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, $11,400,000. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2016.)

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) pension reform, 2) interest on unnegotiated checks, and 3) Quinquennial Military Service Credits. Amounts appropriated to this account as permanent indefinite authority include receipts from Federal income taxation of Social Security benefits. Section 842 of the Bipartisan Budget Act, 2015 (Public Law 114–74) amends section 217(g)(2) of the Social Security Act ending trust fund/general fund Quinquennial Military Service Credit adjustments effective retroactively to 2010, the date of the last such adjustment.

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, Worker's Compensation, IT Modernization and alternative Windfall Elimination Provision and Government Pension Offset proposals reflected here.

Program and Financing (in millions of dollars)

Public Law 110–275 requires SSA to transmit identity and financial data used to determine eligibility and the amount of Extra Help (also known as low-income subsidy) from the application process to the Medicaid State agency to initiate an application for the Medicare Savings Program (MSP). As of 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 assistance for states to insure low-income children who are not eligible for Medicaid whose parent(s) or guardian(s) cannot afford private insurance.

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, [$46,305,733,000] $43,824,868,000, 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 [$101,000,000] $58,000,000 shall be available for research and demonstrations under sections 1110, 1115, and 1144 of the Social Security Act, and remain available through September 30, [2018] 2019.

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 [2017] 2018, [$14,500,000,000] $15,000,000,000, to remain available until expended. (Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2016.)

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 aged, blind, or disabled. A portion of these funds may be used to fund evaluation of research projects, such as 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 re-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 the Supplemental Security Income (SSI) program. Currently, the Federal EITC and CTC credits are excluded from 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.

The Budget will re-propose the development of a process to collect workers' compensation (WC) information in a timely manner from states and private insurers in order to correctly offset DI benefits and reduce SSI payments.

The Budget also includes a re-proposal that would increase the SSI eligibility period for refugees, asylees, and other non-citizens in refugee-like immigration statuses (i.e., humanitarian immigrants) from a maximum of seven years to a maximum of nine years during fiscal years (FY) 2017 and 2018. Individuals whose benefits expired solely due to the seven-year time period would be eligible for up to 24 months of extended benefits paid prospectively until the conclusion of the nine-year period or the end of FY 2018, if earlier.

The Budget also re-proposes to hold fraud facilitators liable for overpayments by allowing SSA to recover the overpayment from a third party if the third party was responsible for making fraudulent statements or providing false evidence that allowed the beneficiary to receive payments that should not have been paid.

The Budget will re-propose to restructure the Federal Wage Reporting process by moving from annual to quarterly wage reporting. This proposal will enhance tax administration and improve SSI program integrity.

The Budget will propose to allow SSA to conduct data matches with private commercial databases that maintain data on ownership of real property (i.e., land and buildings), which can be a countable resource for SSI purposes. The proposal would authorize SSA to use that information to automatically increase or decrease benefits accordingly, after proper notification. New beneficiaries would be required to consent to allow SSA to access these databases as a condition of benefit receipt. All other current due process and appeal rights would be preserved.

The Budget will also repropose allowing the use of Customs and Border Patrol Entry/Exit data to prevent improper payments.

The Budget will propose the usage of all collection tools to recover funds in certain scenarios, such as when someone improperly cashes a beneficiary's check.

The Budget will provide for the exclusion of SSA debts from discharge in bankruptcy proceedings.

The Budget will also propose conducting a continuing disability review when we believe that fraud or similar fault was involved in a prior continuing disability review.

The Budget includes Child Support Enforcement proposals that increase collections and expand distribution, which in turn reduce low-income families' reliance on SSI and result in savings to the program.

Finally, the Budget proposes the elimination of dedicated accounts, which are now required when past-due benefits greater than six times the maximum monthly benefit will be paid.

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, [$29,787,000] $31,000,000, together with not to exceed [$75,713,000] $81,000,000, 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, 2016.)

Program and Financing (in millions of dollars)

The Office of the Inspector General conducts independent audits, evaluations, and investigations to identify and prevent fraud, waste, abuse, and mismanagement of Social Security Administration programs and operations.

Object Classification (in millions of dollars)

Employment Summary

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 2011, as payments ended on December 31, 2010. All obligations since 2012 are for the replacement of the National Computer Center. SSA received a Presidential Waiver on December 28, 2012, allowing the agency to retain and continue to obligate funds appropriated for expenses of 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)

Summary of Budget Authority and Outlays (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)

Program and Financing (in millions of dollars)

The Budget includes a re-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.

