On April 19, 1995, at 9:02 a.m. CST, our nation experienced a profound tragedy in the terrorist bomb attack on the Alfred P. Murrah Federal Office Building in Oklahoma City.
Sixteen SSA employees and 24 visitors in the Social Security office there were among the 168 people who lost their lives in the bombing.
Events in Boston earlier this week add to the somber memory of this anniversary.
From the history section of the Social Security website:
April 6, 2011 Entertainment icons George Takei and Patty Duke teamed up to tell Americans to Boldly Go to www.socialsecurity.gov to apply for retirement, disability, Medicare, and so much more. The two celebrities joined forces in a new campaign to help the Social Security Administration promote its online services as an easy and secure way for people to do business with the agency.
Linked from the Retirement section of the Social Security website, watch when Patty Duke applied online for Social Security retirement … in her pajamas.
View many of their public service announcements for television at http://www.socialsecurity.gov/pressoffice/psa-video.html.
Today is the anniversary of a major event in Social Security history.
On January 31, 1940, the first monthly Social Security retirement check was issued to Ida May Fuller of Ludlow, Vermont, in the amount of $22.54. She was the first beneficiary of recurring monthly Social Security payments. Here is a 1950 photo of her.
Born in 1874, Ida May Fuller worked as a school teacher before becoming a legal secretary in 1905. Never married, she worked for about three years under the Social Security program before retiring in 1939. The accumulated Social Security taxes on her salary during those three years was a total of $24.75.
She started collecting benefits in January 1940 at age 65 and lived to be 100 years old, dying in 1975 with a secure place in Social Security history. During her lifetime she collected a total of $22,888.92 in Social Security benefits.
When Ida May Fuller received her first $22.54 benefit payment it would be the same monthly amount received for the next 10 years. For her, and the millions of other Social Security beneficiaries like her, the amount of that first benefit check was the amount they could expect to receive for life. It was not until the 1950 Amendments that Congress first legislated an increase in benefits. Automatic cost-of-living adjustments (COLAs) did not begin until 1975.
Final decisions on early applications for Social Security benefits were completed in Washington D.C. with benefit amounts then certified for payment by the Treasury Department. Claims were grouped in batches of 1,000 and a Certification List for each batch was sent to Treasury.
Miss Fuller’s claim was the first one on the first Certification List. As a result, the first Social Security monthly benefit, check number 00-000-001 dated January 31, 1940 was issued to Ida May Fuller, establishing her place in Social Security history.
More about the history of Social Security is at http://www.socialsecurity.gov/history/.
As we rapidly approach the start of a new year, I thought this item from the past would provide a smile.
December 28, 1998: President Clinton announced that SSA’s computer systems were now fully Y2K compliant.
This made the Social Security Administration the first major federal agency to complete work on the Year 2000 computer problem. About 700 programmers worked on the project, starting in 1989. The year 2000 project’s estimated cost was $42 million.
Thank you for your continued interest in these posts.
Happy New Year
The upcoming 1.7 percent cost-of-living adjustment (COLA) begins with benefits that more than 56 million Social Security beneficiaries receive in January 2013. Increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries will begin on December 31, 2012.
COLA increases are now such an accepted feature of Social Security that it is difficult to imagine a time when there were no COLAs.
Payment of monthly Social Security benefits began in January 1940. At that time, and for many years afterward, cost-of-living adjustments did not exist. A person’s benefit amount when starting Social Security was the amount they could expect to receive for life.
It was not until the 1950 Amendments that Congress first legislated an increase in benefits. Beneficiaries at the time had their payments recomputed effective for September 1950 and increases appeared for the first time in the October 1950 checks. A second increase was legislated for September 1952. Together these two increases almost doubled the value of Social Security benefits for existing beneficiaries. From that point on, benefits were increased only when Congress enacted special legislation for that purpose.
Legislation In 1972 changed this by providing, beginning in 1975, for automatic cost-of-living adjustments (COLAs) based on the annual increase in consumer prices.
Last week I mentioned that the first Social Security number (SSN) card was issued, sometime in mid-November 1936, to someone whose identity and SSN are unknown.
In theory, the first card should have been issued on November 24, 1936, but the best that the Social Security Administration can say with certainty is that the first Social Security number was issued sometime in mid-November 1936. On whatever day the first card was issued, hundreds of thousands of Social Security numbers were probably issued on that same day.
