SOCIAL SECURITY ADMINISTRATION

Federal Funds

For payment to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, as provided under sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act, [$20,404,000] $20,402,000. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

This general fund appropriation reimburses the Social Security trust funds annually for 1) Special Payments for Certain Uninsured Persons, 2) pension reform, and 3) interest on unnegotiated checks. Amounts appropriated to this account as permanent indefinite authority include receipts from Federal income taxation of Social Security benefits. This account also includes transfers from the general fund equal to the reduction in revenues resulting from the 2011 and 2012 payroll tax holidays.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Please see the narrative in the Limitation on Administrative Expenses account for a description of the Federal Wage Reporting, workers' compensation, and WEP/GPO proposals reflected here.

The President's Budget includes a proposal to extend the temporary 2.0-percentage point reduction in the employee Social Security payroll tax rate to apply to the first $110,100 of taxable wages. A similar reduction would apply to the employee portion of Tier 1 Railroad Retirement payroll taxes. For self-employed individuals, the Social Security payroll tax rate would be reduced from 12.4 percent to 10.4 percent of the first $110,100 of net taxable self-employment income received. The Social Security Trust Fund would be held harmless and receive transfers from the General Fund of the Treasury equal to any reduction in payroll taxes attributable to these reductions in payroll tax rates.

Program and Financing (in millions of dollars)

Public Law 110–275 requires SSA to provide Medicare Part D Low-Income Subsidy applicants with material about Medicare Savings Programs assistance, including information about how to contact the State health insurance assistance program. In addition, SSA transmits Low-Income Subsidy application data to the States. As of FY 2011, new funding for this program comes from a reimbursable agreement with the Centers for Medicare and Medicaid Services and this funding is reflected within the Limitation on Administrative Expenses account.

Program and Financing (in millions of dollars)

Public Law 111–3 provides States the option to verify a declaration of citizenship or nationality for the purposes of establishing eligibility for Medicaid or the Children's Health Insurance Program through a comparison of the information provided by the individual with information in SSA records.

Employment Summary

For carrying out titles XI and XVI of the Social Security Act, section 401 of Public Law 92–603, section 212 of Public Law 93–66, as amended, and section 405 of Public Law 95–216, including payment to the Social Security trust funds for administrative expenses incurred pursuant to section 201(g)(1) of the Social Security Act, [$37,582,991,000] $40,043,000,000, to remain available until expended: Provided, That any portion of the funds provided to a State in the current fiscal year and not obligated by the State during that year shall be returned to the Treasury: Provided further, That not more than [$8,000,000] $48,000,000 shall be available for research and demonstrations under sections 1110, 1115, and 1144 of the Social Security Act and remain available through September 30, [2013] 2014.

For making, after June 15 of the current fiscal year, benefit payments to individuals under title XVI of the Social Security Act, for unanticipated costs incurred for the current fiscal year, such sums as may be necessary.

For making benefit payments under title XVI of the Social Security Act for the first quarter of fiscal year [2013] 2014, [$18,200,000,000] $19,300,000,000, to remain available until expended. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

Title XVI of the Social Security Act established a Supplemental Security Income (SSI) program to provide monthly cash benefits as a federally guaranteed minimum income for low-income individuals who are either aged, blind, or disabled. A portion of these funds may be used to fund evaluation and incentive payments for the Promoting Readiness of Minors in SSI (PROMISE) pilot, which would improve the outcomes of children receiving SSI and their families.

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)

The Budget includes a proposal to allow refugees and asylees to receive Supplemental Security Income (SSI) benefits an additional two years, in 2013 and 2014, for a total maximum of nine years of eligibility. The time-limited SSI eligibility period was temporarily extended to 9 years for FY 2009–2011. However, effective October 2011, the SSI eligibility period for refugees and other humanitarian immigrants reverted to 7 years. For many participants, extended SSI eligibility will result in extended Medicaid eligibility and reduced SNAP benefit receipt.

The Budget also includes a proposal to conform the treatment of state and local government Earned Income Tax Credits (EITC) and Child Tax Credits (CTC) to be consistent with the treatment of the federal EITC and CTC for purposes of determining eligibility for SSI. Currently, the federal EITC and CTC credits are excluded from the SSI income and resource tests. However, state and local versions of these credits are not excluded, resulting in the reduction or loss of SSI benefits for those receiving the credits.

Program and Financing (in millions of dollars)

Public Law 106–169 established a benefit program for certain individuals who are at least 65 years old; were in the United States military forces, including veterans of the Filipino Army and Filipino Scouts, during World War II; and who were eligible for SSI for the month of December 1999. To receive this benefit, these individuals must reside outside the United States and meet other requirements for eligibility.

