent residence or

permanently residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such

a month.

1976

Public Law 94-241, 

enacted March 24

Eligibility for SSI is extended to residents of the Northern Mariana Islands,

effective January 9, 1978.

1980

Public Law 96-265, 

enacted June 9

The income and resources of the immigration sponsors of aliens applying for

SSI are considered in determining eligibility for and the amount of payment.

After allowances for the needs of the sponsor and his/her family, the remainder

is deemed available for the support of the alien applicant for a 3-year period

after admission to the United States for permanent residence. This provision

does not apply to those who become blind or disabled after admission, to refugees, or to persons granted political asylum. (See section 2.g. for subsequent

changes to sponsor-to-alien deeming provisions.)

1989

Public Law 101-239, 

enacted December 19

SSI eligibility is continued for a disabled or blind child who was receiving SSI

benefits while living in the United States and is now living with a parent who is

a member of the U.S. Armed Forces assigned to permanent duty ashore outside

the United States, but not where the parent is stationed in Puerto Rico or the territories and possessions of the United States.

1993

Public Law 103-66, 

enacted August 10

Above provision made applicable where the parent is a member of the U.S.

Armed Forces and stationed in Puerto Rico or the territories and possessions of

the United States.

1This last provision was repealed in 1999 by Public Law 106-169 and replaced with a provision providing for nonpayment of benefits for up to 24 months for making false or misleading statements regarding material facts.
53

2002 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Prohibits SSI eligibility for anyone who is not a U.S. citizen or national unless

they are in a “qualified alien” category and meet one of certain exceptions such

as lawful permanent residents who earn or can be credited with 40 qualifying

quarters of earnings, certain refugee type categories eligible for up to 5 years of

time limited eligibility, or active duty U.S. military or veterans and their spouses

and children. Extends eligibility for aliens receiving SSI as of August 22, 1996

(the enactment date of the law) for 1 year after the enactment date for those

aliens found ineligible under the new standards.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add to the list of “qualified aliens” certain noncitizens (and their children) who have been battered or subjected to extreme cruelty by a spouse or parent or a member of the spouse’s or parent’s family living

in the same household.

1997

Public Law 105-18, 

enacted June 12

Extends eligibility for aliens receiving SSI as of August 22, 1996, until

September 30, 1997, for those found ineligible under the new alien standards of

Public Law 104-193.

Public Law 105-33, 

enacted August 5

Further amends Public Law 104-193 to add Cuban and Haitian entrants, and the

child of a parent who has been battered or subjected to extreme cruelty, to the

list of qualified aliens. Provides that Cuban and Haitian entrants and Amerasian

immigrants qualify for time limited eligibility, and increases the time limit from

5 to 7 years for all time-limited categories. Additional exceptions are added for

qualified aliens: (1) lawfully residing in the United States and receiving SSI

benefits on August 22, 1996; and (2) lawfully residing in the United States on

August 22, 1996 and meeting the definition of blind or disabled in the Social

Security Act.

Certain noncitizen American Indians are excepted from the alien nonpayment

provisions of Public Law 104-193.

Extends eligibility for “nonqualified aliens” receiving SSI as of August 22,

1996, until September 30, 1998.

1998

Public Law 105-306, 

enacted October 28

Permanently extends eligibility of all remaining “nonqualified aliens” who

were receiving SSI benefits when Public Law 104-193 was enacted on

August 22, 1996.

2000

Public Law 106-386, 

enacted October 28

Noncitizens, regardless of their immigration status, may be eligible for SSI to

the same extent as refugees, if they are determined to be victims of “severe

forms of trafficking in persons.”

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.
2002 SSI Annual Report

54

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

1972

Public Law 92-603, 

enacted October 30

Any disabled individual who has been medically determined to be an alcoholic

or drug addict must accept appropriate treatment, if available, in an approved

facility and demonstrate compliance with conditions and requirements for treatment.

SSI payments are required to be made through a representative payee—another

person or public or private agency designated by SSA to manage the recipient’s

benefit on his/her behalf.

1994

Public Law 103-296, 

enacted August 15

Any individual who is receiving SSI based on a disability where drug addiction

or alcoholism is a contributing factor material to the finding of disability must

comply with the DA&A treatment requirements. The individual must accept

appropriate treatment when it is available and comply with the conditions and

terms of treatment. Instances of noncompliance with the requirements result in

progressively longer payment suspensions. Before payments can resume, the

individual must demonstrate compliance for specific periods; 2 months, 3

months, and 6 months, respectively, for the first, second, third and subsequent

instances of noncompliance. An individual who is not in compliance with the

DA&A treatment requirements for 12 consecutive months shall not be eligible

for payments; however, this does not prevent such individuals from reapplying

and again becoming eligible for payments.

SSI disability payments based on DA&A are also limited to a total of 36 benefit

months (beginning March 1995) regardless of whether appropriate treatment is

available. Months for which benefits are not due and received do not count

towards the 36-month limit.

Payments based on DA&A must be made to a representative payee. Preference

is required to be given to community based nonprofit social service agencies

and Federal, State, or local government agencies in representative payee selection. These agencies when serving as payees for individuals receiving payments

based on DA&A may retain the lesser of 10 percent of the monthly benefit or

$57 (indexed to the Consumer Price Index (CPI)) as compensation for their services.

Establishment of one or more referral and monitoring agencies for each State is

required.

1996

Public Law 104-121, 

enacted March 29

An individual is not considered disabled if DA&A is a contributing factor material to a finding of disability.

Applies DA&A representative payee requirements enacted under Public

Law 103-296 to disabled SSI recipients who have a DA&A condition and are

incapable of managing their benefits. In addition, these recipients shall be

referred to the appropriate State agency administering the State plan for substance abuse treatment.

d. Institutionalization

1972

Public Law 92-603, 

enacted October 30

An individual who is an inmate of a public institution is ineligible for SSI payments unless the institution is a facility approved for Medicaid payments and is

receiving such payments on behalf of the person. Under regulations, the Medicaid payment must represent more than 50 percent of the cost of services provided by the facility to the individual.
55

2002 SSI Annual Report

Act

1976

Public Law 94-566, 

enacted October 20

An inmate of a publicly operated community residence serving no more than

16 persons may, if otherwise eligible, receive SSI.

1983

Public Law 98-21, 

enacted April 20

Payments may be made to persons who are residents of public emergency shelters for the homeless for a period of up to 3 months in any 12-month period.

1986

Public Law 99-643, 

enacted November 10

Effective July 1, 1987, disabled or blind recipients who were receiving special

SSI payments or had special SSI recipient status under section 1619 in the

month preceding the first full month of institutionalization, may receive payments based on the full Federal benefit rate for the initial 2 full months of institutionalization, if they reside in certain public medical, psychiatric or Medicaid

facilities, or in private Medicaid facilities.

1987

Public Law 100-203, 

enacted December 22

Effective January 1, 1988, payments may be made to persons who are residents

of public emergency shelters for the homeless, for up to 6 months in a 9-month

period.

Effective July 1, 1988, continued payment of SSI benefits for up to 3 months is

permitted, at the rate that was applicable in the month prior to the first full

month of institutionalization, for individuals whose expected institutional stay

on admission is not likely to exceed 3 months, as certified by a physician, and

for whom the receipt of benefits is necessary to maintain living arrangements to

which they may return.

1996

Public Law 104-193, 

enacted August 22

Effective December 1996, institutionalized children under age 18 whose private

health insurance is making payments to the institution may receive no more than

$30 per month in Federal SSI.

e. Vocational Rehabilitation and Treatment

1972

Public Law 92-603, 

enacted October 30

Blind or disabled individuals receiving Federal SSI benefits who are under age

65, must be referred to the State agency providing services under the Vocational

Rehabilitation Act and must accept the services offered. States are reimbursed

for the cost of services.

1976

Public Law 94-566, 

enacted October 20

Blind or disabled children under age 16 must be referred to the State agency

administering crippled children’s services or to another agency designated by

the State. States are reimbursed for the cost of services.

Of funds provided for these services, at least 90 percent must be used for children under age 6 or for those who have never attended public schools.

1980

Public Law 96-265, 

enacted June 9

Disabled SSI recipients who medically recover while enrolled in approved

vocational rehabilitation programs of State VR agencies, may continue to

receive benefits during their participation in such programs if the Commissioner

of Social Security determines that continuation in the program will increase the

probability that they leave the rolls permanently.
2002 SSI Annual Report

56

Act

1981

Public Law 97-35, 

enacted August 13

Funding no longer provided under title XVI for medical, social, developmental

and rehabilitative services to disabled or blind children.

Reimbursement for the cost of rehabilitation services will be made if the services result in the recipient’s return to work.

1984

Public Law 98-460, 

enacted October 9

Authorizes the reimbursement of States for the cost of VR services provided to

individuals who (1) continue to receive benefits after medical recovery because

they are participating in a State VR program or (2) refuse, without good cause,

to continue in or cooperate with the VR program in which they had been participating.

1987

Public Law 100-203, 

enacted December 22

Provision for continuation of payments to SSI recipients who have medically

recovered while enrolled in an approved vocational rehabilitation program

extended to blind SSI recipients.

1990

Public Law 101-508, 

enacted November 5

Reimbursement authorized for the cost of vocational rehabilitation services provided in months in which the individual was not receiving Federal SSI payments, if:

 • SSI recipient status for Medicaid eligibility purposes was retained under

work incentive provisions, or 

 • Benefits were in suspense 1 status (for a reason other than cessation of disability or blindness), or

 • Federally-administered State supplementation was received.

Extends the provision providing for benefit continuation to SSI recipients who

medically recover while participating in a State VR program to include SSI

recipients participating in a non-State VR program.

1999

Public Law 106-170, 

enacted December 17

Establishes a 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 of their choice.

f. Continuing Disability Reviews and Eligibility Redeterminations

1994

Public Law 103-296, 

enacted August 15

During each of fiscal years 1996, 1997, and 1998, requires SSA to conduct continuing disability reviews (CDRs) on a minimum of 100,000 SSI recipients. In

addition, during the same period, requires SSA to redetermine the SSI eligibility

of at least one-third of all childhood SSI recipients who reach age 18 after April

1995 during the 1-year period following attainment of age 18. Redeterminations

for persons turning age 18 could count toward the 100,000 CDR requirement.

1 Recipients who have lost eligibility for SSI benefits for fewer than 13 consecutive months are in suspended payment

status.
57

2002 SSI Annual Report

Act

1996

Public Law 104-193, 

enacted August 22

Repeals the requirement that SSA redetermine the eligibility of at least one-third

of all childhood SSI recipients who reach age 18 after April 1995 during the

1-year period following attainment of age 18.

Requires a CDR:

 • At least once every 3 years for SSI recipients under age 18 who are eligible

by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is

a contributing factor material to the determination of their disability.

Requires eligibility redetermination for all childhood SSI recipients eligible for

the month before the month in which they attain age 18.

Requires redetermination of eligibility for children considered disabled based

on an individual functional assessment and/or consideration of maladaptive

behavior.

Requires the representative payee of a childhood disability recipient whose continuing eligibility is being reviewed to present evidence that the recipient is

receiving treatment which is considered medically necessary and available for

the condition which was the basis for providing SSI benefits.

1997

Public Law 105-33, 

enacted August 5

Modifies provision of Public Law 104-193 to extend from 12 to 18 months the

period for redetermining the disability of children under age 18 under the new

childhood disability standard.

Modifies provision of Public Law 104-193 to permit SSA to schedule a CDR

for a disabled child for whom low birth weight is a contributing factor material

to the determination of disability, at a date after the child’s first birthday if the

Commissioner determines the impairment is not expected to improve within 12

months of the child’s birth.

Modifies provision of Public Law 104-193 to provide SSA the authority to

make redeterminations of disabled childhood recipients who attain age 18, more

than 1 year after the date such recipient attains age 18.

1999

Public Law 106-170, 

enacted December 17

Prohibits the initiation of a CDR during the period that a recipient is “using a

ticket” under the Ticket to Work program.

g. Deeming of Income and Resources

1972

Public Law 92-603, 

enacted October 30

Deeming occurs when the income and resources of certain family members living in the same household with the SSI recipient are considered in determining

the amount of the SSI payment. These family members are the ineligible spouse

of an adult recipient and the ineligible parents of a child recipient under age 21.

After deduction of personal allocations for the spouse (or parents) and for ineligible children in the home, and after application of income exclusions, any

remaining income of the spouse (or parents) is added to the income of the eligible person.

1980

Public Law 96-265, 

enacted June 9

Children aged 18 or older are not subject to parental deeming.

Sponsor’s income and resources deemed to an alien for 3 years.
2002 SSI Annual Report

58

Act

1989

Public Law 101-239, 

enacted December 19

Disabled children receiving home care services under State Medicaid programs,

who are ineligible for SSI because of deeming of parental income, and who

received SSI benefits limited to $30 while in a medical treatment facility, may

receive the $30 monthly allowance that would be payable if the recipient were

institutionalized.

1993

Public Law 103-152, 

enacted November 24

Sponsor-to-alien deeming period extended from 3 years to 5 years, effective

January 1, 1994, through September 30, 1996.

Considers an ineligible spouse or parent who is absent from the household due

to active military service to be a member of the household for deeming purposes.

1996

Public Law 104-193, 

enacted August 22

Deeming of income and resources from an immigration sponsor to a noncitizen

continues until citizenship, with exceptions for those who earn, or can be credited with, 40 qualifying quarters of earnings. Effective for those whose sponsor

signs a new legally enforceable affidavit of support.

Public Law 104-208, 

enacted September 30

Amends Public Law 104-193 to add two exceptions to the sponsor-to-alien

deeming:

 • Provides that if the noncitizen is indigent and would be unable to obtain

food and shelter without SSI benefits even after receiving support from the

sponsor, then only the amount of income and resources actually provided

by the sponsor will be counted for a 12-month period after a determination

of indigence; and

 • Provides that in certain cases, deeming would not apply for a 12-month

period (with some options for extension) if the noncitizen (or his/her children) has been battered, or subjected to extreme cruelty by family members.

1997

Public Law 105-33, 

enacted August 5

Amends Public Law 104-208 to add an additional exception to sponsor-to-alien

deeming when the parent of a noncitizen has been battered or subjected to

extreme cruelty by family members.

3. Federal Benefit Payments

a. Windfall Offset

1980

Public Law 96-265, 

enacted June 9

Offset (by reduction of retroactive Social Security benefits) to prevent persons

whose initial OASDI payment is retroactive from receiving more in total benefits for the same period than if they were paid the benefits when regularly due.

1984

Public Law 98-617, 

enacted November 8

Offset provision expanded to allow for reduction of retroactive SSI benefits and

to apply in cases of OASDI benefit reinstatement.

b. Proration of Benefit

1982

Public Law 97-248, 

enacted September 3

Benefit for first month of eligibility to be prorated by the number of days in the

month for which an application has been filed and there is eligibility.
59

2002 SSI Annual Report

Act

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.

d. Uncashed Checks

1981

Public Law 97-35, 

enacted August 13

States that have Federally-administered supplements to be credited their share

of SSI checks that remain unnegotiated for 180 days.

1987

Public Law 100-86, 

enacted August 10

SSI checks now unnegotiable after 1 year. States are credited their share of SSI

checks after 1 year rather than 180 days.

e. Rounding of Payment Amounts

1982

Public Law 97-248, 

enacted September 3

Cost-of-living adjustments in the Federal SSI benefit and income eligibility levels are to be rounded to the next lower whole dollar, after the adjustment is calculated. Subsequent cost-of-living adjustments will be calculated on the

previous year’s benefit standard before rounding.

f. Penalties Resulting in Nonpayment of Benefits for False or Misleading 

Statements

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 made a statement or representation of material fact for use

in determining eligibility for benefits that the individual knew, or should have

known, was false or misleading or omitted a material fact.
2002 SSI Annual Report

60

4. Federal Benefit Rates

Basic benefit standards are used in computing the amount of Federal SSI payments. Benefit levels differ

for individuals and couples living in households and for persons in Medicaid institutions. Individuals or

couples living in their own households receive the full Federal benefit. If an individual or couple is living

in another person’s household and receiving support and maintenance there, the Federal benefit is reduced

by one-third. The Federal benefit rates for persons in households are increased annually to reflect

increases in the cost of living. Legislation affecting the level of Federal benefit rates since the inception of

the SSI program are summarized in table V.A1.

1 For those in another person’s household receiving support and maintenance there, the Federal benefit rate is reduced by one-third. 2 For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.

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

4 Includes persons in private institutions whose care in not provided by Medicaid.

5 Public Law 93-66, enacted July 9, 1973.

6 Public Law 93-233, enacted December 31, 1973.

7 Public Law 93-368, enacted August 7, 1974.

8 Subject to automatic provisions, see table IV.A2.

9 Public Law 98-21, enacted April 20, 1983. 10 Public Law 100-203, enacted December 22, 1987.

Table V.A1.—Federal Benefit Rates Set by Legislation

Act Living arrangements 1

Amount 2

Individual Couple Conditions

1972 3 ....... Own household 4 $130.00 $195.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 5 ....... — 140.00 210.00 Was to be effective January 1, 1974; superseded by Public Law 

93-233.

1973 6 ....... — 140.00 210.00 Effective January 1, 1974.

1973 6 ....... — 146.00 219.00 Effective July 1, 1974.

1974 7 ....... — — — Mechanism established for providing cost-of-living 

adjustments coordinated with earlier legislation applying to 

OASDI cash benefits. SSI payments to be increased by the 

same percentage as OASDI benefits and at the same time.

— 8157.70 8 236.60 Effective July 1, 1975.

1983 9 ....... — 304.30 456.40 Effective July 1, 1983 (general benefit increase).

— 8 314.00 8 472.00 Effective January 1, 1984.

1973 5 ....... Increment for 

“essential person” 

in household

65.00 — Was to be effective January 1, 1974. For persons transferred 

from OAA, AB, or APTD programs who were receiving 

payments in December 1973 under a State plan that took 

account of “essential persons” in the household.

— 70.00 — Was to be effective July 1, 1974.

1973 6 ....... — 70.00 — Effective January 1, 1974.

— 73.00 — Effective July 1, 1974.

1974 7 ....... — — — Mechanism established for providing cost-of-living 

adjustments.

— 8 78.90 — Effective July 1, 1975.

1983 9 ....... — 152.50 — Effective July 1, 1983 (general benefit increase).

— 8 157.00 — Effective January 1, 1984.

1972 3 ....... Receiving institutional 

care covered by 

Medicaid

25.00 50.00 Effective January 1, 1974. Must be receiving more than 50 

percent of the cost of the care from Medicaid (title XIX of 

the Social Security Act).

