During the first Bush Administration there were 22 bills enacted
containing Social Security-related provisions.
1) P. L. 101-56, Computer Matching and Privacy Protection
Act Amendments of 1989, signed into law July 19, 1989:
Delayed effective date of earlier legislation governing how and
when SSA exchanges information with other federal agencies.
2) P. L. 101-136, Treasury, Postal Service and General
Government Appropriations Act, 1990, signed into law
November 3, 1989: Required SSA to directly reimburse Treasury's
Financial Management Services for cost of issuing Social Security
checks. (Previously we reimbursed the General Fund of Treasury.)
3) P. L. 101-166, Departments of Labor, HHS, and Education,
and Related Agencies Appropriations Act, 1990, signed
November 21, 1989. Appropriated $3.5 million to SSA for SSI outreach
efforts. Encouraged SSA to consider Chronic Fatigue Syndrome in
4) P. L. 101-201 Agent Orange Settlement Payment Exclusion,
signed December 6, 1989: Provided that payments from the Agent
Orange settlement were excluded as income/resources for federal
programs based on need (implicitly included SSI).
5) P. L. 101-239, Omnibus Budget Reconciliation Act of
1989, signed 12/19/89:
This law contained 25 provisions related to SSA or its programs.
(See Appendix 1 for a complete list). Among
the provisions of note was a requirement that SSA send annual
Personal Earnings & Benefit Estimate Statements to virtually
all persons working under Social Security. These statements (which
we now call simply Social Security Statements) are the primary
financial-planning tool made available by SSA. As a result of
this legislation, SSA mails a Social Security Statement automatically
to all workers age 25 and older. (The Statements can also be requested
by any worker at any time.)
The President signed the SSA-related provisions into law as part
of a massive OBRA bill, with major political issues involved,
so in his signing statement he did not make specific reference
to any of the SSA-related provisions.
6) P. L. 101-234 Medicare Catastrophic Coverage Repeal
Act of 1989, signed December 31, 1989: Repealed Medicare
Catastrophic Coverage Act. Impact on SSA was the need to re-program
our computer systems and to respond to public inquiries.
7) P. L. 101-336, Americans With Disability Act of 1990,
signed July 26, 1990: Major social policy legislation, but with
no specific impacts on Social Security or SSA. (Federal agencies
covered under ADA-like rules since 1973.)
8) P. L. 101-509, Treasury, Postal Service, and General
Government Appropriations Act, 1991, signed November
5, 1990: Raised the pay of SSA's Administration Law Judges.
9) P. L. 101-517, Departments of Labor, HHS, and Education
and Related Agencies Appropriations Act, 1991,
signed November 5, 1990: Directed SSA to do more study and training
on Chronic Fatigue Syndrome.
10) P. L. 101-508, Omnibus Budget Reconciliation Act of
1990, signed November 5, 1990:
This was an important bill, primarily for the large number of
small provisions it contained relating to SSA's programs. Most
of the provisions could be characterized as "administrative"
rather than major policy changes. The most significant policy
change mandatorily extended Social Security coverage to State
and local government employees not covered by a retirement plan
(this affected 2.4 million individuals). The law also established
permanent authority to continue paying benefits during appeal
of disability cessation decisions; introduced various work incentive
and vocational rehabilitation provisions for disability recipients;
and added several provisions relating to representative payees.
(See the Appendix 2 for a complete list
of the provisions.)
One significant feature of this bill was that it explicitly removed
Social Security from the budget deficit calculations under Gramm-Rudman-Hollings.
(Prior legislation had made Social Security off-budget for all
purposes other than budget deficit calculations.) This change
was also significant because, under the prior law, although the
Social Security program was not subject to G-R-H sequesters, it
was out of order to propose legislation (even in the Social Security
area) that had the effect of violating the G-R-H limits. This
may be one of the reasons why few Social Security changes were
forthcoming prior to this bill.
