FY 2022 Congressional Justification

Table of Contents

Budget Overview

A Message from the Commissioner ................................................................................................. 1

Budget Highlights .............................................................................................................................. 3

Programs and Budgets ...................................................................................................................... 4

FY 2022 Funding Table .................................................................................................................... 9

FY 2022 Performance Table ......................................................................................................... 11

Budget Summary ............................................................................................................................ 13

Improving Customer Experience .................................................................................................. 13

Modernizing Our Information Technology .................................................................................. 23

Streamlining Our Policies ............................................................................................................. 26

Safeguarding Our Programs .......................................................................................................... 27

Technical Material

Summary Table of Appropriation Request and Key Tables

Payments to the Social Security Trust Funds

Appropriation Language ............................................................................................................... 12

General Statement .......................................................................................................................... 13

Annual Appropriation ................................................................................................................... 13

Permanent Indefinite Authority .................................................................................................... 13

Budgetary Resources ...................................................................................................................... 15

Analysis of Changes ...................................................................................................................... 16

Budget Authority and Obligations by Activity............................................................................. 16

Obligations by Object Class .......................................................................................................... 18

Background ..................................................................................................................................... 19

Authorizing Legislation................................................................................................................. 19

Appropriation History ................................................................................................................... 20

Pension Reform ............................................................................................................................... 22

Purpose and Method of Operation ................................................................................................ 22

Rationale for Budget Request ....................................................................................................... 23

Unnegotiated Checks ...................................................................................................................... 24

Purpose and Method of Operation ................................................................................................ 24

Rationale for Budget Request ....................................................................................................... 26

Coal Industry Retiree Health Benefits ......................................................................................... 27

Purpose and Method of Operation ................................................................................................ 27

Progress to Date ............................................................................................................................. 28

Supplemental Security Income Program

Appropriation Language .............................................................................................................. 31

Language Analysis ........................................................................................................................ 32

General Statement .......................................................................................................................... 33

Program Overview ........................................................................................................................ 33

FY 2022 President’s Budget Request ........................................................................................... 36

Budgetary Resources ...................................................................................................................... 37

Analysis of Changes ...................................................................................................................... 38

New Budget Authority and Obligations by Activity .................................................................... 41

New Budget Authority and Obligations by Object ...................................................................... 42

Background .................................................................................................................................... 43

Authorizing Legislation................................................................................................................. 43

Appropriation History ................................................................................................................... 44

Federal Benefit Payments .............................................................................................................. 48

Purpose and Method of Operation ................................................................................................ 48

Rationale for Budget Request ....................................................................................................... 48

SSI Recipient Population .............................................................................................................. 49

Benefit Payments ........................................................................................................................... 51

Administrative Expenses ............................................................................................................... 53

Purpose and Method of Operation ................................................................................................ 53

Rationale for Budget Request ....................................................................................................... 54

Beneficiary Services ....................................................................................................................... 55

Purpose and Method of Operation ................................................................................................ 55

Rationale for Budget Request ....................................................................................................... 56

Additional Information on VR Cost Reimbursement and TTW Programs ................................. 57

Research, Demonstration Projects, and Outreach ..................................................................... 59

Purpose and Method of Operation ................................................................................................ 59

Rationale for Budget Request ....................................................................................................... 60

Related Funding Sources ............................................................................................................... 79

Administration of Our Research Activities .................................................................................. 82

Research Investment Criteria ........................................................................................................ 83

Limitation on Administrative Expenses

Appropriation Language/Background ........................................................................................ 89

Authorizing Legislation ................................................................................................................. 89

Appropriation Language ................................................................................................................ 90

Language Analysis......................................................................................................................... 92

Significant Items in Appropriations Committee Reports ............................................................. 96

Improper Payments ...................................................................................................................... 105

Pilot Programs.............................................................................................................................. 105

Consultative Exams (CE) ............................................................................................................ 117

Appropriation History.................................................................................................................. 121

SSA-Related Legislation from January 2020 to March 2021 .................................................... 127

General Statement/Budgetary Resources/Performance .......................................................... 130

Limitation on Administrative Expenses Overview ..................................................................... 130

Key Assumptions ......................................................................................................................... 130

Size and Scope of Our Programs................................................................................................. 131

Funding Request .......................................................................................................................... 132

All Purpose Table ........................................................................................................................ 134

Additional Funding for Coronavirus Pandemic (COVID-19) .................................................... 135

SSI State Supplementation/ Impact of States Dropping Out ...................................................... 137

Outreach to Vulnerable Populations ........................................................................................... 139

Budget Authority and Outlays ..................................................................................................... 145

Amounts Available for Obligation/Analysis of Changes ........................................................... 147

Summary of Change in Administrative Obligations From FY 2021 to FY 202 ........................ 149

Budgetary Resources by Object .................................................................................................. 151

Estimated Distribution of Agency Costst.................................................................................... 152

Workload Processing and Cost Distribution Across the Organization ...................................... 154

Performance Targets .................................................................................................................... 156

Program Integrity ......................................................................................................................... 158

FY 2020 Disability Decision Data .............................................................................................. 162

Priority Goals ............................................................................................................................... 163

Additional Budget Detail ............................................................................................................. 164

Information Technology .............................................................................................................. 164

SSA Organizational Chart ........................................................................................................... 188

Major Building Renovation and Repair Costs ............................................................................ 189

Physical Infrastructure ................................................................................................................. 190

Social Security Advisory Board .................................................................................................. 195

Office of the Inspector General

Appropriation Language ............................................................................................................. 199

General Statement ........................................................................................................................ 200

Overview...................................................................................................................................... 200

FY 2022 Major Initiatives ........................................................................................................... 203

SSA’s Significant Management Challenges ............................................................................... 208

Monetary Benefits ....................................................................................................................... 211

Transfer Authority ....................................................................................................................... 211

Budgetary Resources .................................................................................................................... 212

Analysis of Changes .................................................................................................................... 213

Budget Authority by Activity ..................................................................................................... 216

Budget Resources by Object ....................................................................................................... 217

Background ................................................................................................................................... 218

Authorizing Legislation............................................................................................................... 218

Appropriation History ................................................................................................................. 219

OIG’s Organizational Structure and Mission........................................................................... 223

General Purpose........................................................................................................................... 223

Rationale for the Budget Request ............................................................................................... 224

Annual Performance Plan

A Message from the Commissioner ....................................................................................................3

Our Mission .........................................................................................................................................4

Our Programs .......................................................................................................................................4

Our Organization .................................................................................................................................5

Agency Plans and Performance ..........................................................................................................7

Budgeted Workload Measure Results .............................................................................................. 39

Major Management and Performance Challenges........................................................................... 44

Appendix A: Program Evaluations .................................................................................................. 49

Appendix B: How We Ensure Our Data Integrity ........................................................................... 54

Appendix C: Summary of Key Management Officials’ Responsibilities ...................................... 56

Bipartisan Budget Act of 2015 Section 845(a) Report

SOCIAL SECURITY ADMINISTRATION

FY 2022 PRESIDENT'S BUDGET

Key Tables

Table i.1 - Summary Table of SSA’s Appropriation Request

Table i.2 – SSA Full Time Equivalents and Workyears

Table i.3 – SSA Outlays by Program (in millions)5

Table i.4 – Current Law- OASDI Outlays and Income (in millions)

Table i.5 – Current Law- OASDI Beneficiaries and Average Benefit Payments (in thousands)

Table i.6 – Current Law- Supplemental Security Income Outlays (in millions) 7

Table i.7 – SSI Recipients and Benefit Payments 11 (Recipients in thousands)

Table i.8 – Special Benefits for Certain WWII Veterans Overview

(Outlays in millions)

Table i.9 – Administrative Outlays as a Percent of

Trust Fund Income and Benefit Payments - FY 2022 (in millions)

Table i.10 – Tax Rates, Wage Base and Economic Assumptions

CONTENTS

TABLES

APPROPRIATION LANGUAGE

PAYMENTS TO THE SOCIAL SECURITY TRUST FUNDS 1

For payment to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as provided under sections 201(m) and 1131(b)(2) of the Social Security Act, $11,000,000. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2021.)

GENERAL STATEMENT

The Payments to the Social Security Trust Funds (PTF) account provides Federal fund payments to the Social Security trust funds for several distinct activities. The purpose of each requested payment is to put the trust funds in the same financial position they would have been in had they not borne the cost of certain benefits or administrative expenses chargeable to general revenues. This account includes payments requiring an annual appropriation and payments made to the trust funds under permanent indefinite authority.

ANNUAL APPROPRIATION

The annual PTF appropriation provides reimbursement to the Social Security trust funds for non-trust fund activities. These activities include pension reform and interest on unnegotiated checks. Listed below is the estimated annual appropriation and resulting obligations for

FY 2022.

Table 1.1—Annual Appropriation and Obligations

(In thousands)

PERMANENT INDEFINITE AUTHORITY

Amounts not subject to the annual appropriation include: (1) receipts from Federal income taxation of Social Security benefits; (2) Federal Insurance Contribution Act (FICA) and Self-Employment Contribution Act (SECA) tax credits; (3) reimbursement for Federal employee union administrative expenses; and (4) reimbursements for the loss in FICA tax revenue resulting from the payroll tax holiday provided by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and extended by the Temporary Payroll Tax Cut Continuation Act of 2011. The permanent appropriation provides that the trust funds be credited for each of these revenue items.

Taxation of Social Security Benefits

The Social Security Amendments of 1983 provide for taxation of up to one-half of Social Security benefits in excess of certain income thresholds. The Omnibus Reconciliation Act of 1993, P.L. 103-66, amended this provision so that up to 85 percent of benefits could be subject to taxation. The additional amounts collected from this 1993 provision are paid to the Hospital Insurance (HI) Trust Fund; no additional income is due to the Social Security trust funds resulting from the enactment of the 1993 law.

Section 733 of the Uruguay Round Agreements Act, P.L. 103-465, also increased the taxable portion of nonresident aliens’ Social Security benefits from 50 percent to 85 percent. The Offices of the General Counsel at SSA and at the Centers for Medicare and Medicaid Services, Department of Health and Human Services, agreed that the additional income resulting from the law should go to the Old-Age, Survivors, and Disability Insurance (OASDI) trust funds as opposed to the HI Trust Fund.

The taxes are collected as Federal income taxes; subsequently, an equivalent payment to the Social Security trust funds is made from the general funds of the Treasury. Transfers of estimated aggregate tax liabilities arising from Social Security benefits of U.S. citizens are made quarterly and then adjusted as actual receipts are known. The estimated income from these taxes is $34,556 million in FY 2021 and $43,971 million in FY 2022 from U.S. citizens; the taxes imposed on aliens are withheld from benefit payments and will generate estimated income of $250 million in FY 2021 and $264 million in FY 2022. The estimates for taxation of benefits reflect corresponding growth related to benefit levels and the beneficiary population.

FICA and SECA Tax Credits

The Social Security Amendments of 1983 also provided for the granting of FICA and SECA tax credits to individuals. The tax credits are granted at the time the individual is taxed and are funded by the general funds of the Treasury through reimbursement to the trust funds. The FICA tax credit applies only to wages earned in calendar year 1984. The SECA tax credit applies from calendar year 1984 through calendar year 1989. There are small periodic adjustments made due to tax credits being applied retroactively.

Reimbursement for Employee Union Expenses

In addition to taxation of benefits and tax credits, the PTF account includes reimbursement to the trust funds from general funds, including interest, for certain administrative expenses incurred in support of Federal employee union activities. In FYs 2021 and 2022, $11 million will be funded initially by SSA’s Limitation on Administrative Expenses (LAE) appropriation.

Reimbursement for Payroll Tax Holiday

P.L. 111-312, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, reduced employees’ payroll contributions from 6.2 percent to 4.2 percent for calendar year 2011. P.L. 112-78, the Temporary Payroll Tax Cut Continuation Act of 2011, amended P.L. 111-312 to extend the reduced payroll contributions through February 29, 2012. On February 22, 2012, the Middle Class Tax Relief and Job Creation Act of 2012

(P.L. 112-96) extended the reduced rate through December 31, 2012. The general funds reimburse the trust funds for this loss in tax revenue. While the law has expired, we expect additional adjustments for prior years will continue to occur. We estimate that there will be a $2 million prior year adjustment for FY 2021.

BUDGETARY RESOURCES

The FY 2022 annual appropriation request for PTF is $11,000,000. We expect to make $44,257,050,000 in payments to the trust funds in FY 2022, including amounts appropriated under permanent indefinite authority.

Table 1.2—Amounts Available for Obligation 1

(In thousands)

The “Start-of-Year” and “End-of-Year” unobligated balances represent funds appropriated for the Coal Industry Retiree Health Benefits Act (CIRHBA) in FYs 1996 and 1997 and made available until expended. The lapsed unobligated balance represents the amount of the annual appropriation not obligated in the current year.

