Supplemental Security Income

Supplemental Security Income (SSI) is a federally financed and administered program created in 1974. SSI is managed by the Social Security Administration but funded through general tax revenues. Designed to assist needy Americans, SSI provides monthly cash payments to Americans with limited INCOME and resources who are age 65 and older, blind, or disabled. Unlike the Old Age and Survivors Income (OASI) part of SOCIAL SECURITY, SSI is not based on prior work or contributions into the Social Security system. Supplemental Security Income is available to U.S. citizens and “certain qualified aliens.” In 2002, 7.2 million Americans received SSI benefits. SSI rules regarding income and resources are quite severe, limiting eligibility to the program to only the most needy people. Critics contend SSI discourages people from returning to work after being disabled. SSI, under the Ticket to Work and Work Incentives Improvement Act (1999), allows SSI recipients to return to work without immediately losing benefits. In the year 2000, SSI restrictions included a resources limit of $2,000 for individuals and $3,000 for couples. Resources include cash, land, life INSURANCE, and PERSONAL PROPERTY but excluded an individual’s home and a car. The maximum SSI payment was $512 for individuals and $769 for couples in the year 2000. SSI recipients’ benefits are reduced for any earned income greater than $65 per month. Some states provide supplements to SSI payments. In most states, SSI recipients also receive Medicaid, a joint federal-state health payment program. Federal spending on SSI has grown from $8 billion in 1974 to $35 billion in 2000.