Again, because this was an Omnibus bill, the President did not
mention any of the programmatic provisions in his signing statement,
although he did make a one-sentence mention of taking Social Security
11) P. L. 101-524, Deceptive Mailings Prevention Act
of 1989, signed November 6, 1990: Provided that any solicitation
by a non-governmental agency for purchase or payment of a product
or service that implies any Federal Government connection or approval
may not be carried or delivered by the Postal Service unless it
contains a conspicuous disclaimer of Government endorsement.
12) P. L. 101-579, Chief Financial Officer's Act of 1990,
signed November 15, 1990: Required all federal agencies to appoint
a Chief Financial Officer and to improve financial reporting systems.
13) P. L. 101-624, Food, Agriculture, Conservation, and
Trade Act of 1990, signed November 28, 1990: Requires
SSA to take applications for food stamps as part of SSI process;
establishes audits and studies of same; and requires report of
SSNs of various providers and participants in Dept. of Agriculture
14) P. L. 102-164, Emergency Unemployment Compensation
Act of 1991, signed November 15, 1991: Requires SSA to
provide Dept. of Education with address information from our files
for students with delinquent student loans.
15) P. L. 102-170, Depts. of Labor, HHS, Education &
Related Agencies Appropriations Act, signed November
26, 1991: This appropriation bill provided $6 million for SSI
outreach and encouraged SSA to undertake additional outreach activities
and expressed concern that SSA employ bilingual staff to meet
the needs of non-English speaking clients.
16) P. L. 102-171, Aroostook Band of Micmacs Settlement
Act, signed November 26, 1991: Excludes for SSI purposes
State payments to this band of Native Americans.
17) P. L. 102-227, Tax Extension Act of 1991,
signed December 11, 1991: Extended for six months exclusions under
the tax code for employer-provided educational and legal assistance.
(Not to be counted for Social Security purposes for six additional
18) P. L. 102-375, Older Americans Act Amendments of
1992, signed September 30, 1992: Expresses "Sense
of Congress" that next White House Conference on Aging should
consider impact of the Retirement Earnings Test.
19) P. L. 102-393, Treasury, Postal Service and General
Government Appropriations Act, FY 1993, signed October
6, 1992: Established a Commission on the Social Security Notch.
20) P. L. 102-394, Departments of Labor, HHS, Education
and Related Agencies Appropriations Act, FY 1993, signed
October 6, 1992: Directs SSA to provide a report to Congress on
its computer modernization efforts; directs SSA to put more emphasis
on improving working conditions for employees in certain buildings;
directs SSA to install telephone devices for the deaf in local
offices; requests more study of Chronic Fatigue Syndrome; urges
SSA to address the need for bi-lingual employees and services
(especially to the Spanish-speaking).
21) P. L. 102-486, Energy Policy Act of 1992, signed
October 24, 1992: Makes changes in employer-provided health benefit
programs for coal miners and requires SSA to do most of the administrative
work in implementing the changes.
22) P. L. 102-550, Housing and Community Development
Act of 1992, signed October 28, 1992: Prohibits reduction
or termination of SSI benefits because of in-kind support and
maintenance provided under certain demonstration projects for
Other Events of Note-
Court Case: Sullivan vs. Zebley
The Supreme Court decision in this case had major administrative
and policy impacts on SSA. This case changed how SSA evaluates
disability in children (under the SSI program). Not only did it
force SSA to reopen and re-adjudicate over 316,000 cases, it set
in motion a whole series of policy impacts which continued to
make the area of childhood disability a problem area for SSA well
into the late 1990s.
There were three Totalization Agreements entered into
with foreign nations during the Bush Administration. These agreements
govern the way that credit for work under the Social Security
systems of the U.S. and foreign nations is to be reconciled in
order to prevent workers in the two nations from being "double-taxed"
for Social Security. Agreements were signed with Austria; Finland
The President Files for Social Security & Medicare-
On January 6, 1993 Brian T. Jones, a supervisor at SSA's
M-Street District Office in Washington, D.C., went to the Oval
Office where he took an application for Social Security and Medicare
from President Bush. Brian said of the experience, "It
was the chance of a lifetime, and the height of my career as a
Social Security employee."
