Preface

The Supplement is a major resource for data on our nation's social insurance and welfare programs. The
majority of the statistical tables present information about programs administered by the Social Security
Administration—the Old-Age, Survivors, and Disability Insurance programs, known collectively as Social
Security, and the Supplemental Security Income program. In addition, data are presented on the major
health care programs—Medicare and Medicaid—and income maintenance programs, including Workers’
Compensation, Unemployment Insurance, Temporary Disability Insurance, Black Lung benefits, veterans’
benefits, Food Stamps, Temporary Assistance for Needy Families, and Low-Income Home Energy Assistance. The Supplement also includes program summaries and legislative histories that help users of the
data understand these programs.
The Supplement has been published annually since 1940. Decisions affecting the future of Social
Security are facilitated by the availability of relevant data over a long period. The data provide a base for
research, policy analysis, and proposals for changing the programs. In addition to meeting the Social
Security Administration's information needs, the Supplement strengthens the agency's ability to respond to
requests for program data from congressional committees, government agencies at all levels, and the
research community.
The Supplement is prepared by Social Security Administration staff from various components throughout the agency and by many individuals from other federal agencies. I would like to express my thanks to
them for their contributions. The inside cover includes a list of the persons and agencies contributing to this
edition.
General comments or questions about this report are welcome and should be directed to Rona M.
Blumenthal at 410-965-0163 or rona.m.blumenthal@ssa.gov. For specific questions about the data,
please call the contact listed on each table.
This report is available on our Web site at http://www.socialsecurity.gov/policy. For additional copies,
please telephone 202-358-6274 or e-mail op.publications@ssa.gov.

Edward J. DeMarco
Associate Commissioner
for Research, Evaluation, and Statistics
July 2004

Contents

Highlights and Trends
Social Security (OASDI)
Employment and Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Program Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Program Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1
1
2

Supplemental Security Income
Annual Payment Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Program Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Program Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
3
3

Health Care
Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medicaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4
4

Other Social Insurance Programs and Veterans' Benefits
Unemployment Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary Disability Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Black Lung Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Veterans’ Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5
5
5
6
6

Public Assistance Programs
Temporary Assistance for Needy Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food Stamps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-Income Home Energy Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Poverty Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7
7
7
7

Program Descriptions and Legislative History
Social Security (Old-Age, Survivors, and Disability Insurance) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplemental Security Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Medicaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unemployment Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary Disability Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Black Lung Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Veterans’ Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Temporary Assistance for Needy Families . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Food Stamps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-Income Home Energy Assistance Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11
20
33
45
51
54
56
58
59
62
65
70

Appendixes
A. Sampling Variability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B. OASDI Benefit Award Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C. Poverty Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D. Computing a Retired-Worker Benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A.1
B.1
C.1
D.1

Glossary and Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . G.1

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I.1

vi ♦ Annual Statistical Supplement, 2003

Tables
Section 2. History of Program Provisions
and SSA Administrative Data
Old-Age, Survivors, and Disability Insurance
Coverage, Financing, and Insured Status
2.A1
2.A2
2.A3
2.A4
2.A5
2.A6
2.A7

Covered employment and self-employment provisions, by year enacted . . . . . . . . . . . . . . . .
Noncontributory wage credit provisions, by year enacted . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual maximum taxable earnings and contribution rates, 1937–2003 . . . . . . . . . . . . . . . . . .
Maximum annual amount of contributions, 1937–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credits enacted in 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appropriations from general revenues and interfund borrowing provisions,
by type of transaction and year enacted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Insured status (benefit eligibility) provisions, by eligibility concept and year enacted . . . . . . .

2.1
2.3
2.4
2.5
2.6
2.6
2.7

Benefit Computation and Automatic Adjustments
2.A8
2.A9
2.A10
2.A11
2.A11.1
2.A12
2.A13

2.A14
2.A16
2.A17
2.A17.1
2.A18
2.A19

Factors for indexing earnings, 1951–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Indexed earnings for workers with maximum earnings, 1951–2003 . . . . . . . . . . . . . . . . . . . .
Average monthly wage and average indexed monthly earnings provisions,
by year enacted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Formulas for computing PIA from AIME, cost-of-living adjustments, and minimum PIA
for workers who were first eligible in 1979 or later, by year of first eligibility . . . . . . . . . . . . . .
Computation of PIA based on Windfall Elimination Provision (WEP), by year enacted . . . . . .
Special minimum PIA (formula applies to years of coverage), by year enacted . . . . . . . . . . . .
Formulas enacted in 1977 for computing maximum family benefit from PIA
and cost-of-living adjustments for workers who were first eligible in 1979 or later,
by year of first eligibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Formulas for computing maximum family benefit and cost-of-living adjustments
for workers first eligible for disability benefits in 1979 or later, by year of enactment . . . . . . . .
Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW)
based on earnings after 1950, and percentage increases in PIA . . . . . . . . . . . . . . . . . . . . . . .
Minimum primary insurance amount (PIA) and maximum family benefit for workers who
attained age 62, were first eligible for disabled-worker benefits, or died before 1979 . . . . . . . .
Full retirement age and maximum reduction of retired-worker benefits, by year of birth . . . . . .
Automatic adjustment provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Illustrative benefit growth: Cumulative effect of statutory and automatic increases
in benefits using a 100 dollar base benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.9
2.11
2.12
2.13
2.14
2.15

2.17
2.17
2.18
2.20
2.21
2.22
2.24

Benefit Types and Levels
2.A20
2.A21
2.A22
2.A23
2.A24
2.A25
2.A26

Monthly benefits for retired and disabled workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monthly benefits for spouses and children of retired and disabled workers . . . . . . . . . . . . . . .
Monthly benefits for survivors of deceased workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monthly benefits for transitionally insured workers and their spouses
and surviving spouses, aged 72 before 1969 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monthly benefits for individuals and couples insured for special age-72 (Prouty) benefits . . . .
Lump-sum benefits and vocational rehabilitation services, by type of benefit . . . . . . . . . . . . . .
Monthly benefit amount for selected beneficiary families with first eligibility in 2002,
by average indexed monthly earnings for stipulated yearly wage levels,
effective December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.26
2.27
2.29
2.33
2.34
2.35

2.36

Annual Statistical Supplement, 2003 ♦ vii

2.A27
2.A28

Minimum and maximum monthly retired-worker benefits payable to individuals
who retired at age 62, by year they attained age 62, 1957–2003 . . . . . . . . . . . . . . . . . . . . . . .
Minimum and maximum monthly retired-worker benefits payable to individuals
who retired at age 65, by year they attained age 65, 1940–2003 . . . . . . . . . . . . . . . . . . . . . . .

2.37
2.38

Effect of Current Earnings and Taxation of Benefits
2.A29
2.A30
2.A31
2.A32

Earnings (retirement) test, by year enacted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monthly earnings guidelines for substantial gainful activity, 1961–2003 . . . . . . . . . . . . . . . . . .
Taxation of Social Security benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxation of Social Security benefits: Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.40
2.42
2.43
2.44

History of SSI, Medicare, and Medicaid Provisions
Supplemental Security Income
2.B1

Federal benefit rates, by living arrangement, 1974–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.45

Medicare cost sharing and premium amounts, 1966–2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.46

Federal medical assistance percentage and enhanced federal medical
assistance percentage, by state or other area, 2002–2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.47

Medicare
2.C1

Medicaid
2.C2

SSA Administrative Data
Offices and Staff
2.F1
2.F2
2.F3

Number of SSA offices, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of SSA employees and percentage with selected characteristics by grade,
September 30, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of work years, fiscal years 1993–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.48
2.48
2.48

Claims Workloads
2.F4
2.F5
2.F6

Number of Old-Age and Survivors Insurance claims, fiscal year 2002 . . . . . . . . . . . . . . . . . . .
Number of Disability Insurance claims, fiscal year 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of Supplemental Security Income claims, fiscal year 2002 . . . . . . . . . . . . . . . . . . . . .

2.49
2.49
2.49

Service Delivery
2.F7

Accuracy rates and use of 800 telephone number, fiscal years 1998–2002 . . . . . . . . . . . . . . .

2.50

Hearings and Appeals
2.F8
2.F9
2.F10
2.F11

Workload of SSA’s Administrative Law Judges (ALJs), fiscal years 2001–2003 . . . . . . . . . . . .
Number of hearing receipts, dispositions, and end-of-year pending cases,
fiscal years 2002–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Discontinued
Number of SSA Appeals Council cases, fiscal years 2001–2003 . . . . . . . . . . . . . . . . . . . . . . .

viii ♦ Annual Statistical Supplement, 2003

2.51
2.51
2.51

Section 3. Social Welfare and the Economy
Social Welfare Expenditures
(Discontinued)
3.A1
3.A3
3.A4

Discontinued
Discontinued
Discontinued

Employment and Earnings
3.B3

Federal minimum wage rates under the Fair Labor Standards Act of 1938 and average
hourly earnings and average weekly hours for production workers in manufacturing,
selected years 1938–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.1

Interprogram Data
3.C3
3.C4
3.C5

3.C6

3.C6.1

3.C7

3.C8

Contributions to the Social Security and Medicare trust funds, by program and source,
selected years 1965–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly amount of Social Security and selected public assistance programs,
December 1950–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Population aged 65 or older receiving Social Security (OASDI) benefits,
Supplemental Security Income (SSI) payments, or both, by state, December 1940–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage of Social Security (OASDI) beneficiaries also receiving federally
administered Supplemental Security Income (SSI) payments, by type of OASDI benefit and
SSI eligibility category, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of persons aged 18–64 receiving Social Security (OASDI) benefits or federally
administered Supplemental Security Income (SSI) payments based on disability, by type
of benefit, December 1978–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of persons aged 15 or older with Social Security (OASDI) benefits or Supplemental
Security Income (SSI) in March 2002, by sex, age, and race, and average annual
benefit in 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of persons aged 15 or older with Social Security (OASDI) benefits or Supplemental
Security Income (SSI) and number and percentage of Hispanic origin in March 2002, by age
and sex, and average annual benefit in 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.2
3.3

3.4

3.6

3.7

3.8

3.9

Poverty
3.E1
3.E2
3.E3
3.E4
3.E6
3.E8

Weighted average poverty thresholds for nonfarm families, by size, 1959–2002 . . . . . . . . . . .
Number and percentage of poor persons, by age, at end of selected years 1959–2001 . . . . . .
Shares of money income from earnings and other sources for aged and
nonaged families, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current living arrangements of persons aged 65 or older, by sex and poverty
status, March 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of aged families receiving Social Security benefits, by share
of income from benefits and race, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Poverty guidelines for families of specified size, 1965–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.10
3.11
3.12
3.13
3.14
3.15

Annual Statistical Supplement, 2003 ♦ ix

Section 4–6. Old-Age, Survivors,
and Disability Insurance
Trust Funds
4.A1
4.A2
4.A3
4.A4
4.A5
4.A6

Old-Age and Survivors Insurance, selected years 1937–2002 . . . . . . . . . . . . . . . . . . . . . . . . .
Disability Insurance, 1957–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Combined OASI and DI, 1957–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total annual benefits paid, by type of benefit and trust fund, and as a percentage
of personal income, selected years 1937–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total annual benefits paid from OASI trust fund, by type of benefit, selected years 1937–2002
Total annual benefits paid from DI trust fund, by type of benefit, 1957–2002. . . . . . . . . . . . . . .

4.1
4.2
4.3
4.4
4.5
4.6

Covered Workers
4.B1
4.B2
4.B3
4.B4
4.B5
4.B6
4.B7
4.B8
4.B9
4.B10a
4.B10b
4.B11
4.B12a
4.B12b

Number of workers with taxable earnings, amount of earnings, and Social Security numbers
issued, selected years 1937–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number with taxable earnings and amount of earnings, by type of earnings, 1951–2002 . . . . .
Number of workers and median annual earnings, by type of earnings and sex,
selected years 1937–2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage of workers with earnings below annual maximum taxable, by sex,
selected years 1937–2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of workers, by sex and age, selected years 1937–2001. . . . . . . . . . . . . . . . . . . . . . . .
Median earnings of workers, by sex and age, selected years 1937–2001 . . . . . . . . . . . . . . . . .
Number of wage and salary workers, by sex and amount of taxable earnings, 1992–2001 . . .
Number of self-employed workers, by sex and age, selected years 1951–2001 . . . . . . . . . . . .
Number of self-employed workers, by sex and amount of taxable earnings, 1992–2001 . . . . .
Number of workers with Social Security (OASDI) taxable earnings, amount taxable,
and contributions, by state or other area and type of earnings, 2000. . . . . . . . . . . . . . . . . . . . .
Number of workers with Social Security (OASDI) taxable earnings, amount taxable,
and contributions, by state or other area and type of earnings, 2001. . . . . . . . . . . . . . . . . . . . .
Number of workers with Social Security (OASDI) taxable earnings, amount taxable,
and contributions, by type of earnings, selected years 1937–2002 . . . . . . . . . . . . . . . . . . . . . .
Number of workers with Medicare Part A (HI) taxable earnings, amount taxable,
and contributions, by state or other area and type of earnings, 2000. . . . . . . . . . . . . . . . . . . . .
Number of workers with Medicare Part A (HI) taxable earnings, amount taxable,
and contributions, by state or other area and type of earnings, 2001. . . . . . . . . . . . . . . . . . . . .

4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14
4.15
4.16
4.17
4.18
4.19
4.20

Insured Workers
4.C1
4.C2
4.C5
4.C6

Estimated number, by insured status, December 31, 1940–2003 . . . . . . . . . . . . . . . . . . . . . . .
Estimated number, insured status, sex, and age, December 31, 1970–2003,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated size of the population in the Social Security area and percentage fully insured,
by sex and age, 1999–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Period life table, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.21
4.22
4.24
4.25

Benefits in Current-Payment Status
Summary
5.A1
5.A1.1

Number and average monthly benefit, by type of benefit and race, December 2002 . . . . . . . .
Number and average monthly benefit for retired workers, by sex, age, and race,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

x ♦ Annual Statistical Supplement, 2003

5.1
5.2

5.A1.2
5.A1.3
5.A1.4
5.A1.5
5.A1.6
5.A1.7
5.A1.8
5.A3
5.A4
5.A5
5.A6
5.A7
5.A8

5.A10
5.A14
5.A15
5.A16
5.A17

Number and average monthly benefit for disabled workers, by sex, age, and race,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for spouses, by marital status, basis of entitlement,
age, and race, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for children, by type of benefit, age, and race,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for widowed mothers and fathers, by age, sex,
marital status, and race, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for nondisabled widow(er)s, by sex, age,
marital status, and race, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for disabled widow(er)s, by age, sex,
marital status, and race, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for parents, by age, sex, and race, December 2002 . . .
Number and average monthly benefit, with reduction for early retirement, by type of benefit,
sex, age, and race, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and total monthly benefits, by trust fund and type of benefit,
December 1940–2002, selected years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average age, by type of benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit, by age, sex, type of benefit, and race,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for women, by type of benefit, basis of entitlement,
and race, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average primary insurance amount, and average monthly benefit for
persons with benefits based on special minimum primary insurance amount,
by type of benefit and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for beneficiaries aged 60 or older, by sex,
type of benefit, and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of women aged 62 or older, by basis of entitlement,
type of benefit, and dual entitlement status, December 1960–2002, selected years . . . . . . . . .
Number and average monthly benefit for women aged 65 or older, by basis of entitlement,
type of benefit, and dual entitlement status, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for adult beneficiaries, by sex, type of benefit,
and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for disabled beneficiaries, by type of benefit,
December 1957–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.4
5.7
5.10
5.13
5.14
5.15
5.15
5.16
5.20
5.21
5.21
5.22

5.23
5.24
5.25
5.25
5.26
5.27

Retired Workers
5.B1

5.B2

5.B3
5.B4
5.B5
5.B6
5.B7
5.B8
5.B9

Number, average primary insurance amount, and average monthly benefit without
reduction for early retirement and with delayed retirement credit, by age and sex,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average primary insurance amount, and average monthly benefit without
reduction for early retirement and without delayed retirement credit, by age and sex,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit before and after delayed retirement credit, by age
and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, percentage, and average monthly benefit, by year of entitlement as retired worker
and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average age, and percentage distribution, by sex and age, December 1940–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution with and without reduction for early retirement,
by monthly benefit and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution with and without reduction for early retirement,
by primary insurance amount and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit with and without reduction for early retirement,
by sex, December 1956–2002, selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution, by sex, monthly benefit, and age, December 2002 . . . . .

5.28

5.29
5.30
5.31
5.32
5.33
5.34
5.35
5.36

Annual Statistical Supplement, 2003 ♦ xi

Retired Workers and Dependents
5.C1
5.C2

Number and percentage distribution, by primary insurance amount and type of benefit,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly benefit, by type of benefit and sex, December 1940–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.38
5.39

Disabled Workers
5.D1
5.D2
5.D3
5.D4
5.D4.1
5.D5
5.D6

Number, percentage, and average monthly benefit, by year of entitlement as
disabled worker and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution, by monthly benefit and sex, December 2002 . . . . . . . . .
Number and total monthly benefits, by sex, December 1957–2002, selected years . . . . . . . . .
Number, average age, and percentage distribution, by sex and age,
December 1957–2002, selected years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of disabled beneficiaries, by diagnostic group
and type of beneficiary, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution, by diagnostic group, and sex, December 2002 . . . . . . . .
Number and percentage distribution, by sex, diagnostic group, and age, December 2002 . . .

5.40
5.41
5.41
5.42
5.43
5.44
5.45

Disabled Workers and Dependents
5.E1
5.E2

Number and percentage distribution, by primary insurance amount and type of benefit,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly benefit, by type of benefit, sex, and age, December 1957–2002,
selected years

5.46
5.46

Dependents and Survivors
5.F1
5.F3
5.F4
5.F6
5.F7
5.F8
5.F9
5.F10
5.F11
5.F12
5.F13

Number of wives and husbands and total monthly benefits, by type of benefit,
December 1950–2002, selected years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of wives with entitlement based on age, by monthly benefit
and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of children and total monthly benefits, by type of benefit, December 1940–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly benefit for survivors, by type of benefit, December 1940–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of survivors, by primary insurance amount
and type of benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of widow(er)s and total monthly benefits, by type of benefit,
December 1950–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, percentage, and average monthly benefit, by year of entitlement
as nondisabled widow(er), December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, percentage, and average monthly benefit, by year of entitlement
as disabled widow(er), December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of nondisabled widows, by monthly benefit and age,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of widowed and surviving divorced mothers and fathers and total monthly benefits,
by type of benefit, December 1950–2002, selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for nondisabled widows aged 65 or older, by age,
reduction status, and limitation of benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.47
5.48
5.49
5.50
5.51
5.52
5.53
5.53
5.54
5.55
5.56

Retired Workers with Dual Entitlement
5.G1

Percentage distribution of persons receiving both a retired-worker and a secondary
benefit without and with reduction for early retirement, by sex and primary insurance
amount, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xii ♦ Annual Statistical Supplement, 2003

5.57

5.G2
5.G3
5.G4
5.G5

Number receiving both a retired-worker and a secondary benefit, by sex and
type of secondary benefit, December 1952–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number receiving both a retired-worker and a secondary benefit and average
monthly benefit, by type of secondary benefit, December 2002. . . . . . . . . . . . . . . . . . . . . . . . .
Number receiving both a retired-worker and a secondary benefit, average monthly benefit,
and retired-worker benefit as a percentage of combined benefit, December 2002 . . . . . . . . . .
Percentage distribution, by total combined monthly benefit and retired-worker benefit,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.58
5.59
5.59
5.60

Beneficiary Families
5.H1
5.H2
5.H3
5.H4

Number and average monthly family benefit for selected family groups,
December 1945–2002, selected years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average primary insurance amount, and average monthly family benefit
for selected family groups, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of retired-worker and disabled-worker families, by monthly benefit
for selected family groups, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of survivor families, by monthly benefit for selected family groups,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.61
5.62
5.63
5.64

Geographic Data
5.J1
5.J2
5.J3
5.J4
5.J5
5.J5.1
5.J6
5.J8
5.J9
5.J10
5.J11
5.J12
5.J13
5.J14

Estimated total benefits paid, by state or other area and program, 2002 . . . . . . . . . . . . . . . . . .
Number, by state or other area, program, and type of benefit, December 2002 . . . . . . . . . . . .
Number and total monthly benefits for beneficiaries aged 65 or older, by state or other
area and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total monthly benefits, by state or other area, program, and type of benefit,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, by state or other area and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, by state or other area, race, and sex, December 2002 . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of monthly benefit for retired workers, by state or other area and
monthly benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of disabled workers, by state or other area and monthly benefit,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of nondisabled widow(er)s, by state or other area and
monthly benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of children, by state or other area and type of benefit, December 2002 . . . . . . . . . . . .
Number and total monthly benefits for beneficiaries in foreign countries, December 2002 . . . .
Number of disabled workers, by state or other area and diagnostic group,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of disabled workers, by state or other area and diagnostic group,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average monthly benefit, and median monthly benefit, by state or other area and
type of disabled beneficiary, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.65
5.66
5.67
5.68
5.69
5.70
5.71
5.72
5.73
5.74
5.75
5.76
5.77
5.78

Direct Deposit
5.K1

Number and percentage of beneficiaries and average monthly benefit, by state or other
area and direct deposit status, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.79

With Representative Payee
5.L1

Number of beneficiaries with a representative payee as a percentage of all beneficiaries,
by type of beneficiary and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.80

Annual Statistical Supplement, 2003 ♦ xiii

International Agreements
5.M1

Number of beneficiaries and average monthly benefit under U.S. totalization agreements,
by country and type of benefit, December 1983–2002, selected years . . . . . . . . . . . . . . . . . . .

5.81

Benefits Awarded
Summary
6.A1
6.A2

6.A3
6.A4
6.A5
6.A6

Number, by type of benefit, 1940–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average primary insurance amount for retired workers and average monthly benefit for
retired and disabled workers, and nondisabled widows, by type of benefit and sex,
selected years 1940–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit, by type of benefit, sex, age, basis of entitlement,
and race, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for retired and disabled workers, by age in month
of award and sex, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit with reduction for early retirement, by type of benefit,
age in month of award, and sex, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, percentage distribution, and average monthly benefit for retired and disabled
workers, by state or other area, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.1

6.2
6.3
6.5
6.6
6.7

Retired Workers
6.B1

6.B3
6.B4
6.B5

Number of initial awards to retired workers aged 62–64, average primary insurance
amount, average monthly benefit, and number of months benefits withheld due to earnings,
by sex and age in month of award, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution with and without reduction for early retirement,
by sex and monthly benefit, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution with and without reduction for early retirement,
by sex and primary insurance amount, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, average age, and percentage distribution, by sex and age,
selected years 1940–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.8
6.9
6.11
6.13

Disabled Workers
6.C1
6.C2
6.C3
6.C7

Number and percentage distribution, by monthly benefit and sex, 2002 . . . . . . . . . . . . . . . . . .
Number, average age, and percentage distribution, by sex and age,
selected years 1957–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution, by diagnostic group, sex, and age, 2002. . . . . . . . . . . . .
Number of applications, awards, ratio of awards to applications, and awards per 1,000
insured workers, selected years, 1960–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.14
6.15
6.16
6.17

Dependents and Survivors
6.D1
6.D3
6.D4
6.D5
6.D6
6.D7
6.D8
6.D9

Number of wives and husbands, by type of benefit, selected years 1950–2002 . . . . . . . . . . . .
Number and average monthly benefit for wives and husbands, by basis of entitlement,
age in month of award, and sex, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of children, by type of benefit, selected years 1940–2002 . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for children, by type of benefit and age
in month of award, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of mothers and fathers, by type of benefit, 1950–2002 . . . . . . . . . . . . . . . . . . . . . . . .
Number and average monthly benefit for widow(er)s, by age in month of award
and sex, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of widow(er)s, by type of benefit, 1950–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and average amount of lump-sum death payment awards, 1940–2001. . . . . . . . . . . .

xiv ♦ Annual Statistical Supplement, 2003

6.18
6.19
6.20
6.22
6.23
6.24
6.25
6.25

Benefits Withheld
6.E1
6.E4
6.E5

Number and percentage distribution of retired workers with benefits withheld,
by monthly benefit, reduction for early retirement, and sex, December 2002 . . . . . . . . . . . . . .
Number of beneficiaries with benefits withheld, by reason for withholding payment
and type of benefit, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of wives, husbands, and children with benefits withheld, by reason for
withholding payment and type of benefit, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.26
6.27
6.27

Benefits Terminated
6.F1
6.F2
6.F3

Number of benefits terminated, by type, 1940–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number, by reason for termination and type of benefit, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of wives, husbands, and children, by reason for termination
and type of benefit, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.28
6.29
6.29

Section 7. Supplemental Security Income
Summary
7.A1

7.A2

7.A3
7.A4
7.A5
7.A8
7.A9

Number of recipients of federally administered payments, total payments,
and average monthly payment, by source of payment, eligibility category, and age,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of individuals and couples receiving federally administered payments,
total payments, and average monthly payment, by source of payment and eligibility
category, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of recipients, by eligibility category and source of payment, January 1974
and December 1975–2002, selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total payments, by eligibility category and source of payment,
selected years 1974–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly payment, by eligibility category and source of payment,
December 1975–2002, selected years. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of federally administered awards, by eligibility category and age, 1974–2002 . . . . . . .
Number of recipients of federally administered payments, by eligibility category and age,
December 1974–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.1

7.1
7.2
7.3
7.4
7.5
7.6

State Data
7.B1
7.B2
7.B3
7.B7
7.B8
7.B9

Number of recipients of federally administered payments, December 2002, and total
payments for calendar year 2002, by state or other area and eligibility category, 2002 . . . . . . .
Number of recipients of state-administered supplementation, December 2002, and total
payments for calendar year 2002, by state and eligibility category, 2002 . . . . . . . . . . . . . . . . .
Number of recipients of federally administered payments and average monthly payment,
by state or other area, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total payments, by state or other area and source of payment, 2002 . . . . . . . . . . . . . . . . . . . .
Number of blind and disabled recipients of federally administered payments under age 18,
by state or other area, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of federally administered awards, by state or other area, eligibility category,
and age, 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.7
7.8
7.9
7.10
7.11
7.12

Annual Statistical Supplement, 2003 ♦ xv

Benefit Distributions
7.C1

7.C2

Number and percentage distribution of adult individuals and persons under
age 18 receiving federal SSI payments, by monthly payment and eligibility category,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of couples receiving federal SSI payments,
by monthly payment and eligibility category, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . .

7.13
7.13

Other Income Sources
7.D1
7.D2

Persons receiving federally administered payments and other income and their average
monthly income, by type of income, eligibility category, and age, December 2002 . . . . . . . . . .
Percentage of persons receiving both federally administered payments and Social Security
benefits, average monthly amount of benefits, by state or other area, eligibility category,
and age, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.14

7.15

Recipient Characteristics
7.E2
7.E3
7.E4
7.E5
7.E6

Percentage distribution of federally administered awards, by sex, age, and eligibility
category, 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of recipients of federally administered payments,
by sex, age, and eligibility category, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number and percentage distribution of persons with representative payees receiving
federally administered payments, by eligibility category and age, December 2002 . . . . . . . . . .
Number and percentage distribution of persons receiving federally administered payments,
by living arrangement, eligibility category, and age, December 2002. . . . . . . . . . . . . . . . . . . . .
Number of noncitizens receiving federally administered payments as a percentage of SSI
recipients, by eligibility category, December 1982–2002, selected years. . . . . . . . . . . . . . . . . .

7.16
7.17
7.18
7.18
7.18

Disability
7.F1

7.F2
7.F3
7.F4
7.F5

Number and percentage distribution of blind and disabled persons under age 65
receiving federally administered payments and not transferred from prior state programs,
by diagnostic group, December 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage distribution of blind and disabled recipients of federally administered
payments under age 65, by sex, diagnostic group, and age, December 2002. . . . . . . . . . . . . .
Number of section 1619(a) and section 1619(b) participants,
selected months, 1982–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of section 1619(a) and section 1619(b) participants, by age, sex, and types
and amounts of earned and unearned income, December 2002 . . . . . . . . . . . . . . . . . . . . . . . .
Number of section 1619(a) and section 1619(b) participants and their average monthly
earnings, by state or other area, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.19
7.20
7.21
7.22
7.23

Section 8. Health Care Programs
Medicare
Trust Funds
8.A1
8.A2

Hospital Insurance, 1966–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary Medical Insurance, calendar years 1966–2002. . . . . . . . . . . . . . . . . . . . . . . . .

xvi ♦ Annual Statistical Supplement, 2003

8.1
8.2

Enrollment, Utilization, and Reimbursement
8.B1

8.B2

8.B3a

8.B3b

8.B4
8.B5

8.B8a
8.B8b
8.B8.1
8.B9
8.B10
8.B11
8.B12

Hospital Insurance and/or Supplementary Medical Insurance: Aged persons enrolled,
served, and amount reimbursed, by type of coverage and service,
selected years 1967–1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Disabled persons enrolled,
served, and amount reimbursed, by type of coverage and service,
selected years 1974–1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Number of enrollees
aged 65 or older, by census division and state or other area, July 1, 1980–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Number of disabled
enrollees, by census division and state or other area, July 1, 1980–2002,
selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Number of enrollees
aged 65 or older, by program, age, sex, and race, July 1, 1980–2002, selected years . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Number of enrollees
under age 65 who are disabled or have end stage renal disease, by program, age, sex,
and race, July 1, 1980–2002, selected years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance: Average covered charge per covered day of care in short-stay
hospitals, by census division and state or other area, selected years 1990–2002. . . . . . . . . . .
Hospital Insurance: Average covered charge per covered day of care in skilled nursing
facilities, by census division and state or other area, selected years 1975–2002 . . . . . . . . . . .
Hospital Insurance: Short-stay hospital discharges, by state or other area,
selected fiscal years 1990–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary Medical Insurance: Number of reimbursed bills, charges, and amount
reimbursed, by type of beneficiary and type of service, for claims incurred 1994–2002 . . . . . .
Supplementary Medical Insurance: Claims received by carriers and assignment
rates, 1969–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary Medical Insurance: Reasonable charge determination for claims assigned
and unassigned for aged and disabled persons, 1971–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supplementary Medical Insurance: State buy-ins, by state or other area,
selected years 1991–2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.3

8.4

8.5

8.7
8.9

8.10
8.11
8.13
8.15
8.16
8.18
8.19
8.20

Participating Facilities
8.C1
8.C2
8.C3

Hospital Insurance and/or Supplementary Medical Insurance: Number of facilities
and beds, by type of participating provider, December 1967–2002, selected years . . . . . . . . .
Hospital Insurance: Number of participating hospitals and beds per 1,000 enrollees,
by state or other area, December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Hospital Insurance and/or Supplementary Medical Insurance: Number of participating
skilled nursing facilities, home health agencies, independent laboratories, and end stage
renal disease facilities, by census division and state or other area, December 2002 . . . . . . . .

8.21
8.23

8.25

Medicaid
Recipients
8.E1
8.E2

Unduplicated number of recipients, total vendor payments, and average payment,
by type of medical service, selected fiscal years 1985–2000 . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unduplicated number of recipients, total vendor payments, and average payment,
by type of eligibility category, selected fiscal years 1972–2000 . . . . . . . . . . . . . . . . . . . . . . . . .

8.27
8.28

State Data
8.H1a
8.H1b

Number of recipients, total payments, and average payment, by state, fiscal year 1999. . . . . .
Number of recipients, total payments, and average payment, by state, fiscal year 2000. . . . . .

8.29
8.30

Annual Statistical Supplement, 2003 ♦ xvii

Other Social Insurance and Veterans’ Benefits
Unemployment Insurance
9.A2

Summary data on state programs, by state or other area, 2002 . . . . . . . . . . . . . . . . . . . . . . . .

9.1

Workers’ Compensation
9.B1
9.B2
9.B3

Coverage, benefits, and costs, selected years 1940–2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits, by state and federal program, 1997–2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid by type of insurer and medical benefits paid,
by state and federal program, 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.3
9.4
9.5

Temporary Disability Insurance
9.C1

Selected data on state and railroad programs, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.7

Black Lung Benefits
9.D1
9.D2

Benefits currently payable to miners, widows, and dependents, December 1970–2002 . . . . . .
Benefits currently payable to miners, widows, and dependents, by state or other area,
December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.8
9.9

Veterans’ Benefits
9.F1

Number of disability compensation or pension payments, by type of payment and
age of beneficiary, selected years, 1940–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.10

Public Assistance
Temporary Assistance for Needy Families/AFDC
and Emergency Assistance
9.G1
9.G2

Average monthly number of families and recipients, total amount of cash assistance,
and average monthly payment, selected years 1936–2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average monthly number of families and recipients of Temporary Assistance for
Needy Families and total amount of assistance, by state or other area, 2002 . . . . . . . . . . . . . .

9.11
9.12

Food Stamps
9.H1

Number of participants, total annual benefits, and average benefit,
fiscal years 1962–2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.13

Low-Income Home Energy Assistance Program
9.J1
9.J1.1
9.J2

Number of households receiving home energy assistance, by state and type of assistance,
fiscal year 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Number of households receiving home energy assistance, by state and type of assistance,
fiscal years 1982–2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Low-income Home Energy Assistance Program funds: Federal net allocations and
amounts carried over, by state, fiscal year 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xviii ♦ Annual Statistical Supplement, 2003

9.14
9.15
9.16

9.J2.1
9.J3
9.J3.1

Low-income Home Energy Assistance Program funds: Federal net allocations and
amounts carried over, fiscal years 1982–2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated home energy assistance obligations, by state and type of assistance,
fiscal year 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Estimated home energy assistance obligations, by type of assistance,
fiscal years 1982–2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.17
9.18
9.19

Appendix Tables
A-1.
A-2.

Approximations of standard errors of estimated number of persons . . . . . . . . . . . . . . . . . . . .
Approximations of standard errors of estimated percentage of persons . . . . . . . . . . . . . . . . .

A.1
A.2

Annual Statistical Supplement, 2003 ♦ xix

Highlights and Trends

SuppDividerb2003.pmd

2

Social Security (OASDI)
Employment and Earnings

1

Program Data

1

Program Trends

2

Supplemental Security Income
Annual Payment Adjustments

3

Program Data

3

Program Trends

3

Health Care
Medicare

4

Medicaid

4

Other Social Insurance Programs
and Veterans’ Benefits
Unemployment Insurance

5

Workers’ Compensation

5

Temporary Disability Insurance

5

Black Lung Benefits

6

Veterans’ Benefits

6

Public Assistance Programs
Temporary Assistance
for Needy Families

7

Food Stamps

7

Low-Income Home
Energy Assistance

7

Poverty Data

7

8/30/2004, 10:25 AM

Social Security (OASDI)
Employment and Earnings
Workers in OASDI covered employment, 2002
Average earnings, 2002
Earnings required in 2003 for—
1 quarter of coverage
Maximum of 4 quarters of coverage
Earnings test exempt amounts for 2003
Under full retirement age for entire year
For months before reaching full retirement age in 2003
Beginning with month of reaching full retirement age in 2003

152.8 million
$32,466
$890
$3,560
$11,520
$30,720
Test eliminated

Program Data
Cost-of-living adjustment for December 2002
Average monthly benefit, December 2002
Retired workers
Widows and widowers, nondisabled
Disabled workers
Number of beneficiaries, December 2002
Old-Age, Survivors, and Disability Insurance
Old-Age Insurance
Total
Retired workers
Survivors Insurance
Total
Widows and widowers, nondisabled
Disability Insurance
Total
Disabled workers
Benefit payments, 2002
Old-Age, Survivors, and Disability Insurance
Old-Age and Survivors Insurance
Disability Insurance
Administrative expenses, 2002
Old-Age and Survivors Insurance
Amount
As a percentage of total benefits paid
Disability Insurance
Amount
As a percentage of total benefits paid

1.4 percent
$895
$861
$834
46.4 million
32.3 million
29.2 million
6.9 million
4.6 million
7.2 million
5.5 million
$453.8 billion
$388.1 billion
$65.7 billion

$2.1 billion
0.6 percent
$2.0 billion
3.1 percent

Program Trends

About 46.4 million persons received Social Security
benefits for December 2002, an increase of 567,000
(1.2 percent) since December 2001. Seventy percent
were retired workers and their spouses and children,
and another 15 percent were survivors of deceased
workers. Sixteen percent were disabled workers and
their spouses and children.

Seventy-two percent of the 29.2 million retired workers
received reduced benefits because of entitlement prior
to full retirement age. Relatively more women (75 percent) than men (69 percent) received reduced benefits.

The number of beneficiaries aged 65 or older rose from
31.9 million in 1997 to 33.2 million in 2002 (4.1 percent). Beneficiaries aged 85 or older increased at a
greater rate during the 5-year period (10.2 percent)
from 3,783,000 in 1997 to 4,170,000 in 2002. In 2002,
40,100 centenarians were receiving Social Security.

More than 19 million women aged 65 or older received
benefits for December 2002. About 7.2 million (37.2
percent) were entitled solely to a retired-worker benefit,
and another 5.7 million (29.4 percent) were dually entitled to a retired-worker benefit and a wife's or widow's
benefit. About 6.4 million (33.3 percent) were receiving
wife's or widow's benefits only.

Over 3 million children under age 18 received benefits,
including 1,350,500 children of deceased workers,
1,422,000 children of disabled workers, and 270,200
children of retired workers.

About 6.5 million persons received benefits based on
disability—5,544,000 disabled workers, 744,500 disabled adult children, and 207,400 disabled widows and
widowers. In addition, 151,600 spouses and 1,466,200
minors and student children of disabled workers
received benefits.

2 ♦ Annual Statistical Supplement, 2003

The leading causes of disability for disabled workers
were mental disorders other than mental retardation
(28 percent), and musculoskeletal conditions (24 percent). About 10 percent had circulatory conditions, and
an additional 10 percent had diseases of the nervous
system and sense organs.

Average monthly benefits for December 2002, including the 1.4 percent COLA increase, were $895 for
retired workers, $834 for disabled workers, and $861
for nondisabled widows and widowers. Among retired
workers, benefits averaged $1,008 for men and $774
for women. For disabled workers, average benefits
were $935 for men and $709 for women.

Average monthly family benefits for December 2002
were $1,614 for a widowed mother or father and children; $1,401 for a disabled worker, wife, and children;
and $1,769 for a retired worker, wife, and children.

Total OASDI benefit payments for calendar year 2002
were $453.8 billion. Payments from the OASI trust fund
were $388.1 billion—an increase of 4.2 percent from
the $372.3 billion paid in 2001.

Benefit payments from the DI trust fund, from which
benefits are paid to disabled workers, their spouses,
and children, increased by 10.2 percent from $59.6 billion in 2001 to $65.7 billion in 2002.

OASDI benefit awards in calendar year 2002 totaled
4,335,700, including 1,812,600 to retired workers,
433,900 to their spouses and children and 873,900 to
survivors of insured workers. Benefits were awarded to
750,000 disabled workers and to 465,400 of their
spouses and children.

Supplemental Security Income
Annual Payment Adjustments
Monthly federal benefit rate, effective January 2003
Individual living in his or her own household
Couple with both members eligible

$552
$829

Cost-of-living adjustment

1.4 percent

Program Data
Total
Benefits paid in 2002
Number of recipients, December 2002
Average benefit, December 2002

$34.6 billion
6.9 million
$408.64

Federally administered payments
Benefits paid in 2002
Number of recipients, December 2002
Average benefit, December 2002

$33.7 billion
6.8 million
$407.42

Federal SSI payments
Benefits paid in 2002
Number of recipients, December 2002
Average benefit, December 2002

$29.9 billion
6.5 million
$376.76

Federally administered state supplementation
Benefits paid in 2002
Number of recipients, December 2002
Average benefit, December 2002

a

$3.8 billion
2.5 million
$127.53

State-administered supplementation
Benefits paid in 2002
Number of recipients, December 2002
Average benefit, December 2002

b

$0.8 billion
0.6 million
$110.62

a. Includes 2.2 million persons receiving federal SSI and state supplementation and 0.3 million persons receiving state supplementation only.
b. Includes 151,989 persons receiving state supplementation only.

Program Trends

In December 2002, 6,787,900 persons received federally administered SSI payments—99,400 more than
the previous year. Of the total, 1,995,300 (29.4 percent) were aged 65 or older; 3,877,800 (57.1 percent)
were blind or disabled aged 18-64; and 914,800 (13.5
percent) were blind or disabled under age 18.

The number of blind or disabled aged 18-64 rose by
66,300 (1.7 percent) between December 2001 and
December 2002, while the number under age 18
increased by 33,000 (3.7 percent).

During 2002, 818,100 persons were awarded federally
administered payments, an increase of 6.2 percent
from the previous year. Of the 2002 awards, 533,500
went to blind or disabled recipients aged 18-64,
169,100 to those blind or disabled under age 18, and
115,500 to recipients aged 65 or older.

Total SSI payments were $34.6 billion in 2002,
up 4.6 percent from 2001. Federal SSI payments in
2002 were $29.9 billion (an increase of 4.2 percent
over the previous year). Federally administered state
supplementation totaled $3.8 billion (an increase of
10.4 percent); state-administered supplementation
totaled $848.0 million, a decrease of 5.3 percent from
the previous year's totals.

In 2002, the leading causes of disability among the
blind or disabled between the ages of 18 and 64 and
those under age 18 were mental disorders and mental
retardation. Among recipients between the ages of 18
and 64, 22.8 percent had mental retardation as the primary diagnosis, and 34 percent were diagnosed with
another mental disorder. These conditions were also
the most frequent diagnoses for blind or disabled under
age 18.

Annual Statistical Supplement, 2003 ♦ 3

Health Care
Medicare
Total benefits paid in calendar year 2002
Hospital Insurance (Part A)
Supplementary Medical Insurance (Part B)

$149.9 billion
$111.0 billion

Number of enrollees in July 2002 (one or both of Parts A and B)
Aged
Disabled

40.5 million
34.7 million
5.8 million

Administrative costs, 2002
Hospital Insurance
Amount
As a percentage of total benefits paid

$2.6 billion
1.7 percent

Supplementary Medical Insurance
Amount
As a percentage of total benefits paid

$2.2 billion
2.0 percent

Medicaid
Medical service expenditures in fiscal year 2000
Number of unduplicated recipients, fiscal year 2000

$168.3 billion
42.8 million

Average 2000 vendor payment per unduplicated recipient
Persons aged 65 or older
Permanently and totally disabled persons
Dependent children under age 21

$11,929
$10,559
$1,358

Average 2000 vendor payment for medical services
Nursing facility services
Inpatient general hospital care
Prescribed drugs
Physicians services

$20,220
$4,919
$975
$356

4 ♦ Annual Statistical Supplement, 2003

Other Social Insurance Programs and Veterans’ Benefits
Unemployment Insurance
Total payments, 2002

$42.1 billion

Average—
Weekly benefit amount (regular programs)
Duration of benefits
Weekly insured unemployment

$257
16.5 weeks
3.6 million

Covered employment

126.5 million

Workers' Compensation
Benefit payments, 2001
Compensation payments
Medical and hospitalization

$49.4 billion
$27.4 billion
$22.0 billion

Benefits paid by—
Private insurance carriers
State and federal funds
Employers' self-insurance

$27.1 billion
$11.0 billion
$11.3 billion

Covered workers per month

127.0 million

Costs as a percentage of covered payroll

1.39 percent

Temporary Disability Insurance a
Average weekly benefit, 2000
California b
State fund
Private plans
New York
State fund
Private plans

$256
$399
$146
$185

a. Programs in effect in California, Hawaii, New Jersey, New York, Rhode Island, Puerto Rico, and the railroad industry.
b. Accounts for half of the workers participating in Temporary Disability Insurance.

(Continued)

Annual Statistical Supplement, 2003 ♦ 5

Black Lung Benefits
Basic benefit to miner or widow
Maximum family benefit

$534.60
$1,069.20

Part B (claims filed before July 1, 1973)
Number of monthly benefits to miners, widows, and dependents, December 2002
Total benefits paid, calendar year 2002

71,600
$439.3 million

Part C (claims filed July 1, 1973, or later)
Total benefits paid, fiscal year 2002
Disability and survivors benefits
Medical benefits

$320.0 million
$64.2 million

Veterans' Benefits
Number of veterans with disability compensation or pension, 2002
Service-connected disability
Non-service-connected disability
Monthly payment in 2003 for—
Service-connected disability
10 percent disability
Total disability
Non-service-connected disability (maximum payment)
Without dependent
With one dependent and in need of aid and attendance

6 ♦ Annual Statistical Supplement, 2003

2,398,000
347,000

$104
$2,193
$807
$1,597

Public Assistance Programs
Temporary Assistance for Needy Families
Total payments, 2002

$10.1 billion

Average monthly number of—
Recipients
Families

5.1 million
2.1 million

Average monthly payment
Per recipient
Per family

$167
$412

Food Stamps
Monthly benefits, beginning October 1, 2003
Four-person household with no income
Standard deduction (one-person to four-person households)

$471
$134

Fiscal year 2002
Average number of participants
Total benefits

19.1 million
$18.3 billion

Low-Income Home Energy Assistance
(Funds issued by the Department of Health and Human Services in fiscal year 2001.)
Block grants to—
50 states and the District of Columbia
Puerto Rico, Virgin Islands, American Samoa, Guam, and Northern Mariana Islands

$1.36 billion
$1.9 million

Direct block grants to 128 Indian tribes and tribal organizations

$12.5 million

Leveraging incentive awards to—
37 states
30 Indian tribes and tribal organizations

$19.2 million
$1.4 million

Residential Emergency Assistance Challenge (REACH) program awards to—
5 states
8 Indian tribes and tribal organizations

$4.5 million
$1.2 million

Emergency contingency funds to—
50 states and the District of Columbia
128 Indian tribes and tribal organizations

$451 million
$4.0 million

Poverty Data
Weighted average poverty thresholds, 2002
Individual, aged 65 or older
Couple, householder aged 65 or older
Family of four
Percentage of population with income below poverty level, 2001
All ages
Children under age 18 living in families
Persons aged 65 or older

$8,628
$10,885
$18,392
11.7 percent
15.7 percent
10.1 percent

Annual Statistical Supplement, 2003 ♦ 7

Program Descriptions
and Legislative History

SuppDividerb2003.pmd

1

Social Security (Old-Age, Survivors,
and Disability Insurance)

11

Supplemental Security Income

20

Medicare

33

Medicaid

45

Unemployment Insurance

51

Workers’ Compensation

54

Temporary Disability Insurance

56

Black Lung Benefits

58

Veterans’ Benefits

59

Temporary Assistance
for Needy Families

62

Food Stamps

65

Low-Income Home Energy
Assistance Program

70

8/30/2004, 10:25 AM

Social Security
(Old-Age, Survivors, and Disability Insurance)
The Old-Age, Survivors, and Disability Insurance (OASDI)
program provides monthly benefits to qualified retired and
disabled workers and their dependents, and to survivors of
insured workers. Eligibility and benefit amounts are determined by the worker's contributions to Social Security. Benefits are paid as an earned right to workers, their families,
and their survivors. There is no means test to qualify for
benefits.

1. Monthly benefits for workers and their families.

At the end of December 2002, 46.4 million people were
receiving benefits at a rate exceeding $37 billion each
month (over $454 billion annually). According to the latest
Social Security Trustees Report, these cash benefits comprised 4.4 percent of the nation's gross domestic product.
During the same year, approximately 153 million employees and self-employed workers, along with employers, contributed $532.5 billion to the OASDI trust funds—through
which contributions are credited and benefits are paid.

Revenue received from FICA payments is transferred
to the U.S. Treasury. FICA revenue in excess of outlays is
used to purchase special interest-bearing Treasury bonds.
These securities remain assets of the trust funds until
needed to cover Social Security costs.

2. Vocational rehabilitation services for disabled beneficiaries.
3. Administrative costs (currently less than 1 percent of
expenditures).
4. The lump-sum death payment to eligible survivors.
0

Social Security benefits are essential to the economic
well-being of millions of individuals. Social Security pays
benefits to more than 90 percent of those 65 or older. It is
the major source of income (providing 50 percent or more
of total income) for 65 percent of the beneficiaries. It contributes 90 percent or more of income for one-third of the
beneficiaries and is the only source of income for 20 percent of them.

Contributions and Trust Funds
A person contributes to Social Security either through payroll taxes or self-employment taxes under the Federal
Insurance Contributions Act (FICA) or the Self-Employed
Contributions Act (SECA). Employers match the employee
contribution, while self-employed workers pay an amount
equal to the combined employer-employee contributions.
(Self-employed workers receive a special tax deduction to
ease the impact of paying the higher rate.) There is a maximum yearly amount of earnings subject to OASDI taxes,
$87,000 in 2003. There is no upper limit on taxable earnings for Medicare Hospital Insurance. Employees whose
contributions exceed the maximum taxable amount
because they worked for more than one employer can
receive refunds of excess FICA payments when they file
their tax returns.
Taxes are allocated to the Old-Age (Retirement) and
Survivors Insurance (OASI), the Disability Insurance (DI),
and the Hospital Insurance (HI) Trust Funds. In addition to
the taxes on covered earnings, OASI and DI trust fund revenues include interest on trust fund securities, income from
taxation of OASI and DI benefits, certain technical transfers, and gifts or bequests. By law, the OASI and DI trust
funds may only be disbursed for:

Structure and Organization
The OASDI program is administered by the Social Security
Administration (SSA), which became an independent
agency in 1995. The Commissioner of Social Security
serves a 6-year term following appointment by the President and confirmation by the Senate. A bipartisan Social
Security Advisory Board serves to review existing laws and
policies and commissions studies and issues recommendations intended to anticipate changing circumstances. The
President appoints three of the seven board members and
Congress appoints the other four members.
The Social Security Administration is headquartered in
Baltimore, Maryland. Major headquarter components
include the National Computer Center that contains SSA's
mainframe computers that drive our systems, much of the
executive staff for policy, programs, and systems, as well
as field support components. SSA's field structure is
divided into 10 geographic regions containing over 1,300
field installations in communities throughout the country.
Office sizes range from large urban offices with 50 or more
employees to remote resident stations staffed by one or
two individuals. Each region is headed by a Regional Commissioner and staffed with specialists to handle regional
administrative tasks and to assist field offices with operational issues. In addition, there are teleservice centers servicing all regions. While physically located within the
various regions, each teleservice center manages the public's Social Security business from throughout the nation
using state-of-the-art communications systems. Seven program service centers provide service and support for the
field offices in some aspects of Social Security's workloads.
Tables 2.F1–2.F11 provide SSA administrative data on
the agency’s national workforce (Tables 2.F1–2.F3),
claims workloads (Tables 2.F4–2.F6), delivery of services (Table 2.F7), and its hearings and appeals operations (Tables 2.F8–2.F11).
Annual Statistical Supplement, 2003 ♦ 11

Significant Program Changes
Program changes occur through legislation or (in areas
where authority is delegated to the Commissioner) through
regulation.
Changes are often implemented in phases and often
entail recurring annual changes beyond the initial enactment date or year of first implementation. Rather recent
changes with a significant and recurring impact are discussed below.
Elimination of Annual Earnings Test for Persons
Reaching Full Retirement Age
Public Law 106-182, The Senior Citizen's Freedom to Work
Act of 2000, enacted April 7, 2000, eliminated the earnings
test beginning with the month a beneficiary attains full
retirement age (FRA). Elimination of this earnings test is
effective for taxable years ending after December 31, 1999.
The earnings limit that applies in the year of attainment
of FRA is based on the limits previously established for persons at FRA through age 69—$30,000 in 2002, and
$30,720 in 2003. Benefits are withheld at the rate of $1 for
every $3 of earnings above these exempt amounts. In
determining earnings for purposes of the annual earnings
test under this legislation, only earnings before the month
of attainment of FRA will be considered. The legislation
also permits retired workers to earn delayed retirement
credits for any months between the attainment of full retirement age and age 70 for which the worker requests that
benefits not be paid.
Public Law 106-182 did not change the annual exempt
amount for beneficiaries who are under FRA throughout
the year, which continued to be pegged to increases in the
average wage. This amount increased from $11,280 in
2002 to $11,520 in 2003. Withholding for beneficiaries subject to this earnings test is at $1 for each $2 of earnings
over the exempt amounts. Proposed rules were published
August 25, 2003.
Work Incentives Improvement Act
The Ticket to Work and Work Incentives Improvement Act,
Public Law 106-170, was enacted on December 17, 1999.
This legislation provides major enhancements to SSA's
programs that assist disabled beneficiaries who attempt to
return to work. It provides beneficiaries more choices in
vocational rehabilitation and other support services and
offers expanded health care for beneficiaries who are no
longer eligible for cash benefits due to work. Effective October 1, 2000, the Act offers extended Medicare coverage to
beneficiaries who return to work and offers buy-in for Medicaid coverage.
The Ticket to Work provisions of this legislation are
being phased in over a 3-year period. The Ticket to Work
will emphasize and encourage rehabilitation efforts and will
12 ♦ Annual Statistical Supplement, 2003

pay private employment service providers for helping beneficiaries achieve specific work-related goals. These providers are called Employment Networks. Most disability
beneficiaries will receive a Ticket that they may use to
obtain vocational rehabilitation, job training, or other support services. Individuals may take their ticket to any of the
Employment Networks that offer services in their communities, or to the State Vocational Rehabilitation Agency. During the first phase, which began in February 2002, SSA
distributed tickets to beneficiaries in 13 states. In the second phase, which began in November 2002, SSA distributed tickets to beneficiaries in 20 more states and the
District of Columbia. And during the third phase, which is
scheduled to begin in November 2003, SSA will distribute
tickets in the remaining 17 states, along with American
Samoa, Guam, the Northern Mariana Islands, Puerto Rico,
and the Virgin Islands. Also beginning January 1, 2001,
former beneficiaries may have their benefits resumed if the
benefits were terminated because of work, their work activity ends within 5 years of the month their benefits stopped
and they are still disabled.
Regulatory Increases in Substantial Gainful Activity
and in Trial Work Period Amounts
Effective July 1, 1999, the Social Security Administration
raised from $500 to $700 the amount of monthly earnings
for a nonblind disabled individual to be considered engaging in substantial gainful activity (SGA). Effective January
1, 2001, the top SGA level was raised to $740 per month,
with the provision that ongoing SGA levels will be automatically adjusted annually based on increases in the national
average wage index. Effective January 1, 2003, the level is
$800 per month.
The SGA threshold is part of the definition of disability
that requires an individual to be unable to engage in substantial gainful activity to be eligible for benefits. Earnings
of more than the top SGA level will ordinarily demonstrate
that an individual is engaged in SGA. Earnings of less than
$800 per month will ordinarily demonstrate that an individual is not engaged in SGA.
A different definition of SGA applies to blind persons
receiving Social Security disability benefits. Increases in
the SGA amount for blind individuals have long been
pegged to increases in the national average wage index
and thus were not affected by the 1999 or subsequent rule
changes. The level for blind individuals increased from
$1,300 in 2002 to $1,330 in 2003.
New rules also affect the trial work period (TWP). The
TWP allows disability beneficiaries to test their ability to
work for at least 9 months. During the TWP, beneficiaries
may earn any amount and still receive full benefits. The
monthly level at which earnings count toward the 9-month
TWP was raised from $200 to $530 effective January 1,
2001, with future increases pegged to the national average
wage index. Effective January 1, 2003, the level is $570.

