Relationship of benefit amount to family size. The benefit level for an eligible couple is 1%1⁄2 times the benefit level for an individual. No benefit is paid for an ineligible spouse (i.e. a spouse who is under age 65 and is not blind or disabled) or for dependent children of the beneficiary.11

TOTAL INCOME ATTAINABLE

Beneficiaries with unearned income.-$20 a month from any income. is always excluded.12 Therefore, beneficiaries with $20 a month or more will have a total income of at least $166 per month for an individual, or $239 for an eligible couple. For instance, if an individual receives a social security benefit of $120 per month, $100 would be counted against the benefit level of $146, and the SSI benefit would be $46, resulting in a total monthly income of $166. An eligible couple with $180 in social security benefits would receive an SSI benefit of $59 ($219 reduced by $160) and would have a total income of $239.

Monthly SSI benefit and total income of beneficiaries receiving specified amounts of social security benefits:

Beneficiaries with unearned income of less than $166 ($239 for a couple) will receive an SSI payment that will bring their total income up to these levels. When unearned income is equal to or greater than the "break-even" level, the person (or couple) is not eligible to receive any SSI benefit.

Beneficiaries with earned income.-If the beneficiary's income consists only of earnings, total income is the amount of the benefit level plus the amount of the excluded earnings ($85 and one-half of the remainder of monthly earnings) until the break-even point is reached. For an individual, the break-even point (amount of earnings at which the individual is not eligible for an SSI benefit) is $377 a month. The earnings break-even for a couple is $523.

If a beneficiary has both earned and unearned income, $20 a month of unearned income is excluded and $65 of earned income plus onehalf of the remainder of monthly earnings is also excluded. The breakeven level for total income (applicable to earnings only) is reduced by the amount of countable unearned income. For instance, if the individual receives $120 social security benefits, the monthly SSI benefit is $46. Earnings of $157 will reduce the benefit to zero. At this point the beneficiary has a total income of $277 and is not eligible for any SSI benefit.

11 When an essential person's needs are included, the benefit level is increased by an amount equal to that included for an eligible spouse. This provision applies only to beneficiaries transferred from State assistance programs when the needs of an essential person were included in the assistance payment in December 1973.

12 Additional income may be excluded under specified conditions. Illustrations used here apply to the majority of SSI beneficiaries who live independently, who have regular sources of unearned income from social security, or other retirement or disability benefits or pensions.

Monthly break-even income for SSI beneficiaries with specified type

of income:

Monthly break-even level of ineligible spouses' or parents' income when the eligible individual has no other income:

1 Break-even levels are increased by $73 for each dependent child in the home.

Two parents

$385

450

Relationship of benefit amounts to cost of living.—An amendment to the Social Security Act in July 1974 authorizes automatic increases in the SSI benefit level in the future at the same time and with the same percentage increase as the automatic cost-of-living increase in social security benefits. The first increase under this amendment is scheduled for July 1975.

Relationship of benefit amount to place of residence.-Benefit levels (SSI payment plus countable income) are uniform regardless of the place of residence. (See below for discussion of variations in State supplemental payments.)

Amount of benefits.-The average monthly Federal SSI payment in July-September 1974 was $97.98 (aged -$78.67; blind-$114.27; disabled $123.30). Data represent average payments to all persons. eligible for SSI benefits, including eligible spouses. Payments include retroactive payments and refunds of underpayments. Separate data for individuals and couples are not available. Higher average amounts for blind and disabled persons reflect differences in other income received by these individuals. (See tables 3 and 6 in the Supplementary Material for the number of beneficiaries and average payments by State.)

Comparison of benefit amounts to the poverty level.-The benefit level (July 1974) is 74 percent of the July 1974 nonfarm poverty level for a single person, and 88 percent of the poverty level for a couple. With OASDI or other unearned income, individuals have total income of 84 percent of the poverty level and couples have 96 percent of the poverty level.

1 Or SSI plus any type of unearned income.

2 Nonfarm poverty level for individuals 65 and over and for couples with head 65 and over. Poverty evels for individuals and couples under age 65 are about 10 percent higher.

3 Median income for individuals 65 and over and for couples with head 65 and over.

OTHER SERVICES PROVIDED OR AVAILABLE.-Vocational rehabilitation services are available for blind and disabled beneficiaries under age 65, by referral to State agencies administering such services. The vocational rehabilitation agencies are reimbursed by BSSI for the costs of services to SSI beneficiaries.

Disabled beneficiaries under age 65 who are drug addicts or alcoholics are referred to appropriate facilities for treatment, if available. Beneficiaries are referred for other social services to local agencies (departments of public welfare or social services) responsible for administering services under title VI of the Social Security Act, grants to the States for services to the aged, blind, or disabled."

BENEFITS FROM OTHER PROGRAMS WHICH ACCRUE BY VIRTURE OF ELIGIBILITY FOR SSI.-All SSI beneficiaries are eligible for medical care services under the medicaid program in 33 States and the District of Columbia. In 16 States, SSI beneficiaries transferred from State assistance programs in January 1974 are eligible for medicaid services and newly eligible SSI beneficiaries are eligible for medicaid if they would have been eligible under the States' medicaid plan as effective in January 1972 (or after they have spent for medical care any income in excess of the States' 1972 eligibility standards). States which have elected this option are: Colorado, Connecticut, Illinois, Indiana, Kansas, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire. North Carolina, Ohio, Oklahoma, Utah, and Hawaii. Arizona does not administer a medicaid program but plans to initiate the program in 1975.