|On January 6, 1993 Brian T. Jones, a supervisor at SSA's
M-Street District Office in Washington, D.C., went to the
Oval Office where he took an application for Social Security
and Medicare from President Bush. Brian said of the experience,
"It was the chance of a lifetime, and the height of
my career as a Social Security employee." Photo
by courtesy of Brian Jones.
of the Period-
|March 10, 1989
||Louis W. Sullivan became Secretary of Health
and Human Services.
|August 1, 1989
||Gwendolyn S. King became Commissioner of the
Social Security Administration, serving until October 1992.
|October 24, 1989
||The Baltimore Mega-Site Teleservice Center was
officially opened in the Metro West facility in downtown Baltimore.
More than 500 employees work at the TSC answering calls to
SSA's new nationwide 800 number.
|December 19, 1989
||President Bush signed the Omnibus Budget Reconciliation
Act of 1989.
|February 20, 1990
||The Supreme Court held in "Sullivan
vs Zebley" that substantial parts of the SSI regulation
on determining disability for children are inconsistent with
the Social Security Act.
|November 5, 1990
||President Bush signed Omnibus Budget Reconciliation
Act of 1990.
|April 1, 1991
||Child care center opened in the Metro West Building
in downtown Baltimore.
|April 19, 1991
||Louis D. Enoff became SSA's first Principal
||SSA's second strategic plan (The Social
Security Strategic Plan: A Framework for the Future)
||Child Care Center opened in the Operations Building
at the Woodlawn complex.
|August 19, 1992
||Report of the Experts of the Supplemental Security
Income Modernization Project is published.
|October 1, 1992
||Louis D. Enoff named Acting Commissioner of
the Social Security Administration, he served in this capacity
until July 18, 1993.
1: Detailed Provisions of the 1989 OBRA Law
- Eliminate the special dependency
tests for child's insurance benefits in the case of children
who are adopted before age 18 by retired or disabled beneficiaries.
- Extend for 1 additional year
(through 1990) the present temporary provision that allows persons
who appeal a cessation decision following a continuing disability
review (CDR) to continue to receive benefits through the reconsideration
and the ALJ decision.
- Extend, for 3 years, through
June 10, 1993, the authority to waive compliance with Social
Security and Medicare benefit requirements to conduct work incentive
- Authorize the correction of
earnings records at any time if an amount of wages reported
by an employer is less than the correct amount.
- Provide an exemption from Social
Security coverage and taxes for employees who are members of
religious sects opposed to coverage if the employer is either
a partnership and each partner is also a sect member or a church
or church-controlled organization which elected to be exempt
from FICA taxes.
- Prohibit termination of coverage
of U.S. citizens and residents employed abroad by a foreign
affiliate of an American employer.
- Eliminate the "carryover"
reduction in retirement and disability benefits due to receipt
of reduced widow(er)s benefits prior to age 62.
- When fully effective (1999),
require that annual earnings and benefit statements be sent
to all contributors.
- Increase the contribution and
benefit base for 1990 to $51,300--2 percent more than estimated
under present law--to take account of the rise in average wages
that has occurred because of the 1983 extension of Social Security
coverage to certain "deferred compensation" (e.g.,
income tax deferred contributions to certain retirement plans
under 401(k) of the Internal Revenue Code).
- This Act also includes a number
of tax-related changes with relatively minor impact on the Social
APPLICABLE TO BOTH SOCIAL SECURITY AND SSI:
- In making specified determinations
of good cause, fault, and good faith for Social Security purposes,
require the Secretary to take into account any physical, mental,
educational, or linguistic limitations that the individual has.
- Provide notices in various
forms (e.g., telephone call, certified mail) for blind Social
Security applicants and beneficiaries who elect alternative
notice (already provided in SSI program). Also, require the
Secretary to report on the Social Security Administration's
procedures for issuing notices in languages other than English
and reasonable options for expanding this practice.
- Require the Secretary to maintain
an up-to-date electronic record, accessible to SSA field offices
through the agency's computer system, of the identities of persons
representing Social Security and SSI claimants. In addition,
require the Secretary to include in benefit denial notices information
on options for obtaining attorneys to represent the individual's
interests before the Agency.
