Social Security Administration Digitizes or Removes Signature Requirements for Many Forms

"Today, the Social Security Administration (SSA) announced progress this year to reduce customer burden by transitioning wet (physical) signature requirements to digital signatures for over 30 forms as well as removing the signature requirements altogether for 13 forms. These actions simplify application processes for people, including removing a potential reason for claims to be sent back or denied.

“Across forms that Americans use most often, we’re eliminating as many pain points as possible, from helping people sign at the click of a button to reducing the need to drive or mail something in whenever possible,” said Martin O’Malley, Commissioner of Social Security. “This means faster and more error-free processing and better service for our customers, who deserve a government that meets their needs efficiently and effectively.”

As a result of this work, SSA will now allow an electronic signature rather than a wet signature for more than 30 forms, which make up 90% of the most commonly used forms by SSA customers in local field offices. Collectively, these forms represent about 14 million signed forms submitted annually.."
Social Security Signature 

Social Security: What Would Happen If the Trust Funds Ran Out?

"Social Security’s receipts and expenditures are accounted for through two federal trust funds: the Federal Old-Age and Survivors Insurance (OASI) Trust Fund and the Federal Disability Insurance (DI) Trust Fund. Under their intermediate assumptions and under current law, the Social Security trustees project that the OASI trust fund will become depleted in 2034 and the DI trust fund will not become depleted in the 75-year projection period. Although the two funds are legally separate, they are often considered in combination. The trustees project that the combined Social Security trust funds will become depleted in 2035 (under different assumptions and projection methods, the Congressional Budget Office projected in 2021 that the combined trust funds will become insolvent in 2032). At that point, the combined trust funds would become insolvent, because incoming tax revenue would be sufficient to pay only about 80% of scheduled benefits. Insolvency does not mean that Social Security will be completely broke and unable to pay any benefits.

The 2022 intermediate assumptions reflect the trustees’ understanding of the status of the Social Security trust funds at the start of 2022. The 2022 estimates include potential effects of COVID19. Although the report includes impacts from COVID-19, the impacts are confined to the near term. The trustees acknowledge that effects from the pandemic, especially in the long term, are subject to a high level of uncertainty.

If a trust fund became depleted and current receipts were insufficient to cover current expenditures, there would be a conflict between two federal laws. Under the Social Security Act, beneficiaries would still be legally entitled to their full scheduled benefits. However, the Antideficiency Act prohibits government spending in excess of available funds, so the Social Security Administration (SSA) would not have legal authority to pay full Social Security benefits on time.

It is unclear what specific actions SSA would take if a trust fund were insolvent. After depletion, the trust funds would continue to receive tax revenues, from which a majority of scheduled benefits could be paid. One option would be to pay full benefits on a delayed schedule; another would be to make timely but reduced payments. Social Security beneficiaries would remain legally entitled to full, timely benefits and could take legal action to claim the balance of their benefits.

Maintaining financial balance after trust fund insolvency would require substantial reductions in Social Security benefits, substantial increases in tax revenues, or some combination of the two. The trustees project that following depletion of the combined funds in 2035, Congress could restore balance by immediately reducing scheduled benefits by about 20%; the required reduction would grow gradually to 26% by 2096. An alternative could be for Congress to raise the Social Security payroll tax rate from 12.4% to 15.6% following depletion in 2035, then gradually increase it to 16.7% by 2095.

Trust-fund insolvency could be avoided if expenditures were reduced or receipts increased sufficiently. The sooner adjustment to Social Security policy is undertaken, the less abrupt the changes would need to be, because they could be spread over a longer period and would therefore affect a larger number of workers and beneficiaries. As well, enacting adjustment to Social Security policy sooner, rather than later, would give workers and beneficiaries more time to plan and adjust their work and savings behavior.."
Social Security 

Social Security: Selected Findings of the 2021 Annual Report

"According to the recent report of the Board of Trustees of the Social Security Trust Funds, the program’s finances are in a similar, albeit marginally worse, position in 2021 to what they were in 2020. Under intermediate assumptions, the projected combined Trust Fund asset depletion date is 2034 (versus 2035 in last year’s report), after which the percentage of benefits payable would be 78% (versus 79% in 2020).