1987 10 ..... — 30.00 60.00 Effective July 1, 1988. Must be receiving more than 50 percent 

of the cost of the care from Medicaid (title XIX of the Social 

Security Act).
61

2002 SSI Annual Report

Act 5. Exclusions from Income

a. General Exclusions

1972

Public Law 92-603, 

enacted October 30

The first $60 of earned or unearned income per calendar quarter for an individual or couple; the next $195 and one-half the remainder of quarterly earned

income. Unearned income includes Social Security benefits, other government

or private pensions, veterans’ benefits, and workers’ compensation.

1981

Public Law 97-35, 

enacted August 13

The first $20 of earned or unearned income per month for an individual or couple; the next $65 and one-half the remainder of monthly earned income.

Unearned income includes Social Security benefits, other government or private

pensions, veterans’ benefits, and workers’ compensation.

2000

Public Law 106-554, 

enacted December 21

Earnings of persons defined as Social Security statutory employees are treated

as self-employment income for SSI purposes.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Any amount of tax rebate issued to an individual by any public agency that is

based on either real property or food purchase taxes.

Grants, scholarships, and fellowships used to pay tuition and fees at an educational institution.

Income required for achieving an approved self-support plan for blind or disabled persons.

Work expenses of blind persons.

For blind persons transferred from State programs to SSI, income exclusions

equal to the maximum amount permitted as of October 1972 under the State

programs.

Irregularly or infrequently received income totaling $60 or less of unearned

income and $30 of earned income in a calendar quarter.

Payment for foster care of ineligible child residing in recipient’s home through

placement by a public or private nonprofit child care agency.

One-third of any payment received from an absent parent for the support of a

child eligible for SSI.

Certain earnings of a blind or disabled child under age 22 regularly attending an

educational institution.

State or local government cash payments based on need and designed to supplement SSI payments.

1976

Public Law 94-331, 

enacted June 30

Disaster assistance from income for 9 months and application of one-third

reduction for 6 months for certain victims of disasters occurring between January 1, 1976 and December 31, 1976.

Public Law 94-566, 

enacted October 20

Any assistance based on need (including vendor payments) made to or on behalf

of SSI recipients, which is paid and wholly funded by State or local governments.

The value of assistance provided under certain Federal housing programs.
2002 SSI Annual Report

62

Act

1977

Public Law 95-113, 

enacted September 29

Food stamps, Federally donated food, and the value of free or reduced price

food for women and children under the Child Nutrition Act and National School

Lunch Act.

Public Law 95-171, 

enacted November 12

Provisions for exclusions for support and maintenance under the Disaster Relief

and Emergency Assistance Act of 1974 extended on a permanent basis. Effective January 1, 1978.

1980

Public Law 96-222, 

enacted April 1

Earned income tax credit treated as earned income (temporarily excluded from

1975 through 1980).

Public Law 96-265, 

enacted June 9

Remunerations received in sheltered workshops and work activity centers are

considered earned income and qualify for earned income exclusions.

Impairment-related work expenses paid by the individual (including cost for

attendant care, medical equipment, drugs, and services necessary to control an

impairment) are deducted from earnings when determining if an individual is

engaging in substantial gainful activity. Impairment-related work expenses are

excluded in calculating income for benefit purposes if initial eligibility for benefits exists on the basis of countable income without applying this exclusion.

1981

Public Law 97-35, 

enacted August 13

Modifies provision under which irregularly or infrequently received income is

excluded to conform to change from quarterly to monthly accounting; amounts

excludable: $20 or less of unearned income and $10 of earned income in a

month.

1982

Public Law 97-377, 

enacted December 21

From December 18, 1982, to September 30, 1983, certain home energy assistance payments are excluded if a State agency certified that they are based on

need.

1983

Public Law 97-424, 

enacted January 6

Support or maintenance assistance (including home energy assistance) provided

in kind by a nonprofit organization or in cash or in kind by certain providers of

home energy is excluded if the State determines that the assistance is based on

need. Provision is applicable through September 1984.

Certain home energy assistance payments are excluded if a State agency certified that the assistance is based on need. Provision is applicable through June

1985.

1984

Public Law 98-369, 

enacted July 18

The 1983 provisions for support and maintenance and home energy assistance

continue to October 1, 1987.

1986

Public Law 99-498, 

enacted October 17

Educational assistance used for educational expenses under the Higher Education Act of 1965 as amended.

1987

Public Law 100-203, 

enacted December 22

The 1983 provisions for support and maintenance and home energy assistance

made permanent.

Death payments (for example, proceeds from life insurance) from SSI income

determinations to the extent they were spent on last illness and burial.

Modifies the 1982 resource exclusion for burial funds to extend the exclusion to

any burial fund of $1,500 or less maintained separately from all other assets,

thereby allowing the interest on the funds to be excluded from income if

retained in the fund.
63

2002 SSI Annual Report

Act

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.

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.
2002 SSI Annual Report

64

Act 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 handicapped person.

Life insurance with face value of $1,500 or less.

1976

Public Law 94-569, 

enacted October 20

The recipient’s home, regardless of value, is excluded from consideration in

determining resources.

1977

Public Law 95-171, 

enacted November 12

Assistance received under the Disaster Relief and Emergency Assistance Act of

1974 for 9 months following receipt.

1979 Reasonable value for an automobile increased by regulation to $4,500 of current-market value; personal goods and household effects increased to $2,000 of

equity value.

1982

Public Law 97-248, 

enacted September 3

The value, within prescribed limits, of a burial space for the recipient, spouse,

and immediate family is excluded. In addition, $1,500 each (less the value of

already excluded life insurance and any amount in an irrevocable burial arrangement) may be set aside for the burial of the recipient and spouse, if held in separately identifiable burial funds and if inclusion of any of the burial funds in

countable resources would cause the resource limit to be exceeded.

1984

Public Law 98-369, 

enacted July 18

The unspent portion of any retroactive title II or title XVI payment is excluded

for 6 months following its receipt, and the individual must be given written

notice of the time limit on the exclusion.

1985 Regulations permit exclusion, regardless of value, of an automobile needed for

essential transportation or modified for a handicapped person. The $4,500 current market value limit applies only if no automobile could be excluded based

on the nature of its use.
65

2002 SSI Annual Report

Act

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).

Allows the exclusion of burial funds, as described above, regardless of whether

or not counting any portion of those funds would result in excess resources.

1988

Public Law 100-707, 

enacted November 23

Removes the time limit for exclusion of disaster assistance.

b. Special Exclusions

1972

Public Law 92-603, 

enacted October 30

Assets of a blind or disabled individual that are necessary to an approved plan of

self-support.

Tools and other property essential to self-support (PESS), within reasonable

limits. Shares of nonnegotiable stock in regional or village corporations held by

natives of Alaska.

For persons transferred from State programs to SSI, resource exclusions equal to

the maximum amount permitted as of October 1972 under the State program.

1988

Public Law 100-383, 

enacted August 10

Restitution payments made to Japanese internees and relocated Aleutians.

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.
2002 SSI Annual Report

66

Act

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.

c. Transfer-of-Assets Penalties

1980

Public Law 96-611, 

enacted December 28

Assets transferred for less than fair market value for the purpose of establishing

eligibility for benefits under the Social Security Act are counted as resources for

24 months after transfer.

1988

Public Law 100-360, 

enacted July 1

Removes the transfer-of-assets penalty for transfers made July 1, 1988, or later.

1999

Public Law 106-169, 

enacted December 14

Provides a penalty under the SSI program for the disposal of resources at less

than fair market value. The penalty is a loss of benefits for up to 36 months. A

formula is provided to determine the number of months.

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.
67

2002 SSI Annual Report

Act

1990

Public Law 101-508, 

enacted November 5

Extends the period for receipt of payments to 6 months.

b. Emergency Advance Payments

1972

Public Law 92-603, 

enacted October 30

Any applicant who can be presumed to meet the criteria of eligibility, but has

not yet been determined eligible, and who is faced with a financial emergency

may receive an immediate cash advance of up to $100.

1987

Public Law 100-203, 

enacted December 22

Increases the maximum emergency advance payment amount to the maximum

amount of the regular Federal SSI monthly benefit rate, plus, if any, the Federally-administered State supplementary payment.

1996

Public Law 104-193, 

enacted August 22

Applicants who have a financial emergency may receive an emergency advance

payment in the month of application, which, effective with this law, is always

prior to the first month of eligibility. These advance payments are recouped by

proportional reductions in the recipient’s first 6 months of SSI benefits.

c. Interim Assistance Reimbursement

1974

Public Law 93-368, 

enacted August 7

SSA may enter into agreements with the States to repay them directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The repayment is made from the first check due to the individual. This

legislation expires June 30, 1976.

1976

Public Law 94-365, 

enacted July 14

The authority to repay the State for interim assistance is made permanent.

1987

Public Law 100-203, 

enacted December 22

Extends interim assistance reimbursement to situations in which payments are

made by States or political subdivisions to persons whose SSI payments were

suspended or terminated and who subsequently are found to be eligible for such

benefits. Also clarifies that the payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim

period.

8. Medicaid Eligibility

1972

Public Law 92-603, 

enacted October 30

States can provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the

State Medicaid plan in effect on January 1, 1972.

States can accept SSA determination of eligibility, or make their own determination.

1976

Public Law 94-566, 

enacted October 20

Preserves the Medicaid eligibility of recipients who become ineligible for cash

SSI payments due to the cost-of-living increases in Social Security benefits.
2002 SSI Annual Report

68

Act

1980

Public Law 96-265, 

enacted June 9

Blind or disabled recipients under age 65 no longer eligible for either regular or

special SSI payments because of their earnings may retain SSI recipient status

for Medicaid eligibility purposes under the following conditions: (1) they continue to have the disabling impairment, (2) they meet all nondisability eligibility

criteria except for earned income, (3) they would be seriously inhibited from

continuing employment without Medicaid services, and (4) their earnings are

insufficient to provide a reasonable equivalent of SSI payments and Medicaid.

In States that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid benefits depends on the State’s specific eligibility and program requirements.

The Medicaid provision of the 1980 legislation was in effect from January 1,

1981, through December 31, 1983. Under a 1-year demonstration project,

beginning January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.

1984

Public Law 98-460, 

enacted October 9

Medicaid provision of 1980 legislation extended through June 30, 1987 (retroactive to January 1, 1984).

1986

Public Law 99-272, 

enacted April 7

Restores Medicaid eligibility for some disabled widow(er)s who became ineligible for SSI when their title II benefits increased in 1984 because of a change in

the Social Security disabled widow(er)s benefits reduction factor.

Public Law 99-643, 

enacted November 10

The SSI recipient status for Medicaid eligibility provision of the 1980 amendments is made permanent.

Effective July 1, 1987, certain expenses are excluded from earnings when determining sufficiency of earnings to establish SSI recipient status eligibility for

Medicaid purposes:

 • Impairment-related work expenses of disabled persons,

 • Work expenses of blind persons,

 • Income required for achieving an approved self-support plan, and

 • The value of publicly funded attendant care services.

Effective July 1, 1987, preserves the Medicaid eligibility of recipients who

become ineligible for SSI payments because of entitlement to, or an increase in,

Social Security disabled adult child benefits on or after the effective date.

Effective July 1, 1987, requires all States to provide Medicaid coverage for

recipients in special SSI status (either receiving special SSI payments or in the

special recipient status described for 1980) if they received Medicaid coverage

the month before special SSI status.

1987

Public Law 100-203, 

enacted December 22

Effective July 1, 1988, restores or preserves the Medicaid eligibility of persons

aged 60 or older who are eligible for Social Security benefits as widows or widowers (but not eligible for Medicare) and who become ineligible for SSI payments or State supplementation because of the receipt of old-age or survivors

insurance benefits under Social Security.
69

2002 SSI Annual Report

Act

1990

Public Law 101-508, 

enacted November 5

Age limit for retention of SSI recipient status for Medicaid eligibility purposes

(1980 and subsequent work incentive provisions, above) is eliminated.

Preserves the Medicaid eligibility of SSI recipients who become ineligible for

payments when they become entitled to Social Security disabled widow(er)s

benefits following the revised definition used for their disability.

1997

Public Law 105-33, 

enacted August 5

Requires States to continue Medicaid coverage for disabled children who were

receiving SSI payments as of August 22, 1996 and would have continued to be

eligible for such payments except that their eligibility terminated because they

did not meet the revised SSI childhood disability standard established under

Public Law 104-193.

9. State Supplementation

1972

Public Law 92-603, 

enacted October 30

States are given the option of providing supplementary payments both to recipients transferred from the State program and to those newly eligible for SSI.

States may either administer the payments themselves or have the Social Security Administration make payments on their behalf. When State supplementary

payments are Federally-administered, the Social Security Administration makes

eligibility and payment determinations for the State and assumes administrative

costs.

“Hold harmless” protection, which limits a State’s fiscal liability to its share of

OAA, AB, and APTD expenditures for calendar year 1972, is provided to States

electing Federal administration of their supplementary plans. This provision

applies only to supplementary payments that do not, on the average, exceed a

State’s “adjusted payment level.” (The adjusted payment level is the average of

the payments that individuals with no other income received in January 1972; it

may include the bonus value of food stamps. Adjustments are provided for payments that had been below State standards.)

1973

Public Law 93-66, 

enacted July 9

Provision is made for mandatory State supplementation as assurance against

reduction of income for persons who received State assistance in December

1973 and were transferred to SSI. These supplementary payments must equal

the difference between (1) the amount of the State assistance payment that the

individual received in December 1973 plus other income and (2) his/her Federal

SSI payment plus other income.

1976

Public Law 94-585, 

enacted October 21

After June 30, 1977, when the Federal SSI payment level is increased by a costof-living increase, such an increase will be excluded in calculating the “hold

harmless” amount.

Requires States to maintain State supplementation payments at the level of

December 1976 (“maintenance of payments”) or to continue to pay in supplements the same total annual amounts (“maintenance of expenditures”) when the

Federal SSI payment level is increased and thereby pass through any increases

in Federal benefits without reducing State supplements.

1982

Public Law 97-248, 

enacted September 3

Begins a 3-year phase out of “hold harmless” protection. Effective with fiscal

year 1985, Wisconsin and Hawaii (the only remaining “hold harmless” States)

assumed the full cost of their supplementary payments.
2002 SSI Annual Report

70

Act

1983

Public Law 98-21, 

enacted April 20

Federal pass-through law is adjusted (1) by substituting the State supplementary

payment levels in effect in March 1983 for those in effect in December 1976 as

the levels that States must maintain in complying with the pass-through requirements, and (2) with regard to the $20 (individual) and $30 (couple) increase in

the Federal SSI standard in July 1983, by requiring States to pass through only

as much as would have been required if the SSI cost-of-living adjustment had

been made in July 1983.

1987

Public Law 100-203, 

enacted December 22

Provides for Federal administration of State supplements to residents of medical

institutions.

Provides for required pass through of $5 increase in Federal rate for persons

whose care in institutions is paid in substantial part by Medicaid.

1993

Public Law 103-66, 

enacted August 10

Requires States to pay fees for Federal administration of their State supplementation payments. The fees are $1.67 for each monthly supplementary payment in

fiscal year 1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year 1996. Fees

for subsequent fiscal years will be $5.00 or another amount determined by the

Commissioner to be appropriate. The Commissioner may charge the States

additional fees for services they request that are beyond the level customarily

provided in administering State supplementary payments.

1997

Public Law 105-33, 

enacted August 5

Revises the schedule of per-payment fees for Federal administration of State

supplementation for fiscal years 1998 ($6.20) through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002.

1999

Public Law 106-170, 

enacted December 17

A State which has an agreement with SSA to administer its supplementation

payments, must remit both payments and fees prior to the SSI payment date.

2000

Public Law 106-554, 

enacted December 21

Changes the effective date of above provision from 2009 to 2001.

10. Overpayment Recovery

1984

Public Law 98-369, 

enacted July 18

Limits the rate of recovering overpayments from monthly payments to the lesser

of: (1) the monthly payment, or (2) 10 percent of a recipient’s monthly income.

Permits a higher or lower adjustment at the request of the recipient subject to the

agreement of the Commissioner. The limit does not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part

of the recipient or spouse in connection with the overpayment.

Waives recovery of certain overpayments due to amount of excess resources of

$50 or less.

Provides temporary authority for the recovery of overpayments from tax

refunds.

1988

Public Law 100-485, 

enacted October 13

Grants permanent authority to recover overpayments from tax refunds. 
71

2002 SSI Annual Report

Act

1998

Public Law 105-306, 

enacted October 28

Authorizes SSA to collect SSI overpayments by offsetting Social Security benefits, with a maximum monthly offset of no more than 10 percent of the Social

Security benefit.

1999

Public Law 106-169, 

enacted December 14

Makes representative payees liable for an SSI overpayment caused by a payment made to a recipient who has died, and requires SSA to establish an overpayment control record under the representative payee’s Social Security

number. 

Requires SSA to recover SSI overpayments from SSI lump-sum amounts by

withholding at least 50 percent of the lump-sum payment or the amount of the

overpayment, whichever is less.

Extends all of the debt collection authorities currently available for the collection of overpayments under the OASDI program to the SSI program.
2002 SSI Annual Report

72

B. INCOME AND RESOURCE EXCLUSIONS

1. Earned Income Exclusions

 • Any refund of Federal income taxes received under section 32 of the Internal Revenue Code (relating

to earned income tax credit) and any payment received under section 3507 of the Internal Revenue

Code (relating to advance payment of earned income tax credit);

 • Any refundable child tax credit (which increases gradually from the current amount of $600 for each

child to $1,000 per child in 2010);

 • Up to $10 of earned income in a month if it is infrequent or irregular, that is, if it is received only once

in a calendar quarter from a single source or if its receipt cannot reasonably be expected (If the total

amount of the infrequent or irregular income exceeds $10, this exclusion cannot be used.);

 • Up to $1,320 per month but not more than $5,340 in a calendar year received by a blind or disabled

child who is a student regularly attending school;

 • Any portion of the monthly $20 exclusion for unearned income that has not been used;

 • $65 of earned income in a month;

 • Amounts used to pay impairment-related work expenses if a recipient is disabled (but not blind) and

under age 65 or is disabled (but not blind) and receiving SSI (or disability payments under a former

State plan) before age 65;

 • One-half of remaining earned income in a month;

 • Earned income used to meet any expenses reasonably attributable to the earning of the income if the

recipient is blind and under age 65 or if he/she received SSI as a blind person prior to age 65;

 • Any earned income received and used to fulfill an approved plan to achieve self-support if the recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or disabled

individual in the month before he/she attained age 65; and

 • Some Federal laws other than the Social Security Act provide for the exclusion of earned income for

SSI purposes. For the most part, the income received under these laws relates to assistance received in

the form of food, housing and utilities, educational and employment benefits or benefits derived from

being a member of a Native American tribe. A complete list of laws which exclude earned income

under SSI can be found in the Federal Regulations Appendix to Subpart K 20 CFR 416.