- When an individual can demonstrate
that he or she failed to file for Social Security benefits as
a result of misinformation concerning eligibility provided by
SSA, deem the individual to have applied on the later of (1)
the date the incorrect information was provided, or (2) the
date the individual met all the requirements for entitlement.
- When an individual who visits
an SSA field office in response to a time-limited notice for
action sent by SSA or due to a missing check, requires that
SSA give a face-to-face interview that same business day.
- Direct SSA to conduct an ongoing
program of outreach to children potentially eligible for SSI
on the basis of disability or blindness.
- Permit certain disabled children
who would be ineligible for SSI because of deemed parental income
or resources but who receive Medicaid coverage under State home
care plans to receive the $30 monthly personal needs allowance
that would be payable if the children were institutionalized,
without regard to their parents' incomes and resources.
- Continue SSI eligibility for
children of U.S. Armed Forces' personnel who are U.S. citizens
and who live with their parents who are on permanent duty assignments
outside the United States, Puerto Rico, and the territories
and possessions of the United States.
- Exclude the value of tickets
for domestic travel from income if the tickets are used and
not converted to cash.
- Exclude from income and resources
for SSI purposes, interest and accruals on the value of agreements
to purchase burial spaces that are excluded from resources.
- A married couple would be treated
as separated for SSI purposes beginning with the first month
after the month of separation, rather than after the sixth month
as under present law.
- Bar the Secretary from establishing
limits (such as the regulatory $6,000/6-percent rule) on the
value of property used in a trade or business or as an employee
(including the tools of a trades person and the machinery and
livestock of a farmer) which would be excludable as property
essential to self-support.
- Exclude from income and resources
for SSI, payments from a settlement fund set up pursuant to
the Agent Orange liability litigation. (Explicitly included
PROVISIONS RELATED TO SSA PROGRAMS
- Provide the option to purchase
Medicare coverage during specified enrollment periods to individuals
under age 65 who are no longer entitled to Social Security disability
benefits and Medicare coverage because their earnings exceeded
the substantial gainful activity level, but who continue to
- Require the State Medicaid
programs to pay, on a sliding scale, the Medicare Part A premiums
for disabled individuals (1) who are eligible to purchase Medicare
protection under the above provision, (2) whose income, as determined
under the SSI program, does not exceed 200 percent of the official
poverty line, and (3) whose resources, as determined under the
SSI rules, do not exceed twice the SSI resource limits.
2: Detailed Provisions of the 1990 OBRA Law
State and Local Coverage
Extends OASDI coverage to most State and local government employees
not participating in a public employee retirement system. The
provision does not apply to students employed by the educational
institution that they attend. Effective date: July 1991.
Continuation of Disability
Benefits During Appeal -
authority for disability beneficiaries to elect to have their
disability benefits and Medicare protection continued through
the hearing level of appeal in medical cessation cases.
Definition of Disability
for Widow(er)s -
Applies to disabled widow(er)s the same definition of disability
that applies to disabled workers. Continues Medicaid eligibility
for individuals who lose their SSI eligibility in qualifying for
Social Security benefits and facilitates their qualifying for
date: January 1991.
Modifies dependency requirements to permit a child adopted by
a worker's surviving spouse to be entitled to benefits if the
child was either living with or receiving one-half support from
the worker at the time of the worker's death. Effective
date: January 1991.
concerning the investigation of potential payees, standards for
determining the fitness of potential payees, and the compiling
and maintaining of relevant files. Also: -generally limits the
deferral or suspension of direct payment of benefits pending selection
of a payee to 1 month. (Effective
date: July 1991); -allows
certain nonprofit social service agencies to charge beneficiaries
a limited fee for providing payee services (Effective date: July 1991); and
-requires SSA to repay to the beneficiary or to an alternate payee
an amount equal to any funds that were misused as a result of
SSA's negligent failure to investigate or monitor a representative
payee (Effective date:
Attorney Fee Process
Streamlines the process for approving fees charged by persons
representing claimants before the agency in claims involving past-due
benefits. Requires the Secretary to approve a written agreement
between a claimant and attorney if the fee specified does not
exceed the lesser of 25 percent of past-due benefits or $4,000.