After completion of 9 trial work months, the SGA level is
used to determine whether earnings are substantial or not.
If earnings fall below the SGA level, full benefits generally
continue. If earnings are higher than the SGA level, cash
benefits are usually suspended while medical benefits continue.
Table 2.A30 provides related historical data on disability
program earnings guidelines, including reference to
recent changes in thresholds for determining SGA.

Coverage and Financing
In 2003, about 153 million persons will work in employment
or self-employment covered under the OASDI program. In
recent years, coverage has become nearly universal for
work performed in the United States, including American
Samoa, Guam, the Northern Mariana Islands, Puerto Rico,
and the U.S. Virgin Islands. Approximately 96 percent of
the American workforce are covered by OASDI. Workers
excluded from coverage fall into five major categories:
1. Civilian federal employees hired before January 1,
1984,
2. Railroad workers (who are covered under the railroad
retirement system, which is coordinated with Social
Security),
3. Certain employees of state and local governments who
are covered under their employers' retirement systems,
4. Domestic workers and farm workers whose earnings
do not meet certain minimum requirements (workers in
industry and commerce are covered regardless of the
amount of earnings), and
5. Persons with very low net earnings from self-employment, generally under $400 annually.
0

Table 2.A1 outlines the history of coverage provisions
and Table 2.A2 provides a history of provisions regarding noncontributory wage credits, mostly for military
service.

Employees, their employers, and the self-employed
each pay taxes on earnings in covered employment and
self-employment up to an annual maximum taxable amount
for OASDI. There is no upper limit on taxable earnings for
Medicare Hospital Insurance (HI). The OASDI maximum
taxable amount—$87,000 in 2003—is updated automatically each year in relation to increases in the national average annual wage. The current FICA tax rate applicable to
both employees and employers is 6.2 percent for OASDI
(5.30 percent for OASI and 0.9 percent for DI) and 1.45
percent for HI.
See Table 2.A3 for annual amounts of maximum taxable
earnings and contribution rates. Table 2.A4 shows historical annual maximum amounts of contributions by
employees and self-employed persons.
A self-employed person pays the combined employeeemployer rate of 12.4 percent for OASDI and 2.9 for HI
under the Self-Employment Contributions Act (SECA). Two
deduction provisions reduce the SECA and income tax liability of self-employed persons. The intent of these provisions is to treat the self-employed in much the same
manner as employees and employers are treated for purposes of FICA and income taxes. The first provision allows
a deduction from net earnings from self-employment equal
to the amount of net earnings before the deduction, times
one-half the SECA tax rate. The effect of this deduction is
intended to be analogous to the treatment of the FICA tax
paid by the employer, which is disregarded as remuneration to the employee for FICA and income tax purposes.
The second provision allows an income tax deduction,
equal to one-half of the amount of the SECA tax paid,
which is designed to reflect the income tax deductibility of
the employer's share of the FICA tax.
Table 2.A5 describes income tax credits for 1984–1989
intended to cushion the impact of increases in FICA
and SECA taxes enacted in 1983. The SECA tax credits
were replaced, effective 1990, by the deduction provisions described above. Table 2.A6 outlines the history
of provisions regarding appropriations from general
revenues and interfund borrowing.

0

For most employees, taxes are withheld from wages
beginning with the first dollar earned. The exceptions are
domestic employees, election workers, and agricultural
workers. In 2003, a domestic employee must earn $1,400
from any single employer in a calendar year before FICA is
withheld. Most election workers must earn $1,200 in 2003
before FICA is withheld. Most agricultural workers wages
are covered if the employer pays more than $2,500 in total
wages in a year or if the individual worker earns over $150
in a year from a single employer.

Insured Status
To become eligible for his or her benefit and benefits for
family members or survivors, a worker must earn a minimum number of credits based on work in covered employment or self-employment. These credits are described as
quarters of coverage. In 2003, a quarter of coverage (QC)
is credited for each $890 in annual covered earnings, up to
a maximum of four QCs for the year. Earnings of $3,560 or
more in 2003 will give the worker four QCs regardless of
when the money is actually earned or paid during the year.
The amount of earnings required for a QC is adjusted autoAnnual Statistical Supplement, 2003 ♦ 13

matically each year in proportion to increases in the average wage level.
Fully Insured
Eligibility for most types of benefits requires that the worker
be fully insured. To be fully insured a worker must have a
number of QCs at least EQUAL to the number of calendar
years elapsing between age 21 (or 1950 if later) and the
year in which he or she reaches age 62, becomes disabled,
or dies—whichever occurs first. Under this requirement,
workers who reach age 62 in 1991 or later need the maximum number of 40 QCs to be fully insured. For workers
who become disabled or die before age 62, the number of
QCs needed for fully insured status depends on their age at
the time the worker becomes disabled or dies. A minimum
of 6 QCs is required regardless of age.
Currently Insured
If a worker dies before achieving fully insured status, benefits can still be paid to qualified survivors if the worker was
"currently insured" at the time of death. Survivors benefits
are potentially payable to a worker's children and to a
widow(er) with the deceased worker’s children in care.) To
be currently insured, the worker must have earned 6 QCs
in the 13 quarters ending with the quarter of death (that is,
6 of the last 13 quarters, including the quarter in which
death occurred).
Disability Insured
To qualify for disability benefits, a nonblind worker must
have recent work activity as well as being fully insured.
Under the test involving recent work experience, a nonblind
worker who becomes age 31 or later must have earned at
least 20 QCs among the 40 calendar quarters ending with
the quarter in which the disability began. In general, workers disabled at ages 24 through 30 must have earned QCs
in one-half of the calendar quarters elapsing between age
21 and the calendar quarter in which the disability began.
Workers under age 24 need 6 QCs in the 12-quarter period
ending with the quarter of disability onset. Workers who
qualify for benefits based on blindness need only be fully
insured. Special rules may apply if the worker had a prior
period of disability.
Table 2.A7 summarizes the basic provisions concerning
insured status.

International Agreements
The President is authorized to enter into international
Social Security agreements (also called "totalization"
agreements) to coordinate the U.S. Old-Age, Survivors,
and Disability Insurance (OASDI) program with comparable
programs of other countries. The United States currently
has Social Security agreements in effect with 20 countries.
14 ♦ Annual Statistical Supplement, 2003

Social Security agreements and supplementary
agreements, effective dates
Australia
Austria
Belgium
Canada
Chile
Finland
France
Germany
Greece
Ireland

2002
1991, 1997
1984
1984, 1997
2001
1992
1988
1979, 1988, 1996
1994
1993

Italy
Korea
Luxembourg
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom

1978, 1986
2001
1993
1990, 2003
1984, 2003
1989
1988
1987
1980, 1989
1985, 1997

International Social Security agreements have two
main purposes. First, they eliminate dual Social Security
coverage, the situation that occurs when a person from one
country works in another country and is required to pay
Social Security taxes to both countries on the same earnings. Each agreement includes rules that assign a worker's
coverage to only one country.
The second goal of the agreement is to help fill gaps in
benefit protection for workers who have divided their
careers between the United States and another country.
Such workers may fail to qualify for Social Security benefits
from one or both countries because they have not worked
long enough to meet minimum eligibility requirements.
Under an agreement, these workers and their family members may qualify for a partial U.S. benefit based on "totalized" (that is, combined) credits from both countries.
Similarly, workers may qualify for partial benefits from the
foreign country based on totalized credits.
Table 5.M1 shows the number of beneficiaries receiving
totalization payments and their average benefits.

Benefit Computation and
Automatic Adjustment Provisions
PIA Computation
The primary insurance amount (PIA) is the monthly benefit
amount payable to the worker upon retirement at full retirement age or upon entitlement to disability benefits. The PIA
is also the base figure from which monthly benefit amounts
payable to the worker's family members or survivors are
determined. The PIA is derived from the worker's annual
taxable earnings, averaged over a period that encompasses most of the worker's adult years. Until the late
1970s, the average monthly wage (AMW) was the earnings
measure generally used. For workers first eligible for benefits after 1978, average indexed monthly earnings (AIME)
have replaced the AMW as the usually applicable earnings
measure. The PIA computation based on AIME currently
involves the following three steps:

1. Indexing of earnings. The worker's annual taxable
earnings after 1950 are updated, or indexed, to reflect
the general earnings level in the indexing year—the
second calendar year before the year in which the
worker is first eligible; that is, first reaches age 62,
becomes disabled, or dies. Earnings in years after the
indexing year are not indexed but instead are counted
at their actual value. A worker's earnings for a given
year are indexed by multiplying them by the following
ratio (indexing factor): The average wage in the
national economy for the indexing year, divided by the
corresponding average wage figure for the year to be
indexed.
Table 2.A8 shows the indexing factors applicable to the
earnings of workers who were first eligible in 1990–
2003. Table 2.A9 shows indexed earnings for workers
first eligible in 1996–2003 who had maximum taxable
earnings in each year after 1950. For a detailed description of an AIME computation, see Appendix D, "Computing a Retired-Worker Benefit."
2. Determining AIME. The period used to calculate AIME
equals the number of full calendar years elapsing
between age 21 (or 1950, if later) and the year of first
eligibility, usually excluding the lowest 5 years. Workers
disabled before age 47 have from zero to 4 excluded
years from the computation. At an absolute minimum,
2 years are used to compute AIME. The actual years
used in the computation (the "computation years") are
the years of highest indexed earnings after 1950,
including any years before age 22 or after age 61 as
well as the year of disability or death. AIME is calculated as the sum of indexed earnings in the computation period, divided by the number of months in that
period.
Table 2.A10 provides a historical outline of provisions
related to AIME and AMW and describes variations in
the number of dropout years. Tables 2.A15 and 2.A16
describe AMW benefit computations based on the
worker's nonindexed earnings after 1936 and 1950,
respectively. (Very few persons currently being awarded
benefits have PIAs computed under these old-start or
new-start computation methods. These methods, particularly the new-start method shown in Table 2.A16, are
more frequently applicable in earnings recomputations
for workers who reached age 62 before 1979.)
3. Computing the PIA. The formula used to compute the
PIA from AIME is weighted to provide a higher PIA-toAIME ratio for workers with comparatively low earnings. The formula applies declining percentage conversion rates to three AIME brackets. For workers who
reach age 62, become disabled, or die in 2003, the formula provides a PIA equal to the sum of:

90 percent of the first $606 of AIME, plus
32 percent of the next $3,047 of AIME, plus
15 percent of AIME over $3,653.
0

Beginning with the first year of eligibility, the PIA is
increased by cost-of-living adjustments (COLAs).
Table 2.A11 shows the PIA formula and first applicable
COLA for workers first eligible in 1979 or later.
The dollar amounts defining the AIME brackets are
referred to as "bend points." These bend points (as
described in Table 2.A11) are updated automatically each
year in proportion to increases in the national average
wage level. This automatic adjustment ensures that benefit
levels for successive generations of eligible workers will
keep up with rising earnings levels, thereby assuring consistent rates of earnings replacement from one generation
of beneficiaries to the next.
The benefit formula applicable to a worker depends on
the year of eligibility (or death) rather than on the year benefits are first received. Thus the PIA of a worker retiring at
FRA in 2003 is calculated using the benefit formula that
applies to all workers first eligible in 2000 (the "year of
attainment" of age 62). The PIA derived from that formula is
then increased by the COLAs effective for December,
2000, 2001 and 2002 to obtain the PIA effective at FRA.
Subsequent recomputations of the worker's benefit, including additional earnings not originally considered, delayed
retirement credits or additional COLA increases, all refer to
the basic computation that originally applied, based on the
year of attainment.
Beginning in 1981, benefits have been rounded to the
next lower ten cents at each step in the computation. The
final benefit payment is rounded to the next lower dollar
amount (if not already an even dollar). Prior to 1981, benefits were paid in ten-cent increments after rounding up to
the next dime in each computation step.
A cost-of-living increase in benefits generally is established each year if the consumer price index for urban
wage earners and clerical workers (CPI-W), prepared by
the Department of Labor, indicates a percentage increase
(after rounding) of at least 0.1 percent between two specified quarters. The arithmetical mean of the CPI-W for July,
August, and September in the year of determination is
compared with the arithmetical mean of the CPI-W for the
later of (a) July, August, and September in the year in
which the last effective cost-of-living increase was established or (b) the 3 months of the calendar quarter in which
the effective month of the last general benefit increase
occurred. The percentage increase in the CPI-W, rounded
to the nearest 0.1 percent, represents the size of the
increase in benefits, effective for December of the year in
which the determination is made.

Annual Statistical Supplement, 2003 ♦ 15

Under certain conditions, depending on the size of the
combined OASDI trust funds relative to estimated disbursements, the applicability and size of a cost-of-living adjustment may be determined under an alternative method,
called the "stabilizer provision." In no case, however, are
benefits reduced below the level of benefits in the year of
determination. Historically, this provision has never been
triggered.
Table 2.A18 presents a history of provisions relating
to the automatic adjustment of benefits, including a
description of the stabilizer provision. In addition,
the Table includes a summary history and description of
provisions relating to the annual automatic adjustment of
(1) the maximum amount of taxable and creditable earnings, (2) the dollar amount needed to establish a quarter
of coverage, (3) the bend points defining the AIME
brackets in the PIA formula and the PIA brackets in the
maximum family benefit formula, and (4) the exempt
amounts under the earnings (retirement) test.
All of these adjustments are linked to increases in the
level of the national average annual wage, rather than to
increases in the CPI. Table 2.A19 illustrates the cumulative effect of statutory and automatic increases in benefits for workers who have been in benefit status over
varying time periods.

Alternative PIA Computation Provisions
Special minimum PIA. Workers with low earnings but
steady attachment to the workforce over most of their adult
years may qualify for monthly benefits based on the special
minimum PIA computation. This computation does not
depend on the worker's average earnings, but on the number of coverage years—years in which the worker had
earnings equal to or above a specified amount. The level of
the special minimum PIA is the same for workers having
the same number of coverage years, regardless of age or
year of first eligibility. Increases in the special minimum PIA
are linked to cost-of-living adjustments (COLAs).
See Table 2.A12 for additional information on the
special minimum PIA.
0

Windfall Elimination Provision (WEP). The WEP affects
persons who receive a pension based on noncovered work
after 1956 and Social Security benefits. First eligibility for
the noncovered pension and Social Security benefits must
be after December 31, 1985 for WEP to apply. WEP
reduces the Social Security PIA upon which OASDI benefits are based and affects all benefits paid on that record,
except survivors. The WEP reduction ceases when entitlement to the pension payment ends, the wage earner dies,
or the wage earner earns a total of 30 years of substantial
Social Security earnings. The WEP reduction amount is
never more than one-half of the noncovered pension.
16 ♦ Annual Statistical Supplement, 2003

A WEP PIA is generally based on 40 percent of the first
bend point instead of 90 percent as with the regular PIA:
Example: A retired worker with a noncovered pension of $2,000 a month and less than 20 years of
covered employment attains age 62 in 2003.
Normal PIA, based on AIME of $800.
$606 x .90 = $545.40
$194 x .32 = $62.08
PIA = $607.40

WEP PIA, based on AIME of $800.
$606 x .40 = $242.40
$194 x .32 = $62.08
PIA = $304.40
If a worker has more than 20 years of substantial covered earnings, the WEP PIA begins to increase. With the
21st year of substantial covered earnings, the first bend
point percentage is increased by 5 percentage points. This
rate of increase applies for each additional year of substantial covered earnings, through the 30th year of substantial
earnings at which point WEP no longer applies. After 23
years of substantial coverage, for example, the first bend
point percentage would be 55 percent. Thirty years of substantial earnings would yield a first bend point percentage
of 90 percent (the normal percentage of the first bend
point).
Examples of pensions subject to WEP are U.S. Civil
Service Retirement System annuities, retirement benefits
based on foreign earnings, and state and local pensions
based on noncovered earnings.
Table 2.A11.1 provides more detail about the WEP
computation and contains the amounts of substantial
earnings for years after 1990. Substantial earnings for
earlier years are listed in Table 2.A12.
Family maximum provisions. Monthly benefits payable to
the worker and family members or to the worker's survivors
are subject to a maximum family benefit amount. The family maximum level for retired-worker families or survivor
families usually ranges from 150 percent to 188 percent of
the worker's PIA. The maximum benefit for disabled-worker
families is the smaller of (1) 85 percent of AIME (or 100
percent of PIA, if larger) or (2) 150 percent of the PIA.
Like the formula for determining the PIA, the maximum
family benefit formula applicable to a worker depends on
the year of first eligibility (that is, the year of attainment of
age 62, onset of disability, or death). Once the worker's
maximum family benefit amount for the year of first eligibility is determined, it is updated in line with the COLAs.

For information on family maximum provisions, as
described here, see Table 2.A13 (comparison of family
maximums to the PIAs on which they are based) and
Table 2.A14 (disability family maximums). Table 2.A17
shows the maximum family benefit amounts applicable
in cases of first eligibility before 1979.

Benefit Types and Levels
Retired and Disabled Workers
The full retirement age (FRA) is the earliest age at which an
unreduced retirement benefit is payable (sometimes
referred to as the "normal retirement age"). The age for full
retirement benefits is scheduled to rise gradually from age
65 to age 67, with the first incremental increase affecting
workers who reached age 62 in the year 2000. Workers
over age 62 who retire before FRA can receive reduced
benefits. The monthly rate of reduction from the full retirement benefit (that is, the PIA) is 5/9 of 1 percent a month
for the first 36 months immediately preceding FRA. The
reduction rate is 5/12 of 1 percent a month for any additional months. The maximum overall reduction for early
retirement will have risen from 20 percent to 30 percent by
2022, when age 67 becomes the full retirement age.
If a disabled worker receives a reduced retirement benefit for months before disability entitlement, the disability
benefit is reduced by the number of months for which he or
she received the reduced benefit.
For workers who postpone their retirement beyond the
full retirement age, benefits are increased for each month
of nonpayment beyond that age and age 70. This increase
is called a "delayed retirement credit," and is potentially
available for any or all months following attainment of the
full retirement age (maximum of 60 months for persons
who attained age 65 prior to 2003). The annual rate of
increase for delayed retirement credits is 7 percent for
workers who reach age 62 in 2002, and 7 1/2 percent for
workers who reach age 62 in 2003 and 2004. The rate will
rise to 8 percent for workers reaching age 62 in 2005 or
later.
Spouses and Children of Workers
Spouses receive 50 percent of the worker's PIA (regardless
of the worker's actual benefit amount), if the spouse has
attained the full retirement age at entitlement to spousal
benefits. The spouse of a retired or disabled worker can
elect monthly benefits as early as age 62. These benefits
are reduced at the rate of 25/36 of 1 percent a month for
the first 36 months immediately preceding FRA and 5/12 of
1 percent for each additional month. The maximum overall
reduction for early retirement will have risen from 25 percent to 35 percent by 2022, when age 67 becomes the full

retirement age (FRA) for spouses attaining age 62 in that
year.
Children of retired or disabled workers are also eligible
to receive monthly benefits. The term "child" refers to a
child under the age of 18, a child aged 18–19 attending elementary or secondary school full time, or to an adult child,
aged 18 or older, who was disabled prior to age 22. In addition, young spouses (that is, those under the age of 62)
who care for a worker's entitled child may also be eligible.
For purposes of defining young spouses' benefits, the term
"child" refers to a child under age 16, or to an adult child of
the worker who was disabled prior to age 22. Children of
retired or disabled workers can receive up to 50 percent of
the worker's PIA, as can young spouses. (The benefit of a
young spouse is not reduced for age.) Monthly benefits
payable to the spouse and children of a retired or disabled
worker are limited to a family maximum amount, as discussed earlier.
Benefits are payable to unmarried divorced spouses of
retirement age who were married at least 10 years to the
worker. A divorced spouse benefit is excluded from family
maximum provisions. Divorced spouses age 62 or older
and divorced for 2 or more years (after marriage of 10 or
more years) may be independently entitled on the record of
the ex-spouse if the ex-spouse could be entitled if he or she
applied.
Survivors Benefits
Widows and widowers of fully insured workers are eligible
for unreduced benefits at full retirement age (FRA). As with
retired workers and spouses, widow(er)s' FRA will gradually increase to age 67. Widows and widowers can elect
reduced monthly benefits at age 60 or, if disabled, as early
as age 50. Surviving divorced spouses can also receive
benefits if married to the worker for at least 10 years and
not remarried before age 60 (age 50 if disabled).
For survivors whose full benefit retirement age is 65,
the monthly rate of reduction for the first 60 months immediately preceding FRA is 19/40 of 1 percent of the worker's
PIA, with a maximum reduction of 28.5 percent at age 60.
For survivors whose full benefit retirement age is over 65,
the amount of reduction for each month prior to FRA is
adjusted accordingly to ensure that the maximum reduction
at age 60 remains 28.5 percent of the worker's PIA.
Benefits for widows and widowers are increased if the
deceased worker delayed retirement beyond the FRA. In
these cases, the survivor benefits include any delayed
retirement credits the deceased worker had earned. Conversely, if the worker had elected early retirement,
widow(er)s' benefits are limited for widow(er)s first entitled
to survivors benefits at age 62 or later. For these beneficiaries, the benefit is the higher of 82.5 percent of the worker's
PIA or the amount the worker would be receiving if still

Annual Statistical Supplement, 2003 ♦ 17

alive. Disabled widow(er)s ages 50–60 receive the age 60
widow's rate (71.5 percent of PIA) regardless of their age at
the time of entitlement.

service or, effective January 1, 2002, at least 5 years of railroad service after December 31, 1995. The two components are unchanged:

Children of deceased workers and mothers and fathers
under FRA are eligible to receive monthly benefits up to 75
percent of the worker's PIA if the worker died either fully or
currently insured. Mothers and fathers must be caring for
the worker's entitled child who is either under age 16 or disabled. A dependent parent aged 62 or older is eligible for
monthly benefits equal to 82.5 percent of the worker's PIA.
Each of two dependent parents can qualify for benefits
equal to 75 percent of the deceased worker's PIA. Monthly
benefits payable to survivors are reduced to conform to the
family maximum benefit payable on the deceased worker's
account. Benefits for a surviving divorced spouse, however,
are disregarded when computing the maximum family
benefit.

Tier 1. A basic Social Security level component equivalent to what would be paid under the Social Security
Act on the basis of the employee's combined railroad
and nonrailroad service, reduced by the amount of any
monthly benefit under OASDI actually paid on the basis
of nonrailroad work; and

Tier 2. A "private pension" component payable over
and above the Social Security equivalent, calculated
on the basis of the number of years of railroad service.

See Table 2.A20 for more information on the increases
in the full (or normal) retirement age for workers. Table
2.A21 describes age-related reductions for dependent
beneficiaries, as does Table 2.A22 (widow(er)s). Additionally, Tables 2.A23 and 2.A24 show the history of legislation relating to special monthly benefits payable to
certain persons born before January 2, 1900. Table
2.A25 summarizes the history of certain OASDI benefits
other than monthly benefit payments. Table 2.A26 presents illustrative monthly benefit amounts for selected
beneficiary families, based on hypothetical earnings histories representing five different earnings levels. Table
2.A27 shows minimum and maximum monthly benefits
payable to retired workers retiring at age 62 in various
years beginning with 1957 (the first full year benefits
became available at age 62). Table 2.A28 shows minimum and maximum monthly benefits payable to retired
workers retiring at age 65 in various years beginning
with 1940.
Provisions for Railroad Retirement Board Beneficiaries
The OASDI tables do not include a number of persons
receiving Railroad Retirement benefits who would be eligible for Social Security benefits had they applied. The reason they have not applied is that receipt of a Social
Security benefit would reduce their Railroad Retirement
benefit by a like amount. The number of persons is not
available but is estimated to be less than 100,000.
The Railroad Retirement Act of 1974, effective January
1, 1975, provided that the regular annuity for employees
with 10 or more years of railroad service who retired after
December 31, 1974, will consist of two components.
Public Law 107-90 (the 2001 amendments to the Railroad Retirement Act of 1974) effective January 1, 2002,
revised the railroad service work requirement. The railroad
service work requirement is 10 or more years of railroad

18 ♦ Annual Statistical Supplement, 2003

Effect of Current Earnings on Benefits
Beneficiaries under the full retirement age (FRA) with earnings in excess of certain exempt amounts may have all or
part of their benefits withheld as a result of the annual earnings test (AET) provisions of the Social Security Act. For
those at or above FRA, however, there have been recent
changes to AET provisions. Amendments in 1996 eased
the impact of AET provisions, while changes in 2000
removed the AET altogether for beneficiaries FRA or older.
Public Law 104-121, enacted March 29, 1996, substantially
raised the exempt amounts under the annual earnings test
for persons who have reached full retirement age. These
amounts are $12,500 in 1996; $13,500 in 1997; $14,500 in
1998; $15,500 in 1999; $17,000 in 2000; $25,000 in 2001;
and $30,000 in 2002. After 2002, the annual exempt
amount is indexed to the growth in average wages. In
2003, the indexed amount is $30,720. Benefits are withheld
at the rate of $1 in benefits for every $3 of earnings above
the FRA exempt amount. Public Law 106-182, enacted
April 7, 2000, eliminated the earnings test beginning with
the month a beneficiary reaches FRA. In determining
annual earnings for purposes of the annual earnings test,
only earnings before the month of attainment of FRA will be
counted.
Public Laws 104-121 and 106-182 did not change the
annual exempt amount for beneficiaries who are under
FRA throughout the year. This annual amount continues to
be pegged to increases in average wages. The amount
was $11,280 in 2002 and is $11,520 in 2003. When the
annual earnings limit affects working beneficiaries under
FRA, benefits are withheld at the rate of $1 for every $2 of
earnings above the exempt amount.
Individuals have the option to receive reduced benefits
under a monthly earnings test if it is to their advantage to
do so. This option is usually exercised in the first year of
retirement, because in that year the monthly test permits
payment for some months even if the annual earnings limit
is greatly exceeded. Under the monthly test, beneficiaries
receive a full monthly benefit for months in which they do
not earn over an amount equal to 1/12 of the annual earn-

ings limit. The monthly earnings test is applied to the selfemployed based on hours they work instead of monthly
earnings. Generally, beneficiaries are eligible for the
monthly earnings test in only one year.
Table 2.A29 provides historical detail on the retirement
test.
Beneficiaries entitled on the basis of their own disability—disabled workers, disabled adult children, and disabled
widow(er)s—are not subject to the earnings test. Substantial earnings by disabled beneficiaries, however, may indicate that they are able to do work that constitutes
substantial gainful activity (SGA) and are therefore no
longer disabled. Although other factors are considered,
numerical earnings thresholds are used in a determination
of SGA.
Table 2.A30 provides historical thresholds for determining substantial gainful activity (SGA).

Taxation of Benefits
Up to 85 percent of Social Security benefits may be subject
to federal income tax depending on the beneficiary's
income, marital status, and filing status. The definition of
income for this provision is as follows: Adjusted gross
income (before Social Security or Railroad Retirement benefits are considered), plus tax-exempt interest income, with
further modification of adjusted gross income in some
cases involving certain tax provisions of limited applicability
among the beneficiary population, plus one-half of Social
Security and Tier 1 Railroad Retirement benefits.

For married beneficiaries filing jointly with adjusted
gross income under $32,000 a year, no Social Security
benefits are subject to taxation. If adjusted gross income
exceeds $32,000 but is under $44,000, the amount of benefits included in gross income is the lesser of one-half of
income over $32,000. If a couple's adjusted gross income
exceeds $44,000, the amount of benefits included in gross
income is 85 percent of income over $44,000 plus the
lesser of $6,000 or one-half of benefits. However, no more
than 85 percent of benefits are subject to income tax. The
income thresholds for single beneficiaries are $25,000 and
$32,000.
If members of a married couple are filing separately,
they do not have a minimum threshold if they lived together
any time during the tax year. The amount of benefits
included in gross income is the lesser of 85 percent of
Social Security or Tier 1 Railroad Retirement benefits, or 85
percent of all income as defined above. Like all matters
dealing with tax liability, taxation of Social Security benefits
fall under the jurisdiction of the Internal Revenue Service.
Table 2.A31 shows the history of provisions related to
taxation of Social Security benefits. Table 2.A32 offers
examples to illustrate when benefits are taxable and the
amount subject to taxation.

CONTACT: Curt Pauzenga (410) 965-7210 or
Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 19

Supplemental Security Income
Program Overview
The Supplemental Security Income (SSI) program provides income support to persons aged 65 or older, blind or
disabled adults, and blind or disabled children. Eligibility
requirements and federal payment standards are nationally
uniform. The 2003 federal SSI benefit rate for an individual
living in his or her own household and with no other countable income is $552 monthly; for a couple (with both husband and wife eligible), the SSI benefit rate is $829
monthly.
Payments under SSI began in January 1974. It
replaced the former federal-state adult assistance programs in the 50 states and the District of Columbia. Under
SSI each eligible person is provided a monthly cash payment based on a statutory federal benefit rate. Since 1975,
these rates have been increased by the same percentage,
as the cost-of-living increases in OASDI benefits. If an individual or couple is living in another person's household and
is receiving both food and shelter from the person in whose
household they are living, the federal benefit rate is
reduced by one-third. This is done instead of determining
the actual dollar value of the in-kind support and maintenance.
For institutionalized persons, the eligibility requirements and payment standards depend on the type of institution. With some exceptions, inmates of public institutions
are ineligible for SSI. For persons institutionalized for a
complete calendar month, a maximum federal SSI payment
of $30 per month applies where (1) the institution receives
a substantial part of the cost of the person's care from the
Medicaid program, or (2) the institution receives payments
from private health insurance on behalf of a recipient under
age 18. Other eligible persons in institutions may receive
up to the full federal benefit rate.
The federal payment is based on the individual's countable income. The first $20 monthly in OASDI benefits or
other earned or unearned income is not counted. Also
excluded is $65 monthly of earnings plus one-half of any
earnings above $65. For example, a person living in his or
her own household, whose sole income is a $200 monthly
OASDI benefit, would receive $372 in federal SSI payments:
0

$552 - ($200 - $20) = ($552 - $180) = $372.
0

A person whose income consists of $500 in gross
monthly earnings would receive $344.50 in federal SSI
payments:
0

(($500 - $85) / 2) = $207.50 countable earnings
FBR $552 - $207.50 = $344.50 federal SSI
0

20 ♦ Annual Statistical Supplement, 2003

Individuals generally are not eligible for SSI if they
have resources in excess of $2,000 (or $3,000 for a couple). Certain resources are excluded, most commonly a
home, an automobile, and household goods and personal
effects of reasonable value. States have the option to supplement the federal SSI payment for all or selected categories of persons, regardless of previous state program
eligibility.
CONTACT: Paul S. Davies (410) 966-0299.

SSI: History Of Provisions
Basic Eligibility Requirements
1972 (Public Law 92-603, enacted October 30). An individual may qualify for payments on the basis of age, blindness, or disability.
Aged: Any person aged 65 or older.
Blind: Any person with 20/200 or less vision in the better eye with the use of correcting lenses, or with tunnel
vision of 20 degrees or less. An individual transferred
from a state Aid to the Blind (AB) program is eligible if
he/she received such state aid in December 1973 and
continues to meet the October 1972 state definition of
blindness.
Disabled: Any person unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment expected
to result in death or that has lasted or can be expected
to last for a continuous period of at least 12 months.
For a child under age 18, eligibility is based on disability of severity comparable with that of an adult. An individual transferred from a state Aid to the Permanently
and Totally Disabled (APTD) program to SSI is also eligible if he/she received such state aid in December
1973 and continues to meet the October 1972 state
definition of disability.
1973 (Public Law 93-233, enacted December 31). Only
persons who had received APTD before July 1973 and
were on the rolls in December 1973 may receive SSI
on the basis of the state definition of disability; those
who became eligible for state aid from July to December 1973 must meet the federal definition of disability.
1980 (Public Law 96-265, enacted June 9). A disabled
recipient who loses federal SSI eligibility because of
earnings at the substantial gainful activity level may
continue to receive a special benefit under section
1619 and retain eligibility for Medicaid under Title XIX
of the Social Security Act. This special benefit status
may continue as long as the recipient has the disabling

impairment and meets all nondisability SSI eligibility
criteria. states have the option of supplementing this
special benefit.

Other Eligibility Provisions

This provision of the law was in effect from January 1,
1981, through December 31, 1983. Beginning in January 1984, under a 1-year demonstration project, this
provision was continued for persons already eligible for
either regular SSI payments or special monthly benefits.

1972 (Public Law 92-603, enacted October 30). The individual must reside within one of the 50 states or the
District of Columbia and be a citizen or an alien lawfully
admitted for permanent residence or permanently
residing in the United States under color of law. Persons living outside the United States for an entire calendar month lose their eligibility for such a month.

1984 (Public Law 98-460, enacted October 9). The special
benefit and Medicaid provisions of the 1980 legislation
were extended through June 30, 1987 (retroactive to
January 1, 1984).
1986 (Public Law 99-643, enacted November 10). The special benefit and Medicaid provisions of the 1980
amendments are made permanent. The provisions
were amended effective July 1, 1987, with significant
modifications to simplify administration and to allow
free movement between regular SSI disability payments and either the special cash benefit or Medicaid
eligibility under section 1619. The distinction between a
disabled person eligible for regular SSI payments and
one eligible for 1619(a) is that the latter has several
months with gross earnings above the SGA level. Previously, section 1619(a) status required completion of a
trial work period and the determination that the work
was SGA.
1996 (Public Law 104-193, enacted August 22). For individuals under age 18, the “comparable severity” standard is eliminated and replaced with a requirement that
a child be considered disabled if he/she has a medically determinable impairment that results in “marked
and severe functional limitations,” and meets the existing statutory duration requirement. The law also eliminates references to “maladaptive behaviors” in the
Listing of Impairments for children, and discontinues
the use of individualized functional assessments for
children.
SSI eligibility is prohibited for an individual in any
month during which such an individual is a fugitive
felon, fleeing prosecution, or violating state or federal
conditions of probation or parole. In addition, SSI eligibility is prohibited for 10 years for those convicted of
fraudulently claiming residence to obtain benefits
simultaneously in two or more states.1

1. This last provision was repealed in 1999 by Public Law 106-169 and
replaced with a provision providing for nonpayment of benefits for up to
24 months for knowingly making false or misleading statements regarding
material facts.

Citizenship and Residence

1976 (Public Law 94-241, enacted March 24). Eligibility for
SSI is extended to residents of the Northern Mariana
Islands, effective January 9, 1978.
1980 (Public Law 96-265, enacted June 9). The income
and resources of the immigration sponsors of aliens
applying for SSI are considered in determining eligibility for and the amount of payment. After allowances for
the needs of the sponsor and his/her family, the
remainder is deemed available for the support of the
alien applicant for a 3-year period after admission to
the United States for permanent residence. This provision does not apply to those who become blind or disabled after admission, to refugees, or to persons
granted political asylum. (See section “Deeming of
Income and Resources” for subsequent changes to
sponsor-to-alien deeming provisions.)
1989 (Public Law 101-239, enacted December 19). SSI eligibility is continued for a disabled or blind child who
was receiving SSI benefits while living in the United
States and is now living with a parent who is a member
of the U.S. Armed Forces assigned to permanent duty
ashore outside the United States, but not where the
parent is stationed in Puerto Rico or the territories and
possessions of the United States.
1993 (Public Law 103-66, enacted August 10). Above provision made applicable where the parent is a member
of the U.S. Armed Forces and stationed in Puerto Rico
or the territories and possessions of the United States.
1996 (Public Law 104-193, enacted August 22). Prohibits
SSI eligibility for anyone who is not a U.S. citizen or
national unless they are in a “qualified alien” category
and meet one of certain exceptions such as lawful permanent residents who earn or can be credited with 40
qualifying quarters of earnings, certain refugee type
categories eligible for up to 5 years of time limited eligibility, or active duty U.S. military or veterans and their
spouses and children. Extends eligibility for aliens
receiving SSI as of August 22, 1996 (the enactment
date of the law) for 1 year after the enactment date for
those aliens found ineligible under the new standards.
(Public Law 104-208, enacted September 30). Amends
Public Law 104-193 to add to the list of “qualified
aliens” certain noncitizens (and their children) who
have been battered or subjected to extreme cruelty by
Annual Statistical Supplement, 2003 ♦ 21

a spouse or parent or a member of the spouse’s or parent’s family living in the same household.
1997 (Public Law 105-18, enacted June 12). Extends eligibility for aliens receiving SSI as of August 22, 1996,
until September 30, 1997, for those found ineligible
under the new alien standards of Public Law 104-193.
(Public Law 105-33, enacted August 5). Further
amends Public Law 104-193 to add Cuban and Haitian
entrants, and the child of a parent who has been battered or subjected to extreme cruelty, to the list of qualified aliens. Provides that Cuban and Haitian entrants
and Amerasian immigrants qualify for time limited eligibility, and increases the time limit from 5 to 7 years for
all time-limited categories. Additional exceptions are
added for qualified aliens: (1) lawfully residing in the
United States and receiving SSI benefits on August 22,
1996; and (2) lawfully residing in the United States on
August 22, 1996 and meeting the definition of blind or
disabled in the Social Security Act.
Certain noncitizen American Indians are excepted from
the alien nonpayment provisions of Public Law 104193.
Extends eligibility for “nonqualified aliens” receiving
SSI as of August 22, 1996, until September 30, 1998.
1998 (Public Law 105-306, enacted October 28). Permanently extends eligibility of all remaining “nonqualified
aliens” who were receiving SSI benefits when Public
Law 104-193 was enacted on August 22, 1996.
2000 (Public Law 106-386, enacted October 28). Noncitizens, regardless of their immigration status, may be eligible for SSI to the same extent as refugees, if they are
determined to be victims of “severe forms of trafficking
in persons.”
Other Benefits
1980 (Public Law 96-272, enacted June 17). SSI applicants
and recipients are not required as a condition of eligibility to elect to receive Veterans Administration pensions
under the Veterans and Survivors’ Pension Improvement Act of 1978 if the state of residence lacks a medically-needy program under Title XIX.
Drug Addiction and Alcoholism (DA&A)
1972 (Public Law 92-603, enacted October 30). Any disabled individual who has been medically determined to
be an alcoholic or drug addict must accept appropriate
treatment, if available, in an approved facility and demonstrate compliance with conditions and requirements
for treatment.
SSI payments are required to be made through a representative payee—another person or public or private

22 ♦ Annual Statistical Supplement, 2003

agency designated by SSA to manage the recipient’s
benefit on his/her behalf.
1994 (Public Law 103-296, enacted August 15). Any individual who is receiving SSI based on a disability where
drug addiction or alcoholism is a contributing factor
material to the finding of disability must comply with the
DA&A treatment requirements. The individual must
accept appropriate treatment when it is available and
comply with the conditions and terms of treatment.
Instances of noncompliance with the requirements
result in progressively longer payment suspensions.
Before payments can resume, the individual must demonstrate compliance for specific periods; 2 months, 3
months, and 6 months, respectively, for the first, second, third, and subsequent instances of noncompliance. An individual who is not in compliance with the
DA&A treatment requirements for 12 consecutive
months shall not be eligible for payments; however, this
does not prevent such individuals from reapplying and
again becoming eligible for payments.
SSI disability payments based on DA&A are also limited to a total of 36 benefit months (beginning March
1995) regardless of whether appropriate treatment is
available. Months for which benefits are not due and
received do not count towards the 36-month limit.
Payments based on DA&A must be made to a representative payee. Preference is required to be given to
community based nonprofit social service agencies
and federal, state, or local government agencies in representative payee selection. These agencies when
serving as payees for individuals receiving payments
based on DA&A may retain the lesser of 10 percent of
the monthly benefit or $58 (indexed to the consumer
price index (CPI)) as compensation for their services.
Establishment of one or more referral and monitoring
agencies for each state is required.
1996 (Public Law 104-121, enacted March 29). An individual is not considered disabled if DA&A is a contributing
factor material to a finding of disability.
Applies DA&A representative payee requirements
enacted under Public Law 103-296 to disabled SSI
recipients who have a DA&A condition and are incapable of managing their benefits. In addition, these recipients shall be referred to the appropriate state agency
administering the state plan for substance abuse treatment.
Institutionalization
1972 (Public Law 92-603, enacted October 30). An individual who is an inmate of a public institution is ineligible
for SSI payments unless the institution is a facility
approved for Medicaid payments and is receiving such
payments on behalf of the person. Under regulations,

the Medicaid payment must represent more than 50
percent of the cost of services provided by the facility to
the individual.
1976 (Public Law 94-566, enacted October 20). An inmate
of a publicly operated community residence serving no
more than 16 persons may, if otherwise eligible,
receive SSI.
1983 (Public Law 98-21, enacted April 20). Payments may
be made to persons who are residents of public emergency shelters for the homeless for a period of up to 3
months in any 12-month period.

Of funds provided for these services, at least 90 percent must be used for children under age 6 or for those
who have never attended public schools.
1980 (Public Law 96-265, enacted June 9). Disabled SSI
recipients who medically recover while enrolled in
approved vocational rehabilitation programs of state
VR agencies may continue to receive benefits during
their participation in such programs if the Commissioner of Social Security determines that continuation
in the program will increase the probability that they
leave the rolls permanently.

1986 (Public Law 99-643, enacted November 10). Effective
July 1, 1987, disabled or blind recipients who were
receiving special SSI payments or had special SSI
recipient status under section 1619 in the month preceding the first full month of institutionalization, may
receive payments based on the full federal benefit rate
for the initial 2 full months of institutionalization, if they
reside in certain public medical, psychiatric, or Medicaid facilities or in private Medicaid facilities.

1981 (Public Law 97-35, enacted August 13). Funding no
longer provided under Title XVI for medical, social,
developmental, and rehabilitative services to disabled
or blind children.

1987 (Public Law 100-203, enacted December 22). Effective January 1, 1988, payments may be made to persons who are residents of public emergency shelters
for the homeless, for up to 6 months in a 9-month
period.

1984 (Public Law 98-460, enacted October 9). Authorizes
the reimbursement of states for the cost of VR services
provided to individuals who (1) continue to receive benefits after medical recovery because they are participating in a state VR program or (2) refuse, without
good cause, to continue in or cooperate with the VR
program in which they had been participating.

Effective July 1, 1988, continued payment of SSI benefits for up to 3 months is permitted, at the rate that was
applicable in the month prior to the first full month of
institutionalization, for individuals whose expected
institutional stay on admission is not likely to exceed 3
months, as certified by a physician, and for whom the
receipt of benefits is necessary to maintain living
arrangements to which they may return.
1996 (Public Law 104-193, enacted August 22). Effective
December 1996, institutionalized children under age 18
whose private health insurance is making payments to
the institution may receive no more than $30 per month
in federal SSI.

Reimbursement for the cost of rehabilitation services
will only be made if the services result in the recipient’s
return to work for a continuous period of 9 months. The
work must be at the substantial gainful activity earnings
level.

1987 (Public Law 100-203, enacted December 22).
Extends the provision for continuation of payments to
disabled SSI recipients who have medically recovered
while enrolled in an approved vocational rehabilitation
program to include blind SSI recipients.
1990 (Public Law 101-508, enacted November 5). Reimbursement authorized for the cost of vocational rehabilitation services provided in months in which the
individual was not receiving federal SSI payments, if:

SSI recipient status for Medicaid eligibility purposes was retained under work incentive provisions, or

Benefits were in suspense2 status (for a reason
other than cessation of disability or blindness), or

Federally administered state supplementation was
received.

Vocational Rehabilitation and Treatment
1972 (Public Law 92-603, enacted October 30). Blind or
disabled individuals receiving federal SSI benefits who
are under age 65 must be referred to the state agency
providing services under the Vocational Rehabilitation
Act and must accept the services offered. States are
reimbursed for the cost of services.
1976 (Public Law 94-566, enacted October 20). Blind or
disabled children under age 16 must be referred to the
state agency administering crippled children’s services
or to another agency designated by the state. States
are reimbursed for the cost of services.

Extends benefit continuation provision to disabled SSI
recipients who medically recover while participating in
a non-state VR program.
1999 (Public Law 106-170, enacted December 17). Establishes a Ticket to Work and Self-Sufficiency program
that will provide SSI (and OASDI) disability beneficia2. Recipients who have lost eligibility for SSI benefits for fewer than 13
consecutive months are in suspended payment status.

Annual Statistical Supplement, 2003 ♦ 23

ries with a ticket that can be used to obtain vocational
rehabilitation services, employment services, or other
support services, from an employment network (EN) of
their choice.
An EN chooses one of the two EN payment options at
the time it submits an application to SSA to become an
EN. The chosen payment system will apply to all beneficiaries served. An EN can elect to receive payment
under the:

Outcome payment system, under which it can
receive payment for up to 60 outcome payment
months; or

Outcome-milestone payment system, under which
it can receive payment for up to four milestones in
addition to outcome payments. These milestones
must occur before the EN enters the first month for
which it is eligible for an outcome payment. Four
milestone payments plus 60 months of reduced
outcome payments equal 85 percent of the total
that would be available if the EN chose the outcome payment system.

The four milestones are based on gross earnings
exceeding the substantial gainful activity level for specified months. An outcome payment month is any month
in which SSA does not pay any federal cash disability
cash benefits to a beneficiary because of work or earnings.
Continuing Disability Reviews and Eligibility
Redeterminations
1994 (Public Law 103-296, enacted August 15). During
each of fiscal years 1996, 1997, and 1998, requires
SSA to conduct continuing disability reviews (CDRs)
on a minimum of 100,000 SSI recipients. In addition,
during the same period, requires SSA to redetermine
the SSI eligibility of at least one-third of all child SSI
recipients who reach age 18 after April 1995 during the
1-year period following attainment of age 18. Redeterminations for persons turning age 18 could count
toward the 100,000 CDR requirement.
1996 (Public Law 104-193, enacted August 22). Repeals
the requirement that SSA redetermine the eligibility of
at least one-third of all child SSI recipients who reach
age 18 after April 1995 during the 1-year period following attainment of age 18.
Requires a CDR:

At least once every 3 years for SSI recipients
under age 18 who are eligible by reason of an
impairment that is likely to improve, and
Not later than 12 months after birth for recipients
whose low birth weight is a contributing factor
material to the determination of their disability.

24 ♦ Annual Statistical Supplement, 2003

Requires eligibility redetermination for all child SSI
recipients eligible for the month before the month in
which they attain age 18.
Requires redetermination of eligibility for children considered disabled based on an individual functional
assessment and/or consideration of maladaptive
behavior.
Requires the representative payee of a child SSI recipient whose continuing eligibility is being reviewed to
present evidence that the recipient is receiving treatment that is considered medically necessary and available for the condition which was the basis for providing
SSI benefits.
1997 (Public Law 105-33, enacted August 5). Modifies provision of Public Law 104-193 to extend from 12 to 18
months the period for redetermining the disability of
children under age 18 under the new childhood disability standard.
Modifies provision of Public Law 104-193 to permit
SSA to schedule a CDR for a disabled child for whom
low birth weight is a contributing factor material to the
determination of disability, at a date after the child’s first
birthday if the Commissioner determines the impairment is not expected to improve within 12 months of
the child’s birth.
Modifies provision of Public Law 104-193 to provide
SSA the authority to make redeterminations of disabled
childhood recipients who attain age 18, more than 1
year after the date such recipient attains age 18.
1999 (Public Law 106-170, enacted December 17). Prohibits the initiation of a CDR during the period that a recipient is “using a ticket” under the Ticket to Work
program.
Deeming of Income and Resources
1972 (Public Law 92-603, enacted October 30). Deeming
occurs when the income and resources of certain family members living in the same household with the SSI
recipient are considered in determining the amount of
the SSI payment. These family members are the ineligible spouse of an adult recipient and the ineligible parents of a child recipient under age 21.
After deduction of personal allocations for the spouse
(or parents) and for ineligible children in the home, and
after application of income exclusions, any remaining
income of the spouse (or parents) is added to the
income of the eligible person.
1980 (Public Law 96-265, enacted June 9). Children aged
18 or older are not subject to parental deeming.
Sponsor’s income and resources deemed to an alien
for 3 years.