Social Security Overview

Social Security is a self-financing program that in 2021 covers approximately 176 million workers and provides monthly cash benefits to over 65 million beneficiaries. It is the federal government’s largest program in terms of both the number of people affected (i.e., covered workers and beneficiaries) and its finances. Social Security is composed of Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI), referred to collectively as OASDI.

The OASDI program is primarily financed (89.6% of total revenues in 2020) through a payroll tax applied to Social Security–covered earnings up to an annual limit. In addition, some beneficiaries pay income tax on a portion of their Social Security benefits, accounting for 3.6% of total revenue in 2020. From 1983 to 2009, the OASDI program collected more in tax revenues than needed to pay benefits. Excess revenues are held in interest-bearing U.S. Treasury securities, providing a third source of funding for the program. In 2020, interest revenues accounted for 6.8% of total revenues. Monthly benefits are the largest OASDI program cost, accounting for 99.0% of total costs in 2020. Administrative and other costs accounted for the remainder.

The Trust Funds

Both the OASI and DI programs use a trust fund financing mechanism. Monies credited to these trust funds are earmarked for paying Social Security benefits and certain administrative costs. Using a trust fund allows OASI and DI programs to track their respective programs’ revenues and costs and to hold any accumulated assets from years when revenues exceed costs. The OASI Trust Fund and DI Trust Fund are legally distinct entities; they are discussed here collectively as the OASDI Trust Funds, or the trust funds.

A Board of Trustees manages the trust funds. The trustees are required to report to Congress annually on the trust funds’ status and financial operations. In general, the trust funds’ solvency—the ability to pay full benefits scheduled under current law on a timely basis—indicates their status. If assets held in the trust funds were to be depleted, the OASDI program could pay out in benefits only what it receives in revenues. Table 1 shows the trust funds’ key dates under the trustees’ intermediate assumptions, which reflect their best estimate of future economic, demographic, and program-specific factors.."
Social Security 

Social Security: Who Is Covered Under the Program?

"Social Security pays cash benefits to about 65 million people each month. In all cases, a Social Security beneficiary becomes eligible for benefits either by working in a job that is covered by Social Security (a covered worker), by having a close family relationship to a covered worker, or both (among other requirements). For people who work in jobs that are covered by Social Security, participation is mandatory. Covered workers and their employers are required to pay Social Security payroll taxes. In 2021, workers pay 6.2% of earnings in covered employment up to a maximum earnings of $142,800. The maximum is adjusted annually based on average wage growth in the national economy. Employers pay a corresponding amount—6.2% of the worker’s covered earnings up to the annual maximum. Self-employed workers pay 12.4% of net earnings up to the annual maximum.

To become eligible for benefits, a worker must have a sufficient connection to covered employment, which is measured in terms of Quarters of Coverage (QCs). In 2021, a worker earns one QC for every $1,470 in covered earnings up to a maximum of fourQCs for the year (based on covered earnings of $5,880 or more). The amount needed to earn one QC is adjusted annually based on average wage growth in the national economy. When a worker has earned a sufficient number of QCs, he or she is insured under the program. The number of QCs needed for insured status varies depending on the circumstances and type of benefit, ranging from a minimum of six QCs to a maximum of 40 QCs. Insured status allows a worker to establish eligibility for retired-worker or disabled-worker benefits and for the worker’s family members to establish eligibility for benefits in the event of the worker’s retirement, disability, or death. See CRS Report R42035, Social Security Primer.."
Social Security 

The Social Security Administration’s Death Data: In Brief

"The Social Security Administration (SSA) acquires and maintains death data to administer the Social Security and Supplemental Security Income (SSI) programs, including preventing the improper payment of benefits to deceased individuals and identifying individuals who are potentially eligible for survivor benefits. SSA collects death data from sources such as state vital statistics bureaus, funeral home directors, family members, and financial institutions and adds about 2.9 million new death reports to its records each year. These records prevent over $50 million in Social Security and SSI improper payments each month.1