2. Unearned Income Exclusions

 • Any public agency’s refund of taxes on real property or food; 

 • Assistance based on need which is wholly funded by a State or one of its political subdivisions. This

includes State supplementation of Federal SSI benefits but does not include payments under a Federal/State grant program such as Temporary Assistance for Needy Families (TANF);

 • Any portion of a grant, scholarship or fellowship used for paying tuition, fees or other necessary educational expenses. Portions set aside for food, clothing or shelter are counted;

 • Food raised by a household if it is consumed by that household;
73

2002 SSI Annual Report

 • Assistance received under the Disaster Relief and Emergency Assistance Act and assistance provided

under any Federal statute because of a catastrophe which the President of the United States declares to

be a major disaster;

 • Up to $20 of unearned income in a month if it is infrequent or irregular; that is, if a type of unearned

income is received only once during a calendar quarter from a single source or if it cannot reasonably

be expected;

 • Any unearned income received and used to fulfill an approved plan to achieve self-support if the

recipient is blind or disabled and under age 65 or is blind or disabled and received SSI as a blind or

disabled individual in the month before he/she attained age 65;

 • Periodic payments made by a State under a program established before July 1, 1973, and based solely

on the recipient’s length of residence and attainment of age 65;

 • Payments for providing foster care to an ineligible child who was placed in the recipient’s home by a

public or private nonprofit child placement or child care agency;

 • Any interest earned on excluded burial funds and any appreciation in the value of an excluded burial

arrangement which are left to accumulate and become part of the separately identifiable burial fund;

 • Certain support and maintenance assistance provided in the form of home energy assistance;

 • One-third of support payments made by an absent parent if the recipient is a child;

 • The first $20 of unearned income in a month other than income in the form of in-kind support and

maintenance received in the household of another and income based on need;

 • The value of any assistance paid with respect to a dwelling unit under the United States Housing Act

of 1937, the National Housing Act, section 101 of the Housing and Urban Development Act of 1965,

title V of the Housing Act of 1949, or section 202(h) of the Housing Act of 1959;

 • Any interest accrued on and left to accumulate as part of the value of an excluded burial space purchase agreement (after April 1, 1990);

 • The value of any commercial transportation ticket, for travel by a recipient or his/her spouse among

the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands, Guam, American Samoa and

the Northern Mariana Islands, which is received as a gift and is not converted to cash;

 • Payments received from a fund established by a State to aid victims of crime;

 • Relocation assistance provided by a State or local government that is comparable to assistance provided under title II of the Uniform Relocation Assistance and Real Property Acquisition Policies Act

of 1970;

 • Hostile fire pay received from one of the uniformed services pursuant to 37 U.S.C. 310;

 • Interest or other earnings on a dedicated account excluded from resources;

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;
2002 SSI Annual Report

74

 • TANF funds made available to an SSI recipient as part of an Individual Development Account (IDA);

 • Deposits made by a participating individual or a sponsoring nonprofit organization or State or local

government into an IDA under the “Assets for Independence Act” IDA demonstration project and

interest earned on these deposits; and

 • Unearned income excluded by other Federal laws. See Federal Regulations Appendix to Subpart K 20

CFR 416.

3. Resource Exclusions

 • The home (including the land appertaining thereto);

 • Household goods and personal effects to the extent that their total value does not exceed $2,000;

 • An automobile may be totally excluded if: (1) it is necessary for employment; (2) it is necessary for

the medical treatment of a specific or regular medical problem; (3) it is modified for the operation by

or transportation of, a handicapped individual; or (4) it is necessary to perform essential daily activities. If the automobile does not meet any of the above requirements, it may be excluded to the extent

that its current-market value does not exceed $4,500;

 • Property of a trade or business which is essential to the means of self-support;

 • Nonbusiness property which is essential to the means of self-support;

 • Resources of a blind or disabled individual which are necessary to fulfill an approved plan for achieving self-support;

 • Stock in regional or village corporations held by natives of Alaska during the 20-year period in which

the stock is inalienable pursuant to the Alaska Native Claims Settlement Act;

 • Life insurance owned by an individual (and spouse, if any) provided that all life insurance on any person does not exceed a face value of $1,500;

 • Restricted allotted Indian lands;

 • Disaster relief assistance;

 • Burial spaces and certain funds up to $1,500 for burial expenses;

 • Title XVI or title II retroactive payments (for 6 months following receipt);

 • Housing assistance;

 • Refunds of Federal income taxes and advances made by an employer relating to an earned income tax

credit, (for the month following receipt);

 • Refundable child tax credit ($600 per child in the current year, gradually increasing to $1,000 per

child in 2010) in the month of receipt and in the following month;

 • Payments received as compensation for expenses incurred or losses suffered as a result of a crime (for

9 months);

 • Relocation assistance from a State or local government (for 9 months);
75

2002 SSI Annual Report

 • Dedicated financial institution accounts for disabled children;

 • In-kind gifts not converted to cash and the first $2,000 annually of cash gifts made by tax-exempt

organizations, such as the Make-A-Wish Foundation, to, or for the benefit of, individuals under age

18 with life-threatening conditions;

 • Payments made under the Ricky Ray Hemophilia Relief Fund Act of 1998;

 • Amounts deposited into either a TANF or “Assets for Independence Act” IDA, including matching

funds and interest earned on such amounts;

 • Certain trusts (e.g., those established by will or certain Medicaid trusts that will repay the State, upon

the death of the beneficiary, for the costs of medical assistance provided to that individual); and

 • Payments or benefits provided under a Federal statute other than title XVI of the Social Security Act

where exclusion is provided by such statute.
2002 SSI Annual Report

76

C. HISTORICAL ALLOWANCE DATA

At the end of 2001, 81 percent of SSI recipients were receiving benefits based on a determination of disability. Claims are filed at a local Social Security office and claims requiring an evaluation of disability are

sent to the State Disability Determination Services (DDS) for a decision. Initial DDS decisions that are

unfavorable to the applicant may be appealed. Until recently, all appeals were initiated at the DDS level

with a request for reconsideration of that initial denial. Persons denied at the reconsideration level could

then apply to the Office of Hearings and Appeals (OHA) for a hearing before an Administrative Law

Judge (ALJ), and if dissatisfied with the hearing decision could request a review by the Appeals Council.

Those dissatisfied with the Appeals Council’s action could seek further relief via the Federal court system.

This appeals process is still in effect for the majority of new applicants. However, in recent years SSA has

conducted small pilots testing revisions to this process and introduced a modification of this process in

10 States for applications filed October 1, 1999 and later. Under this revised process appeals of initial

denials are made directly to OHA, thereby eliminating the reconsideration step. The options for appeal

beyond the OHA level are unchanged.

Such a process of application and appeal can, in some cases, span several years. However, before 1993,

the only data available on the disability determination process resided in files compiled at each separate

stage of the process and only captured various point-in-time snapshots. A complete picture of the disability determination process can be fully understood only by compiling a longitudinal database from administrative records at all levels of appeal. Beginning in 1993, such a longitudinal database (the “Disability

Research File”) was constructed by the Division of Disability Program Information and Studies within

SSA’s Office of Disability to assist the agency in understanding and managing this process. In the process

of constructing this database, some problems were encountered due to inconsistencies in the data collected

from all the respective levels of appeal. The following sections present some additional details and qualifications essential to a complete understanding of the resulting data. Following these technical notes are

tables based on the Disability Research File which show the latest available summary of results on disability determinations under title XVI.

1. Technical Notes on the Disability Research File

Methods used to build the title XVI Disability Research File—The “base” file for the title XVI research

file is the Supplemental Security Record (SSR). This “base” file is matched against records from various

other administrative sources, including transactions from the disability determination (SSA-831) files,

Social Security number identification records and earnings data, and OHA case control data. 

The process used to build this research file is cumbersome, involving about 180 steps, and generally

requiring about 4 months to complete. Much of this complexity flows from the fact that the file is assembled based on filing date cohorts, even though many of the source files do not contain a filing date. The

three most recent calendar year cohorts are completely reassembled from the basic data sources. Older calendar year cohorts are updated to reflect activity since the last time the file was built. Since the process is

so time consuming, the research file is updated only annually (usually beginning in July). Therefore,

research file data are not yet available for claims filed in 2001.

Methods used for estimating results (through February 2002) for claims filed in 2001—Although decision

counts are available for 2001 filers (from many of the “source” files), those counts do not translate directly

into the claims/appeals counts included in the following tables, due to the consolidation of multiple transactions (and application of claims-based tolerance rules) which occurs when the research file is built.

To prepare preliminary estimates of results (through February 2002) for 2001 filers, we started from the

latest available transaction data, such as the SSA-831 data, and took into account recent years’ experience
77

2002 SSI Annual Report

of the relationship between corresponding earlier transaction data and the resulting claims/appeals data in

completed research files. We also considered claims counts from an extract file from the SSR. While we

believe that the methods used are reasonable, it must be emphasized that the resulting estimates may prove

to be of limited reliability, especially in light of the fact that the estimates give results only through February 2002, whereas the final research files will reflect information through June 2002. Actual data for 2001

will be available to replace these estimates in the 2003 Annual Report.

2. General Considerations

Some general points that apply to tables V.C1 and V.C2 are as follows:

 • Data for 1988-2000 filers are as of June 2001. Results for those years’ filers have been updated to

include OHA results through August 2001. 

 • Data for 2001 filers are preliminary estimates as of February 2002, and reflect larger numbers of

claims still pending. February 2002 data on number of claims appealed may be too low because larger

numbers of claimants are still within the period allowed for filing an appeal (i.e., larger numbers of

recently denied claimants who have not yet filed an appeal may appeal before the time limit runs out). 

 • Remaining appeals will affect the results. Since allowances are generally processed more quickly than

denials, we expect that the percent allowed will ultimately be lower as all cases are processed. 

 • In certain pilot activities and under the revised process introduced October 1, 1999 in 10 States, initial

denials can be appealed directly to OHA without a separate reconsideration step. As a result the

appeals of initial denials shown in these tables include cases which will not receive a decision at the

reconsideration level.
2002 SSI Annual Report

78

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

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1988 946,603 — 272,204 28.8 674,399 71.2 265,151 39.3

1989 969,218 — 292,044 30.1 677,174 69.9 274,823 40.6

1990 1,099,805 — 347,823 31.6 751,982 68.4 320,207 42.6

1991 1,288,331 — 415,336 32.2 872,995 67.8 383,669 43.9

1992 1,415,624 — 436,888 30.9 978,736 69.1 433,244 44.3

1993 1,503,278 — 416,300 27.7 1,086,978 72.3 485,166 44.6

1994 1,436,958 — 353,995 24.6 1,082,963 75.4 482,533 44.6

1995 1,318,416 — 323,084 24.5 995,332 75.5 439,166 44.1

1996 1,247,926 — 305,351 24.5 942,575 75.5 406,425 43.1

1997 1,110,898 — 292,839 26.4 818,059 73.6 357,999 43.8

1998 1,108,957 — 322,734 29.1 786,223 70.9 339,290 43.2

1999 1,102,945 — 326,823 29.6 776,122 70.4 327,316 42.2

2000 1,135,300 22,186 335,375 30.1 777,739 69.9 301,503 38.8

2001 1,299,000 259,000 356,400 34.3 683,600 65.7 228,490 33.4

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1988 — 38,385 14.5 226,766 140,663 62.0 — 82,414 58.6 58,249

1989 — 43,505 15.8 231,318 146,082 63.2 — 90,169 61.7 55,913

1990 — 52,055 16.3 268,152 175,520 65.5 — 109,098 62.2 66,422

1991 — 59,157 15.4 324,512 221,816 68.4 — 139,698 63.0 82,118

1992 — 58,819 13.6 374,425 260,476 69.6 — 159,048 61.1 101,428

1993 — 57,938 11.9 427,228 294,288 68.9 — 170,169 57.8 124,119

1994 — 55,822 11.6 426,711 295,714 69.3 3,290 164,061 56.1 128,363

1995 — 51,697 11.8 387,469 266,241 68.7 3,883 142,696 54.4 119,662

1996 — 49,263 12.1 357,162 244,209 68.4 6,089 131,351 55.2 106,769

1997 — 47,573 13.4 306,561 215,414 70.3 10,885 117,947 56.6 90,447

1998 — 46,507 13.7 292,272 204,910 70.1 22,926 107,395 58.8 75,100

1999 — 40,999 13.2 270,553 189,463 70.0 53,576 91,682 60.5 59,969

2000 27,927 27,840 12.4 196,601 129,708 66.0 136,196 25,922 60.8 16,725

2001 46,600 21,400 14.5 125,900 46,640 37.0 75,600 3,740 66.4 1,890

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 — 1,415,624 654,755 — 760,869

1993 1,503,278 — 1,503,278 644,407 — 858,871

1994 1,436,958 — 1,436,958 573,878 3,290 859,790

1995 1,318,416 — 1,318,416 517,477 3,883 797,056

1996 1,247,926 — 1,247,926 485,965 6,089 755,872

1997 1,110,898 — 1,110,898 458,359 10,885 641,654

1998 1,108,957 — 1,108,957 476,636 22,926 609,395

1999 1,102,945 — 1,102,945 459,504 53,576 589,865

2000 1,135,300 22,186 1,113,114 389,137 164,123 559,854

2001 1,299,000 259,000 1,040,000 381,540 122,200 536,260
79

2002 SSI Annual Report

1 Data for claims filed in 1988-2000 reflect results as of June 2001 at the DDS level and as of August 2001 at the OHA level. The numbers of total claims

filed for 1999 and 2000 are subject to change. Data for claims filed in 2001 are preliminary estimates as of February 2002. The ultimate number of allowances and denials are subject to change until all initial decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown is expected to ultimately be lower as

all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

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

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1988 — 41.5 — 58.5 41.5 — 58.5

1989 — 43.9 — 56.1 43.9 — 56.1

1990 — 46.3 — 53.7 46.3 — 53.7

1991 — 47.7 — 52.3 47.7 — 52.3

1992 — 46.3 — 53.7 46.3 — 53.7

1993 — 42.9 — 57.1 42.9 — 57.1

1994 — 39.9 0.2 59.8 39.9 0.2 59.8

1995 — 39.2 .3 60.5 39.2 .3 60.5

1996 — 38.9 .5 60.6 38.9 .5 60.6

1997 — 41.3 1.0 57.8 41.3 1.0 57.8

1998 — 43.0 2.1 55.0 43.0 2.1 55.0

1999 — 41.7 4.9 53.5 41.7 4.9 53.5

2000 2.0 34.3 14.5 49.3 35.0 14.7 50.3

2001 19.9 29.4 9.4 41.3 36.7 11.8 51.6
2002 SSI Annual Report

80

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

Year of Filing 1 and Level of Decision

Calendar year

of filing 

Total

claims

filed

Initial decisions

Pending

Allowances Denials Appeals of initial denials

Number Percent 2 Number Percent 2 Number 3 Percent 4

1991 250,962 — 148,220 59.1 102,742 40.9 24,702 24.0

1992 372,971 — 189,079 50.7 183,892 49.3 49,297 26.8

1993 496,131 — 212,268 42.8 283,863 57.2 75,967 26.8

1994 525,013 — 172,219 32.8 352,794 67.2 92,093 26.1

1995 487,730 — 144,231 29.6 343,499 70.4 86,841 25.3

1996 453,473 — 127,416 28.1 326,057 71.9 75,013 23.0

1997 332,032 — 106,528 32.1 225,504 67.9 51,496 22.8

1998 335,732 — 123,249 36.7 212,483 63.3 50,111 23.6

1999 342,392 — 128,955 37.7 213,437 62.3 49,252 23.1

2000 349,618 6,583 135,222 39.4 207,813 60.6 44,095 21.2

2001 374,000 75,700 136,680 45.8 161,620 54.2 30,880 19.1

Calendar year

of filing 

Reconsiderations Appeals beyond reconsideration 5

Pending

Allowances

Denials

Appeals of

reconsideration

denials Allowances

Number Percent 2 Number 6 Percent 4 Pending 7 Number Percent 8 Denials 9

1991 — 5,605 22.7 19,097 9,196 48.2 — 3,884 42.2 5,312

1992 — 9,463 19.2 39,834 19,768 49.6 — 7,523 38.1 12,245

1993 — 11,338 14.9 64,629 31,156 48.2 — 10,633 34.1 20,523

1994 — 11,332 12.3 80,761 38,680 47.9 354 12,920 33.7 25,406

1995 — 10,287 11.8 76,554 35,776 46.7 365 10,873 30.7 24,538

1996 — 9,355 12.5 65,658 28,070 42.8 491 8,751 31.7 18,828

1997 — 8,266 16.2 42,705 19,028 44.6 792 6,854 36.5 11,907

1998 — 7,799 15.6 42,237 18,843 44.6 2,039 6,650 39.4 10,229

1999 — 7,132 15.4 39,111 17,616 45.0 5,702 6,003 40.2 8,920

2000 3,961 5,366 17.4 25,436 10,855 42.7 15,360 1,982 41.1 2,845

2001 5,500 3,160 16.0 16,640 3,790 22.8 8,820 210 38.2 340

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 — 496,131 234,239 — 261,892

1994 525,013 — 525,013 196,471 354 328,188

1995 487,730 — 487,730 165,391 365 321,974

1996 453,473 — 453,473 145,522 491 307,460

1997 332,032 — 332,032 121,648 792 209,592

1998 335,732 — 335,732 137,698 2,039 195,995

1999 342,392 — 342,392 142,090 5,702 194,600

2000 349,618 6,583 343,035 142,570 19,321 181,144

2001 374,000 75,700 298,300 140,050 14,320 143,930
81

2002 SSI Annual Report

1 Data for claims filed in 1991-2000 reflect results as of June 2001 at the DDS level and as of August 2001 at the OHA level. The numbers of total claims

filed for 1999 and 2000 are subject to change. Data for claims filed in 2001 are preliminary estimates as of February 2002. The ultimate number of allowances and denials are subject to change until all initial decisions have been completed and all appeals are final.

2 Percentage of decisions at this level.

3 Includes certain cases which can be appealed directly to OHA.

4 Percentage of denials at this level appealed to next level.

5 Includes cases appealed to OHA, as well as beyond OHA to the Federal courts.

6 Number of persons appealing beyond the reconsideration level.

7 Includes cases remanded to OHA from the Federal courts.

8 Percentage of decisions at this level. For years where decisions are still pending, the preliminary percentage shown is expected to ultimately be lower as

all cases are processed. This occurs because allowances are generally processed more quickly than denials.

9 Includes denied claims where the final administrative action was a dismissal of an appeal request (e.g., the appeal was not filed timely or the applicant

failed to appear at the scheduled hearing).

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

Year of Filing 1 and Level of Decision (Cont.)