Effective date: July 1,1991. Also,
limits reimbursement for claimants' representatives' travel expenses
to the maximum amount allowable for travel originating within
the geographic area of the office having jurisdiction over the
administrative proceedings. Effective
date: April 1991.
Administrative Res Judicata
if a claimant for Social Security or SSI benefits does not appeal
an adverse initial or reconsideration determination timely, but
instead relies in good faith on incorrect, incomplete, or misleading
information provided by SSA and files a new application, the new
application may not be denied on the basis that the claimant did
not timely appeal the earlier determination. Also, requires SSA
to describe, in adverse determination notices, the effect on possible
entitlement of choosing to reapply instead of appealing. Effective
dare: July 1991.
Teleservice Center -
projects in at least three teleservice centers under which a written
receipt must be provided to callers to SSA's toll-free telephone
number who request information about potential or current eligibility
or entitlement to benefits. Requires that the projects begin by
May 4, 1991 and last 1 to 3 years. Requires the Secretary to report
to Congress on the projects 90 days after their termination.
Social Security Notices
Requires Social Security notices issued on or after July 1, 1991,
to be written in clear and simple language and to contain the
address and telephone number of the local office that serves the
individual. If the notice is not produced in a local office, it
must include the address of the local office serving the individual
and a telephone number through which that office can be reached.
Requires SSA to restore telephone access to local Social Security
offices to the level generally available as of September 30, 1989,
and to request the publication, in telephone directories, of telephone
numbers and addresses of local offices that provide direct telephone
access by May 4, 1991. Requires the Secretary to report to Congress
by January 1, 1993, on the impact of the provision on SSA and
to present a plan to use new technologies to enhance access to
SSA, including local offices. Requires the General Accounting
Office to report on the level of telephone access to local offices
not later than March 5, 1991 (interim report) and June 3, 1991
Social Security Account
Requires SSA to begin sending annual statements of earnings
and potential benefits to all workers by
October 1, 1999. (Prior law had required statements every 2 years
beginning in October 1999.)
Trial Work Period (TWP)
During Rolling 5-Year Period for All Disabled Beneficiaries -
Provides that a
disabled beneficiary's trial work period shall continue until
he performs services in 9 months of any period of 60 consecutive
months. Also, provides a TWP for reentitled disabled workers.
Effective date: January
Continuation of Benefits
on Account of Participation in a Non-State Vocational Rehabilitation
(VR) Program Gives
DI and SSI beneficiaries who medically recover while they are
participating in an approved non-State VR program the same benefit
continuation rights as those who medically recover while they
are participating in a State VR program. Effective
date: November 5, 1993.
Limitation on New Entitlement
to Special Age-72 Payments -
Precludes entitlement to "Prouty benefits" for people
reaching age 72 after 1990 who otherwise would meet the requirements
for these benefits. Effective
date: November 1990.
Modification of Advance
Tax Transfer -
Provides for crediting
the trust funds with Social Security tax receipts as they are
collected, rather than crediting them in advance on the first
day of each month. Advance tax transfers would be available, however,
if benefits otherwise could not be paid on time. Effective
date: December 1990.
Retroactive Reduced Benefits
reduced benefits in order to charge off any excess earnings under
the retirement earnings test in the year of filing and in Cases
where unreduced auxiliary benefits are payable. Effective
date: January 1991.
Old Computations -
consolidates old, little-used computation methods. Effective
date: June 1992.
Auxiliary Benefits -
Codifies SSA policy for suspending benefits to auxiliaries when
a disabled worker's benefits are suspended because he is engaging
in substantial gainful activity during the 36-month "extended
period of eligibility" that follows the trial work period.
