Additionally, the Social Security Administration's (SSA) regulations have been amended to alter the specific date on which monthly Social Security benefits will be paid. In general, under previous regulations, OASDI benefits were paid on the third of the month following the month for which benefits are payable. Under the amended regulations, most new beneficiaries who file for benefits after April, 1997, will be paid on the second, third, or fourth Wednesday of the month. Beneficiaries living in a foreign country and beneficiaries already entitled to a benefit on the effective date (which is consequently paid on the third of the month) who become entitled to a different benefit after the effective date, will continue to be paid on the third instead of on one of the new payment dates. Persons concurrently entitled under both the OASDI and Supplemental Security Income (SSI) programs will continue to receive OASDI benefits on the third of the month.
Since premium payments for persons enrolled in the Supplementary Medical Insurance (SMI) program are deducted from their Social Security checks at the time their monthly checks are paid, there was a concern that the SMI Trust Fund would suffer loss of interest income under the payment cycling regulation. The Social Security Administration and the Health Care Financing Administration (HCFA) have agreed on a process under which SSA will continue to make available on the third of the month the anticipated SMI premium payments to be paid during the entire month, irrespective of a beneficiary's actual payment date. Thus, there will be no loss of interest income to the SMI Trust Fund.
The actuarial estimates shown in this report reflect the anticipated effects of these changes.