1989 (Public Law 101-239, enacted December 19). Disabled children receiving home care services under
state Medicaid programs, who are ineligible for SSI
because of deeming of parental income, and who
received SSI benefits limited to $30 while in a medical
treatment facility, may receive the $30 monthly allowance that would be payable if the recipient were institutionalized.
1993 (Public Law 103-152, enacted November 24).
Sponsor-to-alien deeming period extended from 3
years to 5 years, effective January 1, 1994, through
September 30, 1996.
Considers an ineligible spouse or parent who is absent
from the household due to active military service to be
a member of the household for deeming purposes.
1996 (Public Law 104-193, enacted August 22). Deeming
of income and resources from an immigration sponsor
to a noncitizen continues until citizenship, with exceptions for those who earn, or can be credited with, 40
qualifying quarters of earnings. Effective for those
whose sponsor signs a new legally enforceable affidavit of support.
(Public Law 104-208, enacted September 30). Amends
Public Law 104-193 to add two exceptions to the sponsor-to-alien deeming:

Provides that if the noncitizen is indigent and would
be unable to obtain food and shelter without SSI
benefits even after receiving support from the
sponsor, then only the amount of income and
resources actually provided by the sponsor will be
counted for a 12-month period after a determination of indigence; and
Provides that in certain cases, deeming would not
apply for a 12-month period (with some options for
extension) if the noncitizen (or his/her children) has
been battered or subjected to extreme cruelty by
family members.

1997 (Public Law 105-33, enacted August 5). Amends
Public Law 104-208 to add an additional exception to
sponsor-to-alien deeming when the parent of a noncitizen has been battered or subjected to extreme cruelty
by family members.
Federal Benefit Rates
Basic benefit standards are used in computing the amount
of federal SSI payments. Benefit levels differ for individuals
and couples living in households and for persons in Medicaid institutions. Individuals or couples living in their own
households receive the full federal benefit. If an individual
or couple is living in another person’s household and
receiving support and maintenance there, the federal benefit is reduced by one-third. The federal benefit rates for persons in households are increased annually to reflect

increases in the cost of living. Legislation affecting the level
of federal benefit rates since the inception of the SSI program are summarized in Table 2.B1.
Windfall Offset
1980 (Public Law 96-265, enacted June 9). Offset (by
reduction of retroactive Social Security benefits) to prevent persons whose initial OASDI payment is retroactive from receiving more in total benefits than if they
were paid the benefits when regularly due.
1984 (Public Law 98-617, enacted November 8). Offset
provision expanded to allow for reduction of retroactive
SSI benefits and to apply in cases of OASDI benefit
reinstatement.
Proration of Benefit
1982 (Public Law 97-248, enacted September 3). Benefit
for first month of eligibility to be prorated by the number
of days in the month for which an application has been
filed and there is eligibility.
1996 (Public Law 104-193, enacted August 22). Changes
the effective date of an SSI application to the first day
of the month following the date on which the application was filed or on which the individual first becomes
eligible, whichever is later. This, in effect, eliminates
prorated payments in initial claims.
Retrospective Monthly Accounting
1981 (Public Law 97-35, enacted August 13). Changes the
method of computing the SSI benefit to one under
which the benefit amount is computed on a monthly
basis and is based on income and other characteristics
in the previous (or second previous) month.
1984 (Public Law 98-369, enacted July 18). Changes the
method of computing the SSI benefit to persons receiving Title II payments. The effect of the increased Title II
income at the time of the cost-of-living increase is not
delayed as it otherwise would be.
1987 (Public Law 100-203, enacted December 22). Provides an exception to retrospective monthly accounting
so that amounts received under Aid to Families with
Dependent Children (AFDC), foster care, refugee cash
assistance, Cuban-Haitian entrant assistance, or general and child welfare assistance provided by the
Bureau of Indian Affairs are counted only in the month
received.
1993 (Public Law 103-66, enacted August 10). Changes
the method of computing the SSI benefit to persons
receiving the value of the one-third reduction. The
effect of the increased value at the time of the cost-ofliving increase is not delayed as it otherwise would be.
Effective January 1995.

Annual Statistical Supplement, 2003 ♦ 25

Uncashed Checks
1981 (Public Law 97-35, enacted August 13). States that
have federally administered supplements to be credited their share of SSI checks that remain unnegotiated
for 180 days.
1987 (Public Law 100-86, enacted August 10). SSI checks
now unnegotiable after 1 year. States are credited their
share of SSI checks after 1 year rather than 180 days.
Rounding of Payment Amounts
1982 (Public Law 97-248, enacted September 3). Cost-ofliving adjustments in the federal SSI benefit and
income eligibility levels are to be rounded to the next
lower whole dollar, after the adjustment is calculated.
Subsequent cost-of-living adjustments will be calculated on the previous year’s benefit standard before
rounding.
Penalties Resulting in Nonpayment of Benefits for
False or Misleading Statements
1999 (Public Law 106-169, enacted December 14). Provides for the nonpayment of OASDI and SSI benefits
(6, 12 and 24 months, respectively, for the first, second,
and third or subsequent violations) for individuals found
to have knowingly made a false or misleading statement of material fact for use in determining eligibility for
benefits.
Exclusions from Income
General Exclusions
1972 (Public Law 92-603, enacted October 30). The first
$60 of earned or unearned income per calendar quarter for an individual or couple; the next $195 and onehalf the remainder of quarterly earned income.
Unearned income includes Social Security benefits,
other government or private pensions, veterans’ benefits, and workers’ compensation.
1981 (Public Law 97-35, enacted August 13). The first $20
of earned or unearned income per month for an individual or couple; the next $65 and one-half the remainder
of monthly earned income. Unearned income includes
Social Security benefits, other government or private
pensions, veterans’ benefits, and workers’ compensation.
2000 (Public Law 106-554, enacted December 21). Earnings of persons defined as Social Security statutory
employees are treated as self-employment income for
SSI purposes.
Special Exclusions
1972 (Public Law 92-603, enacted October 30). Any
amount of tax rebate issued to an individual by any
26 ♦ Annual Statistical Supplement, 2003

public agency that is based on either real property or
food purchase taxes.
Grants, scholarships, and fellowships used to pay
tuition and fees at an educational institution.
Income required for achieving an approved self-support plan for blind or disabled persons.
Work expenses of blind persons.
For blind persons transferred from state programs to
SSI, income exclusions equal to the maximum amount
permitted as of October 1972 under the state programs.
Irregularly or infrequently received income totaling $60
or less of unearned income and $30 of earned income
in a calendar quarter.
Payment for foster care of ineligible child residing in
recipient’s home through placement by a public or private nonprofit child care agency.
One-third of any payment received from an absent parent for the support of a child eligible for SSI.
Certain earnings of a blind or disabled child under age
22 regularly attending an educational institution.
State or local government cash payments based on
need and designed to supplement SSI payments.
1976 (Public Law 94-331, enacted June 30). Disaster
assistance from income for 9 months and application of
one-third reduction for 6 months for certain victims of
disasters occurring between January 1, 1976, and
December 31, 1976.
(Public Law 94-566, enacted October 20). Any assistance based on need (including vendor payments)
made to or on behalf of SSI recipients, which is paid
and wholly funded by state or local governments.
The value of assistance provided under certain federal
housing programs.
1977 (Public Law 95-113, enacted September 29). Food
stamps, federally donated food, and the value of free or
reduced price food for women and children under the
Child Nutrition Act and National School Lunch Act.
(Public Law 95-171, enacted November 12). Provisions
for exclusions for support and maintenance under the
Disaster Relief and Emergency Assistance Act of 1974
extended on a permanent basis. Effective January 1,
1978.
1980 (Public Law 96-222, enacted April 1). Earned income
tax credit treated as earned income (temporarily
excluded from 1975 through 1980).
(Public Law 96-265, enacted June 9). Remunerations
received in sheltered workshops and work activity cen-

ters are considered earned income and qualify for
earned income exclusions.
Impairment-related work expenses paid by the individual (including cost for attendant care, medical equipment, drugs, and services necessary to control an
impairment) are deducted from earnings when determining if an individual is engaging in substantial gainful
activity. Impairment-related work expenses are
excluded in calculating income for benefit purposes if
initial eligibility for benefits exists on the basis of countable income without applying this exclusion.
1981 (Public Law 97-35, enacted August 13). Modifies provision under which irregularly or infrequently received
income is excluded to conform to change from quarterly to monthly accounting; amounts excludable: $20
or less of unearned income and $10 of earned income
in a month.
1982 (Public Law 97-377, enacted December 21). From
December 18, 1982, to September 30, 1983, certain
home energy assistance payments are excluded if a
state agency certified that they are based on need.
1983 (Public Law 97-424, enacted January 6). Support or
maintenance assistance (including home energy assistance) provided in kind by a nonprofit organization or in
cash or in kind by certain providers of home energy is
excluded if the state determines that the assistance is
based on need. Provision is applicable through September 1984.
Certain home energy assistance payments are
excluded if a state agency certified that the assistance
is based on need. Provision is applicable through June
1985.
1984 (Public Law 98-369, enacted July 18). The 1983 provisions for support and maintenance and home energy
assistance continue to October 1, 1987.

1989 (Public Law 101-239, enacted December 19). Interest
on agreements representing the purchase of an
excluded burial space.
Payments from the Agent Orange Settlement.
Value of a ticket for domestic travel received as a gift
and not cashed.
1990 (Public Law 101-508, enacted November 5). Earned
income tax credit (including the child health insurance
portion).
Payments received from a state-administered fund
established to aid victims of crime.
Impairment-related work expenses excluded from
income in determining initial eligibility for benefits.
Payments received as state or local government relocation assistance.
Payments received under the Radiation Exposure
Compensation Act.
Redefines as earned income, royalties earned in connection with any publication of the individual’s work and
honoraria received for services rendered (previously
defined as unearned income).
1993 (Public Law 103-66, enacted August 10). Hostile fire
pay to members of the uniformed services.
Payments received as state or local government relocation assistance made permanent.
1994 (Public Law 103-286, enacted August 1). Payments
to victims of Nazi persecution.
1998 (Public Law 105-285, enacted October 27). Funds
made available to an SSI recipient by a state or local
government or a nonprofit organization as part of the
Individual Development Account demonstration
project.

1986 (Public Law 99-498, enacted October 17). Educational assistance used for educational expenses under
the Higher Education Act of 1965 as amended.

(Public Law 105-306, enacted October 28). In-kind gifts
to children with life-threatening conditions by taxexempt organizations not converted to cash.

1987 (Public Law 100-203, enacted December 22). The
1983 provisions for support and maintenance and
home energy assistance made permanent.

The first $2,000 annually of cash gifts by tax-exempt
organizations to, or for the benefit of, individuals under
age 18 with life-threatening conditions.

Excludes death payments (for example, proceeds from
life insurance) from SSI income determinations to the
extent they were spent on last illness and burial.
Modifies the 1982 resource exclusion for burial funds to
extend the exclusion to any burial fund of $1,500 or
less maintained separately from all other assets,
thereby allowing interest to be excluded from income if
retained in the fund.
1988 (Public Law 100-383, enacted August 10). Restitution
payments made to Japanese internees and relocated
Aleutians.

(Public Law 105-369, enacted November 12). Payments made under the Ricky Ray Hemophilia Relief
Fund Act of 1998.
2000 (Public Law 106-554, enacted December 21). Interest
on funds deposited in an individual development
account.
Any adjustments made to prior payments from other
federal programs to account for the error in the computation of the consumer price index during 1999.

Annual Statistical Supplement, 2003 ♦ 27

2001 (Public Law 107-16, enacted June 7). The refundable
child tax credit is excluded in determining eligibility for
means-tested programs, including SSI.
Resources
1972 (Public Law 92-603, enacted October 30). Countable
resources limited to $1,500 or less for an individual and
to $2,250 or less for a couple.
1984 (Public Law 98-369, enacted July 18). Limit on countable resources raised by $100 a year for individuals
and $150 a year for couples, beginning in calendar
year 1985 through 1989. The respective limits would
become $2,000 for an individual and $3,000 for a couple in 1989 and thereafter.
1999 (Public Law 106-169, enacted December 14).
Includes generally in the countable resources of an
individual the assets of a trust which could be used for
the benefit of the individual or spouse.
General Exclusions
1972 (Public Law 92-603, enacted October 30). A home of
reasonable value—established by regulation as not
exceeding a fair-market value of $25,000 ($35,000 in
Alaska and Hawaii).
Personal effects and household goods of reasonable
value established by regulation as not exceeding a
total market value of $1,500.
An automobile of reasonable value—established by
regulation as not exceeding a market value of $1,200.
An automobile may be excluded, regardless of value, if
the individual’s household uses it for employment or
medical treatment or if it is modified to be operated by
or for transportation of a handicapped person.
Life insurance with face value of $1,500 or less.
1976 (Public Law 94-569, enacted October 20). The recipient’s home, regardless of value, is excluded from consideration in determining resources.
1977 (Public Law 95-171, enacted November 12). Assistance received under the Disaster Relief and Emergency Assistance Act of 1974 for 9 months following
receipt.
1979. Reasonable value for an automobile increased by
regulation to $4,500 of current-market value; personal
goods and household effects increased to $2,000 of
equity value.
1982 (Public Law 97-248, enacted September 3). The
value, within prescribed limits, of a burial space for the
recipient, spouse, and immediate family is excluded. In
addition, $1,500 each (less the value of already
excluded life insurance and any amount in an irrevoca-

28 ♦ Annual Statistical Supplement, 2003

ble burial arrangement) may be set aside for the burial
of the recipient and spouse.
1984 (Public Law 98-369, enacted July 18). The unspent
portion of any retroactive Title II or Title XVI payment is
excluded for 6 months following its receipt, and the
individual must be given written notice of the time limit
on the exclusion.
1985. Regulations permit exclusion, regardless of value, of
an automobile needed for essential transportation or
modified for a handicapped person. The $4,500 current
market value limit applies only if no automobile could
be excluded based on the nature of its use.
1987 (Public Law 100-203, enacted December 22). Provides for suspension of the 1980 transfer of assets provision, in any month that it is determined that undue
hardship would result.
Real property that cannot be sold for the following reasons: it is jointly owned; its sale would cause the other
owner(s) undue hardship due to loss of housing; its
sale is barred by a legal impediment; or the owner’s
reasonable efforts to sell have been unsuccessful.
Temporarily extends the 1984 exclusion of retroactive
Title II and Title XVI benefits from 6 months to 9 months
(the longer exclusion applies to benefits paid in fiscal
years 1988 and 1989).
1988 (Public Law 100-707, enacted November 23).
Removes the time limit for exclusion of disaster assistance.
Special Exclusions
1972 (Public Law 92-603, enacted October 30). Assets of a
blind or disabled individual that are necessary to an
approved plan of self-support.
Tools and other property essential to self-support
(PESS), within reasonable limits. Shares of nonnegotiable stock in regional or village corporations held by
natives of Alaska.
For persons transferred from state programs to SSI,
resource exclusions equal to the maximum amount
permitted as of October 1972 under the state program.
1988 (Public Law 100-383, enacted August 10). Restitution
payments made to Japanese internees and relocated
Aleutians.
1989 (Public Law 101-239, enacted December 19). Specifies that no limitation can be placed on property essential to self-support used in a trade or business, or by an
individual as an employee (including the tools of a
tradesperson and the machinery and livestock of a
farmer).
Payments from the Agent Orange Settlement.

1990 (Public Law 101-508, enacted November 5). Earned
income tax credit excluded for the month following the
month the credit is received.
Payments received from a state-administered fund
established to aid victims of crime excluded for a 9month period. Individual not required to file for such
benefits.
Payments received as state or local government relocation assistance excluded for a 9-month period. (The
provision expired 3 years after its effective date.)
Payments received under the Radiation Exposure
Compensation Act.
1993 (Public Law 103-66, enacted August 10). Makes permanent the 9-month exclusion of payments received as
state or local government relocation assistance.
1994 (Public Law 103-286, enacted August 1). Payments
to victims of Nazi persecution.
1996 (Public Law 104-193, enacted August 22). Dedicated
financial institution accounts required to be established
for large past-due benefits for disabled individuals
under age 18 with a representative payee.
1998 (Public Law 105-285, enacted October 27). Funds
made available to an SSI recipient by a state or local
government or a nonprofit organization as part of the
Individual Development Account demonstration
project.
(Public Law 105-306, enacted October 28). In-kind gifts
to children with life-threatening conditions by taxexempt organizations not converted to cash.
The first $2,000 annually of cash gifts by tax-exempt
organizations to, or for the benefit of, individuals under
age 18 with life-threatening conditions.
(Public Law 105-369, enacted November 12). Payments made under the Ricky Ray Hemophilia Relief
Fund Act of 1998.
2000 (Public Law 106-554, enacted December 21). Funds
deposited by an individual in an individual development
account and the interest on those funds.
2001 (Public Law 107-16, enacted June 7). The refundable
child tax credit in the month of receipt and in the following month.
Transfer-of-Assets Penalties
1980 (Public Law 96-611, enacted December 28). Assets
transferred for less than fair market value for the purpose of establishing eligibility for benefits under the
Social Security Act are counted as resources for 24
months after transfer.

1988 (Public Law 100-360, enacted July 1). Removes the
transfer-of-assets penalty for transfers made
July 1, 1988, or later.
1999 (Public Law 106-169, enacted December 14). Provides a penalty under the SSI program for the disposal
of resources at less than fair market value. The penalty
is a loss of benefits for up to 36 months. A formula is
provided to determine the number of months.
Presumptive and Emergency Payments
and Interim Assistance Reimbursement
Presumptive Payments
1972 (Public Law 92-603, enacted October 30). A person
applying on the basis of disability who meets all other
criteria of eligibility, and is likely to be disabled, may
receive payments for 3 months pending the disability
determination.
1976 (Public Law 94-569, enacted October 20). Presumptive payment provision was extended to persons applying on the basis of blindness.
1990 (Public Law 101-508, enacted November 5). Extends
the period for receipt of payments to 6 months.
Emergency Advance Payments
1972 (Public Law 92-603, enacted October 30). Any applicant who can be presumed to meet the criteria of eligibility, but has not yet been determined eligible, and who
is faced with a financial emergency may receive an
immediate cash advance of up to $100.
1987 (Public Law 100-203, enacted December 22).
Increases the maximum emergency advance payment
amount to the maximum amount of the regular federal
SSI monthly benefit rate plus, if any, the federally
administered state supplementary payment.
1996 (Public Law 104-193, enacted August 22). Applicants
who have a financial emergency may receive an emergency advance payment in the month of application,
which, effective with this law, is always prior to the first
month of eligibility. These advance payments are
recouped by proportional reductions in the recipient’s
first 6 months of SSI benefits.
Interim Assistance Reimbursement
1974 (Public Law 93-368, enacted August 7). SSA may
enter into agreements with the states to repay them
directly for assistance payments made to an SSI applicant while his/her claim is being adjudicated. The
repayment is made from the first check due to the individual. This legislation expires June 30, 1976.
1976 (Public Law 94-365, enacted July 14). The authority
to repay the state for interim assistance is made permanent.
Annual Statistical Supplement, 2003 ♦ 29

1987 (Public Law 100-203, enacted December 22).
Extends interim assistance reimbursement to situations
in which payments are made by states or political subdivisions to persons whose SSI payments were suspended or terminated and who subsequently are found
to be eligible for such benefits. Also clarifies that the
payment from which the interim assistance reimbursement is paid must be the first payment of benefits relating to the interim period.
Medicaid Eligibility
1972 (Public Law 92-603, enacted October 30). States can
provide Medicaid coverage to all recipients of SSI payments. Alternatively, they can limit coverage by applying more restrictive criteria from the state Medicaid
plan in effect on January 1, 1972.
States can accept SSA determination of eligibility or
make their own determination.
1976 (Public Law 94-566, enacted October 20). Preserves
the Medicaid eligibility of recipients who become ineligible for cash SSI payments due to the cost-of-living
increases in Social Security benefits.
1980 (Public Law 96-265, enacted June 9). Blind or disabled recipients under age 65 no longer eligible for
either regular or special SSI payments because of their
earnings may retain SSI recipient status for Medicaid
eligibility purposes under the following conditions: (1)
they continue to have the disabling impairment, (2)
they meet all nondisability eligibility criteria except for
earned income, (3) they would be seriously inhibited
from continuing employment without Medicaid services, and (4) their earnings are insufficient to provide a
reasonable equivalent of SSI payments and Medicaid.
In states that do not provide Medicaid coverage categorically to all SSI recipients, qualification for Medicaid
benefits depends on the state’s specific eligibility and
program requirements.
The Medicaid provision of the 1980 legislation was in
effect from January 1, 1981, through December 31,
1983. Under a 1-year demonstration project, beginning
January 1, 1984, this provision was continued for persons already eligible for regular or special SSI payments or for retention of Medicaid eligibility.
1984 (Public Law 98-460, enacted October 9). Medicaid
provision of 1980 legislation extended through June
30, 1987 (retroactive to January 1, 1984).
1986 (Public Law 99-272, enacted April 7). Restores Medicaid eligibility for some disabled widow(er)s who
became ineligible for SSI when their Title II benefits
increased in 1984 because of a change in the Social
Security disabled widow(er)s benefits reduction factor.

30 ♦ Annual Statistical Supplement, 2003

1986 (Public Law 99-643, enacted November 10). The SSI
recipient status for Medicaid eligibility provision of the
1980 amendments is made permanent.
Effective July 1, 1987, certain expenses are excluded
from earnings when determining sufficiency of earnings
to establish SSI recipient status eligibility for Medicaid
purposes:

Impairment-related work expenses of disabled persons,

Work expenses of blind persons,

Income required for achieving an approved selfsupport plan, and

The value of publicly funded attendant care services.

Effective July 1, 1987, preserves the Medicaid eligibility
of recipients who become ineligible for SSI payments
because of entitlement to, or an increase in, Social
Security disabled adult child benefits on or after the
effective date.
Effective July 1, 1987, requires all states to provide
Medicaid coverage for recipients in special SSI status
(either receiving special SSI payments or in the special
recipient status described for 1980) if they received
Medicaid coverage the month before special SSI
status.
1987 (Public Law 100-203, enacted December 22). Effective July 1, 1988, restores or preserves the Medicaid
eligibility of persons aged 60 or older who are eligible
for Social Security benefits as widows or widowers (but
not eligible for Medicare) and who become ineligible for
SSI payments or state supplementation because of the
receipt of old-age or survivors insurance benefits under
Social Security.
1990 (Public Law 101-508, enacted November 5). Age limit
for retention of SSI recipient status for Medicaid eligibility purposes (1980 and subsequent work incentive provisions, above) is eliminated.
Preserves the Medicaid eligibility of SSI recipients who
become ineligible for payments when they become
entitled to Social Security disabled widow(er)s benefits
following the revised definition used for their disability.
1997 (Public Law 105-33, enacted August 5). Requires
states to continue Medicaid coverage for disabled children who were receiving SSI payments as of August
22, 1996 and would have continued to be eligible for
such payments except that their eligibility terminated
because they did not meet the revised SSI childhood
disability standard established under Public Law
104-193.

State Supplementation
1972 (Public Law 92-603, enacted October 30). States are
given the option of providing supplementary payments
both to recipients transferred from the state program
and to those newly eligible for SSI.
States may either administer the payments themselves
or have the Social Security Administration make payments on their behalf. When state supplementary payments are federally administered, the Social Security
Administration makes eligibility and payment determinations for the state and assumes administrative costs.
“Hold harmless” protection, which limits a state’s fiscal
liability to its share of OAA, AB, and APTD expenditures for calendar year 1972, is provided to states
electing federal administration of their supplementary
plans. This provision applies only to supplementary
payments that do not, on the average, exceed a state’s
“adjusted payment level.” (The adjusted payment level
is the average of the payments that individuals with no
other income received in January 1972; it may include
the bonus value of food stamps. Adjustments are provided for payments that had been below state standards.)
1973 (Public Law 93-66, enacted July 9). Provides for mandatory state supplementation as assurance against
reduction of income for persons who received state
assistance in December 1973 and were transferred to
SSI. These supplementary payments must equal the
difference between (1) the amount of the state assistance payment that the individual received in December 1973 plus other income and (2) his/her federal SSI
payment plus other income.
1976 (Public Law 94-585, enacted October 21). After June
30, 1977, when the federal SSI payment level is
increased by a cost-of-living increase, such an
increase will be excluded in calculating the “hold harmless” amount.
Requires states to maintain state supplementation payments at the level of December 1976 (“maintenance of
payments”) or to continue to pay in supplements the
same total annual amounts (“maintenance of expenditures”) when the federal SSI payment level is increased
and thereby pass through any increases in federal benefits without reducing state supplements.
1982 (Public Law 97-248, enacted September 3). Begins a
3-year phase out of “hold harmless” protection. Effective with fiscal year 1985, Wisconsin and Hawaii (the
only remaining “hold harmless” states) assumed the full
cost of their supplementary payments.
1983 (Public Law 98-21, enacted April 20). Federal passthrough law is adjusted (1) by substituting the state
supplementary payment levels in effect in March 1983
for those in effect in December 1976 as the levels that

states must maintain in complying with the passthrough requirements, and (2) with regard to the $20
(individual) and $30 (couple) increase in the federal
SSI standard in July 1983, by requiring states to pass
through only as much as would have been required if
the SSI cost-of-living adjustment had been made in
July 1983.
1987 (Public Law 100-203, enacted December 22). Provides for federal administration of state supplements to
residents of medical institutions.
Provides for required pass through of $5 increase in
federal rate for persons whose care in institutions is
paid in substantial part by Medicaid.
1993 (Public Law 103-66, enacted August 10). Requires
states to pay fees for federal administration of their
state supplementation payments. The fees are $1.67
for each monthly supplementary payment in fiscal year
1994, $3.33 in fiscal year 1995, and $5.00 in fiscal year
1996. Fees for subsequent fiscal years will be $5.00 or
another amount determined by the Commissioner to be
appropriate. The Commissioner may charge the states
additional fees for services they request that are
beyond the level customarily provided in administering
state supplementary payments.
1997 (Public Law 105-33, enacted August 5). Revises the
schedule of per-payment fees for federal administration
of state supplementation for fiscal years 1998 ($6.20)
through 2002 ($8.50) and provides a formula for determining the fee beyond fiscal year 2002.
1999 (Public Law 106-170, enacted December 17). A state
which has an agreement with SSA to administer its
supplementation payments, must remit both payments
and fees prior to the SSI payment date.
2000 (Public Law 106-554, enacted December 21).
Changes the effective date of above provision from
2009 to 2001.
Overpayment Recovery
1984 (Public Law 98-369, enacted July 18). Limits the rate
of recovering overpayments from monthly payments to
the lesser of (1) the monthly payment or (2) 10 percent
of a recipient’s monthly income. Permits a higher or
lower adjustment at the request of the recipient subject
to the agreement of the Commissioner. The limit does
not apply if fraud, willful misrepresentation, or concealment of material information was involved on the part of
the recipient or spouse in connection with the overpayment.
Waives recovery of certain overpayments due to
amount of excess resources of $50 or less.
Provides temporary authority for the recovery of overpayments from tax refunds.

Annual Statistical Supplement, 2003 ♦ 31

1988 (Public Law 100-485, enacted October 13). Grants
permanent authority to recover overpayments from tax
refunds.
1998 (Public Law 105-306, enacted October 28). Authorizes SSA to collect SSI overpayments by offsetting
Social Security benefits, with a maximum monthly offset of no more than 10 percent of the Social Security
benefit.
1999 (Public Law 106-169, enacted December 14). Makes
representative payees liable for an SSI overpayment
caused by a payment made to a recipient who has
died, and requires SSA to establish an overpayment
control record under the representative payee’s Social
Security number.

32 ♦ Annual Statistical Supplement, 2003

Requires SSA to recover SSI overpayments from SSI
lump-sum amounts by withholding at least 50 percent
of the lump-sum payment or the amount of the overpayment, whichever is less.
Extends all of the debt collection authorities currently
available for the collection of overpayments under the
OASDI program to the SSI program.
2001 (Public Law 107-16, enacted June 7). Subjects onetime tax refund payments provided under this Act to
overpayment recovery under tax refund offset provisions.

CONTACT: Paul S. Davies (410) 966-0299.

Medicare
The following are brief summaries of complex subjects.
They should be used only as overviews and general guides
to the Medicare and Medicaid programs. The views
expressed herein do not necessarily reflect the policies or
legal positions of the Centers for Medicare & Medicaid Services or the Department of Health and Human Services
(DHHS). These summaries do not render any legal,
accounting, or other professional advice, nor are they
intended to explain fully all of the provisions or exclusions
of the relevant laws, regulations, and rulings of the Medicare and Medicaid programs. Original sources of authority
should be researched and utilized.3

Overview
Title XVIII of the Social Security Act, designated "Health
Insurance for the Aged and Disabled," is commonly known
as Medicare. As part of the Social Security Amendments of
1965, the Medicare legislation established a health insurance program for aged persons to complement the retirement, survivors, and disability insurance benefits under
Title II of the Social Security Act.
When first implemented in 1966, Medicare covered
most persons age 65 or over. In 1973, the following groups
also became eligible for Medicare benefits: persons entitled
to Social Security or Railroad Retirement disability cash
benefits for at least 24 months, most persons with endstage renal disease (ESRD), and certain otherwise noncovered aged persons who elect to pay a premium for
Medicare coverage. The Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act of 2000 (Public
Law 106-554) allowed persons with Amyotrophic Lateral
Sclerosis (Lou Gehrig's Disease) to waive the 24-month
waiting period.
Medicare has traditionally consisted of two parts: Hospital Insurance (HI), also known as Part A, and Supplementary Medical Insurance (SMI), also known as Part B. A new,
third part of Medicare, sometimes known as Part C, is the
Medicare+Choice program, which was established by the
Balanced Budget Act (BBA) of 1997 (Public Law 105-33)
and which expanded beneficiaries' options for participation
in private-sector health care plans. When Medicare began
on July 1, 1966, approximately 19 million people enrolled.
In 2003, over 41 million people are enrolled in one or both
of Parts A and B of the Medicare program, and 5 million of
them have chosen to participate in a Medicare+Choice
plan.
3. These summaries were prepared by Earl Dirk Hoffman, Jr., Barbara S.
Klees, and Catherine A. Curtis, Office of the Actuary, Centers for Medicare
& Medicaid Services, 7500 Security Blvd., Baltimore, MD 21244. The
authors wish to express their gratitude to Mary Onnis Waid, who originated these summaries and diligently prepared them for many years prior
to her retirement.

Coverage
Hospital Insurance (HI) is generally provided automatically,
and free of premiums, to persons age 65 or over who are
eligible for Social Security or Railroad Retirement benefits,
whether they have claimed these monthly cash benefits or
not. Also, workers and their spouses with a sufficient period
of Medicare-only coverage in federal, state, or local government employment are eligible beginning at age 65. Similarly, individuals who have been entitled to Social Security
or Railroad Retirement disability benefits for at least 24
months, and government employees with Medicare-only
coverage who have been disabled for more than 29
months, are entitled to HI benefits. HI coverage is also provided to insured workers with end-stage renal disease
(ESRD) (and to insured workers' spouses and children with
ESRD), as well as to some otherwise ineligible aged and
disabled beneficiaries who voluntarily pay a monthly premium for their coverage. In 2002, the HI program provided
protection against the costs of hospital and specific other
medical care to about 40 million people (34 million aged
and 6 million disabled enrollees). HI benefit payments
totaled $149.9 billion in 2002.
The following health care services are covered under
Medicare's HI program:

Inpatient hospital care coverage includes costs of a
semi-private room, meals, regular nursing services,
operating and recovery rooms, intensive care, inpatient
prescription drugs, laboratory tests, X-rays, psychiatric
hospitals, inpatient rehabilitation, and long-term care
(LTC) hospitalization when medically necessary, as
well as all other medically necessary services and supplies provided in the hospital. An initial deductible payment is required of beneficiaries who are admitted to a
hospital, plus copayments for all hospital days following
day 60 within a benefit period (described later).

Skilled nursing facility (SNF) care is covered by HI only
if it follows within 30 days (generally) of a hospitalization of 3 days or more and is certified as medically necessary. Covered services are similar to those for
inpatient hospital but also include rehabilitation services and appliances. The number of SNF days provided under Medicare is limited to 100 days per benefit
period (described later), with a copayment required for
days 21–100. HI does not cover nursing facility care if
the patient does not require skilled nursing or skilled
rehabilitation services.

Home health agency (HHA) care is covered by both HI
and SMI. The BBA transferred from HI to SMI those
home health services furnished on or after January 1,
1998, that are unassociated with a hospital or skilled
nursing facility stay. HI will continue to cover the first

Annual Statistical Supplement, 2003 ♦ 33

100 visits following a 3-day hospital stay or a skilled
nursing facility stay; SMI covers any visits thereafter.
Home health care under HI and SMI has no copayment
and no deductible.
HHA care, including care provided by a home health
aide, may be furnished part-time by a HHA in the residence of a home-bound beneficiary if intermittent or
part-time skilled nursing or certain other therapy or
rehabilitation care is necessary. Certain medical supplies and durable medical equipment (DME) may also
be provided, though beneficiaries must pay a 20 percent coinsurance for DME, as required under SMI of
Medicare. There must be a plan of treatment and periodical review by a physician. Full-time nursing care,
food, blood, and drugs are not provided as HHA services.

Hospice care is a service provided to terminally ill persons with life expectancies of 6 months or less who
elect to forgo the standard Medicare benefits for treatment of their illness and to receive only hospice care
for it. Such care includes pain relief, supportive medical
and social services, physical therapy, nursing services,
and symptom management. However, if a hospice
patient requires treatment for a condition that is not
related to the terminal illness, Medicare will pay for all
covered services necessary for that condition. The
Medicare beneficiary pays no deductible for the hospice program but does pay small coinsurance amounts
for drugs and inpatient respite care.

An important HI component is the benefit period, which
starts when the beneficiary first enters a hospital and ends
when there has been a break of at least 60 consecutive
days since inpatient hospital or skilled nursing care was
provided. There is no limit to the number of benefit periods
covered by HI during a beneficiary's lifetime; however,
inpatient hospital care is normally limited to 90 days during
a benefit period, and copayment requirements (detailed
later) apply for days 61–90. If a beneficiary exhausts the 90
days of inpatient hospital care available in a benefit period,
he or she can elect to use days of Medicare coverage from
a non-renewable "lifetime reserve" of up to 60 (total) additional days of inpatient hospital care. Copayments are also
required for such additional days.
All citizens (and certain legal aliens) age 65 or over,
and all disabled persons entitled to coverage under HI, are
eligible to enroll in the SMI program on a voluntary basis by
payment of a monthly premium. Almost all persons entitled
to HI choose to enroll in SMI. In 2002, the SMI program
provided protection against the costs of physician and other
medical services to about 38 million people (33 million
aged and 5 million disabled). SMI benefits totaled $111.0
billion in 2002.
The SMI program covers the following services and
supplies:

34 ♦ Annual Statistical Supplement, 2003

Physicians' and surgeons' services, including some
covered services furnished by chiropractors, podiatrists, dentists, and optometrists. Also covered are the
services provided by these Medicare-approved practitioners who are not physicians: certified registered
nurse anesthetists, clinical psychologists, clinical social
workers (other than in a hospital or skilled nursing facility), physician assistants, and nurse practitioners and
clinical nurse specialists in collaboration with a physician.

Services in an emergency room or outpatient clinic,
including same-day surgery, and ambulance services.

Home health care not covered under HI.

Laboratory tests, X-rays, and other diagnostic radiology services, as well as certain preventive care screening tests.

Ambulatory surgical center services in a Medicareapproved facility.

Most physical and occupational therapy and speech
pathology services.

Comprehensive outpatient rehabilitation facility services, and mental health care in a partial hospitalization
psychiatric program, if a physician certifies that inpatient treatment would be required without it.

Radiation therapy; renal (kidney) dialysis and transplants; heart, lung, heart-lung, liver, pancreas, and
bone marrow transplants; and, as of April 2001, intestinal transplants.

Approved durable medical equipment for home use,
such as oxygen equipment and wheelchairs, prosthetic
devices, and surgical dressings, splints, and casts.

Drugs and biologicals that cannot be self-administered,
such as hepatitis B vaccines and immunosuppressive
drugs (certain self-administered anticancer drugs are
covered).

To be covered, all services must be either medically
necessary or one of several prescribed preventive benefits.
SMI services are generally subject to a deductible and
coinsurance (see next section). Certain medical services
and related care are subject to special payment rules,
including deductibles (for blood), maximum approved
amounts (for Medicare-approved physical, speech, or
occupational therapy services performed in settings other
than hospitals), and higher cost-sharing requirements
(such as those for outpatient treatments for mental illness).
It should be noted that some health care services are
not covered by Medicare. Noncovered services include
long-term nursing care, custodial care, and certain other
health care needs, such as dentures and dental care, eyeglasses, hearing aids, and most prescription drugs. These
services are not a part of the Medicare program unless they

are a part of a private health plan under the Medicare+Choice program.
Medicare+Choice (Part C) is an expanded set of
options for the delivery of health care under Medicare.
While all Medicare beneficiaries can receive their benefits
through the original fee-for-service (FFS) program, most
beneficiaries enrolled in both HI and SMI can choose to
participate in a Medicare+Choice plan instead. Organizations that seek to contract as Medicare+Choice plans must
meet specific organizational, financial, and other requirements. Following are the primary Medicare+Choice plans:

Coordinated care plans, which include health maintenance organizations (HMOs), provider-sponsored
organizations (PSOs), preferred provider organizations
(PPOs), and other certified coordinated care plans and
entities that meet the standards set forth in the law.

Private, unrestricted FFS plans, which allow beneficiaries to select certain private providers. For those providers who agree to accept the plan's payment terms
and conditions, this option does not place the providers
at risk, nor does it vary payment rates based on utilization.

These Medicare+Choice plans are required to provide
at least the current Medicare benefit package, excluding
hospice services. Plans may offer additional covered services and are required to do so (or return excess payments) if plan costs are lower than the Medicare payments
received by the plan.

Program Financing, Beneficiary Liabilities,
and Provider Payments
All financial operations for Medicare are handled through
two trust funds, one for the Hospital Insurance (HI) program
and one for the Supplementary Medical Insurance (SMI)
program. These trust funds, which are special accounts in
the U.S. Treasury, are credited with all receipts and
charged with all expenditures for benefits and administrative costs. The trust funds cannot be used for any other
purpose. Assets not needed for the payment of costs are
invested in special Treasury securities. The following sections describe Medicare's financing provisions, beneficiary
cost-sharing requirements, and the basis for determining
Medicare reimbursements to health care providers.
Program Financing
The HI program is financed primarily through a mandatory
payroll tax. Almost all employees and self-employed workers in the United States work in employment covered by the
HI program and pay taxes to support the cost of benefits for
aged and disabled beneficiaries. The HI tax rate is 1.45
percent of earnings, to be paid by each employee and a
matching amount by the employer for each employee, and
2.90 percent for self-employed persons. Beginning in 1994,

this tax is paid on all covered wages and self-employment
income without limit. (Prior to 1994, the tax applied only up
to a specified maximum amount of earnings.) The HI tax
rate is specified in the Social Security Act and cannot be
changed without legislation.
The HI trust fund also receives income from the following sources: (1) a portion of the income taxes levied on
Social Security benefits paid to high-income beneficiaries;
(2) premiums from certain persons who are not otherwise
eligible and choose to enroll voluntarily; (3) reimbursements from the general fund of the U.S. Treasury for the
cost of providing HI coverage to certain aged persons who
retired when the HI program began and thus were unable
to earn sufficient quarters of coverage (and those federal
retirees similarly unable to earn sufficient quarters of Medicare-qualified federal employment); (4) interest earnings on
its invested assets; and (5) other small miscellaneous
income sources. The taxes paid each year are used mainly
to pay benefits for current beneficiaries.
The SMI program is financed through premium payments ($66.60 per beneficiary per month in 2004) and contributions from the general fund of the U.S. Treasury.
Beneficiary premiums are generally set at a level that covers 25 percent of the average expenditures for aged beneficiaries. Therefore, the contributions from the general fund
of the U.S. Treasury are the largest source of SMI income.
The SMI trust fund also receives income from interest earnings on its invested assets, as well as a small amount of
miscellaneous income. Beneficiary premiums and general
fund payments are redetermined annually, to match estimated program costs for the following year.
Capitation payments to Medicare+Choice plans are
financed from the HI and SMI trust funds in proportion to
the relative weights of HI and SMI benefits to the total benefits paid by the Medicare program.
Beneficiary Payment Liabilities
Fee-for-service beneficiaries are responsible for charges
not covered by the Medicare program and for various costsharing aspects of both HI and SMI. These liabilities may
be paid (1) by the Medicare beneficiary; (2) by a third party,
such as an employer-sponsored retiree health plan or private "Medigap" insurance; or (3) by Medicaid, if the person
is eligible. The term "Medigap" is used to mean private
health insurance that pays, within limits, most of the health
care service charges not covered by Parts A or B of Medicare. These policies, which must meet federally imposed
standards, are offered by Blue Cross and Blue Shield (BC/
BS) and various commercial health insurance companies.
For beneficiaries enrolled in Medicare+Choice plans,
the beneficiary's payment share is based on the cost-sharing structure of the specific plan selected by the beneficiary, since each plan has its own requirements. Most plans
have lower deductibles and coinsurance than are required

Annual Statistical Supplement, 2003 ♦ 35

of fee-for-service beneficiaries. Such beneficiaries pay the
monthly Part B premium and may, depending on the plan,
pay an additional plan premium.
For hospital care covered under HI, a fee-for-service
beneficiary's payment share includes a one-time deductible
amount at the beginning of each benefit period ($876 in
2004). This deductible covers the beneficiary's part of the
first 60 days of each spell of inpatient hospital care. If continued inpatient care is needed beyond the 60 days, additional coinsurance payments ($219 per day in 2004) are
required through the 90th day of a benefit period. Each HI
beneficiary also has a "lifetime reserve" of 60 additional
hospital days that may be used when the covered days
within a benefit period have been exhausted. Lifetime
reserve days may be used only once, and coinsurance
payments ($438 per day in 2004) are required.
For skilled nursing care covered under HI, Medicare
fully covers the first 20 days of SNF care in a benefit
period. But for days 21–100, a copayment ($109.50 per
day in 2004) is required from the beneficiary. After 100
days of SNF care per benefit period, Medicare pays nothing for SNF care. Home health care has no deductible or
coinsurance payment by the beneficiary. In any HI service,
the beneficiary is responsible for fees to cover the first 3
pints or units of nonreplaced blood per calendar year. The
beneficiary has the option of paying the fee or of having the
blood replaced.
There are no premiums for most people covered by the
HI program. Eligibility is generally earned through the work
experience of the beneficiary or of his or her spouse. However, most aged people who are otherwise ineligible for
premium-free HI coverage can enroll voluntarily by paying
a monthly premium, if they also enroll in SMI. For people
with fewer than 30 quarters of coverage as defined by SSA,
the 2004 HI monthly premium rate is $343; for those with
30 to 39 quarters of coverage, the rate is reduced to $189.
Voluntary coverage upon payment of the HI premium, with
or without enrolling in SMI, is also available to disabled
individuals for whom cash benefits have ceased due to
earnings in excess of those allowed for receiving cash benefits.
For SMI, the beneficiary's payment share includes the
following: one annual deductible (currently $100); the
monthly premiums; the coinsurance payments for SMI services (usually 20 percent of the medically allowed
charges); a deductible for blood; certain charges above the
Medicare-allowed charge (for claims not on assignment);
and payment for any services that are not covered by Medicare. For outpatient mental health treatment services, the
beneficiary is liable for 50 percent of the approved charges.
Provider Payments
For HI, before 1983, payments to providers were made on
a reasonable cost basis. Medicare payments for most in-

36 ♦ Annual Statistical Supplement, 2003

patient hospital services are now made under a reimbursement mechanism known as the prospective payment system (PPS). Under PPS, a specific predetermined amount is
paid for each inpatient hospital stay, based on each stay's
diagnosis-related group (DRG) classification. In some
cases the payment the hospital receives is less than the
hospital's actual cost for providing the HI-covered inpatient
hospital services for the stay; in other cases it is more. The
hospital absorbs the loss or makes a profit. Certain payment adjustments exist for extraordinarily costly inpatient
hospital stays. Payments for skilled nursing care, home
health care, inpatient rehabilitation, and long-term hospital
care are made under separate prospective payment systems. Payments for psychiatric hospital care are currently
reimbursed on a reasonable cost basis, but a prospective
payment system is expected to be implemented in the near
future, as required by the Balanced Budget Act (BBA).
For SMI, before 1992, physicians were paid on the
basis of reasonable charge. This amount was initially
defined as the lowest of (1) the physician's actual charge;
(2) the physician's customary charge; or (3) the prevailing
charge for similar services in that locality. Beginning January 1992, allowed charges were defined as the lesser of (1)
the submitted charges, or (2) the amount determined by a
fee schedule based on a relative value scale (RVS). Payments for DME and clinical laboratory services are also
based on a fee schedule. Most hospital outpatient services
are reimbursed on a prospective payment system, and
home health care is reimbursed under the same prospective payment system as HI.
If a doctor or supplier agrees to accept the Medicareapproved rate as payment in full ("takes assignment"), then
payments provided must be considered as payments in full
for that service. The provider may not request any added
payments (beyond the initial annual deductible and coinsurance) from the beneficiary or insurer. If the provider
does not take assignment, the beneficiary will be charged
for the excess (which may be paid by Medigap insurance).
Limits now exist on the excess that doctors or suppliers can
charge. Physicians are "participating physicians" if they
agree before the beginning of the year to accept assignment for all Medicare services they furnish during the year.
Since Medicare beneficiaries may select their doctors, they
have the option to choose those who participate.
Medicare payments to Medicare+Choice plans are
based on a blend of local and national capitated rates, generally determined by the capitation payment methodology
described in section 1853 of the Social Security Act. Actual
payments to plans vary based on demographic characteristics of the enrolled population. New "risk adjusters" based
on demographics and health status are currently being
phased in to better match Medicare capitation payments to
the expected costs of individual beneficiaries.

Claims Processing
Medicare's HI and SMI fee-for-service claims are processed by non-government organizations or agencies that
contract to serve as the fiscal agent between providers and
the federal government. These claims processors are
known as intermediaries and carriers. They apply the Medicare coverage rules to determine the appropriateness of
claims.
Medicare intermediaries process HI claims for institutional services, including inpatient hospital claims, SNFs,
HHAs, and hospice services. They also process outpatient
hospital claims for SMI. Examples of intermediaries are BC/
BS (which utilize their plans in various states) and other
commercial insurance companies. Intermediaries' responsibilities include the following:

Determining costs and reimbursement amounts.

Maintaining records.

Establishing controls.

Safeguarding against fraud and abuse or excess use.

Conducting reviews and audits.

Making the payments to providers for services.

Assisting both providers and beneficiaries as needed.

Medicare carriers handle SMI claims for services by
physicians and medical suppliers. Examples of carriers are
the BS plans in a state, and various commercial insurance
companies. Carriers' responsibilities include the following:

Determining charges allowed by Medicare.

Maintaining quality-of-performance records.

Assisting in fraud and abuse investigations.

Assisting both suppliers and beneficiaries as needed.

Making payments to physicians and suppliers for services that are covered under SMI.

Quality improvement organizations (QIOs; formerly
called peer review organizations, or PROs) are groups of
practicing health care professionals who are paid by the
federal government to generally oversee the care provided
to Medicare beneficiaries in each state and to improve the
quality of services. QIOs educate other health care professionals and assist in the effective, efficient, and economical
delivery of health care services to the Medicare population.
The ongoing effort to combat monetary fraud and abuse in
the Medicare program was intensified after enactment of
the Health Insurance Portability and Accountability Act of
1996 (Public Law 104-191), which created the Medicare
Integrity Program. Prior to this 1996 legislation, CMS was
limited by law to contracting with its current carriers and fiscal intermediaries to perform payment safeguard activities.

The Medicare Integrity Program provided CMS with stable,
increasing funding for payment safeguard activities, as well
as new authorities to contract with entities to perform specific payment safeguard functions.

Administration
The Department of Health and Human Services (HHS) has
the overall responsibility for administration of the Medicare
program. Within HHS, responsibility for administering Medicare rests with CMS. SSA assists, however, by initially
determining an individual's Medicare entitlement, by withholding Part B premiums from the Social Security benefit
checks of beneficiaries, and by maintaining Medicare data
on the master beneficiary record, which is SSA's primary
record of beneficiaries. The Internal Revenue Service in
the Department of the Treasury collects the HI payroll taxes
from workers and their employers.
A Board of Trustees, composed of two appointed members of the public and four members who serve by virtue of
their positions in the federal government, oversees the
financial operations of the HI and SMI trust funds. The Secretary of the Treasury is the managing trustee. The Board
of Trustees reports to Congress on the financial and actuarial status of the Medicare trust funds on or about the first
day of April each year.
State agencies (usually state Health Departments
under agreements with CMS) identify, survey, and inspect
provider and supplier facilities and institutions wishing to
participate in the Medicare program. In consultation with
CMS, these agencies then certify the facilities that are qualified.

Data Summary
The Medicare program covers 95 percent of our nation's
aged population, as well as many people who are on Social
Security because of disability. In 2002, HI covered about 40
million enrollees with benefit payments of $149.9 billion,
and SMI covered about 38 million enrollees with benefit
payments of $111.0 billion. Administrative costs were under
2 percent of HI and under 2 percent of SMI disbursements
for 2002. Total disbursements for Medicare in 2002 were
$265.7 billion.
Note: Medicare enrollment data are based on estimates
prepared for the 2003 annual report of the Medicare Board
of Trustees to Congress (available on the Web at http://
www.cms.hhs.gov/publications/trusteesreport). Medicare
benefits, administrative costs, and total disbursements for
2002 are actual amounts for the calendar year, as reported
by the Department of the Treasury.

CONTACT: Clare McFarland (410) 786-6390.

Annual Statistical Supplement, 2003 ♦ 37

Medicare: History of Provisions
Insured Status

1986. Mandatory coverage for state and local government
employees not covered under Social Security and
hired after March 31, 1986.

Entitlement to Hospital Insurance Benefits

1987. Second waiting period eliminated if a former disabled
beneficiary becomes entitled again (no time limit).

1965. Individual aged 65 or older entitled to monthly benefits under the Social Security or Railroad Retirement
program, or aged 65 before 1968, or 3 quarters of coverage (QC) after 1965 and before attainment of age 65.
1967. 3 QC for each year after 1966 and before attainment
of age 65.
1972. Disabled individual, under age 65, entitled to disability benefits for 24 consecutive months under the Social
Security or Railroad Retirement program (excludes
spouses and children of disabled individuals). Individual under age 65 who has end stage renal disease
(ESRD) and who is either fully or currently insured, or
is entitled to monthly benefits under the Social Security
or Railroad Retirement program or is the spouse or
dependent child of such an insured individual or beneficiary. Entitlement begins on the first day of the third
month following the initiation of a course of renal dialysis and ends with the 12th month following the month in
which either the dialysis terminates or the individual
has a renal transplant.
Individual aged 65 or older enrolled in the SMI program
who is not otherwise entitled to HI benefits, upon voluntary participation with payment of Hospital Insurance
premium.
1980. Individual who would be entitled to monthly benefits
under the Social Security or Railroad Retirement program if application were made.
Disabled individual under age 65 entitled to disability
benefits for at least 24 months, not necessarily consecutive, under the Social Security or Railroad Retirement
program.
Medicare coverage extended for up to 36 months for
disabled individuals whose disability continues, but
whose monthly benefit ceased because they engaged
in substantial gainful activity.