Calendar year

of filing 

Selected summary case information by decision status

Numbers as a percentage of total claims filed Numbers as a percentage of total initial decisions

Initial

decision

pending Allowances

Denials

Allowances

Denials

Appeal

decision

pending

No

appeal

pending

Appeal

decision

pending

No

appeal

pending

1991 — 62.8 — 37.2 62.8 — 37.2

1992 — 55.2 — 44.8 55.2 — 44.8

1993 — 47.2 — 52.8 47.2 — 52.8

1994 — 37.4 0.1 62.5 37.4 0.1 62.5

1995 — 33.9 .1 66.0 33.9 .1 66.0

1996 — 32.1 .1 67.8 32.1 .1 67.8

1997 — 36.6 .2 63.1 36.6 .2 63.1

1998 — 41.0 .6 58.4 41.0 .6 58.4

1999 — 41.5 1.7 56.8 41.5 1.7 56.8

2000 1.9 40.8 5.5 51.8 41.6 5.6 52.8

2001 20.2 37.4 3.8 38.5 46.9 4.8 48.3
2002 SSI Annual Report

82

D. HISTORICAL REDETERMINATION AND CONTINUING DISABILITY REVIEW DATA

1. Redeterminations

Redeterminations are reviews of all of the nonmedical factors of eligibility to determine whether a recipient is still eligible for SSI and still receiving the correct payment amount. There are two types of redeterminations: scheduled and unscheduled. Scheduled redeterminations are selected annually or once every 6

years depending on the likelihood of payment error in the case. Except for certain institutionalized individuals, all recipients are periodically scheduled for a redetermination. Unscheduled redeterminations are

completed on an as needed basis when recipients report, or we discover, certain changes in circumstances

that could affect the continuing SSI payment amount. The numbers of redeterminations completed are subject to some year-to-year fluctuation because of variation in the numbers of unscheduled redeterminations

completed and in the numbers of scheduled redeterminations that were selected but not completed during

the fiscal year due to the impact of other workload requirements on the field offices. When redeterminations cannot be completed in the fiscal year scheduled, they are carried over into the next fiscal year. Table

V.D1 provides historical data on numbers of redeterminations completed by fiscal year. 

1 Decrease in number of redeterminations completed in fiscal

year 1994 due to low-error profile redeterminations not being

completed from January through September 1994.

2 Effective fiscal year 1995, approximately 200,000 fewer redeterminations were selected annually due to a change from a 3-year

to a 6-year redetermination cycle for low-error profile cases.

During periods between scheduled redeterminations, SSA uses the limited issue process to detect situations that have the potential to affect the continuing eligibility of SSI recipients and SSI payment amounts.

SSA conducts periodic computer matches between its own systems and the systems of other Federal and

State agencies to determine if the income and resources information on SSI recipients’ records is in conflict with data obtained from the other systems. Matches detecting conflicting information usually result in

the posting of an identifier to the Supplemental Security Record of the SSI recipient. The case is then

selected and scheduled for a field office review of the issue for which the indicator was posted. In fiscal

year 2001, SSA released over 600,000 limited issue cases for development by field offices.

2. Continuing Disability Reviews

Following enactment of the Social Security Disability Amendments of 1980, section 221(i) of the Social

Security Act generally requires SSA to review the continuing eligibility of title II disabled beneficiaries at

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

Table V.D1.—SSI Redeterminations Completed, Fiscal Years 1986-2001

[In thousands] 

Fiscal year

Number of

redeterminations

1986 . . . . . . . . . . . . . . . . . . . . . . . . 2,278

1987 . . . . . . . . . . . . . . . . . . . . . . . . 2,244

1988 . . . . . . . . . . . . . . . . . . . . . . . . 1,997

1989 . . . . . . . . . . . . . . . . . . . . . . . . 2,226

1990 . . . . . . . . . . . . . . . . . . . . . . . . 2,103

1991 . . . . . . . . . . . . . . . . . . . . . . . . 2,138

1992 . . . . . . . . . . . . . . . . . . . . . . . . 2,321

1993 . . . . . . . . . . . . . . . . . . . . . . . . 2,223

1994 . . . . . . . . . . . . . . . . . . . . . . . . 1 1,900

1995 . . . . . . . . . . . . . . . . . . . . . . . . 2 1,597

1996 . . . . . . . . . . . . . . . . . . . . . . . . 1,763

1997 . . . . . . . . . . . . . . . . . . . . . . . . 1,773

1998 . . . . . . . . . . . . . . . . . . . . . . . . 1,853

1999 . . . . . . . . . . . . . . . . . . . . . . . . 2,122

2000 . . . . . . . . . . . . . . . . . . . . . . . . 2,182

2001 . . . . . . . . . . . . . . . . . . . . . . . . 2,316
83

2002 SSI Annual Report

continuing disability reviews (CDRs) procedures should be applied with respect to both the title II and title

XVI programs, title XVI was not amended to accomplish this. In 1994 and again in 1996 legislation was

enacted adding some mandates for the performance of CDRs under the SSI program.

Public Law 103-296 specified that during each of fiscal years 1996, 1997, and 1998, SSA was required to

conduct CDRs on a minimum of 100,000 SSI recipients. In addition, during the same period, SSA was

required to redetermine the SSI eligibility of at least one-third of all SSI child recipients who reach age 18

after April 1995 during the 1-year period following attainment of age 18. Such redeterminations for persons turning age 18 could count toward the 100,000 CDR requirement.

Public Law 104-193 extended the requirement of redetermination of SSI eligibility to all SSI child recipients who reach age 18, with such redetermination being based on an adult eligibility criteria. This law also

added the requirement that a CDR be performed:

 • At least once every 3 years for SSI recipients under age 18 who are eligible by reason of an impairment which is likely to improve, and

 • Not later than 12 months after birth for recipients whose low birth weight is a contributing factor

material to the determination of their disability unless the Commissioner determines that the impairment is not expected to improve within 12 months of the child’s birth.

Public Law 105-33 gave SSA some additional flexibility in the scheduling of these categories of CDRs.

In order to handle the large CDR workload mandated under these various provisions, SSA developed,

beginning in 1993, a process by which certain title II cases scheduled for a CDR would be screened using

the results of a profiling process which included a mailer interview for some cases. In 1996 the profiling

process was extended to title XVI adults who were scheduled for a CDR. The screening process resulted

in the deferral of full medical reviews for 353,138 cases for which a scheduled title XVI CDR was processed in 2001.

For cases involving individuals who receive both title II and title XVI benefits, CDRs are typically initiated as title II CDRs with the results of the review affecting eligibility for benefits under both programs.

Tables V.D2 and V.D3 present the latest available summary of results on CDRs of title XVI recipients performed under titles II and XVI since 1993. These tables include only cases for which a full medical review

was conducted. In particular they do not include:

 • Cases for which a mailer was completed, but for which a full medical review was deferred;

 • CDRs initiated as the result of work activity on the part of the beneficiary/recipient; and

 • Miscellaneous other CDRs processed by the State Disability Determination Services but not as part of

the normal CDR scheduling process (such as voluntary and third party reports of medical improvement, post-transplant end-stage renal disease cases, and vocational rehabilitation reports).

In contrast with the allowance data presented in section V.C, the CDR data is tabulated on a cohort basis

by the date of initial decision.
2002 SSI Annual Report

84

Table V.D2.—SSI Disabled Adult Reviews: Disposition of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision 1and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent 2 Number Percent 2 Number Percent 3

Reviews of concurrent title II/XVI cases initiated under title II

1993 1,143 1,083 94.8 60 5.2 52 86.7

1994 10,945 9,127 83.4 1,818 16.6 1,253 68.9

1995 16,736 12,484 74.6 4,252 25.4 2,905 68.3

1996 26,884 20,636 76.8 6,248 23.2 4,119 65.9

1997 51,466 40,741 79.2 10,725 20.8 7,436 69.3

1998 81,185 68,533 84.4 12,652 15.6 8,834 69.8

1999 80,816 70,353 87.1 10,463 12.9 6,398 61.1

2000 105,787 93,962 88.8 11,825 11.2 7,015 59.3

2001 110,341 99,666 90.3 10,675 9.7 6,250 58.5

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 8,839 74.3

1998 75,071 64,829 86.4 10,242 13.6 7,369 71.9

1999 140,429 125,079 89.1 15,350 10.9 10,547 68.7

2000 173,470 156,065 90.0 17,405 10.0 11,130 63.9

2001 143,902 126,610 88.0 17,292 12.0 10,126 58.6

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 16,275 71.9

1998 156,256 133,362 85.3 22,894 14.7 16,203 70.8

1999 221,245 195,432 88.3 25,813 11.7 16,945 65.6

2000 279,257 250,027 89.5 29,230 10.5 18,145 62.1

2001 254,243 226,276 89.0 27,967 11.0 16,376 58.6

Fiscal year of

initial DDS

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 6

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of concurrent title II/XVI cases initiated under title II

1993 — 22 42.3 30 14 46.7 — 9 64.3 5

1994 — 541 43.2 712 399 56.0 — 177 44.4 222

1995 — 1,245 42.9 1,660 1,007 60.7 — 382 37.9 625

1996 — 1,875 45.5 2,244 1,313 58.5 — 427 32.5 886

1997 91 4,297 58.5 3,048 2,313 75.9 70 928 41.4 1,315

1998 104 5,511 63.1 3,219 2,463 76.5 86 1,049 44.1 1,328

1999 222 3,964 64.2 2,212 1,551 70.1 133 595 42.0 823

2000 352 4,327 64.9 2,336 1,509 64.6 690 357 43.6 462

2001 1,356 3,419 69.9 1,475 718 48.7 632 37 43.0 49

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 118 5,271 60.4 3,450 2,661 77.1 92 959 37.3 1,610

1998 144 4,527 62.7 2,698 2,053 76.1 117 705 36.4 1,231

1999 298 6,571 64.1 3,678 2,527 68.7 188 870 37.2 1,469

2000 344 6,760 62.7 4,026 2,687 66.7 1,108 568 36.0 1,011

2001 2,499 4,955 65.0 2,672 1,222 45.7 1,094 50 39.1 78

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 209 9,568 59.6 6,498 4,974 76.5 162 1,887 39.2 2,925

1998 248 10,038 62.9 5,917 4,516 76.3 203 1,754 40.7 2,559

1999 520 10,535 64.1 5,890 4,078 69.2 321 1,465 39.0 2,292

2000 696 11,087 63.5 6,362 4,196 66.0 1,798 925 38.6 1,473

2001 3,855 8,374 66.9 4,147 1,940 46.8 1,726 87 40.7 127
85

2002 SSI Annual Report

1 Data reflect results as of January 2002. The ultimate number of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases have a

minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

Table V.D2.—SSI Disabled Adult Reviews: Disposition of Continuing Disability Medical Reviews by Fiscal Year of 

Initial Decision 1 and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2002

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 45,966 161 5,339 89.3 0.3 10.4

1998 81,185 75,093 190 5,902 92.5 .2 7.3

1999 80,816 74,912 355 5,549 92.7 .4 6.9

2000 105,787 98,646 1,042 6,099 93.2 1.0 5.8

2001 110,341 103,122 1,988 5,231 93.5 1.8 4.7

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 63,892 210 5,455 91.9 .3 7.8

1998 75,071 70,061 261 4,749 93.3 .3 6.3

1999 140,429 132,520 486 7,423 94.4 .3 5.3

2000 173,470 163,393 1,452 8,625 94.2 .8 5.0

2001 143,902 131,615 3,593 8,694 91.5 2.5 6.0

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 121,023 109,858 371 10,794 90.8 .3 8.9

1998 156,256 145,154 451 10,651 92.9 .3 6.8

1999 221,245 207,432 841 12,972 93.8 .4 5.9

2000 279,257 262,039 2,494 14,724 93.8 .9 5.3

2001 254,243 234,737 5,581 13,925 92.3 2.2 5.5
2002 SSI Annual Report

86

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

Initial Decision 1and Level of Decision

Fiscal year of

initial DDS

decision

Initial decisions

Total initial

DDS decisions

Continuations Cessations Appeals to reconsideration

Number Percent 2 Number Percent 2 Number Percent 3

Reviews of low-birth-weight children

1994 1,225 771 62.9 454 37.1 159 35.0

1995 4,231 2,083 49.2 2,148 50.8 665 31.0

1996 5,709 2,491 43.6 3,218 56.4 904 28.1

1997 7,091 4,482 63.2 2,609 36.8 842 32.3

1998 17,620 6,092 34.6 11,528 65.4 3,692 32.0

1999 9,773 4,114 42.1 5,659 57.9 1,660 29.3

2000 10,178 4,566 44.9 5,612 55.1 1,613 28.7

2001 9,086 4,152 45.7 4,934 54.3 1,365 27.7

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 16,992 64.4

1998 40,945 21,453 52.4 19,492 47.6 11,082 56.9

1999 49,557 27,413 55.3 22,144 44.7 11,040 49.9

2000 51,713 28,863 55.8 22,850 44.2 11,195 49.0

2001 48,944 28,167 57.5 20,777 42.5 9,815 47.2

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 4 66.7

1998 91,157 67,203 73.7 23,954 26.3 13,380 55.9

1999 183,211 129,420 70.6 53,791 29.4 28,932 53.8

2000 140,699 106,583 75.8 34,116 24.2 17,389 51.0

2001 95,835 72,896 76.1 22,939 23.9 11,823 51.5

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 17,838 61.5

1998 149,722 94,748 63.3 54,974 36.7 28,154 51.2

1999 242,541 160,947 66.4 81,594 33.6 41,632 51.0

2000 202,590 140,012 69.1 62,578 30.9 30,197 48.3

2001 153,865 105,215 68.4 48,650 31.6 23,003 47.3

Fiscal year of 

initial DDS 

decision

Reconsiderations Appeals beyond reconsideration 4

Pending

Continuations

Cessations

Appeals to beyond

reconsideration

Pending 6

Continuations

Number Percent Cessations 2 Number 5 Percent 3 Number Percent

Reviews of low-birth-weight children

1994 — 44 27.7 115 51 44.3 — 15 29.4 36

1995 — 184 27.7 481 219 45.5 — 53 24.2 166

1996 — 329 36.4 575 232 40.3 — 44 19.0 188

1997 21 292 35.6 529 237 44.8 3 48 20.5 186

1998 51 1,234 33.9 2,407 1,142 47.4 22 230 20.5 890

1999 29 605 37.1 1,026 492 48.0 50 72 16.3 370

2000 81 603 39.4 929 423 45.5 221 42 20.8 160

2001 424 373 39.6 568 175 30.8 162 1 7.7 12

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 254 4,590 27.4 12,148 6,459 53.2 92 1,409 22.1 4,958

1998 171 3,072 28.2 7,839 4,373 55.8 89 918 21.4 3,366

1999 173 3,363 30.9 7,504 4,324 57.6 399 903 23.0 3,022

2000 361 3,548 32.7 7,286 3,881 53.3 1,688 567 25.9 1,626

2001 2,619 2,606 36.2 4,590 1,936 42.2 1,688 64 25.8 184

All other reviews of SSI disabled children

1994 — — — —————— —

1995 — 177 32.7 364 202 55.5 — 52 25.7 150

1996 — 69 32.9 141 55 39.0 — 17 30.9 38

1997 1 1 33.3 2 1 50.0 — — 0.0 1

1998 106 4,460 33.6 8,814 5,547 62.9 145 1,229 22.8 4,173

1999 566 9,325 32.9 19,041 11,810 62.0 1,063 2,282 21.2 8,465

2000 729 6,375 38.3 10,285 5,949 57.8 2,732 731 22.7 2,486

2001 3,708 3,589 44.2 4,526 2,035 45.0 1,825 50 23.8 160

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 276 4,883 27.8 12,679 6,697 52.8 95 1,457 22.1 5,145

1998 328 8,766 31.5 19,060 11,062 58.0 256 2,377 22.0 8,429

1999 768 13,293 32.5 27,571 16,626 60.3 1,512 3,257 21.5 11,857

2000 1,171 10,526 36.3 18,500 10,253 55.4 4,641 1,340 23.9 4,272

2001 6,751 6,568 40.4 9,684 4,146 42.8 3,675 115 24.4 356
87

2002 SSI Annual Report

1 Data reflect results as of January 2002. The ultimate number of continuations and cessations are subject to change until all appeals are final. 2 Percentage of decisions at this level.

3 Percentage of cessations at this level appealed to next level.

4 Includes cases appealed to the Office of Hearings and Appeals, but not cases appealed beyond OHA to the Federal courts. These excluded cases have a

minimal impact on the number of continuations.

5 Number of persons appealing beyond the reconsideration level.

6 Includes cases remanded to OHA from the Federal courts.

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

Initial Decision1 and Level of Decision (Cont.)

Fiscal year of

initial DDS

decision

Total initial

decisions

Selected summary case information by decision status as of January 2002

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 4,822 24 2,245 68.0 0.3 31.7

1998 17,620 7,556 73 9,991 42.9 .4 56.7

1999 9,773 4,791 79 4,903 49.0 .8 50.2

2000 10,178 5,211 302 4,665 51.2 3.0 45.8

2001 9,086 4,526 586 3,974 49.8 6.4 43.7

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 28,430 346 20,058 58.2 .7 41.1

1998 40,945 25,443 260 15,242 62.1 .6 37.2

1999 49,557 31,679 572 17,306 63.9 1.2 34.9

2000 51,713 32,978 2,049 16,686 63.8 4.0 32.3

2001 48,944 30,837 4,307 13,800 63.0 8.8 28.2

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 1 4 64.3 7.1 28.6

1998 91,157 72,892 251 18,014 80.0 .3 19.8

1999 183,211 141,027 1,629 40,555 77.0 .9 22.1

2000 140,699 113,689 3,461 23,549 80.8 2.5 16.7

2001 95,835 76,535 5,533 13,767 79.9 5.8 14.4

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 33,261 371 22,307 59.5 .7 39.9

1998 149,722 105,891 584 43,247 70.7 .4 28.9

1999 242,541 177,497 2,280 62,764 73.2 .9 25.9

2000 202,590 151,878 5,812 44,900 75.0 2.9 22.2

2001 153,865 111,898 10,426 31,541 72.7 6.8 20.5
2002 SSI Annual Report

88

E. INCENTIVES FOR WORK AND OPPORTUNITIES FOR REHABILITATION

1. Work Incentives

Since the beginning of the SSI program, a number of disabled recipients have worked and received SSI

payments. Initially, the program contained a basic earned income exclusion that recognized the additional

costs associated with employment. In addition, the law contained a number of special income exclusions

which were intended as work incentives. Among these provisions were the income exclusion for blind

work expenses (BWE), plans for achieving self-support (PASS), and student earned income exclusion

(SEIE).

In the 1980 amendments to the Social Security Act, Congress provided additional incentives to help SSI

disabled recipients become self-supporting. These incentives included:

 • Providing for an earned income exclusion for impairment-related work expenses (IRWE);

 • Changing the treatment of sheltered workshop earnings from unearned income to earned income,

thereby qualifying sheltered workshop earnings for the earned income exclusion;

 • Providing for the continuation of SSI payments for certain disabled individuals enrolled in vocational

rehabilitation programs whose disability ceased due to medical recovery (extended to SSI blind recipients, effective April, 1988);

 • Establishing section 1619 which provided:

 — In subsection 1619(a), special SSI cash benefits to disabled individuals who lose eligibility for

SSI payments because they have earnings exceeding the level that is ordinarily considered to

represent substantial gainful activity (SGA), and

 — In subsection 1619(b), special SSI recipient status for Medicaid purposes to working disabled or

blind individuals when their earnings make them ineligible for cash payments.