Object Classification (in millions of dollars)

For expenses necessary for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, [$28,942,000] $30,000,000, together with not to exceed [$73,535,000] $77,600,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

In addition, an amount not to exceed 3 percent of the total provided in this appropriation may be transferred from the "Limitation on Administrative Expenses'', Social Security Administration, to be merged with this account, to be available for the time and purposes for which this account is available: Provided, That notice of such transfers shall be transmitted promptly to the Committees on Appropriations of the House of Representatives and the Senate at least 15 days in advance of any transfer. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012.)

Program and Financing (in millions of dollars)

The Office of the Inspector General provides agency-wide audit and investigative functions to help find and correct operational and administrative deficiencies that create conditions for existing or potential instances of fraud, waste, and mismanagement.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

Public Law 111–5 provided for eligible Social Security and Supplemental Security Income beneficiaries to receive a one-time economic recovery payment of $250. These funds represent activity from FY 2011, as the payments ended on December 31, 2010.

Program and Financing (in millions of dollars)

Public Law 111–5 provided funding to process disability and retirement work, to replace the National Computer Center, and to administer $250 economic recovery payments to eligible Social Security and Supplemental Security Income beneficiaries. The funds for administering the $250 economic recovery payments were obligated by the end of the first quarter of FY 2011, as payments ended on December 31, 2010. All 2012 obligations are for the replacement of the National Computer Center.

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

The Social Security Administration (SSA) collects a fee from States for costs related to administering SSI State supplementary payments on behalf of States. A portion of these fees is used to fund some of SSA's administrative costs.

Trust Funds

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

The Old-Age and Survivors Insurance (OASI) program provides monthly cash benefits to retired workers and their dependents, and to survivors of deceased workers.

OASI Cash Outgo Detail (in millions of dollars)

Status of Funds (in millions of dollars)

Object Classification (in millions of dollars)

The President's Budget includes a proposal to extend the temporary 2.0-percentage point reduction in the employee payroll tax rate to apply to the first $110,100 of taxable wages. A similar reduction would apply to the employee portion of the Tier 1 Railroad Retirement payroll taxes. For self-employed individuals, the Social Security payroll tax rate would be reduced from 12.4 percent to 10.4 percent of the first $110,100 of net taxable self-employment income received. The Social Security Trust Fund would be held harmless, and receive transfers from the General Fund of the Treasury equal to any reduction in payroll taxes attributable to these reductions in payroll tax rates.

The Budget includes a proposal to terminate benefits for a stepchild in the same month as benefits are terminated for a parent upon the divorce of the parent. This change would correct a drafting error in the original legislation in order to conform the treatment of stepchild benefits to those of the parent's benefits.

Special and Trust Fund Receipts (in millions of dollars)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

The Disability Insurance program provides monthly cash benefits for disabled workers who have not yet attained their normal retirement age, and for their dependents.

Disability Insurance Cash Outgo Detail (in millions of dollars)

Status of Funds (in millions of dollars)

Object Classification (in millions of dollars)

Program and Financing (in millions of dollars)

Program and Financing (in millions of dollars)

The Budget includes a legislative proposal to re-authorize Section 234 disability demonstration authority for five years. The authority would fund various projects, including the pilot of the Work Incentives Simplification Proposal, which would eliminate work activity as a basis for determining disability cessation. We intend to work with Congress on a fully offset package.

The Budget also includes a proposal to terminate benefits for a stepchild in the same month as benefits are terminated for a parent upon the divorce of the parent. This change would correct a drafting error in the original legislation in order to conform the treatment of stepchild benefits to those of the parent's benefits.

For necessary expenses, including the hire of two passenger motor vehicles, and not to exceed $20,000 for official reception and representation expenses, not more than [$10,555,494,000] $10,565,000,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to in such section: Provided, That not less than $2,150,000 shall be for the Social Security Advisory Board: Provided further, That unobligated balances of funds provided under this paragraph at the end of fiscal year [2012] 2013 not needed for fiscal year [2012] 2013 shall remain available until expended to invest in the Social Security Administration information technology and telecommunications hardware and software infrastructure, including related equipment and non-payroll administrative expenses associated solely with this information technology and telecommunications infrastructure: Provided further, That the Commissioner of Social Security shall notify the Committees on Appropriations of the House of Representatives and the Senate prior to making unobligated balances available under the authority in the previous proviso: Provided further, That reimbursement to the trust funds under this heading for expenditures for official time for employees of the Social Security Administration pursuant to 5 U.S.C. 7131, and for facilities or support services for labor organizations pursuant to policies, regulations, or procedures referred to in section 7135(b) of such title shall be made by the Secretary of the Treasury, with interest, from amounts in the general fund not otherwise appropriated, as soon as possible after such expenditures are made.