SSA, under authority granted and limitations imposed by the Social Security Act, shares its death information with qualifying federal and state agencies for particular programmatic purposes and with certain external parties for research and statistical purposes. SSA also provides a limited extract of its death data, referred to as the Death Master File (DMF), to the Department of Commerce’s National Technical Information Service (NTIS), which in turn distributes it to authorized users. The DMF contains only those death records obtained from non-state sources. Until the enactment of the Consolidated Appropriations Act, 2021 (P.L. 116-260), on December 27, 2020, SSA did not have legal authority to share its full file of death information (which includes state-reported deaths) with the Treasury Department’s Do Not Pay (DNP) portal, a centralized hub that would permit access by numerous federal agencies. However, the Consolidated Appropriations Act, 2021, includes a requirement for SSA to share its full file of death information (including state-reported death data) with DNP for a period of three years beginning three years after enactment and also provides for recipient agencies (including DNP) to fully reimburse SSA for the cost of both obtaining and sharing death data.
 

 Recently, the Treasury Department’s Internal Revenue Service (IRS) and Bureau of the Fiscal Service (BFS) used SSA’s death data to prevent payment of economic impact payments (EIPs, also known as “recovery rebates” or “stimulus payments”) to deceased individuals under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136). IRS had initially determined that the payment of EIPs to deceased individuals was not prohibited, because the CARES Act was silent on the issue. After consulting with counsel, the Treasury Department and the IRS determined that individuals who were deceased as of the date the payment was made were not entitled to EIPs. Subsequently, the BFS stopped issuing EIPs to deceased individuals and cancelled outstanding checks issued to deceased individuals, and the IRS posted instructions for the repayment of EIPs that were issued to deceased individuals. The Consolidated Appropriations Act, 2021 (P.L. 116-260), includes a second round of payments or which individuals who died before January 1, 2020, are ineligible. The IRS indicates that, for eligible individuals who died in 2020, the second round payment may be claimed as the Recovery Rebate Credit on line 30 of their 2020 tax returns..."
Social Security 

Social Security Handbook

Use the online edition of the Social Security Handbook to find information about benefits, rules and regulations of the Social Security program.
Social Security Handbook 

 

How Social Security Benefits Are Computed: In Brief

"Social Security, the largest program in the federal budget (in terms of outlays), provides monthly cash benefits to retired or disabled workers and their family members as well as to the family members of deceased workers. In 2019, benefit outlays were approximately $1,048 billion, with roughly 64 million beneficiaries and 178 million workers in Social Security-covered employment. Under current law, Social Security’s revenues are projected to be insufficient to pay full scheduled benefits after 2035.

Monthly benefit amounts are determined by federal law. Social Security is of ongoing interest both because of its role in supporting a large portion of the population and because of its longterm financial imbalance, and policymakers have considered numerous proposals to change its benefit computation rules.

The Social Security benefits that are paid to worker beneficiaries and to workers’ dependents and survivors are based on workers’ past earnings. The computation process involves three main steps

 First, a summarized measure of lifetime earnings is computed. That measure is called the average indexed monthly earnings (AIME).

 Second, a benefit formula is applied to the AIME to compute the primary insurance amount (PIA). The benefit formula is progressive. As a result, workers with higher AIMEs receive higher Social Security benefits, but the benefits received by people with lower earnings replace a larger share of past earnings.

 Third, an adjustment may be made based on the age at which a beneficiary chooses to begin receiving payments. For retired workers who claim benefits at the full retirement age (FRA) and for disabled workers, the monthly benefit equals the PIA. Retired workers who claim earlier receive lower monthly benefits, and those who claim later receive higher benefits..."
Social Security Benefits

CBO’s Long-Term Social Security Projections: Changes Since 2017 and Comparisons With the Social Security Trustees’ Projections

"Each year, the Congressional Budget Office updates its projections of the Social Security system’s finances to incorporate newly available data and information from the research community. The agency also updates its models to incorporate improvements in methods and feedback on its analytical approach. CBO’s latest longterm budget projections were published in June 2018.

