Since SSI was enacted in 1972, the program allowed $20 of income from any source and earnings of $65 per month without any effect on benefits. Earnings above that amount reduced benefits by $1 for every $2 earned. These amounts have not changed since 1972. If they had kept pace with inflation, they would now be about $90 and $290 per month, allowing disabled beneficiaries to earn up to $380 per month without reducing their benefits. Wage reporting has been a perennial problem for the SSI program. Earnings above $65 per month can affect beneficiaries’ payments. SSA quality reviews have found wages to be a leading cause of SSI overpayments for over a decade. The rules that apply when a recipient receives in-kind support are some of the most needing simplifications.
Current procedures on living arrangements and in-kind support are not only administratively cumbersome but also contribute significantly to inaccurate payments, cause vulnerability to fraud and abuse, and are part of a system of dubious equity. The Board encourages SSA to continue its study of simplifying rules for living arrangements and in-kind support and further examine the distributive effects of such a change. Replacing current rules with a much simpler approach would enhance payment accuracy, improve program integrity, increase equity among beneficiaries, reduce administrative burdens, and make the program easier for beneficiaries to understand.
The Statement is included in SSA’s 2005 Annual Report on the SSI Program. The Personal Responsibility and Work Opportunity Act of 1996 gives Board members the opportunity, individually or jointly, to include their views on SSI in SSA’s annual report to the President and Congress on the Supplemental Security Income (SSI) program. The Board or one of its members has submitted a statement every year since 1998, except for 2024 due to the lack of a quorum.