In addition, for the cost associated with continuing disability reviews under titles II and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, [$274,000,000] $1,024,000,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to therein: Provided, That, of such amount, $273,000,000 is provided to meet the terms of section 251(b)(2)(B)(ii)(III) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, and $751,000,000 is additional new budget authority specified for purposes of section 251(b)(2)(B) of such Act: Provided further, That the Commissioner shall provide to the Congress (at the conclusion of the fiscal year) a report on the obligation and expenditure of these funds, similar to the reports that were required by section 103(d)(2) of Public Law 104–121 for fiscal years 1996 through 2002.

In addition, [$161,000,000] $170,000,000 to be derived from administration fees in excess of $5.00 per supplementary payment collected pursuant to section 1616(d) of the Social Security Act or section 212(b)(3) of Public Law 93–66, which shall remain available until expended. To the extent that the amounts collected pursuant to such sections in fiscal year [2012] 2013 exceed [$161,000,000] $170,000,000, the amounts shall be available in fiscal year [2013] 2014 only to the extent provided in advance in appropriations Acts.

In addition, up to $1,000,000 to be derived from fees collected pursuant to section 303(c) of the Social Security Protection Act, which shall remain available until expended. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012.)

[For an additional amount for continuing disability reviews under titles II and XVI of the Social Security Act and for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, not more than $483,484,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, from any one or all of the trust funds referred to therein: Provided, That such amount is additional new budget authority specified for purposes of subsection 251(b)(2)(B) of the Balanced Budget and Emergency Deficit Control Act of 1985, and shall be treated for such purposes as being included under this heading in the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, or any continuing appropriation Act, for fiscal year 2012.] (Disaster Relief Appropriations Act, 2012.)

Program and Financing (in millions of dollars)

Summary of Budget Authority and Outlays (in millions of dollars)

The Limitation on Administrative Expenses account provides resources for Social Security to administer the Old-Age and Survivors Insurance and Disability Insurance programs, the Supplemental Security Income program, the Special Benefits for Certain World War II Veterans program, and certain health insurance functions for the aged and disabled.

The request for additional funding for program integrity activities builds on SSA's success in reducing program costs by ensuring that only individuals still eligible for benefits continue to receive them. The agency uses Continuing Disability Reviews (CDRs) to determine whether an individual continues to qualify for Disability Insurance or the Supplemental Security Income program. For every $1 spent by SSA on a disability review, $9 is saved in erroneous payments. Redeterminations focus on an individuals eligibility for the means-tested Supplemental Security Income program. For every $1 spent by SSA on a redetermination, $6 is saved in erroneous payments.

The Balanced Budget and Emergency Deficit Control Act (BBEDCA) of 1985, as amended by the Budget Control Act of 2011, enacted adjustments to the discretionary spending limits in the Act for 2012 through 2021 for administrative program integrity activities at both the Social Security Administration and at the Department of Health and Human Services. This Budget assumes that in each year both the base level and the cap adjustments are funded at the maximum levels allowed by section 251(b)(2)(B) of BBEDCA. For the Social Security Administration, BBEDCA authorized a $751 million cap adjustment for 2013. To ensure full funding of the cost increases, this cap adjustment is permissible only if the base level for CDRs and Redeterminations is funded at $273 million. With these funds, SSA can conduct at least 592,000 CDRs and at least 2.6 million Supplemental Security Income redeterminations of eligibility in 2013. See additional discussion in the Budget Process chapter in the Analytical Perspectives volume.

Object Classification (in millions of dollars)

Employment Summary

Program and Financing (in millions of dollars)

The Budget includes four proposals that will strengthen the integrity and administration of several programs:

1. The Administration is including a request to restructure the Federal Wage Reporting process by moving from annual to quarterly wage reporting. This proposal will enhance tax administration and improve program integrity for a range of programs.

2. In addition, the Budget includes proposals to develop mechanisms for timely and accurate collection of workers' compensation and WEP/GPO data for use in payment calculations. These mechanisms will improve payment accuracy. See additional discussion in the Budget Process chapter in the Analytical Perspectives volume.

3. The Budget also includes a proposal to amend the Internal Revenue Code to lower the employer electronic wage reporting threshold from 250 to 100 employees. In 2011, the vast majority of employers this size reported electronically.

4. Finally, the Budget contains a proposal to allow SSA to certify Railroad Retirement Board (RRB) divorced spouse benefits payments electronically. As a result, all RRB benefits would be certified electronically thus saving administrative dollars.

Object Classification (in millions of dollars)

Employment Summary

(in millions of dollars)

As directed by Section 104 of Public Law 103–296, the Social Security Independence and Program Improvements Act of 1994, the Commissioner of Social Security shall prepare an annual budget for SSA, which shall be submitted by the President to the Congress without revision, together with the President's request for SSA.

The Commissioner's budget includes $12,622 million for total administrative discretionary resources in 2013. This represents $12,513 million for SSA administrative expenses and $109 million for the Office of the Inspector General.