ANALYSIS OF CHANGES

The FY 2022 annual appropriation request is the same as the FY 2021 level. The obligations reported below include CIRHBA activity, funded from unobligated balances carried forward from prior years. These funds, provided in FYs 1996 and 1997, remain available until expended.

Table 1.3—Summary of Changes

(In thousands)

BUDGET AUTHORITY AND OBLIGATIONS BY ACTIVITY

The table below displays the budget authority and obligations for each of the PTF activities funded by the annual appropriation. Prior year unobligated balances fund CIRHBA obligations.

Table 1.4—New Budget Authority & Obligations, Annual Authority 1

(In thousands)

The table below displays budget authority and obligations for the PTF activities not subject to the annual appropriation. This includes taxation of benefits, FICA and SECA tax credits, reimbursement for certain union administrative expenses, and reimbursements for the employee payroll tax holiday. The actual amount appropriated for these activities is determined by the actual amount collected from, or to be reimbursed for, each activity.

Table 1.5—Budget Authority and Obligations,

Permanent Indefinite Authority

(In thousands)

OBLIGATIONS BY OBJECT CLASS

The table below displays the obligations by object class for the total PTF account (annually and permanently appropriated funds).

Table 1.6—Obligations by Object

(In thousands)

BACKGROUND

AUTHORIZING LEGISLATION

The Social Security Act sections described below authorize the PTF account.

Table 1.7—Authorizing Legislation (In thousands)

APPROPRIATION HISTORY

The table below displays our annual appropriation request, amounts approved by the House and Senate, and the amount Congress ultimately appropriated. This does not include amounts appropriated under permanent authority.

Table 1.8—Appropriation History Table

PENSION REFORM

Authorizing Legislation: Section 1131(b)(2) of the Social Security Act.

PURPOSE AND METHOD OF OPERATION

The purpose of this payment is to reimburse the OASI Trust Fund for the cost of certain pension reform activities chargeable to Federal funds.

Table 1.9—Pension Reform: Budget Authority

The Employee Retirement Income Security Act of 1974, P.L. 93-406 (Pension Reform Act, also known as ERISA) established section 1131 of the Social Security Act. This requires the Commissioner of Social Security to furnish information regarding deferred vested pension rights to pension plan participants (and their dependents or survivors), either upon request or automatically upon application for retirement, survivors, or disability insurance benefits.

Each time an employee leaves employment that earned him or her vested rights to a pension, we receive related information from the Internal Revenue Service (IRS) in either paper or electronic format. We control, scan (using optical character recognition), and, if necessary, key the paper forms and transfer the data to the ERISA mainframe system. We add these data, along with electronic data received from the IRS, to the ERISA Master Files after the name is verified against the NUMIDENT (SSN record) database. Each month, we compare an activity file of new benefit applications to the ERISA Master Files. We send an ERISA notice of pension plan eligibility to individuals included in both the activity file and the ERISA Master Files. This notice includes the information the worker needs to contact the pension plan administrator. We also resolve exceptions and respond to inquiries from employers and the public.

Section 1131(b)(1) permits the administrative expenses of carrying out this pension reform work to be funded initially from the OASI Trust Fund through our LAE account. Section 1131(b)(2) authorizes an annual appropriation of Federal funds to reimburse the OASI Trust Fund. To the extent that resources needed to process this workload exceed the budget authority available for reimbursement in the current year, we make reimbursement to the OASI Trust Fund at the beginning of the subsequent year, including interest as appropriate. We began to incur pension reform administrative expenses in FY 1977.

Table 1.10—Pension Reform: Obligations

RATIONALE FOR BUDGET REQUEST

The FY 2022 budget requests $6,000,000 to reimburse the OASI Trust Fund for the cost of carrying out our responsibilities under the Pension Reform Act. The FY 2022 request is the same as the FY 2021 level. The table below summarizes the recent trend of pension coverage report receipts:

Table 1.11—Receipts from Pension Coverage Reports

UNNEGOTIATED CHECKS

Authorizing Legislation: Section 201(m) of the Social Security Act and Section 152 of

P.L. 98-21.

PURPOSE AND METHOD OF OPERATION

The purpose of this payment is to reimburse the OASI and DI Trust Funds for the value of interest on benefit checks cashed after 6 months or subsequently canceled.

Table 1.12—Unnegotiated Checks: Budget Authority

This activity was originally established to reimburse the trust funds for uncashed benefit checks and accrued interest. Beginning October 1, 1989, Social Security checks, like those issued by other Federal agencies, are negotiable for only 12 months from their date of issue under the provisions of the Competitive Equality Banking Act (CEBA) of 1987 (P.L. 100-86). In the 14th month after issue, the Department of the Treasury prepares a listing of checks outstanding from each agency, cancels those checks, and refunds the value of checks canceled to the authorizing agencies. Under this "Limited Payability" procedure, the value of unnegotiated checks issued on or after October 1, 1989, are credited directly to the trust funds from Treasury's general fund when the checks are canceled, pursuant to P.L. 100-86. These funds do not pass through the PTF account. However, the interest adjustment must be paid through this account because CEBA made no provision for it.

This appropriation funds the estimated ongoing level of activity and represents the value of interest for unnegotiated OASDI benefit checks.

Table 1.13—Unnegotiated Checks: Obligations

The actual interest reflects the ongoing shift of benefit payments from paper checks to direct deposit. On December 21, 2010, the Department of the Treasury published a final rule amending 31 Code of Federal Regulations Part 208 to require recipients of Federal benefits and nontax payments to receive their payments by electronic funds transfer. People who apply for Social Security benefits on or after May 1, 2011, receive their payments electronically. Many people who previously received Federal benefit checks before May 1, 2011 have switched to electronic payments. As a result, the final rule has decreased the volume of unnegotiated benefit checks, and we expect this trend to continue. Benefits paid via direct deposit bypass the mechanism in which there is the possibility of an uncashed check. However, the effect of the growth in direct deposit participation on unnegotiated check interest is somewhat offset by increases in the number of beneficiaries and in the average monthly benefit payments. The following table summarizes the recent trend in the percentage of OASDI beneficiaries enrolled in the direct deposit payment program.

Table 1.14—Direct Deposit Participation Rate

RATIONALE FOR BUDGET REQUEST

The FY 2022 request is for $5,000,000 to reimburse the OASDI trust funds for the value of interest on unnegotiated checks. The FY 2022 request is equal to the FY 2021 level.

Table 1.15—Unnegotiated Checks: Budget Authority by Trust Fund

COAL INDUSTRY RETIREE HEALTH BENEFITS

Authorizing Legislation: Sections 9704 and 9706 of the Internal Revenue Code of 1986 as amended by section 19141 of the Energy Policy Act of 1992.

PURPOSE AND METHOD OF OPERATION

The purpose of this payment is to reimburse the OASDI Trust Funds for work carried out under section 19141 of the Energy Policy Act of 1992 (Public Law 102-486), which established the CIRHBA of 1992.

Table 1.16—Coal Industry Retiree Health Benefits: Obligations

CIRHBA combined two existing United Mine Workers of America (UMWA) pension plans into a single fund and required that certain existing coalmine operators pay health benefit premiums for the new combined plan. The law directed the Commissioner of Social Security to:

PROGRESS TO DATE

We have completed initial decisions and reviews on all of the retired miners covered under the provisions of the 1992 CIRHBA. In addition, we implemented the Coal Act provisions of the Tax Relief and Health Care Act of 2006 (P.L. 109-432), which significantly affected and restructured CIRHBA. We devoted considerable time and resources to comply with P.L. 109-432. All court cases challenging SSA’s involvement in the Coal Act are now closed. We have also completed our obligation to provide yearly data on miner assignments to the UMWA Combined Benefit Fund. Our Office of the Chief Actuary continues to compute the beneficiary premiums on a yearly basis.

This account provides general fund reimbursement to the trust funds to the extent that the LAE account advances funds for SSA to carry out this work. We do not request additional funds for FY 2022 because the balance of the $10,000,000 per year appropriated in FY 1996 and in FY 1997 remains available until expended to reimburse the trust funds.

TABLES

APPROPRIATION LANGUAGE

SUPPLEMENTAL SECURITY INCOME PROGRAM

For carrying out titles XI and XVI of the Social Security Act, section 401 of Public Law 92-603, section 212 of Public Law 93-66, as amended, and section 405 of Public Law 95-216, including payment to the Social Security trust funds for administrative expenses incurred pursuant to section 201(g)(1) of the Social Security Act, [$40,158,768,000] $46,210,256,000 1 to remain available until expended: Provided, That any portion of the funds provided to a State in the current fiscal year and not obligated by the State during that year shall be returned to the Treasury: Provided further, That not more than $86,000,000 shall be available for research and demonstrations under sections 1110, 1115, and 1144 of the Social Security Act and remain available through September 30, [2023] 2024.

For making, after June 15 of the current fiscal year, benefit payments to individuals under title XVI of the Social Security Act, for unanticipated costs incurred for the current fiscal year, such sums as may be necessary.

For making benefit payments under title XVI of the Social Security Act for the first quarter of fiscal year [2022] 2023, [$19,600,000,000] $15,600,000,000, to remain available until expended. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2021.)

LANGUAGE ANALYSIS

The appropriation language provides us with the funds needed to carry out our responsibilities under the Supplemental Security Income (SSI) program. This includes the funds needed to pay Federal benefits, administer the program, and provide beneficiary services to recipients. The budget authority for these activities is made available until expended, providing us the authority to carryover unobligated balances for use in future fiscal years. Furthermore, a portion of this funding is made available for us to conduct research and demonstration projects, which is available for 3 years, providing us the authority to carryover unobligated balances into the next 2 fiscal years.

In addition, the language provides us with indefinite authority beginning June 15, in the event Federal benefit payment obligations in FY 2022 are higher than expected, and we do not have sufficient unobligated balances to cover the difference. Consistent with previous years, the appropriation also includes an advance appropriation for Federal benefit payments in the first quarter of FY 2023 to ensure the timely payment of benefits in case of a delay in the FY 2023 appropriations bill.

Table 2.1—Appropriation Language Analysis

GENERAL STATEMENT

The SSI program guarantees a minimum level of income to financially needy individuals who are aged, blind, or disabled. The program was created in 1972 by Title XVI of the Social Security Act and payments began January 1974. It is Federally-administered and funded from general revenues.

Prior to the establishment of the SSI program, the Social Security Act provided means-tested assistance through three separate programs—Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled. Federal law only established broad guidelines, with each state largely responsible for setting its own eligibility and payment standards. The SSI program was established to provide uniform standards across States.

Table 2.2—Summary of Appropriations and Obligations 1

(in thousands)

PROGRAM OVERVIEW

Eligibility Standards

As a means-tested program, individuals must have income and resources below specified levels to be eligible for benefits. Program rules allow some specific categories of income and resources to be either totally or partially excluded. 3 The process of evaluating eligibility and payment levels for the SSI program and addressing the accuracy of payments is inherently complex due to the program rules.

An individual’s benefit payment is reduced dollar for dollar by the amount of their “countable income”—income less all applicable exclusions—in a given month. Income in the SSI program includes “earned income” such as wages and net earnings from self-employment; and “unearned income” such as Social Security benefits, unemployment compensation, deemed income from a spouse or parent, and the value of in-kind support and maintenance such as food and shelter. Different exclusion rules apply for different types of income.

Benefit Payments

We estimate we will pay $62.7 billion in Federal benefits to approximately 8 million SSI recipients in FY 2022. Including state supplementary payments, we expect to pay a total of $65.4 billion and administer payments to over 8 million recipients.

Federal benefit payments represent approximately 93 percent of Federal SSI spending. Administrative expenses represent about 7 percent of spending; beneficiary services and research and demonstration projects make up the remaining less than half a percent.

Incentives for Work and Opportunities for Vocational Rehabilitation

The SSI program is designed to help recipients with disabilities achieve independence by encouraging and supporting their attempts to work. The program includes a number of work incentive provisions that enable recipients who are blind or disabled to work and retain benefits. The program also includes provisions to help disabled beneficiaries obtain vocational rehabilitation and employment support services. These provisions were revised by legislation establishing the Ticket to Work program, which is discussed in more detail in the Beneficiary Services section.

State Supplementation

Supplementation is mandatory for certain recipients who were on State rolls just prior to the creation of the Federal program on January 1, 1974. Otherwise, States are encouraged to supplement the Federal benefit and may elect to have us administer their State supplementation program. States that choose to have us administer their program reimburse us in advance and we make the payment on behalf of the State. Participating States also reimburse us for the cost of administering their program, based on a user fee schedule established by the Social Security Act. The user fee is $12.49 per SSI check payment in FY 2021 and is expected to increase to $12.85 in FY 2022. The Department of the Treasury receives the first $5.00 of each fee and we retain the amount over $5.00. Additional information regarding State supplementation can be found within the LAE section.

