The Social Security Administration`s Budget Request for Fiscal Year 2006

SOCIAL SECURITY ADMINISTRATION

 

 

 

THE FISCAL YEAR 2006 BUDGET

PRESS RELEASE

I.	SUMMARY
II.	TRUST FUND PROGRAMS – Old-Age, Survivors and Disability Insurance
III.	GENERAL FUND PROGRAMS:
	Supplemental Security Income
	Special Benefits for Certain World War II Veterans
IV.	LIMITATION ON ADMINISTRATIVE EXPENSES
V.	OFFICE OF THE INSPECTOR GENERAL

 

 

At $586 billion in fiscal year (FY) 2006, total outlays for all SSA-administered programs are projected to increase by nearly $25 billion, or 4.4 percent, from the FY 2005 estimate. This increase is attributable primarily to annual cost-of-living adjustments of 2.7 percent in January 2005 and an estimated 2.3 percent in January 2006, for both the OASDI and SSI programs. Additionally, the number of individuals receiving benefits from the OASDI and SSI programs continues to increase.

The President's budget proposes administrative resources of $9.523 billion, an increase of 7.5 percent, which will allow SSA in FY 2006 to:

• Pay benefits to more than 53 million people every month;
• Process more than 8 million claims for benefits;
• Take applications for and issue 17 million new and replacement Social Security cards after obtaining and evaluating evidence of identity;
• Process 264 million earnings items to maintain workers' life-long earnings records;
• Handle approximately 58 million transactions through SSA's 800-number; and
• Issue 140 million Social Security Statements to advise workers how much they have contributed to Social Security and provide estimates of future benefits.

SSA also plays a major role in the new Medicare prescription drug program, withholding the premiums for this program from beneficiaries' monthly Social Security checks and determining eligibility of low-income individuals for drug benefit subsidies. Further, SSA continues to provide service delivery support to the Medicare, Medicaid, Railroad Retirement, and Food Stamp programs.

The table below provides information on Social Security beneficiaries, benefit payments and the payroll tax.

Legislative Proposal Related to OASDI

The Administration has a proposal to require full-time attendance at an educational institution as a condition of entitlement for children's benefits beginning at age 16. This proposal recognizes the importance of continuing education and changing the policy to age 16 will further encourage eligible children to remain in school.

• Extend the pre-effectuation review provisions already in place for Social Security disability claims to SSI adult disability and blindness cases. By providing a review of SSI allowances, this provision, like its Title II counterpart, improves the accuracy of initial decisions. Pre effectuation review yields significant ongoing program savings, well in excess of the resources required to conduct the reviews.
  
  
• The President's budget would also allow refugees and asylees to receive SSI for 8 years after entry into the country. Currently, refugees and asylees who have not become citizens can only receive SSI for 7 years after entry. The proposal recognizes that some individuals have been unable to obtain citizenship within the 7-year time limit. The policy would continue through 2008.
  
  
• Additional simplification proposals affecting SSI eligible children would eliminate the requirement for SSI dedicated accounts for children residing with natural or adoptive parents and count most military compensation as earned income.

Special Benefits for Certain World War II Veterans

This program funds monthly benefits for certain veterans of World War II who reside outside of the United States, and the administrative costs of paying the benefits. The program applies to veterans who served in the active military, naval or air services of the United States, including Filipino veterans who served in the organized military forces of the Philippines while those forces were in the service of the U.S. Armed Forces, and who were eligible for SSI as of December 1999. Veterans who meet these and other requirements may be entitled to receive a special benefit depending on their incomes for each month they subsequently reside outside the United States. (These veterans are not eligible for SSI since individuals outside of the United States are generally not eligible for SSI.) Special Benefits are paid only to the veteran.

Payments began in May 2000 to veterans who took advantage of the new program and returned to their homeland. California has chosen to supplement the Federal payment, which is administered by SSA for the State.

The President's budget request provides adequate resources for SSA to:

• Implement an electronic disability claims process;
• Continue to ensure the integrity of SSA programs;
• Help administer the Medicare prescription drug plan;
• Continue to increase SSA's overall productivity; and
• Continue progress in achieving the Commissioner's service delivery goals in the face of growing workloads.

Under the Medicare Modernization Act, SSA will administer the new Medicare prescription drug program by identifying low-income beneficiaries who might be eligible for a drug benefit subsidy, making low-income subsidy determinations, and withholding premiums appropriate to beneficiaries' selected plans. SSA will also calculate Part B premiums for high-income beneficiaries. In 2003, Congress provided funding for SSA's initial implementation of the Medicare Modernization Act in FY 2004 and FY 2005. However, our responsibilities extend into FY 2006 and beyond. This budget request includes resources to meet our ongoing obligations.

The Service Delivery Plan provides a context for decisions on needed improvements in service and stewardship to meet our goals. One of SSA's highest priorities is to improve service to the public in the disability programs from the initial claim through the final administrative appeal. In January 2004, SSA began implementation of eDib, a major new initiative which replaces its paper-driven disability claims process with a more efficient electronic business process through the use of an electronic disability folder. SSA has implemented the electronic disability process in 30 States and Puerto Rico, and plans to complete implementation in FY 2006. This initiative will reduce processing times significantly over the long term and reduce costs related to locating, mailing, and storing paper files.

In FY 2006, SSA will keep up with processing initial disability claims even while implementing eDib. SSA will address hearing backlogs by continuing to provide resources and continuing to improve productivity resulting in more cases processed. Simultaneously, SSA is developing an improved process to significantly reduce processing times and improve decisional accuracy for initial disability claims and hearings. Commissioner Barnhart outlined her vision of a new approach for improving the disability process in September 2003 and continues her consultation with those involved at every stage of the process, both within and outside of SSA.

SSA's mission demands a balance between commitment to service and the obligation to be good stewards of the programs it administers. This budget supports SSA's efforts to improve payment accuracy through a broad range of activities designed to prevent and detect improper payments. The President's budget proposes dedicated administrative funding to ensure continuation of cost-effective continuing disability reviews. SSA has generated government-wide savings of approximately $10 for each $1 spent on these activities.

SSA's budget supports the PMA by emphasizing the President's government-wide management reforms as well as his program management reforms. SSA has achieved a green status, the highest rating possible, on four out of five PMA initiatives. SSA's budget and plans also reflect assessments using the Program Assessment Rating Tool recommendations to achieve greater results and to address performance, management and efficiency challenges.

The Social Security Administration faces great challenges: giving the American people the service they expect and deserve; improving program integrity through sound fiscal stewardship; and maintaining the quality staff SSA needs to meet these goals. With adequate planning and resources, SSA can, and will, meet these challenges.

The SSN has become a vital aspect of American life and a link to homeland security. Its reliability is a key element in protecting against fraud and in protecting lives at home and abroad. In FY 2006, to further support the Administration's homeland security initiatives, OIG will continue to fund the SSN Integrity Protection Team. This integrated team model will address issues of SSN misuse and provide assistance to SSA, Congress, the public, and other law enforcement agencies while maintaining a primary focus on protecting SSA's program and trust fund integrity.