Even though when the first Social Security number was issued is unknown, there is a first official Social Security number, selected at random on December 1, 1936. As Social Security numbers were being locally assigned through the U.S. Postal Service, records were sent to Social Security headquarters in Baltimore, Maryland, where the SSN master file would be kept.
According to the history section of the Social Security website, as part of the master file preparation in Baltimore, the Social Security number records were grouped in blocks of 1,000. The top record of the first stack became the official first Social Security number record.
With that, the first Social Security number record, if not the actual first SSN, was established for Mr. John Sweeney, Jr., age 23 of New York State. To learn the family business, Mr. Sweeney was working as a shipping clerk for his father, a factory owner, at the time. He died before reaching retirement age, but his widow received Social Security survivors benefits through his record.
Mr. Sweeney held the first official SSN record, not the lowest Social Security number. The lowest SSN, 001-01-0001, went to a woman in New Hampshire.
Today when applications for Social Security benefits are processed, SSA representatives electronically compare the personal information provided on your original application for a Social Security number (SSN), as well as name or other changes, with information on your application for benefits.
Applications for Social Security benefits were still manually processed when my responsibilities included adjudicating them. Electronic comparison of original SSN to application information was not an option. Instead, when a person applied for Social Security benefits, the local SSA representative was mailed the actual, original paper, SSN application and related changes for comparison with the benefit application.
Given that my first clients were born in the years on either side of 1910, it is likely that I have held many of the very first Social Security number applications from November 1936. For me, that is rather neat.
Learn Social Security history at http://www.socialsecurity.gov/history/.
When was the first Social Security number (SSN) issued? No one knows. The first Social Security number could have been issued 76 years ago today.
The original Social Security Board did not yet have any field offices when, in late 1936, it contracted with the U.S. Postal Service to distribute and assign the first batch of Social Security numbers (SSN’s). The Social Security Board also enlisted the Treasury Department to assure employer cooperation.
The SSN registration process was largely directed by local postmasters. The first task for the postmen was to make up lists of employers on their routes, an effort resulting in a list of 2.4 million employers. Starting on November 16, 1936, the procedure was for post offices to ask employers how many employees they had at their place of business.
Post offices then supplied employers an application for Social Security number (SS-5) form for each employee. Completed SS-5 forms were returned to the post office for assignment of a Social Security number and typing of the SSN card in one of approximately 1,074 post offices designated as typing center sites.
Once the Social Security number was assigned and the card typed, the local letter carrier returned the card to the place of business as a piece of regular mail. A record of the SSN assignment was sent to Social Security headquarters in Baltimore, Maryland, where the SSN master file would be kept.
The first Social Security number card was issued, sometime in mid-November 1936, somewhere in one of the 1,074 post offices designated as a typing center, to someone whose identity and SSN are unknown.
In theory, the first card should have been issued on November 24, but there have been reports of cards showing earlier dates. About 45,000 local post offices, including the typing centers, were involved in this effort. If all correctly followed procedures, no cards could have been issued before November 16, and none should have been issued before November 24.
The best that the Social Security Administration can say with certainty is that the first Social Security number was issued sometime in mid-November 1936. On whatever day the first card was issued, hundreds of thousands of Social Security numbers were probably issued on that same day. Post Office efforts and a Social Security Board publicity campaign resulted in over 22 million completed applications as of December 22, 1936, 28 days after the initial distribution of employee applications. During the first 4 months of the registration campaign, nearly 26 million SSNs were assigned.
Directed to “Employees of Industrial and Business Establishments,” see some of the 1936 publicity here:
Even though when the first Social Security number was issued is unknown, there is a first offical Social Security number. More about it another time.
Learn the history of Social Security at http://www.socialsecurity.gov/history/.
Forty years ago today, on October 30, 1972, President Nixon signed the Social Security Amendments of 1972 (Public Law 92-603). Among other provisions, the law established a new Federal income program for the needy aged, blind and disabled. This was the Supplemental Security Income program.
Prior to the enactment of Supplemental Security Income (SSI), many State and local programs for needy aged, blind or disabled people received substantial Federal funding. These programs had become very complex and inconsistent, with as many as 1,350 administrative agencies involved and payments varying more than 300% from State to State. With enactment, SSI provided a uniform federal income floor, and optional state programs would supplement that floor.