Comparison With CBO’s Previous Projections.
CBO’s June 2018 projections indicate a slight improvement in the Social Security system’s financial outlook compared with the previous year’s projections: • The projected 75-year actuarial balance, a commonly used measure of the system’s financial condition, has not changed as a percentage of gross domestic product (GDP) since last year, remaining at −1.5 percent of GDP (that is, a deficit of 1.5 percent). As a percentage of taxable payroll, the projected 75-year actuarial balance has improved slightly from −4.5 percent to −4.4 percent..." 
Social security projections

Social Security Survivors Benefits

"Social Security is formally known as the Old-Age, Survivors, and Disability Insurance (OASDI) program. This report focuses on the Survivors Insurance component of Social Security. When workers die, their spouses, former spouses, and dependents may qualify for Social Security survivors benefits. This report describes how a worker becomes covered by Survivors Insurance and outlines the types and amounts of benefits available to survivors and eligibility for those benefits. This report also provides current data on survivor beneficiaries and benefits..."
Social Security survivors

Social Security: What Would Happen If the Trust Funds Ran Out?

"Social Security’s receipts and expenditures are accounted for through two federal trust funds: the Federal Old-Age and Survivors Insurance (OASI) Trust Fund and the Federal Disability Insurance (DI) Trust Fund. Under their intermediate assumptions and under current law, the Social Security trustees project that the DI trust fund will become depleted in 2032 and the OASI trust fund will become depleted in 2034. Although the two funds are legally separate, they are often considered in combination. The trustees project that the combined Social Security trust funds will become depleted in 2034. At that point, the combined trust funds would become insolvent, because incoming tax revenue would be sufficient to pay only about 79% of scheduled benefits.

 If a trust fund became depleted and current receipts were insufficient to cover current expenditures, there would be a conflict between two federal laws. Under the Social Security Act, beneficiaries would still be legally entitled to their full scheduled benefits. However, the Antideficiency Act prohibits government spending in excess of available funds, so the Social Security Administration (SSA) would not have legal authority to pay full Social Security benefits on time..."
Social Security

Your Retirement Checklist

"At Social Security, we’re often asked, “What’s the best age to start receiving retirement benefits?” The answer is that there isn’t a “best” age that applies to everyone. It’s a personal decision based on your situation and, ultimately, it’s your choice. To help you make an informed choice, consider the factors below as you think about when to start receiving your Social Security benefits.."
Social Security checklist

Social Security: The Lump-Sum Death Benefit

"When a worker who is insured by Social Security and living with a spouse dies, the spouse is entitled to a lump-sum death benefit of $255. If there is no such spouse, the payment can be made to a surviving child who is receiving or is eligible to receive benefits based on the deceased person’s work. In the majority of deaths, however, no payment is made.

The death benefit was once a more important part of Social Security, in terms of percentage of total benefits paid and size of the benefit compared with monthly survivor benefits: the only benefits paid out between 1937 and 1939 were lump-sum benefits to survivors of workers who died before turning 65 years old, and until 1950, the lump-sum death payment was the only benefits some survivors of deceased workers could receive. However, because the payment has been fixed at $255 for the past four decades, inflation has eroded its value. At the same time, the real value of other Social Security benefits has increased. Total federal spending on lump-sum death benefits is now about $209 million,  less than 0.03% of the total Social Security (Old-Age, Survivors, and Disability Insurance) benefits..."
Social security

Social Security Primer

"The Social Security program was established in the 1930s and has been modified by Congress many times over the years. Today, Social Security provides monthly cash benefits to retired or disabled workers and their family members, and to the family members of deceased workers. Among the beneficiary population, approximately 82% are retired or disabled workers, and 18% are the family members of retired, disabled, or deceased workers. In November 2015, nearly 60 million beneficiaries received a total of $74 billion in benefit payments for the month, with an average monthly benefit of $1,227.

Workers become eligible for Social Security benefits for themselves and their family members by working in Social Security-covered employment. An estimated 94% of workers in paid employment or self-employment are covered, and their earnings are subject to the Social Security payroll tax. In 2016, employers and employees each pay 6.2% of covered earnings, up to the annual limit on taxable earnings ($118,500 in 2016)..."
Social Security

