As you can see from the previous chapter, the Social Security Administration is careful in its definition both of “disabilities” and who qualifies for disability benefits. These benefits are the primary way in which the system assists workers who, for one reason or another, are unable to work. In this chapter, we’ll talk about a second kind of disability benefits: Supplemental Security Income (SSI).
The original 1935 act that created Social Security also mandated state programs of Aid to the Blind, Old-Age Assistance, and Aid to the Permanently and Totally Disabled. In the 1970s, the Nixon administration decided to federalize and centralize these programs under the umbrella of the SSA. The result was a 1972 amendment creating SSI. The program began in 1974.
Unlike Social Security, which is primarily funded by a payroll tax (FICA), the SSI is funded out of general Treasury revenues, which come from income tax, corporate taxes, and other sources.
As of August 2014 SSI benefits were going to 8.3 million people, 1.3 million of whom were under the age of eighteen. These numbers, and the amount of dollars being doled out by the program, continue to increase. This represents a challenge to the government, since SSI isn’t funded the same way as Social Security and therefore isn’t subject to the same kinds of fixes we discussed earlier.
The key determinants for whether or not you qualify for SSI are your age and your income. In calculating your income, the Social Security Administration does not count the following:
Part of your spouse’s income is included in the calculation; if you’re under eighteen, the SSA uses part of your parents’ income in calculating your income. To qualify for SSI benefits, your income must be less than $733 per month if you’re an individual ($1,100 for couples). Note that these figures are as of 2016 and change from year to year. For the latest information on this, go to www.ssa.gov/ssi/.
If you are disabled but are still working, any money you spend on items you need because you’re disabled (e.g., a wheelchair, crutches, special transportation) is deducted from the SSA’s calculation of your income. Under the same logic, the SSA deducts from the income calculation any money a blind person uses to do her or his work.
In addition to income, the SSA includes in its means test your resources (that is, assets you own, as opposed to money you earn):
The SSA doesn’t count as part of your resources your car, insurance policies worth less than $1,500, and burial plots you own. If your resources total $2,000 or less ($3,000 for a couple), you may be eligible for SSI.
After the Social Security Administration has calculated your countable income, excluding the various things listed in the preceding section, it subtracts this number from the benefit amount (currently $733 for individuals).
Let’s take a for instance: John is sixty-three and suffers from diabetes, which makes him no longer able to work at his lifelong job. His Social Security benefit is $400 per month. This counts as income, but the SSA deducts the first $20 of it: $400 – $20 = $380. Now the SSA subtracts $380 from the current SSI benefit: $733 – $380 = $353. John is eligible to receive a monthly SSI benefit of $353. By applying for and receiving SSI benefits, he’s come close to doubling his monthly income.
Now let’s look at a slightly more complicated example. Emily, sixty-four, is still working part-time but suffers from a disability. Her monthly wage is $317. She applies for SSI benefits. First the SSA subtracts $20 from her wages, since they count it as income: $317 – $20 = $297. Next, the agency subtracts the first $65 of her earned wages: $297 – $65 = $232. Finally, since $232 is more than 65, Emily’s countable income is divided in half: $232 ÷ 2 = $116, so $232 – $116 = $116. The SSA now subtracts that from the current benefit amount for individuals: $733 – $116 = $617. This means Emily will receive an SSI monthly benefit of $617. That’s in addition to any money she’s receiving from Social Security, if she’s already put in for benefits.
As a further qualification for SSI, you must live in the United States or the Northern Mariana Islands. You must also be a U.S. citizen.
In a 2006 book, Disability Rights and the American Social Safety Net, Jennifer L. Erkulwater argues that one of the main drivers of the increase in disability claims is mental illness, particularly among the young. “Between 1989 and 2001, the proportion of children with a mental impairment grew more than fivefold, increasing from only 6 percent of all children receiving SSI to 32 percent. Today, children and adults with mental disorders outnumber beneficiaries in all other diagnostic categories.”
The process for applying for SSI is the same as that for applying for disability benefits. The list of materials you should bring is similar. You will need:
If you’re eligible for SSI, you may get additional financial assistance through the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps. You can sign up for this program at a SSA office, or you can go online at www.fns.usda.gov/snap.