The Social Security Administration was chosen to administer the new Supplemental Security Income (SSI) program. The first SSI payments went out in January 1974. I was already a SSA representative then and clearly remember the strenuous efforts involved during the start up. Roughly, three million people were converted from different State programs to SSI.
Nationally, as of December 2011, approximately 8,112,773 people received a monthly SSI payment, for all categories of eligibility. Of this number, 2,716,259 people were also eligible for a Social Security retirement, survivors or disability benefit. SSI recipient numbers by individual state and county for this period are at http://www.ssa.gov/policy/docs/statcomps/ssi_sc/2011/index.html. Here are links for North Dakota, Minnesota, and South Dakota information.
As mentioned in previous posts, Supplemental Security Income is very different from Social Security. Two primary differences are that SSI eligibility is based on need, not work as is Social Security, and that SSI is funded by general revenues, not Social Security payroll taxes.
Supplemental Security Income makes payments to people with low income and limited resources who are age 65 or older or are blind or have a disability, including children. Living arrangements are also a factor in determining the benefit amount.
In 2012, the standard, monthly federal amount is $698 for an individual and $1,048 for an eligible couple. In 2013 this will increase to a monthly maximum of $710 for an individual and $1,066 for an eligible couple. Other income, including from Social Security benefits, reduces these amounts. Different types of income reduce the standard amount in different ways. Some states add state funds to the federal amount.
Supplemental Security Income (SSI) information is at http://www.socialsecurity.gov/pgm/ssi.htm and in the publication “Supplemental Security Income (publication # 05-11000. To learn more or apply, contact Social Security. Call the Social Security national toll-free number, 1-800-772-1213 (TTY 1-800-325-0778) or contact your local office.
This 1991 poster was used to publicize SSI:
Many of the questions I receive reflect misunderstanding about Social Security benefits (retirement, survivors and disability) compared to Supplemental Security Income (SSI). While understandable since people apply for both through a Social Security office and the names are similar, they are separate and different programs. When President Nixon signed SSI into law in 1972, administration of the new program could have been assigned to any of several agencies. It was assigned to the Social Security Administration, perhaps because the agency already had so much beneficiary information and an established payment delivery system.
Stemming from the following question, today I will compare these two very different programs. Within Social Security offices, representatives usually have a degree of specialization within one or the other program.
Q: Is Supplemental Security Income (SSI) supposed to be a supplement to Social Security benefits?
A: SSI is a Federal program to help people who have low income and few resources and are age 65 or older, or any age if blind or disabled. An individual or couple might receive both Social Security and Supplemental Security Income but, for those eligible, SSI supplements other income no matter the source.
First, here are some ways that Social Security and SSI are similar: they both involve monthly payments, both use the same definition of disability for adults and the Social Security Administration administers both programs.
Differences will take a bit longer. Here are some of the main ones.
Basic eligibility: All Social Security retirement, survivors and disability benefits are based on a person’s work record. No work connection means no SSA benefits. It is possible that a person receiving benefits did not work under Social Security but they would be receiving based on the work record of someone. An easy example is children receiving benefits on the work record of a deceased parent. As long as the parent had enough work, the children could receive survivor benefits. If the parent was not insured, no benefit would be payable. Social Security benefits have a work connection. / Supplemental Security Income is based on need. It does not have a work requirement.
Funding: Social Security benefits are primarily funded by payroll taxes paid by employers, employees and the self-employed. Other funding is from income taxes that some people pay on a portion of their Social Security benefits and interest to the two SSA trust funds. / Supplemental Security Income is paid from general funds of the U.S. Treasury. There are no SSI trust funds. SSI costs are not paid from any Social Security funds.
Family benefits: Social Security retirement, survivors and disability all have the potential for family benefits including to children, spouses, ex-spouses and others depending on the situation. / Supplemental Security Income does not have family benefits of any kind. Only the eligible adult or child receives benefits. More than one family member can receive SSI, but only if each person is individually eligible. For example, both members of a couple might receive SSI if both are at least age 65, both are disabled, or one is at least age 65 and the other disabled. Income and resource requirements for the individual or couple would have to be met.