Coordination with Other Programs

We play an important role in helping States administer Medicaid and the Supplemental Nutrition Assistance Program (SNAP). Provisions in the SSI statute ensure that payments made by States or under the Social Security program are not duplicated by SSI benefits.

Generally, SSI recipients are categorically eligible for Medicaid. States may either use SSI eligibility criteria for determining Medicaid eligibility or use their own, provided the criteria are no more restrictive than the State’s January 1972 medical assistance standards.

SSI recipients may also qualify for SNAP. We work with SSI applicants and recipients in a variety of ways to help them file for SNAP, including informing them of their potential benefits, making applications available to them, and in some cases helping them complete their applications in our field offices. We also share applicant data with a number of States in support of SNAP.

Key Initiatives

We continue to pursue efforts to ensure the proper management and stewardship of the SSI program. This includes a focus on reducing the major factors affecting payment accuracy, processing CDRs and non-disability redeterminations, combatting fraud, improving our debt collection tools, and using our data matching systems to detect changes in circumstances that could affect SSI eligibility. Further information on these programs can be found in our Improper Payments exhibit and the Program Integrity exhibit of the LAE section. Additional detail is also included in our Annual Performance Report (APR) and Agency Financial Report (AFR) 1 .

Outreach to Vulnerable Populations

During the pandemic, we experienced a reduction in applications for benefits, particularly SSI and disability benefits, and we are concerned that there may be hundreds of thousands of vulnerable Americans who needed our help but were unable to reach us due to pandemic operating procedures. We have developed several initiatives to expand access to the program, including streamlining the SSI application, enlisting the assistance of third parties, promoting our programs through paid social media, television, and radio advertising, and sending out targeted mailers to groups most likely to be eligible for SSI. Further information on our efforts to reach vulnerable populations can be found in our SSI Outreach to Vulnerable Populations exhibit in the LAE section of this Congressional Justification.

FY 2022 PRESIDENT’S BUDGET REQUEST

The SSI appropriation includes funds for Federal benefit payments, administrative expenses, beneficiary services, and research and demonstration projects. In total, the FY 2022 President’s Budget request is $65,810,256,000. However, this includes $19,600,000,000 appropriated for the first quarter of FY 2022 in the FY 2021 appropriation. The appropriation language provides us with our remaining appropriation for FY 2022, $46,210,256,000—the total amount requested for FY 2022 less the advance already appropriated.

Similarly, in addition to the amount above, the request includes an advance appropriation of $15,600,000,000 for Federal benefit payments in the first quarter of FY 2023. This advance is to ensure recipients continue to receive their benefits at the beginning of the subsequent fiscal year in case there is a delay in passing that year’s appropriation.

Table 2.3—Appropriation Detail 1 , 2

(in thousands)

BUDGETARY RESOURCES

The SSI annual appropriation consists of a regular appropriation made available by the current year’s appropriation bill and an advance made available by the prior year’s appropriation. This advance is for Federal benefit payments in the first quarter of the subsequent fiscal year to ensure recipients continue to receive their benefits in case there is a delay in passing that year’s appropriation bill. The FY 2022 President’s Budget is $65,810,256,000, including $19,600,000,000 appropriated in the FY 2021 appropriation.

Table 2.4—Amounts Available for Obligation 1 , 2

(in thousands)

The SSI annual appropriation was $61.4 billion in FY 2020. The enacted FY 2021 appropriation is $60.1 billion. We have the authority to carry over unobligated balances for use in future fiscal years for Federal benefit payments, administrative expenses, and beneficiary services because the amounts appropriated are made available until expended. We carried over approximately $4.8 billion in Federal unobligated balances into FY 2021. We expect to carry over approximately $4.1 billion into FY 2022, and use about $2 billion in carryover funds.

In addition to these appropriated amounts, we have spending authority in the amount of the advance reimbursement we receive from States to pay their State supplementary benefits. Because States reimburse us in advance, we carry over the amount received for the October 1 payment, reimbursed at the end of September in the prior fiscal year, for use in the subsequent fiscal year.

ANALYSIS OF CHANGES

The FY 2022 request represents an increase of approximately $5.8 billion from the FY 2021 level. The majority of the increase in our funding request is mainly due to a thirteenth monthly SSI benefit payment in FY 2022.

We plan to use unobligated balances to partially fund Federal benefits, beneficiary services, research and demonstration projects, and administrative expenses in FY 2021 and FY 2022. We plan to use approximately $710 million in unobligated balances and recoveries in FY 2021 and approximately $2 billion in FY 2022.

Federal Benefit Payments

The FY 2022 request for Federal Benefit payments is $5.1 billion more than the FY 2021 level. We increased the FY 2022 request for Federal benefit payments mainly due to an extra federal benefit payment in FY 2022. The increase in Federal benefit payments is bolstered by the the January COLA and partially offset by an increase in carryover spending and the impact of Old-Age, Survivors, and Disability Insurance (OASDI) COLAs on concurrent SSI/OASDI recipients. Since OASDI benefits are counted as income in the SSI program, the annual OASDI COLA decreases the SSI benefit payment for concurrent recipients.

We estimate the first quarter advance for FY 2023 will be $4 billion less than that of FY 2022. Monthly SSI benefit payments are made on the first of the month, unless the first falls on a weekend or Federal holiday. In that case, the payment is made on the prior business day at the end of the previous month. When October 1 falls on a weekend or Federal holiday, the payment is made in the prior fiscal year at the end of September. This timing of payments results in 11, 12, or 13 payments in a given fiscal year, and three or four in a given quarter. The first quarter in FY 2023 will only have three benefit payments, instead of the usual four payments because October 1, 2022, falls on a Saturday.

Administrative Expenses

The FY 2022 request for administrative expenses is $534 million more than the FY 2021 level. We expect to use $110 million in carryover funds in FY 2021 and $53 million in carryover funds in FY 2022 to cover estimated obligations. By analyzing a number of factors including applications, award and termination rates, and funding for program integrity initiatives, we estimate the number of SSI recipients will increase in FY 2022 from the FY 2021 level. The increase in funding for FY 2022 will help us address these growths.

Beneficiary Services

We are requesting $205 million in new authority for FY 2022. This is $160 million more than our FY 2021 appropriation. Our estimate reflects the use of all carryover in FY 2021, a steady level of vocational rehabilitation reimbursement awards, and Ticket payments to Employment Networks under the Ticket to Work program. The FY 2022 request funds an estimated 40 percent increase in obligations above the FY 2021 level.

Research and Demonstrations

The FY 2022 request for research and demonstration projects is identical to the FY 2021 level. We expect to use $41 million in carryover funds in FY 2021 and $10 million in carryover funds in FY 2022 in addition to our requested appropriation to cover our estimated obligations.

Table 2.5—Summary of Changes 1 , 2

(in thousands)

Table 2.6—Explanation of SSI Budget Changes from FY 2021 to FY 2022

(in thousands)

NEW BUDGET AUTHORITY AND OBLIGATIONS BY ACTIVITY

The table below displays budget authority and obligations for the five main SSI activities – Federal benefit payments, administrative expenses, program integrity, beneficiary services, and research and demonstration.

Table 2.7—New Budget Authority and Obligations by Activity 1 , 2 (in thousands)

NEW BUDGET AUTHORITY AND OBLIGATIONS BY OBJECT

In the table below, “Other Services” includes administrative expenses, program integrity, and beneficiary services.

Table 2.8—New Budget Authority and Obligations by Object 1 , 2 (in thousands)

BACKGROUND

AUTHORIZING LEGISLATION

The SSI program is authorized by Title XVI of the Social Security Act. Section 1601 of the Act authorizes such sums as are sufficient to carry out the Title.

Table 2.9—Authorizing Legislation

APPROPRIATION HISTORY

The table below displays the President’s Budget request, amounts passed by the House and Senate, and the actual amount appropriated, for the period FY 2010 to FY 2021. Indefinite budget authority is requested when actual Federal benefit payments exceed the amounts available for Federal benefit payments in a given fiscal year.

Table 2.10—Appropriation History 1

FEDERAL BENEFIT PAYMENTS

Authorizing Legislation: Section 1602, 1611, and 1617 of the Social Security Act.

PURPOSE AND METHOD OF OPERATION

The SSI program was established to pay needy aged, blind and disabled individuals a minimum level of income through Federally-administered monthly cash payments. In many cases, these payments supplement income from other sources, including Social Security benefits and State programs. In FY 2022, we estimate benefit payments will total approximately $62.7 billion for approximately 8 million Federal SSI recipients.

Table 2.11—Federal Benefit Payments: New Budget Authority and Obligations 1 (in thousands)

RATIONALE FOR BUDGET REQUEST

We are requesting $61 billion in new budget authority for Federal benefit payments in FY 2022. We increased the FY 2022 request for Federal benefit payments mainly due to an additional benefit payment in FY 2022.

We estimate benefit payments based on a number of interrelated factors including the number of SSI recipients, number of applications, award and termination rates, cost-of-living adjustments, maximum benefit rates, average payment amounts, and number of payments per fiscal year.

SSI RECIPIENT POPULATION

The number of Federal SSI recipients has decreased from 8.1 million in FY 2017 to an estimated 7.8 million in FY 2021, but is expected to increase to 7.9 million in FY 2022. The estimated increase in Federal recipients in FY 2022 represents a 1.3 percent increase over the FY 2021 level. We estimate the number of SSI recipients by analyzing a number of factors including applications, award and termination rates, and funding for program integrity initiatives.

Table 2.12—SSI Recipients, Actual 1 (average over fiscal year, in thousands)

In addition to Federal SSI recipients, we currently administer State supplementary payments for 20 States and the District of Columbia. We administer payments for approximately 1.4 million State supplement recipients, of which approximately 150,000 do not receive a Federal SSI benefit and only receive the State supplementary payment.

Table 2.13—SSI Recipients, Projected 1 (average over fiscal year, in thousands)

The number of Federal blind or disabled SSI recipients as a percentage of all Federal SSI recipients gradually decreased from 86.2 percent in FY 2017 to 86.0 percent in FY 2020 and is projected to increase slightly to 86.1 percent in FY 2021 and remain stable in FY 2022.

Table 2.14—Blind or Disabled Recipients as a Percentage of Total 1 (average over fiscal year, in thousands)

Concurrent SSI/OASDI Recipients

SSI recipients also receiving Old-Age and Survivors Insurance (OASI) or DI benefits have their SSI benefit reduced, less applicable exclusions, by the amount of their OASDI benefit. Approximately 33 percent of all SSI recipients (including those only receiving a State supplement) also receive Social Security benefits. Approximately 57 percent of the SSI aged and 30 percent of the SSI blind and disabled populations receive concurrent payments.

BENEFIT PAYMENTS

Maximum Monthly Federal Payments

The maximum monthly Federal benefit rate (FBR) is increased each January when there are increases in the cost-of-living. There is a 1.3 percent cost of living increase in calendar year (CY) 2021. An increase of 2.3 percent is projected for January 2022. The FBR increased from $783 for an individual and $1,175 for a couple for CY 2020 to $794 for an individual and $1,191 for a couple in CY 2021. We estimate the FBR will increase to $812 for an individual and $1,218 for a couple in CY 2022. The COLA will be effective in January 2022, raising the maximum benefit rate to higher levels than the first 3 months of the fiscal year.

Table 2.15—Maximum Benefit Rates

Average Monthly Benefit Payments

The amount actually paid to a recipient can vary from the FBR based on their income received (e.g., earnings and Social Security benefits) and the living arrangement of the recipient (e.g., residence in one’s own home, the household of another person, or in a nursing home which meets Medicaid standards). The average monthly benefit is expected to increase from $586 in FY 2020 to $593 in FY 2021 and $609 in FY 2022. The increase in the average benefit payment is driven by COLAs and recipient population characteristics.

Table 2.16—Average Monthly Benefit Payments

Cost of Living Adjustments

When applicable, COLAs increase both the maximum and average monthly benefit payment. However, for concurrent SSI/OASDI recipients, increases in SSI benefit payments are partially offset by increases in Social Security benefits resulting from the same COLA. Social Security benefits are counted as income in the SSI program. Therefore, any increase in Social Security benefits resulting from the annual COLA increases countable income in the SSI benefit computation.

Program Integrity Funding

Annual benefit payment estimates are dependent on us performing a certain level of SSI CDRs and redeterminations. Specifically, the FY 2022 estimate assumes we will conduct approximately 307,000 SSI CDRs and 2,900,000 non-medical redeterminations.

Timing of Monthly Benefit Payments

Monthly SSI benefit payments are made on the first of the month, unless the first falls on a weekend or Federal holiday. In that case, the payment is made on the prior business day at the end of the previous month. When October 1 falls on a weekend or Federal holiday, the payment is made in the prior fiscal year at the end of September. This timing of payments results in 11, 12, or 13 payments in a given fiscal year.

Table 2.17—Check Payments by Fiscal Year

ADMINISTRATIVE EXPENSES

Authorizing Legislation: Sections 201(g)(1) of the Social Security Act.