1989. Disabled individuals under age 65 who are no longer
entitled to Social Security disability benefits because
their earnings exceeded the substantial gainful activity
level have the option to purchase Medicare coverage
by paying the HI and SMI premiums.
2000. The 24-month waiting period (otherwise required for
an individual to establish Medicare eligibility on the
basis of a disability) is waived for persons with amyotrophic lateral sclerosis, effective July 1, 2001.
Entitlement to Supplementary Medical Insurance
Benefits
1965. U.S. resident (citizen or lawfully admitted alien with 5
years continuous residence) aged 65 or older or any
individual entitled to HI benefits, upon voluntary participation with payment of SMI premium.
1972. Individual under age 65 entitled to HI benefits, upon
voluntary participation with payment of SMI premium.
Medicare Benefits
HI and SMI
1965. Requires that Medicare be secondary payer to benefits provided by liability insurance policies or under nofault insurance.
1981. Requires that Medicare be secondary payer to
employer-based group health plans for beneficiaries
entitled to Medicare solely due to end stage renal disease (ESRD) for up to 12 months.
1982. For workers and their spouses aged 65-69, Medicare
is the secondary payer when benefits are provided
under an employer-based group health plan (applicable to employers with 20 or more employees who sponsor or contribute to the group plan).

Second waiting period eliminated if a former disabledworker beneficiary becomes entitled again within 5
years (7 years for disabled widows and widowers and
disabled children aged 18 or older).

Health maintenance organizations (HMOs) will be
authorized as providers of benefits. The Secretary of
Health and Human Services must certify the prospective payment mechanism for HMOs before implementation.

1982. Federal employees covered under HI based on QC
for earnings as federal employees and/or based on
deemed QC for earnings as federal employees before
1983.

1984. Medicare secondary payer provisions are extended
to spouses aged 65-69 of workers under age 65 whose
employer-based group health plan covers such
spouses.

1983. Employees of nonprofit organizations, effective
January 1, 1984.

For HMOs, includes medical and other health services
furnished by clinical psychologists.
1985. Provides payment for liver transplant services.

38 ♦ Annual Statistical Supplement, 2003

1986. Extends the working age secondary payer provision
to cover workers and their spouses beyond age 69.
For HMOs that offered organ transplants as a basic
health service on April 15, 1985, such services may be
offered from October 1, 1985, through April 1, 1988.
For disabled individuals who are covered by employerbased health plans (with at least 100 employees),
Medicare is the secondary payer, effective for 19871991.
1987. Requires HMOs/competitive medical plans that
cease to contract with Medicare to provide or arrange
supplemental coverage of benefits related to preexisting conditions for the lesser of 6 months or the duration
of an exclusion period.
Specifies in law that in order to be eligible for home
health care, a Medicare beneficiary must have a
restricted ability to leave the home, requiring the assistance of another or the aid of a supportive device (such
as crutches, a cane, a wheelchair, or a walker).
Clarifies that the secondary payer provision for disabled individuals covered under employer-based
health plans for employers with at least 500 employees
applies to employers who are government entities.
1990. Requires that Medicare be the secondary payer to
employer-based group health plans for beneficiaries
entitled to Medicare solely due to ESRD for up to 18
months (extended from 12 months), effective February
1, 1991, to January 1, 1996.
The secondary payer provision for disabled beneficiaries covered under large employer plans (see 1986);
effective through September 30, 1995.
1993. The secondary payer provision for disabled beneficiaries covered under large employer plans is effective
through September 30, 1998.
The secondary payer provision for beneficiaries with
ESRD applies to all beneficiaries with end stage renal
disease, not only those entitled to Medicare solely on
the basis of it. The extension to include the first 18
months of an individual's entitlement on the basis of
ESRD is effective through September 30, 1998.
1997. Established an expanded set of options for the delivery of health care under Medicare, referred to as Medicare+Choice. All Medicare beneficiaries can receive
their Medicare benefits through the original fee-for-service program. In addition, most beneficiaries can
choose instead to receive their Medicare benefits
through one of the following Medicare+Choice plans:
(1) coordinated care plans (such as HMOs, providersponsored organizations, and preferred provider organizations); (2) Medical Savings Account (MSA)/High
Deductible plans (through a demonstration available
for up to 390,000 beneficiaries); or (3) private fee-for-

service plans. Except for MSA plans, all Medicare+Choice plans are required to provide the current
Medicare benefit package (excluding hospice services)
and any additional health services required under the
adjusted community rate (ACR) process. MSA plans
provide Medicare benefits after a single high deductible
is met, and enrollees receive an annual deposit in their
Medical Savings Account. Transition rules for current
Medicare HMO program also provided.
The provision making Medicare the secondary payer
for disabled beneficiaries covered under large
employer plans, previously scheduled to expire September 30, 1998, made permanent.
The provision making Medicare secondary payer for
the first 12 months of entitlement due to ESRD, which
had been extended on a temporary basis (through
September 30, 1998) to include the first 18 months of
entitlement, has been extended, permanently, to
include the first 30 months of entitlement on the basis
of ESRD.
Hospital Insurance
1965. In each benefit period, inpatient hospital services, 90
days. Includes semiprivate accommodations, operating
room, hospital equipment (including renal dialysis), laboratory tests and X-ray, drugs, dressings, general nursing services, and services of interns and residents in
medical osteopathic or dentistry training. Inpatient psychiatric hospital care limited to 190-day lifetime maximum. Outpatient hospital diagnostic services. Posthospital extended-care services, 100 days (including
physical, occupational, and speech therapy). Post-hospital home health services, 100 visits. Deductible and
coinsurance provisions (see Table 2.C1).
1967. Lifetime reserve of 60 additional days of inpatient
hospital services. Outpatient hospital diagnostic services transferred to SMI.
1972. Services of interns and residents in podiatry training.
1980. Unlimited home health visits in a year. Requirement
for prior hospitalization eliminated. Home health services provided for up to 4 days a week and up to 21
consecutive days.
Alcohol detoxification facility services.
1981. Part A coinsurance is based on the deductible for the
calendar year in which services are received rather
than the deductible in effect at the time the beneficiary's spell of illness began, starting in 1982.
Alcohol detoxification facility services eliminated.
1982. Beneficiaries expected to live 6 months or less may
elect to receive hospice care benefits instead of other
Medicare benefits. May elect maximum of two 90-day

Annual Statistical Supplement, 2003 ♦ 39

and one 30-day hospice care periods, effective November 1, 1983, to October 1, 1986.
1984. For durable medical equipment provided by home
health agencies, the payment amount is reduced from
100 percent of costs to 80 percent of reasonable
charges.
1986. Set the Part A deductible for 1987 at $520 with
resulting increases in cost sharing. Increased the Part
A deductible annually by the applicable percentage
increase in the hospital prospective payment rates.
Hospice care benefit (enacted in 1982) made permanent.
1987. Specifies in law that in order to be eligible for home
health care, a Medicare beneficiary must have a
restricted ability to leave the home, requiring the assistance of another or the aid of a supportive device (such
as crutches, a cane, a wheelchair, or a walker).
1988. Enrollee pays annual hospital deductible (set at $560
for 1989) and Medicare pays balance of covered
charges, regardless of the number of days of hospitalization (except for psychiatric hospital care, which is
still limited by 190-day lifetime maximum).

1997. Home health services not associated with a hospital
or skilled nursing facility stay for individuals enrolled in
both HI and SMI are transferred from the HI program to
the SMI program, effective January 1998. The HI program will continue to cover the first 100 visits following
a hospital stay of at least 3 consecutive days or a
skilled-nursing facility stay. The cost to the SMI trust
fund of the transferred services will phase in over a 6year period (that is, the HI trust fund will transfer funds
to the SMI trust fund during that period).
Limits on the number of hours and days that home
health care can be provided have been clarified. "Part
time" now defined as skilled nursing and home health
aide services (combined) furnished any number of
days per week, for less than 8 hours per day and 28 or
fewer hours per week. "Intermittent" now defined as
skilled nursing care provided for fewer than 7 days
each week, or less than 8 hours each day (combined)
for 21 days or less.
Hospice benefit periods are restructured to include two
90-day periods, followed by an unlimited number of 60day periods.

All 1988 provisions became effective January 1, 1989.

Medicare coverage provided for a number of prevention initiatives, most of which covered under SMI program. HI program affected mainly by two of the
initiatives: (1) annual prostate cancer screening for
male beneficiaries aged 50 or older, effective January
1, 2000; and (2) colorectal screening procedures,
including fecal-occult blood tests and flexible sigmoidoscopies, for beneficiaries age 50 or older, colonoscopy
for beneficiaries at high risk for colorectal cancer, and
other procedures, including screening barium enemas
under certain circumstances.

1989. The spell of illness and benefit period coverage of
laws prior to 1988 return to the determination of inpatient hospital benefits in 1990 and later. After the
deductible is paid in benefit period, Medicare pays 100
percent of covered costs for the first 60 days of inpatient hospital care. Coinsurance applies for the next 30
days in a benefit period.

2000. The homebound benefit is clarified to specify that
beneficiaries who require home health services may
attend adult day-care for therapeutic, psychosocial, or
medical treatment and still remain eligible for the home
health benefit. Homebound beneficiaries may also
attend religious services without being disqualified from
receiving home health benefits.

The requirement for a prior hospital stay of 3 or more
consecutive days is reinstated for skilled nursing facility
services. Coverage returns to 100 days post-hospital
care per spell of illness with a daily coinsurance rate in
effect for days 21 through 100.

Effective July 1, 2001, the 24-month waiting period
(otherwise required for an individual to establish Medicare eligibility on the basis of a disability) is waived for
persons with amyotrophic lateral sclerosis. The entitlement to Medicare begins with the first month of the
Social Security Administration’s determination of eligibility for Disability Insurance benefits.

The number of days in a skilled nursing facility
changed to 150 per year. Deletes the requirement for a
prior hospital stay of 3 or more consecutive days.
Expands home health care to provide care for less than
7 days per week and up to 38 consecutive days.
Hospice care extended beyond 210 days when beneficiary is certified as terminally ill.

Home health services return to a limit of 21 consecutive days of care. Provision providing for home health
care for fewer than 7 days per week continued due to a
court decision.
Hospice care is returned to a lifetime limit of 210 days.
1990. Hospice care is extended beyond 210 days when
beneficiary is certified as terminally ill.

40 ♦ Annual Statistical Supplement, 2003

There were no changes in 2001 affecting beneficiaries.
Supplementary Medical Insurance
1965. Physician and surgeon services. In-hospital services
of anesthesiologists, pathologists, radiologists, and
psychiatrists. Limited dental services. Home health ser-

vices, 100 visits in calendar year. Other medical services including various diagnostic tests, limited
ambulance services, prosthetic devices, rental of durable medical equipment used at home (including equipment for dialysis), and supplies used for fractures. For
deductible and coinsurance provisions, see Table 2.C1.
Beginning in 1966, the beneficiary pays a $50 deductible, with a 3-month carryover provision.
1967. Outpatient hospital diagnostic services transferred
from HI. Includes physical therapy services in a facility.
Purchase of durable medical equipment.
1972. Physical therapy services furnished by a therapist in
his or her office or individual's home (calendar year
limit of $100). Chiropractor services (limited to manual
manipulation of the spine). Outpatient services include
speech pathology services furnished in, or under
arrangements with, a facility or agency. Services of a
doctor of optometry in furnishing prosthetic lenses.
Beginning in 1973, the beneficiary pays a $60 deductible.
1977. Services in rural health clinics.
1980. Home health services. Deductible applicable to
home health services is eliminated, effective July 1,
1981.
Facility costs of certain surgical procedures performed
in freestanding ambulatory surgical centers.
Increase in annual limit for outpatient therapy from
$100 to $500.
Recognizes comprehensive outpatient rehabilitation
facilities as Medicare providers.
1981. Beginning in 1982, the beneficiary pays a $75
deductible, with the carryover provision eliminated.
1984. Hepatitis B and pneumococcal vaccines and blood
clotting factors and necessary supplies are included as
Part B benefits. Debridement of mycotic toenails is limited.
For outpatient physical therapy services, includes services of a podiatrist. For outpatient ambulatory surgery,
includes services of a dentist and podiatrist furnished in
his or her office.
1986. Includes vision care services furnished by an optometrist.
For occupational therapy services, includes services
furnished in a skilled nursing facility (when Part A coverage has been exhausted), in a clinic, rehabilitation
agency, public health agency, or by an independently
practicing therapist.
Includes outpatient (in addition to previously covered
inpatient) immunosuppressive drugs for 1 year after
covered transplant.

Includes occupational therapy services provided in certain delivery settings.
For ambulatory surgical procedures performed in
ambulatory surgical centers, hospital outpatient departments, and certain physician offices, the Part B coinsurance and deductible are no longer waived.
1987. Increases the maximum payment for mental health
services and includes outpatient mental health services
provided by ambulatory hospital-based or hospitalaffiliated programs under the supervision of a physician.
Services provided by clinical social workers when furnished by risk-sharing health maintenance organizations/competitive medical plans, physician assistants in
rural health manpower shortage areas, clinical psychologists in rural health clinics and community mental
health centers, and certified nurse-midwives.
Coverage of outpatient immunosuppressive drugs (see
1986) is broadened/clarified to include prescription
drugs used in immunosuppressive therapy.
Specifies in law that in order to be eligible for home
health care, a Medicare beneficiary must have a
restricted ability to leave the home, requiring the assistance of another or the aid of a supportive device (such
as crutches, a cane, a wheelchair, or a walker).
1988. Beginning January 1, 1990, the beneficiary pays a
$75 deductible and 20-percent coinsurance, but once
out-of-pocket expenses for the deductible and coinsurance exceed $1,370, Medicare pays 100 percent of
allowable charges for remainder of year.
Beginning in 1991, Medicare pays 50 percent of the
cost of outpatient prescription drugs above $600. When
fully implemented in 1993, Medicare will pay 80 percent of prescription drug costs above a deductible that
assumes that 16.8 percent of Part B enrollees will
exceed the deductible.
Certain prescription drugs administered in an outpatient or home setting, including immunosuppressive
drugs (previously covered for 1 year after a covered
transplant), home intravenous drugs, and certain others, will be covered in 1990 under a new prescription
drug provision.
1989. Provisions enacted in 1988 and to begin in 1990 and
1991 are repealed and benefits are restored to levels in
effect prior to January 1, 1989.
Limits on mental health benefits eliminated in 1990.
Coverage extended to services of clinical psychologists
and social workers.
The annual payment limits of $500 per beneficiary for
outpatient physical therapy services and outpatient

Annual Statistical Supplement, 2003 ♦ 41

occupational therapy services, each, are raised to
$750, for 1990 and later. (See 1980.)
1990. Beginning in 1991, routine mammography screenings are covered.
The Part B deductible is set at $100 in 1991 and subsequent years.
Beginning in 1992, physicians' services are reimbursed
on a fee-schedule basis.
1993. Includes coverage of oral, self-administered
anticancer drugs.
Lengthens the coverage period for immunosuppressive
drugs after a transplant to 18 months in 1995, 24
months in 1996, 30 months in 1997, and 36 months
thereafter. (See 1986.)
The annual payment limits of $750 per beneficiary for
outpatient physical therapy services and outpatient
occupational therapy services, each, are raised to $900
for 1994 and later. (See 1989.)
1997. Home health services not associated with a hospital
or skilled nursing facility stay for individuals enrolled in
both HI and SMI are transferred from the HI program to
the SMI program, effective January 1998. The HI program will continue to cover the first 100 visits following
a hospital stay of at least 3 consecutive days or a
skilled nursing facility stay. The cost to the SMI trust
fund of the transferred services will phase in over a 6year period, while the cost of the home health services
will phase into the SMI premium over 7 years.
Coverage provided for a number of prevention initiatives, including (1) annual screening mammograms for
female beneficiaries age 40 or older, with SMI deductive waived; (2) screening pap smear and pelvic exam
(including clinical breast exam) every 3 years or annually for beneficiaries at higher risk, with SMI deductible
waived; (3) annual prostate cancer screening for male
beneficiaries aged 50 or older, effective January 1,
2000; (4) colorectal screening procedures, including
fecal-occult blood tests and flexible sigmoidoscopies,
for beneficiaries aged 50 or older, colonoscopy for beneficiaries at high risk for colorectal cancer, and other
procedures, including screening barium enemas under
certain circumstances; (5) diabetes outpatient selfmanagement training in nonhospital-based programs
(previously covered in hospital-based programs only)
and blood glucose monitors and testing strips for all
diabetics (previously provided for insulin-dependent
diabetics only), effective July 1, 1998; (6) procedures to
identify bone mass, detect bone loss, or determine
bone quality for certain qualified beneficiaries, at frequencies determined by the Secretary of HHS, effective July 1, 1998.

42 ♦ Annual Statistical Supplement, 2003

Beginning January 1999, an annual beneficiary limit of
$1,500 will apply to all outpatient physical therapy services, except for services furnished by a hospital outpatient department. A separate $1,500 limit will also
apply to outpatient occupational therapy services,
except for services furnished by hospital outpatient
departments. Beginning with 2002, these caps will be
increased by the percentage increase in the Medical
Economic Index. (See 1993.)
1999. The coverage period for immunosuppressive drugs
after a transplant is lengthened to 44 months, for individuals who exhaust their 36 months of coverage in
2000. For those exhausting their 36 months of coverage in 2001, at least 8 more months will be covered.
(The Secretary of HHS will specify the increase, if any,
beyond 8 months.) For those exhausting their 36
months of coverage in 2002, 2003, or 2004, the number of additional months may be more or less than 8.
(The Secretary will specify the increase for each of
these years.) (See 1993.)
The annual payment limits of $1,500 per beneficiary for
outpatient physical services and outpatient occupational therapy services, each, for services furnished by
independent practitioners (that is, not by a hospital outpatient department), are suspended for 2000 and 2001.
(See 1997.)
2000. Coverage for screening pap smears and pelvic
exams (including a clinical breast exam) is provided
every 2 years (increased from every 3 years) beginning
July 1, 2001. (Annual coverage continues for beneficiaries at higher risk, and SMI deductible continues to be
waived.) (See 1997.)
Annual coverage of glaucoma screenings is provided
for certain high-risk beneficiaries, effective January 1,
2002.
Screening colonoscopies are covered for all beneficiaries, not just those at high risk, beginning July 1, 2001.
For persons not at high risk, a screening colonoscopy
is covered 10 years after a previous one, or 4 years
after a screening flexible sigmoidoscopy. (See 1997.)
Coverage is provided for medical nutrition therapy services under certain circumstances for beneficiaries who
have diabetes or a renal disease, effective January 1,
2002.
The amount of a beneficiary’s copayment for a procedure in a hospital outpatient department is limited,
beginning April 1, 2001, to the hospital inpatient
deductible applicable for that year. Also, the Secretary
of HHS must reduce the effective copayment rate for
outpatient services to a maximum rate of 57 percent in
2001 (for services received after April 1); 55 percent in
2002 and 2003; 50 percent in 2004; 45 percent in
2005; and 40 percent in 2006 and later.

Time and budget limitations are removed on the coverage of immunosuppressive drugs, making coverage of
these drugs a permanent benefits for beneficiaries who
have received a covered organ transplant. (See 1999.)
The annual payment limits of $1,500 per beneficiary for
outpatient physical therapy services and outpatient
occupational therapy services, each, for services provided by independent practitioners (that is, not by a
hospital outpatient department), which were suspended for 2000 and 2001, are also suspended for
2002. (See 1999.)
The homebound benefit is clarified to specify that beneficiaries who require home health services may attend
adult day-care for therapeutic, psychosocial, or medical
treatment and still remain eligible for the home health
benefit. Homebound beneficiaries may also attend religious services without being disqualified from receiving
home health benefits.
Effective July 1, 2001, the 24-month waiting period
(otherwise required for an individual to establish Medicare eligibility on the basis of a disability) is waived for
persons with amyotrophic lateral sclerosis. The entitlement to Medicare begins with the first month of the
Social Security Administration’s determination of eligibility for Disability Insurance benefits.
There were no changes in 2001 affecting beneficiaries.
Medicare Financing
Hospital Insurance Taxes
See Table 2.A3.
Appropriations from General Revenues
1965. For HI costs attributable to transitionally insured beneficiaries.
For HI costs attributable to noncontributory wage credits granted for military service prior to 1957 (see Table
2.A2).
For the SMI program, an amount equal to participant
premiums.
1972. For cost of SMI not met by enrollee premiums.
1982. For HI costs attributable to beneficiaries having transitional entitlement based on Medicare-qualified federal employment.
1983. For HI taxes on noncontributory wage credits granted
for military service (a) from the inception of HI program
through 1983 and (b) on a current basis, annually,
beginning in 1984 (see Table 2.A2).

Participant Premiums
See also Table 2.C1.
1965. SMI enrollee premium rate (originally $3 per month)
to be established annually such as to pay one-half of
program costs.
1972. SMI enrollee premium rate increase limited to rate of
increase in OASDI cash benefits.
HI premium (originally $33 per month) to be established annually. Only individuals not otherwise entitled
to HI but desiring voluntary participation need to pay
the HI premium.
1983. SMI enrollee premiums for July 1983 to December
31, 1983, frozen at premium level of June 30, 1983.
Premiums for January 1, 1984, to December 31, 1985,
set to cover 25 percent of aged program costs.
1984. SMI enrollee premiums for January 1, 1986, to
December 31, 1987, will be set to cover 25 percent of
aged program costs. Increases in the SMI premium
may not exceed the dollar amount of the Social Security cost-of-living adjustment.
For calculating the amount of SMI premium surcharge
for individuals from age 65 up to age 70 not previously
enrolled in SMI, the number of years an individual did
not enroll because of coverage by employer group
health insurance will not be taken into account.
1985. Extends through calendar year 1988 the requirement
that SMI premiums be set to cover 25 percent of aged
program costs and that increases in the SMI premium
may not exceed the dollar amount of the Social Security cost-of-living adjustment.
Premium-paying individuals who do not purchase Part
A coverage within a specific time after becoming eligible because of age are subject to a 10-percent penalty
for each 12 months they are late in enrolling. There is a
cutoff on the length of time these individuals will have
to pay an enrollment penalty. The 10-percent premium
penalty would be limited to twice the number of years
enrollment was delayed. Therefore, if enrollment were
delayed 1 year, the penalty would be assessed for 2
years. Individuals in this category and already enrolled
will have the length of time the higher premium was
paid credited to them.
1987. Extends through calendar year 1989 the provisions
requiring that the SMI premium be set to cover 25 percent of aged program costs, prohibiting any increase in
the premium if there is no Social Security cost-of-living
adjustment, and continuing to hold beneficiaries harmless from Social Security check reductions as a result
of a premium increase.

Annual Statistical Supplement, 2003 ♦ 43

1988. Increases in the SMI premium may not exceed the
dollar amount of the Social Security cost-of-living
adjustments for 1989 and beyond.
1989. Extends through calendar year 1990 the requirement
that SMI premiums be set to cover 25 percent of aged
program costs.
1990. The SMI premium are $29.90 in 1991; $31.80 in
1992; $36.60 in 1993; $41.10 in 1994; and $46.10 in
1995.
1993. SMI enrollee premiums for January 1, 1996, to
December 31, 1998, will be set to cover 25 percent of
aged program costs.
1997. The SMI premium is permanently set at 25 percent of
program costs.

44 ♦ Annual Statistical Supplement, 2003

Income from Taxation of OASDI Benefits
1993. The additional income tax revenues resulting from
the increase in the taxable percentage applicable to
OASDI benefits (an increase from 50 percent to 85 percent, see Table 2.A31) are transferred to the HI trust
fund.
Interfund Borrowing
1981. See Table 2.A6.
1983. See Table 2.A6.

CONTACT: Clare McFarland (410) 786-6390.

Medicaid
The following are brief summaries of complex subjects.
They should be used only as overviews and general guides
to the Medicare and Medicaid programs. The views
expressed herein do not necessarily reflect the policies or
legal positions of the Centers for Medicare & Medicaid Services or the Department of Health and Human Services
(DHHS). These summaries do not render any legal,
accounting, or other professional advice, nor are they
intended to explain fully all of the provisions or exclusions
of the relevant laws, regulations, and rulings of the Medicare and Medicaid programs. Original sources of authority
should be researched and utilized.

Overview
Title XIX of the Social Security Act is a federal/state entitlement program that pays for medical assistance for certain
individuals and families with low incomes and resources.
This program, known as Medicaid, became law in 1965 as
a cooperative venture jointly funded by the federal and
state governments (including the District of Columbia and
the Territories) to assist states in furnishing medical assistance to eligible needy persons. Medicaid is the largest
source of funding for medical and health-related services
for America's poorest people.
Within broad national guidelines established by federal
statutes, regulations, and policies, each state (1) establishes its own eligibility standards; (2) determines the type,
amount, duration, and scope of services; (3) sets the rate of
payment for services; and (4) administers its own program.
Medicaid policies for eligibility, services, and payment are
complex and vary considerably, even among states of similar size or geographic proximity. Thus, a person who is eligible for Medicaid in one state may not be eligible in
another state, and the services provided by one state may
differ considerably in amount, duration, or scope from services provided in a similar or neighboring state. In addition,
state legislatures may change Medicaid eligibility, services,
or reimbursement during the year.

Basis of Eligibility and Maintenance
Assistance Status
Medicaid does not provide medical assistance for all poor
persons. Under the broadest provisions of the federal statute, Medicaid does not provide health care services even
for very poor persons unless they are in one of the groups
designated below. Low income is only one test for Medicaid
eligibility for those within these groups; their resources also
are tested against threshold levels (as determined by each
state within federal guidelines).
States generally have broad discretion in determining
which groups their Medicaid programs will cover and the

financial criteria for Medicaid eligibility. To be eligible for
federal funds, however, states are required to provide Medicaid coverage for certain individuals who receive federally
assisted income-maintenance payments, as well as for
related groups not receiving cash payments. In addition to
their Medicaid programs, most states have additional
"state-only" programs to provide medical assistance for
specified poor persons who do not qualify for Medicaid.
Federal funds are not provided for state-only programs.
The following enumerates the mandatory Medicaid "categorically needy" eligibility groups for which federal matching funds are provided:

Individuals are generally eligible for Medicaid if they
meet the requirements for the Aid to Families with
Dependent Children (AFDC) program that were in
effect in their state on July 16, 1996, or—at state
option—more liberal criteria.

Children under age 6 whose family income is at or
below 133 percent of the federal poverty level (FPL).

Pregnant women whose family income is below 133
percent of the FPL (services to these women are limited to those related to pregnancy, complications of
pregnancy, delivery, and postpartum care).

Supplemental Security Income (SSI) recipients in most
states (some states use more restrictive Medicaid eligibility requirements that pre-date SSI).

Recipients of adoption or foster care assistance under
Title IV of the Social Security Act.

Special protected groups (typically individuals who lose
their cash assistance due to earnings from work or
from increased Social Security benefits, but who may
keep Medicaid for a period of time).

All children born after September 30, 1983, who are
under age 19, in families with incomes at or below the
FPL.

Certain Medicare beneficiaries (described later).

States also have the option of providing Medicaid coverage for other "categorically related" groups. These
optional groups share characteristics of the mandatory
groups (that is, they fall within defined categories), but the
eligibility criteria are somewhat more liberally defined. The
broadest optional groups for which states will receive federal matching funds for coverage under the Medicaid program include the following:

Infants up to age 1 and pregnant women not covered
under the mandatory rules whose family income is no
more than 185 percent of the FPL (the percentage
amount is set by each state).

Annual Statistical Supplement, 2003 ♦ 45

Children under age 21 who meet the AFDC income
and resources requirements that were in effect in their
state on July 16, 1996.

Institutionalized individuals eligible under a "special
income level" (the amount is set by each state, up to
300 percent of the SSI federal benefit rate).

Individuals who would be eligible if institutionalized but
who are receiving care under home and communitybased services waivers.

Certain aged, blind, or disabled adults who have
incomes above those requiring mandatory coverage,
but below the FPL.

Recipients of state supplementary income payments.

Certain working-and-disabled persons with family
income less than 250 percent of the FPL who would
qualify for SSI if they did not work.

TB-infected persons who would be financially eligible
for Medicaid at the SSI income level if they were within
a Medicaid-covered category (however, coverage is
limited to TB-related ambulatory services and TB
drugs).

Certain uninsured or low-income women who are
screened for breast or cervical cancer through a program administered by the Centers for Disease Control.
The Breast and Cervical Cancer Prevention and Treatment Act of 2000 (Public Law 106-354) provides these
women with medical assistance and follow-up diagnostic services through Medicaid.

"Optional targeted low-income children" included within
the State Children's Health Insurance Program
(SCHIP) established by the Balanced Budget Act
(BBA) of 1997 (Public Law 105-33).

"Medically needy" persons (described below).

The medically needy (MN) option allows states to
extend Medicaid eligibility to additional persons. These persons would be eligible for Medicaid under one of the mandatory or optional groups, except that their income and/or
resources are above the eligibility level set by their state.
Persons may qualify immediately or may "spend down" by
incurring medical expenses that reduce their income to or
below their state's MN income level.
Medicaid eligibility and benefit provisions for the medically needy do not have to be as extensive as for the categorically needy, and may be quite restrictive. Federal
matching funds are available for MN programs. However, if
a state elects to have a MN program, there are federal
requirements that certain groups and certain services must
be included; that is, children under age 19 and pregnant
women who are medically needy must be covered, and
prenatal and delivery care for pregnant women, as well as
ambulatory care for children, must be provided. A state

46 ♦ Annual Statistical Supplement, 2003

may elect to provide MN eligibility to certain additional
groups and may elect to provide certain additional services
within its MN program. As of August 2002, 36 states have
elected to have a MN program and are providing at least
some MN services to at least some MN beneficiaries. All
remaining states utilize the "special income level" option to
extend Medicaid to the "near poor" in medical institutional
settings.
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (Public Law 104-193)—known
as the "welfare reform" bill—made restrictive changes
regarding eligibility for SSI coverage that impacted the
Medicaid program. For example, legal resident aliens and
other qualified aliens who entered the United States on or
after August 22, 1996 are ineligible for Medicaid for 5
years. Medicaid coverage for most aliens entering before
that date and coverage for those eligible after the 5-year
ban are state options; emergency services, however, are
mandatory for both of these alien coverage groups. For
aliens who lose SSI benefits because of the new restrictions regarding SSI coverage, Medicaid can continue only if
these persons can be covered for Medicaid under some
other eligibility status (again with the exception of emergency services, which are mandatory). Public Law 104-193
also affected a number of disabled children, who lost SSI
as a result of the restrictive changes; however, their eligibility for Medicaid was reinstituted by Public Law 105-33, the
BBA.
In addition, welfare reform repealed the open-ended
federal entitlement program known as Aid to Families with
Dependent Children (AFDC) and replaced it with Temporary Assistance for Needy Families (TANF), which provides
states with grants to be spent on time-limited cash assistance. TANF generally limits a family's lifetime cash welfare
benefits to a maximum of 5 years and permits states to
impose a wide range of other requirements as well—in particular, those related to employment. However, the impact
on Medicaid eligibility is not expected to be significant.
Under welfare reform, persons who would have been eligible for AFDC under the AFDC requirements in effect on
July 16, 1996 generally will still be eligible for Medicaid.
Although most persons covered by TANF will receive Medicaid, it is not required by law.
Title XXI of the Social Security Act, known as the State
Children's Health Insurance Program (SCHIP), is a new
program initiated by the BBA. In addition to allowing states
to craft or expand an existing state insurance program,
SCHIP provides more federal funds for states to expand
Medicaid eligibility to include a greater number of children
who are currently uninsured. With certain exceptions, these
are low-income children who would not qualify for Medicaid
based on the plan that was in effect on April 15, 1997.
Funds from SCHIP also may be used to provide medical
assistance to children during a presumptive eligibility
period for Medicaid. This is one of several options from

which states may select to provide health care coverage for
more children, as prescribed within the BBA's Title XXI program.
Medicaid coverage may begin as early as the third
month prior to application—if the person would have been
eligible for Medicaid had he or she applied during that time.
Medicaid coverage generally stops at the end of the month
in which a person no longer meets the criteria of any Medicaid eligibility group. The BBA allows states to provide 12
months of continuous Medicaid coverage (without reevaluation) for eligible children under the age of 19.
The Ticket to Work and Work Incentives Improvement
Act of 1999 (Public Law 106-170) provides or continues
Medicaid coverage to certain disabled beneficiaries who
work despite their disability. Those with higher incomes
may pay a sliding scale premium based on income.

Scope of Medicaid Services
Title XIX of the Social Security Act allows considerable flexibility within the states' Medicaid plans. However, some federal requirements are mandatory if federal matching funds
are to be received. A state's Medicaid program must offer
medical assistance for certain basic services to most categorically needy populations. These services generally
include the following:

Clinic services.

Intermediate care facilities for the mentally retarded
(ICFs/MR).

Prescribed drugs and prosthetic devices.

Optometrist services and eyeglasses.

Nursing facility services for children under age 21.

Transportation services.

Rehabilitation and physical therapy services.

Home and community-based care to certain persons
with chronic impairments.

The BBA included a state option known as Programs of
All-inclusive Care for the Elderly (PACE). PACE provides
an alternative to institutional care for persons aged 55 or
older who require a nursing facility level of care. The PACE
team offers and manages all health, medical, and social
services and mobilizes other services as needed to provide
preventive, rehabilitative, curative, and supportive care.
This care, provided in day health centers, homes, hospitals,
and nursing homes, helps the person maintain independence, dignity, and quality of life. PACE functions within the
Medicare program as well. Regardless of source of payment, PACE providers receive payment only through the
PACE agreement and must make available all items and
services covered under both Titles XVIII and XIX, without
amount, duration, or scope limitations and without application of any deductibles, copayments, or other cost sharing.
The individuals enrolled in PACE receive benefits solely
through the PACE program.

Inpatient hospital services.

Outpatient hospital services.

Prenatal care.

Vaccines for children.

Physician services.

Amount and Duration of Medicaid Services

Nursing facility services for persons aged 21 or older.

Family planning services and supplies.

Rural health clinic services.

Home health care for persons eligible for skilled-nursing services.

Laboratory and X-ray services.

Pediatric and family nurse practitioner services.

Within broad federal guidelines and certain limitations,
states determine the amount and duration of services
offered under their Medicaid programs. States may limit, for
example, the number of days of hospital care or the number of physician visits covered. Two restrictions apply: (1)
limits must result in a sufficient level of services to reasonably achieve the purpose of the benefits; and (2) limits on
benefits may not discriminate among beneficiaries based
on medical diagnosis or condition.

Nurse-midwife services.

Federally qualified health-center (FQHC) services, and
ambulatory services of an FQHC that would be available in other settings.

Early and periodic screening, diagnostic, and treatment
(EPSDT) services for children under age 21.

States may also receive federal matching funds to provide
certain optional services. Following are the most common
of the 34 currently approved optional Medicaid services:

Diagnostic services.

In general, states are required to provide comparable
amounts, duration, and scope of services to all categorically needy and categorically related eligible persons.
There are two important exceptions: (1) Medically necessary health care services that are identified under the
EPSDT program for eligible children, and that are within the
scope of mandatory or optional services under federal law,
must be covered even if those services are not included as
part of the covered services in that state's Plan; and (2)
states may request "waivers" to pay for otherwise uncovered home and community-based services (HCBS) for
Medicaid-eligible persons who might otherwise be institutionalized. As long as the services are cost effective, states
Annual Statistical Supplement, 2003 ♦ 47

have few limitations on the services that may be covered
under these waivers (except that, other than as a part of
respite care, states may not provide room and board for the
beneficiaries). With certain exceptions, a state's Medicaid
program must allow beneficiaries to have some informed
choices among participating providers of health care and to
receive quality care that is appropriate and timely.

Payment for Medicaid Services
Medicaid operates as a vendor payment program. States
may pay health care providers directly on a fee-for-service
basis, or states may pay for Medicaid services through various prepayment arrangements, such as health maintenance organizations (HMOs). Within federally imposed
upper limits and specific restrictions, each state for the
most part has broad discretion in determining the payment
methodology and payment rate for services. Generally,
payment rates must be sufficient to enlist enough providers
so that covered services are available at least to the extent
that comparable care and services are available to the general population within that geographic area. Providers participating in Medicaid must accept Medicaid payment rates
as payment in full. States must make additional payments
to qualified hospitals that provide inpatient services to a
disproportionate number of Medicaid beneficiaries and/or
to other low-income or uninsured persons under what is
known as the "disproportionate share hospital" (DSH)
adjustment. During 1988–1991, excessive and inappropriate use of the DSH adjustment resulted in rapidly increasing federal expenditures for Medicaid. Under legislation
passed in 1991, 1993, and again within the BBA of 1997,
the federal share of payments to DSH hospitals was somewhat limited. However, the Medicare, Medicaid, and SCHIP
Benefits Improvement and Protection Act (BIPA) of 2000
(Public Law 106-554) increased DSH allotments for 2001
and 2002 and made other changes to DSH provisions that
resulted in increased costs to the Medicaid program.
States may impose nominal deductibles, coinsurance,
or copayments on some Medicaid beneficiaries for certain
services. The following Medicaid beneficiaries, however,
must be excluded from cost sharing: pregnant women, children under age 18, and hospital or nursing home patients
who are expected to contribute most of their income to
institutional care. In addition, all Medicaid beneficiaries
must be exempt from copayments for emergency services
and family planning services.
The federal government pays a share of the medical
assistance expenditures under each state's Medicaid program. That share, known as the Federal Medical Assistance Percentage (FMAP), is determined annually by a
formula that compares the state's average per capita
income level with the national income average. States with
a higher per capita income level are reimbursed a smaller
share of their costs. By law, the FMAP cannot be lower
than 50 percent or higher than 83 percent. In fiscal year
48 ♦ Annual Statistical Supplement, 2003

(FY) 2003, the FMAPs varied from 50 percent in twelve
states to 76.62 percent in Mississippi, and averaged 56.6
percent overall. The BBA also permanently raised the
FMAP for the District of Columbia from 50 percent to 70
percent and raised the FMAP for Alaska from 50 percent to
59.8 percent through 2000. The BIPA of 2000 further
adjusted Alaska's FMAP to a higher level for FY 2001–
2005. The Jobs and Growth Tax Relief Reconciliation Act of
2003 (Public Law 108-27), in order to bring about state fiscal relief in the current troubled economy, has made three
temporary modifications to the states' FMAP calculation:
(1) the FMAP for the last two quarters of 2003 will equal the
greater of the current law FMAPs for 2002 or 2003; (2) the
FMAP for the first three quarters of 2004 will equal the
greater of the current law FMAPs for 2003 or 2004; and (3)
for the last two quarters of 2003 and first three quarters of
2004, the newly calculated (under 1 and 2 above) FMAP
will increase by 2.95 percentage points. The federal government pays states a higher share for children covered
through the SCHIP program. This "enhanced" FMAP averages about 70 percent for all states, compared to the general Medicaid average of 56.6 percent.
The federal government also reimburses states for 100
percent of the cost of services provided through facilities of
the Indian Health Service, provides financial help to the
twelve states that furnish the highest number of emergency
services to undocumented aliens, and shares in each
state's expenditures for the administration of the Medicaid
program. Most administrative costs are matched at 50 percent, although higher percentages are paid for certain
activities and functions, such as development of mechanized claims processing systems.
Except for the SCHIP program, the Qualifying Individuals (QI) program (described later), and DSH payments, federal payments to states for medical assistance have no set
limit (cap). Rather, the federal government matches (at
FMAP rates) state expenditures for the mandatory services, as well as for the optional services that the individual
state decides to cover for eligible beneficiaries, and
matches (at the appropriate administrative rate) all necessary and proper administrative costs. The Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999
(as incorporated into Public Law 106-113, the appropriations bill for the District of Columbia for FY 2000) increased
the amount that certain states and the territories can spend
on DSH and SCHIP payments, respectively. The BIPA set
upper payment limits for inpatient and outpatient services
provided by certain types of facilities.

Summary and Trends
Medicaid was initially formulated as a medical care extension of federally funded programs providing cash income
assistance for the poor, with an emphasis on dependent
children and their mothers, the disabled, and the elderly.
Over the years, however, Medicaid eligibility has been

incrementally expanded beyond its original ties with eligibility for cash programs. Legislation in the late 1980s assured
Medicaid coverage to an expanded number of low-income
pregnant women, poor children, and to some Medicare
beneficiaries who are not eligible for any cash assistance
program. Legislative changes also focused on increased
access, better quality of care, specific benefits, enhanced
outreach programs, and fewer limits on services.
In most years since its inception, Medicaid has had
very rapid growth in expenditures. This rapid growth has
been due primarily to the following factors:

The increase in size of the Medicaid-covered populations as a result of federal mandates, population
growth, and economic recessions.

The expanded coverage and utilization of services.

The DSH payment program, coupled with its inappropriate use to increase federal payments to states.

The increase in the number of very old and disabled
persons requiring extensive acute and/or long-term
health care and various related services.

The results of technological advances to keep a
greater number of very low-birth-weight babies and
other critically ill or severely injured persons alive and
in need of continued extensive and very costly care.

The increase in drug costs and the availability of new
expensive drugs.

The increase in payment rates to providers of health
care services, when compared to general inflation.

As with all health insurance programs, most Medicaid
beneficiaries incur relatively small average expenditures
per person each year, and a relatively small proportion
incurs very large costs. Moreover, the average cost varies
substantially by type of beneficiary. National data for 2000,
for example, indicate that Medicaid payments for services
for 21.6 million children, who constitute 50 percent of all
Medicaid beneficiaries, average about $1,290 per child (a
relatively small average expenditure per person). Similarly,
for 9.6 million adults, who comprise 22 percent of beneficiaries, payments average about $1,930 per person. However,
certain other specific groups have much larger per-person
expenditures. Medicaid payments for services for 4.1 million aged, constituting 10 percent of all Medicaid beneficiaries, average about $11,345 per person; for 7.5 million
disabled, who comprise 18 percent of beneficiaries, payments average about $10,040 per person. When expenditures for these high- and lower-cost beneficiaries are
combined, the 2000 payments to health care vendors for
42.8 million Medicaid beneficiaries average $3,935 per person.
Long-term care is an important provision of Medicaid
that will be increasingly utilized as our nation's population
ages. The Medicaid program paid for over 41 percent of the

total cost of care for persons using nursing facility or home
health services in 2001. National data for 2000 show that
Medicaid payments for nursing facility services (excluding
ICFs/MR) totaled $34.4 billion for more than 1.7 million
beneficiaries of these services—an average expenditure of
$20,220 per nursing home beneficiary. The national data
also show that Medicaid payments for home health services totaled $3.1 billion for more than 995,000 beneficiaries—an average expenditure of $3,135 per home health
care beneficiary. With the percentage of our population who
are elderly or disabled increasing faster than that of the
younger groups, the need for long-term care is expected to
increase.
Another significant development in Medicaid is the
growth in managed care as an alternative service delivery
concept different from the traditional fee-for-service system. Under managed care systems, HMOs, prepaid health
plans (PHPs), or comparable entities agree to provide a
specific set of services to Medicaid enrollees, usually in
return for a predetermined periodic payment per enrollee.
Managed care programs seek to enhance access to quality
care in a cost-effective manner. Waivers may provide the
states with greater flexibility in the design and implementation of their Medicaid managed care programs. Waiver
authority under sections 1915(b) and 1115 of the Social
Security Act is an important part of the Medicaid program.
Section 1915(b) waivers allow states to develop innovative
health care delivery or reimbursement systems. Section
1115 waivers allow statewide health care reform experimental demonstrations to cover uninsured populations and
to test new delivery systems without increasing costs.
Finally, the BBA provided states a new option to use managed care. The number of Medicaid beneficiaries enrolled
in some form of managed care program is growing rapidly,
from 14 percent of enrollees in 1993 to 58 percent in 2002.
More than 42.8 million persons received health care
services through the Medicaid program in FY 2000 (the last
year for which beneficiary data are available). In FY 2002,
total outlays for the Medicaid program (federal and state)
were $258.2 billion, including direct payment to providers of
$185.8 billion, payments for various premiums (for HMOs,
Medicare, etc.) of $45.1 billion, payments to disproportionate share hospitals of $15.4 billion, and administrative
costs of $11.9 billion. Outlays under the SCHIP program in
FY 2002 were $5.4 billion. With no changes to either program, expenditures under Medicaid and SCHIP are projected to reach $425 billion and $7.5 billion, respectively, by
FY 2008.

The Medicaid-Medicare Relationship
Medicare beneficiaries who have low incomes and limited
resources may also receive help from the Medicaid program. For such persons who are eligible for full Medicaid
coverage, the Medicare health care coverage is supplemented by services that are available under their state's
Annual Statistical Supplement, 2003 ♦ 49

Medicaid program, according to eligibility category. These
additional services may include, for example, nursing facility care beyond the 100-day limit covered by Medicare, prescription drugs, eyeglasses, and hearing aids. For persons
enrolled in both programs, any services that are covered by
Medicare are paid for by the Medicare program before any
payments are made by the Medicaid program, since Medicaid is always the "payer of last resort."
Certain other Medicare beneficiaries may receive help
with Medicare premium and cost-sharing payments through
their state Medicaid program. Qualified Medicare Beneficiaries (QMBs) and Specified Low-Income Medicare Beneficiaries (SLMBs) are the best-known categories and the
largest in numbers. QMBs are those Medicare beneficiaries
who have resources at or below twice the standard allowed
under the SSI program, and incomes at or below 100 percent of the FPL. For QMBs, Medicaid pays the Hospital
Insurance (HI) and Supplementary Medical Insurance
(SMI) premiums and the Medicare coinsurance and
deductibles, subject to limits that states may impose on
payment rates. SLMBs are Medicare beneficiaries with
resources like the QMBs, but with incomes that are higher,
though still less than 120 percent of the FPL. For SLMBs,
the Medicaid program pays only the SMI premiums. A third
category of Medicare beneficiaries who may receive help
consists of disabled and working individuals. According to
the Medicare law, disabled and working individuals who
previously qualified for Medicare because of disability, but

50 ♦ Annual Statistical Supplement, 2003

who lost entitlement because of their return to work
(despite the disability), are allowed to purchase Medicare
HI and SMI coverage. If these persons have incomes
below 200 percent of the FPL but do not meet any other
Medicaid assistance category, they may qualify to have
Medicaid pay their HI premiums as Qualified Disabled and
Working Individuals (QDWIs).
For Medicare beneficiaries with incomes that are
above 120 percent and less than 175 percent of the FPL,
the BBA establishes a capped allocation to states, for each
of the 5 years beginning January 1998, for payment of all or
some of the Medicare SMI premiums. These beneficiaries
are known as Qualifying Individuals (QIs). Unlike QMBs
and SLMBs, who may be eligible for other Medicaid benefits in addition to their QMB/SLMB benefits, the QIs cannot
be otherwise eligible for medical assistance under a state
plan. The payment of this QI benefit is 100 percent federally funded, up to the state's allocation.
CMS estimates that Medicaid currently provides some
level of supplemental health coverage for about 6.5 million
Medicare beneficiaries.
Note: Medicaid data are based on the projections of the
Mid-Session Review of the President’s Fiscal Year 2004
Budget and are consistent with data received from the
states on the Forms HCFA-2082, HCFA-37, and HCFA-64.
CONTACT: Earl Dirk Hoffman, Jr. (410) 786-7913.

Unemployment Insurance
Through federal and state cooperation, unemployment
insurance programs are designed to provide benefits to
regularly employed members of the labor force who
become involuntarily unemployed and who are able and
willing to accept suitable employment. Workers in all 50
states, the District of Columbia, Puerto Rico, and the Virgin
Islands are covered under unemployment insurance programs.
To induce states to enact unemployment insurance
laws, the Social Security Act of 1935 provided a tax offset
incentive. A uniform national tax was imposed on payrolls
of industrial and commercial employers who employed
eight or more workers in 20 or more weeks in a calendar
year. Employers who paid taxes to a state with an approved
unemployment insurance law could credit (offset) up to 90
percent of the state tax against the federal tax. This insured
that employers in states without an unemployment insurance law would not have an advantage competing with
similar businesses in states with such a law because they
would still be subject to the federal payroll tax, and their
employees would not be eligible for benefits.
In addition, the Social Security Act authorized grants to
states to meet the costs of administering the state systems.
By July 1937, all 48 states, the then territories of Alaska
and Hawaii, and the District of Columbia had passed unemployment insurance laws. Later, Puerto Rico adopted its
own program, which was incorporated in 1961 into the federal-state system. A similar program for workers in the Virgin Islands was added in 1978.
If employers are to receive an offset against federal
taxes and if states are to receive federal grants for administration, federal law requires state unemployment insurance
programs to meet certain requirements. These requirements are intended to assure that a state participating in
the program has an unemployment insurance system that
is fairly administered and financially secure.
One requirement is that all contributions collected
under state laws be deposited in the unemployment trust
fund of the U.S. Treasury Department. The fund is invested
as a whole, but each state has a separate account to which
its deposits and its share of interest on investments are
credited. At any time, a state may withdraw money from its
account in the trust fund, but only to pay benefits. Thus,
unlike the situation in the majority of states having workers'
compensation and temporary disability insurance laws,
unemployment insurance benefits are paid exclusively
through a public fund. Private plans cannot be substituted
for the state plan.
Aside from federal standards, each state has major
responsibility for the content and development of its unemployment insurance law. The state itself decides the

amount and duration of benefits (except for certain federal
requirements concerning federal-state Extended Benefits),
the contribution rates (with limitations), and, in general, the
eligibility requirements and disqualification provisions. The
states also directly administer the programs collecting contributions, maintaining wage records (where applicable),
taking claims, determining eligibility, and paying benefits to
unemployed workers.

Coverage
Originally, coverage had been limited to employment covered by the Federal Unemployment Tax Act (FUTA), which
relates primarily to industrial and commercial workers in
private industry. However, several federal laws added substantially to the number and types of workers protected
under the state programs, such as the Employment Security Amendments of 1970 and the Unemployment Compensation Amendments of 1976.
Private employers in industry and commerce are subject to the law if they have one or more individuals
employed on 1 day in each of 20 weeks during the current
or preceding year, or if they paid wages of $1,500 or more
during any calendar quarter in the current or preceding
year.
Agricultural workers are covered on farms with a quarterly payroll of at least $20,000 or employing 10 or more
employees in 20 weeks of the year. Domestic employees in
private households are subject to FUTA if their employer
pays wages of $1,000 or more in a calendar quarter.
Excluded from coverage are workers employed by their
families and the self-employed.
Before 1976, employment in state and local governments and nonprofit organizations were exempt from
FUTA. However, as a result of federal legislation enacted in
1976, most employment in these groups must now be covered by state law as a condition for securing federal
approval of the state law. Under this form of coverage, local
government and nonprofit employers have the option of
making contributions as under FUTA or of reimbursing the
state for benefit expenditures actually made. Elected officials, legislators, members of the judiciary, and the state
National Guard are still excluded, as are employees of nonprofit organizations that employ fewer than four workers in
20 weeks in the current or preceding calendar year. Many
states have extended coverage beyond that provided by
federal legislation.
Through special federal legislation, federal civilian
employees and ex-servicemembers of the armed forces
were brought under the unemployment insurance system.
Benefits for those persons are financed through federal
funds but are administered by the states and paid in accor-

Annual Statistical Supplement, 2003 ♦ 51

dance with the provisions of the state laws. A separate
unemployment insurance law enacted by Congress covers
railroad workers.
Amendments to FUTA made in 2000 added Indian
tribes to the set of entities for whom coverage is required,
although they are not liable for FUTA taxes. As a result,
workers performing services for tribes are now potentially
eligible to receive Unemployment Insurance benefits. Coverage is required when service is performed for any Indian
tribe, band, nation, or other organized group community
which is recognized as eligible for federal assistance
because of their status as Indians. The same permissible
exclusion from coverage that is applicable to other governmental entities also applies to services performed for Indian
tribes. If an Indian tribe fails to make payments to states as
required, the tribe loses its FUTA exemption and may lose
coverage.

