Introduction
The Social Security Administration (SSA) is responsible for administering three major programs: the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) programs, commonly known as "Social Security," and the Supplemental Security Income (SSI) program.
Social Security is the most successful domestic program in the nation's history and arguably the single most effective antipoverty program ever created. Today, without Social Security, about 50 percent of the elderly would be living in poverty. Social Security also pays benefits to the children and spouses of workers who have died, as well as to disabled workers and their families. In fact, disability and survivors benefits make up about 30 percent of all Social Security benefits paid. They provide important protection for younger workers before retirement, protection that is often difficult or costly to obtain through private insurance.
SSI provides cash assistance to financially needy individuals who are aged, blind or disabled. To be eligible to receive SSI benefits individuals must have little in the way of personal savings or income. In providing a basic subsistence level, currently 73 percent of the poverty level, SSI is the safety net that protects them from destitution.
The government will collect $508 billion in Social Security contributions in FY 2001. Of the $508 billion, $89 billion are in excess of OASDI benefit outlays and, along with more than $68 billion in interest on Treasury securities held by the trust funds, will be credited to the OASI and DI trust funds. FY 2001 APP estimates by program including benefit outlays and the number of beneficiaries are shown in the chart below.
To administer these programs, SSA issues Social Security numbers (SSN), maintains earnings records for wage earners and self-employed individuals, takes claims and determines eligibility for benefits, updates beneficiary eligibility information, educates the public about the programs, and conducts research, policy analysis and program evaluation. SSA integrates these activities across all programs through a single national service-delivery structure. By doing so, SSA is able to enhance efficiency, avoid duplication of effort and increase opportunities to provide one-stop service to our customers. SSA's total administrative budget proposal for all programs is $7.237 billion¹, an amount equal to 1.6 percent of total program outlays.
| Programs |
FY 2001 Benefit Outlays ($ Billions) |
FY 2001 Benefit (Millions) |
|---|---|---|
|
Old-Age and Survivors Insurance |
$360.0 | 38.6 |
| Disability Insurance | $58.3 | 6.8 |
|
Supplemental Security Income |
$30.5 | 6.4 |
1.
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Includes $7 million in base research funding classified by OMB as "mandatory under Appropriations Committee jurisdiction" under the Budget Enforcement Act.