PURPOSE AND METHOD OF OPERATION

Administrative expenses for the SSI program are funded from general revenues. Section 201(g)(1) of the Social Security Act provides that administrative expenses for the SSI program, including Federal administration of State supplementary payments, may be financed from the Social Security trust funds with reimbursement, including any interest lost, to the trust funds from general revenues.

This appropriation funds the SSI program share of administrative expenses incurred through the LAE account. Amounts appropriated are available for current-year SSI administrative expenses, as well as for prior-year administrative expenses that exceeded the amount available through this account for the prior year. If those excess prior year amounts were paid out of the Social Security trust funds, then current year SSI funds must be used to reimburse these trust funds with interest.

The legislative history of the 1972 amendments (which established this funding mechanism) indicates a desire to obtain economy of administration by giving us 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 Social Security programs, it was desirable to fund them from a single source (the LAE account). This process requires that the trust funds and the SSI account pay their appropriate shares to the LAE account, which in turn manages the administrative expenses on behalf of the paying accounts. The determination is based on a Government Accountability Office approved method of cost analysis of the respective expenses of the SSI and Social Security insurance programs, and statute mandates a final settlement by the end of the subsequent fiscal year.

Table 2.18—Administrative Expenses: New Budget Authority and Obligations (in thousands)

RATIONALE FOR BUDGET REQUEST

SSI’s administrative budget is driven by the programs we administer–both in terms of the amount of work performed and the number of people needed to process it–and by our continuing efforts to improve service, stewardship, and efficiency.

The FY 2022 request for SSI administrative expenses is $4.8 billion. This appropriation is used to reimburse the trust funds for the SSI program’s share of administrative expenses. This amount includes $1.2 billion specifically for FY 2022 SSI program integrity activities.

These amounts exclude funding made available in the LAE account from State user fees for our expenses for administering SSI state supplementary payments. The LAE account assumes funding of up to $138 million in FY 2022 to administer SSI state supplementary payments.

BENEFICIARY SERVICES

Authorizing Legislation: Sections 1148 and 1615(d) of the Social Security Act

PURPOSE AND METHOD OF OPERATION

Beneficiary services consist of the Vocational Rehabilitation (VR) and Ticket to Work (TTW) programs. The objective of the programs is to help disabled individuals return to work. The trust funds and general revenues fund beneficiary services. The Office of Management and Budget (OMB) directly apportions the trust funds’ portions of beneficiary services and they are not part of this appropriation request. The general revenues fund beneficiary services for disabled Supplemental Security Income (SSI) recipients as described below.

Table 2.19—Beneficiary Services: New Budget Authority and Obligations (in thousands)

Under the VR program, we repay State VR agencies for the reasonable and necessary costs of services that successfully help disabled recipients return to work. VR agencies are successful when a disabled recipient performs substantial gainful activity (SGA) for a continuous period of 9 out of 12 months. 2 VR agencies can serve as Employment Networks (ENs) in the TTW program or under our VR reimbursement program.

Under the TTW program, authorized by the Ticket to Work and Work Incentives Improvement Act of 1999 (P.L. 106-170), we pay ENs for providing vocational rehabilitation, employment, and other support services to disabled SSI recipients. These recipients select an EN, which we

pay when EN services result in prescribed work milestones and outcomes that may reduce reliance on Federal cash benefits.

Ticket payments, unlike VR reimbursement awards, are not based on the costs of specific services provided by the EN. We pay ENs using either an outcome-milestone payment method or an outcome-only payment method.

We base Ticket payment amounts for SSI recipients on the prior year’s average disability benefit payable under Title XVI. While we previously made Ticket payments only upon request, we now also initiate payments to ENs when information in our records indicates the recipient has achieved the prerequisite earnings and all other requirements qualifying the EN for a payment are met.

RATIONALE FOR BUDGET REQUEST

We are requesting $205 million in new budget authority for beneficiary services in FY 2022. The FY 2022 forecast is based on an econometric model which uses prior payments as well as historical economic and demographic characteristics to predict future spending. Due to the uncertainty surrounding the effects of COVID-19 on the economy, we used values in the model that more closely aligned with our expectations for the payments based on FY 2020 receipts. The FY 2022 request funds an estimated 40 percent increase in obligations above the FY 2021 level. This increase in the FY 2022 budget authority for beneficiary services also accounts for an upcoming contract to process VR payments, as well as having minimal carryover into FY 2022.

Automation of payments through Ticket to Work resulted in an initial increase in the amount paid to ENs and VRs. While we saw an initial increase in the amount of Ticket to Work payments, this amount has stabilized in recent years, and we anticipate this amount to remain the same in FY 2021 and FY 2022.

In FY 2017, we implemented the Internet Ticket Operations Provider Support System (iTOPSS) that improves automation for the VR program. As a result of this new system, we witnessed an increase in the number of claims submitted by VRs, which led to an increase of backlogged claims awaiting payment processing. To address this backlog, we now require VRs to submit proof of earnings with reimbursement claims. We also follow up to obtain supplemental information from VRs after 30 days instead of 75 days. We expect to continue to carry a backlog until we can secure additional contractor resources to process the VR payment workload. The upcoming Ticket Program Manager (TPM) contract includes a new task to process VR payments. Once SSA awards the new TPM contract, and after a three-month transition period, we expect the contractor to staff the workload in order to process payments within 30 days of receipt. The contractor resources will result in an increase in the amount paid to VRs in FY 2022. Considering all the factors above, and assuming that more beneficiaries will return to work, we estimate an increase in cost reimbursement awards and the same number of milestone and outcome payments in FY 2022.

We continue our efforts to improve management and oversight of the VR and Ticket programs to ensure effectiveness. These efforts are solidified in the current EN agreements and include ongoing quality reviews of State reimbursement claims and internal audits of the agency's

payment process. ENs and VRs help our beneficiaries attain higher levels of sustained employment success.

Table 2.20—SSI VR Reimbursement and Ticket to Work Payments 1

ADDITIONAL INFORMATION ON VR COST REIMBURSEMENT AND TICKET TO WORK PROGRAMS

The State VR agency may decide on a case-by-case basis whether to receive compensation under the long standing VR cost reimbursement payment option or one of the two TTW payment methods described below. VR agencies have 90 days after they open a case (ticket assignment) to decide if they want to be reimbursed for their expenses under the Cost Reimbursement program or if they want to be paid under the Ticket program. Most agencies select cost reimbursement as the initial payment option and then switch to Ticket after further evaluation of a case. Regardless of the payment method the State VR agency chooses, the recipient must have agreed to use the Ticket with the State VR agency for the agency to be eligible for either type of payment.

Outcome-Milestone Payment Method:

Outcome-Payment Method:

When a State VR agency provides services to a recipient under the cost reimbursement payment option, and the recipient later seeks support services from an EN, we may pay the State VR agency and the EN for sequential periods of service. However, the EN is not eligible for Phase I Ticket payments, since the State VR agency would have provided initial services.

RESEARCH, DEMONSTRATION PROJECTS, AND OUTREACH

Authorizing Legislation: Sections 1110, 1115, and 1144 of the Social Security Act.

PURPOSE AND METHOD OF OPERATION

We conduct extramural research, demonstrations, and outreach under Sections 1110, 1115, 1144, and 234 of the Social Security Act (Act). Projects funded under Section 234 are essential to our demonstration portfolio, but as they are part of the mandatory budget, we are not including them in our appropriations request.

Table 2.21 - Research, Outreach, and Demonstration Projects:

Budget Authority and Obligations

(in thousands)

Section 1110 of the Act provides the Commissioner of Social Security the authority to conduct broad-based, cross-programmatic projects for the Old-Age, Survivors, and Disability (OASDI) and Supplemental Security Income (SSI) programs. This section provides for waiver authorities for the SSI program, as well as projects dealing with specific SSI issues. Under Section 1110, we fund a range of extramural projects: disability and retirement policy research, demonstration projects to test creative and effective ways to promote greater labor force participation among people with disabilities (including early intervention rehabilitation strategies), evaluations of proposed or newly enacted legislative changes, and projects to maintain and improve basic data about our programs and beneficiaries.

Section 1115 provides the Secretary of Health and Human Services (HHS) with the funding and authority to waive compliance with Medicaid requirements to enable States to participate in our specific research and disability demonstration projects. There are currently no research projects funded under this section.

Section 1144 requires us to conduct outreach to individuals with Medicare who are potentially eligible for State-administered Medicaid programs or Medicare prescription drug subsidies under

Medicare Part D. We identify these potential beneficiaries, inform them about these programs, and notify State Medicaid agencies. The Centers for Medicare & Medicaid Services, within HHS, oversees both the Medicare and Medicaid programs.

Section 234 gives the Commissioner of Social Security the authority to conduct research and demonstration projects testing alternative Disability Insurance (DI) benefit rules. We use trust fund monies, which are permanently appropriated and not part of our request, to conduct various demonstration projects, including projects that examine alternative program rules for treating work activity of individuals entitled to DI benefits. Section 234 covers both applicants and current beneficiaries of the program. We currently have authority to commence new projects under Section 234, as amended by the Bipartisan Budget Act of 2015 (BBA). Our current authority is limited to voluntary participation of applicants and beneficiaries that requires informed written consent and requires us to complete all projects by December 31, 2022.

RATIONALE FOR BUDGET REQUEST

We are committed to improving the equity, quality, consistency, and timeliness of our disability decisions; maximizing efficiencies throughout the disability program; enhancing employment support programs to create new opportunities for returning beneficiaries to the workforce; and providing the public with accurate, clear, and up-to-date information. Our research activities are critical to our efforts in all three areas.

In FY 2022, we estimate that we will need $86 million in new budget authority for traditional research activities under Sections 1110 and 1144.

Our FY 2022 budget request builds upon the progress we have made with specific initiatives and also reflects a significant commitment to data development, modeling efforts, and retirement and financial literacy policy research that informs decision-makers of changes to improve the solvency of the Old-Age and Survivors Insurance (OASI) and DI Trust Funds.

Extension of 234 Authority

In addition to the Section 1110 and 1144 projects, we are interested in working with Congress to extend Section 234 authority in order to provide sufficient time to conduct ongoing and new demonstrations.

The table and discussion that follows provides more details on the research and outreach efforts we plan to fund in FY 2022.

Table 2.22—Major Research Areas, Outreach, and Demonstration Obligations and New Budget Authority (in thousands) 1 , 2

Improving the Way We Do Business

Promoting Work through Early Interventions Project (PWEIP)

The PWEIP is a joint undertaking between SSA and the Administration for Children and Families (ACF) within HHS. The project will identify, select, and evaluate programs likely to improve the employment and economic outcomes of individuals who have not yet applied for SSI and have little or no work history, current or foreseeable disabilities, and ties to U.S. safety net programs. Evaluations of programs will include impact assessments and implementation research. A select number of evaluations will also include a cost analysis.

In FY 2019, we developed and entered into a jointly financed cooperative arrangement with ACF and transferred $25 million to support the evaluation and/or service provisions of selected intervention programs. In FY 2020, we worked with ACF to engage in site assessment and selection activities for programs to participate in an evaluation under ACF’s Building Evidence on Employment Strategies (BEES) and Next Generation of Enhanced Employment Strategies (NextGen) projects.

We approved seven programs that will participate in BEES or NextGen and will be supported with SSA's transferred funds. The onset of the COVID-19 pandemic in FY 2020 and its continuation into FY 2021 has led to delays in, or suspension of, some study activities, as selected programs needed to alter their operations in response to the pandemic. Depending on the trajectory of the pandemic and continued implications for selected programs, by the end of FY 2021 we anticipate completing program selection, preparing evaluation design and analysis plans for a majority of the selected programs, and launching study enrollment at a majority of the selected programs. During FY 2022, we expect all selected programs will have launched study enrollment and will be actively engaged in study activities. These activities will continue beyond FY 2022, given study enrollment periods vary by program and given the potential for continued study delays due to COVID-19.

Retaining Employment and Talent After Injury/Illness Network (RETAIN) Demonstration

The RETAIN demonstration is a joint demonstration between the Department of Labor (DOL) and SSA. The demonstration is developing, implementing, evaluating, and scaling effective stay-at-work and return-to-work early intervention strategies to support injured or ill workers in employment, including workers with COVID-19-related illnesses. The ultimate policy goal is to reduce long-term disability, including the need for DI or SSI benefits, and increase labor force participation among those individuals.

Eight States (California, Connecticut, Kansas, Kentucky, Minnesota, Ohio, Vermont, and Washington) were initially awarded up to $2.5 million dollars for 24-month pilot grants. These States used their funds in a variety of ways to improve the early coordination of health care and employment-related supports and services, train health care providers in occupational best practices, and facilitate communication and return-to-work efforts between workers, their employers, and their health care providers.