Eligibility for Benefits
Unemployment benefits are available as a matter of right
(without a means test) to unemployed workers who have
demonstrated their attachment to the labor force by a specified amount of recent work or earnings in covered employment. All workers whose employers contribute to or make
payments in lieu of contributions to state unemployment
funds, federal civilian employees, and ex-service-members
are eligible if they are involuntarily unemployed, able to
work, available for work, and actively seeking work. Workers must also meet the eligibility and qualifying requirements of the state law and be free from disqualifications.
Workers who meet these eligibility conditions may still be
denied benefits if they are found to be responsible for their
own unemployment.
Work Requirements
A worker's monetary benefit rights are based on his or her
employment in covered work over a prior reference period
called the "base period," and these benefit rights remain
fixed for a "benefit year." In most states, the base period is
the first 4 quarters of the last 5 completed calendar quarters preceding the claim for unemployment benefits.
Benefits
Under all state laws, the weekly benefit amount—that is,
the amount payable for a week of total unemployment—
varies with the worker's past wages within certain minimum
and maximum limits. In most states, the formula is
designed to compensate for a fraction of the usual weekly
wage, normally about 50 percent, subject to specified dollar
maximums.
Three-fourths of the laws use a formula that computes
weekly benefits as a fraction of wages in one or more quarters of the base period. Most commonly, the fraction is
taken of wages in the quarter during which wages were
52 ♦ Annual Statistical Supplement, 2003

highest because this quarter most nearly reflects full-time
work. In most of these states, the same fraction is used at
all benefit levels. The other laws use a weighted schedule
that gives a greater proportion of the high-quarter wages to
lower paid workers than to those earning more.
Each state establishes a ceiling on the weekly benefit
amount, and no worker may receive an amount larger than
the ceiling. The maximum may be either a fixed dollar
amount or a flexible amount. Under the latter arrangement,
which has been adopted in 35 jurisdictions, the maximum is
adjusted automatically in accordance with the weekly
wages of covered employees.
Twelve states provide additional allowances for certain
dependents. They all include children under ages 16, 18, or
19 (and, generally, older if incapacitated); 8 states include a
nonworking spouse; and 2 states consider other dependent
relatives. The amount allowed per dependent varies considerably by state but generally is $24 or less per week
and, in the majority of states, the amount is the same for
each dependent.
All but 13 states require a waiting period of 1 week of
total unemployment before benefits can begin. Four states
pay benefits retroactively for the waiting period if unemployment lasts a certain period or if the employee returns to
work within a specified period.
Except for two jurisdictions, states provide a statutory
maximum duration of 26 weeks of benefits in a benefit year.
However, jurisdictions vary the duration of benefits through
various formulas.

Extended Benefits
In the 1970s, a permanent federal-state program of
Extended Benefits (EB) was established for workers who
exhaust their entitlement to regular state benefits during
periods of high unemployment. The program is financed
equally from federal and state funds. Employment conditions in an individual state trigger Extended Benefits. This
happens when the unemployment rate among insured
workers in a state averages 5 percent or more over a 13week period, and is at least 20 percent higher than the rate
for the same period in the 2 preceding years. If the insured
unemployment rate reaches 6 percent, a state may by state
law disregard the 20-percent requirement in initiating
Extended Benefits. Once triggered, Extended Benefit provisions remain in effect for at least 13 weeks. When a state's
benefit period ends, Extended Benefits to individual workers also end, even if they have received less than their
potential entitlement and are still unemployed. Further,
once a state's benefit period ends, another statewide
period cannot begin for at least 13 weeks.
State law determines most eligibility conditions for
Extended Benefits and the weekly benefit payable. However, under federal law a claimant must have had 20 weeks
in full-time employment (or the equivalent in insured

wages) and must meet special work requirements. A
worker who has exhausted his or her regular benefits is eligible for a 50-percent increase in duration of benefits for a
maximum of 13 weeks of Extended Benefits. There is, however, an overall maximum of 39 weeks of regular and
Extended Benefits. Extended Benefits are payable at the
same rate as the weekly amount under the regular state
program.
Prior to the 1992 legislation, the EB program was
based on the insured unemployment rate (IUR)–-the number of unemployed workers receiving benefits in a state as
a percentage of the number of persons in unemployment—
insurance covered employment in that state. By definition,
the IUR does not include workers who have exhausted
their benefits but are still unemployed.
The 1992 legislation (P.L. 102-318) provided states the
option of adopting an additional formula for triggering the
permanent Extended Benefits program. Effective March
1993, states had the option of amending their laws to use
alternative total unemployment rate triggers in addition to
the current insured unemployment rate triggers. Under this

option, Extended Benefits would be paid when (1) the
state's seasonally adjusted total unemployment rate for the
most recent 3 months is at least 6.5 percent, and (2) that
rate is at least 110 percent of the state average total unemployment rate in the corresponding 3-month period in either
of the 2 preceding years.
States triggering on to the Extended Benefits program
under other triggers would provide the regular 26 weeks of
unemployment benefits in addition to 13 weeks of
Extended Benefits, (which is the same number of weeks of
benefits provided previously). In addition, states that have
chosen the total unemployment rate option will also amend
their state laws to add an additional 7 weeks of Extended
Benefits (for a total of 20 weeks) where the total unemployment rate is at least 8 percent and is 110 percent of the
state's total unemployment rate for the same 3 months in
either of the 2 preceding years. As of April 20, 2003,
Extended Benefits were payable for 13 weeks in Alaska,
Oregon, and Washington.
CONTACT: Rita L. DiSimone (202) 358-6221.

Annual Statistical Supplement, 2003 ♦ 53

Workers' Compensation
Workers' compensation was the first form of social insurance to develop widely in the United States. It is designed
to provide cash benefits and medical care when employees
suffer work-related injuries or illnesses, and survivor benefits to the dependents of workers whose deaths result from
a work-related incident. In exchange for receiving benefits,
workers who receive workers' compensation are generally
not allowed to bring a tort suit against their employers for
damages of any kind.

U.S. Department of Energy to deal with other claims of
work-related occupational disease.

The federal government was the first to establish a
workers' compensation program, covering its civilian
employees with an act that was passed in 1908 to provide
benefits for workers engaged in hazardous work. The
remaining federal workforce was covered in 1916. Nine
states enacted workers' compensation laws in 1911. By
1920, all but 7 states and the District of Columbia had
workers' compensation laws.

Common exemptions from coverage are domestic service, agricultural employment, small employers, and casual
labor. However, 39 programs have some coverage for agricultural workers, and 25 programs have some coverage for
domestic workers.

Today each of the 50 states, the District of Columbia,
Puerto Rico, and the Virgin Islands has its own program.
The federal government covers its employees through its
own program. It also administers the Longshore and Harbor Workers' Compensation Act, enacted in 1927, which
covers longshore and harbor workers throughout the
United States.
Coal miners suffering from pneumoconiosis, or "black
lung" disease, are covered by the Black Lung Benefits Act
of 1972, with the initial benefits enacted as part of the Coal
Mine Health and Safety Act of 1969. Under this program,
monthly cash benefits are payable to miners disabled by
black lung disease and to their dependents or survivors.
Medical benefits are also payable on the basis of a diagnosis of pneumoconiosis.
The Energy Employees Occupational Illness Compensation Program Act of 2000 instituted a new program that
covers employees, contractors, and subcontractors of the
Department of Energy (DOE) for exposure to beryllium and
the contraction of chronic beryllium disease. In addition,
employees of private companies providing beryllium to
DOE are covered. Employees' survivors also receive cash
benefits.
This same act also covers employees disabled or killed
by cancers that developed after beginning employment at a
DOE or an atomic weapons facility, as long as the cancer
was at least "as likely as not" related to this employment,
subject to a number of guidelines relating to radiation exposure, type of cancer, and other relevant factors. It also provides benefits for silica-related diseases and to uranium
miners and their survivors who have received lump sum
payments under the Radiation Exposure Compensation
Act, and establishes an Office of Worker Advocacy in the

54 ♦ Annual Statistical Supplement, 2003

Coverage
In 2001, state and federal workers' compensation laws covered about 127.0 million employees. Covered payroll in
2001—that is, total wages paid to covered workers—was
$4.6 trillion.

Many programs exempt employees of nonprofit, charitable, or religious institutions. The coverage of state and
local public employees differs widely from one state program to another.
Two other major groups outside the coverage of workers' compensation laws are railroad employees engaged in
interstate commerce and seamen in the U.S. Merchant
Marine. These workers have health insurance and shortterm and long-term cash benefit plans that cover disabilities whether or not the conditions are work-related. In addition, under federal laws these workers retain the right to
bring tort suits against their employers for negligence in the
case of work-related injuries or illness.
The programs are compulsory for most private employment, except in Texas, where it is elective. That is, in Texas
employers may accept or reject coverage under the law. If
they reject it, they lose the customary common-law
defenses against suits by employees in private industry.

Benefits
The benefits provided under workers' compensation
include periodic cash payments and medical services to the
worker during the period of disablement for the disabling
condition. They also include death and funeral benefits to
the workers' survivors. Lump-sum settlements are permitted under most programs.
Approximately three-fourths of all workers' compensation cases involve only medical benefits. Cash wage
replacement benefits are categorized according to the
duration and severity of the worker's disability.
Temporary and Permanent Total Disability
A large majority of compensation cases involving cash payments involve temporary total disability. That is, the
employee is unable to work at all while he or she is recov-

ering from the injury but the worker is expected to recover.
When workers' lost time exceeds the waiting period (3 to 7
days, depending on the state) they receive a percentage of
their weekly wages—typically two-thirds—up to a maximum weekly amount. The maximum generally being set at
some percentage of the states average weekly wage, ranging from 66 2/3 percent to 200 percent but typically 100
percent.
In some cases, workers return to work prior to the date
they reach maximum medical improvement and thus have
reduced responsibilities and an accompanying lower salary. In those cases they receive temporary partial disability
benefits.
After the date of maximum medical improvement, if a
disability is severe enough, the worker receives permanent
total disability benefits. Very few workers compensation
cases are found to have permanent total disabilities.
Permanent Partial Disability
If the permanent disability of a worker is only partial and
may or may not lessen work ability, permanent partial disability benefits are payable. The system for determining
benefits in these cases is very complex and varies significantly across jurisdictions. Some states provide benefits
based on an impairment rating scheme. The level of impairment, often expressed as a percentage of total disability, is
used to determine the benefit amount. Some states provide
benefits based on the loss of earning capacity. They use
impairment ratings with modifications based on vocational
factors, such as the worker's education, job experience,
and age. Other states use systems that attempt to compensate workers for actual lost wages.
Death Benefits
Generally, compensation is related to earnings and to the
number of dependents payable to the survivors of workers
who die from a work-related illness or injury. Benefits are
capped in 26 states.
Medical Benefits
All compensation acts require that medical aid be furnished
to workers suffering from a work-related injury or illness
without delay, whether or not the condition entails work
interruption. This care includes first-aid treatment, physician services, surgical and hospital services, nursing, medical drugs and supplies, appliances, and prosthetic devices.
Care is typically provided with no co-payment from the
worker.
A few state laws contain provisions for nominal contributions by the covered employee for hospital and medical
benefits.

Financing
Workers' compensation programs are financed almost
exclusively by employers and are based on the principle
that the cost of work-related accidents is a business
expense. Depending on state laws, employers can purchase insurance from a private carrier or state fund, or they
can self-insure. No program relies on general taxing power
to finance workers' compensation. Employers in most programs are permitted to carry insurance against work accidents with commercial insurance companies or to qualify
as self-insurers by giving proof of financial ability to carry
their own risk. In 7 jurisdictions, however, commercial
insurance is not allowed. In four of these areas, including
Puerto Rico and the Virgin Islands, employers must insure
with an exclusive state fund, and in three others, they must
either insure with an exclusive state insurance fund or selfinsure. In 19 jurisdictions, state funds have been established that compete with private insurance carriers. Federal
employees are provided protection through a federally
financed and operated system.

Program Highlights
Benefit payments under workers' compensation programs
increased 3.5 percent in 2001 to $49.4 billion, from the
2000 figure of $47.7 billion. When compared to covered
wages, benefits grew by just 1.0 percent from $1.06 to
$1.07 per $100 of covered wages.
In 2001, medical benefits accounted for $22.0 billion,
and wage loss compensation for $27.4 billion. The latter
amount includes payments to disabled workers and the
survivors of deceased workers.
The $49.4 billion for workers' compensation benefit
payments in 2001 includes over $870 million in benefits for
the Black Lung program. This program is described separately (see Tables 9.D1–9.D3).
The employers' cost of providing workers' compensation coverage generally varies according to risk, industrial
classification, and experience rating. Nationally, in 2001,
such costs were approximately $1.39 per $100 of covered
wages, or about $504 for each of the 127.0 billion protected
employees.
The year 2001 is the first year since 1992 that benefits
grew faster than wages. It is the first year since 1993 that
employer costs increased relative to covered wages.

CONTACT: Virginia Reno (202) 452-8097.

Annual Statistical Supplement, 2003 ♦ 55

Temporary Disability Insurance
Five states, Puerto Rico, and the railroad industry have
social insurance programs that partially compensate for the
loss of wages caused by temporary nonoccupational disability or maternity. Those programs are known as temporary disability insurance (TDI) because the duration of the
payments is limited.
Federal law does not provide for a federal-state system
of short–term disability comparable to the federal-state system of unemployment insurance. However, the Federal
Unemployment Tax Act (FUTA) was amended in 1946 to
permit states where employees made contributions under
the unemployment insurance program to use some or all of
these contributions for the payment of disability benefits
(but not for administration). Three of the nine states that
could have benefited by this provision for initial funding for
TDI took advantage of it: California, New Jersey, and
Rhode Island. The first state law was enacted by Rhode
Island in 1942, followed by legislation in California and the
railroad industry in 1946, New Jersey in 1948, and New
York in 1949. Then came a hiatus of two decades before
Puerto Rico and Hawaii passed laws in 1968 and 1969,
respectively.
The five state temporary disability insurance laws and
the Puerto Rico law cover most commercial and industrial
wage and salary workers in private employment if the
employer has at least one worker. In no state is coverage
under TDI identical with that of the unemployment insurance program. Principal occupational groups excluded are
domestic workers, family workers (parent, child, or spouse
of the employer), government employees, and the selfemployed. State and local government employees are
included in Hawaii, and the other state programs generally
provide elective coverage for some or all public employees.
Agricultural workers are covered to varying degrees in
California, Hawaii, New Jersey, and Puerto Rico, but they
are not covered in other jurisdictions. The California law
permits self-employed individuals to elect coverage on a
voluntary basis. Workers employed by railroads, railroad
associations, and railroad unions are covered by TDI under
the national system included in the Railroad Unemployment Insurance Act.
The methods used for providing this protection vary. In
Rhode Island, the coverage is provided through an exclusive, state-operated fund into which all contributions are
paid and from which all benefits are disbursed. In addition,
covered employers may provide supplemental benefits in
any manner they choose. The railroad program is also
exclusively publicly operated in conjunction with its unemployment insurance provisions.
In California, New Jersey, and Puerto Rico, coverage is
provided through a state-operated fund, but employers are

56 ♦ Annual Statistical Supplement, 2003

permitted to "contract out" of the state fund by purchasing
group insurance from commercial insurance companies, by
self-insuring, or by negotiating an agreement with a union
or employees' association. Coverage by the state fund is
automatic unless or until an employer or the employees
take positive action by substituting a private plan that
meets the standards prescribed in the law and is approved
by the administering agency. Premiums (in lieu of contributions) are then paid directly to the private plan, and benefits
are paid to the workers affected.
The Hawaii and New York laws require employers to
provide their own disability insurance plans for their workers by setting up an approved self-insurance plan, by
reaching an agreement with employees or a union establishing a labor-management benefit plan, or by purchasing
group insurance from a commercial carrier. In New York,
the employer may also provide protection through the State
Insurance Fund, which is a state-operated competitive carrier. Both Hawaii and New York operate special funds to
pay benefits to workers who become disabled while unemployed or whose employers have failed to provide the
required protection. In other jurisdictions, benefit payments
for the disabled unemployed are made from the regular
state-operated funds.

Eligibility for Benefits
To qualify for benefits, a worker must fulfill certain requirements regarding past earnings or employment and must be
disabled as defined in the law. In addition, claimants may
be disqualified if they received certain types of income during the period of disability.
Earnings or Employment Requirements
A claimant must have a specified amount of past employment or earnings to qualify for benefits. However, in most
jurisdictions with private plans, the plans either insure
workers immediately upon their employment or, in some
cases, require a short probationary period of employment,
usually from 1 to 3 months. Upon cessation of employment
after a specified period, workers generally lose their private
plan coverage and must look to a state-created fund for
such protection.
Disability Requirements
The laws generally define disability as inability to perform
regular or customary work because of a physical or mental
condition. Stricter requirements are imposed for disability
during unemployment in New Jersey and New York. All the
laws pay full benefits for disability due to pregnancy.

Disqualifying Income
All the laws restrict payment of disability benefits when the
claimant is also receiving workers' compensation payments. However, the statutes usually contain some exceptions to this rule (for example, if the workers' compensation
is for partial disability or for previously incurred work disabilities).
The laws differ with respect to the treatment of sick
leave payments. Rhode Island pays disability benefits in full
even though the claimant draws wage continuation payments. New York deducts from the benefits any payment
from the employer or from a fund contributed to by the
employer, except for benefits paid pursuant to a collective
bargaining agreement. In California, New Jersey, and
Puerto Rico, benefits plus paid sick leave for any week during disability may not exceed the individual's weekly earnings before their disablement. Railroad workers are not
eligible for TDI benefits while they receive sick leave pay.
In all seven TDI systems, as with unemployment insurance, weekly benefit amounts are related to a claimant's
previous earnings in covered employment. In general, the
benefit amount for a week is intended to replace at least
one-half the weekly wage loss for a limited time. All the
laws, however, specify minimum and maximum amounts
payable for a week. The maximum duration of benefits varies from 26 to 52 weeks. Hawaii, New York, and Puerto
Rico provide for benefits of a uniform duration of 26 weeks
for all claimants; California and the railroad program have
maximum benefit periods of 52 weeks; New Jersey, 26
weeks; and Rhode Island, 30 weeks. Under the railroad
program, duration of benefits varies from 26 weeks to 52
weeks, based on the total number of years of employment
in the industry. In the other jurisdictions, limited pre-disability "base period" wages reduce benefit duration. A noncompensable waiting period of a week or 7 consecutive days of
disability (4 days for railroad workers) is generally required
before the payment of benefits for subsequent weeks.

The statutory provisions described above govern the
benefits payable to employees covered by the state-operated plans. In those states where private plans are permitted to participate, those provisions represent standards
against which the private plan can be measured (in accordance with provisions in the state law).

Financing and Administration
Under each of the laws, except for that governing the railroad program, employees may be required to contribute to
the cost of the temporary disability benefit. In five of the
jurisdictions (all but California and Rhode Island), employers are also required to contribute. In general, the government does not contribute.
Five of the seven TDI programs are administered by
the same agency that administers unemployment insurance. Under those five programs, the unemployment insurance administrative machinery is used to collect
contributions, to maintain wage records, to determine eligibility, and to pay benefits to workers under the state-operated funds. The New York law is administered by the state
Workers' Compensation Board, and the Hawaii law is
administered separately in the Department of Labor and
Industrial Relations.
By way of contrast, claims in New York and Hawaii are
filed with and paid by the employer, the insurance carrier, or
the union health and welfare fund that is operating the private plan. The state agency limits its functions with respect
to employed workers to exercising general supervision over
private plans, to setting standards of performance, and to
adjudicating disputed claims arising between claimants and
carriers. A similar situation applies to claimants under private plans in California, New Jersey, and Puerto Rico.

CONTACT: Rita L. DiSimone (202) 358-6221.

Annual Statistical Supplement, 2003 ♦ 57

Black Lung Benefits
The Black Lung benefit program established by the Federal
Coal Mine Health and Safety Act of 1969 provides monthly
benefit payments to coal miners totally disabled as a result
of pneumoconiosis, to the widows of coal miners who died
as a result of pneumoconiosis, and to their dependents.
The Social Security Administration (SSA) was responsible
for the payment and administration of these Part B benefits
(miner, survivor, and dependent) with respect to claims filed
through June 30, 1973 (and certain survivor cases, before
December 31, 1973).
On October 1, 1997, responsibility for maintenance
and payment of Part B was transferred from SSA to the
Department of Labor (DOL); SSA, however, maintains
responsibility for conducting formal hearings necessary to
resolve contested issues with respect to Part B claims.
Only data on these Part B claims are reported on in this
Supplement. Part C claims are reported in the OWCP
Annual Report to Congress, U.S. Department of Labor,
Office of Workers' Compensation Programs.
Under the Black Lung Benefits Act of 1972, DOL was
assigned jurisdiction over Part C benefits, generally claims
filed July 1, 1973, and later. Different financing provisions
are applicable to these claims.
Legislation enacted on November 2, 2002 (P.L. 107275), transferred permanently the responsibility for all
Black Lung claims (Parts B and C) to the Office of Workers’
Compensation Programs (OWCP) of the Department of
Labor. The Social Security Administration will only continue
to handle a small number of pending Part B appeals cases
on a reimbursable basis.
The basic Black Lung benefit rate is set by law at
37 1/2 percent of the monthly pay rate for federal employees in the first step of grade GS-2. The basic rate to a

58 ♦ Annual Statistical Supplement, 2003

miner or widow may be increased according to the number
of qualified dependents—50 percent of the basic benefit
rate if one dependent qualifies, 75 percent for two dependents, and 100 percent for three or more dependents.
Since Black Lung payments are tied directly to federal
employee salary scales, increases are automatically payable when federal salaries are increased. Reflecting a 3.1
percent adjustment, monthly benefit rates effective January
1, 2003, are:

Miner or widow, $534.60

Miner or widow and 1 dependent, $801.90

Miner or widow and 2 dependents, $935.50

Miner or widow and 3 or more dependents (family
benefit), $1,069.20

If a miner or surviving spouse is receiving workers'
compensation, unemployment compensation, or disability
insurance payments under state law, the Black Lung benefit is offset by the amount being paid under these other programs.
The 1972 amendments extended benefit payments to
full orphans, parents, brothers, and sisters of deceased
miners. Under earlier law, survivor payments were limited
to widows and their dependent children (if the miner and
spouse were both deceased, no benefits were payable to
surviving children). The 1972 amendments also expanded
coverage to include surface as well as underground coal
miners.

CONTACTS: Wayne Tacy (301) 306-6699 or
Joseph Bondar (410) 965-0162.

Veterans' Benefits
A variety of programs and benefits are available to servicemembers and veterans of military service: disability
payments, educational assistance, health care, vocational
rehabilitation, survivor and dependents benefits, life insurance, burial benefits, special loan programs, and hiring
preference for certain jobs. Most of the veterans programs
are administered by the Department of Veterans Affairs
(VA).

Monetary Benefits

ments are eligible for pension, regardless of current physical condition.
Effective December 1, 2002, maximum benefit
amounts for non-service-connected disabilities range from
$807 per month for a veteran without a dependent spouse
or child to $1,597 per month for a veteran who is in need of
regular aid and attendance and who has one dependent.
For each additional dependent child, the pension is raised
by $136 per month.

Two major cash benefit programs are available for veterans. The first program provides benefits to veterans with
service-connected disabilities and, on the veteran's death,
benefits are available for eligible surviving spouses, children, and dependent parents. These benefits are payable
regardless of other income or resources. The second program provides benefits to needy veterans who have nonservice-connected disabilities. These benefits are means
tested.

Benefits for Survivors

Compensation for Service-connected Disabilities

DIC payments may also be authorized for survivors of
veterans who were totally disabled by service-connected
conditions at the time of death, even though their serviceconnected disabilities did not cause their deaths.

Disability compensation is a monetary benefit paid to veterans who are disabled by injury or disease incurred in or
aggravated during active military service. Individuals discharged or separated from military service under dishonorable conditions are generally not eligible for compensation
payments. The amount of monthly compensation depends
on the degree of disability, rated as the percentage of normal function lost. Payments in 2003 range from $104 a
month for a 10-percent disability to $2,193 a month for total
disability. Veterans who have at least a 30-percent serviceconnected disability are entitled to an additional dependent's allowance. The amount is based on the number of
dependents and degree of disability.
Pension for Non-service-connected Disabilities
Monthly benefits are provided to wartime veterans with limited income and resources who are totally and permanently disabled because of a condition not attributable to
their military service. To qualify for these pensions, a veteran must have served in one or more of the following designated war periods: The Mexican Border Period, World
War I, World War II, the Korean Conflict, the Vietnam Era,
or the Gulf War. The period of service must have lasted at
least 90 days, and the discharge or separation cannot have
been dishonorable. Service less than 90 days is acceptable
if the veteran was discharged with a service-connected disability.
Pension payments are reduced by countable income.
Some medical and other expenses are allowed as deductions from countable income. Veterans aged 65 years or
older who meet service, net worth, and income require-

The dependency and indemnity compensation (DIC) program provides monthly benefits to the surviving spouse,
children (under age 18, disabled, or students), and certain
parents of service persons or veterans who die as the
result of an injury or disease incurred while in or aggravated by active duty or training, or from a disability otherwise compensable under laws administered by the Department of Veterans Affairs.

Eligibility for survivor benefits based on a non-serviceconnected death of a veteran with a service-connected disability requires a marriage of at least a 1-year duration
before the veteran's death. A surviving spouse is generally
required to have lived continuously with the veteran from
marriage until his or her death. Entitlement for death benefits ends with the surviving spouse’s remarriage, but may
be restored upon termination of the remarriage.
The monthly benefit amount payable to surviving
spouses of veterans, who died before January 1, 1993,
depends on the last pay rate of the deceased service person or veteran. In 2003, for pay grades E-1 through E-6, a
flat monthly rate of $948 is paid to surviving spouses.
Monthly benefits for grades E-7 through E-9 range between
$980 and $1,165. For veterans who died after January 1,
1993, surviving spouses receive a flat $948 a month. An
additional $204 a month will be paid to supplement the
basic rate if the deceased veteran had been entitled to
receive 100-percent service-connected compensation for
at least 8 years immediately preceding death. The amounts
payable to eligible parents are lower and depend on: (1) the
number of parents eligible, (2) their income, and (3) their
marital status.
Pensions for Non-service-connected Death
Pensions are paid based on need to surviving spouses and
dependent children (under age 18, disabled or students) of
deceased veterans of the wartime periods specified in the
Annual Statistical Supplement, 2003 ♦ 59

disability pension program. For a pension to be payable,
the veteran generally must have met the same service
requirements established for the non-service-connected
disability pension program, and the surviving spouse must
meet the same marriage requirements as under the dependency and indemnity compensation program.
The pension amount depends on the composition of
the surviving family and the physical condition of the surviving spouse. In 2002, pensions range from $541 a month for
a surviving spouse without dependent children to $1,032 a
month for a spouse who is in need of regular aid and attendance and who has a dependent child. The pension is
raised by $137 a month for each additional dependent
child. Pension payments are reduced by countable income.
Some medical and other expenses are allowed as deductions from countable income.

Hospitalization and Other Medical Care
The Department of Veterans Affairs (VA) provides a nationwide system of health care through a system of hospitals
and community-based outpatient clinics to eligible veterans.
Enrollment and Provision of Hospitalization
and Outpatient Medical Care to Veterans

Care for Dependents and Survivors
The dependents and survivors of certain veterans may be
eligible for medical care under the Civilian Health and Medical Program of the Department of Veterans Affairs
(CHAMPVA) if not eligible for medical care under Tricare or
Medicare. Tricare (formerly known as CHAMPUS) is the
health program administered by the Department of
Defense for dependents of active duty personnel and military retirees and their dependents.
Beneficiaries covered by CHAMPVA may be treated at
Department facilities when space is available. Usually,
however, the person with CHAMPVA coverage is treated at
a community hospital of his or her choice. The Department
of Veterans Affairs pays for a part of the bill and the beneficiary is responsible for any required co-payment.
Nursing Home Care
A veteran seeking nursing home care must meet the established eligibility requirements for admission to a Department of Veterans Affairs nursing home. The Veterans
Millennium Health Care and Benefits Act (Public Law 106117, passed by Congress on November 30, 1999) made
amendments to the original authority for nursing home
placement. The new law requires that the VA:

To receive health care, veterans generally must be enrolled
with the VA and may apply for enrollment at any time. Veterans do not have to be enrolled if they (1) have a serviceconnected disability of 50 percent or more; (2) want care
for a disability that the military determined was incurred or
aggravated in the line of duty but that the VA has not yet
rated during the 12-month period following discharge; or
(3) want care for a service-connected disability.

Provide nursing home care to any veteran in need of
such care for a service-connected disability;

Provide nursing home care to any veteran who is in
need of such care and who has a service-connected
disability rated at 70 percent or greater;

Provide nursing home care, either directly or through
contracts when clinically indicated for eligible veterans;

Enrolled veterans and those not subject to enrollment
are eligible to receive comprehensive medical benefits,
which includes basic and preventive care.

Facilities will determine the need for nursing home care
based on a comprehensive interdisciplinary assessment.

Eligibility Requirements

Other Medical Benefits

Basic eligibility for hospital care and outpatient medical services are based on a veteran's character of discharge from
active military service. Veterans discharged prior to September 7, 1980, for other than dishonorable conditions
have basic eligibility for care. However, veterans discharged after September 7, 1980, must have completed 24
consecutive months of active duty service. Reservists who
were called or ordered to active duty may also be eligible
for care as a veteran if they complete the full period for
which they were called or ordered to active duty. The 24month minimum service time requirement does apply to
veterans who were discharged for reasons of early-out
under Title 38, U.S.C. 1173, discharged for a disability
incurred or aggravated in the line of duty, awarded VA compensation or is in need of care for an adjudicated serviceconnected disability.

Other Department of Veterans Affairs programs and medical benefits are available to certain veterans. Veterans do
not need to be enrolled in the VA health care system to be
eligible for any of the following benefits, although there may
be restrictions: domiciliary care, alcohol and drug dependency treatment; prosthetic appliances; modification in certain veterans’ homes when so ordered by his or her
physician, subject to cost limitations; compensation and
pension examinations; care as part of a VA-approved
research project; readjustment counseling and treatment
for Vietnam veterans; sexual trauma counseling for veterans suffering from trauma of a sexual nature during active
military service; counseling; vocational rehabilitation counseling; special registry examinations and dental care.

60 ♦ Annual Statistical Supplement, 2003

Educational Assistance
The post-Vietnam Veterans' Educational Assistance Program (VEAP) is a voluntary contributory matching program
for persons entering service after December 31, 1976. To
be eligible, the servicemember must have initially contributed to VEAP before April 1, 1987. The Montgomery GI
Bill-Active Duty program provides education benefits for
individuals entering military service on or after July 1, 1985,
and for certain other individuals. Service members entering
active duty have their basic pay reduced $100 a month for

the first 12 months of their service unless they specifically
elect not to participate. An educational assistance program
is also available for individuals who enter the Selected
Reserve on or after July 1, 1985.
The Department of Veterans Affairs also pays educational assistance for dependents if a veteran is permanently
and totally disabled from a service-related cause, or dies as
a result of service, or while completely disabled from service-related causes.
CONTACT: Gloria Bennett (202) 273-5776.

Annual Statistical Supplement, 2003 ♦ 61

Temporary Assistance for Needy Families
On August 22, 1996, The Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 became law.
This comprehensive, bipartisan legislation changed the
nation's welfare system into one requiring work in
exchange for time-limited assistance. It created the Temporary Assistance for Needy Families (TANF) program, which
replaced the Aid to Families with Dependent Children
(AFDC), Emergency Assistance (EA), and Job Opportunities and Basic Skills Training (JOBS) programs. The law
marks the end of federal entitlement to assistance. In
TANF, states and territories operate programs, and Indian
tribes have the option to run their own programs. States,
territories, and tribes each receive a block grant allocation,
and states must maintain a historical level of state spending
known as maintenance of effort. The basic block grant provides states and tribes $16.5 billion in federal funds each
year, through 2002. This amount covers benefits, administrative expenses, and services targeted to needy families.
The 1996 law offers states great flexibility in designing
individual state TANF programs. Unless expressly provided
under the statute, the federal government may not regulate
the conduct of states.
States may use TANF funds in any manner "reasonably
calculated to accomplish the purposes of TANF." The purposes are assisting needy families so that children can be
cared for in their own homes; reducing dependency of
needy parents by promoting job preparation, work, and
marriage; preventing out-of-wedlock pregnancies, and
encouraging the formation and maintenance of two-parent
families.

ents with a child under 6 for failing to meet work requirements if they cannot obtain child care. A state may exempt
single parents with children under the age of 1 from the
work requirements and disregard these individuals in the
calculation of participation rates for up to 12 months.
Work Activities
Activities that count towards a state's participation rates are
unsubsidized or subsidized employment, on-the-job training, work experience, community service, job search, vocational training, job skills training related to work, or
education directly related to work; satisfactory secondary
school attendance; and providing child care services to
individuals who are participating in community service.
However, no more than 12 months of vocational training,
no more than 6 total weeks of job search, and no more than
4 consecutive weeks of job search may count. Further,
effective in FY 2000, no more than 30 percent of those
meeting the participation rates may count toward the work
requirement on the basis of participation in vocational training or by being a teen parent in secondary school.
Five-Year Time Limit
Families with an adult who has received federally funded
assistance for a total of 5 years (or less at state option) are
not eligible for cash aid under the TANF program. States
may extend assistance beyond 60 months to up to 20 percent of their caseload. They may also elect to provide
assistance to families beyond 60 months using state-only
funds, or they may provide services to families that reach
the time limit using Social Services Block Grants.

Program Features
State Maintenance of Effort Requirements
Work Requirements
With few exceptions, recipients must work as soon as job
ready, or no later than 2 years after coming on assistance.
In fiscal year 1997, each state had to ensure that 25 percent of all families in the state were engaged in work activities. This percentage increased to 50 percent in FY 2002.
Minimum participation rates for two-parent families started
at 75 percent in FY 1997 and increased to 90 percent. (If a
state reduces its caseload, without restricting eligibility, it
can receive a caseload reduction credit. This credit
reduces the minimum participation rates the state must
achieve.) During 1997 and 1998, single parents had to participate in work activities for at least 20 hours per week; by
FY 2000, they had to participate at least 30 hours per
week. Two-parent families had to participate in work activities for at least 35 or 55 hours per week, depending upon
the circumstances. Failure to participate in work requirements can result in a reduction or a termination of benefits
to the family. However, states cannot penalize single par-

62 ♦ Annual Statistical Supplement, 2003

The TANF block grant program has an annual cost-sharing
requirement, referred to as "maintenance of effort," or
MOE. Every fiscal year each state must spend a certain
minimum amount of its own money to help eligible families
in ways that are consistent with the purposes of the TANF
program. The required MOE amount is based on an "applicable percentage" of the state's (non-federal) expenditures
on AFDC and the AFDC-related programs in 1994. The
applicable percentage depends on whether the state meets
its minimum work participation rate requirements for that
fiscal year. A state that does not meet the required minimum work participation rate requirements must spend at
least 80 percent of the amount it spent in 1994. A state that
meets its minimum work participation rate requirements
must spend at least 75 percent of the amount it spent in
1994.
In addition to the federal TANF block grant funding,
needy states with economic problems may request federal

funds from the Contingency Fund. The Contingency Fund
has a more rigorous MOE requirement.
Additional Funding
Bonuses to reward high performance and reduce outof-wedlock births. Through FY 2003, $1 billion is available to states for high performance bonuses for achieving
program goals, such as moving welfare recipients into jobs.
There is a separate $100 million annual appropriation for
bonuses to the 5 states that have the greatest success in
reducing their of out-of-wedlock birth rates, while also
reducing their abortion rates.
Contingency fund, supplemental grants, and loans.
There is a contingency fund of $2 billion available over 5
years to states experiencing economic downturns. There
are two additional funds: a $800 million fund available over
4 years to provide supplemental grants for states with high
population growth and historically low welfare spending
and a $1.7 billion federal loan fund.
Penalties
The Department of Health and Human Services (HHS) may
reduce a state's block grant if it fails to do any of the following:

Satisfy work requirements. A penalty of 5 percent
accrues in the first year. The penalty amount increases
2 percent per year for each consecutive failure. The
penalty is adjusted based on degree of failure. The
maximum penalty is 21 percent.

Comply with 5-year limit on assistance. Failure to comply results in a 5 percent penalty.

Meet the state's basic maintenance of effort requirements. The penalty is based on the amount of the
state's under-spending. The state also loses its Welfare-to-Work funds.

Meet the state's contingency fund MOE requirement.
The penalty is a reduction of the state's federal TANF
grant by the amount of contingency funds received and
not remitted.

Reduce recipient grants for refusing to participate in
work activities without good cause. A penalty of
between 1 percent and 5 percent is assessed based on
the degree of noncompliance. Maintain assistance
when a single custodial parent with a child under six
cannot obtain child care. Failure to comply results in a
penalty of 5 percent.

Submit required data reports. A penalty of 4 percent
accrues.

Comply with paternity establishment and child support
enforcement requirements. Failure to comply results in
a penalty of up to 5 percent.

Participate in the Income and Eligibility Verification
System. A penalty of up to 2 percent accrues.

Repay a federal loan on time. The penalty will be
based on the amount unpaid.

Use funds appropriately. Misuse of funds can result in
states being penalized for the amount misused. If this
misuse is found to be intentional, an additional penalty
of 5 percent will be assessed.

Replace federal penalty reductions with additional state
funds. This provision results in a penalty of up to 2 percent and requires states to contribute state funds to
make up for any reductions in federal funds due to penalties.

The total penalty assessed against a state in a given
year may not exceed 25 percent of a state's block grant
allotment. In some situations, states may avoid penalties
(1) if they demonstrate that they had reasonable cause for
failing to meet the program requirements or (2) if they
develop a corrective compliance plan, receive approval of
their plan, and correct or discontinue the violation.
Personal Employability Plans
States must make an initial assessment of a recipient's
skills. States may develop personal responsibility plans for
each recipient to identify the education, training, and job
placement services needed to move into the workforce.
Teen Parent Live-At-Home
and Stay-In-School Requirement
Unmarried minor parents must participate in educational
and training activities and live with a responsible adult or in
an adult-supervised setting in order to receive assistance.
States are responsible for assisting in locating adult-supervised settings for teens who cannot live at home.
State Plans
The Department of Health and Human Services (HHS)
reviews state plans for completeness only. States must
allow for a 45-day comment period on the state plan by
local governments and private organizations and consult
with them. The state plan must have "objective criteria" for
eligibility and benefits that are "fair" and "equitable." The
plan must explain appeal rights.
Job Subsidies
The law allows states to create jobs by taking money that is
now used for welfare checks and using it to create community service jobs, provide income subsidies, or provide hiring incentives for potential employers.

Annual Statistical Supplement, 2003 ♦ 63

Waivers
States that received approval for welfare reform waivers
before January 1, 1997, have the option to operate their
cash assistance program under some or all of these waivers, until the waivers expire.
Effective Dates
States had until July 1, 1997, to submit state plans and
begin implementing TANF, although they had the option to
implement earlier.
HHS published final regulations covering the state
TANF programs on April 12, 1999. These regulations took
effect October 1, 2000.

Tribal Programs
Federally recognized Indian tribes may apply directly to
HHS to operate a TANF block grant program. Eligible tribes
include the federally recognized tribes in the lower 48
states and 13 designated entities in Alaska (that is, the 12
Alaska Native regional nonprofit associations and Matlakatla). TANF allotments for Indian tribes are based upon
previous state expenditures of federal dollars in AFDC,

64 ♦ Annual Statistical Supplement, 2003

Emergency Assistance (EA), and JOBS on tribal members
in fiscal year 1994. Tribal TANF programs could be implemented as early as July 1, 1997. Like states, Indian tribes
can use their TANF funding in any manner reasonably calculated to accomplish the purposes of TANF. They have
broad flexibility to determine eligibility, method of assistance, and benefit levels. Unlike state plans, the federal
government approves tribal plans. Tribes and HHS must
reach agreement on time limits, work requirements, and
minimum participation rates.
In addition to authorizing tribes to administer TANF, the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996 replaced the former tribal JOBS program
with the Native Employment Works (NEW) program. The
NEW program provides funding for tribes and intertribal
consortia to design and administer tribal work activities that
meet the unique employment and training needs of their
populations while allowing tribes and states to provide
other TANF services.
HHS published final regulations for the tribal TANF and
NEW programs on February 18, 2000.
CONTACT: Bettie McClure (202) 401-5032.

Food Stamps
Overview
The Food Stamp program provides a means for persons
with no or little income to obtain a nutritionally adequate
diet. The program issues monthly allotments of coupons
that are redeemable at retail food stores, or provides benefits through electronic benefit transfer (EBT). Eligibility and
allotments are based on household size, income, assets,
and other factors.
Households without income receive an amount equal
to 100 percent of the June monthly cost of the Thrifty Food
Plan (TFP—a nutritionally adequate diet) for a reference
family of four adjusted for household size and economies of
scale. This amount is updated every October for the new
fiscal year to account for food price increases.
As of October 2003, an eligible four-person household
in the continental United States with no income receives
$471 per month in food stamps. Households with income
receive food stamps valued at the difference between the
maximum allotment and 30 percent of their income, after
certain allowable deductions.
To qualify for food stamps, a household must have:
1. Less than $2,000 in disposable assets ($3,000, if one
member is aged 60 or older or is disabled),
2. Gross income below 130 percent of the poverty guidelines for the household size, and
3. Net income of less than 100 percent of the poverty
guidelines’ allowable deductions.
0

Households with a person aged 60 or older or a disabled person receiving either Supplemental Security
Income (SSI), Social Security (OASDI), state general assistance, or veterans' disability benefits (or interim disability
assistance pending approval of any of the above programs)
may have gross income exceeding 130 percent of the poverty guidelines if the income is lower than 100 percent of
the poverty guidelines allowable deductions.
One- and two-person households that meet the applicable standard receive at least $10 a month in food
stamps.
All households in which all members receive Temporary Assistance for Needy Families (TANF) or SSI are categorically eligible for food stamps.
Net income is computed by subtracting the following
deductions from monthly gross income:
1. Twenty percent of earned income.
2. Standard deduction of $134 for fiscal year 2002 for
households with one to four members, $147 for house-

holds with five members, and $168 for households with
six or more members.
3. Amount paid for dependent care (up to $200 a month
for each child under age 2 and $175 for all other
dependents) while the dependent's caretaker is working or looking for work.
4. Out-of-pocket medical expenses in excess of a $35
deductible for a person aged 60 or older or a disabled
person. If more than one person in the household is
aged or disabled, $35 is subtracted once before
deducting combined medical expenses.
5. Legally owed child support payments.
6. Excess shelter expenses, which are total shelter costs
including utilities minus 50 percent of income after all
the above deductions have been subtracted. Effective
October 1, 2002, the limit was $367. The limit does not
apply to households with an aged or disabled member.
Households are certified to receive food stamps for
varying lengths of time, depending on their income sources
and individual circumstances. Recertification is required at
least annually. Households whose sole income is from SSI
payments or Social Security benefits are certified for a 12month period, although states may request a waiver allowing for a 24-month certification period for these households. Households must report monthly income or expense
changes of $25 or more or other changes in circumstances
that would affect eligibility.
Families with income or food loss resulting from disaster situations such as tornadoes or floods may be eligible
for food stamps for up to 1 month if they meet the special
disaster income and asset limits.
Special provisions allow the homeless, drug addicts,
alcoholics, blind, or disabled residents in certain group living arrangements, residents of shelters for battered
spouses and children, and persons aged 60 or older to use
their coupons for meals prepared at a nonprofit facility. The
elderly and homeless may also use their coupons to purchase concession-priced meals from authorized restaurants.
Households with members who are elderly (aged 60 or
older), disabled, or lack transportation to the food stamp
office may be certified for food stamps through a telephone
interview or a home visit.
Initiated on a pilot basis in 1961, the Food Stamp program was formally established by the Food Stamp Act of
1964, with 22 states operating 43 projects, serving 350,000
people. The Food Stamp Act of 1977, as amended (P.L. 95113), has been extended to all 50 states, the District of
Columbia, Guam, and the Virgin Islands. Authorization for

Annual Statistical Supplement, 2003 ♦ 65

this program extends through September 30, 2002. (Since
July 1982, Puerto Rico receives a block grant for nutrition
assistance rather than participating in the Food Stamp program.)
The Food Stamp program is administered nationally by
the Food and Nutrition Service of the Department of Agriculture (USDA) and operates through local welfare offices
and the nation's food marketing and banking systems.
Since August 1, 1980, persons receiving or applying for
SSI payments have been permitted to apply for food
stamps through local Social Security district offices. The
federal government, through general revenues, pays the
entire cost of the food stamp benefits, but federal and state
agencies share administrative costs.
An average of 18.9 million persons per month participated in the Food Stamp program each month during the
first eight months of fiscal year 2002 (the period from October 2001 through May 2002). The average monthly value of
food stamps per person was about $79.75, and the total
value of benefits issued during the first eight months of the
year was $12.1 billion. Total federal government costs for
this program were $13.1 billion.

History of Provisions
The Food Stamp Act of 1984 (P.L. 88-525) established the
Food Stamp program. Originally, participants were required
to purchase food stamp coupons. The difference between
the face value of the coupons and the amount the participant paid was known as the "bonus value." The amount
paid for coupons varied according to household income.
Amendments to the 1964 Act, enacted in 1971 (P.L. 91671), established uniform national eligibility standards and
uniform national benefit levels, required family allotments
large enough to purchase a nutritionally adequate diet, provided free food stamps to the poorest recipients, required
automatic cost-of-living increases in food stamp allotments,
and established work-registration requirements for ablebodied adult household members up to age 65 (except students and those needed at home to care for children under
age 18).
The Agriculture and Consumer Protection Act of 1973
(P.L. 93-86) expanded the program (while phasing out the
family food distribution program), provided for semi-annual
allotments of coupon adjustments, and broadened the categories of persons eligible to participate. This legislation
extended the program nationwide, requiring all states to
participate in the Food Stamp program.
The Food and Agricultural Act of 1977 (P.L. 95-113)
made sweeping changes to the Food Stamp program. It
eliminated the purchase requirement and allowed households to receive only the bonus portion of their coupon
allotments. Deductions from income were limited to a standard deduction, a 20-percent earnings deduction, and a
combined excess shelter and child care deduction. The
66 ♦ Annual Statistical Supplement, 2003

poverty guidelines became the new eligibility limits and, for
the first time, households receiving Aid to Families with
Dependent Children (AFDC) or SSI payments were
required to meet asset and income limits. The work registration requirements were tightened for students and for
caretakers, whose children now had to be under age 12.
Parents of children aged 12 or older were required to register for work. However, the age at which the registration
exemption for older persons became effective was lowered
from age 65 to age 60.
The Food Stamp Act Amendments of 1979 (P.L. 96-58)
provided a medical deduction to elderly and disabled persons, removed the limit on their shelter deduction, and
tightened fraud provisions.
Legislation enacted in 1980 provided for an annual,
rather than semi-annual, adjustment to benefit levels and
the amount of the standard deduction. This legislation also
restricted student eligibility.
The Omnibus Budget Reconciliation Act (P.L. 97-35)
and the Food Stamp and Commodity Distribution Amendments of 1981 (P.L. 97-98) mandated further changes in
the Food Stamp program. For the first time, a gross income
eligibility standard was applied to all households not containing an aged or disabled person. The earnings deduction
was lowered to 18 percent. The updates to the TFP to
account for inflation were postponed until October 1982
and the deduction limits were postponed until July 1983.
For new participants, benefits for the first month were prorated from the day the application was filed. Boarders and
persons who take part in strikes were excluded from the
program and the definition of what constitutes a household
was tightened. Provisions facilitating claims and overpayment collection and fraud recovery were also enacted.
The program in Puerto Rico was replaced by a block
grant. Monthly reporting and retrospective accounting systems were made mandatory for all states effective October
1983. Households composed solely of all aged or disabled
persons, as defined above, were exempted from the
monthly reporting requirements, and migrant households
were exempted from both requirements.
Further revisions were made by the Food Stamp
Amendments of 1982 (P.L. 97-252). The maximum allotment was reduced from 100 percent to 99 percent of the
TFP and adjustments to the standard and shelter deductions were delayed until October 1, 1983. (P.L. 98-473
restored maximum food stamp allotments to the full cost of
the TFP beginning November 1, 1984.) A net income limit
for nonelderly and nondisabled households was added to
the existing gross income limit. Benefit computations and
adjustments were rounded down to the nearest dollar, and
new restrictions were placed on the use of the Standard
Utility Allowance for the excess shelter expense deduction.
At the same time, the definition of disability for food stamp
purposes was expanded to include those persons receiving

certain veterans' payments, and annual cost-of-living
adjustments to SSI payments and Social Security benefits
were not counted in determining food stamp amounts for 3
months.

Legislation enacted in 1992 prevented a one-time
decrease of food stamp allotments for the year beginning
October 1, 1992, even though the cost of the TFP had
declined slightly.

The Food Stamp program authorization was extended
for 5 years by the Food Security Act of 1985 (P.L. 99-198).
Among the revisions enacted, the definition of disability for
food stamp purposes was again extended to include recipients of state supplementary SSI payments, government
disability benefits, and Railroad Retirement disability payments.

The Omnibus Budget Reconciliation Act of 1993
(Mickey Leland Childhood Hunger Relief Act, P.L. 103-66)
made a number of program revisions including the following.

Households in which all members receive AFDC or SSI
were made categorically eligible for food stamps. The
earned income, child care, excess shelter cost deductions,
and asset limits were increased as of May 1986. Portions of
the income received under the Job Training Partnership Act
were now considered countable income. Further, all states
were required to implement an employment and training
program for food stamp recipients by April 1987.
The Hunger Prevention Act of 1988 (P.L. 100-435)
made several changes in the program. It raised the maximum food stamp allotments and established allotments as
specified percentages of the TFP as of the preceding June.
For fiscal year 1989, the allotments were 100.65 percent of
the TFP for June 1988; for fiscal year 1990, they were
102.05 percent of the TFP for June 1989; and for fiscal
years 1991 and on, they are to be 103.00 percent of the
TFP.
Other provisions of the 1988 legislation required states
to institute prospective budgeting for households not
required to report monthly and retrospective budgeting for
households reporting monthly. It extended disability status
to individuals who receive interim assistance pending the
receipt of Supplemental Security Income, Social Security,
or state disability payments, and allowed the elderly, disabled, and those without transportation to apply for food
stamps via telephone interviews. It required states to process Food Stamp applications jointly with AFDC and general assistance applications. It raised the dependent-care
deduction from $160 per household to $160 per dependent. It made permanent an amendment in the Homeless
Eligibility Clarification Act that exempts residents of shelters from ineligibility as residents of institutions.
Several provisions of the 1988 legislation also affect
persons in farming. Households with farm income and
expenses were given the option of averaging irregular
farm-related expenses and farm income over 12 months
and excluding as resources the value of farm land, equipment, and supplies for a period of 1 year after a household
member ceases to be self-employed in farming.
The Mickey Leland Memorial Domestic Hunger Relief
Act of 1990 (P.L. 101-624) reauthorized the Food Stamp
program and the Nutrition Assistance Program in Puerto
Rico with no major changes through fiscal year 1995.

The earnings of elementary or high school students
who were aged 21 or younger were disregarded.

Households that had breaks in participation of less
than a month were allowed to receive a full month's
benefit for the period of the break.

The children of drug addicts and alcoholics living in
treatment centers were permitted to qualify for food
stamps.

Food stamp households participating in demonstration
projects were permitted to accumulate up to $10,000 in
resources.

The shelter cap was raised to $231 beginning July 1,
1994, then to $247 beginning October 1995, and was
to be eliminated entirely on January 1, 1997.

The deduction for care of a child or other dependent
was raised to $200 per month for a child under age 2,
and $175 per month for all other dependents, effective
September 1, 1994.

State agencies were given the option to provide deductions for legally binding child support payments made
to persons outside the household, effective September
1, 1994. This deduction became mandatory October 1,
1995.

The definition of a food stamp household was simplified to allow adult siblings who lived together and adult
children who lived with their parents to form separate
households if they purchased or prepared food separately.

