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When people become disabled under the statutory definition the Social Security Administration must follow, the agency helps them meet their basic needs and sustain a higher quality of life. Social Security administers disability benefits through two programs: the Social Security Disability Insurance (SSDI) program and the Supplemental Security Income (SSI) program. Under both programs, the agency follows a five-step process to determine if an adult has a qualifying disability.
Under the final rule, beginning June 22, 2024, when determining past relevant work, the agency will review only five years of past work. The previous policy required people to provide detailed information about 15 years of work history, which was difficult for individuals to remember and often led to incomplete or inaccurate reporting. Also, the agency will no longer consider past work that started and stopped in fewer than 30 calendar days. The new rule makes it easier for people applying for benefits by focusing on their most recent relevant work activity while still providing enough information to continue making accurate determinations.
This final rule is one of several regulation updates Social Security is publishing to improve its disability program. The agency recently announced it will reduce barriers to access the SSI program by updating the definition of a public assistance household (See Social Security to Expand Access to SSI Program by Updating Definition of a Public Assistance Household). The agency also announced it will exclude the value of food from SSI benefit calculations (See Social Security to Remove Barriers to Accessing SSI Payments). Additionally, the agency announced it will expand its rental subsidy exception, currently only in place for SSI applicants and recipients residing in seven States, as a nationwide policy (See Social Security to Expand SSI Rental Subsidy Policy).
On June 22, 2024, the agency published new public guidance and instructions about these changes. The agency anticipates that, as a result, it will only consider the most relevant occupations when determining if someone applying for disability benefits could perform other types of work.
These changes add to a growing list of policy updates that Social Security is publishing to improve its disability programs. For example, the agency recently announced it will reduce barriers to access the SSI program by updating the definition of a public assistance household (See Social Security to Expand Access to SSI Program by Updating Definition of a Public Assistance Household). The agency also announced it will exclude the value of food from SSI benefit calculations (See Social Security to Remove Barriers to Accessing SSI Payments).
This year, the Social Security Administration (SSA) celebrates 50 years of administering the Supplemental Security Income (SSI) program. President Richard Nixon signed the bill in 1972, and in January 1974, SSA began issuing the first SSI payments to nearly 4 million eligible people. The goal of the SSI program was to aid aged, blind, and individuals with disabilities with very limited income and resources.
Fifty years later, the SSI program remains a lifeline by providing cash assistance to about 2% of the U.S. population, approximately 7.5 million people, with limited income and resources, including nearly 1 million low-income children with disabilities. SSI benefits can help pay for basic needs like rent, food, clothing, and medicine, reducing the number of people in extreme poverty, and alleviating the burden on other family members.
The agency recently announced it will expand access to the SSI program by updating the definition of a public assistance household. (Refer to Press Release Press Office SSA) The agency also announced it will exclude the value of food from SSI benefit calculations. (Refer to Press Release Press Office SSA) Additionally, the agency announced it will expand its rental subsidy exception, currently only in place for SSI applicants and recipients residing in seven States, as a nationwide policy. (Refer to Press Release Press Office SSA)
To learn more about how the agency is working to remove barriers to accessing SSI payments, simplify the SSI application and improve customer service, visit Commissioner O'Malley's First 100 days Accomplishments SSA.
The revised rule also changes the definition of a public assistance household when determining who in a household receives public assistance. The new rule defines a public assistance household as one that has both an SSI applicant or recipient, and at least one other household member who receives one or more of the listed means-tested public income-maintenance (PIM) payments (the any other definition). The previous policy required all household members to receive public assistance. This change benefits SSI recipients living in households where only some members receive public assistance.
These changes are key because, if an applicant or recipient is determined to be living in a public assistance household, the agency assumes they are not receiving assistance from other household members that would otherwise be counted as income. This will allow more people to qualify for SSI and in some cases, receive a higher SSI payment.
This regulation update is one of several that Social Security is publishing to improve the SSI program. The agency recently announced it will exclude the value of food from SSI benefit calculations. (Refer to Press Release Press Office SSA) The agency also recently announced it will expand its rental subsidy exception, currently only in place for SSI applicants and recipients residing in seven States, as a nationwide policy. (Refer to Press Release Press Office SSA)
The Social Security Board of Trustees today released its annual report on the financial status of the health of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASI and DI) Trust Funds are projected to have enough dedicated revenue to pay all scheduled benefits and associated administrative costs until 2035, one year later than projected last year, with 83 percent of benefits payable at that time.
SSI provides monthly payments to adults and children with a disability or blindness, and to adults aged 65 and older, who have limited income and resources. SSI benefits can help pay for basic needs like rent, food, clothing, and medicine. People applying for and receiving SSI must meet eligibility requirements, including income and resource limits.
The fee cap increase is scheduled to take effect this Fall. The agency also plans to tie future increases to the annual cost-of-living adjustment (COLA). SSA will publish notice of this change in the Federal Register in April in advance of the effective date.
The Social Security Administration announced it will decrease the default overpayment withholding rate for Social Security beneficiaries to ten percent (or $10, whichever is greater) from 100 percent, significantly reducing financial hardship on people with overpayments.
The agency works to pay the right people the right amounts at the right time, and Social Security issues correct payments in most cases. However, there is room to improve, as people count on the agency to prevent overpayments from happening and make it easier to navigate the recovery and waiver processes when they occur.
When a person has been overpaid, the law requires the agency to seek repayment, which can create financial difficulties for beneficiaries. As of March 25, 2024, the agency will collect ten percent (or $10, whichever is greater) of the total monthly Social Security benefit to recover an overpayment, rather than collecting 100 percent as was previous procedure. There will be limited exceptions to this change, such as when an overpayment resulted from fraud.
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