The Budget will also re-propose using the Death Master File to prevent improper payments to deceased individuals by providing the full list to the Do Not Pay system at the Department of Treasury.

The Budget will re-propose to restructure the Federal Wage Reporting process by moving from annual to quarterly wage reporting. This proposal will enhance tax administration and improve OASI program integrity.

The Budget will also repropose using Customs and Border Patrol Entry/Exit data to prevent improper payments.

The Budget will propose the usage of all collection tools to recover funds in certain scenarios, such as when someone improperly cashes a beneficiary's check.

The Budget will provide for the exclusion of SSA debts from discharge in bankruptcy proceedings.

The Budget will also propose increasing the minimum monthly overpayment collection from $10 a month to 10% of the overpayment amount.

The Budget also reproposes to hold fraud facilitators liable for overpayments by allowing SSA to recover the overpayment from a third party if the third party was responsible for making fraudulent statements or providing false evidence that allowed the beneficiary to receive payments that should not have been paid.

Finally, the Budget includes a revised proposal to develop mechanisms for timely and accurate collection of Windfall Elimination Provision/Government Pension Offset (WEP/GPO) data from States and localities for use in payment calculations. In addition, it proposes to transition to an alternative approach which would adjust Social Security benefits based on the extent to which workers have non-covered earnings. SSA now collects data on non-covered employment and could calculate the offset without any disclosure from the individual.

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 re-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.

The Budget will also propose increasing the minimum monthly overpayment collection from $10 a month to 10% of the overpayment amount.

The Budget will re-propose the development of a process to collect workers' compensation (WC) information in a timely manner from states and private insurers in order to correctly offset DI benefits and reduce SSI payments.

The Budget also proposes to hold fraud facilitators liable for overpayments by allowing SSA to recover the overpayment from a third party if the third party was responsible for making fraudulent statements or providing false evidence that allowed the beneficiary to receive payments that should not have been paid.

The Budget will re-propose to restructure the Federal Wage Reporting process by moving from annual to quarterly wage reporting. This proposal will enhance tax administration and improve DI improper payments.

The Budget will also re-propose using Customs and Border Patrol Entry/Exit data to prevent improper payments.

The Budget will propose the usage of all collection tools to recover funds in certain scenarios, such as when someone improperly cashes a beneficiary's check.

The Budget will also propose conducting a continuing disability review when we believe that fraud or similar fault was involved in a prior continuing disability review.

The Budget will provide for the exclusion of SSA debts from discharge in bankruptcy proceedings.

Finally, the Budget includes a revised proposal to develop mechanisms for timely and accurate collection of Windfall Elimination Provision/Government Pension Offset (WEP/GPO) data from States and localities for use in payment calculations. In addition, it proposes to transition to an alternative approach which would adjust Social Security benefits based on the extent to which workers have non-covered earnings. SSA now collects data on non-covered employment and could calculate the offset without any disclosure from the individual.

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 [$10,598,945,000] $11,121,000,000 may be expended, as authorized by section 201(g)(1) of the Social Security Act, and including the cost of carrying out the Social Security Administration's obligations as required under section 1411 of Public Law 111–148, from any one or all of the trust funds referred to in such section: Provided, That not less than [$2,300,000] $2,500,000 shall be for the Social Security Advisory Board: Provided further, That, [$116,000,000 may] not less than $59,000,000 shall be used for the costs associated with conducting continuing disability reviews under titles II and XVI of the Social Security Act and conducting redeterminations of eligibility under title XVI of the Social Security Act: Provided further, That, upon a determination that part of the funds specified in the preceding proviso is not necessary for such reviews and redeterminations, such amounts may be used for other purposes provided herein: [Provided further, That the Commissioner may allocate additional funds under this paragraph above the level specified in the previous proviso for such activities but only to reconcile estimated and actual unit costs for conducting such activities and after notifying the Committees on Appropriations of the House of Representatives and the Senate at least 15 days in advance of any such reallocation: Provided further, That the acquisition of services to conduct and manage representative payee reviews shall be made using full and open competition procedures: Provided further, That, $150,000,000, to remain available until expended, shall be for necessary expenses for the renovation and modernization of the Arthur J. Altmeyer Building:] Provided further, That unobligated balances of funds provided under this paragraph at the end of fiscal year [2016] 2017 not needed for fiscal year [2016] 2017 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 costs associated with continuing disability reviews under titles II and XVI of the Social Security Act [and], including work-related continuing disability reviews to determine whether earnings derived from services demonstrate an individual's ability to engage in substantial gainful activity, for the cost associated with conducting redeterminations of eligibility under title XVI of the Social Security Act, for the cost of co-operative disability investigation units, and for the cost associated with the prosecution of fraud in the programs and operations of the Social Security Administration by Special Assistant United States Attorneys, [$1,426,000,000] $1,819,000,000 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 [$1,153,000,000] $1,546,000,000 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, [$136,000,000] $126,000,000 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 [2016] 2017 exceed [$136,000,000] $126,000,000, the amounts shall be available in fiscal year [2017] 2018 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, 2016.)