The amount of the Fair Market Value of a household's
first vehicle that is excluded from the asset test was
increased from $4,500 to $4,550, effective September
1, 1995. The limit was to have been raised to $5,000,
effective October 1, 1996, and indexed thereafter.

Legislation enacted in 1994 primarily provided means
to combat fraud in the coupon redemption process.
Legislation enacted in 1995 prevented a one-time
decrease of food stamp allotments in Alaska for the year
beginning October 1, 1994, even though the cost of the
TFP for Alaska had declined slightly.
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193) made sweeping
changes to the Food Stamp program. The following addi-

Annual Statistical Supplement, 2003 ♦ 67

tance for Needy Families program. In the simplified
Food Stamp program, states may utilize their TANF
rules to determine Food Stamp program benefits, provided the TANF rules do not increase the aggregate
cost of the Food Stamp program.

tional restrictions were placed on the eligibility of certain
low-income persons.

Legal immigrants became ineligible for benefits, unless
they met one of the following criteria: were naturalized
citizens, had worked and paid taxes in the country for
40 quarters (or were the spouse or minor child of
someone who had met the work requirement), had
served in the U.S. armed forces (or were the spouse or
child of a veteran) or were refugees, asylees, or persons granted a stay of deportation when admitted and
have lived in the United States for less than 5 years.
Legal immigrants currently receiving benefits were
allowed to receive benefits until their first recertification
after April 1, 1997, or until August 22, 1997, whichever
date came first.
Time limits were imposed for childless unemployed
adults aged 18–50. Those who are not disabled are
limited to receiving 3 months of benefits in any 36month period, unless they are working 20 hours per
week, participating in a work training program for at
least 20 hours per week, or participating in work fare.
States may request waivers for areas with at least 10percent unemployment or insufficient jobs.
Other key provisions included the following:

The maximum allotment was set at 100 percent of the
Thrifty Food Plan, effective October 1, 1996.

The standard deduction was frozen at $134.

The excess shelter deduction cap was set at $250,
effective January 1, 1997 (instead of being lifted), to be
raised to $275 on October 1, 1998, and to $300 on
October 1, 2000.

The earnings of elementary or high school students
aged 18–21 were counted again.

Households with breaks in participation of less than a
month received prorated benefits for the period of the
break.

Adult children under age 22 living with their parents
were counted in the same household as their parents.

The amount of Fair Market Value for a household's first
vehicle that is excluded from the asset test was frozen
at $4,650, effective October 1, 1996.

State and local energy assistance was counted as
income.

Recipients could be disqualified or given sanctions for
a variety of reasons, such as failure to pay child support, receipt of multiple benefits, or failure to meet work
requirements.

States were permitted to operate a simplified Food
Stamp program for households in which all household
members participate in the state's Temporary Assis-

68 ♦ Annual Statistical Supplement, 2003

States were required to implement Electronic Benefit
Transfer (EBT) systems for issuing benefits before
October 1, 2002, unless USDA granted a waiver.

The Balanced Budget Act of 1997 (P.L. 105-33)
increased funds for the Food Stamp Employment and
Training program, restricted the use of these funds, and
made them available until spent. States were required to
earmark 80 percent of these funds to provide work or training programs to childless, unemployed, able-bodied 18–50
year olds. The Act also allowed states to grant discretionary exemptions from the time limits for up to 15 percent of a
state's unwaived caseload of childless, unemployed, ablebodied 18–50 year olds.
The Agricultural Research, Extension, and Education
Reform Act of 1998 (P.L. 105-185) partially restored benefits to legal immigrants. Those who were lawfully residing in
the United States on August 22, 1996, and are either: (1)
blind or disabled (using the Food Stamp Act definition of
"disability"), (2) aged 65 or older on August 22, 1996, or (3)
under the age of 18 were eligible for benefits effective
November 1, 1998. In addition, refugees and asylees were
made eligible for the first 7 years after admittance into the
United States (extended from 5 years). Members of Hmong
or Highland Laotian tribes aiding U.S. personnel during the
Vietnam War, and their spouses or unmarried dependent
children were made eligible. Cross-border Native Americans were also made eligible. Other provisions reduced the
funding for Employment and Training Programs by $100
million in 1999 and by $45 million in 2000 and reduced payments for Food Stamp program administrative costs.
The Electronic Benefit Transfer (EBT) Interoperability
and Portability Act of 2000 (P.L. 106-71) required states to
make their EBT systems interoperable across state lines by
October 2, 2002.
The Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriation Act,
2001 (P.L. 106-387) made the following changes to the
Food Stamp program:

Effective July 2001, at state option, state agencies
could substitute TANF vehicle rules in place of food
stamp vehicle rules provided that the TANF vehicle
rules were more liberal.

Effective March 2001, for households whose certification period began on or after March 1, 2001, the maximum excess shelter deduction limit rose to $340 and
was to be adjusted for inflation on October 1, 2002, and
every year after.

The Farm Security and Rural Investment of 2002, H.R.
107-171, reauthorized the Food Stamp program through
September 30, 2007. It contained the following provisions:

This legislation also provided states with a number of
options:

States could extend from 3 months to 5 months the
period of time that households leaving TANF could
receive food stamps without recertification. The benefit
amount would be equal to the amount received by the
household prior to the household leaving TANF, with
adjustments made for the loss of TANF income.

The current fixed standard deduction was replaced with
a deduction that varies according to household size
(with larger households receiving larger deductions)
and is adjusted annually.

States could exclude certain types of income that were
excluded under the state’s TANF plan. States could
exclude types of resources that were excluded under
the state’s TANF or Medicaid programs.

The resource limit for households with a disabled member was increased from $2,000 to $3,000, consistent
with the resource limit for households with elderly
members.

States could disregard reported changes in deductions
during certification periods unless the changes were
associated with a new residence or earned income.

The requirement that federal costs for electronic benefit
transfer systems not exceed the costs of paper coupon
systems was eliminated.

States could use the full standard utility allowance
(SUA) rather than a prorated SUA for households sharing living quarters.

The Quality Control System, which historically measured payment accuracy, was substantially changed,
with the liability threshold raised to 105 percent of the
national average for 2 consecutive years. The current
incentive system was replaced by bonuses for states
demonstrating high or most improved performance.

States could treat child support payments to nonhousehold members as an income exclusion rather than a
deduction.

States could extend semi-annual reporting of changes
to all households not exempt from periodic reporting.

Effective April 1, 2003, legal immigrants with 5 years
residency in the United States became eligible for food
stamps. Effective October 1, 2003, eligibility was
extended to legal immigrants under age 18, regardless
of date of arrival in the United States.

CONTACT: Jenny Genser (703) 305-2152.

Annual Statistical Supplement, 2003 ♦ 69

Low-Income Home Energy Assistance Program
The Omnibus Budget Reconciliation Act of 1981 (P.L. 9735), signed into law by the President on August 13, 1981,
authorized seven block grants to be administered by the
Department of Health and Human Services (HHS).4 As one
of HHS' block grants, the Low-Income Home Energy Assistance Program (LIHEAP) is administered by the Administration for Children and Families' Office of Community
Services (http://www.acf.hhs.gov/programs/liheap). Title
XXVI of the Act authorized LIHEAP for fiscal years 1982–
1984. Title VI of the Human Services Reauthorization Act of
1984 (P.L. 98-88) reauthorized and amended LIHEAP for
fiscal years 1985–1986. Title V of the Human Services
Reauthorization Act of 1986 (P.L. 99-425) reauthorized and
amended LIHEAP for fiscal years 1987–1990. Title VII of
the Augustus F. Hawkins Human Services Reauthorization
Act of 1990 (P.L. 101-501) reauthorized and amended
LIHEAP for fiscal years 1991–1994. Title XX of the National
Institutes of Health Revitalization Act of 1993 (P.L. 103-43)
reauthorized LIHEAP for fiscal year 1995. Title III of the
Human Services Amendments of 1994 (P.L. 103-252) reauthorized and amended LIHEAP for fiscal years 1995–
1999.5 Title III of the Coats Human Services Reauthorization Act of 1996 (P.L. 105-285) reauthorized and amended
LIHEAP for fiscal years 2000–2004. No new provisions
became effective in fiscal year 2001.
Under LIHEAP, grants are provided to grantees to
assist eligible households to meet the costs of home
energy. In addition to the 50 states and the District of
Columbia, grants were provided in fiscal year 2001 to 128
Indian tribes or tribal organizations and 5 insular areas.
In accordance with the Act, the Secretary of HHS has
left maximum policy discretion to the grantees. The federal
information collection and reporting requirements for grantees were substantially reduced to require only information
essential to federal administration and congressional oversight. Grantee decisions, directed by public participation in
the development of grant applications, largely replaced federal regulations in shaping the program for fiscal years
1982–2001.

FY 2001. Those advance funds became available on October 1, 2000, the beginning of FY 2001.
LIHEAP emergency contingency funds were available
in FY 2001. Under the terms of the contingency fund provision, the President could request all, part, or none of the
emergency contingency funds for FY 2001; could distribute
any amount so requested to all LIHEAP grantees or to just
a portion of them; and could use the regular block grant formula or a different formula. As described below, there were
three sources of emergency contingency funds available
for FY 2001. The first two funds were released to assist low
income households facing significant price increases in
heating oil, natural gas, and propane prices in the winter.

The Emergency Supplemental Act of 2000 (Public Law
106-46), signed into law on July 13, 2000, appropriated
$600 million in LIHEAP emergency contingency funds
to be available to HHS until expended (no-year funds).
The President released $444.35 million of the funds in
FY 2000.

The President released the remaining $155.65 million
in FY 2001 on December 18, 2000. Half of the funds
was awarded to the states, Indian tribes or tribal organizations, and the insular areas based on the LIHEAP
block grant formula. The other half was distributed
based on the LIHEAP block grant formula weighted by
the relative percentage of low income households in
each state that used fuel oil, natural gas, and propane
for home heating.

The Consolidated Appropriations Act for FY 2001
(Public Law 106-554), signed into law on December
21, 2000, appropriated $300 million for FY 2001 for
LIHEAP emergency contingency funds. The President
released the $300 million on December 30, 2000.
These funds were distributed to all grantees in the
same manner in which the $155.65 million was distributed.

The Supplemental Appropriations Act of 2001 (Public
Law 107-20), signed into law on July 24, 2001, appropriated an additional $300 million in LIHEAP energy
emergency contingency funds to remain available to
HHS until expended (no-year funds). None of the additional $300 million was released in FY 2001.

Funding
In addition to appropriating LIHEAP funds for FY 2000, the
FY 2000 Consolidated Appropriations Act (Public Law 106113) signed by the President on November 29, 1999,
appropriated advance block grant funds of $1.1 billion for
4. Effective in fiscal year 1987 the Primary Care Block Grant was
repealed by the Health Services Amendment Act of 1985 (P.L. 99-80)
enacted April 26, 1986.
5. The 1994 amendments provided that up to 25 percent of leveraging
incentive funds may be set aside for the Residential Energy Assistance
Challenge (REACH) program.

70 ♦ Annual Statistical Supplement, 2003

Fiscal year 2001 LIHEAP funds were distributed
approximately as follows:

$1.36 billion in block grants to the 50 states and the
District of Columbia;

$12.5 million in direct block grants to 128 Indian tribes
and tribal organizations;

$1.9 million in block grants to the Commonwealth of
Puerto Rico, Virgin Islands, American Samoa, Guam,
and the Commonwealth of the Northern Mariana
Islands;

$451 million in emergency contingency funds to 50
states and the District of Columbia, $4.0 million to 128
Indian tribes and tribal organizations, and $308 thousand to the Commonwealth of Puerto Rico, Virgin
Islands, American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands;

$19.2 million in leveraging incentive awards to 37
states,$1.4 million in leveraging incentive awards to 30
Indian tribes and tribal organizations; and $23 thousand in leveraging incentive awards to the Commonwealth of the Northern Mariana Islands;

$4.5 million in REACH program awards to 5 states,
$1.2 million to 8 Indian tribes and tribal organizations,
$150 thousand to the Commonwealth of the Northern
Mariana Islands, and $1.0 million to 12 states for second and third year REACH administrative costs; and

Give consideration to agencies that have previously
managed the program when designating local agencies to carry out the purposes of the program;

Assure that energy suppliers receiving benefits directly
on behalf of eligible households not treat assisted
households adversely;

Treat owners and renters equitably;

Use not more than 10 percent of its allotment for planning and administration;

Establish fiscal control and accounting procedures for
proper disbursal of and accounting for federal funds,
establish procedures for monitoring assistance provided, and prepare an annual audit;

Permit and cooperate with federal investigations;

Provide for public participation in the development of its
plan;

Provide an opportunity for a fair administrative hearing
to individuals whose claims for assistance are denied
or not acted on with reasonable promptness;

Cooperate with HHS in collecting and reporting data
under section 2610 of the statute;

Provide outreach and intake through additional state
and local government entities or community-based
organizations under certain circumstances; and

Use no more than 5 percent of funds to encourage and
enable households to reduce their home energy needs.

$0.3 million for training and technical assistance.

The funds appropriated for LIHEAP provide payments
to eligible households for heating or cooling costs and for
home energy crises. Up to 15 percent of the available
funds may be used for low-cost residential weatherization
or other energy-related home repairs. Grantees can
request from HHS a waiver to allow up to 25 percent of
available funds to be spent for low cost residential weatherization or other energy-related home repairs.
To receive grants in each of the three fiscal years, each
grantee had to submit an application consisting of signed
assurances by its chief executive officer and a plan
describing how the grantee would carry out those assurances. In the assurances, the grantee agreed to:

Use funds only for the purposes of the statute;

Make payments only to eligible low-income households;

Conduct outreach activities;

Coordinate LIHEAP activities with similar and related
programs;

Provide, in a timely manner, that the highest level of
assistance will be furnished to those households with
the lowest incomes and highest energy costs in relation
to income, taking into account family size, except that
the grantee may not differentiate between categorically
eligible and income eligible households;

Eligibility
The unit of eligibility for energy assistance is the household, defined as any individual or group of individuals who
are living together as one economic unit for which residential energy is customarily purchased in common, either
directly or through rent. The Act limits payments to those
households with incomes under the greater of 150 percent
of the income guidelines or 60 percent of the state's
median income or to those households with members
receiving benefits from the Temporary Assistance for
Needy Families (TANF) program, SSI, Food Stamps, or
needs-tested veterans' benefits. No household may be
excluded from eligibility on the basis of income alone if
household income is less than 110 percent of the poverty
guidelines. Grantees are permitted to set more restrictive
criteria as well.

Annual Statistical Supplement, 2003 ♦ 71

Payments
Grantees make fuel assistance payments directly to eligible
households or to home energy suppliers on behalf of eligible households. Payments can be provided in cash, fuel,
prepaid utility bills, or as vouchers, stamps, or coupons that
can be used in exchange for energy supplies. Payments

72 ♦ Annual Statistical Supplement, 2003

are to vary in such a way that the highest level of assistance is furnished to households with the lowest incomes
and highest energy costs in relation to income, taking into
account family size.
CONTACT: Leon Litow (202) 401-5304.

Tables

SuppDividerb2003.pmd

4

8/30/2004, 10:25 AM

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A1—Covered employment and self-employment provisions, by year enacted
Year enacted

Coverage election or waiver

Provision

1935

...

All workers in commerce and industry (except railroads) under age 65 in the continental United States, Alaska, and
Hawaii and on American vessels. (Covered after 1936.)

1939

...

Age restriction eliminated.

1946

...

Railroad and Social Security earnings combined to determine eligibility for and amount of survivors benefits.

1950

...

Regularly employed farm and domestic workers. Nonfarm self-employed (except members of professional groups).
Federal civilian employees not under a federal retirement system. U.S. citizens employed outside the United States by
American employers. Workers in Puerto Rico and the Virgin Islands (effective January 1, 1951).

Elective by employer

State and local government employees not under a state and local government retirement system. Termination permitted
2 years after giving notice if group has 5 years of coverage when notice is given.

Elective by employer
and employee

Employees (other than members of the clergy) of nonprofit organizations (upon election by employer, each current
employee given a choice as to coverage; new employees are covered). Nonprofit organizations permitted to terminate
coverage 2 years after giving notice, if the organization has 8 years of coverage when notice is given.

1951

...

Railroad workers with less than 10 years of service, for all benefits. (After October 1951, coverage retroactive to 1937.)

1954

...

Farm self-employed. Professional self-employed except lawyers, dentists, physicians, and members of other medical
groups (taxable years ending after 1954). Additional regularly employed farm and domestic workers. Homeworkers.

Elective by employer

U.S. citizens employed outside the United States by a foreign subsidiary of an American employer.

Elective by employer
and employee

State and local government employees (except fire fighters and police personnel) under a state or local government
retirement system (coverage provided at state's option; a majority of the eligible employees must vote in favor). See
above (elective by employer, 1950) for termination rule.

Elective by individual

Members of the clergy and of religious orders not under a vow of poverty.

...

Members of the uniformed services on active duty or on active duty for training. Remainder of professional self-employed
except physicians (taxable years ending after 1955). Farm landlords who materially participate in farm operations.

Elective by employer
and employee

Fire fighters and police personnel in designated states. State and local government employees under a state or local
government retirement system in designated states may be divided into two systems, one excluding employees not
desiring coverage (new employees covered).

1960

...

U.S. citizens employed in United States by foreign governments or international organizations. Parents working for
children (except domestic or casual labor). Workers in Guam and American Samoa.

1965

...

Interns. Self-employed physicians (taxable years ending on or after December 31, 1965). Tips for employee tax only.

Elective by individual

Members of certain religious sects may obtain exemptions from self-employed coverage (retroactive to 1951).

Elective by employer
and employee

Fire fighters under state and local government retirement system (under a majority favorable vote) and only if governor of
state certifies Social Security protection.

Subject to waiver
by individual

Members of the clergy and of religious orders not under a vow of poverty are covered automatically, but they can choose
to be exempt on grounds of conscience or religious principles. Taxable years ending after 1967.

1972

Elective by employer

Members of a religious order who are subject to a vow of poverty. Retroactivity allowed for 5 years but not earlier than
January 1, 1968.

1977

Elective by individual

Members of the clergy and of religious orders who filed an application for exemption from coverage may revoke the
exemption if the revocation is filed before the due date of the individual's federal income tax return for the first taxable
year beginning after December 20, 1977.

1982

...

Federal employees—Hospital Insurance (Part A) program only, effective January 1, 1983.

1983

...

Federal employees newly hired after December 31, 1983, including executive, legislative, and judicial branch employees,
and also including those hired before January 1, 1984, with a break in service lasting more than 365 days. Excludes reemployed annuitants hired before January 1, 1984.

...

Legislative branch employees hired before 1984 who were not participating in the Civil Service Retirement System on
December 31, 1983.

...

Members of Congress, the President, the Vice President, sitting federal judges, and most executive-level political
appointees of the federal government.

1956

1967

1984

1986

...

Employees of nonprofit organizations.

...

U.S. residents employed outside the United States by American employers.

Elective by employer

U.S. residents employed outside the United States by a foreign affiliate of an American employer.

...

Employees of nonprofit organizations placed under compulsory coverage; nonprofit organizations prohibited from
terminating coverage of their employees on or after March 31, 1983.

Elective by employer or by
employer and employee

States prohibited from terminating coverage of employees (after April 20, 1983) and permitted to reinstate coverage for a
terminated group.

...

Rehired federal employees whose previous service was covered.

...

Persons exercising reemployment rights to noncovered federal employment retain exemption after a period (not limited to
365 or fewer days) of military or national guard service or work for an international organization.

...

Generally, all legislative branch employees except those who were participating on December 31, 1983, and are also
currently participating in the Civil Service Retirement System or another federal retirement system.

...

Employees of nonprofit organizations who are also participating on a mandatory basis in the Civil Service Retirement
System are treated like federal employees for Social Security tax and coverage purposes. They are therefore not
covered unless hired on or after January 1, 1984, or reemployed after a break in service of more than 365 days.

Elective by employer

Churches or church-related organizations may elect irrevocably to have services performed by their employees excluded
from covered employment. Their employees are then treated as self-employed for Social Security purposes.

...

State and local government employees hired after March 31, 1986—Hospital Insurance (Part A) program only.

Elective by individual

Members of the clergy and of religious orders who filed an application for exemption from coverage may revoke the
exemption if the revocation is filed before the due date of the individual's federal income tax return for the first taxable
year beginning after October 22, 1986.
(Continued)

Annual Statistical Supplement, 2003 ♦ 2.1

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A1—Covered employment and self-employment provisions, by year enacted—Continued
Year enacted

Coverage election or waiver

Provision

1987

...

Members of uniformed services reserve components on inactive duty training. Irregularly employed farm workers (if
employer's annual expenditures for farm labor is at least $2,500). Services performed in trade or business of spouse or by
children aged 18 or older in trade or business of parent. For employers, the full amount of covered tips.

1990

...

State and local government employees not under a state or local government retirement system. Exceptions: (1) students
employed by the educational institution they attend and (2) election workers paid less than the mandated amount ($100),
unless either group covered under a state’s Section 218 agreement.

1994

...

Threshold for exclusion of wages paid to election workers raised from $100 to $1,000 annually beginning January 1,
1995, and will be indexed for wage increases each year after December 31, 1999.

...

Police and fire fighters under a public retirement system can be covered for Social Security in all states.

...

Threshold for coverage of domestic employees' earnings raised from $50 per calendar quarter to $1,000 per calendar
year per employer; amount subject to annual automatic adjustments. Domestic workers no longer covered for years in
which they were under age 18, unless they are no longer in school and domestic employment is their principal occupation.
Coverage of earnings of domestic workers on farms becomes subject to new annual threshold for domestic workers
instead of annual threshold for agricultural employees.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

2.2 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A2—Noncontributory wage credit provisions, by year enacted
Year enacted

Provision

1946

Fully insured status and average monthly wage of $160 for World War II veterans who died within 3 years after discharge.

1950

Wage credits of $160 per month of military service during World War II period (September 16, 1940–July 24, 1947).

1952

Wage credits of $160 per month of military service to December 31, 1953.

1953

Wage credits of $160 per month of military service to June 30, 1955.

1954

Wage credits of $160 per month of military service to March 31, 1956.

1956

Wage credits of $160 per month of military service to December 31, 1956.

1967

For uniformed services, wage credits of $100 for each $100 (or fraction thereof) of basic pay not in excess of $300 per calendar quarter, beginning in
1968.

1972

For uniformed services, wage credits of $300 per calendar quarter of service after 1956. (Supersedes 1967 provision.) For U.S. citizens of Japanese
ancestry, wage credits for the period they were interned by the U.S. government during World War II period (December 7, 1941–December 31, 1946)
and were aged 18 or older.

1977

For uniformed services, wage credits of $100 for each $300 of basic pay up to maximum credit of $1,200 per calendar year after 1977.

2002

For uniformed services, deemed wage credits are eliminated for all years after calendar year 2001. Deemed wage credits will continue to be given for
appropriate earnings for periods prior to calendar year 2002.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.3

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A3—Annual maximum taxable earnings and contribution rates, 1937–2003
Contribution rate (percent)

Annual maximum
taxable earnings (dollars)

Employer and employee, each

Self-employed person

OASDI

HI

Total,
OASDI
and HI

1937–1949
1950
1951–1953
1954
1955–1956
1957–1958
1959

3,000
3,000
3,600
3,600
4,200
4,200
4,800

...
...
...
...
...
...
...

1.0
1.5
1.5
2.0
2.0
2.25
2.5

1.0
1.5
1.5
2.0
2.0
2.0
2.25

...
...
...
...
...
0.25
0.25

...
...
...
...
...
...
...

...
...
2.25
3.0
3.0
3.375
3.75

...
...
2.25
3.0
3.0
3.0
3.375

...
...
...
...
...
0.375
0.375

...
...
...
...
...
...
...

1960–1961
1962
1963–1965
1966
1967
1968
1969

4,800
4,800
4,800
6,600
6,600
7,800
7,800

...
...
...
6,600
6,600
7,800
7,800

3.0
3.125
3.625
4.2
4.4
4.4
4.8

2.75
2.875
3.375
3.5
3.55
3.325
3.725

0.25
0.25
0.25
0.35
0.35
0.475
0.475

...
...
...
0.35
0.5
0.6
0.6

4.5
4.7
5.4
6.15
6.4
6.4
6.9

4.125
4.325
5.025
5.275
5.375
5.0875
5.5875

0.375
0.375
0.375
0.525
0.525
0.7125
0.7125

...
...
...
0.35
0.5
0.6
0.6

7,800
7,800
9,000
10,800
13,200

7,800
7,800
9,000
10,800
13,200

4.8
5.2
5.2
5.85
5.85

3.65
4.05
4.05
4.3
4.375

0.55
0.55
0.55
0.55
0.575

0.6
0.6
0.6
1.0
0.9

6.9
7.5
7.5
8.0
7.9

5.475
6.075
6.075
6.205
6.185

0.825
0.825
0.825
0.795
0.815

0.6
0.6
0.6
1.0
0.9

14,100
15,300
16,500
17,700
22,900

5.85
5.85
5.85
6.05
6.13

4.375
4.375
4.375
4.275
4.33

0.575
0.575
0.575
0.775
0.75

0.9
0.9
0.9
1.0
1.05

7.9
7.9
7.9
8.1
8.1

6.185
6.185
6.185
6.01
6.01

0.815
0.815
0.815
1.09
1.04

0.9
0.9
0.9
1.0
1.05

25,900
29,700
32,400
35,700
37,800

6.13
6.65
6.7
6.7
b 7.0

4.52
4.7
4.575
4.775
5.2

0.56
0.65
0.825
0.625
0.5

1.05
1.3
1.3
1.3
1.3

8.1
9.3
9.35
9.35
b 14.0

6.2725
7.025
6.8125
7.1125
10.4

0.7775
0.975
1.2375
0.9375
1.0

1.05
1.3
1.3
1.3
2.6

39,600
42,000
43,800
45,000
48,000

7.05
7.15
7.15
7.51
7.51

5.2
5.2
5.2
5.53
5.53

0.5
0.5
0.5
0.53
0.53

1.35
1.45
1.45
1.45
1.45

b
b
b

14.1
14.3
14.3
15.02
15.02

10.4
10.4
10.4
11.06
11.06

1.0
1.0
1.0
1.06
1.06

2.7
2.9
2.9
2.9
2.9

51,300
125,000
130,200
a 135,000

7.65
7.65
7.65
7.65
7.65

5.6
5.6
5.6
5.6
5.26

0.6
0.6
0.6
0.6
0.94

1.45
1.45
1.45
1.45
1.45

15.3
15.3
15.3
15.3
15.3

11.2
11.2
11.2
11.2
10.52

1.2
1.2
1.2
1.2
1.88

2.9
2.9
2.9
2.9
2.9

Year

1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984

a
a
a
a

a
a
a

a
a
a
a

14,100
15,300
16,500
17,700
22,900
25,900
29,700
32,400
35,700
37,800

a
a
a
a
a
a
a
a

OASI

DI

HI

Total,
OASDI
and HI

OASI

DI

HI

1985
1986
1987
1988
1989

a
a
a
a
a

39,600
42,000
43,800
45,000
48,000

1990
1991
1992
1993
1994

c
c
c
a
a

51,300
53,400
55,500
57,600
60,600

1995
1996
1997
1998
1999

a
a
a
a
a

61,200
62,700
65,400
68,400
72,600

e
e
e
e
e

7.65
7.65
7.65
7.65
7.65

5.26
5.26
5.35
5.35
5.35

0.94
0.94
0.85
0.85
0.85

1.45
1.45
1.45
1.45
1.45

15.3
15.3
15.3
15.3
15.3

10.52
10.52
10.7
10.7
10.7

1.88
1.88
1.7
1.7
1.7

2.9
2.9
2.9
2.9
2.9

2000
2001
2002
2003

a
a
a
a

76,200
80,400
84,900
87,000

e
e
e
e

7.65
7.65
7.65
7.65

5.3
5.3
5.3
5.3

0.9
0.9
0.9
0.9

1.45
1.45
1.45
1.45

15.3
15.3
15.3
15.3

10.6
10.6
10.6
10.6

1.8
1.8
1.8
1.8

2.9
2.9
2.9
2.9

c

d

ee

b
b

a. Based on automatic adjustment, under 1972 legislation (as modified by 1973 legislation), in proportion to increases in average wage level.
b. Includes tax credit, see Table 2.A5.
c. Based on automatic adjustment, under 1972 legislation (as modified by 1973 legislation), using a transitional rule, specified by the Omnibus Budget Reconciliation Act
(OBRA) of 1989, for computing a “deemed” average annual wage for 1988, 1989, and 1990.
d. Based on 1990 legislation.
e. Upper limit on earnings subject to HI taxes was repealed by OBRA 1993.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

2.4 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A4—Maximum annual amount of contributions, 1937–2003 (in dollars)
Employee

Self-employed person

Year

Total,
OASDI
and HI

HI

Total,
OASDI
and HI

Subtotal,
OASDI

OASI

DI

Subtotal,
OASDI

1937–1949
1950
1951–1953
1954
1955–1956
1957–1958
1959

30.00
45.00
54.00
72.00
84.00
94.50
120.00

30.00
45.00
54.00
72.00
84.00
94.50
120.00

30.00
45.00
54.00
72.00
84.00
84.00
108.00

OASI

DI

HI

...
...
...
...
...
10.50
12.00

...
...
...
...
...
...
...

...
...
81.00
108.00
126.00
141.75
180.00

...
...
81.00
108.00
126.00
141.75
180.00

...
...
81.00
108.00
126.00
126.00
162.00

...
...
...
...
...
15.75
18.00

...
...
...
...
...
...
...

1960–1961
1962
1963–1965
1966
1967
1968
1969

144.00
150.00
174.00
277.20
290.40
343.20
374.40

144.00
150.00
174.00
254.10
257.40
296.40
327.60

132.00
138.00
162.00
231.00
234.30
259.35
290.55

12.00
12.00
12.00
23.10
23.10
37.05
37.05

...
...
...
23.10
33.00
46.80
46.80

216.00
225.60
259.20
405.90
422.40
499.20
538.20

216.00
225.60
259.20
382.80
389.40
452.40
491.40

198.00
207.60
241.20
348.15
354.75
396.825
435.825

18.00
18.00
18.00
34.65
34.65
55.575
55.575

...
...
...
23.10
33.00
46.80
46.80

1970
1971
1972
1973
1974

374.40
405.60
468.00
631.80
772.20

327.60
358.80
414.00
523.80
653.40

284.70
315.90
364.50
464.40
577.50

42.90
42.90
49.50
59.40
75.90

46.80
46.80
54.00
108.00
118.80

538.20
585.00
675.00
864.00
1,042.80

491.40
538.20
621.00
756.00
924.00

427.05
473.85
546.75
670.14
816.42

64.35
64.35
74.25
85.86
107.58

46.80
46.80
54.00
108.00
118.80

1975
1976
1977
1978
1979

824.85
895.05
965.25
1,070.85
1,403.77

697.95
757.35
816.75
893.85
1,163.32

616.875
669.375
721.875
756.675
991.59

81.075
87.975
94.875
137.175
171.75

126.90
137.70
148.50
177.00
240.45

1,113.90
1,208.70
1,303.50
1,433.70
1,854.90

987.00
1,071.00
1,155.00
1,256.70
1,614.45

872.085
946.305
1,020.525
1,063.77
1,376.29

114.915
124.695
134.475
192.93
238.16

126.90
137.70
148.50
177.00
240.45

1980
1981
1982
1983
1984 a

1,587.67
1,975.05
2,170.80
2,391.90
2,646.00

1,315.72
1,588.95
1,749.60
1,927.80
2,154.60

1,170.68
1,395.90
1,482.30
1,704.675
1,965.60

145.04
193.05
267.30
223.125
189.00

271.95
386.10
421.20
464.10
491.40

2,097.90
2,762.10
3,029.40
3,337.95
5,292.00

1,825.95
2,376.00
2,608.20
2,873.85
4,309.20

1,624.58
2,086.43
2,207.25
2,539.1625
3,931.20

201.37
289.57
400.95
334.6875
378.00

271.95
386.10
421.20
464.10
982.80

1985 a
1986 a
1987 a
1988 a
1989 a

2,791.80
3,003.00
3,131.70
3,379.50
3,604.80

2,257.20
2,394.00
2,496.60
2,727.00
2,908.80

2,059.20
2,184.00
2,277.60
2,488.50
2,654.40

198.00
210.00
219.00
238.50
254.40

534.60
609.00
635.10
652.50
696.00

5,583.60
6,006.00
6,263.40
6,759.00
7,209.60

4,514.40
4,788.00
4,993.20
5,454.00
5,817.60

4,118.40
4,368.00
4,555.20
4,977.00
5,308.80

396.00
420.00
438.00
477.00
508.80

1,069.20
1,218.00
1,270.20
1,305.00
1,392.00

1990
1991
1992
1993
1994

3,924.45
5,123.30
5,328.90
5,528.70

3,180.60
3,310.80
3,441.00
3,571.20
3,757.20

2,872.80
2,990.40
3,108.00
3,225.60
3,187.56

307.80
320.40
333.00
345.60
569.64

743.85
1,812.50
1,887.90
1,957.50

7,848.90
10,246.60
10,657.80
11,057.40

6,361.20
6,621.60
6,882.00
7,142.40
7,514.40

5,745.60
5,980.80
6,216.00
6,451.20
6,375.12

615.60
640.80
666.00
691.20
1,139.28

1,487.70
3,625.00
3,775.80
3,915.00

1995
1996
1997
1998
1999

b
b
b
b
b

3,794.40
3,887.40
4,054.80
4,240.80
4,501.20

3,219.12
3,298.02
3,498.90
3,659.40
3,884.10

575.28
589.38
555.90
581.40
617.10

b
b
b
b
b

b
b
b
b
b

7,588.80
7,774.80
8,109.60
8,481.60
9,002.40

6,438.24
6,596.04
6,997.80
7,318.80
7,768.20

1,150.56
1,178.76
1,111.80
1,162.80
1,234.20

b
b
b
b
b

2000
2001
2002
2003

b
b
b
b

4,724.40
4,984.80
5,236.80
5,394.00

4,038.60
4,261.20
4,499.70
4,611.00

685.80
723.60
764.10
783.00

b
b
b
b

b
b
b
b

9,448.80
9,969.60
10,527.60
10,788.00

8,077.20
8,522.40
8,999.40
9,222.00

1,371.60
1,447.20
1,528.20
1,566.00

b
b
b
b

bb

b

b

b

a. Includes tax credit, see Table 2.A5.
b. Upper limit on earnings subject to HI taxes was repealed by the Omnibus Budget Reconciliation Act (OBRA) of 1993.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.5

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A5—Tax credits enacted in 1983
Group

Tax payable under—

Percentage
of earnings

Tax credit, effective with respect to—

Employee

Federal Insurance Contributions Act (FICA)

0.3

Remuneration paid in calendar year 1984

Self-employed

Self-Employment Contributions Act (SECA)

2.7

Self-employment income for taxable years beginning in 1984

2.3

Self-employment income for taxable years beginning in 1985

2.0

Self-employment income for taxable years beginning in 1986, 1987, 1988, and 1989

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
NOTE: During this period, scheduled taxes were credited to the Social Security trust funds, monies for tax credits were paid from the Treasury, and the reduced tax rates were
paid by employees and the self-employed.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

Table 2.A6—Appropriations from general revenues and interfund borrowing provisions, by type of transaction
and year enacted
Year enacted

Provision
Appropriations from general revenues

1935

Annual appropriations to the old-age reserve account to provide payments; direct appropriation to pay for administrative expenses.

1939

Trust fund created from which benefits and administrative expenses were to be paid.

1944

General authorization to finance benefits and payments.

1947

For cost of gratuitous military service wage credits.

1950

General authorization repealed.

1951

Railroad interchange provisions enacted.

1956

For cost of gratuitous military service wage credits.

1966

For cost of transitional uninsured monthly benefits for those aged 72 and older with fewer than 3 quarters of coverage.

1972

For cost of gratuitous wage credits for Japanese-American internees.

1983

A lump-sum payment to the OASDI trust funds equal to (1) the present value of the estimated additional benefits arising from the gratuitous military
service wage credits for service before 1957 and (2) the amount of the combined employer-employee OASDI taxes on the gratuitous wage credits for
service after 1956 and before 1984 but less any amounts previously transferred. After 1983, the trust funds will be reimbursed on a current basis for
employer-employee taxes on such wage credits for service after 1983.
A lump-sum payment to the OASDI trust funds representing the amount of uncashed benefit checks (including interest) issued in the past. In the future,
the trust funds will be credited on a regular basis. All transfers made for uncashed benefit checks will be subject to the annual appropriation process.
Transfers in each year from the Treasury Department to the OASDI trust funds of amounts equal to income tax receipts attributable to inclusion of
Social Security benefits in taxable income.
For tax credits for part of the 1984 employment FICA tax and part of the tax on self-employment income under SECA for 1984–1989, see Table 2.A5.

1993

Transfers in each year from the Treasury Department to the HI trust fund of amounts equal to income tax receipts attributable to the increased portions
of Social Security benefits included in taxable income under the 1993 Act.

1981

Interfund borrowing permitted among OASI, DI, and HI trust funds as needed until December 31, 1982. For all or part of any loan to be repaid, the
managing trustee determines if assets of borrowing trust fund(s) are sufficient for that purpose. Interest with respect to any outstanding loan balance at
a rate equal to the rate earned by lending trust fund is transferred from time to time.

1983

Interfund borrowing reauthorized among OASI, DI, and HI trust funds for calendar years 1983–1987, with provisions for scheduled repayment, no later
than December 31, 1989, of principal and interest (including amounts borrowed in 1982). No borrowing permitted from any fund that has been reduced
to specified levels.

Interfund borrowing

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.

2.6 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A7—Insured status (benefit eligibility) provisions, by eligibility concept and year enacted
Year enacted

Provision
Quarter of coverage (QC)

1939

Calendar quarter in which $50 of wages is earned. Four QC are credited for covered earnings equal to maximum limitation for the year.

1946

Calendar quarter in which $50 of wages is paid.

1950

Calendar quarter credited with $100 of self-employment income (reported annually).

1954

Calendar quarter credited with $100 of agricultural wages (reported annually).

1977

Calendar quarters of coverage (up to 4) for each $250 of annual earnings, effective January 1, 1978 (effective on January 1 of each year, dollar amount
subject to automatic increase):
Year

Amount (dollars)

1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

260
290
310
340
370
390
410
440
460
470
500
520
540
570
590
620
630
640
670
700
740
780
830
870
890
Disability definition

1954

Inability to engage in substantial gainful activity because of any medically determinable permanent physical or mental impairment.

1965

Disability lasting at least 12 months. For blind persons aged 55–64, inability to engage in usual occupation.

1967

Disability that precludes engagement in any substantial gainful work existing in the national economy. For surviving spouse, disability precludes any
gainful activity.

1990

More restrictive definition for surviving spouse eliminated.
Period of disability

1954

Continuous period of at least 6 months as defined above or of blindness.

1972

At least 5 months of disability.

1935

Cumulative wages of $2,000 and employment in each of 5 years after 1936 and before attainment of age 65.

1939

QC equal to one-half the quarters elapsed after 1936 (or quarter in which age 21 attained) and before quarter of death or attainment of age 65.
Minimum 6 QC, maximum 40 QC.

1950

Elapsed period measured after 1950 (QC earned at any time are used).

1954

Period of disability excluded from elapsed period. Alternatively, QC earned in all quarters after 1954 and before quarter in which age 65 attained
(minimum 6 QC).

1956

Elapsed period measured to age 62 for women. Alternatively, QC earned in all except 4 quarters after 1954 and before quarter in which age 65 attained
(62 for women).

1960

QC reduced to one-third the elapsed quarters.

1961

QC equal to years elapsed after 1950 (or year age 21 attained) and before year of death or age 65 (62 for women).

1972

Elapsed period for men reaching age 62 after 1972, measured to age 62 or to 1975, if later.

1983

Any person aged 55 or older on January 1, 1984, and employed by a nonprofit organization to whose employees coverage is extended solely by
reason of the new compulsory coverage provision will be deemed fully insured upon subsequently acquiring 6 QC if aged 60 or older on
January 1, 1984; 8 QC if aged 59; 12 QC if aged 58; 16 QC if aged 57; and 20 QC if aged 55 or 56.

1939

6 QC earned in 12 quarters before quarter of death.

Fully insured

Currently insured

1946

6 QC earned in preceding 13 quarters, including quarter of death.

1950

Including quarter of retirement added.

1954

Including quarter of disablement added.
(Continued)

Annual Statistical Supplement, 2003 ♦ 2.7

2.A OASDI: Coverage, Financing, and Insured Status
Table 2.A7—Insured status (benefit eligibility) provisions, by eligibility concept and year enacted—Continued
Year enacted

Provision
Disability insured

1954

20 QC earned in last 40 quarters, including quarter of disablement, and currently insured.

1956

Fully insured requirement added.

1958

Currently insured requirement eliminated.

1960

Alternatively, 20 QC earned before quarter of disablement (not necessarily in last 40 quarters) but QC earned in all quarters after 1950, with minimum
of 6 QC.

1965

Alternatively, for blind under age 31, QC earned in one-half the quarters elapsed after age 21, with minimum of 6 QC. For blind under age 24, 6 QC
earned in preceding 12 quarters.

1967

For all disabled under age 31, same alternative.

1972

For blind, requirement for recent QC eliminated.

1983

For those who become disabled again at age 31 or older and who were previously disabled before age 31, same alternative as that for those under
age 31.

1965

Same as fully insured, but minimum reduced to 3 QC.

1966

3 QC for each year elapsed after 1966 and before attainment of age 72. (No QC if aged 72 before 1968.)

Transitionally insured

Requirement for special age–72 monthly benefit

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.8 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A8—Factors for indexing earnings, 1951–2003
Factors for workers who were first eligible (attained age 62, became disabled, or died) in b —

Year

Annual
maximum
taxable
earnings
(dollars)

Average
annual
wage a
(dollars)

1990

1991

1992

1993

1994

1995

1996

1951
1952
1953
1954

3,600
3,600
3,600
3,600

2,799.16
2,973.32
3,139.44
3,155.64

6.9070864
6.5025090
6.1584359
6.1268205

7.1805649
6.7599687
6.4022724
6.3694053

7.5122465
7.0722223
6.6980035
6.6636182

7.7921948
7.3357728
6.9476085
6.9119418

8.1936795
7.7137409
7.3055768
7.2680724

8.2641471
7.7800809
7.3684065
7.3305795

8.4859494
7.9888912
7.5661679
7.5273257

1955
1956
1957
1958
1959

4,200
4,200
4,200
4,200
4,800

3,301.44
3,532.36
3,641.72
3,673.80
3,855.80

5.8562445
5.4734059
5.3090408
5.2626817
5.0142746

6.0881161
5.6901194
5.5192464
5.4710518
5.2128093

6.3693358
5.9529550
5.7741891
5.7237683
5.4535972

6.6066928
6.1747953
5.9893677
5.9370679
5.6568287

6.9470958
6.4929452
6.2979636
6.2429691
5.9482909

7.0068425
6.5487861
6.3521276
6.2966601
5.9994476

7.1948998
6.7245496
6.5226129
6.4656568
6.1604673

1960
1961
1962
1963
1964

4,800
4,800
4,800
4,800
4,800

4,007.12
4,086.76
4,291.40
4,396.64
4,576.32

4.8249216
4.7308968
4.5052990
4.3974581
4.2248007

5.0159591
4.9182115
4.6836813
4.5715706
4.3920770

5.2476542
5.1453915
4.9000280
4.7827386
4.5949540

5.4432111
5.3371375
5.0826304
4.9609702
4.7661877

5.7236669
5.6121279
5.3445076
5.2165790
5.0117605

5.7728918
5.6603936
5.3904716
5.2614428
5.0548629

5.9278310
5.8123134
5.5351470
5.4026552
5.1905308

1965
1966
1967
1968
1969

4,800
6,600
6,600
7,800
7,800

4,658.72
4,938.36
5,213.44
5,571.76
5,893.76

4.1500756
3.9150730
3.7084996
3.4700059
3.2804254

4.3143932
4.0700860
3.8553335
3.6073969
3.4103102

4.5136819
4.2580897
4.0334175
3.7740283
3.5678378

4.6818869
4.4167699
4.1837251
3.9146697
3.7007954

4.9231162
4.6443394
4.3992872
4.1163690
3.8914751

4.9654562
4.6842818
4.4371221
4.1517707
3.9249427

5.0987245
4.8100037
4.5562105
4.2632005
4.0302846

1970
1971
1972
1973
1974

7,800
7,800
9,000
10,800
13,200

6,186.24
6,497.08
7,133.80
7,580.16
8,030.76

3.1253298
2.9758045
2.7102021
2.5506111
2.4074982

3.2490738
3.0936282
2.8175096
2.6515997
2.5028204

3.3991536
3.2365278
2.9476548
2.7740813
2.6184296

3.5258251
3.3571389
3.0575009
2.8774591
2.7160070

3.7074895
3.5301120
3.2150355
3.0257171
2.8559464

3.7393748
3.5604718
3.2426855
3.0517390
2.8805082

3.8397363
3.6560316
3.3297163
3.1336449
2.9578184

1975
1976
1977
1978
1979

14,100
15,300
16,500
17,700
22,900

8,630.92
9,226.48
9,779.44
10,556.03
11,479.46

2.2400903
2.0954947
1.9770089
1.8315636
1.6842290

2.3287842
2.1784635
2.0552864
1.9040823
1.7509142

2.4363544
2.2790902
2.1502233
1.9920349
1.8317917

2.5271466
2.3640218
2.2303527
2.0662692
1.9000545

2.6573552
2.4858256
2.3452693
2.1727316
1.9979529

2.6802091
2.5072043
2.3654391
2.1914176
2.0151357

2.7521435
2.5744954
2.4289254
2.2502333
2.0692202

1980
1981
1982
1983
1984

25,900
29,700
32,400
35,700
37,800

12,513.46
13,773.10
14,531.34
15,239.24
16,135.07

1.5450595
1.4037537
1.3305063
1.2687011
1.1982619

1.6062344
1.4593338
1.3831863
1.3189339
1.2457058

1.6804289
1.5267427
1.4470778
1.3798575
1.3032469

1.7430511
1.5836377
1.5010040
1.4312787
1.3518132

1.8328600
1.6652330
1.5783417
1.5050239
1.4214639

1.8486230
1.6795543
1.5919158
1.5179674
1.4336889

1.8982384
1.7246321
1.6346414
1.5587083
1.4721678

1985
1986
1987
1988
1989

39,600
42,000
43,800
45,000
48,000

16,822.51
17,321.82
18,426.51
19,334.04
20,099.55

1.1492958
1.1161668
1.0492513
1.0000000
1.0000000

1.1948009
1.1603602
1.0907953
1.0395939
1.0000000

1.2499906
1.2139590
1.1411808
1.0876144
1.0461916

1.2965723
1.2591979
1.1837076
1.1281450
1.0851785

1.3633768
1.3240768
1.2446969
1.1862715
1.1410912

1.3751022
1.3354642
1.2554016
1.1964737
1.1509049

1.4120087
1.3713068
1.2890954
1.2285860
1.1817941

1990
1991
1992
1993
1994

51,300
53,400
55,500
57,600
60,600

21,027.98
21,811.60
22,935.42
23,132.67
23,753.53

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0372656
1.0000000
1.0000000
1.0000000
1.0000000

1.0907096
1.0515240
1.0000000
1.0000000
1.0000000

1.1000900
1.0605673
1.0086002
1.0000000
1.0000000

1.1296154
1.0890320
1.0356702
1.0268391
1.0000000

1995
1996
1997
1998
1999

61,200
62,700
65,400
68,400
72,600

24,705.66
25,913.90
27,426.00
28,861.44
30,469.84

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

2000
2001
2002
2003

76,200
80,400
84,900
87,000

32,154.82
32,921.92
...
...

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000
(Continued)

Annual Statistical Supplement, 2003 ♦ 2.9

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A8—Factors for indexing earnings, 1951–2003—Continued
Factors for workers who were first eligible (attained age 62, became disabled, or died) in b—

Year

Annual
maximum
taxable
earnings
(dollars)

Average
annual
wage a
(dollars)

1997

1998

1999

2000

2001

2002

2003

1951
1952
1953
1954

3,600
3,600
3,600
3,600

2,799.16
2,973.32
3,139.44
3,155.64

8.8260978
8.3091157
7.8694481
7.8290489

9.2577416
8.7154763
8.2543065
8.2119317

9.7979394
9.2240324
8.7359529
8.6911054

10.3107504
9.7068059
9.1931809
9.1459862

10.8853513
10.2477500
9.7055016
9.6556768

11.4873105
10.8144498
10.2422152
10.1896351

11.7613570
11.0724443
10.4865581
10.4327236

1955
1956
1957
1958
1959

4,200
4,200
4,200
4,200
4,800

3,301.44
3,532.36
3,641.72
3,673.80
3,855.80

7.4832982
6.9940946
6.7840636
6.7248244
6.4074018

7.8492718
7.3361435
7.1158409
7.0537046
6.7207583

8.3072841
7.7642143
7.5310568
7.4652948
7.1129208

8.7420762
8.1705828
7.9252221
7.8560183
7.4852015

9.2292575
8.6259158
8.3668816
8.2938211
7.9023393

9.7396348
9.1029284
8.8295695
8.7524688
8.3393381

9.9719880
9.3200919
9.0402118
8.9612717
8.5382852

1960
1961
1962
1963
1964

4,800
4,800
4,800
4,800
4,800

4,007.12
4,086.76
4,291.40
4,396.64
4,576.32

6.1654405
6.0452926
5.7570164
5.6192138
5.3985866

6.4669638
6.3409400
6.0385655
5.8940236
5.6626066

6.8443171
6.7109397
6.3909214
6.2379453
5.9930250

7.2025395
7.0621813
6.7254136
6.5644310
6.3066918

7.6039250
7.4557449
7.1002097
6.9302558
6.6581533

8.0244215
7.8680471
7.4928508
7.3134985
7.0263487

8.2158558
8.0557508
7.6716037
7.4879726
7.1939724

1965
1966
1967
1968
1969

4,800
6,600
6,600
7,800
7,800

4,658.72
4,938.36
5,213.44
5,571.76
5,893.76

5.3031004
5.0028066
4.7388404
4.4340855
4.1918334

5.5624506
5.2474708
4.9705952
4.6509361
4.3968367

5.8870248
5.5536656
5.2606341
4.9223226
4.6533961

6.1951437
5.8443370
5.5359686
5.1799503
4.8969486

6.5403888
6.1700322
5.8444789
5.4686203
5.1698474

6.9020718
6.5112345
6.1676782
5.7710346
5.4557396

7.0667308
6.6665695
6.3148171
5.9087111
5.5858942

1970
1971
1972
1973
1974

7,800
7,800
9,000
10,800
13,200

6,186.24
6,497.08
7,133.80
7,580.16
8,030.76

3.9936472
3.8025790
3.4631837
3.2592531
3.0763788

4.1889581
3.9885456
3.6325521
3.4186482
3.2268303

4.4333876
4.2212809
3.8445148
3.6181294
3.4151189

4.6654252
4.4422171
4.0457316
3.8074975
3.5938616

4.9254216
4.6897745
4.2711935
4.0196830
3.7941415

5.1977970
4.9491187
4.5073902
4.2419711
4.0039573

5.3217981
5.0671871
4.6149205
4.3431695
4.0994775

1975
1976
1977
1978
1979

14,100
15,300
16,500
17,700
22,900

8,630.92
9,226.48
9,779.44
10,556.03
11,479.46

2.8624596
2.6776907
2.5262858
2.3404310
2.1521622

3.0024493
2.8086443
2.6498348
2.4548907
2.2574145

3.1776450
2.9725312
2.8044551
2.5981359
2.3891368

3.3439587
3.1281095
2.9512365
2.7341188
2.5141810

3.5303119
3.3024339
3.1157040
2.8864867
2.6542921

3.7255379
3.4850582
3.2880022
3.0461092
2.8010743

3.8144161
3.5681994
3.3664423
3.1187786
2.8678980

1980
1981
1982
1983
1984

25,900
29,700
32,400
35,700
37,800

12,513.46
13,773.10
14,531.34
15,239.24
16,135.07

1.9743268
1.7937618
1.7001639
1.6211871
1.5311777

2.0708821
1.8814864
1.7833111
1.7004719
1.6060606

2.1917200
1.9912728
1.8873690
1.7996960
1.6997757

2.3064316
2.0954934
1.9861513
1.8938897
1.7887397

2.4349652
2.2122717
2.0968362
1.9994330
1.8884232

2.5696186
2.3346102
2.2127911
2.1100015
1.9928528

2.6309206
2.3903057
2.2655805
2.1603387
2.0403952

1985
1986
1987
1988
1989

39,600
42,000
43,800
45,000
48,000

16,822.51
17,321.82
18,426.51
19,334.04
20,099.55

1.4686072
1.4262739
1.3407672
1.2778323
1.2291648

1.5404301
1.4960264
1.4063379
1.3403251
1.2892776

1.6303156
1.5833209
1.4883991
1.4185344
1.3645082

1.7156441
1.6661898
1.5662999
1.4927785
1.4359247

1.8112541
1.7590438
1.6535871
1.5759686
1.5159464

1.9114163
1.8563188
1.7450304
1.6631196
1.5997781

1.9570159
1.9006040
1.7866606
1.7027957
1.6379431

1990
1991
1992
1993
1994

51,300
53,400
55,500
57,600
60,600

21,027.98
21,811.60
22,935.42
23,132.67
23,753.53

1.1748946
1.1326844
1.0771837
1.0679986
1.0400837

1.2323533
1.1880788
1.1298638
1.1202295
1.0909494

1.3042622
1.2574043
1.1957924
1.1855960
1.1546073

1.3725256
1.3232152
1.2583785
1.2476485
1.2150379

1.4490141
1.3969557
1.3285059
1.3171778
1.2827500

1.5291445
1.4742073
1.4019721
1.3900177
1.3536860

1.5656245
1.5093767
1.4354182
1.4231786
1.3859801

1995
1996
1997
1998
1999

61,200
62,700
65,400
68,400
72,600

24,705.66
25,913.90
27,426.00
28,861.44
30,469.84

1.0000000
1.0000000
1.0000000
1.0000000
1.0000000

1.0489054
1.0000000
1.0000000
1.0000000
1.0000000

1.1101100
1.0583509
1.0000000
1.0000000
1.0000000

1.1682117
1.1137436
1.0523387
1.0000000
1.0000000

1.2333141
1.1758107
1.1109837
1.0557283
1.0000000

1.3015163
1.2408329
1.1724211
1.1141100
1.0552999

1.3325659
1.2704348
1.2003909
1.1406888
1.0804756

2000
2001
2002
2003

76,200
80,400
84,900
87,000

32,154.82
32,921.92
...
...