In FY 2019, we awarded a competitive contract to evaluate the RETAIN State awards and began working with State awardees to finalize project designs and prepare for the implementation of an initial pilot. Due to the COVID-19 pandemic, DOL issued a series of extensions to the Phase 1 and Phase 2 project timelines. In FY 2020, the evaluation contractor provided technical assistance and continued to assess the evaluability of the Phase 1 projects. Under the new timeline, the evaluation contractor produced an evaluability assessment report to aid DOL and SSA in selecting a subset of the Phase 1 States for full-implementation in Phase 2. In FY 2021, five of the Phase 1 States were competitively awarded grants under Phase 2 of the demonstration, in order to expand Phase 1 projects by improving the coordination of health care and employment-related supports and services to new geographic areas and larger populations within these States. In FY 2022, grantees will begin recruiting participants into the full program, and the evaluation contractor will begin administering surveys to both enrollees and service providers. Grantees will enroll participants into the RETAIN demonstration until summer of FY 2024 and provide services through summer of FY 2025. DOL will maintain a technical assistance contract to support RETAIN grantees and SSA will maintain a contract for conducting a rigorous evaluation of the projects. The evaluation contractor will produce an interim impact report in FY 2025 and final evaluation impact reports in FY 2026.

Promoting Readiness of Minors in SSI (PROMISE)

PROMISE is a joint pilot demonstration project with the Department of Education (ED), HHS, and DOL. The goal is to test interventions that improve the health, education, and post-school outcomes of children who receive SSI, including the completion of postsecondary education and employment. We also hope to improve family or household outcomes through improved services and supports, such as education and job training for parents.

In FY 2013, we awarded a contract to evaluate the PROMISE model demonstration projects. We released an interim service and impact report in FY 2019 and expect to produce a final evaluation report in FY 2022.

Ticket to Work (TTW) Notice Optimization

In the TTW Notice Optimization project, we are testing modified versions of the notices we send to beneficiaries and testing changes to the notice schedule to determine if the changes reduce the barriers to assigning a Ticket. The new notices provide simpler, plain language information about the Ticket program and the potential benefits of and process of assigning a Ticket. The new notices will be mailed over a period of 18-months and outcomes will be measured at 9-months post-mailing for each individual.

In FY 2019, we analyzed administrative data to identify response patterns to past mailings and characteristics associated with TTW participation and work. We also worked with the General Services Administration’s (GSA) Office of Evaluation Sciences to develop prototype notices.

In FY 2020, we continued to work with GSA to finalize the notice prototypes to send beneficiaries (upon award, one year after award, and two years after award) and developed the evaluation design. We wrote the notices, otherwise known as the “Good News” notices that

individuals receive when awarded disability, to comply with plain language guidelines and potentially improve participation in the Ticket program. We also registered the study with the American Economic Association randomized study trial registry. We worked with SSA’s Office of Systems to modify the system needed to randomize notice mailings and began mailing out notices in September 2020.

In FY 2021, we continue testing prototype notices and conducting data analyses. We extended the mailings from 9 months to 18 months. As such, we will continue to send the revised notice to a random sample of beneficiaries at different intervals (after award, and the first and second year award anniversaries). Along with GSA, we will conduct the final analyses of the new mailings in FY 2022.

Supported Employment Demonstration (SED)

While many demonstrations for existing DI beneficiaries have shown positive results (e.g., increased earnings), they have not identified interventions that would return beneficiaries to substantial and sustained employment. Research indicates that health problems materialize in advance of complete disability onset and that earnings begin to decline well before DI benefits are awarded. The SED evaluates whether offering evidence-based packages of vocational, medical, and mental health services to recently denied DI and SSI applicants (ages 18 to 50 with a mental impairment) can reduce the demand for DI benefits. The SED provides participants with long-term employment services and intensive behavioral health and related services beyond what is available through their existing health plans.

We awarded a contract to implement and evaluate the SED in August 2016. The contractor completed enrollment in FY 2019. In FY 2020, all sites continued to deliver interventions and the contractor continued to conduct regular monitoring and fidelity site visits that include ethnographic observations and interviews with key informants and participants. In FY 2021, the study moved to virtual activities and data collection processes, due to COVID-19 restrictions, as full interventions continued. In FYs 2020 and 2021, participants began transitioning out of the study after 3 years of services; transitions continue until March 2022 when interventions end. The timeline for the study was extended by four months (from August to December 2022) to accommodate COVID-19-associated delays and earlier start-up delays. A special topics report, presenting and analyzing effects of innovative enrollment and study retention strategies developed for the study, will be delivered in the third quarter of FY 2021. We will receive the final evaluation reports (impact and cost-benefit analyses) and data files for the SED in the first quarter of FY 2023. The study ends December 31, 2022.

Advisory Services to Assist SSA with Disability Projectss/National Academies of Science (NAS)Multi-Year Contract with NAS

In FY 2018, we awarded and are currently engaged in a five-year contract with the NAS Health and Medicine Division to conduct research and answer specific questions related to medical and vocational assessment at steps three, four, and five of the sequential evaluation process. Information for NAS assures our disability evaluations reflect the latest changes in knowledge and practice in a wide range of medical disciplines and provides support for making data-driven

changes to our regulations and policies. The current contract also provides for Federal Advisory Committee Act (FACA) compliant Consensus Committees of medical and other experts to evaluate the effectiveness of our disability programs for adults and children.

NAS established a new standing committee of medical, vocational, and other experts to assist with policy issues. Per our requirements, NAS will also establish and manage FACA compliant consensus study committees; organize and lead workshops with subject matter experts; and plan and organize outreach conferences with members of the public.

In FY 2020, we awarded the following task orders to:

In FY 2021, we are considering the following task orders to:

In FY 2022, we are considering the following task orders to:

Disability Analysis File (DAF)

Our data are drawn from distinct administrative systems that underlie and support our programs. These data are generally available to researchers only as raw, unformatted, and undocumented extracts. Administrative data are critical for our understanding of beneficiaries with disabilities. They provide detailed data on the entire population and allow for the analysis of small subpopulations that cannot generally be studied with survey data, which is based on population samples. The DAF takes data from our ten most relevant administrative files and creates an annual formatted database that is ready for analysis, easy to use, and includes thorough documentation. The DAF focuses on data needed to answer questions about disability and work. The DAF is also designed to be complementary to the National Beneficiary Survey (NBS), which provides data on disability and work that is not available from our administrative sources. When combined, the DAF and NBS provide a complete picture of demographics, benefits, work, and work attitudes for all SSI and DI beneficiaries with disabilities.

We use the DAF for internal research and to support demonstration development and evaluation. For example, we use the DAF to examine the costs and benefits of the TTW program, the effectiveness of TTW mailings, and the characteristics associated with successful return to work

by beneficiaries. In particular, we developed two research papers on the impact of the TTW program. The first paper uses a completion of a trial work period to adjust for serious work effort to estimate the impact of TTW services. The second paper uses the discontinuation of TTW information to new beneficiaries in 2012 to estimate the TTW service effect. We expect to publish both papers in FY 2021.

We also use the DAF to model and forecast Employment Network and Vocational Rehabilitation payments under the TTW program. Further, we use the DAF to support oversight by the Social Security Advisory Board (SSAB), our Office of the Inspector General (OIG), OMB, Congress, the Government Accountability Office, and others. Additionally, we allow non-SSA researchers to use the DAF, primarily through the Retirement and Disability Research Consortium (RDRC). Since 2015, 49 research papers have used DAF data in their analyses with 11 new papers in 2020. We also created a public-use version of the DAF, which is available at www.data.gov . There has been significant interest in using the public use DAF file, with average downloads of 80 per month in 2020. In FY 2022, we will continue to build both the full DAF file and the public use version of the DAF.

Analyzing Relationships between Disability, Rehabilitation, and Work (ARDRAW)

The ARDRAW small grant program provides one-year stipends to graduate-level students to conduct research on beneficiaries’ experience with work, disability, rehabilitation, and employment support. We awarded the grant management agreement for ARDRAW in August 2016. ARDRAW is renewable on a yearly basis for up to five years. The program provides an opportunity to support scholars pursuing careers in public policy research, who have a special interest in our beneficiaries’ quality of life and DI program issues.

In FY 2020, we received applications for the fourth ARDAW cohort and received the final projects from the third ARDRAW cohort. In FY 2021, we will receive final projects from the fourth ARDRAW cohort and request applications for the fifth and final cohort of ARDRAW student researchers. For FY 2022, we had planned to award a new grant agreement to continue the ARDRAW program, but have decided to extend the project for an additional year.

For more information, please see the ARDRAW website: https://ardraw.policyresearchinc.org .

Blanket Purchase Order Agreement for Time Sensitive Research Projects

In FY 2018, we awarded a Blanket Purchase Agreement (BPA) aimed at providing an alternate research channel for policy and program assessments and studies related to social science, medical, or vocational rehabilitation topics. This BPA supports projects that are smaller in scope and less resource intensive than some of our more traditional contracts and allows for multiple research projects to occur simultaneously in relatively short timeframes. We can expect deliverables in the range of 4 to 6 months, which is considerably quicker than the 18-plus months expected from traditional contracts. We build an interactive process with the contractors as the projects proceed, which provides us with the ability to course-correct as the work progresses. The BPA also provides the option to contract with a trusted agent to develop and assess research questions, provide subject matter expertise, and evaluate research products to support policy

decisions. The use of a trusted agent is optional and will be considered on a case-by-case basis, dependent upon the nature or sensitivity of the research topics.

We awarded five studies in FY 2020. Topic areas included:

We are once again conducting a needs assessment to determine the focus areas for studies that will use FY 2021 funding. We anticipate comparable project topics for FY 2021 and FY 2022 to support our research and regulatory and subregulatory policy efforts.

National Beneficiary Survey (NBS)

The NBS collects data from a nationally representative sample of DI beneficiaries and SSI recipients on a wide range of topics not available in our administrative data or in other public databases. These data include health and functional status, health insurance coverage, interest in work, barriers to work, use of services, work history, income, and experience with Social Security programs. The collection of these data improves our ability to conduct useful analyses regarding the factors that facilitate DI beneficiary and SSI recipient employment and, conversely, factors that impede their efforts to maintain employment.

Our researchers and analysts, along with researchers at other Federal agencies and academic institutions, use NBS data extensively to evaluate the TTW program and other DI and SSI work incentive programs and policies. In addition, we are able to provide timely information to Congress and other stakeholders for purposes of policymaking, budgetary review, program evaluation, service improvement, and oversight. The NBS is used to support both internal and external analyses of our disability programs. Since 2015, 58 research papers used the NBS data in their analyses.

The NBS gathers information through three samples. One is a nationally representative sample of DI beneficiaries and SSI recipients—called the Representative Beneficiary Sample (RBS) — which collects information on their health and well-being, employment-related goals and activities, and usage of programs and services. Through an additional sample of beneficiaries who have succeeded in earning amounts sufficient to have benefits suspended due to work—called the Successful Workers Sample (SWS)—the 2017 NBS included, for the first time, a large-scale focus on beneficiaries who have experienced employment success. The 2019 NBS was comprised of both the RBS and SWS components and also included a longitudinal sample of successful workers who were part of the 2017 SWS.

In FY 2020, we completed administration of the 2019 NBS, conducted quality reviews of the 2019 data, and developed a public use file available conveying the results of the 2017 NBS, thereby facilitating additional research on the beneficiary population. In FY 2021, we will develop a user’s guide, codebook, and data files conveying information and results from the 2019 round of the NBS. Upon completion of these activities, we will post the 2019 NBS public use file and associated documentation on our website. In FY 2022, we will produce final statistical weights for the 2019 NBS SWS and begin development of final data files and documentation covering all rounds of the NBS in preparation for contract closeout.

Reports and public use files containing data from prior rounds of the NBS are available on www.data.gov and our website at: http://www.ssa.gov/disabilityresearch/nbs.html .

Disability Research Surveys

We are developing a new set of surveys, namely the Disability Research Surveys (DRS), that will broaden the scope of information we collect about beneficiaries. This new set of surveys will include three separate surveys: one NBS and two new surveys. The NBS provides information of representative cross-sectional samples of all adult DI beneficiaries and SSI recipients with disabilities and beneficiaires who leave the programs due to successful work. One of the two new surveys will collect information on the characteristics, recent employment experiences, service receipt, and experiences during the application and post-application process of new cohorts of awarded and denied applicants. The subject of the third survey will be determined at a future date. We will request funding for these three surveys separately. In late FY 2021, we plan to award the contract for the NBS survey.

The NBS is the first survey under the new contract and will be fielded in FY 2023. The second survey will be a survey of recent applicants, to be funded in FY 2023 and fielded in FY 2025. We will determine the final survey in the future based on topics of greatest interest at that time. Possible topics include, but are not limited to, the homeless or other vulnerable populations or youth transition to work. We anticipate funding the final survey in FY 2024 and fielding in

FY 2026.

Disability Perceptions Survey (DPS)

In FY 2020, we awarded a contract for the DPS. This survey will gather information on knowledge, perceptions, and opinions working-age adults have about the DI program.

