Supplemental Security Income

Abstract

Supplemental Security Income The Supplemental Security income (SSI) program provides income support to persons aged 65 or older, blind or disabled adults, and blind or disabled children. Eligibility requirements and Federal payment standards are nationally uniform. The program is administered by SSA. The 1994 Federal SSI benefit rate for an individual living in his or her own household and with ho other countable income is $446 monthly; for a couple (with both husband and wife eligible), the SSI benefit rate is $669 monthly. Program Summary The federally administered Supplemental Security Income (SSI) program was established by Congress in 1972, with payments beginning in January 1974. It 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 or her own household and having no other income is provided, as of January 1994, a monthly cash payment of $446 ($669 for a couple if both members are eligible). Since 1975, these Federal SSI benefit rates have been increased at the same time, and by the same percentage, as the cost-of-living increases in OASDI benefits. The Social Security amendments of 1983 delayed the July 1983 cost-of-living increases until January 1984 and rescheduled future increases for January. However, a general increase effective July 1983 raised the Federal SSI benefit level by $20 per month for an individual and $30 for a couple. Cost-of-living increases in SSI continue to be based on changes in the Consumer Price Index. If an individual or couple is living in another person's household and is receiving both food and shelter from the person in whose household they are living, the Federal benefit rate is reduced by one-third. This is done instead of determining the actual dollar value of the in-kind support and maintenance. One-third of the Federal benefit rate is counted as an additional income. For institutionalized persons, the eligibility requirements and payment standards depend on the type of institution. Inmates of public institutions with some exceptions--for example, publicly operated community residences serving no more than 16 persons--are ineligible for SSI. Except in certain instances when the expected stay in the institution(s) is less than 3 full months, or in the first 2 full months of the stay of an individual who was eligible under section 1619 in the month that he or she entered the institution, a maximum payment of $30 a month is set for persons in public or private institutions who receive a substantial part of the cost of their care from the Medicaid program (Title XIX of the Social Security Act). Other eligible persons in private institutions may receive up to the Federal benefit rate applicable to those not living in institutions. The Federal payment is based on the individual's countable income. Not all income is counted against the Federal SSI benefit level. The first $20 monthly in OASDI benefits or other earned or unearned income is not counted. Also excluded is $65 monthly of earnings plus one-half of any earnings above $65. For example, a person living in his or her own household, whose sole income is a $200 monthly OASDI benefit, would receive $266 in Federal SSI payments: $446 - ($200-$20) = $446-$180 = $266. A person whose income consists of $500 in gross monthly earnings would receive $238.50 in Federal SSI payments: $446 - (($500-$85)/2) = $446-$207.50 = $238.50. Beginning in October 1982, an SSI application is effective on the date of filing or, if later, the date on which the individual meets all criteria of eligibility. The payment for the first month of eligibility (and the first month following a period of ineligibility) will be pro-rated on the number of days for which there is an effective application. …