Effective date: December
Deemed Spouse -
Provides benefits for a deemed spouse, a person who entered into
an invalid ceremonial marriage in good faith, regardless of whether
a legal spouse is entitled to benefits on the same earnings. Where
both a deemed spouse and a legal spouse are entitled to benefits,
the legal spouse will be paid outside the maximum family benefit.
Effective date: January 1991.
VR Demonstration Projects
Requires the Secretary to conduct demonstration projects, running
for 3 years in at least three States, to assess the advantages
and disadvantages of permitting disabled beneficiaries to choose
among qualified public or private providers to furnish them with
rehabilitation services. Effective
date: November 1, 1990.
Legalized Aliens (Exempt
From Prosecution) -
legalized under specified statutes from prosecution for having
furnished false information about their earnings or having misused
a Social Security card before January 4, 1991. The exception does
not apply to anyone involved in the production and sale of a Social
Reduction in Earnings
Needed for a Year of Coverage Toward the Special Minimum Benefit
Reduces the amount
of coverage toward the special minimum benefit (designed to assist
long-term, low-wage workers) from 25 percent of the old-law contribution
and benefit base ($9,900) to 15 percent of that base ($5,940).
Effective date: January
Treatment of Earnings
of Corporate Directors -
earning as taxable and creditable for Social Security purposes
for the year the earnings are received. Directors' earnings continue
to be treated as earned in the year the services are performed
for purposes of the Social Security retirement test. Effective
date: January 1991.
Collection of Employee
Social Security and Railroad Retirement Taxes on Taxable Group-Term
Life Insurance Provided to Former Employees-
Requires a person
whose former employer continues to provide taxable group-term
life insurance to pay the employee portion of FICA tax. Effective date:
Waive 2-Year Waiting Period
2-year waiting period for entitlement to divorced spouse's benefits
without regard to the worker's earnings if the worker was entitled
to benefits before the divorce. Effective date: January 1991,
Changes the requirements for reviewing disability determinations
prior to final action from a 65-percent review of favorable determinations
by State agencies to a 50-percent review of OASDI allowances and
a review of a sufficient number of other favorable determinations
to ensure a high degree of accuracy. Requires annual reports to
appropriate congressional committees beginning by April 1, 1992.
Effective date: October
Recovery of OASDI Overpayments
by Means of Reduction in Tax Refunds -
Permits the recovery
of overpayments from former SSA beneficiaries by means of offsetting
income tax refunds under the same authority applicable to other
Federal programs (which expires January 10, 1994).
Effective date: January 1991.
Statement of Actuarial
Requires that the annual OASDI trustees report include a finding
as to whether the trust funds are in close actuarial balance,
as defined by the trustees.
Attainment of Age 65 Not
To Serve as Termination of Eligibility Under Section 1619(b) -
age 65 limit for Medicaid-only eligibility under the section 16
19(b) work incentive provision for individuals whose SSI eligibility
is based on a determination of disability or blindness. Effective
date: May 1991.
Treatment of Royalties
and Honoraria as Earned Income -
earned in connection with the publication of an individual's work
and any honoraria received for services rendered as earned, rather
than unearned, income for purposes of SSI eligibility and benefit
date: December 1991.
Exclusion from Income
and Resources of Victims' Compensation Payments-
Excludes from income
payments received from a State-established fund to aid victims
of crime. Also, excludes these payments from resources for 9 months
after the month they are received if the recipient shows that
they were paid as compensation for expenses incurred or losses
suffered as a result of a crime. In addition, a person may not
be denied SSI benefits for refusing to accept victims' compensation
date: May I, 1991.
Exclusion from Income
of Impairment-Related Work Expenses (IRWE) -
Provides for excluding
IRWE from income in determining initial eligibility for SSI benefits
and State supplementary payments. (IRWE previously were excluded
only in determining benefit amounts, substantial gainful activity,
and continuing eligibility.) Effective
date: December 1990.
Certain State Relocation
Assistance Excluded From SSI Income and Resources -
Excludes from income payments received as State or local government
relocation assistance. These payments also are excluded from resources
for 9 months after the month they are received. The provision
expires in April 1994. Effective date: May 1991.