Amount: Social Security benefit amounts are based on the workers career earnings. Age when starting benefits is also a factor depending on the specific SSA benefit involved. SSA retirement amounts are based on the workers best 35 years of work and age when starting benefits. Amounts do not routinely fluctuate although they can change, for example with a cost-of-living increase or if higher earnings replace those previously used. The maximum 2012 monthly SSA retirement amount for a worker retiring at full retirement age is $2,513. / Supplemental Security Income amounts are based on the person’s income, resources and where they live. Other income reduces SSI amounts. Amounts change depending on living arrangements. For example, moving from being alone in your own home to sharing a home with others can change a SSI amount. The maximum 2012 monthly SSI amount is $698 for an individual and $1,048 if both members of a couple are eligible.
Medicare: Social Security entitlement brings Medicare coverage at age 65 or after two years on SSA disability. / Supplemental Security Income does not bring any Medicare coverage. People receiving SSI might have Medicare coverage through another program such as Social Security but will not have Medicare just because they receive SSI. If eligible for SSI, a person can receive health care through Medicaid (medical assistance). Depending on the state, this might be automatic when receiving SSI or a specific state decision might be required. A state decision is required for Medicaid in both North Dakota and Minnesota.
Learn about Social Security retirement, survivors and disability and Supplemental Security Income at www.socialsecurity.gov.
As background to the August 14th anniversary of the Social Security Act, today I am highlighting a radio address to the nation by Frances Perkins, Secretary of Labor for President Roosevelt.
On February 25, 1935, in one of the earliest explanations of what would become the Social Security program, Secretary of Labor Frances Perkins went on a national radio broadcast to explain the Administration’s proposals to the American people. Excerpts follow. While each paragraph is complete, this is not her complete broadcast. Compare her topics with those in the eventual Social Security Act of 1935 and changes to the program since then. I bolded some of her words. As you read them, remember that the Act included more programs than what we now think of as Social Security and that Social Security has changed over the years.
From her radio address:
It has taken the rapid industrialization of the last few decades, with its mass-production methods, to teach us that a man might become a victim of circumstances far beyond his control, and finally it “took a depression to dramatize for us the appalling insecurity of the great mass of the population, and to stimulate interest in social insurance in the United States.” We have come to learn that the large majority of our citizens must have protection against the loss of income due to unemployment, old age, death of the breadwinners and disabling accident and illness, not only on humanitarian grounds, but in the interest of our National welfare. If we are to maintain a healthy economy and thriving production, we need to maintain the standard of living of the lower income groups in our population who constitute 90 per cent of our purchasing power.
Our program deals with safeguards against unemployment, with old-age security, with maternal aid and aid to crippled and dependent children and public health services. Another major subject–health insurance–is dealt with briefly in the report of the Committee on Economic Security, but without any definite recommendations. Fortunate in having secured the cooperation of the medical and other professions directly concerned, the committee is working on a plan for health insurance which will be reported later in the year. Our present program calls for the extension of existing public health services to meet conditions accentuated by the depression. Similarly, the provisions for maternal aid and aid to dependent and crippled children are not new departures, but rather the extension and amplification of safeguards which for a number of years have been a recognized part of public responsibility.
For the 80 per cent of our industrial workers who are employed, we propose a system of unemployment compensation, or insurance, as it is usually called. In our concern for the unemployed, we must not overlook this much larger group who also need protection.
I come now to the other major phase of our program. The plan for providing against need and dependency in old age is divided into three separate and distinct parts. We advocate, first, free Federally-aided pensions for those now old and in need; second, a system of compulsory contributory old-age insurance for workers in the lower income brackets, and third, a voluntary system of low-cost annuities purchasable by those who do not come under the compulsory system.
For those now young or even middle-aged, a system of compulsory old-age insurance will enable them to build up, with matching contributions from their employers, an annuity from which they can draw as a right upon reaching old age. These workers will be able to care for themselves in their old age, not merely on a subsistence basis, which is all that gratuitous pensions have anywhere provided, but with a modest comfort and security. Such a system will greatly lessen the hazards of old age to the many workers who could not, unaided, provide for themselves and would greatly lessen the enormous burden of caring for the aged of future generations from public funds. The voluntary system of old-age annuities is designed to cover the same income groups as does the compulsory system, but will afford those who for many reasons cannot be included in a compulsory system an opportunity to provide for themselves. (Note: not all employment was, or is today, covered by Social Security)
Today’s information is from the history section of the Social Security website.