The incentives for work and opportunities for rehabilitation are discussed in more detail in section III.E. In

the tables that follow we provide historical information on participation by SSI recipients in work incentive programs.1

a. Numbers of Participants in Work Incentive Programs

In this section, we present historical data on participation by SSI recipients in work incentive programs.

Table V.E1 presents historical numbers of SSI recipients categorized according to their section 1619 status. Figure V.E1 presents the same information in graphical form.

1 More detailed information on participation by SSI recipients in work incentive programs is provided in the Quarterly Report on SSI Disabled Workers

and Work Incentive Provisions prepared by the Office of Research, Evaluation and Statistics, Social Security Administration.
89

2002 SSI Annual Report

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, $740 in January 2001, and $780 in January 2002. Increases in the SGA level in subsequent years will

be based on increases in the national average wage index.

2 Workers’ earnings are at or below the SGA level.

3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

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

Table V.E1.—SSI Federally-Administered Blind or Disabled Working Recipients as of December, 1987-2001

Year

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . 14,559 142,664 15,632 172,855

1988 . . . . . . . . . . . . . . . . . . . . . . . 19,920 153,599 15,625 189,144

1989 . . . . . . . . . . . . . . . . . . . . . . . 25,655 161,928 18,254 205,837

1990 . . . . . . . . . . . . . . . . . . . . . . . 13,994 182,421 23,517 219,932

1991 . . . . . . . . . . . . . . . . . . . . . . . 15,531 186,824 27,264 229,619

1992 . . . . . . . . . . . . . . . . . . . . . . . 17,603 199,665 31,649 248,917

1993 . . . . . . . . . . . . . . . . . . . . . . . 20,028 210,322 35,299 265,649

1994 . . . . . . . . . . . . . . . . . . . . . . . 24,315 217,478 40,683 282,476

1995 . . . . . . . . . . . . . . . . . . . . . . . 28,060 223,573 47,002 298,635

1996 . . . . . . . . . . . . . . . . . . . . . . . 31,085 225,310 51,905 308,300

1997 . . . . . . . . . . . . . . . . . . . . . . . 34,673 228,093 57,089 319,855

1998 . . . . . . . . . . . . . . . . . . . . . . . 37,271 229,662 59,542 326,475

1999 . . . . . . . . . . . . . . . . . . . . . . . 25,528 245,825 69,265 340,618

2000 . . . . . . . . . . . . . . . . . . . . . . . 27,542 249,313 83,572 360,427

2001 . . . . . . . . . . . . . . . . . . . . . . . 22,100 247,555 76,455 346,110

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

as of December, 1987-2001

[In thousands]

0

50

100

150

200

250

1987 1989 1991 1993 1995 1997 1999 2001

Year

1619(a) workers

1619(b) workers

Other workers
2002 SSI Annual Report

90

Table V.E2 presents historical numbers of SSI recipients who benefit from other selected work incentive

provisions: (1) plan for achieving self-support (PASS), (2) impairment-related work expense exclusion

(IRWE), and (3) blind work expense exclusion (BWE). These recipients may be benefiting from more than

one of these selected work incentive provisions. This information is available only for calendar years 1990

and later.

1 For years 1990 through 1996, data do not include PASS plans which exclude only resources. 

Note: Working recipients participating in these other work incentives may be 1619(a) recipients, 1619(b) recipients or working

recipients whose earnings are at or below the SGA level.

b. Average Earnings of Participants in Work Incentive Programs

In this section, we present historical data on average earnings of SSI working recipients. Table V.E3 presents average earnings of SSI recipients categorized according to their section 1619 status.

1 In January, 1990, the SGA level was raised from $300 to $500 and section 1619(a) participants with earnings at or below $500

became eligible for regular SSI benefits rather than the special cash payments under section 1619(a). The SGA level was further

increased to $700 in July 1999, $740 in January 2001, and $780 in January 2002. Increases in the SGA level in subsequent years will

be based on increases in the national average wage index.

2 Workers’ earnings are at or below the SGA level.

3 1619(b) recipients are not in current-payment status but retain SSI recipient status for Medicaid purposes.

4 Estimated.

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

in Other Work Incentives as of December, 1990-2001

Year

PASS 1

Non-workers Workers Total IRWE BWE

1990 . . . . . . . . . . . . . . . . . . . 1,215 1,040 2,255 5,384 4,385

1991 . . . . . . . . . . . . . . . . . . . 1,969 1,601 3,570 6,546 4,330

1992 . . . . . . . . . . . . . . . . . . . 3,189 2,658 5,847 7,813 4,454

1993 . . . . . . . . . . . . . . . . . . . 4,528 3,602 8,130 8,629 4,406

1994 . . . . . . . . . . . . . . . . . . . 5,842 4,487 10,329 9,484 4,380

1995 . . . . . . . . . . . . . . . . . . . 5,719 4,603 10,322 9,940 4,433

1996 . . . . . . . . . . . . . . . . . . . 2,760 1,944 4,704 9,799 4,230

1997 . . . . . . . . . . . . . . . . . . . 1,290 708 1,998 9,637 4,116

1998 . . . . . . . . . . . . . . . . . . . 712 362 1,074 9,301 3,802

1999 . . . . . . . . . . . . . . . . . . . 698 347 1,045 9,520 3,971

2000 . . . . . . . . . . . . . . . . . . . 862 520 1,382 9,422 3,895

2001 . . . . . . . . . . . . . . . . . . . 1,051 549 1,600 8,798 3,642

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

Disabled Working Recipients, as of December, 1987-2001 

Year

Blind or disabled workers with SSI recipient status

In current-payment status 1619(b)

workers 3 Total

1619(a) workers workers 1 Other workers 2

1987 . . . . . . . . . . . . . . . . . . . . . . . $494 4 $124 $739 4 $211

1988 . . . . . . . . . . . . . . . . . . . . . . . 522 4 127 721 4 218

1989 . . . . . . . . . . . . . . . . . . . . . . . 518 4 131 712 4 231

1990 . . . . . . . . . . . . . . . . . . . . . . . 712 145 746 245

1991 . . . . . . . . . . . . . . . . . . . . . . . 724 148 780 262

1992 . . . . . . . . . . . . . . . . . . . . . . . 726 150 781 271

1993 . . . . . . . . . . . . . . . . . . . . . . . 728 153 784 280

1994 . . . . . . . . . . . . . . . . . . . . . . . 746 157 803 301

1995 . . . . . . . . . . . . . . . . . . . . . . . 754 160 834 322

1996 . . . . . . . . . . . . . . . . . . . . . . . 764 162 881 344

1997 . . . . . . . . . . . . . . . . . . . . . . . 772 164 932 367

1998 . . . . . . . . . . . . . . . . . . . . . . . 772 182 954 390

1999 . . . . . . . . . . . . . . . . . . . . . . . 926 207 980 418

2000 . . . . . . . . . . . . . . . . . . . . . . . 945 239 1,048 481

2001 . . . . . . . . . . . . . . . . . . . . . . . 1,004 252 1,043 475
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2002 SSI Annual Report

2. Vocational Rehabilitation/Ticket to Work Program

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

receiving SSI benefits to be referred to State Vocational Rehabilitation (VR) agencies. The 1980 amendments provided for the continuation of SSI payments for certain disabled individuals enrolled in VR programs whose disability ceased due to medical recovery. This benefit continuation provision applied only if

the VR program was approved by SSA and SSA determined that continuation or completion of such program would increase the likelihood that the individual will be permanently removed from the SSI rolls.

This provision was extended to SSI blind recipients effective April, 1988. In 1994, regulations were

amended to provide access to alternate private and non-State public VR providers when a State VR agency

does not serve an SSI recipient whom SSA refers for services. 

From the beginning of the SSI program through 1981, SSA made block grants to VR agencies to fund services to disabled beneficiaries. The 1981 amendments established reimbursement provisions so that VR

agencies would be reimbursed for the cost of VR services furnished to blind or disabled SSI recipients

only if the services result in the recipient returning to work. The 1984 amendments authorized reimbursement in other circumstances.1 In 1994, these reimbursement procedures were amended by regulation to

include reimbursement of alternate providers. For reimbursement purposes, recipients are considered to

have returned to work if they have had earnings exceeding the SGA level for 9 continuous months. Effective with the 1990 amendments, reimbursement for the cost of VR services was authorized for services

provided in months in which the individual was not receiving Federal SSI benefits if the individual:

 • Had special SSI recipient status for Medicaid purposes under section 1619(b) of the Social Security

Act,

 • Received a Federally-administered State supplementary payment, or

 • Had SSI benefits suspended for fewer than 13 consecutive months for a reason other than cessation of

disability or blindness.

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

Ticket to Work and Self-Sufficiency program (Ticket to Work program) under which a disabled beneficiary may obtain vocational rehabilitation, employment and other support services from a qualified private

or public provider. Providers of such services in this new setting are referred to as “employment networks”

(ENs). In addition, the Ticket legislation provided for a new procedure for compensating the ENs under an

outcome or outcome-milestone payment system to be specified under regulations issued by the Commissioner. By expanding the pool of providers and giving the providers incentives for achieving success, this

program seeks to expand a disabled beneficiary’s access to these services in order to assist the beneficiary

in finding, entering, and retaining employment and reducing his/her dependence on cash benefits. 

The Ticket to Work program is being implemented on a State-by-State basis and will be in operation

nationwide by January 2004. Once the Ticket to Work program is implemented in a State, the traditional

VR referral process described earlier will be eliminated in that State, and SSA will provide eligible individuals who receive SSI benefits due to blindness or disability in such State with a Ticket to Work document (“ticket”). These individuals may use the ticket to obtain the vocational rehabilitation services,

employment services and other support services needed to return to work, or go to work for the first time.

Individuals not eligible for a ticket may still request services from a State VR agency, which must decide

whether they are eligible for services under the Rehabilitation Act of 1973.

1 Reimbursement may be made in cases where the recipient medically recovers while engaged in a program of rehabilitation services approved by SSA and

SSA determines that continuation or completion of such program increases the likelihood the individual will be permanently removed from the rolls.
2002 SSI Annual Report

92

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

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

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

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

Pursuant to the Ticket legislation requirement that SSA establish a corps of work incentives specialists to

disseminate accurate information with respect to work incentives, SSA created and piloted the Employment Support Representative (ESR) position. During the pilot, ESRs provided information about SSA’s

employment support programs to (1) disabled beneficiaries who want to work, (2) applicants for disability

benefits and their families, (3) providers of vocational rehabilitation and employment support services,

and (4) potential employers. SSA is considering how best to implement the results of the pilot experience.

Table V.E4 provides historical data on the number of reimbursement claims allowed and the amount of

such awards for SSI recipients.

1 For concurrent title II/XVI claims, amounts shown represent title XVI portion of claim.

2 For fiscal years 1987-89, data on title II reimbursement claims involving concurrent title XVI reimbursement claims are not available.

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

Table V.E4.—Vocational Rehabilitation Reimbursement Claims Allowed, Fiscal Years 1987-2001

Fiscal year

Concurrent title II/XVI claims Title XVI only claims Total claims

Number

Amount 1

(in thousands) Number

Amount

(in thousands) Number

Amount 1

(in thousands)

1987 . . . . . . . 2/ 2/ 1,493 $10,010 2/ 2/

1988 . . . . . . . 2/ 2/ 1,720 14,831 2/ 2/

1989 . . . . . . . 2/ 2/ 1,871 18,366 2/ 2/

1990 . . . . . . . 1,267 $3,290 2,819 22,832 4,086 $26,122

1991 . . . . . . . 1,445 4,325 2,171 20,615 3,616 24,940

1992 . . . . . . . 1,634 5,312 2,834 28,276 4,468 33,588

1993 . . . . . . . 1,928 6,670 2,158 22,264 4,086 28,934

1994 . . . . . . . 1,880 7,057 2,074 23,400 3,954 30,457

1995 . . . . . . . 2,140 7,761 2,229 26,402 4,369 34,162

1996 . . . . . . . 2,033 6,518 2,138 24,334 4,171 30,852

1997 . . . . . . . 2,735 8,541 2,914 31,532 5,649 40,073

1998 . . . . . . . 3,329 10,089 3,446 36,313 6,775 46,402

1999 . . . . . . . 3,572 11,403 4,046 42,281 7,618 53,684

2000 . . . . . . . 3,260 11,357 3,589 40,793 6,849 52,150

2001 . . . . . . . 2,388 9,590 2,763 34,842 5,151 44,432
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2002 SSI Annual Report

F. INVOLVEMENT OF SSI RECIPIENTS IN OTHER PROGRAMS

In this appendix we present data on participation by SSI recipients in other programs. Certain information

is available from the Supplemental Security Record (SSR), the main administrative file for the SSI program. Data summarized from the SSR are very representative of the overall SSI recipient population since

the information is based on a 100-percent extract or, for certain information, on a 10-percent extract from

the SSR. Data from the SSR are presented in section 1 below.

There are other potential sources for information on SSI recipients that are not available on the SSI administrative files. One source in particular is the Survey of Income and Program Participation (SIPP)1, a U.S.

Census Bureau sample survey that collects information such as the source and amount of income, program

participation and general demographic characteristics for the U.S. civilian noninstitutionalized population.

Data from the SIPP are presented in section 2. 

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

Since the amount of an individual’s income is used to determine both the eligibility for, and the amount of

his/her SSI benefit, it is necessary for the SSR to contain information on participation by SSI recipients in

certain other programs which may provide countable income to the SSI recipient. A significant number of

SSI recipients are Social Security beneficiaries whose total countable income, including OASDI benefits,

is less than the Federal benefit rate plus the amount of applicable Federally-administered State supplementary payment. A smaller number of SSI recipients participate in other programs and receive income such

as Worker’s Compensation benefits or disability cash benefits from the Department of Veterans Affairs.

SSA does not maintain complete information in its administrative files concerning the involvement of SSI

recipients in other assistance programs, because under the law payments from such programs are excluded

from countable income attributable to the individual. We do, however, have some data with regard to entitlement to benefits under two other programs—Temporary Assistance for Needy Families (TANF) (which

replaced Aid to Families with Dependent Children (AFDC)) and State Interim Assistance Reimbursement—at the point that the individual applied for SSI benefits. TANF (and AFDC previously) is a State

program funded under Part A of title IV of the Social Security Act. Interim assistance is assistance a State

gives to SSI applicants in cash or vendor payments for meeting basic needs while they are awaiting the

outcome of the SSI eligibility determination process.

Table V.F1 presents percentages of SSI recipients who (1) concurrently receive payments from certain

other selected programs or (2) have previously been enrolled in TANF/AFDC or received Interim Assistance Reimbursement.

1 The SIPP is a sample survey conducted by the U.S. Census Bureau, which collects data on the U.S. civilian noninstitutionalized population. The SIPP is

comprised of a continuous series of national panels which are identified by the year in which interviewing began for that panel. The participants in the panel

are divided into four rotation groups, with each group being interviewed monthly on a rotating basis concerning the 4 months prior to the month of interview.

The data are released in waves, where 4 months of interviews comprise a wave. The data presented here are for December 1999 and are taken from Wave 12

of the 1996 Panel. Only three of the four rotation groups were interviewed in December 1999. However, since individuals are assigned to rotation groups

randomly, the sample used for this table is still nationally representative. Sample weights were adjusted to reflect the missing rotation group.
2002 SSI Annual Report

94

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Note: Total numbers of recipients do not necessarily equal the sums of rounded components.

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

In this section we present information on program participation by SSI recipients or households of SSI

recipients which is not available from SSA administrative files. This information is based on data collected by interviews conducted under Wave 12 of the 1999 SIPP and then matched to SSA administrative

records. The reference month of December, 1999 is used since that is the most recent December for which

data are available. Since the 1996 Panel consists of 36,700 households, the sample of households including SSI recipients is small. The individuals in the sample represent only 0.02 percent of SSI noninstitutionalized recipients in December, 1999. Therefore great care should be taken in using this information to

make generalizations about the overall SSI recipient population. The data are presented in table V.F2.

1 SSI recipients or the households of SSI recipients may participate in more than one of these programs.

2 Less than 0.05 percent of SSI recipients in this gender/age grouping participate in the program.

Table V.F1.—Percentage of SSI Federally-Administered Recipients in Current-Payment Status with Participation1

in Selected Programs Based on SSA Administrative Records, December, 2001

Male Female

0-17 18-64 All

65 or

older 0-17 18-64

65 or

older

Number of Federally-administered recipients, 

December, 2001 (in thousands) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564 1,654 574 318 2,157 1,422 6,688

Program (In percent)

Program participation by SSI recipients, December, 2001

Federal SSI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99.7 95.7 91.8 99.7 97.0 93.4 95.8

Federally-administered State SSI supplementation 28.6 36.8 50.9 27.9 34.5 43.9 37.7

OASDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 32.1 55.7 7.0 29.3 59.5 35.7

Black Lung . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/

Railroad Retirement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 0.1 2/ 2/ 0.1 2/

Veterans Affairs disability cash benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.2 0.6 0.9 0.2 0.8 3.6 1.3

Worker’s Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.1 0.1 2/ 0.1 2/ 0.1

Previous program participation by SSI recipients, December, 2001

TANF/AFDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.4 16.4 7.3 45.9 32.3 8.1 23.1

Interim Assistance Reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 17.3 8.6 0.4 14.4 8.2 11.4

Table V.F2.—Percentage of Noninstitutionalized SSI Federally-Administered Recipients in Current-Payment Status

with Participation1 in Selected Programs Based on Data Collected Under Wave 12 of the 1996 Survey

of Income and Program Participation, December, 1999

Male Female

0-17 18-64 All

65 or

older 0-17 18-64

65 or

older

Number of surveyed individuals reporting SSI Income, December, 1999 . . . . . . . . . . . 73 244 106 45 360 272 1,100

Number of surveyed individuals as a percentage of noninstitutionalized Federallyadministered recipients, December, 1999 (in percent) . . . . . . . . . . . . . . . . . . . . . . . . . . 0.01 0.02 0.02 0.01 0.02 0.02 0.02

Program (In percent)

Program participation by SSI recipients, December, 1999

General assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 0.6 1.1 2/ 3.4 1.3 1.6

Medicaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95.4 96.1 99.1 89.6 96.7 97.6 96.5

Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 31.5 72.1 2/ 29.3 85.1 39.9

School breakfast/lunch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74.2 2/ 2/ 78.0 2/ 2/ 10.1

TANF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 1.2 0.7 2/ 11.0 1.8 4.3

Unemployment insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/ 2/ 2/ 2/

Special Supplemental Food Program for Women,

Infants and Children (WIC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2/ 2/ 2/ 2/ 6.3 2/ 2.1

Program participation by households of SSI recipients, December, 1999 

Energy assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 11.8 10.5 11.8 13.3 10.1 11.6

Housing assistance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.1 6.4 7.0 14.0 14.0 9.4 10.6

Food stamps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.1 39.4 29.4 31.3 54.4 41.4 43.5
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2002 SSI Annual Report

G. RESEARCH ON RELATED TOPICS

The legislative mandate for this report requires inclusion of information about “relevant research on the

SSI program by the Social Security Administration (SSA) and others.” Section 1 of this appendix presents

information on important research projects undertaken by SSA that have recently been completed.