Evaluation of Children's
Disabilities by a Pediatrician or Other Qualified Specialist -
Requires the Secretary to make reasonable efforts to ensure that
a child's disability is evaluated by a qualified pediatrician
or other specialist in a field of medicine appropriate to the
child's disability. Effective date: April 1991.
Reimbursement for VR Services
Furnished During Certain Months of Nonpayment of SSI Benefits-
for VR services provided in months for which individuals were
not receiving Federal SSI benefits but were in "special status"
under section 1619(b) or suspended benefit status or were receiving
federally administered State supplementary payments. Effective date: November 5, 1990.
Extension of Period for
Presumptive Eligibility for Benefits -
Extends from 3
to 6 months the period for which benefits may be paid on the basis
of presumptive disability or blindness pending a final determination.
Effective date: May
Reviews Not Required More Than Once Annually -
disability reviews for purpose of the work incentive provisions
of section 1619 to no more than one in any 12-month period. Effective
date: November 5, 1990.
Concurrent SSI and Food
Stamp Applications by Institutionalized Individuals -
Provides that the
Secretaries of HHS and Agriculture shall develop a procedure under
which an individual about to be released from a public institution
who applies for SSI may also apply for benefits under the food
stamp program, using a separate but concurrent application. Effective date: November 5, 1990.
Notification of Certain
Individuals Eligible To Retroactive Benefits -
Requires the Secretary, when notifying individuals eligible under
Zebley (a Supreme Court decision that requires SSA to reopen many
previously denied childhood disability determinations and that
may result in large retroactive SSI payments), to provide a clearly
written notice explaining (1) that retroactive SSI payments are
excluded from resources under SSI for only 6 months; (2) the potential
effects under SSI of receiving retroactive payments; (3) the possibility
of establishing a trust account that would not be considered as
income or resources under SSI; and (4) that legal assistance in
establishing such a trust may be available from various legal
referral services. Effective
date: November 5, 1990.
The Social Security Trust
Funds and the Budget Process -
Explicitly removes the Social Security funds from deficit calculations
for Gramm-Rudman-Hollings purposes. Also includes many changes
in the congressional budget process and provisions designed to
enforce deficit reduction targets. Effective
date: Fiscal Year 1991.
Payroll Tax Deposit Schedule-
Accelerates the deposit schedule beginning in 1991 for employers
whose withheld Social Security and income taxes total $100,000
or more as set by regulations.
Number (TIN) -
For taxable years
beginning 1991, reduces from 2 years to 1 year the age at which
a TIN--usually a Social Security number (SSN)--must be shown for
a dependent claimed on an income tax return.
Tax and Earnings Verification
for Department of Veterans Affairs Benefits -
Allows Social Security and IRS data to be used to verify income
for applicants or recipients of specified DVA benefits after notifying
them of such use. Effective
date: November 1990.
SSN USE and Death Notification
for DVA -
applicants for or recipients of DVA compensation or pension benefits
who have SSNs to furnish those numbers at the request of DVA.
Also requires DVA to periodically check HHS death information
with respect to DVA beneficiaries. Effective
date: November 1990.
Modifications of Earned
Income Tax Credit (EITC) -
rates and excludes tax refunds and payments from employers related
to EITCs from income in the month of receipt and from resources
in the month following the month of receipt under the SSI, AFDC,
Medicaid, and food stamp programs.
Effective date: January 1991.
Increase the Hospital
Insurance (HI) Contribution Base -
Increases the amount
of earnings subject to the HI tax to $125,000 for 1991, with automatic
adjustments as wages rise thereafter. (The OASDI contribution
base for 1991 is $53,400.)
Increase Part B Premium
Increases the Supplementary Medical Insurance premium to $29.90
in 1991, $31.80 in 1992, $36.60 in 1993, $41.10 in 1994, and $46.10
Debt Limit Increase -
Increases the permanent statutory debt limit from $3.123 trillion
to $4.145 trillion, which is expected to accommodate the Federal
Government's borrowing needs through the first few months of 1992.
1. "Social Security is fully protected
and taken off-budget."