Other Free Encyclopedias » Medicine Encyclopedia » Aging Healthy - Part 4 » Supplemental Security Income - Early Assistance Programs, Creation Of Ssi, Administration And Funding, Ssi Federal Benefits And Poverty

Supplemental Security Income - Administration And Funding

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The Congress chose the Social Security Administration (SSA) to administer SSI. SSA had a long-standing reputation for dealing with the public in a fair and humane way, yet with scrupulous regard for the requirements of the law. In addition, SSI would be able to take advantage of SSA’s nationwide network of offices and procedures for paying benefits to large numbers of people. Another advantage of using SSA as the administering agency was that recipients could go to a Social Security rather than a welfare office to apply for benefits. It was hoped that needy elderly who refused ‘‘welfare handouts’’ would see SSI as a supplement to their Social Security, not ‘‘welfare.’’

One disadvantage of SSA as administrator was that it created the ongoing misperception that SSI takes money away from the Social Security (Old Age, Survivors, and Disability Insurance) trust funds. This is not the case. Even though SSI is administered by SSA, federal SSI benefits are administratively and financially distinct from Social Security benefits. SSI is funded from the general revenues, and benefits are based on need. SSI state supplements are paid from state general revenues and are based on state-designed criteria. Social Security benefits, on the other hand, are paid from individuals’ and employers’ FICA taxes, and are based on workers’ contributions and time in the workforce.

Supplemental Security Income - Ssi Federal Benefits And Poverty [next] [back] Supplemental Security Income - Creation Of Ssi

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