New and Emerging Research – Disability

This category includes projects that provide broad program analysis and development in support of the DI and SSI programs. These projects typically include studies of program policy issues, the identification of trends in the disability programs, the formulation of agency policy regarding cross-cutting programs or issues related to disability and/or income assistance programs including those of racial equity outlined in Executive Order 13958, and the development and implementation of policy and procedures on DI and SSI work incentives.

Projects that originate in this category may not be included in previous budget planning activities. The New and Emerging Research – Disability line item allows us to allocate funding to cover the costs of (a) small initiatives or (b) initial project development for larger initiatives. If SSA assesses that a project will translate into a larger, multi-year initiative, the project will receive its own line item in future budget planning activities. Factors that determine this transistion include project scope, duration, and cost.

SSA-NIH Research on Data Analytics and the Work Disability-Functional Assessment Battery (WD-FAB)

Under an Interagency Agreement (IAA), the National Institutes of Health (NIH) Clinical Center provides in-depth analysis of our existing data and continues to provide us support related to testing the WD-FAB in our continuing disability review (CDR) process. The WD-FAB may provide uniform information about individuals’ self-reported functional ability that we can use to inform our disability data collection and determination processes.

In FY 2020, NIH started an analysis of baseline WD-FAB scores collected during the SED project, along with other SSA data such as residual functional capacity (RFC) assessments, to evaluate how WD-FAB scores and functional status more broadly changes over time. We expect this analysis to be completed in FY 2021. NIH also developed natural language processing methods to characterize and extract functional language information from medical evidence. As a part of this research effort, NIH provided additions to the initial version of the functional terminology ontology, provided at the end of FY 2019, that contained information associated with the Mobility domain of the International Classification of Functioning, Disability and Health (ICF) framework. NIH also expanded their functional terminology ontology to include information from the ICF’s Self-care/Domestic life domain and developed an initial draft of information for the mental functioning domains of the ICF (e.g., Interpersonal Interactions and Relationships).

In FY 2021, NIH will continue their WD-FAB related work by providing an analysis of functions over time by evaluating WD-FAB data collected during the SED project along with other SSA administrative data to analyze how WD-FAB scores change over time. The findings from this analysis may have implications on future studies of the WD-FAB with SSA populations, such as the testing of the WD-FAB within our CDR process. NIH will also continue to expand upon their work to develop natural language processing methods to assist us in identifying functional terminology within the unstructured text of medical evidence, as well as provide us with an expanded and revised version of a functional terminology ontology originally delivered at the end of FY 2019. This research will require NIH to evaluate the Mobility domain methods already provided to SSA in FY 2020 using SSA’s RFC data for comparison and demonstrate how their Interpersonal Interactions and Relationships classification models relate to our criteria for the medical listings around interacting with others.

In FY 2022, NIH will conduct the initial analysis of the WD-FAB data collected in FY 2021 and FY 2022. After the WD-FAB data collection is complete, NIH will provide us with an analysis report comparing WD-FAB data to our CDR predictive model scores, responses to CDR Mailer (Form SSA-455) questions, and CDR full medical review outcomes for participating SSA beneficiaries. Once received, we will use the report’s evidence and findings to evaluate the

value and feasibility of incorporating the WD-FAB into our CDR business process. NIH will also continue to expand upon their work to develop natural language processing methods to assist us in identifying functional terminology within the unstructured text of medical evidence as well as provide us with an expanded version of the functional terminology ontology developed to inform our disability determination process.

Work Disability - Functional Assessment Battery (WD-FAB) Data Collection

In FY 2020, we awarded a contract to support WD-FAB administration and data collection efforts associated with the study testing the WD-FAB within our CDR process (mentioned in the previous section). This data collection will provide data to examine the potential uses and value of the WD-FAB in our CDR process. We will administer the WD-FAB to a sample of our beneficiaries on two occasions during FY 2021 and FY 2022. NIH will use this data in work identified in the prior section.

Occupational Information System (OIS) and Vocational Information Tool (VIT)

In 1991, DOL stopped updating the DOT and replaced it with the Occupational Information Network (O*NET), a system that was developed as a career exploration tool, but does not measure strength and physical requirements of work in a way that our disability rules require. We are developing a new OIS that could replace the DOL’s Dictionary of Occupational Titles (DOT) as the primary source of occupational information in our disability adjudication process.

We began collaborating with DOL’s Bureau of Labor Statistics (BLS) in FY 2012 to develop the Occupational Requirements Survey (ORS) to collect updated information on the requirements of work in the national economy. We will use the ORS data, along with specified information from other occupational sources, to create the new OIS. The OIS will classify occupations using the Standard Occupational Classification System (SOC) and include ORS data elements to measure the physical, mental/cognitive, and environmental requirements of work in the national economy, as well as the education and training needed to gain average proficiency in a job. The OIS will be housed, accessed, and operationalized through the VIT, a web-based information technology platform.

In FY 2020, BLS collected data for the second year of the five-year update. During the first year of the update, SSA and BLS determined that the updated sample design was collecting data across a broader range of occupations as intended. SSA and BLS held quarterly executive meetings to discuss data collection, project planning, and potential BLS research, including small domain estimation and disclosure limitation methods, and collaborated to produce a project development plan that ensures the ORS meets the needs of SSA. At the end of FY 2020, BLS began data collection for the third year of the five-year update. SSA activities related to VIT development included developing functionality that will facilitate matching claimant functional limitations to ORS requirements.

In FY 2021, as part of the five-year update, BLS will complete the third year of data collection, publish data from the second year of collection, and begin the fourth year of data collection. BLS and SSA executives will continue quarterly meetings and will reach agreement on the proposed changes for measurement objectives for the second five-year update that begins in

FY 2024. BLS will produce a detailed project plan that specifies development activities and timelines for research and testing of the agreed upon changes. SSA will also analyze ORS first and second wave microdata to determine the number of workers in the national economy who fulfill combinations of RFC and Specific Vocational Preparation (SVP) 1 elements and the most prevalent occupations of those workers. VIT development will include upgrading the system’s architecture to comply with SSA’s new user experience framework and conducting detailed user experience testing.

In FY 2022, BLS will complete the fourth year of data collection, publish data from the third year of the collection, and begin the fifth year of data collection. BLS will conclude the update in FY 2024.

Exits from Disability Evidence Study

Based on medical improvement, we terminate the benefits of thousands of DI beneficiaries and SSI recipients each year. However, many individuals whose benefits are terminated later return to disability programs. About 30 percent of adult SSI-only recipients and 20 percent of DI-only working beneficiaries who stop receiving benefits because of medical improvement return to these programs within eight years. Among the working DI beneficiaries whose benefits stop, few maintain employment or work above common thresholds of self-sufficiency.

In FY 2019, we conducted a Technical Expert Panel (TEP) to discuss options for a demonstration to support individuals exiting DI due to medical improvement. The TEP recommended we study the services this population needs to support continued or improved self-sufficiency.

Based on the TEP’s recommendation, we plan to initiate a study to collect information about the service, medical, and employment needs of working-age adults (i.e., 18 to 64 years of age) exiting Social Security disability programs because of medical improvement. It also serves to produce testable policy recommendations that help the study population become self-sufficient. The study will involve conducting qualitative and quantitative data activities, including focus groups and a survey, to gather information about the needs of Exiters and Possible Exiters from the DI and SSI disability programs after a determination of medical improvement. Furthermore, this effort will involve small-scale use of Motivational Interviewing to gain more insight about their needs and barriers with respect to promoting sustained and substantial work activity leading to self-sufficiency among this population.

During FY 2020, we began study planning and market research in preparation for awarding a contract to conduct a study. In FY 2021, we will award a contract for the study and in FY 2022 we will clear all data collection activities, per the Paperwork Reduction Act and finalize the schedule with the contractor. We expect to complete all study activities by the end of FY 2024.

Interventional Cooperative Agreement Program (ICAP)

Due to increased attention from policymakers on the employment of individuals with disabilities and their participation in the DI and SSI programs, we propose the establishment of a cooperative agreement program to allow us to collaborate with States, private foundations, and others who have the interest and ability to identify, operate, and partially fund interventional research.

The research and interventions under this program will target the increased employment and self-sufficiency of individuals with disabilities (whether beneficiaries, applicants, or potential applicants of the DI or SSI programs) that could lead to a reduction in DI or SSI participation. Other research priorities include helping claimants in vulnerable populations apply for or appeal decisions for DI and SSI benefits and conducting outreach to children with disabilities who are potentially eligible to receive SSI. This program will provide a process through which we can systematically review demonstration proposals from outside organizations and enter into agreements to collaborate with these non-Federal groups. The cooperative agreements will provide the mechanism for data sharing for evaluation purposes and allow for program waivers that are consistent with current demonstration waiver authorities. This work will complement and be coordinated with our own demonstrations and partnerships with other Federal agencies. This cooperative agreement program does not conflict with our other research grant programs—ARDRAW and the RDRC—which focus on “observational” or “survey” research as contrasted with “experimental” research.

The awards will be tiered, with funding eligibility and level of funding based upon the level of evidence that currently exists for the proposed intervention (i.e., feasibility studies with no causal evidence would be eligible for smaller awards than studies scaling up or otherwise implementing interventions that qualify as “effective” according to a statistical and evaluation criteria). The one-year base period of each grant will support the development of data sharing agreements, project planning, evaluation design, and other administrative aspects of the agreement. If, at the end of the first year, the planning process results in an evaluable project, grants may be extended for up to four additional years. In FY 2021, we plan to pilot this program with at least two cooperative agreements. In FY 2022, we will conduct start-up activities with the initial awardees and solicit applications for additional projects.

Deliver Services Effectively

Understanding America Study (UAS) Enhancements

The Understanding America Study (UAS) is an innovative, nationally representative longitudinal internet panel. Through a jointly financed cooperative agreement with the National Institute of Aging (NIA), our support will allow the grantee to maintain and expand the sample size by the end of the grant to 10,000 panel members. It will also allow for additional data improvements that support policy-relevant research and evidence-based decision-making.

The UAS planned improvements allow us to make more informed decisions about initiating new policies, procedures, and educational products designed to enhance retirement security and administer the program. For example, we use the data to better understand communications

preferences of the public, and we used the longitudinal data to inform the new Social Security Statement supplemental fact sheets that were released in the my Social Security portal in FY 2021. The UAS data is also available for internal and external researchers to use in addressing research questions. For example, the Financial Literacy and Education Commission and other Federal agencies used data from the UAS in their publications about consumer debt, the public’s knowledge of Social Security programs, and sources of the public’s financial advice. Lastly, we have used the UAS data to publish several research papers on Social Security program knowledge, retirement savings behavior, and the relationship between debt and retirement preparedness.

Data Development in an Enterprise Business Intelligence (EBI) Platform

The EBI Platform, together with our Office of Retirement and Disability Policy’s (ORDP) Analytics Research Center (ARC), provide advanced analytics and data integration tools for efficient access and analysis of agency records to support data driven decision-making. Our research funding supports a subset of activities to enhance research and statistical functions conducted by our Office of Research, Evaluation and Statistics (ORES); primarily the publication of statistics from administrative records.

Some of our legacy processes used for producing statistics still require significant manual intervention. We generate reports and data files monthly, quarterly, yearly, and on an ad-hoc basis. Modernized applications automate the processes, which we use to create statistical data, tables, and reports for research. Modernization processes have improved report and data production efficiency and accuracy.

In FY 2020, we enhanced earnings statistical publications processes including:

In FYs 2021 and 2022, we will continue to build tools to enhance our research and statistical reports. Modernization efforts will focus on enhancing and standardizing obsolete data collecting methodologies with the use of modern statistical analytical tools such as Statistical Analysis Software (SAS).

FY 2021 work will include:

FY 2022 work will include:

Medicare Outreach – Section 1144

We target outreach to income-tested Medicare eligible beneficiaries and beneficiaries who have experienced an income decrease. Rather than notify all potentially eligible beneficiaries each year, we annually notify 20 percent of those who previously received an outreach letter, have not received the benefits, and continue to meet the income test.

The passage of the Medicare Prescription Drug, Modernization, and Improvement Act of 2003, P.L. 108-173, expanded the existing cost-sharing outreach requirements of Section 1144 to include outreach to beneficiaries who were potentially eligible for the Medicare prescription drug card transitional assistance. Outreach now includes the subsidized Medicare Prescription Drug coverage program that replaced the transitional program. Since 2002, we have provided outreach letters to beneficiaries with incomes below 135 percent of the poverty level. The letters cover help with “traditional” Medicare, and since 2006, include information about subsidized prescription drug coverage, when appropriate.

In addition, we must share lists of individuals potentially eligible for cost sharing with State Medicaid agencies. The major objective of these projects is to increase the enrollment of eligible

individuals with low income into programs that assist Medicare beneficiaries with their out-of-pocket medical expenses, including prescription drug coverage premiums.