Section 2 describes major ongoing projects. Section 3 presents a bibliography of studies that have been

conducted by public and private entities regarding SSI payment levels, recipients, and reform proposals.

The bibliography is selective and contains only items published since 1990. References to earlier sources

may be found in last year’s edition of this report.

1. Recently Completed Work

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

Children with Disabilities

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 substantially tightened the

childhood SSI eligibility criteria. The legislation also required that all SSI children be redetermined based

on the adult disability criteria after turning 18 years of age, and that continuing disability reviews be performed every 3 years for children whose disability is expected to improve. Under contract to SSA, the

RAND Corporation has completed a study of the effect of the legislation on SSI caseloads and costs and

the impact on the children who lost benefits.

The study provides descriptive and quantitative estimates of the effects of the legislation on the children

who were on the rolls prior to the enactment of the legislation through analyses of SSA administrative data

and currently available survey data. Qualitative data were collected through a limited number of case studies of affected children, their families, and service providers in four States (see Inkelas et al. 1999, 2000).

In addition, the study provides estimates of the effect of the legislation on entry into the SSI program, the

SSI caseload, and program costs, accounting for both terminations and new allowances (see Rogowski

et al. 2002). The study finds that the long-term effect of the legislation on SSI caseloads and costs is

greater than the initial impact. This result stems from reduced entry into the program due to stricter eligibility rules, greater exits from the program due to continuing disability reviews, and the ongoing impact of

the annual age-18 redeterminations.

b. Analyses Using SSA’s Model of Financial Eligibility for SSI

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 eligible elderly and the effects of various options to modify the SSI program (see

Davies et al. forthcoming). The model suggests that the rate of participation among eligible elderly was

about 63 percent in 1991. The model was also utilized to simulate the potential effects of several

approaches to expand the SSI program to fight poverty among the elderly. Approaches focusing on incremental changes in the Federal benefit rate, the general income exclusion, and the asset test appear roughly

equally effective in reducing the poverty gap among the elderly on a cost-equivalent basis, while two

approaches focusing on relaxing the earned income exclusion are less effective. The financial eligibility

model has also been utilized to study eligibility for Medicare buy-in programs (see Rupp and Sears 2000).
2002 SSI Annual Report

96

2. Ongoing Research

a. National Survey of Children with Families

Due to the widely acknowledged shortcomings of existing data sources for evaluating the effects of welfare reform on SSI children and for tracking SSI children unaffected by welfare reform, SSA has undertaken to design and implement a national survey of children with disabilities. Among the questions the

survey is designed to answer are the following: 

 • What is the cost of caring for a disabled child? 

 • What are the uses of SSI benefits? 

 • What alternative sources of care are available to disabled children who lose SSI benefits? 

 • How is quality of life and utilization of medical services impacted by gaining or losing SSI benefits? 

 • What is the impact of receiving childhood SSI benefits on parental labor force participation? 

The goal is to collect data that will allow SSA to evaluate future changes to the SSI program that may

affect children and to further evaluate the effects of welfare reform on SSI children and their families.

Data collection for the survey will be completed in summer, 2002, and data files are expected in the fall.

b. Evaluation of the State Partnership Initiative Return-to-Work Demonstrations

In the fall of 1998, the Social Security Administration and the Department of Education announced the

award of 12 SSA cooperative agreements and 6 Rehabilitation Service Administration systems-change

grants under State Partnership Initiatives (SPI). SPI projects are designed to assist States in developing

alternative program structures and service delivery systems to increase employment of persons with disabilities who are receiving SSI or SSDI.

Mathematica Policy Research, Inc. (MPR), under contract to SSA, is designing and testing an evaluation

methodology for the SSA SPI projects. The core evaluation will rely on SSA administrative data and will

use appropriate methods to define comparison groups and determine the net impact of SPI interventions

on participants. A supplemental net-outcome evaluation will take advantage of any additional data provided by individual SPI projects. MPR is testing its evaluation methodology and will provide its final

report in September 2002.

c. Evaluation of the Ticket to Work

The evaluation of the Ticket to Work and Self-Sufficiency program will examine the following:

 • Total and net costs of the program,

 • The impact of the program on beneficiary work outcomes and reliance on SSA benefits,

 • The individual and service provision characteristics of service providers and provider networks,

 • The adequacy of incentives for providers to supply services,

 • The appeal of the program among the eligible population, and

 • The satisfaction of participants with the program in general.
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2002 SSI Annual Report

To the degree possible, the evaluation will utilize information from SSA administrative data and from the

Ticket to Work program implementation process. Such data will be insufficient, however, to cover many

of the evaluation topics required under the legislation, particularly the analysis of nonparticipation among

eligible beneficiaries. A significant survey effort will therefore be required to supply the necessary supplemental information to meet these evaluation requirements. The design of the evaluation is largely complete, and SSA expects to issue a contract to implement the evaluation in fall 2002. SSA is also holding a

technical workshop in May 2002 to obtain advice from outside experts on the adequacy of incentives for

providers to supply services to people with significant disabilities.

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2002 SSI Annual Report

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Wilschke, Susan. “Improving Child Support Enforcement for Children Receiving SSI.” Social Security

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2002 SSI Annual Report

H. GLOSSARY

Administrative Expenses (or Costs). Expenses incurred by the Social Security Administration (SSA) in

administering the Supplemental Security Income (SSI) program. Such administrative expenses are initially

paid from the OASI and DI Trust Funds as provided for in section 201(g)(1) of the Social Security Act.

The trust funds are subsequently reimbursed for such expenditures, including any interest lost, from the

General Fund of the Treasury.

Affidavit of Support. A contract under which a United States citizen or legal resident agrees to provide

support to maintain (i.e., to sponsor) an immigrant as a condition of the immigrant’s admission into the

United States.

Aged. Individuals aged 65 or older.

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

Disabled (APTD). The former Federal-State programs of adult cash assistance under titles I, X, and XVI

respectively, that were replaced in the 50 States and the District of Columbia by the SSI program in 1974.

These programs still operate in Guam, the Virgin Islands, and Puerto Rico and are administered at the Federal level by the Secretary of Health and Human Services.

Alien Lawfully Admitted for Permanent Residence. A noncitizen lawfully accorded the privilege of

residing permanently in the United States. Such individuals may be issued immigrant visas overseas by the

Department of State, or adjusted to permanent resident status while living in the United States by the

Immigration and Naturalization Service.

Appeal Rights Process. The administrative review process followed by SSA in determining an individual’s rights under the Social Security Act. The administrative review process consists of several steps,

which must be requested after the initial determination of eligibility, within certain time periods and in the

following order: (1) reconsideration, (2) hearing before an administrative law judge, and (3) an Appeals

Council review. SSA introduced a modification of this process in 10 States for disability applications filed

October 1, 1999 and later. Under this revised process appeals of initial disability denials are made directly

to the Office of Hearings and Appeals (OHA), thereby eliminating the reconsideration step. The options

for appeal beyond the OHA level are unchanged.

Assistance Based on Need. Assistance that is provided by certain programs which use income as a factor

of eligibility. The assistance must be funded wholly by a State, a political subdivision of a State, or a combination of such jurisdictions.

Assumptions. Values relating to future trends in certain key factors which affect the eligibility for SSI

benefits and the level of such SSI payments. Demographic assumptions include fertility, mortality, net

immigration, marriage, divorce, retirement patterns, disability incidence and termination rates, and

changes in the labor force. Economic assumptions include unemployment, average earnings, inflation,

interest rates, and productivity. The assumptions underlying the projections presented in this report are

consistent with the intermediate assumptions of the 2002 OASDI Trustees Report.

Asylee. A noncitizen already in the United States or at a port-of-entry who is granted asylum in

the United States. Asylum may be granted to an individual who is unable or unwilling to return to his/her

country of nationality, or to seek the protection of that country, because of persecution (or a well-founded

fear of persecution) based on the noncitizen’s race, religion, nationality, membership in a particular social

group or political opinion.

Attendant Care Services. Services (including personal care assistance) that are paid for from Federal,

State or local funds and which are provided by a paid attendant required to assist with work related and/or

personal functions. 
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Automatic Cost-of-Living Increase. The annual increase in SSI Federal benefit rates, effective for January of the current year, reflecting the change in the cost of living. The increase equals the percentage

increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers measured from the

average over July, August, and September of the second preceding year to the average for the same

3 months in the preceding year. If the increase is less than one-tenth of 1 percent, when rounded, there is

no automatic increase for the current year; the increase for the next year would reflect the increase in the

cost of living over a 2-year period.

Award. An administrative determination that an individual is eligible for an SSI benefit.

Blind. For purposes of the SSI program, an individual is considered to be blind if he/she has 20/200 or

less vision in the better eye with the use of a correcting lens, has tunnel vision of 20 degrees or less, or met

the October 1972 State definition of blindness and received benefits under the State’s former program of

Aid to the Blind in December 1973.

Blind Work Expenses (BWE). Any expenses incurred by a blind individual that are reasonably attributable to earning income. The BWE provision permits the exclusion of these expenses from the earned

income of a blind individual. (See “Impairment-Related Work Expenses (IRWE)” for the related exclusions for disabled individuals.)

Burial Funds. A comprehensive term that for SSI purposes includes revocable burial contracts, trusts and

other burial arrangements (including amounts paid on installment sales contracts for burial spaces), cash,

accounts, or other financial instruments with a definite cash value clearly designated for the individual’s

burial expenses.

Child. An unmarried blind or disabled individual who is not the head of a household and who is either

under age 18 or aged 18-21 and regularly attending school. 

Comparable Severity. The phrase in the Social Security Act that defined disability for children prior to

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

Under prior law, an individual under age 18 would have been considered disabled if he/she had an impairment of comparable severity to that required for individuals 18 or older.

Constant Dollars. Dollar amounts adjusted by the CPI to the value of the dollar in a particular year.

Consumer Price Index (CPI). Relative measure of inflation. In this report, all references to the CPI

relate to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Continuing Disability Review (CDR). An evaluation of an individual’s impairment(s) to determine

whether the person is still disabled within the meaning of the law for purposes of eligibility for SSI and

OASDI benefits.

Cost-of-Living Adjustment (COLA). See “Automatic Cost-of-Living Increase.”

Countable Income. An individual’s income less all-applicable exclusions. This amount is used to determine SSI eligibility.

Countable Resources. The amount of resources after all exclusions. This amount is used in determining

an individual’s or couple’s SSI eligibility. A resource may be cash or other liquid assets or any real or personal property that an individual (or his/her spouse) owns and could convert to cash to be used for their

support and maintenance. SSI law stipulates what items are to be excluded from resources. 

Current Dollars. Amounts expressed in nominal dollars with no adjustment for inflationary changes in

the value of the dollar over time.
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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. A bank account established for a disabled or blind child to contain retroactive SSI

payments that exceed six times the Federal benefit rate (FBR) plus State supplementation (certain smaller

retroactive payments may be placed in the account once it is established). Funds may be used for: 

 • Education,

 • Personal needs assistance,

 • Special equipment or housing modifications,

 • Medical treatment,

 • Therapy or rehabilitation, or

 • Other items or services that the Commissioner deems appropriate—

provided that the expense benefits the child and, in the case of the last four items, is related to the child’s

impairment. Money from a dedicated account which is misapplied must be repaid. These accounts are

excluded from resources and the interest earned is excluded from income.

Deeming. The process by which the income and resources of an ineligible individual are considered to be

available to a recipient when determining eligibility or payment amount. Deeming applies only between:

 • The living-with ineligible spouse and the eligible spouse,

 • The living-with ineligible parent(s) and eligible child(ren) under age 18, and

 • The immigration sponsors of some noncitizens and the noncitizen(s).

Demographic Assumptions. See “Assumptions.”

Disability. For individuals aged 18 or older, the inability to engage in any substantial gainful activity

(SGA) by reason of any medically determinable physical or mental impairment that can be expected to

result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.

An individual under age 18 must have a medically determinable physical or mental impairment, which

results in marked and severe functional limitations and which has lasted or can be expected to last for a

continuous period of not less than 12 months.

Disability Determination Services (DDS). Federally funded State agencies that make disability determinations for SSA.

Disaster Assistance. Assistance from Federal programs and agencies, joint Federal and State programs,

State or local government programs, and private organizations (e.g., the Red Cross) provided to victims of

a Presidentially declared disaster.

Disposal of Resources for Less Than Fair Market Value. Transferring resources, either liquid, real, or

personal property, for less than the resources are worth.

Earned Income. For SSI purposes, wages, net earnings from self-employment, remuneration for work in

a sheltered workshop, royalties on published work, and honoraria for services rendered are considered

earned income. The distinction between earned and unearned income is significant because more liberal

exclusions are applied to earned income.
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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.

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 2002 began October 1, 2001 and will end

September 30, 2002.

Food Stamps. The U.S. Department of Agriculture (USDA), under cooperative Federal-State agreements,

issues Food Stamp Program benefits in the form of paper food coupons (commonly known as food

stamps) and through electronic benefit transfer, to provide nutrition for low-income families. Food stamps

can be used only to buy food at stores authorized by USDA to accept them.

General Fund of the Treasury. Funds held by the Treasury of the United States, other than receipts collected for a specific purpose (such as Social Security) and maintained in a separate account for that purpose.

Gross Domestic Product (GDP). The total market value of goods and services produced by labor and

property located in the United States, regardless of who supplies the labor or property. 

Holding-Out Marriage. A situation in which a man and woman who are not legally married to each

other are living together in the same household and holding out to the community that they are husband

and wife and, as such, are treated as a couple for purposes of determining eligibility and payment amount

under SSI.

Home Energy Assistance. A Federal Government block grant program that provides funds to States for

energy assistance (including weatherization) to low-income households. This assistance may be provided

by a variety of agencies (e.g., State or local welfare offices, community action agencies, special energy

offices, etc.) and may be known by a variety of names (e.g., Low Income Home Energy Assistance Program (LIHEAP), Project Safe, etc.).

Household. A group of two or more individuals who use a single dwelling unit as primary quarters for

living and eating separate from other individuals’ living units.

Household of Another. An individual is considered to be living in the household of another when the

individual lives with others, does not own or rent the shelter, and does not pay a pro rata share of the

household’s food and shelter expenses. An individual who provides all of his/her own food, or lives in a
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public assistance household or in noninstitutional care, is not considered to be living in the household of

another. An individual who is determined to be living in the household of another is considered to be

receiving in-kind support and maintenance from that household, and his/her SSI benefit is reduced by

one-third of the FBR. 

Impairment-Related Work Expenses (IRWE). The provision that permits the exclusion from earnings

of the costs of items and services which are needed in order for a disabled individual to work, which are

paid for by the individual, and which are necessarily incurred by that individual because of a physical or

mental impairment. These IRWE’s are excluded from earnings when determining substantial gainful activity (SGA) or computing eligibility and ongoing SSI monthly payments. (See “Blind Work Expenses

(BWE)” for the related exclusions for blind individuals.)

Income. See—“Earned Income,” “In-Kind Income” and “Unearned Income.”

Individual Development Account (IDA). A savings account which low-income individuals, including

SSI recipients, may establish in order to save for purchasing a first home, meeting the costs of post-secondary education, or capitalizing a business. An individual’s deposits into an IDA are matched by a sponsoring nonprofit organization, or State or local government participating in the program.

Ineligible Spouse. The husband or wife of an eligible individual who is not eligible for SSI benefits.

Inflation. An increase in the volume of money and credit relative to available goods, resulting in an

increase in the general price level.

Infrequent or Irregular Income. Income that is received either infrequently or irregularly that can be

excluded from the determination of an individual’s income, provided that the total of this income does not

exceed $10 per month of earned income and $20 per month of unearned income. Infrequent means that it

is not received more than once in a calendar quarter from a single source. Irregular means that an individual could not reasonably expect to receive the income.

Initial Determination. A determination SSA makes about an individual’s eligibility for benefits or about

any other matter that gives that person a right to further administrative and/or judicial review.

In-Kind Income. Income that is not cash, but is food, clothing or shelter or something an individual can

use to obtain food, clothing or shelter.

In-Kind Support and Maintenance (ISM). Unearned income in the form of food, clothing, or shelter or

any combination of these.

Interim Assistance Reimbursement (IAR). The process used for reimbursing for basic assistance provided by a State to an individual either while the individual’s application for SSI was pending or during

the period in which an individual’s SSI benefits were suspended. SSA may reimburse a State that has provided this assistance. The individual’s retroactive SSI payment is sent to the State as reimbursement if: (1)

the State has an agreement with SSA to participate in IAR, (2) the individual has given SSA written authorization to have his/her retroactive payment sent to the State as reimbursement, and (3) the individual is

found eligible for SSI benefits or has had his/her benefits reinstated for the same period of suspense. 

Under IAR, after States reimburse themselves from an individual’s retroactive benefit, they must forward

any remainder to the individual within 10 days.

Living With. A required condition for parent-to-child and spouse-to-spouse deeming. Deeming of

income and resources occurs if an eligible child lives with his/her ineligible parent(s) or an eligible individual lives with his/her ineligible spouse. 

Maintenance-of-Effort. See “Passalong.”

Mandatory State Supplementation. See “State Supplementation.”
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Means-Testing. The measuring of income and resources against specified amounts as eligibility factors

for certain assistance benefits. SSI is a means-tested benefit program.

Medicaid. The program authorized under title XIX of the Social Security Act, which provides medical

assistance to certain low-income individuals and families and certain disabled and medically needy individuals. Medicaid is administered by the States with support from the Federal Government in the form of

matching grants. The Federal Government provides guidelines to the States for formulating their programs. Because these guidelines afford great leeway, Medicaid programs vary widely among the States.

Medicaid Facility. A medical treatment facility such as a hospital, extended care facility, nursing home,

or intermediate care facility, where Medicaid pays more than 50 percent of the cost of a person’s care.

Medical Facility. An establishment that makes available some treatment or services in addition to food

and shelter to four or more persons who are not related to the proprietor.

New Entrant. An SSI recipient in the first month of SSI payment receipt.

Noncitizen. An individual who is not a United States citizen. Also referred to in welfare and immigration

law as an alien. (See “Alien Lawfully Admitted for Permanent Residence,” “Asylee,” “Parolee” and “Refugee.”)

Nonqualified Alien. A noncitizen who is not in a qualified alien category for SSI eligibility purposes.