Social Security Policy Options -2015

"Social Security, which marked its 80th anniversary in 2015, is the largest single program in the federal government’s budget. The program has two parts: Old-Age and Survivors Insurance (OASI), which pays benefits to retired workers, to their dependents and survivors, and to some survivors of deceased workers; and Disability Insurance (DI), which makes payments to disabled workers and to their dependents until those workers reach the age at which they are eligible to receive full retired-worker benefits under OASI. Social Security currently has about 60 million beneficiaries. Outlays for Social Security totaled $888 billion in fiscal year 2015, accounting for nearly one-quarter of all federal spending. Although Social Security is part of the overall federal budget, its funding mechanism of dedicated revenues sets it apart from many other government programs. Benefits for OASI and DI alike are financed from trust funds (often identified collectively as the combined, or OASDI, trust funds), which are credited with tax revenues, mainly from payroll taxes, and interest on the funds’ balances.1 As long as a trust fund’s balance is sufficient to cover required payments, benefits can be paid without the need for any legislative action..."
Social Security

How Social Security Benefits Are Computed: In Brief

"With about $900 billion in benefit outlays projected to be made in 2015, Social Security is the

largest program in the federal budget. It provides monthly cash benefits to retired and disabled workers and their family members as well as to the family members of deceased workers. Currently, there are about 59 million beneficiaries. Under current law, Social Security’s revenues are projected to be insufficient to pay full scheduled benefits after 2033. 

 

Monthly benefit amounts are determined by federal law. Social Security is an issue of ongoing interest both because of its role in supporting a large portion of the population and because of its long-term financial imbalance, and policy makers have considered numerous proposals to change its benefit computation rules..."

Social security benefits

2014 Long-Term Projections for Social Security: Additional Information

"In fiscal year 2014, spending for Social Security benefits totaled $840 billion, or almost one-quarter of federal spending; OASI payments accounted for about 83 percent of those outlays, and DI payments made up about 17 percent.2 Each year, the Congressional Budget Office (CBO) prepares long-term projections of revenues and outlays for the program. The most recent set of 75-year projections was published in July 2014.3 Those projections generally reflect current law, following CBO’s 10-year baseline budget projections through 2024 and then extending the baseline concept for the rest of the long-term projection period.  This publication presents additional information about those
projections..."
Social security projections

Social Security: Cost-of-Living Adjustments

"To compensate for the effects of inflation, Social Security recipients usually receive an annual cost-of-living adjustment (COLA). Benefits will be increased by 1.7% in 2015, following an increase of 1.5% in 2014. Social Security COLAs are based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), updated monthly by the Department of Labor’s Bureau of Labor Statistics (BLS). The COLA equals the growt h, if any, in the index from the highest third calendar quarter average CPI-W recorded (most often, from the previous year) to the average CPI-W for the third calendar quarter of the current year. The COLA becomes effective in December of the current year and is payable in January of the following year. (Social Security payments always reflect the benefits due for the preceding month.)..."

Social security

CRS Report for Congress Prepared for Members and Committees of Congress Social Security Reform: Legal Analysis of Social Security Benefit Entitlement Issues

"Calculations indicating that the Social Security program will not be financially sustainable in the

long run under the present statutory scheme have fueled the current debate regarding Social Security reform. This report addresses selected legal issues that may be raised regarding entitlement to Social Security benefits as Congress considers possible changes to the Social Security program in view of projected long-range shortfalls in the Social Security Trust Funds..."

Social Security

Plan and protect your finances with a my Social Security account

"Whether you’re one of the millions of workers who pay Social Security taxes or the 50 million retired Americans and dependents who receive benefits, it’s good to keep track of your Social Security benefits. National My Social Security Week takes place August 17 to 23 — the perfect time to take a step toward creating an online account with the Social Security Administration at www.socialsecurity.gov/myaccount. This account will give you secure and convenient online access to your personal Social Security information, including your earnings records and estimated benefits. If you already receive Social Security benefits, you can change your address and phone number, get a benefit verification letter and start or change direct deposit information..."
mySocial security account

How Social Security Benefits Are Computed: In Brief

"With $812 billion in benefit outlays in 2013, Social Security is the largest program in the federal

budget. It provides monthly cash benefits to retired and disabled workers and their family members as well as to the family members of deceased workers. Currently, there are about 58 million beneficiaries. Under current law, Social Security’s revenues are projected to be insufficient to pay full scheduled benefits after 2033..."

Social Security benefits