Congress further amended Section 1144 with the passage of P.L. 110-275, the Medicare Improvements for Patients and Providers Act of 2008. This law deemed every Medicare Prescription Drug low-income subsidy (Extra Help) application filed with SSA to be a protective filing for the State-administered Medicare Savings Program (MSP), unless the claimant objects. Since FY 2010, HHS fully reimburses our costs in an amount not to exceed $3 million per year.

In FY 2020, we mailed approximately 1.8 million outreach letters to those who potentially qualified for MSP or Medicare prescription drug coverage low-income subsidy. In FYs 2021 and 2022, we anticipate approximately the same number of mailings, and factor in a contingency amount for possible increases in enrollment, beneficiaries who experience an income decrease, and other expected expenses such as an increase in postage.

Ensuring Stewardship

Census Surveys

The Census Bureau’s Survey of Income and Program Participation (SIPP) is the foundation for much of our policy analysis and modeling efforts. Improving the overall quality of data obtained from the Census Bureau surveys enhances the quality and reliability of the analyses we conduct. We particularly support efforts to improve the quality and content of data that are directly relevant to analyses of the Social Security and SSI programs. In addition, we support efforts by the Census Bureau to improve the ability to match their survey data to our administrative data on benefits and earnings. We rely upon SIPP data matched to our records to study OASI, DI, SSI, and related programs, along with the effect of changes to them on individuals, the economy, and program solvency.

In FY 2019, we developed new questions relating to disability, pensions, and duration of marriage. In FY 2020, the Census Bureau developed and tested this new content and updated training materials for data collection. FY 2021 will be the first production implementation of the new SIPP content in data collection and processing. Beginning in FY 2022, the SIPP content will be stabilized in collection and processing.

Data Development

One of the main objectives of our extramural research program is to provide information for decision-makers on the OASI, DI, and SSI programs. As part of this effort, we develop and maintain a series of detailed, statistical databases drawn from our major administrative data systems and prepare a broad range of statistical tables. As one of 13 Federal statistical agencies, we also produce statistical compilations and publications, and develop information for research, evaluation, and models using survey data collected by SSA, other Federal agencies, and Federally-sponsored institutions.

In FY 2021, we will enter into a new agreement with the Census Bureau called the “Ask US” Panel (i.e., Census Address-and Probability-Based Online Panel). The focus of the interagency

agreement is to collaborate to design, build, and maintain an address-based, probability-based online research panel that will be available for the Federal Statistical System to conduct robust public opinion and methodological research. The Census Bureau, in collaboration with several federal statistical agencies, has entered into a collaborative agreement with RTI (formerly Research Triangle Institute) to build this panel. Our partnership with Census allows the use of a readily-available government-wide, government-vetted online research panel to conduct regular (e.g., Statement surveys) as well as emergency rapid-response (e.g., COVID-19 research) survey needs so that we would not need to continually go through the process and costs of choosing and paying outside vendors to conduct our survey research needs. This partnership would also allow us to engage with Census and other agencies in shaping many of the details for how the new panel is built and maintained. Finally, the partnership will facilitate both longitudinal and quick turnaround, probability-based research that many government agencies are interested in conducting. This objective supports the Commission on Evidence-Based Policy Making recommendations ( Commission on Evidence-Based Policymaking (CEP) | The Administration for Children and Families (hhs.gov) in several ways:

This online research panel will also facilitate longitudinal and near real-time measurement of key areas of interest to statistical agencies, including:

This project also funds activities central to our role as a Federal statistical agency: the creation of data needed to inform policymakers about important programs, efforts to make data more widely accessible or usable for policy research purposes, and collaboration with other agencies (to study issues of policy relevance and to improve data quality and methods of data analysis).

In FY 2022, we will enter into a new agreement with the Bureau of Census for the Household Pulse Survey (HPS). The HPS provides data on a wide range of social and economic dimensions of American life as a result of the COVID-19 pandemic and recovery, including employment status, income loss, spending, application and receipt of benefits, mental health and access to care, educational disruptions, housing and food security, ability to telework, and travel practices. The Census Bureau produces and releases HPS data weekly for the nation, each State, and the 15 largest metro areas in the United States. The Census Bureau is the designated federal statistical agency conducting this survey and the HPS was designed in collaboration BLS; the Bureau of Transportation Statistics (BTS); the Centers for Disease Control and Prevention (CDC); the National Center for Education Statistics (NCES); the Department of Housing and Urban

Development (HUD); the National Center for Health Statistics (NCHS); SSA; and the USDA Economic Research Service (ERS). The Census Bureau consolidates content requests from these partner agencies into one effort, meeting a range of time-sensitive data needs while minimizing overall burden.

We are using data from the HPS to evaluate trends in benefit applications during the COVID-19 pandemic and recovery, including applications for Social Security, SSI, and Medicare benefits. The data also allow us to examine how COVID-19 is affecting vulnerable populations (Blacks, Hispanics, elderly, low income, poor health, lower educated). These survey findings may also help us in explaining the recent drop in claims by examining data for those who delay claims due to the pandemic.

Other Data Development projects that we are currently funding include:

In addition to these specific projects, we will respond to new needs and opportunities for expansion and improvement of data as they arise.

Health and Retirement Study (HRS) and Supplement

The University of Michigan’s Health and Retirement Study (HRS) surveys more than 22,000 Americans over the age of 50 every 2 years and provides an ongoing source of longitudinal data for research on retirement and aging. The study describes Americans’ transition from work to retirement and provides data on health and economic well-being after retirement that is not available in our program data. HRS data help us assess a wide range of issues, including pre-retirement saving, health insurance and pension coverage, employment and retirement patterns, and projected benefits of disabled and retired workers. Through jointly financed cooperative agreements with NIA, we have supported the HRS from its inception. HRS has become the premier source of data on the retirement-age population, especially when linked with our administrative records on benefits and earnings.

We use the HRS for research projects we fund through the RDRC and by our staff in conducting research on topics including disability, pension participation, differences in contributions to tax-deferred savings accounts among different birth cohorts, and retirement income resources of near-retirees. For example, in FY 2021, our researchers will continue to use the HRS for a study analyzing the accuracy of our Income of the Aged publications and for a study measuring total retirement resources (wealth and income) from 1992-2016, including in-kind transfer payments.

The HRS data we support is also available for outside researchers to use. In FY 2022, researchers will continue to use the HRS to better understand the population aged 50 and older.

Retirement and Disability Research Consortium (RDRC)

The RDRC is one of our key tools for maintaining a strong capability to produce a large body of policy-relevant research on Social Security programs. The RDRC comprises four competitively selected research centers based at the University of Michigan, Boston College, the National Bureau of Economic Research (NBER), and the University of Wisconsin. These research centers are broadly charged with planning, initiating, and maintaining a high quality, multidisciplinary research program that covers retirement, disability, and Social Security program issues. The centers perform valuable research and evaluation of retirement and disability policy, disseminate results, provide training awards, and facilitate the use of our program data by outside researchers.

We awarded the current set of five-year cooperative agreements for the RDRC at the end of FY 2018, with activities beginning in FY 2019. These centers have greatly expanded the amount of policy research on Social Security-related issues and have responded to our specific analytical needs. The research results of the RDRC are widely reported in professional journals, conferences, leading newspapers, radio, and television programs.

FY 2020 funding supports 66 projects to be conducted in FY 2021—compared with 59 projects conducted in FY 2020—on a variety of topics relating to retirement, disability, and Social Security. With the enacted funding in FY 2021 and estimated budget for FY 2022, we anticipate funding around the same number of projects in the next two years. At the broadest level, RDRC proposed research and activities must be relevant to at least one of our program areas or populations. Because specific research needs evolve over time, we provide a list of research focal areas each year. Focal areas for projects to be conducted in FY 2022 include: trends in disability (i.e., the factors that influence disability awards and duration on the disability rolls); work in the modern economy; disabled beneficiaries and return-to-work; informing the economic and demographic assumptions underlying trust fund projections; improving our communication and outreach; the economic security of our beneficiaries; understanding disparities by race and ethnicity; and improving service delivery. Within each topic, we provided the centers with specific research questions for them to consider when developing their research proposals.

In addition to supporting research activities, the RDRC will continue to prepare future experts on retirement and disability issues and policy through research training fellowships, dissertation support, pre- and post-doctoral fellowships, early investigator grants, and junior scholar workshops.

RELATED FUNDING SOURCES

The Commissioner of Social Security has the authority to conduct research and demonstration projects under Section 234 of the Act. We use trust fund monies to conduct various demonstration projects, including alternative methods of treating work activity of individuals entitled to DI benefits. These demonstration projects, authorized under the 1999 Ticket to Work

Act and the BBA of 2015, are funded from the trust funds and are not part of the annual research appropriation request. OMB apportions Section 234 funds. The BBA provided authorization to initiate such projects until December 31, 2021, and to carry out such projects through December 31, 2022.

Benefit Offset National Demonstration (BOND)

The Benefit Offset National Demonstration (BOND) tests the effect of a $1-for-$2 offset of benefits for DI beneficiaries when earnings are above the substantial gainful activity (SGA) level.

We published the final evaluation report in FY 2019. We will continue to provide work incentive counseling services to the remaining BOND participants through FY 2022. We extended the contract to provide these services until the last BOND participant is no longer eligible for the offset in late 2022.

Promoting Opportunity Demonstration (POD)

Section 823 of the BBA amended Section 234 of the Act and instructed us to carry out a demonstration project testing a $1-for-$2 benefit offset. This project differs from BOND in several ways. Among these differences, POD applies a monthly offset to earnings above either a standard threshold (the Trial Work Period level) or an itemized Impairment Related Work Expenses (IRWE) level. Participation is voluntary and individuals can withdraw from the project at any time.

Project implementation is nearing completion, as participation for beneficiaries in the POD ends June 2021. The effects of COVID-19 on POD will affect the interpretation of the final 2020 impact estimates due to the resulting economic recession and increased unemployment rate. However, we will continue to provide benefits counseling and process offsets for participants. We recently released three evaluation reports:

The final survey of participants will be completed in FY 2021 and we will complete the evaluation in FY 2022.

Lessons Learned from SSA Demonstrations

For more than 30 years, we have conducted several tests of new policies and programs to improve beneficiary work outcomes. These demonstrations have covered most aspects of the DI and SSI programs and populations and have addressed topics including family supports, children, informational notices, changes to benefit calculations, and a variety of employment services and program waivers. These demonstrations generate many reports about which policies worked and which did not, but there has yet to be a synthesis of the findings from the entire body of work, apart from a few cursory reviews in academic survey articles or brief reports. There remains a

need for a comprehensive review to identify cross-demonstration lessons about which policies, programs, or other operational decisions would provide effective support for disability beneficiaries who want to work.

We plan to synthesize the lessons learned from these tests to highlight promising strategies policymakers could implement. By taking stock of the full lessons learned from these demonstrations, policymakers will have an understanding of what has been tested and whether and why those policies were effective. In turn, this understanding will enable us to implement policies that work in multiple settings, propose alternatives to policies that may not have worked for identifiable reasons, and identify policies and strategies for future demonstrations. The synthesis will help us identify new policies that build on prior research and ways to implement demonstrations (in terms of methodology and analytical approaches) that maximize the amount of usable information within reasonable timeframes and budgets.

We awarded a contract in FY 2020 and will hold a state-of-the-science meeting in June 2021. We will disseminate the findings more broadly through early FY 2022.

Table 2.23—Current Research Projects Obligations through FY 2020

(in thousands)

ADMINISTRATION OF OUR RESEARCH ACTIVITIES

To implement these demonstrations and Section 1110 and 1144 extramural research projects, we need to continue to hire and develop staff able to test creative and effective ways to reform the disability and retirement programs for a modern labor market and promote greater labor force participation of people with disabilities. The ability to design and implement rigorous research and demonstration projects requires employees with unique skill sets in program administration, policy design, project management, research and evaluation, and problem solving.

Our primary research components are housed within ORDP. ORDP is responsible for all major activities in the areas of strategic and program policy planning, policy research and evaluation, statistical programs, and overall policy development, analysis and implementation. Within ORDP, the Office of Research, Demonstration, and Employment Support; the Office of Disability Policy; and the Office of Research, Evaluation, and Statistics share the responsibility of administering projects funded under our research appropriation.

Office of Research, Demonstration, and Employment Support (ORDES) - ORDES conducts research and analysis related to the DI and SSI programs. ORDES implements demonstration projects to test changes to the disability programs primarily aimed at improving program administration and supporting employment. ORDES also conducts research, analysis, evaluations, and statistical modeling that support our goals to strengthen our DI programs and improve program integrity. ORDES is also responsible for the collection of new occupational information to support our disability programs.