Public Law 105-306, the Noncitizen Benefit Clarification and Other Technical Amendments Act of 1998,

permanently extended SSI eligibility of all nonqualified aliens who were receiving SSI benefits on August

22, 1996 provided all other eligibility requirements continue to be met.

OASDI. The Old-Age, Survivors, and Disability Insurance programs established under title II of the

Social Security Act.

One-Third Reduction. The reduction of an individual’s SSI payment that occurs when an individual is

living in the household of another. Instead of determining the actual dollar value of in-kind support and

maintenance, one-third of the Federal benefit rate is counted as additional income to an individual living in

another person’s household for a full calendar month and receiving both food and shelter from the household.

Optional State Supplementation. See “State Supplementation.”

Overpayment. The payment of more than the amount due for any period, including any amounts of

Federally-administered State supplementary payments.

Parent. For SSI purposes, the natural mother or father of the child, or the person who legally adopted the

child, or the stepparent who lives in the same household as the child.

Parolee. A noncitizen, who appears to be inadmissible to the inspecting INS officer, but is allowed to

enter the United States under emergency humanitarian conditions or when the noncitizen’s entry is determined to be in the public interest. Parole does not constitute a formal admission to the United States and

confers temporary admission status only, requiring parolees to leave when the conditions supporting their

parole cease to exist.

Passalong. A requirement that States must meet in order to be eligible for Medicaid reimbursement. Any

State making supplementary payments (see “State Supplementation”) after June 30, 1977, must continue

making such payments and must pass along any cost-of-living increase to the Federal benefit rate. Two

methods are available to ensure that cost-of-living increases are passed on to the recipients.
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2002 SSI Annual Report

 • 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).

Payment Accuracy. The accuracy rate reflects the percent of dollars in SSI benefits that are paid correctly. One measure of the quality of the SSI program and SSA’s stewardship of it, based on reviews conducted by SSA to determine the accuracy of the payment and compliance with national instructions and

goals. 

Personal Needs Allowance. The amount allowed for an institutionalized recipient’s personal needs (currently $30). If an SSI recipient is in a Medicaid facility, the law requires that the SSI benefit be used only

for the recipient’s personal needs (i.e., that the institution cannot retain the benefit in repayment of the cost

of the individual’s care).

Plan for Achieving Self-Support (PASS). A plan that permits a disabled or blind SSI recipient to set

aside earned or unearned income and resources for a work goal. The income or resources set aside under a

PASS are used to pay for goods or services needed to reach that goal, such as education, vocational training, starting a business, or purchasing work-related equipment. Income and resources set aside under a

PASS are excluded from SSI income and resources. SSA must approve an individual’s PASS.

Population in the Social Security Area. The population comprised of (i) residents of the 50 States and

the District of Columbia (adjusted for net census undercount); (ii) civilian residents of Puerto Rico, the

Virgin Islands, Guam, American Samoa and the Northern Mariana Islands; (iii) Federal civilian employees

and persons in the Armed Forces abroad and their dependents; (iv) crew members of merchant vessels;

and (v) all other U.S. citizens abroad.

Presumptive Disability or Blindness. A finding that SSI payments may be made before SSA makes a

formal determination as to whether or not the individual is disabled or blind. The individual’s impairment

must be apparent and meet specified criteria. In addition, the individual must meet all other requirements

for eligibility. These payments may be made for no more than 6 months. The presumptive payments will

not be considered overpayments if SSA later finds that the individual is not blind or disabled.

Property Essential for Self-Support (PESS). The real and personal property used in a trade or business,

nonbusiness income-producing property and property used to produce goods or services essential to the

individual’s daily activities. PESS may be excluded from resources under certain conditions.

Proration of Benefits. The method of computing benefit amounts in months in which the individual reacquires eligibility after a month or more of ineligibility. In such months, an individual’s SSI benefit will be

paid according to the number of days in the month that he/she is eligible, beginning with the first day in

the month on which all eligibility requirements are met. In order to determine the benefit payable in a prorated month SSA counts the number of days an individual is eligible in the month. The amount of the individual’s regular monthly payment is multiplied by the number of days for which he/she is eligible for

benefits. That figure is divided by the number of days in the month for which the benefit is being determined. The resulting amount is the amount due for the prorated month. After 1996, proration for months

of initial eligibility was eliminated.
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Public Educational Institution. An institution that is operated by or controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county for the primary purpose of providing educational or vocational training. 

Public Emergency Shelter. A shelter for individuals whose homelessness poses a threat to their life or

health. 

Public Institution. An institution that is operated by or controlled by the Federal Government, a State, or

a political subdivision of a State such as a city or county. 

Publicly Operated Community Residence. A facility that provides food and shelter and some other service such as social services, help with personal living activities, training in socialization and life skills, or

occasional or incidental medical or remedial care. In order to be publicly operated it must be operated or

controlled by the Federal Government, a State, or a political subdivision of a State such as a city or county.

The facility must serve no more than 16 residents and must be located in a community setting.

Qualified Alien. An individual who is:

 • Lawfully admitted for permanent residence under the Immigration and Nationality Act (INA);

 • A refugee under section 207 of the INA;

 • An asylee under section 208 of the INA;

 • A person whose deportation is withheld under section 243(h) of the INA as in effect prior to April 1,

1997, or whose removal has been withheld under section 241(b)(3) of the INA;

 • A parolee under section 212(d)(5) of the INA for at least one year;

 • A person granted conditional entry under section 203(a)(7) of the INA as in effect prior to

April 1, 1980;

 • A Cuban or Haitian entrant as defined in section 501(e) of the Refugee Education Assistance Act of

1980; or

 • A certain alien, or an alien parent of a child, or an alien child of a parent who:

 — Has been battered or subjected to extreme cruelty in the United States by a spouse, parent, or certain other family members the alien, parent and/or child lived with;

 — Is not living in the same household with the abusive individual;

 — Has been determined to need SSI because of this abuse; and

 — Has a determination from the INS for a certain change in status.

Qualifying Quarter of Earnings. Credit for a requisite amount of earnings assigned to a calendar quarter

for the purpose of determining the SSI eligibility of a lawfully admitted permanent resident.

Quarter of Coverage. The crediting of coverage needed for insured status under the Social Security program. In 2002, a worker receives one quarter of coverage (up to four a year) for each $870 of annual earnings reported from employment or self-employment. This dollar amount is subject to annual automatic

increases in proportion to increases in average earnings.

Recipient. A person who has been awarded SSI payments based on an evaluation of his/her own countable income and resources, age, and disability status.
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2002 SSI Annual Report

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.

Resident of a Public Institution. An individual who can receive substantially all of his/her food and

shelter while living in a public institution is considered a resident of the public institution. Generally, an

individual who is a resident of a public institution throughout a month is ineligible for SSI.

Resident of the United States. A person who has established an actual dwelling place within the geographical limits of the United States with the intent to continue to live in the United States. (See “United

States.”)

Resource. The cash or other liquid assets or any real or personal property of an individual (or his/her

spouse, if any) that he/she could use or could convert to cash to be used for his/her support and maintenance.

Retroactive Payments. The SSI payments made in a month later than the month or months in which they

were due. Also referred to as “past-due” benefits.
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Retrospective Monthly Accounting (RMA). The calculation method used in the SSI program to determine an individual’s eligibility for each month. RMA has two parts: an eligibility determination and a payment computation. If the individual is ineligible based on the current month’s factors (including the

current month’s countable income), no payment is due and none is paid. If the individual is eligible based

on the current month’s factors, payment is computed. The benefit for a month is generally based on the

countable income from the second month before the current month. The basic formula is to subtract the

countable income from 2 months previous from the current month’s Federal benefit rate.

Section 1619(a) Status. The special SSI cash benefits provided to disabled individuals who lose eligibility for SSI benefits under the regular rules because they have earnings at the level that is ordinarily considered to represent substantial gainful activity.

Section 1619(b) Status. The special SSI recipient status for Medicaid purposes provided to working disabled or blind individuals when their earnings make them ineligible for regular or special cash payments.

Sponsor. An individual who has signed an affidavit of support for a noncitizen entering the country.

State Supplementation. The payments made by a State or one of its political subdivisions to aged, blind,

or disabled individuals.

 • Administration—The governmental unit responsible for administering State supplementary payments

may be either a State or local agency or SSA. Under State administration, the State must absorb both

program benefits and administrative costs. Under Federal administration, the State is responsible for

the program benefits and, as of January 1, 2002, pays an $8.50 administrative fee for each benefit

paid.

 • Mandatory Supplementation—The supplementary payments that are made only to beneficiaries who

were converted to the SSI program from former State assistance programs at the inception of the SSI

program. Mandatory minimum State supplementary payments are required to maintain the December

1972 payment levels that these beneficiaries received under the former State assistance programs.

States are required to provide the supplementation to maintain their Federal matching funds for Medicaid.

 • Optional Supplementation—The payments made by States to help persons meet needs not fully covered by Federal SSI benefits. The State determines whether it will make a payment, to whom, and in

what amount. These supplements, paid on a regular monthly basis, are intended to cover such items as

food, shelter, clothing, utilities, and other daily necessities. Some States provide optional supplementary payments to all persons eligible for SSI benefits, while others may limit them to certain SSI

recipients such as the blind or residents of domiciliary-care facilities, or they may extend payments to

persons ineligible for SSI because of SSI income.

Statutory Blindness. See “Blind.”

Student Earned Income Exclusion (SEIE). An earned income exclusion for an individual who is under

age 22, regularly attending school and neither married nor the head of a household, with certain limitations

established by regulations. Currently, up to $1,320 earned income in a month, but no more than $5,340 per

year, may be excluded.

Substantial Gainful Activity (SGA). The level of work activity used to establish disability. A finding of

disability requires that a person be unable to engage in SGA. Under current regulations, a person who is

not statutorily blind and is earning more than $780 a month (net of impairment-related work expenses) is

ordinarily considered to be engaging in substantial gainful activity. For the blind, the amount is $1,300 a

month.
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2002 SSI Annual Report

Supplemental Security Record (SSR). The computerized database maintained by SSA and containing

identifying information, income, resources and other eligibility factors, for all SSI recipients. The SSR

includes the history of SSI payments made to an individual.

Suspension. An ineligibility status which causes the nonpayment of benefits for a period of anywhere

from 1 to 12 months for any of a number of reasons such as income or resources over allowable levels,

absence from the United States, residence in a public institution, etc. Benefits can resume without reapplication, when all requirements for entitlement are again met. Suspense that lasts more than 12 months

results in a termination of the SSI record. (Once a record is terminated, reapplication is necessary.)

TANF. See “Temporary Assistance for Needy Families (TANF).”

Temporary Absence. An individual’s physical move from his/her permanent place of residence that does

not constitute a change in living arrangement. In general, a temporary absence is an absence from a permanent residence which is not intended to, and does not, exceed a full calendar month. 

Temporary Assistance for Needy Families (TANF). The State grant program of assistance for needy

families established by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996

(Public Law 104-193). TANF replaced the Aid to Families with Dependent Children program.

Termination. For an individual, cessation of benefits, which can occur for a number of reasons, including

death, medical improvement, or a period of suspension lasting longer than 12 months. 

Terminations. As used in section IV, the net reduction (after accounting for new entrants) in the number

of SSI recipients in current-payment status during a period. 

Trusts. A legal arrangement involving property and ownership interests. Generally, property held in a

trust will be considered a resource for SSI purposes if the assets of the trust could be used for the benefit of

the individual or spouse. 

Unearned Income. The income that is not earned income. Unearned income may be in cash or in-kind.

Some examples of unearned income are:

 • Annuities, pensions, and other periodic payments;

 • Retirement and disability benefits;

 • Veterans’, workers’ and unemployment compensation;

 • Alimony and support payments;

 • Dividends, interest and certain royalties; and

 • Rents. 

United States. For purposes of the SSI program, the United States consists of the 50 States, District of

Columbia and the Northern Mariana Islands.

Vocational Rehabilitation (VR). The process of restoring individuals with disabilities to the fullest physical, mental, vocational, and economical usefulness of which the person is capable. VR services are

designed to provide an individual with the training or other services that are needed to return to work, to

enter a new line of work or to enter the workforce for the first time.

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. 
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Work Incentives. Provisions in the SSI program that are intended to act as incentives for disabled or

blind individuals to work. Examples of work incentives under the SSI program are:

 • Earned income exclusions,

 • Impairment related work expenses,

 • Blind work expenses,

 • PASS, and

 • Section 1619 benefits.
SOCIAL SECURITY ADVISORY BOARD

STATEMENT ON THE SUPPLEMENTAL

SECURITY INCOME PROGRAM

Public Law 104-193 requires that members of the Social Security Advisory Board

be given an opportunity, either individually or jointly, to include their views in the Social

Security Administration’s annual report to the President and the Congress on the

Supplemental Security Income (SSI) program.

We appreciate the opportunity to present our views on this important program and

we have asked the Social Security Administration to include the following statement of

views in this year’s annual report, due May 30, 2002.

VIEWS OF THE BOARD REGARDING THE

INTEGRITY OF THE SSI PROGRAM

In its comments in previous annual reports, the Board has discussed a broad range

of issues and recommendations. In this report, we will confine our comments to one

aspect of the SSI program, namely SSA’s obligation to ensure that the public’s funds are

responsibly expended.

In March 2002, the Board issued a report titled SSA’s Obligation to Ensure that

the Public’s Funds are Responsibly Collected and Expended. In that report, we set forth

our concerns that major changes must be made to improve the integrity of SSA’s

operations. The report was based on the Board’s extensive five-year study of SSA’s

service to the public, of which program integrity is an integral part.

Taxpayers who support the Social Security and SSI programs must be confident

that their tax dollars are accurately collected and expended. Claimants and beneficiaries

must believe that program rules and procedures are rigorously followed and that the

benefits they and others receive are accurately paid.

The following comments highlight aspects of the integrity of the SSI program that

the Board believes need to be improved and our recommendations for improvement.

MAJOR AREAS THAT NEED TO BE STRENGTHENED

Accuracy of SSI payments

Since 1997, when the General Accounting Office added the SSI program to its list

of government programs at high risk of fraud, waste, abuse, and mismanagement, SSA

has given increased attention to the problem of inaccuracy of SSI payments. Despite

SSA’s efforts to improve the SSI determination and redeterminations processes, however,

the 2000 overpayment accuracy rate of 93.6 percent is only fractionally above the 1997

level of 93 percent. Both of these rates are below those reported in earlier years. For
2

example, in fiscal year 1991, the SSI overpayment accuracy rate stood at 96.2 percent.

Underpayments are also a problem, although of lesser magnitude. The underpayment

accuracy rate for 2000 was 98.6 percent. In 1991, it was 98.9 percent.

The dollar amounts involved are substantial. In 2001, SSA detected

overpayments of nearly $2 billion. In 2000 (the last year for which data are available),

SSA estimated underpayments at $440 million.

The agency points to a number of initiatives that it is pursuing to improve

payment accuracy, including gaining easier access to bank account balance information;

improving the quality of SSI adjudications, particularly redeterminations; and improving

efficiency in identifying and processing changes that affect payments. In addition, the

agency states that its recently developed Corrective Action Plan for SSI outlines

initiatives and pledges explicit executive accountability for results. But as the agency has

acknowledged, up to now the initiatives it has taken have been hampered by resource

constraints, which have limited its ability to take the corrective actions that are necessary

to avoid payment errors.

Although conducting redeterminations is one of the most useful mechanisms that

the agency has to prevent and identify SSI payment errors, over the last decade program

growth has far outstripped the growth in the number of redeterminations. Over the period

1990 – 2001, the number of SSI beneficiaries increased by 39 percent, but the number of

redeterminations increased by only 10 percent. In recent years, however, the agency has

attempted to make the redetermination process more efficient by increasing the number

of redeterminations of cases it believes are at high risk of error. This year the

Commissioner has decided to provide an additional $21 million to increase the number of

redeterminations. In fiscal year 2003, the agency is committed to conducting 2.45

million redeterminations. These actions are to be commended. However, unless more

staff is made available, SSA may have to put other important workloads on hold, creating

other problems.

Throughout SSA’s field operations there is widespread concern about the

agency’s capacity to properly administer the SSI program. In our visits to field offices,

employees have told the Board that they sometimes do not pursue certain lines of

questioning, such as the details of an individual’s living arrangements, because it takes

too long to resolve the issues that may be raised. They have told us that they are also

unable to process reports of earnings or changes in living arrangements as promptly as

they should because of competing priorities.

A number of agency employees have told the Board that many SSI claims are

currently being paid based largely on allegations. They recommended that more

information be obtained at the initial interview to ensure correct entitlement to benefits.

These comments reflect the fact that policies relating to eligibility for SSI are

complex and difficult to administer. The General Accounting Office has criticized the

agency for failing to be more active in dealing with SSI problems and in carrying out its
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planning and policy development role. The GAO has also observed that SSA’s

organizational culture places a higher priority on processing and paying claims than on

controlling expenditures by verifying financial eligibility and deterring fraud and abuse.

Both the GAO and the Office of the Inspector General (OIG) have stated that SSA

needs to commit more time and energy on training field office employees who do the

frontline work of obtaining and verifying information from SSI applicants. Both have

also urged the agency to change the way it measures work so as to provide rewards for

preventing overpayments and fraud as well as rewarding the processing of claims.

As the result of its own work, the Board believes that the concerns of the GAO

and OIG are well founded and that the agency needs to take appropriate action.

Collection of overpayments

Although the amount of SSI overpayments that SSA has collected has increased

every year since 1990, the amount of newly detected overpayments has grown more

rapidly. As a result, the balance of outstanding overpayments at the end of the year has

more than tripled since 1990.

Debts to the government such as these have prompted Congressional action. Over

the last decade the Congress has authorized government agencies to use a number of

collection tools that have increased substantially their ability to collect debt. SSA has

been gradually implementing these tools, and many of them are now in use.

SSI Overpayment Activity,

FY 1990-2001

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

199019911992199319941995199619971998199920002001

Billions of dollars

Write-offs

Collections

New detections

Ending balance
4

Three tools that have been authorized for collection of SSI overpayments but for

which implementation is not yet scheduled include collecting debt from an individual

who is a Federal employee by withholding from the employee’s salary, charging interest,

and using private collection agencies.

SSA has told the Board that implementation of the numerous tools that have been

authorized is labor intensive, requiring coordination among components of SSA and

between SSA and other agencies. They also require new systems developments.

Because of resource limitations, SSA has followed a policy of prioritizing those that the

agency thinks will have the biggest payoff, but progress has been exceedingly slow.

Not all overpayments are subject to the use of SSA’s collection tools. The law

provides that beneficiaries who are overpaid may request a waiver, which the agency may

grant under certain conditions. If a debt has been waived there are no additional attempts

to collect it.