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 (OASI) and Disability Insurance (DI) programs, the Supplemental Security Income (SSI) program, the Special Benefits for Certain World War II Veterans program, and certain health insurance functions for the aged and disabled. Public Law 114–10 prohibits displaying, coding, or embedding Social Security numbers on a beneficiary's Medicare card. In order to fund implementation costs to comply with this provision, SSA will receive $98 million funded incrementally from FY 2015 to FY 2018.

The request in 2017 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 DI and/or the SSI program. SSA estimates that CDRs conducted in 2017 will yield a return on investment (ROI) of about $8 on average in net Federal program savings over 10 years per $1 budgeted for dedicated program integrity funding, including OASDI, SSI, Medicare and Medicaid program effects. Similarly, SSA estimates indicate that non-medical redeterminations conducted in 2017 will yield a ROI of about $3 on average of net Federal program savings over 10 years per $1 budgeted for dedicated program integrity funding, including SSI and Medicaid program effects.

The Balanced Budget and Emergency Deficit Control Act (BBEDCA) of 1985, as amended by the Bipartisan Budget Act of 2015 (BBA), enacted adjustments to the discretionary spending limits in the Act for 2017 through 2021 for administrative program integrity activities at the Social Security Administration. For the Social Security Administration, BBEDCA authorizes a $1,546 million cap adjustment for 2017. To ensure full funding of the cost increases, this cap adjustment is permissible only if the base level for CDRs and SSI redeterminations is funded at $273 million. The BBA also expanded the uses of cap adjustment funds to include cooperative disability investigation units, and special attorneys for fraud prosecutions. SSA will conduct 1,100,000 full medical CDRs and approximately 2.8 million SSI redeterminations of eligibility in 2017. With enactment of the new cap adjustment amounts in the BBA of 2015, full funding of the cap amounts is estimated to eliminate SSA's backlog of CDRs by the end of 2019 and prevent a new backlog from developing during the budget window. 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 eight proposals that will strengthen the integrity and administration of Social Security 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 a re-proposal to develop a mechanism for timely and accurate collection of workers' compensation data for use in payment calculations. This mechanism will improve payment accuracy. 3. The Budget also includes a re-proposal to amend the Internal Revenue Code to lower the employer electronic wage reporting threshold from 250 to 5 employees over three years. 4. The Budget will also re-propose using Customs and Border Patrol Entry/Exit data to prevent improper payments. 5. The Budget also proposes to hold fraud facilitators liable for overpayments by allowing SSA to recover the overpayment from a third party if the third party was responsible for making fraudulent statements or providing false evidence that allowed the beneficiary to receive payments that should not have been paid. 6. The Budget includes a proposal to provide a dedicated source of mandatory funding for SSA to modernize its information technology beginning in FY 2018. 7. The Budget includes a proposal to create and fully fund an Interagency Workforce Council. 8. Finally, the Budget includes a revised proposal to develop mechanisms for timely and accurate collection of Windfall Elimination Provision/Government Pension Offset (WEP/GPO) data from States and localities for use in payment calculations. In addition, it proposes to transition to an alternative approach which would adjust Social Security benefits based on the extent to which workers have non-covered earnings. SSA now collects data on non-covered employment and could calculate the offset without any disclosure from the individual.

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 $13,859 million for total administrative discretionary resources in 2017. This represents $13,610 million for SSA administrative expenses, $128 million for research, and $121 million for the Office of the Inspector General.