Office of Disability Policy (ODP) - ODP oversees and supports the planning, development, evaluation, and issuance of substantive regulations, policies, and procedures for our DI

programs; development and promulgation of policies and guidelines for use by State, Federal, or private contractor providers who implement the disability provisions of the Act; evaluation of the effects of proposed legislation and legislation pending before Congress to determine the impact on the disability programs; and the coordination of interrelated policy areas. ODP uses research to identify opportunities for policy improvement; to keep medical, childhood, DI, and CDR policies up to date; and to make informed DI policy decisions.

Office of Research, Evaluation, and Statistics (ORES) - ORES is a Federal statistical unit responsible for the production and dissemination of research, statistics, and data on Social Security programs. ORES meets these responsibilities through four primary functions:

RESEARCH INVESTMENT CRITERIA

We support research that fosters a better understanding of the socio-economic status and other characteristics of Americans under the program we administer; how changes in demography and the economy might alter the well-being of the program and those it covers; the interrelationships between the program and other private and public programs; and the impact of the program on the overall economy. Within this framework, our extramural program places the best available

evidence into the hands of policymakers to inform policy development and program administration. We have established guidelines for developing, managing, and vetting projects for potential inclusion in our long-term research and demonstration agenda. We employ a variety of methods to ensure we meet the funding requirements of the sections of the Act that authorize our extramural research and demonstration activities and our extramural research activities meet high standards for relevance, quality, and performance.

Relevance

The primary purpose of our extramural research is to support evidence-building to inform the improvement of our programs. We seek to support research and demonstrations that clearly connect with this goal. A fundamental step in our review is assuring that each project responds to issues facing the OASDI and/or SSI programs, with priority towards contemporaneous challenges. Our review process includes obtaining the advice and recommendations of researchers with technical expertise, program managers, and agency executives. We also receive input on our research program from the Social Security Advisory Board. The extramural research budget undergoes both our careful scrutiny and that of external monitoring authorities.

Internal reviews also help to ensure that funded activities reflect our strategic goals and objectives and help us respond to legislative requirements and address high-priority issues. Many of our extramural research activities are directed toward providing policymakers and the public with the analytical and data resources they need to assess our current programs and the implications of reform proposals.

Our budget request reflects our support of the Administration’s and Congress’ ongoing goals to provide opportunities for individuals with disabilities to maximize their self-sufficiency through work and to increase the American public’s basic financial management skills. For example, through the RETAIN project, we are working collaboratively with DOL to test interventions that will improve the ability of individuals to remain in the labor force when they acquire an illness or injury.

We are also working with DOL and with HHS’ Administration for Children and Families to test early intervention and return-to-work services for individuals who may be potential future applicants for DI or SSI.

Quality

Our extramural program provides access to analysts at top research institutions from around the country to expand our base of expertise to produce the best evidence in support of our program. We use a competitive, merit-based, peer reviewed procurement process to ensure that our extramural research program selects the most appropriate individuals and techniques to produce high quality results. We award our extramural research projects conducted by private-sector organizations through competitive contracts, grants, or cooperative agreements. As a result, our extramural program features internationally recognized scholars including many that have held important Federal posts (e.g., Council of Economic Advisors) and received significant recognition for their research contributions (e.g., the John Bates Clark Medal).

We also use Technical Expert Panels to review projects while they are in progress to provide feedback and suggestions to the agency. These panels include internal experts in relevant disciplines, such as statistics, economics, and survey design. They help ensure that our sponsored research projects are methodologically sound and consistent with professional standards. The research projects we sponsor through the RDRC are often discussed in formal seminars or workshops, as well as published in top peer-reviewed scientific journals.

Performance

We carry out our extramural research and evaluation projects primarily through contracts, jointly funded cooperative agreements, and grants that identify specific deliverables and timetables. The agency has sent a strong message to contractors that they must complete projects on time and within budget. Contracting officers, contracting officer’s representatives, analysts, and senior executives monitor the progress of all research contracts and agreements. These agreements are also subject to audits by the Office of the Inspector General.

Consistent with the Administration’s encouragement to support evidence-based evaluations, we produce reports and data files for each research and evaluation project in an effort to determine whether existing or proposed programs work as designed. Where appropriate, we make these reports publicly available or announce their availability in the Social Security Bulletin and online. 1 The RDRC also disseminates output at annual meetings, online, and through a variety of publications, workshops, and conferences. Finally, our research projects are widely cited in both peer-reviewed publications and the mainstream press.

TABLES

Table 3.1 – Authorizing Legislation……………………………………………………….89

Table 3.2 – Appropriation Language Analysis…………………………………………….93

Table 3.3 – Significant Items in Appropriations Committee Report………………………96

Table 3.4 – FY 2020 Consultative Examination Counts and Cost Data……………….....118

Table 3.5 – Appropriation History Table………………………………………………....121

Table 3.6 – Benefit Outlays………………………………………………………………130

Table 3.7 – Beneficiaries…………………………………………………………………130

Table 3.8 – Budgetary Request…………………………………………………………...132

Table 3.9 – All Purpose Table…………………………………………………………....134

Table 3.10 – COVID-19 CARES Act Obligations……………………………………….136

Table 3.11 – State Supplement Payments………………………………………………...137

Table 3.12 – SSI User Fee Collections…………………………………………………...137

Table 3.13 – Estimated SSA User Fee Collections by State………………………….......138

Table 3.14 – Estimate of Costs for Outreach Efforts……………………………………..144

Table 3.15 – Budget Authority and Outlays………………………………………………145

Table 3.16 – Amounts Available for Obligation….………………………………………147

Table 3.17 – Summary of Changes……………………………………………………….149

Table 3.18 – Budgetary Resources by Object…………………………………………….151

Table 3.19 – FY 2020 – Estimated Distribution of Agency Costs……………………….152

Table 3.20 – FY 2021 – Estimated Distribution of Agency Costs……………………….152

Table 3.21 – FY 2022 – Estimated Distribution of Agency Costs……………………….153

Table 3.22 – Key Performance Targets…………………………………………………..156

Table 3.23 – Program Integrity Estimated Spending and Savings………………………..159

Table 3.24 – Program Integrity Workloads and Funding by Source……………………...159

Table 3.25 – Fiscal Year 2020 Disability Decision Data…………………………………162

Table 3.26 - Total Information Technology Systems (ITS) Budget Authority…………...164

Table 3.27 – LAE Expired Balances and No-Year IT Account…………………………...185

Table 3.28 – Total IT Modernization Plan by Domain……………………………………186

Table 3.29 – IT Modernization Plan by Funding Source………………………………….186

Table 3.30 - FY 2020 Physical Infrastructure Costs by Component………………………190

Table 3.31 - FY 2021 Estimated Physical Infrastructure Costs by Component………...…191

Table 3.32 - FY 2022 Estimated Physical Infrastructure Costs by Component………..….192

Table 3.33 – FY 2020 Physical Infrastructure Costs by Region…………………………...193

Table 3.34 – FY 2021 Estimated Physical Infrastructure Costs by Region…………….…193

Table 3.35 – FY 2022 Estimated Physical Infrastructure Costs by Region…………….…194

Table 3.36 – SSAB Budget Authority by Object Class and Staffing…………………...…196

APPROPRIATION LANGUAGE/BACKGROUND

AUTHORIZING LEGISLATION

The LAE account is authorized by section 201(g) of the Social Security Act. The authorization language makes available for expenditure, out of any or all of the Trust Funds, such amounts as Congress deems appropriate for administering Title II, Title VIII, Title XVI, and Title XVIII of the Social Security Act for which we are responsible and Title XVIII of the Act for which the Secretary of the Department of Health and Human Services is responsible.

Table 3.1—Authorizing Legislation

(Dollars in thousands)

APPROPRIATION LANGUAGE

For necessary expenses, including the hire and purchase of [two] passenger motor vehicles, and not to exceed $20,000 for official reception and representation expenses, not more than [$12,794,945,000] $14,049,896,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to in such section: Provided, That not less than [$2,500,000] $2,700,000 shall be for the Social Security Advisory Board[: Provided further, That $45,000,000 shall remain available until expended for information technology modernization, including related hardware and software infrastructure and equipment, and for administrative expenses directly associated with information technology modernization: Provided further, That $50,000,000 shall remain available through September 30, 2022, for activities to address the disability hearings backlog within the Office of Hearings Operations]: Provided further, That unobligated balances of funds provided under this paragraph at the end of fiscal year [2021] 2022 not needed for fiscal year [2021] 2022 shall remain available until expended to invest in the Social Security Administration information technology and telecommunications hardware and software infrastructure, including related equipment and non-payroll administrative expenses associated solely with this information technology and telecommunications infrastructure: Provided further, That the Commissioner of Social Security shall notify the Committees on Appropriations of the House of Representatives and the Senate prior to making unobligated balances available under the authority in the previous proviso: Provided further, That reimbursement to the trust funds under this heading for expenditures for official time for employees of the Social Security Administration pursuant to 5 U.S.C. 7131, and for facilities or support services for labor organizations pursuant to policies, regulations, or procedures referred to in section 7135(b) of such title shall be made by the Secretary of the

Treasury, with interest, from amounts in the general fund not otherwise appropriated, as soon as possible after such expenditures are made.

[Of the total amount made available in] From funds provided under the first paragraph [under this heading, not more than $1,575,000,000], $1,708,000,000, to remain available through March 31, [2022] 2023, is for the costs associated with continuing disability reviews under titles II and XVI of the Social Security Act, including work-related continuing disability reviews to determine whether earnings derived from services demonstrate an individual's ability to engage in substantial gainful activity, for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, for the cost of co-operative disability investigation units, and for the cost associated with the prosecution of fraud in the programs and operations of the Social Security Administration by Special Assistant United States Attorneys: Provided, That, of such amount, $273,000,000 is provided to meet the terms of [section 251(b)(2)(B)(ii)(III) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended] a concurrent resolution on the budget, and [$1,302,000,000] $1,435,000,000 is additional new budget authority specified for purposes of [section 251(b)(2)(B) of such Act] a concurrent resolution on the budget: Provided further, That, of the additional new budget authority described in the preceding proviso, up to [$11,200,000] $12,100,000 may be transferred to the "Office of Inspector General", Social Security Administration, for the cost of jointly operated co-operative disability investigation units: Provided further, That such transfer authority is in addition to any other transfer authority provided by law: Provided further, That the Commissioner shall provide to the Congress (at the conclusion of the fiscal year) a report on the obligation and expenditure of these funds, similar to the reports that were required by section 103(d)(2) of Public Law 104–121 for fiscal years 1996 through 2002: Provided further, That

none of the funds described in this paragraph shall be available for transfer or reprogramming except as specified in this paragraph.

In addition, [$135,000,000] $138,000,000 to be derived from administration fees in excess of $5.00 per supplementary payment collected pursuant to section 1616(d) of the Social Security Act or section 212(b)(3) of Public Law 93–66, which shall remain available until expended: Provided, That to the extent that the amounts collected pursuant to such sections in fiscal year [2021] 2022 exceed [$135,000,000] $138,000,000, the amounts shall be available in fiscal year [2022] 2023 only to the extent provided in advance in appropriations Acts.

In addition, up to $1,000,000 to be derived from fees collected pursuant to section 303(c) of the Social Security Protection Act, which shall remain available until expended. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2021.)

LANGUAGE ANALYSIS

The Limitation on Administrative Expenses (LAE) appropriation language provides us with the funds needed to administer the Old Age and Survivors Insurance (OASI), Disability Insurance (DI), and Supplemental Security Income (SSI) programs, and to support the Centers for Medicare and Medicaid Services in administering their programs. The LAE account is funded by the OASI, DI, and Medicare trust funds for their shares of administrative expenses, by the General Fund of the Treasury for the SSI program’s share of administrative expenses, and through applicable user fees. The language provides the limitation on the amounts that may be expended, in total from these separate sources, for our administrative expenses.

We take seriously our responsibilities to ensure eligible individuals receive the benefits to which they are entitled, and to safeguard the integrity of benefit programs to better serve recipients. We are requesting $1,708,000,000 in dedicated program integrity funding, including a $1,435,000,000 allocation adjustment. We conduct continuing disability reviews (CDRs) to ensure that only beneficiaries who still qualify to receive benefits under the OASDI and SSI programs continue to receive them benefits (includes both medical and work CDRs). For those receiving SSI, we also perform non-medical redeterminations to determine whether recipients continue to meet the program’s income and resource limits. The funding also supports anti-fraud Cooperative Disability Investigation (CDI) units and the prosecution of fraud by Special Assistant U.S. Attorneys (SAUSA). In FY 2022, the Budget provides for the transfer of up to $12,100,000 from the program integrity cap adjustment funds to the Inspector General (OIG)

CDI unit related costs. Following expiration of the discretionary caps in 2021, the Budget includes an allocation adjustment for FY 2022. This adjustment is shown in the Budget for use in the Congressional budget process, pursuant to the Congressional Budget Act. In addition to the appropriated amounts, we are requesting to spend up to $138,000,000 in SSI State Supplement user fees and up to $1,000,000 in non-attorney representative fees.

Table 3.2—Appropriation Language Analysis