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0000000
1.0000000
1.0000000
1.0000000

1.0238565
1.0000000
1.0000000
1.0000000

a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social
Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data
collected on all taxable wages reported to SSA; for 1957–1972, based on 1 percent statistical sample; for 1951–1956, based on 1/10 of 1 percent statistical sample. For
1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA.
For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. The indexing factor for a given year represents the ratio of the average annual wage for the second year before the year of first eligibility to the average annual wage for the
year to be indexed. Multiplying a worker’s covered earnings, up to the maximum taxable amounts for various years after 1951, by the indicated factors gives the indexed
earnings. Earnings in the year before the year of first eligibility, and any earnings thereafter, are not indexed. The actual taxable earnings for those years are considered in
calculating the average indexed monthly earnings (AIME).
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.10 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A9—Indexed earnings for workers with maximum earnings, 1951–2003 (in dollars)
Annual maximum indexed earnings for workers who were first eligible
(attained age 62, became disabled, or died) in b—
1997
1998
1999
2000
2001
2002

Year

Annual maximum
taxable earnings

Average
annual wage a

1996

1951
1952
1953
1954

3,600
3,600
3,600
3,600

2,799.16
2,973.32
3,139.44
3,155.64

30,549.42
28,760.01
27,238.20
27,098.37

31,773.95
29,912.82
28,330.01
28,184.58

33,327.87
31,375.71
29,715.50
29,562.95

35,272.58
33,206.52
31,449.43
31,287.98

37,118.70
34,944.50
33,095.45
32,925.55

39,187.26
36,891.90
34,939.81
34,760.44

41,354.32
38,932.02
36,871.97
36,682.69

42,340.89
39,860.80
37,751.61
37,557.81

1955
1956
1957
1958
1959

4,200
4,200
4,200
4,200
4,800

3,301.44
3,532.36
3,641.72
3,673.80
3,855.80

30,218.58
28,243.11
27,394.97
27,155.76
29,570.24

31,429.85
29,375.20
28,493.07
28,244.26
30,755.53

32,966.94
30,811.80
29,886.53
29,625.56
32,259.64

34,890.59
32,609.70
31,630.44
31,354.24
34,142.02

36,716.72
34,316.45
33,285.93
32,995.28
35,928.97

38,762.88
36,228.85
35,140.90
34,834.05
37,931.23

40,906.47
38,232.30
37,084.19
36,760.37
40,028.82

41,882.35
39,144.39
37,968.89
37,637.34
40,983.77

1960
1961
1962
1963
1964

4,800
4,800
4,800
4,800
4,800

4,007.12
4,086.76
4,291.40
4,396.64
4,576.32

28,453.59
27,899.10
26,568.71
25,932.75
24,914.55

29,594.11
29,017.40
27,633.68
26,972.23
25,913.22

31,041.43
30,436.51
28,985.11
28,291.31
27,180.51

32,852.72
32,212.51
30,676.42
29,942.14
28,766.52

34,572.19
33,898.47
32,281.99
31,509.27
30,272.12

36,498.84
35,787.58
34,081.01
33,265.23
31,959.14

38,517.22
37,766.63
35,965.68
35,104.79
33,726.47

39,436.11
38,667.60
36,823.70
35,942.27
34,531.07

1965
1966
1967
1968
1969

4,800
6,600
6,600
7,800
7,800

4,658.72
4,938.36
5,213.44
5,571.76
5,893.76

24,473.88
31,746.02
30,070.99
33,252.96
31,436.22

25,454.88
33,018.52
31,276.35
34,585.87
32,696.30

26,699.76
34,633.31
32,805.93
36,277.30
34,295.33

28,257.72
36,654.19
34,720.18
38,394.12
36,296.49

29,736.69
38,572.62
36,537.39
40,403.61
38,196.20

31,393.87
40,722.21
38,573.56
42,655.24
40,324.81

33,129.94
42,974.15
40,706.68
45,014.07
42,554.77

33,920.31
43,999.36
41,677.79
46,087.95
43,569.98

1970
1971
1972
1973
1974

7,800
7,800
9,000
10,800
13,200

6,186.24
6,497.08
7,133.80
7,580.16
8,030.76

29,949.94
28,517.05
29,967.45
33,843.37
39,043.20

31,150.45
29,660.12
31,168.65
35,199.93
40,608.20

32,673.87
31,110.66
32,692.97
36,921.40
42,594.16

34,580.42
32,925.99
34,600.63
39,075.80
45,079.57

36,390.32
34,649.29
36,411.58
41,120.97
47,438.97

38,418.29
36,580.24
38,440.74
43,412.58
50,082.67

40,542.82
38,603.13
40,566.51
45,813.29
52,852.24

41,510.02
39,524.06
41,534.28
46,906.23
54,113.10

1975
1976
1977
1978
1979

14,100
15,300
16,500
17,700
22,900

8,630.92
9,226.48
9,779.44
10,556.03
11,479.46

38,805.22
39,389.78
40,077.27
39,829.13
47,385.14

40,360.68
40,968.67
41,683.72
41,425.63
49,284.51

42,334.54
42,972.26
43,722.27
43,451.57
51,694.79

44,804.79
45,479.73
46,273.51
45,987.00
54,711.23

47,149.82
47,860.08
48,695.40
48,393.90
57,574.74

49,777.40
50,527.24
51,409.12
51,090.81
60,783.29

52,530.09
53,321.39
54,252.04
53,916.13
64,144.60

53,783.27
54,593.45
55,546.30
55,202.38
65,674.86

1980
1981
1982
1983
1984

25,900
29,700
32,400
35,700
37,800

12,513.46
13,773.10
14,531.34
15,239.24
16,135.07

49,164.37
51,221.57
52,962.38
55,645.89
55,647.94

51,135.07
53,274.72
55,085.31
57,876.38
57,878.52

53,635.85
55,880.15
57,779.28
60,706.85
60,709.09

56,765.55
59,140.80
61,150.75
64,249.15
64,251.52

59,736.58
62,236.15
64,351.30
67,611.86
67,614.36

63,065.60
65,704.47
67,937.49
71,379.76
71,382.40

66.553.12
69,337.92
71,694.43
75,327.06
75,329.84

68,140.84
70,992.08
73,404.81
77,124.09
77,126.94

1985
1986
1987
1988
1989

39,600
42,000
43,800
45,000
48,000

16,822.51
17,321.82
18,426.51
19,334.04
20,099.55

55,915.54
57,594.89
56,462.38
55,286.37
56,726.12

58,156.85
59,903.50
58,725.60
57,502.45
58,999.91

61,001.03
62,833.11
61,597.60
60,314.63
61,885.33

64,560.50
66,499.48
65,191.88
63,834.05
65,496.39

67,939.51
69,979.97
68,603.93
67,175.03
68,924.38

71,725.66
73,879.84
72,427.12
70,918.59
72,765.43

75,692.09
77,965.39
76,432.33
74,840.38
76,789.35

77,497.83
79,825.37
78,255.74
76,625.81
78,621.27

1990
1991
1992
1993
1994

51,300
53,400
55,500
57,600
60,600

21,027.98
21,811.60
22,935.42
23,132.67
23,753.53

57,949.27
58,154.31
57,479.69
59,145.93
60,600.00

60,272.09
60,485.35
59,783.69
61,516.72
63,029.07

63,219.72
63,443.41
62,707.44
64,525.22
66,111.54

66,908.65
67,145.39
66,366.48
68,290.33
69,969.20

70,410.56
70,659.69
69,840.01
71,864.55
73,631.30

74,334.42
74,597.44
73,732.08
75,869.44
77,734.65

78,445.11
78,722.67
77,809.45
80,065.02
82,033.37

80,316.54
80,600.71
79,665.71
81,975.09
83,990.39

1995
1996
1997
1998
1999

61,200
62,700
65,400
68,400
72,600

24,705.66
25,913.90
27,426.00
28,861.44
30,469.84

61,200.00
62,700.00
65,400.00
68,400.00
72,600.00

61,200.00
62,700.00
65,400.00
68,400.00
72,600.00

64,193.01
62,700.00
65,400.00
68,400.00
72,600.00

67,938.73
66,358.60
65,400.00
68,400.00
72,600.00

71,494.55
69,831.72
68,822.95
68,400.00
72,600.00

75,478.83
73,723.33
72,658.34
72,211.82
72,600.00

79,652.80
77,800.22
76,676.34
76,205.13
76,614.77

81,553.03
79,656.26
78,505.56
78,023.11
78,442.53

2000
2001
2002
2003

76,200
80,400
84,900
87,000

32,154.82
32,921.92
...
...

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

76,200.00
80,400.00
84,900.00
87,000.00

78,017.86
80,400.00
84,900.00
87,000.00

2003

a. National average wage levels. For years before 1978, average wages were determined from wages earned during the first quarter of the year and reported to the Social
Security Administration (SSA) for Social Security tax purposes. These wages were then multiplied by 4 to obtain the average wage for the year. For 1973–1977, from data
collected on all taxable wages reported to SSA; for 1957–1972, based on 1 percent statistical sample; for 1951–1956, based on 1/10 of 1 percent statistical sample. For
1978–1984, from wage data collected by the Internal Revenue Service during processing of annual tax returns. For years after 1984, from W-2 data processed by SSA.
For years after 1977, the average wage amounts have been adjusted to be consistent with the pre-1978 series.
b. A worker’s earnings for each year after 1950 and through the second year before the year of first eligibility are indexed by multiplying covered earnings, up to the maximum
taxable amounts, by specified indexing factors (see Table 2.A8). The indexing factor for a given year represents the ratio of the average annual wage for the second year
before the year of first eligibility to the average annual wage for the year to be indexed. For example, if the year of first eligibility is 1999, the indexing factor for 1982 is
$27,426.00/14,531.34, or 1.8873690. Multiplication of maximum taxable earnings of $32,400 for 1982 by this factor gives maximum indexed earnings of $61,150.75 for
1982.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.11

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A10—Average monthly wage and average indexed monthly earnings provisions, by year enacted
Year enacted

Provision
Average monthly wage (AMW)

1939

Computed using creditable earnings after 1936 and before year of death or retirement, divided by months after 1936 and before quarter of death or
retirement, excluding months before age 22 in quarters not covered.

1950

Alternatively, computed using creditable earnings after 1950 (or year aged 21, if later) and before year of death, year of retirement, or subsequent year
(or year age 65 attained if then insured), divided by number of months in those years.

1954

Earnings and months in 4 years may be excluded in all cases; 5 years if worker has 20 quarters of coverage. Period of disability may be excluded.

1956

Earnings and months in 5 years may be excluded in all cases. Computation period may end at age 62 for women then insured.

1960

Earnings may be used for any year after 1950 and before year of retirement but including year of death, with the number of years equal to the years
elapsed after 1955 (or year age 26 attained) and before year of death or age 65 attained (62 for women).
Same method may be used for earnings after 1936 and years elapsed after 1941.

1972

Number of years for men reaching age 62 after 1972, measured to age 62 or to 1975, if later.

1977

For workers who attain age 62, become disabled, or die after 1978, excludes earnings in year of attainment of age 62 and later, computed using
creditable earnings after 1936.
For workers who attain age 62 after 1978 and before 1984, excludes earnings in year of attainment of age 62 and later, computed using creditable
earnings after 1950.
Average indexed monthly earnings (AIME)

1977

For workers who attain age 62, become disabled, or die after 1978, AIME is computed by using indexed earnings after 1950 for the same computation
period applicable in calculating the AMW. Indexed earnings for a given year equal actual creditable earnings multiplied by the national average wage
for the second year before worker attains age 62, becomes disabled, or dies, divided by the national average wage for the given year, except that for
years after the second year before the worker attains age 62, becomes disabled, or dies, indexed earnings equal actual creditable earnings.

1980

For disabled workers, the number of years of earnings used equals the number of years elapsed after 1950 (or year age 21 attained, if later) and before
year of disability, minus dropout years equal to one-fifth of the number of elapsed years rounded to the next lower integer (to a maximum of 5 dropout
years). However, the number of years of earnings used is at least 2. Effective for initial entitlement after June 1980.
Disabled workers who receive less than 3 dropout years under the one-fifth rule may be credited with additional dropout years based on child care, up
to a total of 3 dropout years. (To receive this credit, a worker must have had no earnings in that year and have been living with a child under age 3.)
However, the number of years of earnings used is at least 2. Effective for July 1981.

1983

For workers who die after 1978 but before attaining age 62, indexed earnings for a given year equal actual creditable earnings, multiplied by the
national average wage for the earlier of (1) the year in which the worker reached or would have reached age 60 or (2) the second year before the
survivor becomes eligible for aged or disabled widow(er) benefits, and then divided by the national average wage for the given year. This computation
method applies only if it results in a higher benefit. Effective for surviving spouses newly eligible after 1984.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.12 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A11—Formulas for computing PIA from AIME, cost-of-living adjustments, and minimum PIA for workers
who were first eligible in 1979 or later, by year of first eligibility

Eligibility year

Calculation of PIA (based on percentage of AIME) a (dollars)
90 percent
Plus 32 percent
Plus 15 percent
of the first
of the next
of the amount above

First applicable cost-of-living adjustment
Effective
Percentage
date
increase

Minimum PIA
based on indexed
earnings (dollars)

Enacted in 1977 b
1979
1980

180
194

905
977

1981
1982

211
230

1,063
1,158

1,085
1,171

June 1979
June 1980

9.9
14.3

c
c

122
122

June 1981
June 1982

11.2
7.4

c

122

Enacted in 1981
1,274
1,388

d

Enacted in 1983
1983
1984

254
267

1,274
1,345

1,528
1,612

December 1983
December 1984

3.5
3.5

d
d

1985
1986
1987
1988
1989

280
297
310
319
339

1,411
1,493
1,556
1,603
1,705

1,691
1,790
1,866
1,922
2,044

December 1985
December 1986
December 1987
December 1988
December 1989

3.1
1.3
4.2
4.0
4.7

d
d
d
d
d

1990
1991
1992
1993
1994

356
370
387
401
422

1,789
1,860
1,946
2,019
2,123

2,145
2,230
2,333
2,420
2,545

December 1990
December 1991
December 1992
December 1993
December 1994

5.4
3.7
3.0
2.6
2.8

d
d
d
d
d

1995
1996
1997
1998
1999

426
437
455
477
505

2,141
2,198
2,286
2,398
2,538

2,567
2,635
2,741
2,875
3,043

December 1995
December 1996
December 1997
December 1998
December 1999

2.6
2.9
2.1
1.3
e
2.5

d
d
d
d
d

2000
2001
2002
2003

531
561
592
606

2,671
2,820
2,975
3,047

3,202
3,381
3,567
3,653

December 2000
December 2001
December 2002
December 2003

3.5
2.6
1.4
...

d
d
d
d

a. For workers who attained age 62 in the 1979–1983 period, the PIA cannot be less than that derived from the PIA table in effect in December 1978 (approximated by the PIA
formula in Table 2.A16) based on provisions in effect before 1979 but excluding earnings after year aged 61 in computations of AMW and including any general benefit
increase after year aged 61.
b. The 1977 amendments provided for annual automatic adjustments of bend points (AIME brackets) in benefit formula in proportion to increases in average wage level. As a
result, separate formulas are applicable to workers who were first eligible in successive calendar years. The legislation also froze the minimum PIA at $122.
c. Not subject to automatic adjustments until earlier of year of attainment of age 65 or year of first receipt of benefits.
d. The minimum PIA was eliminated by 1981 legislation for workers who attain age 62 or die after 1981 (after 1991 for members of certain religious orders). August 1981
legislation would have eliminated the minimum PIA effective March 1982 for workers who attained age 62 before November 1981 or who died (before attaining age 62)
before March 1982; for all others, the minimum would have been eliminated effective November 1981. This legislation was superseded by December 1981 legislation that
restored the minimum PIA for workers who attained age 62 or died (before attaining age 62) before 1982.
e. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Eligible workers are those who attained age 62, became disabled, or died in the given year.
. . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.13

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A11.1—Computation of PIA based on Windfall Elimination Provision (WEP), by year enacted
Year effective

Provision
Enacted in 1983

1986

Workers first eligible for pensions based on noncovered employment and disability or retired workers after December 31, 1985. a The benefit
computation formula uses a reduced factor of the usual first AIME bend point.
Year
eligible
1986
1987
1988
1989
1990 and later

Factor
(percent)
80
70
60
50
40

WEP is not applicable to persons who were federal employees or nonprofit employees on January 1, 1984, and who were covered by Social Security
on that date with no Civil Service Retirement System coverage; to persons with Railroad Retirement pensions; or to workers with 30 years of
substantial Social Security earnings. Workers with 26–29 years of coverage have less than full WEP applied. b For benefits payable before
January 1989:
Years of
coverage
26
27
28
29

Factor
(percent)
50
60
70
80
Enacted in 1988

1989

5 percent added to factor for each year of coverage over 20.
Years of
coverage
21
22
23
24
25
26
27
28
29

1991

Factor
(percent)
45
50
55
60
65
70
75
80
85

Earnings required for a year of substantial coverage (decoupled from the definition of a year of coverage for special minimum PIA). b
Year

Earnings
(dollars)

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

9,900
10,350
10,725
11,250
11,325
11,625
12,150
12,675
13,425
14,175
14,925
15,750
16,125

a. Reduction in PIA will not be greater than one-half of the periodic payment based on noncovered employment performed after 1956.
b. See Table 2.A12. Before 1991, a year of substantial coverage for WEP was the same amount as for the minimum PIA (25 percent of the “old law” contribution and benefit
base). For 1991 and following, a year of substantial coverage under WEP provisions remains 25 percent of the old law base, while the criterion for computing the special
minimum PIA was changed to 15 percent of the base.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.14 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A12—Special minimum PIA (formula applies to years of coverage), by year enacted
Year enacted
1972

Number of years of coverage

PIA computation

Effective date

Amount per year
of coverage over
10 years (dollars)

Maximum amount a
for workers with
30 or more years
of coverage
(dollars)

January 1973

8.50

170.00

Amount a per year
of coverage over
10 years (dollars)

Maximum amount a
for workers with
30 or more years
of coverage
(dollars)

9.00

180.00

Amount a per year
of coverage over
10 years (dollars)

Maximum amount a
for workers with 30
or more years of
coverage (dollars)

11.50
12.64
14.45
16.07
17.26
17.86
18.49
19.06
19.31
20.12
20.92
21.90
23.08
23.93
24.65
25.29
26.00
26.68
27.45
28.03
28.39
29.10
30.12
30.90
31.33

230.00
252.80
289.00
321.40
345.10
357.10
369.50
380.90
385.80
402.00
418.00
437.60
461.20
478.20
492.50
505.30
519.40
532.90
548.30
559.80
567.00
d
581.10
601.40
617.00
625.60

For 1937–1950, the number (disregarding any remainder and not exceeding 14)
obtained by dividing total creditable wages in 1937–1950 by $900
After 1950, the number of years with creditable earnings equal to at least
25 percent of the effective annual maximum taxable earnings, that is:
Year
1951–1954
1955–1958
1959–1965
1966–1967
1968–1971
1972
1973
1974
1975
1976
1977
1978

1973

Amount (dollars)

a

900
1,050
1,200
1,650
1,950
2,250
2,700
3,300
3,525
3,825
4,125
4,425

...

Effective date
March 1974
1977

b

After 1978, the number of years with creditable earnings equal to at least
25 percent of what the annual taxable maximum would have been if the statutory
increases in the maximum under the 1977 amendments had not been enacted
(the “old law” contribution and benefit base), that is:
Effective date
Year
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990

Amount (dollars)
4,725
5,100
5,500
6,075
6,675
7,050
7,425
7,875
8,175
8,400
8,925
9,525

January 1979
June 1979
June 1980
June 1981
June 1982
December 1983
December 1984
December 1985
December 1986
December 1987
December 1988
December 1989
December 1990
December 1991
December 1992
December 1993
December 1994
December 1995
December 1996
December 1997
December 1998
December 1999
December 2000
December 2001
December 2002

c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c
c,d
c
c
c

(Continued)

Annual Statistical Supplement, 2003 ♦ 2.15

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A12—Special minimum PIA (formula applies to years of coverage), by year enacted—Continued
Year enacted
1990

Number of years of coverage
After 1990, the number of years with creditable earnings equal to at least 15
percent of what the annual taxable maximum would have been if the statutory
increases in the maximum under the 1977 amendments had not been enacted
(the “old law” contribution and benefit base), that is: e
Year

Amount (dollars)

1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

5,940
6,210
6,435
6,750
6,795
6,975
7,290
7,605
8,055
8,505
8,955
9,450
9,675

PIA computation
...

a. The amount effective for a given month applies, as of that month, to all workers from the date of entitlement to benefits.
b. Provision for future automatic cost-of-living increases of amount per year of coverage (and maximum amount), beginning with the June 1979 increase.
c. Factors were obtained by applying cost-of-living increases to initial 1979 factor of $11.50 and rounding each one to nearest cent. An approximate PIA may be computed by
multiplying factor in year of entitlement by the number of years of coverage in excess of 10 with a maximum of 20. Actual PIAs are published yearly in the Federal Register.
d. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
e. For 1991 and following, a year of substantial coverage under the Windfall Elimination Provision remains 25 percent of the old law base, while the criterion for the special
minimum PIA was changed to 15 percent of the base.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Alternative PIA applicable when it exceeds the regularly computed PIA. The usual rates of actuarial reduction apply for retirement before the full retirement age. No
delayed retirement credits are applicable to the benefit derived from the special minimum PIA. However, the resulting retirement benefit will be raised if necessary to equal the
benefit derived from the regularly computed PIA plus any delayed retirement credits.
. . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.16 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A13—Formulas enacted in 1977 for computing maximum family benefit from PIA and cost-of-living
adjustments for workers who were first eligible in 1979 or later, by year of first eligibility

Eligibility year

Calculation of maximum family benefit (based on percentage of PIA) (dollars)
150 percent
Plus 272 percent
Plus 134 percent
Plus 175 percent
of the first
of the next
of the next
of the amount above

First applicable cost-of-living adjustment
Effective
Percentage
date
increase

1979
1980
1981
1982
1983
1984

230
248
270
294
324
342

102
110
120
131
144
151

101
109
118
129
142
150

433
467
508
554
610
643

June 1979
June 1980
June 1981
June 1982
December 1983
December 1984

9.9
14.3
11.2
7.4
3.5
3.5

1985
1986
1987
1988
1989

358
379
396
407
433

159
169
175
181
193

158
166
174
179
190

675
714
745
767
816

December 1985
December 1986
December 1987
December 1988
December 1989

3.1
1.3
4.2
4.0
4.7

1990
1991
1992
1993
1994

455
473
495
513
539

201
209
219
227
240

200
208
217
226
237

856
890
931
966
1,016

December 1990
December 1991
December 1992
December 1993
December 1994

5.4
3.7
3.0
2.6
2.8

1995
1996
1997
1998
1999

544
559
581
609
645

241
247
258
271
286

239
246
255
267
283

1,024
1,052
1,094
1,147
1,214

December 1995
December 1996
December 1997
December 1998
December 1999

2.6
2.9
2.1
1.3
a 2.5

2000
2001
2002
2003

679
717
756
774

301
317
336
344

298
315
332
340

1,278
1,349
1,424
1,458

December 2000
December 2001
December 2002
December 2003

3.5
2.6
1.4
...

a. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were
calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the
shortfall that occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in the maximum family benefit formula in proportion to increases in
the average wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
Eligible workers are those who attained age 62 or died in the given year.
. . . = not available.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Table 2.A14—Formulas for computing maximum family benefit and cost-of-living adjustments for workers first
eligible for disability benefits in 1979 or later, by year of enactment
Eligibility year

Formula
Enacted in 1977 a

1979

b

1980 b

150% of first $230 of PIA + 272% of next $102 of PIA + 134% of next $101 of PIA + 175% of PIA over $433 c
150% of first 248 of PIA + 272% of next $110 of PIA + 134% of next 109 of PIA + 175% of PIA over 467 c
Enacted in 1980 d

1979 or later

Smaller of (1) 85% of the AIME (or 100% of PIA, if larger) and (2) 150% of PIA e

a. The 1977 amendments provided for annual automatic adjustments of bend points (PIA brackets) in maximum family benefit formula in proportion to increases in average
wage level. As a result, separate formulas are applicable to workers first eligible in successive calendar years.
b. Applicability of formula limited to workers with initial entitlement before July 1980, as a result of 1980 amendments.
c. Calculated amount subject to cost-of-living adjustments beginning with the one effective for June of the year of first eligibility.
d. Formula for computing maximum family benefit revised effective for workers with initial entitlement in or after July 1980. New formula remains unchanged for workers eligible
in successive calendar years because it has no bend points requiring adjustments.
e. Calculated amount subject to cost-of-living adjustments beginning with the one effective in year of first eligibility (or in 1981, if later).
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.17

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A16—Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW) based
on earnings after 1950, and percentage increases in PIA
AMW (dollars)
First 110
Next 290
Next 150
Next 100
Next 100
Next 250
Next 175
Percentage
increase in PIA

April 1952
a
b

50.00
15.00
...
...
...
...
...
f

77.0

September
1952
a
b

September
1954

January
1959

January
1965

February
1968

January
1970

January
1971

September
1972

June 1974

55.00
20.00
...
...
...
...
...

58.85
21.40
...
...
...
...
...

62.97
22.90
21.40
...
...
...
...

71.16
25.88
24.18
28.43
...
...
...

81.83
29.76
27.81
32.69
...
...
...

90.01
32.74
30.59
35.96
20.00
...
...

108.01
39.29
36.71
43.15
24.00
d
20.00
...

119.89
43.61
40.75
47.90
26.64
22.20
e
20.00

13.0

15.0

10.0

20.0

55.00
15.00
...
...
...
...
...
g

c

h

12.5

13.0

i

7.0

j

7.0

k

11.0

(Continued)

Table 2.A16—Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW) based
on earnings after 1950, and percentage increases in PIA—Continued
AMW (dollars)
First 110
Next 290
Next 150
Next 100
Next 100
Next 250
Next 175
Next 100
Next 100
Next 100
Next 435
Next 250
Next 315
Next 225
Next 275
Next 175
Next 150
Percentage
increase in PIA

June 1975

June 1976

June 1977

June 1978

June 1979

June 1980

June 1981

June 1982

December
1983

December
1984

129.48
47.10
44.01
51.73
28.77
23.98
21.60
20.00
...
...
...
...
...
...
...
...
...

137.77
50.10
46.82
55.05
30.61
25.51
22.98
21.28
20.00
...
...
...
...
...
...
...
...

145.90
53.06
49.58
58.30
32.42
27.02
24.34
22.54
21.18
20.00
...
...
...
...
...
...
...

155.38
56.51
52.81
62.09
34.53
28.78
25.92
24.01
22.56
21.30
20.00
...
...
...
...
...
...

170.76
62.10
58.04
68.24
37.95
31.63
28.49
26.39
24.79
23.41
21.98
20.00
...
...
...
...
...

195.18
70.98
66.34
78.00
43.38
36.15
32.56
30.16
28.33
26.76
25.12
22.86
20.00
...
...
...
...

217.04
78.93
73.77
86.74
48.24
40.20
36.21
33.54
31.50
29.76
27.93
25.42
22.24
20.00
...
...
...

233.10
84.77
79.23
93.16
51.81
43.17
38.89
36.02
33.83
31.96
30.00
27.30
23.89
21.48
20.00
...
...

241.26
87.74
82.00
96.42
53.62
44.68
40.25
37.28
35.01
33.08
31.05
28.26
24.73
22.23
20.70
20.00
...

249.70
90.81
84.87
99.79
55.50
46.24
41.66
38.58
36.24
34.24
32.14
29.25
25.60
23.01
21.42
20.70
20.00

6.4

5.9

6.5

9.9

14.3

11.2

7.4

3.5

l

8.0

3.5
(Continued)

Table 2.A16—Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW) based
on earnings after 1950, and percentage increases in PIA—Continued
AMW (dollars)
First 110
Next 290
Next 150
Next 100
Next 100
Next 250
Next 175
Next 100
Next 100
Next 100
Next 435
Next 250
Next 315
Next 225
Next 275
Next 175
Next 150
Next 200
Next 150
Next 100
Next 250
Next 275
Next 175
Next 175
Next 175
Next 250
Next 50
Percentage
increase in PIA

December
1985

December
1986

December
1987

December
1988

December
1989

December
1990

December
1991

December
1992

December
1993

December
1994

257.44
93.62
87.50
102.88
57.22
47.67
42.95
39.78
37.36
35.30
33.14
30.16
26.39
23.72
22.08
21.34
20.63
20.00
...
...
...
...
...
...
...
...
...

260.79
94.84
88.64
104.22
57.96
48.29
43.51
40.30
37.85
35.76
33.57
30.55
26.73
24.03
22.37
21.62
20.90
20.26
20.00
...
...
...
...
...
...
...
...

271.74
98.82
92.36
108.60
60.39
50.32
45.34
41.99
39.44
37.26
34.98
31.83
27.85
25.04
23.31
22.53
21.78
21.11
20.84
20.00
...
...
...
...
...
...
...

282.61
102.77
96.05
112.94
62.81
52.33
47.15
43.67
41.02
38.75
36.38
33.10
28.96
26.04
24.24
23.43
22.65
21.95
21.67
20.80
20.00
...
...
...
...
...
...

295.89
107.60
100.56
118.25
65.76
54.79
49.37
45.72
42.95
40.57
38.09
34.66
30.32
27.26
25.38
24.53
23.71
22.98
22.69
21.78
20.94
20.00
...
...
...
...
...

311.87
113.42
105.99
124.64
69.31
57.75
52.04
48.19
45.27
42.76
40.15
36.53
31.96
28.73
26.75
25.85
24.99
24.22
23.92
22.96
22.07
21.08
20.00
...
...
...
...

323.41
117.62
109.91
129.25
71.87
59.89
53.97
49.97
46.94
44.34
41.64
37.88
33.14
29.79
27.74
26.81
25.91
25.12
24.81
23.81
22.89
21.86
20.74
20.00
...
...
...

333.11
121.15
113.21
133.13
74.03
61.69
55.59
51.47
48.35
45.67
42.89
39.02
34.13
30.68
28.57
27.61
26.69
25.87
25.55
24.52
23.58
22.52
21.36
20.60
20.00
...
...

341.77
124.30
116.15
136.59
75.95
63.29
57.04
52.81
49.61
46.86
44.01
40.03
35.02
31.48
29.31
28.33
27.38
26.54
26.21
25.16
24.19
23.11
21.92
21.14
20.52
20.00
...

351.34
127.78
119.40
140.41
78.08
65.06
58.64
54.29
51.00
48.17
45.24
41.15
36.00
32.36
30.13
29.12
28.15
27.28
26.94
25.86
24.87
23.76
22.53
21.73
21.73
21.09
20.56

3.1

1.3

4.2

4.0

4.7

5.4

3.7

3.0

2.6

2.8
(Continued)

2.18 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A16—Formulas for computing primary insurance amount (PIA) from average monthly wage (AMW) based
on earnings after 1950, and percentage increases in PIA—Continued
AMW (dollars)
First 110
Next 290
Next 150
Next 100
Next 100
Next 250
Next 175
Next 100
Next 100
Next 100
Next 435
Next 250
Next 315
Next 225
Next 275
Next 175
Next 150
Next 200
Next 150
Next 100
Next 250
Next 275
Next 175
Next 175
Next 175
Next 250
Next 50
Next 125
Next 225
Next 250
Next 350
Next 300
Next 350
Next 375
Next 175
Percentage
increase in PIA

December
1995

December
1996

December
1997

December
1998

December
1999

December
2000

December
2001

December
2002

360.47
131.10
122.50
144.06
80.11
66.75
60.16
55.70
52.33
49.42
46.42
42.22
36.94
33.20
30.91
29.88
28.88
27.99
27.64
26.53
25.52
24.38
23.12
22.29
21.64
21.09
20.52
20.00
...
...
...
...
...
...
...

370.93
134.90
126.06
148.24
82.43
68.69
61.91
57.32
53.84
50.86
47.76
43.44
38.01
34.16
31.81
30.74
29.72
28.80
28.44
27.30
26.26
25.08
23.79
22.94
22.27
21.71
21.12
20.58
20.00
...
...
...
...
...
...

378.72
137.73
128.71
151.35
84.16
70.13
63.21
58.52
54.97
51.93
48.76
44.35
38.81
34.88
32.48
31.39
30.34
29.40
29.04
27.87
26.81
25.61
24.29
23.42
22.74
22.17
21.56
21.01
20.42
20.00
...
...
...
...
...

383.64
139.52
130.38
153.32
85.26
71.04
64.03
59.28
55.69
52.60
49.40
44.93
39.31
35.33
32.90
31.79
30.74
29.79
29.41
28.24
27.16
25.94
24.61
23.73
23.03
22.45
21.84
21.29
20.69
20.26
20.00
...
...
...
...

393.23
143.01
133.64
157.15
87.39
72.82
65.63
60.77
57.08
53.92
50.63
46.05
40.30
36.21
33.72
32.59
31.51
30.53
30.15
28.94
27.84
26.59
25.22
24.32
23.61
23.02
22.39
21.82
21.20
20.77
20.50
20.00
...
...
...

407.00
148.02
138.32
162.65
90.45
75.37
67.93
62.89
59.08
55.81
52.40
47.66
41.71
37.48
34.90
33.73
32.61
31.60
31.21
29.95
28.81
27.52
26.10
25.17
24.44
23.82
23.17
22.58
21.94
21.49
21.22
20.70
20.00
...
...

417.58
151.87
141.91
166.88
92.80
77.33
69.70
64.53
60.61
57.26
53.77
48.90
42.79
38.46
35.81
34.61
33.46
32.42
32.02
30.73
29.56
28.23
26.78
25.82
25.07
24.44
23.78
23.17
22.52
22.05
21.77
21.24
20.52
20.00
...

423.43
153.99
143.90
169.22
94.10
78.41
70.67
65.43
61.46
58.06
54.52
49.59
43.39
38.99
36.31
35.09
33.93
32.88
32.46
31.16
29.98
28.63
27.16
26.19
25.42
24.78
24.11
23.49
22.83
22.36
22.07
21.54
20.81
20.28
20.00

2.6

2.9

2.1

1.3

3.5

2.6

1.4

m

2.5

a. Applied to first $100 of AMW.
b. Applied to next $200 of AMW.
c. Applied to next $190 before 1955 and to next $240 effective for January 1955.
d. Applied to next $150 effective for January 1973 and to next $350 effective for January 1974.
e. Applied to next $100 before January 1975.
f. Average increase in benefits of about 77 percent—from 100 percent at the lowest level to 50 percent at the highest level.
g. Increase of 12.5 percent or $5, if larger.
h. Average increase of about 13 percent, with minimum increase of $5.
i. Increase of 7 percent or $3, if larger.
j. Increase of 7 percent or $4, if larger.
k. Increase effective in two steps: 7 percent for March–May and 4 percent for June.
l. Beginning June 1975 all benefit increases are based on automatic cost-of-living adjustments.
m. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.19

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A17—Minimum primary insurance amount (PIA) and maximum family benefit for workers who attained age
62, were first eligible for disabled-worker benefits, or died before 1979
Year enacted
1935
1939
1950
1952
1954
1958
1961
1965
1967
1969
1971
1972
1973 c
1973 d

1981 e
1981

Effective date
...
...
September 1950
September 1952
September 1954
January 1959
August 1961
January 1965
February 1968
January 1970
January 1971
September 1972
June 1974
March 1974
June 1974
June 1975
June 1976
June 1977
June 1978
June 1979
June 1980
June 1981
March 1982
June 1982
December 1983
December 1984
December 1985
December 1986
December 1987
December 1988
December 1989
December 1990
December 1991
December 1992
December 1993
December 1994
December 1995
December 1996
December 1997
December 1998
December 1999 g
December 2000
December 2001
December 2002

Minimum PIA a
(dollars)
10.00
...
20.00
25.00
30.00
33.00
40.00
44.00
55.00
64.00
70.40
84.50
89.50
90.50
93.80
101.40
107.90
114.30
121.80
133.90
153.10
170.30
f

182.90
189.30
195.90
201.90
204.50
213.00
221.50
231.90
244.40
253.40
261.00
267.70
275.10
282.20
290.30
296.30
300.10
307.60
318.30
326.50
331.00

Maximum family benefit
Percentage of AMW
...
Lesser of 80%, $85, or 200% of PIA
80% of first $187.50
80% of first $210.93
80% of first $250
80% of first $317.50
...
80% of first $370 + 40% of next $180
80% of first $436 + 40% of next $214
...
88% of first $436 + 44% of next $191 b
105.6% of first $436 + 52.8% of next $191 b
111.8% of first $436 + 55.9% of next $191 b
113.0% of first $436 + 56.5% of next $191 b
117.2% of first $436 + 58.6% of next $191 b
126.6% of first $436 + 63.3% of next $191 b
134.7% of first $436 + 67.3% of next $191 b
142.6% of first $436 + 71.3% of next $191 b
151.9% of first $436 + 76.0% of next $191 b
167.0% of first $436 + 83.5% of next $191 b
190.9% of first $436 + 95.4% of next $191 b
212.2% of first $436 + 106.1% of next $191 b
...
227.9% of first $436 + 114.0% of next $191 b
235.9% of first $436 + 118.0% of next $191 b
244.2% of first $436 + 122.1% of next $191 b
251.8% of first $436 + 125.9% of next $191 b
255.1% of first $436 + 127.5% of next $191 b
265.8% of first $436 + 132.9% of next $191 b
276.4% of first $436 + 138.2% of next $191 b
289.4% of first $436 + 144.7% of next $191 b
305.0% of first $436 + 152.5% of next $191 b
316.3% of first $436 + 158.1% of next $191 b
325.8% of first $436 + 162.8% of next $191 b
334.3% of first $436 + 167.0% of next $191 b
343.7% of first $436 + 171.7% of next $191 b
352.6% of first $436 + 176.2% of next $191 b
362.8% of first $436 + 181.3% of next $191 b
370.4% of first $436 + 185.1% of next $191 b
375.2% of first $436 + 187.5% of next $191 b
384.6% of first $436 + 192.2% of next $191 b
398.1% of first $436 + 198.9% of next $191 b
408.5% of first $436 + 204.1% of next $191 b
414.2% of first $436 + 206.9% of next $191 b

Not less than—
...
$20.00
$40.00
$45.00
$50.00 or 150% of PIA
$20.00 + PIA or 150% of PIA
150% of PIA
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...
...

a.
b.
c.
d.

Based on earnings; subject to reduction if claimed before age 65.
For AMW of $628 or more, 175 percent of PIA.
Superseded by 1973 legislation.
Beginning in 1975, minimum PIA and percentages in maximum family benefit formula are subject to automatic cost-of-living increases. (Superseded 1972 legislation for
automatic increases beginning in 1974.)
e. Superseded by 1981 legislation that restored the minimum PIA for these groups.
f. Minimum PIA eliminated by 1981 legislation.
g. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.20 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A17.1—Full retirement age and maximum reduction of retired-worker benefits, by year of birth
Year of birth a
1935
1936
1937
1938
1939
1940
1941
1942
1943–1954
1955
1956
1957
1958
1959
1960 or later

Year of attainment
of age 62

Year of attainment
of age 65

Full retirement age

Maximum
reduction months

Maximum reduction
at age 62 b

1997
1998
1999
2000
2001

2000
2001
2002
2003
2004

65 years
65 years
65 years
65 years and 2 months
65 years and 4 months

36
36
36
38
40

0.2000000
0.2000000
0.2000000
0.2083333
0.2166667

2002
2003
2004
2005–2016

2005
2006
2007
2008–2019

65 years and 6 months
65 years and 8 months
65 years and 10 months
66 years

42
44
46
48

0.2250000
0.2333333
0.2416667
0.2500000

2017
2018
2019
2020
2021
2022 and later

2020
2021
2022
2023
2024
2025 and later

66 years and 2 months
66 years and 4 months
66 years and 6 months
66 years and 8 months
66 years and 10 months
67 years

50
52
54
56
58
60

0.2583333
0.2666667
0.2750000
0.2833333
0.2916667
0.3000000

a. If birthday is January 1, refer to previous year.
b. The monthly reduction factor is 0.0055556 for the first 36 months and 0.0041667 for additional months.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.21

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A18—Automatic adjustment provisions
Year enacted

Provision
Quarter of coverage

1977

Mandatory annual determination, beginning in 1978, as to whether or not an adjustment is required in the amount of wages and self-employment
earnings an individual needs in order to be credited with a quarter of coverage (QC) in the succeeding year. The amount required for a QC is the
product of $250 (in effect in 1978) multiplied by the following quotient: the national average wage for the year before the year of determination, divided
by the average wage for 1976 (see Table 2.A8 for average annual wages after 1950). The resulting product, rounded to the nearest multiple of $10, is
the new amount required for a QC. In no case, however, is the new amount reduced below the amount in effect in the year of determination.

1972

The 1972 Act (as modified by the 1973 legislation) mandated a determination in 1974, and in every subsequent year in which a cost-of-living benefit
increase is established, as to whether or not an adjustment is required in the maximum amount of annual earnings that will be taxed and credited
toward benefits.

Maximum amount of taxable and creditable earnings

The determination in the years after 1975 is made by multiplying the “maximum” in effect in the year of determination by the following quotient: the
national average wage for the year before the year of determination, divided by the average wage for the year before the most recent year in which an
automatic determination was made that resulted in an increase or in which an increase in the maximum was enacted. (See Table 2.A8 for annual
amounts of the average wage after 1950). The resulting product, rounded to the nearest multiple of $300, is the new maximum amount of taxable and
creditable earnings, effective with respect to remuneration paid after the year of determination and with respect to taxable years beginning after that
year. In no case, however, is the maximum reduced to an amount below the maximum in the year of determination.
1976

In the 1974 and 1975 determinations, the quotient was the average wage for the year of determination, estimated from data for the first calendar
quarter, divided by the corresponding amount for the year before the year of determination. Public Law 94-202 (signed January 2, 1976) revised the
adjustment method by increasing by a year the lag in average wages used in the computation. Thus, for example, the 1976 determination was based
on the percentage increase in the average wage from 1974 to 1975.

1977

Statutory in lieu of automatic increases in the maximum instituted for 1979, 1980, and 1981. Also, for purposes of establishing a “year of coverage”
used in the computation of the special minimum PIA, annual maximum taxable and creditable earnings after 1978 are the amounts that would have
been determined under the automatic adjustment provisions if the statutory increases in the maximum under the 1977 Act had not been enacted (see
Table 2.A12).

1989

Automatic increases in the maximum for 1990, 1991, and 1992 determined under a transitional rule, specified by the Omnibus Budget Reconciliation
Act of 1989, for computing “deemed” average annual wage for 1988, 1989, and 1990. The purpose of the legislation was to include contributions to
certain “deferred compensation” plans, most importantly section 401(k) pension plans, in the average annual average wage.

1994

The determination for years after 1994 is made by multiplying $60,600, the “maximum” for 1994, by the following quotient: the national average wage
index for the year before the year in which the determination is made, divided by the national average wage index for 1992. (See Table 2.A8 for annual
amounts of the national average wage index.) The resulting product, rounded to the nearest $300, is the new maximum amount of taxable and
creditable earnings, effective with respect to remuneration paid in (and taxable years beginning in) the year following the year the determination is
made. In no case, however, is the new maximum reduced to an amount below the maximum in the year of determination.
Benefits
Computation

1977

New benefit computation method based on average indexed monthly earnings (AIME) after 1950, effective for workers first eligible after 1978.
Provision for automatic adjustment of the dollar amounts, or bend points, defining (1) the AIME brackets in the PIA formula (see Table 2.A11) and (2)
the PIA brackets in the maximum family benefit formula (see Table 2.A13). New bend points are established by multiplying the bend points in effect in
1979—$180 and $1,085 for the PIA formula and $230, $332, and $433 for the maximum family benefit formula—by the following quotient: the national
average wage for the second year before the year for which the determination was made, divided by the average wage for 1977 (see Table 2.A8 for
average annual wages after 1950). The resulting products, rounded to the nearest dollar, are the new bend points.

1980

Modified maximum family benefit formula applicable to workers with initial entitlement to disability benefits in or after July 1980 (see Table 2.A14). New
formula for disabled workers has no bend points subject to automatic adjustment.

1972

Under the original provisions (based on 1972 and 1973 legislation), the arithmetical mean of the consumer price index (CPI) for January, February, and
March in the year of determination was compared with the arithmetical mean of the CPI for the later of (a) January, February, and March of the year in
which the last effective cost-of-living increase was established or (b) the 3 months of the calendar quarter in which the effective month of the last
general benefit increase occurred. (Before the introduction, in 1977, of the alternative CPI series for “all urban consumers,” or the CPI-U, the CPI-W
was referred to as the CPI.) If the percentage increase in the CPI, rounded to the nearest one-tenth of 1 percent, was at least 3.0 (the triggering
requirement), a cost-of-living benefit increase was established and the level of benefits was increased by the same percentage, effective for June of the
year in which the determination was made.

1983

The 1983 Act moved the effective date for a cost-of-living benefit increase from June to December, beginning in 1983, and eliminated the “triggering
requirement” for the 1983 increase only. Effective with the determination made in 1984, the two periods used in calculating the CPI-W percentage
increase were shifted from the first to the third quarter.

Cost-of-living increase

The 1983 Act also introduced an alternative method for determining the size of a cost-of-living adjustment. This method, called the stabilizer provision,
is applied when the ratio of the combined OASDI trust fund assets to estimated outgo falls below a certain percentage. The “triggering” percentage is
15 percent for 1985–1988 and 20 percent for years after 1988. Under these circumstances, the cost-of-living adjustment is based on the lesser of the
CPI-W percentage increase determined above or the increase in average wages. The latter increase is the percentage, rounded to the nearest onetenth of 1 percent by which the national average wage for the year before the year of determination exceeds the average wage for the year before the
most recent year in which either a cost-of-living increase or a general benefit increase occurred. (See Table 2.A8 for the annual amount of the average
wage after 1950 and footnote a in that table for the underlying data sources.)
The 1983 legislation also included a provision for making up any benefit increases that are based on a lower wage increase rather than on the increase
in the cost of living. When the fund ratio is greater than 32 percent, additional increases will be provided so that benefits are increased to the level at
which they would have been if all increases had been based on the CPI-W. (See Table 2.A19 for the cumulative effect of statutory and automatic
increases in benefits.)
1986

Triggering requirement eliminated for cost-of-living increases in and after 1986 by P.L. 99-509 (signed October 21, 1986).

2001

The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The
underlying CPI was later recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI.
Pursuant to P.L. 106-554, benefits were calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected
beneficiaries received a one-time payment to cover the shortfall that occurred before August 2001.
(Continued)

2.22 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A18—Automatic adjustment provisions—Continued
Year enacted

Provision
Earnings test

1972

The 1972 Act (as modified by the 1973 Acts) mandated a determination in 1974, and in every subsequent year in which a cost-of-living increase is
established, as to whether or not an adjustment in the exempt amount—the amount of earnings permitted without reduction in benefits—is required.
The determination in the years after 1975 is made by multiplying the monthly exempt amount in effect in the year of determination by the following
quotient: the national average wage for the year before the year of determination, divided by the average wage for the year before the most recent
year in which an automatic determination was made that resulted in an increase or in which an increase in the exempt amount was enacted. (See
Table 2.A8 for annual amounts of the average wage after 1950.) The resulting product, rounded to the nearest multiple of $10, is the new monthly
exempt amount, effective with respect to remuneration paid after the year of determination and with respect to taxable year beginning after that year. In
no case, however, is the new exempt amount reduced below the exempt amount in the year of determination. The new annual exempt amount is
determined by multiplying the new monthly amount by 12.

1976

In the 1974 and 1975 determinations, the quotient was the average wage for the year of determination, estimated from data for the first calendar
quarter, divided by the corresponding amount for the year before the year of determination. Public Law 94-202 (signed January 2, 1976) revised the
adjustment method by increasing by a year the lag in average wages used in the computation. Thus, for example, the 1976 determination was based
on the percentage increase in the average wage from 1974 to 1975.

1994

The determination for years after 1994 is made by multiplying the monthly exempt amounts in effect for 1994 ($930 for beneficiaries who have, $670 for
beneficiaries who have not yet, reached "full retirement age”; see footnote f in Table 2.A29) by the following quotient: the national average wage for the
year before the year in which the determination is made, divided by the national average wage for 1992. (See Table 2.A8 for annual amounts of the
national average wage.) The resulting products, rounded to the nearest $10, are the new monthly exempt amounts effective for the year following the
year the determination is made. The new annual exempt amounts are determined by multiplying the new monthly amounts by 12.