SSI beneficiaries are eligible for food stamps in all States (and D.C.) except California, Massachusetts, Nevada, New York, and Wisconsin. In these States, the State supplemental payment level includes an amount equivalent to the cash value of the food stamp bonus.

In other States, SSI beneficiaries are automatically eligible to participate in the food stamp program regardless of income if all members of the household receive some form of public assistance (SSI, AFDC or general assistance). If some household members are not assistance recipients, the SSI benefit is included in the total household income to determine household eligibility for food stamps. In all instances, a separate application to the agency administering food stamps is necessary.

State Supplementation of the Federal SSI Benefit

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE. To prevent reduction of income of persons transferred to SSI who were receiving assistance payments under the State administered programs of old age assistance, aid to the blind, and aid to the permanently and totally disabled; and to permit and encourage States to make supplementary payments to all SSI beneficiaries in order to maintain combined benefit levels for new applicants as well as former recipients comparable to those paid in the State under the previous assistance programs.

13 An amendment to the Social Security Act (Public Law 93-647, Jan. 4, 1975) repealed title VI and included provisions for services to SSI recipients in Title XX: Grants to States for Services, effective October 1975.

DATE ENACTED AND MAJOR CHANGES SINCE ENACTMENT.-Public Law 92-603 (Social Security Amendments of 1972) which authorized the SSI program, provided for State supplementary payments to SSI beneficiaries, at the option of the State; that is, any payments by a State or political subdivision based on need, regularly paid to SSI beneficiaries, is not counted as income and does not reduce the SSI benefit.

In July 1973, an amendment (Public Law 93-66) required States to make supplementary payments to all persons receiving assistance in December 1973 under the former assistance programs whose income would otherwise be reduced by transfer to the SSI program. Such supplements are called mandatory. Other supplements are called optional.

ADMINISTERING AGENCY.-The mandatory and optional supplemental payments can be administered by the State or by the Federal agency. If a State agrees to Federal administration of an optional supplement, the Federal agency also administers the mandatory supplement in that State.

Mandatory supplements.-The Federal agency (Social Security Administration) administers the mandatory supplement in 31 States and the District of Columbia. The remaining States administer their own mandatory supplements. (Even though the SSI benefit level is higher than the benefit level used in the former assistance programs in about one-half of the States, some recipients in all States received benefits above the SSI level in December 1973 because of special needs, cost of institutional care, etc., included in the assistance payment.)

Optional supplement.-The SSA administers an optional State supplement in 17 States; 17 States administer their own optionalsupplement, and 17 States provide no optional supplement to SSI recipients. See table 9 in the supplementary material.

FINANCING. In general, States are responsible for the cost of State supplementary payments. However, if a State agrees to Federal administration of the optional supplement, the State is protected against increased costs above the State's share of assistance expenditures in the former programs for the comparable quarter in 1972. This "hold harmless" provision applies to supplemental benefit levels up to the payment levels in effect in the State in January 1972. If the State's supplemented benefit level exceeds the January 1972 level, the State is responsible for the additional cost. This has the effect of protecting States against costs of increased caseloads under SSI but requires States to meet the costs of benefits they elect to pay which exceed the January 1972 levels.

States which administer their own mandatory and/or optional supplements are responsible for the total cost of administration. When the mandatory supplement only is administered by the Federal agency, the cost of administration is met by the Federal agency, and the State is charged the full cost of the supplement. When the Federal agency administers the optional and mandatory supplements in a State, the cost of administration is met by the Federal agency, and the State is charged the cost of the supplemental benefit up to the amount

46-032-75- -9

of State assistance expenditures for the comparable program in 1972. Any excess costs are met from Federal funds. In the first 6 months of 1974, six States received "hold harmless" payments totaling $36,434,000. As noted above any portion of the State supplement which exceeds the January 1972 payment levels in the comparable assistance program is also charged to the State.

1 Includes recipients of mandatory and optional supplements. Separate data not available.

2,959

The calendar year 1974 cost of State supplementation of SSI will probably be about $1.3 billion.

Mandatory supplement-eligibility criteria and amount of supplemental benefits. Persons who received assistance payments as aged (65 years or over), blind or disabled persons under State assistance programs in December 1973 are eligible for a supplementary payment if their total income from other sources, including SSI, is less than they received (or would have received if their circumstances changed subsequently) in December 1973, and they continue to meet the basic eligibility conditions for receipt of SSI benefits.

The amount of the supplementary benefit is individually determined since it is based on the amount of income received in December 1973. The supplementary benefit for any month is the difference between the assistance payment plus other income of the recipient in December 1973, and the SSI payment plus other income of the recipient in the current month. If the beneficiary's circumstances change, the amount the individual would have received in December 1973 is recalculated and the supplemental benefit adjusted accordingly. If the supplemental benefit is decreased because of reduction of amounts included for special needs, shelter costs or an essential person, the supplemental payment is not increased subsequently because of changes in these needs.

The number of persons entitled to a mandatory supplement will decrease over time as the SSI benefit level increases and supplements are discontinued because of death or changes in circumstances. Among 18 States in which mandatory supplement recipients can be identified, 10 percent or fewer SSI recipients received a mandatory supplement in 9 States in August 1974. See table 7 for average supplementary

14 Massachusetts, California, New York, Wisconsin, Hawaii, and Nevada.