The Office of Inspector General has raised questions about SSA’s waiver

practices. In a review of 26,000 Social Security waivers granted by the agency between

August 1996 and June 1997, the OIG found that nearly nine percent of the waivers were

incorrectly granted and half were inadequately supported. An SSA executive recently

told the Board that field offices often do not pursue overpayment collection because the

staffs are too busy. It is easier for them to waive the debt.

Collecting overpayments is highly cost-effective. According to SSA, the cost of

collecting a dollar of overpayments is currently about 11 cents. SSA should be moving

more effectively and aggressively to collect overpayments if it is to properly discharge its

stewardship responsibilities.

Accuracy of disability determinations

Disability determinations are a large part of the agency’s SSI workload. More

than 80 percent of current SSI recipients are receiving benefits because of disability.

SSA expects to receive more than 1.5 million SSI disability claims this year.

Of all the functions performed by SSA, none is more complex and labor intensive

than determining whether an individual is eligible for disability benefits. Providing the

highest possible quality of decision making constitutes one of the agency’s most difficult

stewardship challenges. As the Board has emphasized in reports on SSA’s disability

programs issued in August 1998 and January 2001, there is urgent need for improvement.

Data developed by the Board show large inconsistencies in decision making over

time, among regions of the country, and between State agency and ALJ levels of

adjudication. Allowance and denial rates, both overall and for specific impairment

categories, vary widely from State to State and region to region. The inconsistencies that

the Board has documented raise fundamental questions about whether claimants are

being treated fairly. There is a widely held belief among disability adjudicators and
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others who have studied the disability programs that the agency’s own policies and

procedures, as well as organizational structure, are significant causes of inconsistency in

decision making.

DI and SSI Claims Process:

Steps and Average Processing Time*

FY 2001

The question of whether the agency’s disability decisions are fair and accurate

involves large sums of money, both from the standpoint of individual claimants and from

the standpoint of the government. The value to an individual over a lifetime of being

awarded SSI benefits has been estimated at $40,000. When Medicaid is included the

value increases to $60,000. Although SSA has no statistics as to the dollar value of

incorrect decisions either before or after the appeals process, the cost to the government

of the agency’s incorrect decisions is likely to be quite high.

SOCIAL SECURITY

ADMINISTRATION

SSA Field Offices**

DI: 24.0 days

SSI: 32.2 days

Claimant starts here

SSA Field Offices

Reconsideration 

DI 25.8 days

Office of Hearings and Appeals

Administrative Law Judges

308 days

Office of Hearings and Appeals

Appeals Council

447 days

STATE AGENCIES

Disability

Determination Services

Initial Decision** *

DI: 90.3 days

SSI: 93.1 days

Disability

Determination Services

Reconsideration****

DI 68.8 days

FEDERAL COURTS

18 Months

* Processing times shown must be added at each step to find the total time

** Field office processing time includes all components of the field office work, including

taking the claim and processing it after the State agency makes a determination

*** SSA reports DDS initial processing time by programs; average total processing time

(DI and SSI) is not available

****SSA does not have data available for SSI reconsideration processing times
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The complex disability adjudication process is slow and difficult for claimants to

negotiate. A claimant who chooses to appeal an initial decision will likely wait another

year or more to get a final decision. Appeals are costly to claimants, most of whom turn

to an attorney to assist them with their claim. They are also costly to the agency. In

2001, a decision made at the ALJ level cost $2,157, more than three and a half times the

cost of an initial decision at the State agency level ($583).

The agency’s current quality assurance system is of limited value in analyzing

overall performance and in providing information that can be used to improve the quality

of the work that is being performed. The agency needs to replace it with a new quality

management system that will produce the comprehensive program information that

policy makers need to guide disability policy and procedures and to ensure accuracy and

consistency in decision making.

The adjudication process needs to be reformed. Regulations should be revised to

require States to follow specific Federal guidelines relating to educational requirements

and salaries for staff, training, carrying out quality assurance procedures, and other areas

that have a direct impact on the quality of their employees and their ability to make

decisions that are both of high quality and timely.

Reform of the hearing process needs to be considered, including having the

agency represented at the hearing, closing the record after the ALJ decision, and

establishing new rules for claimant representatives. A recent report to the Board

recommended serious consideration of an Article I Social Security Court for appeals from

the hearing level.1 The Board considers the establishment of such a court an important

subject that deserves attention.

The Administration and the Congress should continue to provide the agency with

the funding it needs to conduct continuing disability reviews (CDRs) to ensure that those

who are on the disability rolls continue to meet the criteria for eligibility. SSA will be

required to conduct 11.6 million CDRs over the next seven years if it is to comply with

the law. It is critical to the integrity of the program that the agency conduct the reviews

that the law requires. The CDR process is highly cost-effective. The actuaries estimate

that the CDRs conducted in fiscal year 2000 will save $2.1 billion in SSI program costs

over a ten year period.

The Administration and the Congress also need to address the fundamental issue

of the current lack of alignment between disability policy and administrative capacity.

Over the last decade and a half SSA has issued numerous regulations and rulings that

require more time and expertise on the part of disability adjudicators than was the case in

the past. Policy should be streamlined and uniformly implemented. The number of cases

being appealed to the Federal courts has been increasing rapidly, and the courts have

been remanding growing numbers of cases to the agency. The concern the Board has

1 Paul Verkuil and Jeffrey Lubbers, Alternative Approaches to Judicial Review of Social Security Disability

Cases, March 1, 2002.
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heard is that the agency needs to do a better job of following its own rules and

regulations.

Adjudicators in both State agencies and hearing offices are faced with the fact that

their workloads are also growing rapidly and resources are constrained. The result is that

there is a large gap between policy requirements and the agency’s capacity to meet those

requirements. To bridge it will require changes in policy, structure, or resources, or –

more likely – in all three of these interrelated aspects of the disability system.

Accountability of representative payees

Currently, more than two million SSI beneficiaries, about a third of the total, have

their benefits paid to representative payees. The number of representative payees

appointed by the agency has been growing rapidly. Between 1990 and 1999, the number

of SSI beneficiaries with payees rose 67 percent.

Under the law, representative payees must expend funds only for the beneficiary’s

use and benefit, report any event that will affect the benefit amount or eligibility, and

provide an annual written report explaining how benefits were used.

The agency’s implementation of representative payee requirements has been

problematic for many years. The 1995-96 Representative Payment Advisory Committee

established by SSA raised concerns about the agency’s policies for determining whether

payees are needed, how payees are selected, and how SSA educates payees about their

responsibilities. In its 1996 report the Committee stated, “It is clear that SSA places a

premium on speedy case processing to get payments out quickly.”

In a December 2001 report the OIG similarly observed that SSA is not performing

background checks of payees to determine whether they have financial problems, bad

credit, or have been convicted of a felony. In addition, it noted that SSA’s systems do not

effectively track payees who do not respond to and complete the required representative

payee reports.

SSA’s own employees have also raised concerns about the quality of

representative payees. They have told the Board that pressures to move the work make it

difficult or impossible for them to spend the time they need to investigate carefully the

qualifications of potential payees, and applicants’ claims are ordinarily not verified.

In response to these criticisms and to some notorious cases of abuse by payees,

SSA has recently taken steps to improve its administration of the representative payee

program. A regional executive told the Board, however, that SSA is just scratching the

surface on organizational payee problems. “The problems are deep and it will take a

tremendous amount of staff time to resolve them.”

The initiatives that SSA has undertaken to provide better oversight of institutional

and other large-scale payees are urgently needed. In addition, however, there are nearly
8

two million SSI beneficiaries whose well being is dependent upon the diligence and

integrity of individual payees. It seems clear that if vulnerable beneficiaries are to be

protected from misuse of benefits, the agency will need to devote considerably more

resources to the task of screening and monitoring payees than it has done heretofore.

WHAT NEEDS TO BE DONE TO FULFILL

THE AGENCY’S SSI STEWARDSHIP RESPONSIBILITIES

Improve SSI and disability program policies

Over the last three decades, SSI policy has tended to become more, rather than

less, complex, despite the work of a series of special panels that have looked for ways to

simplify it. Some of this complexity has been the result of legislative changes. Some

has resulted from rules and regulations that the agency itself has promulgated to address

issues that have arisen in administering the law.

It is our view that the agency should take the lead in developing measures,

however incremental, that will change SSI policy rules so that they will be less difficult

for the agency to administer and easier for applicants and beneficiaries to understand and

comply with. It will be difficult to reduce erroneous payments to an acceptable level

without simplifying policy rules.

The agency also urgently needs to conduct a thorough review of disability policy

rules and regulations to determine where changes can and should be made to improve the

quality and consistency of decision making. Attention should be given to how these rules

and regulations can be written more clearly and simply so that adjudicators in different

regions of the country and different levels of decision making will interpret and use them

in the same way. Both medical listings and vocational guidelines should be included in

this review.

A series of rulings issued by SSA in 1996 need close attention. These rulings are

commonly referred to as “process unification” rulings, because they were aimed at

bringing State agency and ALJ decisions closer together. The effect of these and other

changes in policy is that disability decision making by both State agency examiners and

administrative law judges has become considerably more subjective and complex.

As the Board has previously recommended, SSA should bring together into a

single policy unit individuals with knowledge and experience in the Office of Disability,

the Office of Hearings and Appeals, and the DDSs. We urge the agency to move forward

as expeditiously as possible in strengthening its capacity to develop and oversee the

implementation of disability program policy.

In addition, given the history of the many difficulties that SSA has had in carrying

out the disability policies that it has formulated, there is a demonstrable need for the

agency to rigorously assess the potential impact of major policy changes before they are

implemented.
9

Improve the tools the agency uses to measure performance and quality

Many throughout SSA’s organizational structure believe that the measures the

agency uses are skewed toward speed and productivity and away from other indicators

that would provide a better balance in the work that the agency is doing. Because

offices’ relative productivity influences the allocation of staff, managers throughout the

system have an overwhelming incentive to process work as quickly as possible in order to

protect their staffing levels. There are no counterbalancing measures of quality at the

local level.

It would seem essential that if SSA genuinely wants to ensure the integrity of its

programs, it must put into place a more balanced set of measures to drive performance in

the field than it currently has.

An outside evaluation of the disability quality system completed last year

highlighted the need for change in that system.2 It concluded that SSA’s current system

is of limited value in analyzing overall performance and in providing information that can

be used to improve the quality of decisions. What the evaluators recommended is the

replacement of the present quality assurance system by a totally new quality management

system. The new system would require a definition of quality that would have multiple

dimensions (accuracy, timeliness, efficiency, customer service, due process), and would

provide information that can be used to improve disability policy and the disability

process. It would identify variations in decision making by various components in the

system and provide the information needed to address them.

SSA’s leadership needs to make fundamental changes in the way the agency

conducts its work so that quality becomes a guiding principle for all aspects of its work.

Accelerate systems improvements

In discussions with employees throughout SSA’s administrative system, the

Board has been told of many areas in which SSA could expedite and improve the quality

of its work if its systems capabilities were improved. One of the foremost examples is in

the area of disability. For example, SSA has been working on developing and

implementing the capacity to create an electronic claims folder for each person who

applies for disability benefits. The information in this folder would be accessible by

adjudicators at each step of the application and appeals process. The creation of this new

folder system would prevent lost documents and speed up the transfer of information

from one level of the process to another. SSA’s lack of such a system, while it dedicates

space to storing masses of paper files and workyears to finding and handling them, is

reflective of its systems problems. Until recently SSA estimated that the new system

2 Evaluation of SSA’s Disability Quality Assurance (QA) Processes and Development of QA Options That

Will Support the Long-Term Management of the Disability Program, Final Report, prepared by The Lewin

Group, Inc. and Pugh Ettinger McCarthy Associates, L.L.C., March 16, 2001.
10

would not be ready until 2007. It has now committed to accelerating the development to

bring the system online in 2004, but that is still a full decade after it was first envisaged.

There is widespread acknowledgement that the work measurement, management

information, customer satisfaction, and performance measurement systems all need to be

improved, and all require significant systems developments. New systems developments

would also be an integral part of the new quality management system that the Board has

recommended, as described above.

In addition, there are many specific tools that could be used to improve the

integrity of the agency’s work. Among those that have been brought to the attention of

the Board are the ability to cross-check information about potential representative payees,

gain access to State birth and death records, cross-check information with military and

Veterans Affairs records, and numerous others.

Although these systems developments will enable SSA to better manage its

programs and improve service to the public, it is unlikely that they will result in any

significant reduction in the agency’s staffing needs. But systems improvements that will

enhance the agency’s stewardship of its programs are critically needed, and we urge the

agency, the Administration, and the Congress to give them the high priority that they

deserve.

Expedite decision making

In our discussions with employees at all levels of the agency we have heard a high

level of frustration about the fact that it takes the agency so long to decide whether a

proposal should be implemented, and even after a decision is made, to put it into effect.

We urge the agency to work more quickly and efficiently in assessing proposals for

change and in moving forward on those that it finds worthwhile.

Many of the recommendations we have heard relate to changing business

processes. One that the Board has heard repeatedly is that the agency should do more to

identify problems before they occur. As an SSA executive told the Board, “The key is to

prevent errors, not just to find them.”

Become more aggressive in working with other agencies

SSA should also explore how it can do more to draw upon the resources of other

governmental and non-governmental entities. The Board has heard many

recommendations for greater use of computer matches to verify information. SSA should

work closely with agencies at all levels, such as the Immigration and Naturalization

Service, the Internal Revenue Service, and State welfare offices and Boards of Workers

Compensation, to gain access to electronic information while appropriately addressing

privacy concerns.
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Other agencies can also help SSA fulfill its responsibilities to serve the public

appropriately. In particular, in implementing the new Ticket to Work program, the

agency should draw upon the expertise and resources of the Departments of Education

and Labor to the maximum extent possible.

SSA, like most other government agencies, has tended to look at its functions in

isolation. Although progress has been made in recent years in building relationships with

other entities, these relationships need to be strengthened further. Other agencies must

also be convinced that working with SSA to better meet the needs of the public is

worthwhile. Where warranted, the agency should turn to the Office of Management and

Budget (OMB) and the Congress for support and assistance in making interagency

cooperation and collaboration a high priority.

Ensure that maintaining the integrity of the agency’s work is recognized as an

agency priority

When SSA issued its strategic plan for 2000 – 2005, it made “ensuring the

integrity of Social Security programs, with zero tolerance for fraud and abuse” one of the

agency’s five strategic goals. Yet many employees with whom we have met have been

outspoken in their concern that the agency is not putting sufficient emphasis on program

integrity. In their understanding of agency policy, processing cases quickly is a higher

priority than program integrity.

If the agency wants to convince employees in the field that program integrity is

highly valued, that message needs to be given real substance. Perhaps the most effective

way, as we have noted above, is to make sure that the work that is performed to improve

program integrity is reflected in the way the agency measures performance and quality.

Based on our discussions with employees in the field, we believe there should

also be more and better training related to program integrity issues.

Program integrity should also be made an integral part of the agency’s budget

process. Program integrity activities that the agency proposes to carry out should be

explicitly identified and explained. The definition of program integrity that SSA uses in

its strategic plan currently includes only payment accuracy. Given the importance of the

Social Security number to the integrity of the Social Security and SSI programs, we

believe the agency should expand its definition to include integrity in the issuance of

Social Security numbers as well.

Ensure that the agency has sufficient staff with the right skills to do the job right

If SSA is to be able to fulfill its stewardship responsibilities, it needs to have

sufficient staff with the right skills to carry out the work that is required. But as the

Board has documented in the reports it has issued over the last five years, prolonged

downsizing has resulted in serious staffing shortfalls in key parts of the agency. We have
12

observed these shortfalls in offices throughout the country, including field offices, State

disability agencies, hearing offices, program service centers, and teleservice centers.

These are the offices that perform the frontline work that is so vital to the integrity

of the Social Security and SSI programs. When employees in these offices lack the time

that is needed to perform their work carefully and on time, or when there are too few

managers and supervisors to train and mentor them, the quality of the agency’s work is

immediately affected.

SSA has instituted many rules and procedures for finding and correcting errors

after they occur, such as issuing computer alerts when electronic cross-checking with

other agencies finds discrepant data. But pressures to handle more urgent and immediate

work make it difficult for employees to find the time to follow up on these alerts and take

the action that is required as promptly as they should. Often the inability to do work in a

timely way causes inaccurate payments, creating more work for the agency in the future.

If the agency had additional resources it could also be performing work that

would be highly cost effective. Last year, officials in the agency recommended a number

of program integrity initiatives that were estimated to save significant amounts of

program dollars at relatively low administrative cost. Some are being implemented, but

others have been deferred because of lack of staff to carry them out. One of the proposals

was to increase the number of SSI redeterminations by one million. This was projected to

cost about $62 million. By targeting the redeterminations on cases identified as highly

prone to error, the agency expected to produce overpayment benefits of $260 million, a

return of more than 4:1.

The agency proposed to make an even larger return on investment by providing

enough staff resources in field offices to speed up action on computer alerts that

identified increases in income or assets that might affect benefit levels. It was estimated

that an investment of $5.2 million would produce taxpayer savings of $66 million, or a

return of nearly 13:1. But both of these actions had to be deferred because of lack of

sufficient staff to carry them out.

The agency’s budget proposals to the Office of Management and Budget (OMB)

and the Congress should reflect the staffing levels the agency believes that it needs to

serve the public appropriately and meet its stewardship responsibilities. The agency’s

budget requests should reflect careful long-term planning and should be fully

documented so that OMB and the Congress can understand the implications of the

funding decisions that they make.

We believe that OMB and the Congress should agree to remove funding for

Social Security’s administrative costs from any cap that sets an arbitrary limit on

discretionary spending. The agency’s budget would continue to be subject to the review

of the Congress, which would determine the agency’s funding levels as part of the regular

appropriations process.
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In addition, agreement should be reached to provide funding outside any

discretionary spending cap for activities that are demonstrably cost-effective. Spending

caps should not apply where savings in benefit outlays more than offset administrative

expenditures. Current spending limitations are having the effect of saving administrative

dollars at the expense of program dollars. This is counterproductive from the standpoint

of taxpayers, and contributes to increases, rather than decreases, in the Federal budget

deficit.

THE SSI ANNUAL REPORT

The sixth Annual Report of the Supplemental Security Income Program by the

Social Security Administration provides a useful review of some program data.

However, we continue to be troubled by the fact that the agency is missing an opportunity

to use the report to address broad policy issues. We believe policy makers would find it

helpful if the agency would use the SSI report as an annual forum for formulating and

communicating a comprehensive overview of the program.

We recommend again that the agency use the SSI annual report as more than a

statistical report. SSA should consider using it as a way of bringing to the attention of

policy makers both the policy issues that it believes need to be resolved and the

difficulties the agency is encountering in administering the program. This is vital

information that can help the Congress, the Administration, and the public to become

better informed about the challenges SSA faces with respect to the program, and the need

to address them.

Hal Daub

Chairman

Dorcas R. Hardy Martha Keys David Podoff

Stanford G. Ross Sylvester J. Schieber Gerald M. Shea