1996

Public Law 104-121, enacted March 29, 1996, suspended the automatic indexing of the exempt amounts through the year 2002 for workers aged 65–
69. It legislated ad hoc increases in the annual exempt amounts to $12,500 in 1996; $13,500 in 1997; $14,500 in 1998; $15,500 in 1999; $17,000 in
2000; $25,000 in 2001; and $30,000 in 2002. Thereafter, the exempt amounts will increase automatically based on the annual increase in the national
average wage as under the 1994 legislation.

2000

Public Law 106-182, enacted April 7, 2000, eliminated the earnings test beginning with the month a beneficiary reaches full retirement age (FRA). The
annual earnings test that applies in the year of attainment of FRA is based on the annual limits established under P.L. 104-121 (including the $1 for $3
withholding rate). In determining annual earnings for purposes of the annual earnings test under this legislation, only earnings before the month of
attainment of FRA will be considered. Public Law 106-182 did not change the annual exempt amount for beneficiaries who are under FRA throughout
the year, which continues to be pegged to increases in the average wage.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.23

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A19—Illustrative benefit growth: Cumulative effect of statutory and automatic increases in benefits using
a 100 dollar base benefit
August
1950

September 1950

September 1952

September 1954

January 1959

January 1965

February 1968

January 1970

January 1971

September 1972

June
1974

June
1975

June
1976

August 1950
September 1950
September 1952
September 1954
January 1959
January 1965
February 1968
January 1970
January 1971
September 1972
June 1974
June 1975
June 1976

100
...
...
...
...
...
...
...
...
...
...
...
...

177
100
...
...
...
...
...
...
...
...
...
...
...

199
113
100
...
...
...
...
...
...
...
...
...
...

225
127
113
100
...
...
...
...
...
...
...
...
...

241
136
121
107
100
...
...
...
...
...
...
...
...

258
146
129
114
107
100
...
...
...
...
...
...
...

291
164
146
129
121
113
100
...
...
...
...
...
...

335
189
168
149
139
130
115
100
...
...
...
...
...

368
208
185
164
153
143
127
110
100
...
...
...
...

442
250
222
196
184
172
152
132
120
100
...
...
...

491
277
246
218
204
190
168
147
133
111
100
...
...

530
299
266
235
220
206
182
158
144
120
108
100
...

564
318
283
250
234
219
194
168
153
128
115
106
100

Cost-of-living
adjustment

...

77.0

12.5

13.0

7.0

7.0

13.0

15.0

10.0

20.0

11.0

8.0

Base date

6.4
(Continued)

Table 2.A19—Illustrative benefit growth: Cumulative effect of statutory and automatic increases in benefits using
a 100 dollar base benefit—Continued
June
1977

June
1978

June
1979

June
1980

June
1981

June
1982

December 1983

December 1984

December 1985

December 1986

December 1987

December 1988

December 1989

August 1950
September 1950
September 1952
September 1954
January 1959
January 1965
February 1968
January 1970
January 1971
September 1972
June 1974
June 1975
June 1976
June 1977
June 1978
June 1979
June 1980
June 1981
June 1982
December 1983
December 1984
December 1985
December 1986
December 1987
December 1988
December 1989

597
337
300
265
248
232
205
178
162
135
122
113
106
100
...
...
...
...
...
...
...
...
...
...
...
...

636
359
319
283
264
247
218
190
173
144
130
120
113
107
100
...
...
...
...
...
...
...
...
...
...
...

699
395
351
310
290
271
240
209
190
158
142
132
124
117
110
100
...
...
...
...
...
...
...
...
...
...

799
451
401
355
332
310
274
239
217
181
163
151
142
134
126
114
100
...
...
...
...
...
...
...
...
...

888
502
446
395
369
345
305
265
241
201
181
168
158
149
140
127
111
100
...
...
...
...
...
...
...
...

954
539
479
424
396
370
328
285
259
216
194
180
169
160
150
137
119
107
100
...
...
...
...
...
...
...

987
558
496
439
410
383
339
295
268
223
201
186
175
165
155
141
124
111
104
100
...
...
...
...
...
...

1,022
577
513
454
424
397
351
305
277
231
208
193
181
171
161
146
128
115
107
104
100
...
...
...
...
...

1,053
595
529
468
437
409
362
315
286
238
215
199
187
176
166
151
132
119
110
107
103
100
...
...
...
...

1,067
603
536
474
443
414
367
319
290
241
218
201
189
179
168
153
134
120
112
108
104
101
100
...
...
...

1,112
628
558
494
462
432
382
332
302
252
227
210
197
186
175
159
139
125
117
113
109
106
104
100
...
...

1,156
653
581
514
480
449
397
345
314
262
236
218
205
194
182
166
145
130
121
117
113
110
108
104
100
...

1,211
684
608
538
503
470
416
362
329
274
247
229
215
203
190
173
152
136
127
123
118
115
113
109
105
100

Cost-of-living
adjustment

5.9

6.5

9.9

14.3

11.2

7.4

3.5

3.5

3.1

1.3

4.2

4.0

4.7

Base date

(Continued)

2.24 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Computation and Automatic Adjustments
Table 2.A19—Illustrative benefit growth: Cumulative effect of statutory and automatic increases in benefits using
a 100 dollar base benefit—Continued
Base date
August 1950
September 1950
September 1952
September 1954
January 1959
January 1965
February 1968
January 1970
January 1971
September 1972
June 1974
June 1975
June 1976
June 1977
June 1978
June 1979
June 1980
June 1981
June 1982
December 1983
December 1984
December 1985
December 1986
December 1987
December 1988
December 1989
December 1990
December 1991
December 1992
December 1993
December 1994
December 1995
December 1996
December 1997
December 1998
December 1999
December 2000
December 2001
December 2002
Cost-of-living
adjustment

December 1990

December 1991

December 1992

December 1993

December 1994

December 1995

December 1996

December 1997

December 1998

December 1999

December 2000

December 2001

December 2002

1,276
721
641
567
530
495
438
381
347
289
260
241
226
214
201
183
160
144
134
129
125
121
120
115
110
105
100
...
...
...
...
...
...
...
...
...
...
...
...

1,323
748
665
588
550
514
455
395
359
299
270
250
235
222
208
189
166
149
139
134
130
126
124
119
114
109
104
100
...
...
...
...
...
...
...
...
...
...
...

1,363
770
684
606
566
529
468
407
370
308
278
257
242
228
214
195
171
153
143
138
133
129
128
123
118
113
107
103
100
...
...
...
...
...
...
...
...
...
...

1,398
790
702
621
581
543
480
418
380
316
285
264
248
234
220
200
175
157
147
142
137
133
131
126
121
116
110
106
103
100
...
...
...
...
...
...
...
...
...

1,437
812
722
639
597
558
494
429
390
325
293
271
255
241
226
206
180
162
151
146
141
136
135
129
124
119
113
109
105
103
100
...
...
...
...
...
...
...
...

1,475
833
741
655
613
573
507
441
401
334
301
278
262
247
232
211
185
166
155
149
144
140
138
133
128
122
116
111
108
105
103
100
...
...
...
...
...
...
...

1,518
857
762
674
630
589
521
453
412
343
309
286
269
254
239
217
190
171
159
154
149
144
142
137
131
125
119
115
111
109
106
103
100
...
...
...
...
...
...

1,549
875
778
689
644
601
532
463
421
351
316
292
275
260
244
222
194
174
162
157
152
147
145
139
134
128
121
117
114
111
108
105
102
100
...
...
...
...
...

1,570
887
788
698
652
609
539
469
426
355
320
296
278
263
247
225
197
177
165
159
154
149
147
141
136
130
123
119
115
112
109
106
103
101
100
...
...
...
...

1,609
909
808
715
668
625
553
481
437
364
328
304
285
270
253
230
201
181
169
163
157
153
151
145
139
133
126
122
118
115
112
109
106
104
103
100
...
...
...

1,665
941
836
740
692
646
572
497
452
377
339
314
295
279
262
238
209
188
175
169
163
158
156
150
144
138
131
126
122
119
116
113
110
107
106
104
100
...
...

1,708
965
858
759
710
663
587
510
464
387
348
323
303
286
269
245
214
192
179
173
167
162
160
154
148
141
134
129
125
122
119
116
113
110
109
106
103
100
...

1,732
979
870
770
720
672
595
517
470
392
353
327
307
290
273
248
217
195
182
176
170
164
162
156
150
143
136
131
127
124
121
117
114
112
110
108
104
101
100

5.4

3.7

3.0

2.6

2.8

2.6

2.9

2.1

1.3

3.5

2.6

1.4

a

2.5

a. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Growth reflects cost-of-living adjustments only. Data are rounded to the nearest dollar.
. . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 2.25

2.A OASDI: Benefit Types and Levels
Table 2.A20—Monthly benefits for retired and disabled workers
Age

Percentage
of PIA

65 or older

100

1939

...

...

Amount based on PIA.

1956

Women: 62–64

...

Reduced 5/9 of 1% for each month under age 65.

1961

Men: 62–64

...

Reduced 5/9 of 1% for each month under age 65.

1972

...

...

Increased 1/12 of 1% for each month between ages 65 and 72 for which no benefits received after 1970 (PIA based
on AMW only). Applicable only to worker whose benefit has not been actuarially reduced.

1977

...

...

Increased 1/4 of 1% for each month after 1981 and between ages 65 and 72 in which no benefits received.
Requirement for nonreceipt of actuarially reduced benefit removed.

1983

65 and 2 months–67

...

Beginning in year 2000, the age at which 100% of PIA is payable will be gradually increased, as follows:

Year enacted

Condition or qualification
Retired worker

1935

Fully insured. Amount based on cumulative wages.

Applicable PIA payable at age—

Applicable to workers who attain age 62 in—

65 and 2 months
65 and 4 months
65 and 6 months
65 and 8 months
65 and 10 months
66
66 and 2 months
66 and 4 months
66 and 6 months
66 and 8 months
66 and 10 months
67

2000
2001
2002
2003
2004
2005–2016
2017
2018
2019
2020
2021
2022 and later

62–66

...

Reduced 5/9 of 1% for each of the first 36 months of receipt of benefits immediately preceding the age at which
100% of PIA is payable, plus 5/12 of 1% for each of up to 24 earlier months of benefit receipt.

...

...

Increased by the following percentage for each month between the age at which 100% of PIA is payable and age 70
in which no benefits are received:
Age 62 in years—

Rate of increase

Annual rate (percent)

1987–1988
1989–1990
1991–1992
1993–1994
1995–1996
1997–1998
1999–2000
2001–2002
2003–2004
2005 and later

7/24 of 1%
1/3 of 1%
9/24 of 1%
10/24 of 1%
11/24 of 1%
1/2 of 1%
13/24 of 1%
14/24 of 1%
15/24 of 1%
2/3 of 1%

3.5
4
4.5
5
5.5
6
6.5
7
7.5
8

...

...

No further increases for months of nonreceipt of benefits after age 70, effective 1984.

...

...

Partial offset for receipt of pension based on noncovered employment, phased in over a 5-year period beginning in
1986 for individuals first eligible for Social Security and noncovered pension after 1985 (see Table 2.A11).
Disabled worker

1956

50–64

...

Disability insured. Waiting period of 6 calendar months. Reduced by amount of workers' compensation.

1958

...

...

Reduction for workers' compensation eliminated.

1960

Under 50

...

...

1965

...

...

Reduced if benefits plus workers' compensation exceed 80% of the higher of AMW or high-5 year average taxable
earnings in covered employment. Adjusted periodically for rises in wage levels.

1967

...

...

Reduced if benefits plus workers' compensation exceed 80% of the higher of AMW or high 5-year average earnings
in covered employment, regardless of taxable limit.

1972

...

...

Reduced if benefits plus workers' compensation exceed 80% of the highest of (a) AMW, (b) high 5-year average
earnings or (c) highest annual earnings in the period consisting of year of disability onset and 5 preceding years in
covered employment.

...

...

Waiting period reduced to 5 full calendar months.

1983

...

...

Partial offset for receipt of pension based on noncovered employment phased in over a 5-year period beginning in
1986 for individuals first eligible for Social Security and noncovered pension after 1985.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
NOTE: . . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.26 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
...

Table 2.A21—Monthly benefits for spouses and children of retired and disabled workers
Age

Percentage
of PIA

1939

65 or older

50

1956

62–64

...

Reduced 25/36 of 1% for each month under age 65.

1967

...

...

Maximum $105.

1969

...

...

Maximum eliminated.

1977

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

1983

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 50% of PIA is payable will be gradually increased (see Table 2.A20).

62–66

...

Reduced 25/36 of 1% for each of the first 36 months under the age at which 50% of PIA is payable, plus 5/12 of 1%
for each of up to 24 earlier months of benefit receipt.

...

...

Noncovered pension offset limited to two-thirds of such pension.

Year enacted

Condition or qualification
Wife

1984

Fully insured.

Divorced wife
1965

65 or older

...

Fully insured. Dependent. Married 20 years. Not counted toward family maximum.

62–64

...

Reduced 25/36 of 1% for each month under age 65.

1967

...

...

Maximum $105.

1969

...

...

Maximum eliminated.

1972

...

...

Dependency requirement eliminated.

1977

...

...

Married 10 years.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982 and
married 20 years.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

...

...

Can be independently entitled to benefits if divorced for 2 years or more (after marriage of 10 or more years) and
worker could be entitled to benefits if he applied. Effective with benefits for months after December 1984.

65 and 2 months–67

...

Beginning in year 2000, the age at which 50% of PIA is payable will be gradually increased (see Table 2.A20).

62–66

...

Reduced 25/36 of 1% for each of the first 36 months under the age at which 50% of PIA is payable, plus 5/12 of 1%
for each of up to 24 earlier months of benefit receipt.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1950

Under 65

...

Fully insured. Caring for eligible child.

1965

...

...

Eligible child excludes student aged 18–21.

1967

...

...

Maximum $105.

1969

...

...

Maximum eliminated.

1977

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

1981

...

...

Eligible child excludes nondisabled child aged 16–17.

1983

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1939

Under 18

...

Fully insured.a

1965

18–21

...

Full-time student.

1972

...

...

Benefits extended to end of quarter or semester in which 22nd birthday occurs while undergraduate student.

...

...

Includes grandchild under certain circumstances.

1981

18–22

...

Student benefits eliminated (to be phased out gradually for those entitled before May 1982), except for elementary
or secondary school students under age 19.

1996

...

...

Stepchildren must be dependent on worker.

1956

18 or older

...

Fully insured.a Disabled before age 18.

1972

...

...

Disabled before age 22.

...

...

Includes grandchild under certain circumstances.

1983

Wife (mother)

Child

Disabled child

(Continued)

Annual Statistical Supplement, 2003 ♦ 2.27

2.A OASDI: Benefit Types and Levels
Table 2.A21—Monthly benefits for spouses and children of retired and disabled workers—Continued
Year enacted

Age

Percentage
of PIA

Condition or qualification
Husband

1950

65 or older

50

1961

62–64

...

Reduced 25/36 of 1% for each month under age 65.

1967

...

...

Currently insured requirement eliminated. Maximum $105.

1969

...

...

Maximum eliminated.

1977

...

...

Dependency requirement eliminated.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982 and
dependent.

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 50% of PIA is payable will be gradually increased (see Table 2.A20).

62–66

...

Reduced 25/36 of 1% for each of the first 36 months under the age at which 50% of PIA is payable, plus 5/12 of 1%
for each of up to 24 earlier months of benefit receipt.

...

...

Noncovered pension offset limited to two-thirds of such pension.

1983

1984

Fully and currently insured. Dependent.

Divorced husband
1977

b

1983

1984

65 or older

...

Fully insured. Married 10 years. Not counted toward family maximum.

62–64

...

Reduced 25/36 of 1% for each month under age 65.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset).

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible after June 1983.

...

...

Can be independently entitled to benefits if divorced for 2 years or more (after marriage of 10 or more years) and
worker could be entitled to benefits if she applied. Effective with benefits for months after December 1984.

65 and 2 months–67

...

Beginning in year 2000, the age at which 50% of PIA is payable will be gradually increased (see Table 2.A20).

62–66

...

Reduced 25/36 of 1% for each of the first 36 months under the age at which 50% of PIA is payable, plus 5/12 of 1%
for each of up to 24 earlier months of benefit receipt.

...

...

Noncovered pension offset limited to two-thirds of such pension.

Under 65

...

Fully insured. Caring for eligible child. Reduced by full amount of pension payable based on own earnings in
noncovered governmental employment (noncovered pension offset).

Husband (father)
1978 c
1981

...

...

Eligible child excludes nondisabled child aged 16–17.

1983

...

...

1984

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.
Noncovered pension offset limited to two-thirds of such pension.

a. Under 1939 Act, generally not available to child of married female worker. Under 1950 Act, available if female worker is fully and currently insured. Currently insured
requirement eliminated by 1967 Act.
b. Northern District of California District Court decision in Oliver v. Califano, June 24, 1977. Statutory change enacted in 1983.
c. Eastern District of Pennsylvania District Court decision in Cooper v. Califano, December 29, 1978. Statutory change enacted in 1983.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
NOTE: . . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.28 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A22—Monthly benefits for survivors of deceased workers
Age

Percentage
of PIA

1939

65 or older

75

1956

62–64

...

...

1961

...

82.5

...

Year enacted

Condition or qualification
Widow
Fully insured.

1965

60–61

...

Reduced 5/9 of 1% for each month under age 62.

1972

65 or older

100

Limited, if husband retired before age 65, to amount husband would be receiving if still living, but not less than
82 1/2% of PIA.

60–64

...

Reduced 19/40 of 1% each month under age 65. In addition, for a widow aged 62–64 whose husband retired
before age 65 limited to amount he would be receiving if still living, but not less than 82 1/2% of PIA.

1977

1983

...

...

Increased by any delayed retirement credit husband would be receiving.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 100% of PIA is payable will be gradually increased, as follows:
Applicable PIA payable at age—

Applicable to widows who attain age 60 in—

65 and 2 months
65 and 4 months
65 and 6 months
65 and 8 months
65 and 10 months
66
66 and 2 months
66 and 4 months
66 and 6 months
66 and 8 months
66 and 10 months
67

2000
2001
2002
2003
2004
2005–2016
2017
2018
2019
2020
2021
2022 and later

60–66

...

The percent of reduction for each month depends on the age at which 100% of PIA is payable. The
percentage is adjusted so that the total reduction, in equal monthly steps, is always 28 1/2% at age 60.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1967

50–59

82.5

Fully insured. Reduced 13 1/3%, plus 43/198 of 1% for each month under age 60. Includes divorced wife,
dependent and married 20 years.

1972

...

100

Reduced 28 1/2%, plus 43/240 of 1% for each month under age 60.

1977

...

...

Increased by any delayed retirement credit husband would be receiving.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

Disabled widow

1983

...

...

Additional reduction for each month under age 60 eliminated.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1965

60 or older

82.5

Fully insured. Dependent. Married 20 years. Not counted toward family maximum. Reduced 5/9 of 1% for
each month under age 62.

1972

65 or older

100

Limited, if former husband retired before age 65, to amount he would be receiving if still living, but not less
than 82 1/2% of PIA.

60–64

...

Reduced 19/40 of 1% for each month under age 65. In addition, for widow aged 62–64 whose former
husband retired before age 65, limited to amount he would be receiving if still living, but not less than 82 1/2%
of PIA.

Surviving divorced wife

1977

1983

1984

...

...

Dependency requirement eliminated.

...

...

Increased by any delayed retirement increment former husband would be receiving.

...

...

Married 10 years.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982
and married 20 years.

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and
dependent. Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 100% of PIA is payable will be gradually increased (see Widow).

60–66

...

The percent of reduction for each month depends on the age at which 100% of PIA is payable. The
percentage is adjusted so that the total reduction, in equal monthly steps, is always 28 1/2% at age 60.

...

...

Noncovered pension offset limited to two-thirds of such pension.
(Continued)

Annual Statistical Supplement, 2003 ♦ 2.29

2.A OASDI: Benefit Types and Levels
Table 2.A22—Monthly benefits for survivors of deceased workers—Continued
Year enacted

Age

Percentage
of PIA

Condition or qualification
Disabled surviving divorced wife

1967
1972
1977

1983

50–59

82.5

Fully insured. Dependent. Married 20 years. Not counted toward family maximum. Reduced 13 1/3%, plus
43/198 of 1% for each month under age 62.

...

100

Reduced 28 1/2%, plus 43/240 of 1% for each month under age 60.

...

...

Dependency requirement eliminated.
Increased by any delayed retirement increment husband (or former husband) would be receiving.

...

...

...

...

Married 10 years.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982
and married 20 years.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

...

...

Additional reduction for each month under age 60 eliminated.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1939

Under 65

75

Fully or currently insured. Caring for eligible child.

1965

...

...

Eligible child excludes student over age 18.

1977

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

1981

...

...

Eligible child excludes nondisabled child aged 16–17.

1983

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

Widowed mother

Surviving divorced mother
1950

Under 65

75

1965

...

...

Fully or currently insured. Caring for eligible child. Dependent. Not counted toward family maximum.
Eligible child excludes student over age 18.

1972

...

...

Dependency requirement eliminated.

1977

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

1981

...

...

Eligible child excludes nondisabled child aged 16–17.

1983

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

1984

...

...

Noncovered pension offset limited to two-thirds of such pension.

1939

Under 18

50

Fully or currently insured.a Student aged 16–17.

Child

1946

...

...

Student requirement eliminated.

1950

...

...

Plus 25% of PIA divided among the children.
Additional 25% of PIA eliminated.

1960

...

75

1965

...

...

Full-time student.

1972

...

...

Benefits extended to end of quarter or semester in which 22nd birthday occurs while undergraduate student.

...

...

Includes grandchild under certain circumstances.

1981

18–22

...

Student category eliminated (to be phased out gradually for those entitled before May 1982), except for
elementary or secondary school students under age 19.

1996

...

...

Stepchildren must be dependent on worker.

1956

18 or older

50

Fully or currently insured.a Disabled before age 18. Plus 25% of PIA divided among the children.

Disabled child

1960

...

75

Additional 25% of PIA eliminated.

1972

...

...

Disabled before age 22.

...

...

Includes grandchild under certain circumstances.

1939

65 or older

50

Fully insured. Dependent. No surviving widow or child under age 18.

1946

...

...

No surviving eligible widow or child.

1950

...

75

...

1956

62–64

...

Women.

1958

...

...

No-other-survivor requirement eliminated.

1961

62 or older

82.5

75% each if two parents.

Parent

(Continued)

2.30 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A22—Monthly benefits for survivors of deceased workers—Continued
Year enacted

Age

Percentage
of PIA

Condition or qualification
Widower

1950

65 or older

75

1961

62 or older

82.5

...

Fully and currently insured. Dependent.

1967

...

...

Currently insured requirement eliminated.

1972

65 or older

100

Limited, if wife retired before age 65, to amount wife would be receiving if still living, but not less than 82 1/2%
of PIA.

60–64

...

Reduced 19/40 of 1% for each month under age 65. In addition, for a widower aged 62–64 whose wife retired
before age 65, limited to amount she would be receiving if still living, but not less than 82 1/2% of PIA.
Dependency requirement eliminated.

1977

...

...

...

...

Increased by any delayed retirement increment wife would be receiving.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982,
dependent, and not remarried before age 60.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 100% of PIA is payable will be gradually increased (see Widow).

60–66

...

The percent of reduction for each month depends on the age at which 100% of PIA is payable. The
percentage is adjusted so that the total reduction, in equal monthly steps, is always 28 1/2% at age 60.

...

...

Noncovered pension offset limited to two-thirds of such pension.

1983

1984

Disabled widower
1967

50–61

82.5

Fully insured. Dependent. Reduced 5/9 of 1% per month between ages 60–62, plus 43/198 of 1% for each
month under age 60.

1972

50–59

100

Reduced 28 1/2%, plus 43/240 of 1% for each month under age 60. Disability requirement eliminated for
ages 60–61.

...

...

Dependency requirement eliminated.

...

...

Increased by any delayed retirement increment wife would be receiving.

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982,
dependent, and not remarried before age 60.

...

...

Noncovered pension offset not applicable if first eligible for such pension before July 1983 and dependent.
Reduced by only two-thirds of such pension if first eligible for it after June 1983.

...

...

Additional reduction for each month under age 60 eliminated.

...

...

Noncovered pension offset limited to two-thirds of such pension.

65 or older

100

Fully insured. Married 10 years. Increased by any delayed retirement credit former wife would be receiving.
Limited, if former wife retired before age 65, to amount she would be receiving if still living, but not less than
82 1/2% of PIA. Not counted toward family maximum. Reduced by full amount of pension payable based on
own earnings in noncovered governmental employment (noncovered pension offset).

60–64

...

Reduced 19/40 of 1% for each month under age 65. In addition, for a widower aged 62–64 whose wife retired
before age 65, limited to amount she would be receiving if still living, but not less than 82 1/2% of PIA.

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and
dependent. Reduced by only two-thirds of such pension if first eligible for it after June 1983.

65 and 2 months–67

...

Beginning in year 2000, the age at which 100% of PIA is payable will be gradually increased (see Widow).

60–66

...

The percent of reduction for each month depends on the age at which 100% of PIA is payable. The
percentage is adjusted so that the total reduction, in equal monthly steps, is always 28 1/2% at age 60.

...

...

Noncovered pension offset limited to two-thirds of such pension.

50–59

100

Fully insured. Married 10 years. Increased by any delayed retirement credit former wife would be receiving.
Reduced 28 1/2%, plus 43/240 of 1% for each month under age 60. Not counted toward family maximum.
Reduced by full amount of pension payable based on own earnings in noncovered employment (noncovered
pension offset).

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and
dependent. Reduced by only two-thirds of such pension if first eligible for it after June 1983.

...

...

Additional reduction for each month under age 60 eliminated.

...

...

Noncovered pension offset limited to two-thirds of such pension.

1977

1983

1984

Surviving divorced husband
1980 b

1983

1984

Disabled surviving divorced husband
1980 b

1983

1984

Widowed father
1975

c

Under 65

75

Fully or currently insured. Caring for eligible child under age 18.

1977

...

...

Reduced by full amount of pension payable based on own earnings in noncovered governmental employment
(noncovered pension offset). Reduction does not apply if eligible for such pension before December 1982.

1981

...

...

Eligible child excludes nondisabled child aged 16–17.

1983

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and
dependent. Reduced by only two-thirds of such pension if first eligible for it after June 1983.

1984

...

...

Noncovered pension offset to two-thirds of such pension.
(Continued)

Annual Statistical Supplement, 2003 ♦ 2.31

2.A OASDI: Benefit Types and Levels
Table 2.A22—Monthly benefits for survivors of deceased workers—Continued
Year enacted

Age

Percentage
of PIA

Condition or qualification
Surviving divorced father

1979 d

Under 65

1981

75

...

...

Eligible child excludes nondisabled child aged 16–17.

...

...

Noncovered pension offset provision not applicable if first eligible for such pension before July 1983 and
dependent. Reduced by only two-thirds of such pension if first eligible for it after June 1983.

...

...

Noncovered pension offset limited to two-thirds of such pension.

1983
1984

Fully or currently insured. Caring for eligible child under age 18. Reduced by full amount of pension payable
based on own earnings in noncovered governmental employment (noncovered pension offset).

a. Under 1939 Act, generally not available to child of married female worker. Under 1950 Act, available if female worker is fully and currently insured; currently insured
requirement eliminated by 1967 Act.
b. Oregon District Court decision in Ambrose v. Harris, July 17, 1980. Statutory change enacted in 1983.
c. Supreme Court decision in Weinberger v. Wiesenfeld, March 19, 1975. Statutory change enacted in 1983.
d. Western District Court decision in Yates v. Califano, January 28, 1979. Statutory change enacted in 1983.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
NOTE: . . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.32 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A23—Monthly benefits for transitionally insured workers and their spouses and surviving spouses,
aged 72 before 1969
Type of benefit

Effective date

Amount
Enacted in 1965

Worker

September 1965

$35.00

October 1966

Same as benefit for individual receiving special age-72 benefits (see Table 2.A24)

Wife

September 1963

One-half of worker’s benefit

Widow

September 1963

Same as worker's benefit
Enacted in 1983

Husband

May 1983

One-half of worker’s benefit

Widower

May 1983

Same as worker's benefit

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 2.33

2.A OASDI: Benefit Types and Levels
Table 2.A24—Monthly benefits for individuals and couples insured for special age-72 (Prouty) benefits
Amount a (dollars)
Individual

Year enacted

Effective date

Age

1966

October 1966

72

35.00

52.50

1967

February 1968

...

40.00

60.00

Couple

1969

January 1970

...

46.00

69.00

1971

January 1971

...

48.30

72.50

1972 b

September 1972

...

58.00

87.00

1973 c

June–December 1974

...

61.50

92.30

1973 d

March 1974
June 1974
June 1975
June 1976
June 1977
June 1978
June 1979
June 1980
June 1981
June 1982

...
...
...
...
...
...
...
...
...
...

62.10
64.40
69.50
74.10
78.50
83.70
92.00
105.20
117.00
125.60

93.20
96.60
104.40
111.20
117.80
125.60
138.10
157.90
175.70
188.60

1983 e

December 1983
December 1984
December 1985
December 1986
December 1987
December 1988
December 1989

...
...
...
...
...
...
...

129.90
134.40
138.50
140.30
146.10
151.90
159.00

...
...
...
...
...
...
...

1990

December 1990
December 1991
December 1992
December 1993
December 1994
December 1995
December 1996
December 1997
December 1998
December 1999 g
December 2000
December 2001
December 2002

72 before 1972 f
...
...
...
...
...
...
...
...
...
...
...

167.50
173.60
178.80
183.40
188.50
193.40
199.00
203.10
205.70
210.80
218.10
223.70
226.80

...
...
...
...
...
...
...
...
...
...
...
...
...

...

a. Monthly benefit reduced by amount of any government pension excluding workers' compensation benefits and veterans' compensation for service-connected disability or
death. Not available for persons receiving assistance.
b. Provision for future automatic cost-of-living adjustments.
c. Suspended by 1973 legislation.
d. Beginning June 1975, subject to automatic cost-of-living adjustments. Benefits no longer available to persons receiving payments under Supplemental Security Income
program.
e. Separate rate for couples eliminated. Rate for individuals applied to all beneficiaries.
f. Effective for applications after November 5, 1990.
g. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.34 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A25—Lump-sum benefits and vocational rehabilitation services, by type of benefit
Year enacted

Provision
Lump-sum refund

1935

Persons not insured at age 65 eligible for lump-sum refund equal to 3.5 percent of cumulative wage credits.

1939

Lump-sum refund eliminated.

1935

Under age 65: 3.5 percent of cumulative wage credits. Aged 65 or older and fully insured: 3.5 percent of cumulative wage credits, less monthly benefits
received.

1939

Fully and currently insured: 6 times PIA if no survivor eligible for monthly benefits.

Lump-sum death payment

1950

3 times PIA for all deaths.

1954

3 times PIA with maximum of $255.

1981

Payable only to a widow or widower who was living with the worker at time of the death or to a widow, widower, or children eligible for monthly benefits.
Amount of lump sum fixed at $255.

1965

Available to selected disabled individuals. Costs of services payable from OASDI trust funds to state vocational rehabilitation agencies.
Reimbursement in any year may not exceed 1 percent of the total amount of OASDI disability benefits disbursed in the prior year.

Vocational rehabilitation services

1972

Maximum annual reimbursement increased to 1.25 percent for fiscal year ending June 30, 1973, and 1.50 percent thereafter.

1981

Reimbursement from trust funds for cost of rehabilitation services made if the services result in the disabled individual's return to work (performance of
substantial gainful activity for 9 consecutive months).

1999

Enhancements including expanded beneficiary choice of service providers and extended health care for beneficiaries who return to work.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 2.35

2.A OASDI: Benefit Types and Levels
Table 2.A26—Monthly benefit amount for selected beneficiary families with first eligibility in 2002, by average
indexed monthly earnings for stipulated yearly wage levels, effective December 2002 (in dollars)
Beneficiary family

Federal
minimum wage a

75% of
average wage

Average
wage b

150% of
average wage

Maximum
taxable earnings c

Retired-worker families d
Average indexed monthly earnings
Primary insurance amount
Maximum family benefit
Monthly benefit amount for retired worker claiming benefits at age 62
Worker alone
Worker with spouse claiming benefits at—
Age 65 or older
Age 62

1,257.00
756.00
1,134.00

2,011.00
1,000.60
1,786.30

2,681.00
1,218.00
2,224.90

3,928.00
1,560.40
2,731.50

5,499.00
1,799.40
3,149.70

585.00

775.00

943.00

1,209.00

1,394.00

963.00
859.00

1,275.00
1,137.00

1,552.00
1,384.00

1,989.00
1,774.00

2,293.00
2,046.00

Survivor families e
Average indexed monthly earnings
Primary insurance amount
Maximum family benefit

1,027.00
681.40
1,022.10

2,013.00
1,001.30
1,788.20

2,684.00
1,219.00
2,226.20

4,026.00
1,575.30
2,757.60

6,534.00
1,956.80
3,425.10

Monthly benefit amount for survivor of worker deceased at age 40
1 surviving child
Widowed mother or father and 1 child
Widowed mother or father and 2 children

511.00
1,022.00
1,020.00

750.00
1,500.00
1,788.00

914.00
1,828.00
2,226.00

1,181.00
2,362.00
2,757.00

1,467.00
2,934.00
3,423.00

Disabled-worker families

f

Average indexed monthly earnings
Primary insurance amount
Maximum family benefit g

1,163.00
725.50
1,002.30

2,011.00
1,000.60
1,500.90

2,682.00
1,218.40
1,827.60

4,023.00
1,574.90
2,362.40

6,321.00
1,924.40
2,886.60

Monthly benefit amount for disabled worker age 50
Worker alone
Worker, spouse, and 1 child

725.00
1,001.00

1,000.00
1,500.00

1,218.00
1,826.00

1,574.00
2,360.00

1,924.00
2,886.00

a.
b.
c.
d.
e.
f.
g.

Annual earnings are calculated by multiplying the federal minimum wage by 2,080 hours (see Table 3.B3). Increases in the minimum wage during the year are prorated.
See Table 2.A8.
See Table 2.A9.
Assumes the worker began to work at age 22, retired at age 62 in 2002 with maximum reduction, and had no prior period of disability.
Assumes the deceased worker began to work at age 22, died in 2002 at age 40, had no earnings in that year, and had no prior period of disability.
Assumes the worker began to work at age 22, became disabled at age 50 in 2002, had no earnings in that year, and had no prior period of disability.
The 1980 Amendments to the Social Security Act provide for a different family maximum amount in disability cases. For disabled workers entitled after June 1980, the
maximum is the smaller of (1) 85 percent of the worker’s AIME (or 100 percent of the PIA, if larger) or (2) 150 percent of the PIA.

SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

2.36 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A27—Minimum and maximum monthly retired-worker benefits payable to individuals who retired at
age 62, by year they attained age 62, 1957–2003 (in dollars)
Minimum benefit payable
Year a
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003

Effective
At retirement December 2002 b
24.00
24.00
26.40
26.40
26.40
32.00
32.00
32.00
35.20
35.20
35.20
c
44.00
44.00
51.20
56.40
56.40
67.60
67.60
75.10
81.20
86.40
91.50
97.60
97.60
97.60

e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e

311.80
311.80
311.80
310.40
308.70
307.80
306.20
306.20
305.80
303.20
301.40
297.50
294.60
290.40
286.50
282.50
278.60
274.10
270.50
267.30
265.30
264.10
265.20
241.00
210.50
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e

At retirement
Men
...
...
...
...
...
93.60
94.40
95.20
102.80
102.80
105.40
c
121.00
124.80
146.80
163.60
167.10
207.60
217.00
253.10
285.60
319.40
354.60
d 388.90
d 402.80
432.00
474.60
526.40
559.40
591.30
630.50
662.10
686.70
734.00
774.60
810.00
854.10
893.60
948.00
965.90
999.90
1,049.10
1,109.60
1,183.60
1,241.70
1,307.30
1,375.30
1,404.30

Maximum benefit payable
Effective December 2002 b
Women
Men
Women
86.80
86.80
92.80
95.20
96.00
96.80
97.60
98.40
105.40
106.20
108.80
c
124.80
128.40
151.90
170.50
172.90
212.90
219.70
253.10
285.60
319.40
354.60
d 388.90
d 402.80
432.00
474.60
526.40
559.40
591.30
630.50
662.10
686.70
734.00
774.60
810.00
854.10
893.60
948.00
965.90
999.90
1,049.10
1,109.60
1,183.60
1,241.70
1,307.30
1,375.30
1,404.30

...
...
...
...
...
774.50
779.80
784.80
789.10
786.40
804.00
808.00
825.50
833.40
832.20
838.80
854.50
880.90
911.90
941.60
983.00
1,028.10
1,058.90
997.80
935.90
924.90
954.80
980.50
1,001.80
1,036.00
1,074.00
1,069.10
1,098.70
1,107.60
1,098.90
1,117.70
1,135.40
1,174.00
1,163.70
1,174.20
1,197.40
1,240.50
f
1,306.10
1,336.90
1,359.90
1,394.50
...

768.60
768.60
768.00
788.40
794.10
801.10
806.40
811.70
809.90
812.80
829.30
834.40
849.60
862.20
867.90
867.90
877.20
891.30
911.90
941.60
983.00
1,028.10
1,058.90
997.80
935.90
924.90
954.80
980.50
1,001.80
1,036.00
1,074.00
1,069.10
1,098.70
1,107.60
1,098.90
1,117.70
1,135.40
1,174.00
1,163.70
1,174.20
1,197.40
1,240.50
f
1,306.10
1,336.90
1,359.90
1,394.50
...

a. Assumes the worker began to work at age 22, retired at the beginning of the year, had no prior disability, and received the maximum reduction. Through 1999 the assumed
reduction was 36 months at 5/9 of 1 percent per month or 20 percent. In 2001, with the increase in the full retirement age to 65 and 2 months, the reduction increased to
20.008333 percent (see Table 2.A20). In 2002 the full retirement age increased to 65 and 4 months for a maximum reduction to 21.666667 percent. In 2002 the full
retirement age increased to 65 and 6 months for a maximum reduction of 22.5 percent. In 2003 the full retirement age increased to 65 and 8 months for a maximum
reduction of 23.333333 percent.
b. Final benefit amount payable after Supplementary Medical Insurance (SMI) premium or any other deduction is rounded to next lower $1.
c. Effective February 1968.
d. Derived from transitional guarantee computation based on 1978 PIA table.
e. Minimum PIA eliminated by 1981 legislation for workers who attain age 62 in 1982 or later. (The minimum is retained until 1991 for members of religious orders who were
under a vow of poverty, provided that the order had elected Social Security coverage before December 29, 1981.)
f. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent, based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were calculated
and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the shortfall that
occurred before August 2001.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Benefit first available at age 62 to female workers effective November 1956 and to male workers effective August 1961.
. . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.37

2.A OASDI: Benefit Types and Levels
Table 2.A28—Minimum and maximum monthly retired-worker benefits payable to individuals who retired at
age 65, by year they attained age 65, 1940–2003 (in dollars)
Minimum benefit payable
At retirement
Men

Maximum benefit payable
Effective December 2002
Women
Men

b

At retirement

Effective
December 2002 b

1940
1941
1942
1943
1944

10.00
10.00
10.00
10.00
10.00

330.70
330.70
330.70
330.70
330.70

41.20
41.60
42.00
42.40
42.80

41.20
41.60
42.00
42.40
42.80

641.30
641.30
648.90
648.90
648.90

641.30
641.30
648.90
648.90
655.90

1945
1946
1947
1948
1949

10.00
10.00
10.00
10.00
10.00

330.70
330.70
330.70
330.70
330.70

43.20
43.60
44.00
44.40
44.80

43.20
43.60
44.00
44.40
44.80

655.90
663.80
670.00
670.00
676.80

655.90
663.80
670.00
670.00
676.80

1950
1951
1952
1953
1954

10.00
20.00
20.00
25.00
25.00

330.70
330.70
330.70
330.70
330.70

45.20
68.50
68.50
85.00
85.00

45.20
68.50
68.50
85.00
85.00

685.20
685.20
685.20
757.00
757.00

685.20
685.20
685.20
757.00
757.00

1955
1956
1957
1958
1959

30.00
30.00
30.00
30.00
33.00

330.70
330.70
330.70
330.70
330.70

98.50
103.50
108.50
108.50
116.00

98.50
103.50
108.50
108.50
116.00

757.00
799.80
835.90
835.90
835.90

757.00
799.80
835.90
835.90
835.90

1960
1961
1962
1963
1964

33.00
33.00
40.00
40.00
40.00

330.70
330.70
330.70
330.70
330.70

119.00
120.00
121.00
122.00
123.00

119.00
120.00
123.00
125.00
127.00

856.90
863.70
871.60
878.50
886.40

856.90
863.70
886.40
899.70
914.70

1965
1966
1967
1968
1969

44.00
44.00
44.00
c
55.00
55.00

330.70
330.70
330.70
330.70
330.70

131.70
132.70
135.90
c
156.00
160.50

135.90
135.90
140.00
c
161.60
167.30

886.40
892.90
914.70
928.50
955.70

914.70
914.70
941.80
961.90
995.80

1970
1971
1972
1973
1974

64.00
70.40
70.40
84.50
84.50

330.70
330.70
330.70
330.70
330.70

189.80
213.10
216.10
266.10
274.60

196.40
220.40
224.70
276.40
284.90

982.40
1,002.50
1,017.40
1,043.30
1,076.10

1,017.40
1,036.10
1,057.10
1,083.80
1,117.00

1975
1976
1977
1978
1979

93.80
101.40
107.90
114.30
121.80

330.70
330.70
330.70
330.70
330.70

316.30
364.00
412.70
459.80
503.40

333.70
378.80
422.40
459.80
503.40

1,117.00
1,189.40
1,267.80
1,333.70
1,370.80

1,178.40
1,237.90
1,297.20
1,333.70
1,370.80

133.90
153.10
170.30
166.40
150.50

330.70
330.70
330.70
300.90
262.50

572.00
677.00
679.30
709.50
703.60

1,417.30
1,467.60
1,323.60
1,287.60
1,233.50

1,417.30
1,467.60
1,323.60
1,287.60
1,233.50

e
e
e
e
e

e
e
e
e
e

717.20
760.10
789.20
838.60
899.60

1,215.20
1,249.10
1,280.50
1,305.90
1,346.80

1,215.20
1,249.10
1,280.50
1,305.90
1,346.80

Year a

1980
1981
1982
1983
1984

d
d
d

1985
1986
1987
1988
1989

d

572.00
677.00
679.30
709.50
703.60
717.20
760.10
789.20
838.60
899.60

d

Women

(Continued)

2.38 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Benefit Types and Levels
Table 2.A28—Minimum and maximum monthly retired-worker benefits payable to individuals who retired at
age 65, by year they attained age 65, 1940–2003 (in dollars)—Continued
Minimum benefit payable
At retirement
Men

Maximum benefit payable
Effective December 2002
Women
Men

b

At retirement

Effective
December 2002 b

1990
1991
1992
1993
1994

e
e
e
e
e

e
e
e
e
e

975.00
1,022.90
1,088.70
1,128.80
1,147.50

975.00
1,022.90
1,088.70
1,128.80
1,147.50

1,394.50
1,388.10
1,424.80
1,434.30
1,421.10

1,394.50
1,388.10
1,424.80
1,434.30
1,421.10

1995
1996
1997
1998
1999

e
e
e
e
e

e
e
e
e
e

1,199.10
1,248.90
1,326.60
1,342.80
1,373.10

1,199.10
1,248.90
1,326.60
1,342.80
1,373.10

1,444.60
1,466.60
1,514.20
1,501.10
f
1,515.30

1,444.60
1,466.60
1,514.20
1,501.10
f
1,515.30

2000
2001
2002
2003 g

e
e
e
e

e
e
e
e

1,435.30
1,538.20
1,660.50
1,721.70

f
f
f

f
f
f

Year a

f
f
f
g

1,435.30
1,538.20
1,660.50
1,721.70

f
f
g

1,545.40
1,600.10
1,683.70
...

Women

1,545.40
1,600.10
1,683.70
...

a.
b.
c.
d.
e.

Assumes the worker began to work at age 22, retired at the beginning of the year, had no earnings after retirement, and had no prior period of disability.
Final benefit amount payable after Supplementary Medical Insurance (SMI) premium or any other deduction is rounded to next lower $1.
Effective for February 1968.
Derived from transitional guarantee computation based on 1978 PIA table.
Minimum PIA eliminated by 1981 legislation for workers who attain age 62 in 1982 or later. (The minimum is retained until 1991 for members of religious orders who are
under a vow of poverty, provided that the order had elected Social Security coverage before December 29, 1981.)
f. The December 1999 cost-of-living adjustment (COLA) was originally determined to be 2.4 percent based on the consumer price index (CPI). The underlying CPI was later
recomputed by the Bureau of Labor Statistics; a 2.5 percent COLA would have been consistent with the recomputed CPI. Pursuant to P.L. 106-554, benefits were
calculated and paid in August 2001 and later as if the December 1999 COLA had been 2.5 percent. Affected beneficiaries received a one-time payment to cover the
shortfall that occurred before August 2001.
g. Effective for workers retiring at age 65 in 2003, the age at which one can receive an unreduced benefit—the full retirement age (FRA)—has been raised from 65 to 65 and 2
months. Workers retiring at age 65 receive a benefit of $1,721.70. Those entitled at age 65 and 2 months receive a benefit of $1,741.10. See Table 2.A17.1 for reduction
factors.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.39

2.A OASDI: Effect of Current Earnings and Taxation of Benefits
Table 2.A29—Earnings (retirement) test, by year enacted

Effective
year

Beneficiaries
exempt

Earnings
subject
to test

1935
1939
1950
1952
1954
1956
1958
1960

...
1940
1951
1953
1955
1958
1959
1961

...
...
Aged 75 or older
...
Aged 72 or older
Disabled
...
...

Covered
...
...
...
All d
...
...
...

1961

1962

...

1965

1966

1967
1972
1973

Year
enacted

Amount permitted without
reduction in benefits
(exempt amount)
Annual
Monthly
earnings
wages b
(dollars)
(dollars)

Reduction in monthly benefit a

For all beneficiaries
...
...
c
600
c 900
1,200
...
...
...

...
14.99
50.00
75.00
80.00
...
100.00
...

...

...

...

...

...

1,500

125.00

1968

...

...

1,680

140.00

1973
1974
1975
1976
1977

...
...

Up to age 72
...

2,100
2,400
e 2,520
e
2,760
e 3,000

175.00
200.00
e 210.00
e
230.00
e 250.00

Full monthly benefit
...
...
...
One month's full benefit for each $80.00 or fraction thereof
...
...
$1 for each $2 of earnings from $1,201–$1,500
$1 for each $1 of earnings above $1,500
$1 for each $2 of earnings from $1,201–$1,700
$1 for each $1 of earnings above $1,700
$1 for each $2 of earnings from $1,501–$2,700
$1 for each $1 of earnings above $2,700
$1 for each $2 of earnings from $1,681–$2,880
$1 for each $1 of earnings above $2,880
$1 for each $2 of earnings above $2,100
$1 for each $2 of earnings above $2,400
$1 for each $2 of earnings above $2,520
$1 for each $2 of earnings above $2,760
$1 for each $2 of earnings above $3,000

For beneficiaries who have not reached full retirement age f
1977

1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999

...

e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e

...

3,240
3,480
3,720
4,080
4,440
4,920
5,160
5,400
5,760
6,000
6,120
6,480
6,840
7,080
7,440
7,680
8,040
8,160
8,280
8,640
9,120
9,600

e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e
e

270.00
290.00
310.00
340.00
370.00
410.00
430.00
450.00
480.00
500.00
510.00
540.00
570.00
590.00
620.00
640.00
670.00
680.00
690.00
720.00
760.00
800.00

$1 for each $2 of earnings above $3,240
$1 for each $2 of earnings above $3,480
$1 for each $2 of earnings above $3,720
$1 for each $2 of earnings above $4,080
$1 for each $2 of earnings above $4,440
$1 for each $2 of earnings above $4,920
$1 for each $2 of earnings above $5,160
$1 for each $2 of earnings above $5,400
$1 for each $2 of earnings above $5,760
$1 for each $2 of earnings above $6,000
$1 for each $2 of earnings above $6,120
$1 for each $2 of earnings above $6,480
$1 for each $2 of earnings above $6,840
$1 for each $2 of earnings above $7,080
$1 for each $2 of earnings above $7,440
$1 for each $2 of earnings above $7,680
$1 for each $2 of earnings above $8,040
$1 for each $2 of earnings above $8,160
$1 for each $2 of earnings above $8,280
$1 for each $2 of earnings above $8,640
$1 for each $2 of earnings above $9,120
$1 for each $2 of earnings above $9,600

For beneficiaries who have reached full retirement age f
1977

1981

1983

1996

1978
1979
1980
1981
1982
1983
1983
1984
1985
1986
1987
1988
1989
1990
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999

...

...

Aged 70 or older

Up to age 70

...

...

...

...

g
4,000
g 4,500
g 5,000
g
5,500
g 6,000

...
6,600
6,960
7,320
7,800
8,160
8,400
8,880
...
e 9,360
e
9,720
e 10,200
e 10,560
e
11,160
e 11,280
12,500
13,500
14,500
15,500
e
e
e
e
e
e
e

g
g
g
g
g

333.33
375.00
416.66
458.33
500.00
...
e
550.00
e 580.00
e 610.00
e
650.00
e 680.00
e 700.00
e
740.00
...
e 780.00
e
810.00
e 850.00
e 880.00
e
930.00
e 940.00
h 1,041.67
1,125.00
i 1,208.33
j 1,291.67

$1 for each $2 of earnings above $4,000
$1 for each $2 of earnings above $4,500
$1 for each $2 of earnings above $5,000
$1 for each $2 of earnings above $5,500
$1 for each $2 of earnings above $6,000
...
$1 for each $2 of earnings above $6,600
$1 for each $2 of earnings above $6,960
$1 for each $2 of earnings above $7,320
$1 for each $2 of earnings above $7,800
$1 for each $2 of earnings above $8,160
$1 for each $2 of earnings above $8,400
$1 for each $2 of earnings above $8,880
$1 for each $3 of earnings above exempt amount
$1 for each $3 of earnings above $9,360
$1 for each $3 of earnings above $9,720
$1 for each $3 of earnings above $10,200
$1 for each $3 of earnings above $10,560
$1 for each $3 of earnings above $11,160
$1 for each $3 of earnings above $11,280
$1 for each $3 of earnings above $12,500
$1 for each $3 of earnings above $13,500
$1 for each $3 of earnings above $14,500
$1 for each $3 of earnings above $15,500
(Continued)

2.40 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Effect of Current Earnings and Taxation of Benefits
Table 2.A29—Earnings (retirement) test, by year enacted—Continued

Year
enacted

Effective
year

Beneficiaries
exempt

Earnings
subject
to test

Amount permitted without
reduction in benefits
(exempt amount)
Annual
Monthly
earnings
wages b
(dollars)
(dollars)

Reduction in monthly benefit a
f

For beneficiaries who have reached full retirement age (cont.)
2000

2000

...

EARNINGS
TEST
ELIMINATED k

...

...

...

For beneficiaries who will not reach full retirement age during year f
2000

2000
2001
2002
2003

...

...

e
10,080
e
10,680
e 11,280
e

e
e
e

11,520

840
890
940
960

$1 for each $2 of earnings above $10,080
$1 for each $2 of earnings above $10,680
$1 for each $2 of earnings above $11,280
$1 for each $2 of earnings above $11,520

For beneficiaries who will reach full retirement age during year f
2000

2000
2001
2002
2003

...

...

17,000
25,000
30,000
30,720

l
m

1,416.67
2,083.33
2,500.00
2,560.00

$1 for each $3 of earnings above $17,000
$1 for each $3 of earnings above $25,000
$1 for each $3 of earnings above $30,000
$1 for each $3 of earnings above $30,720

a. Earnings of retired-worker beneficiary affect total monthly family benefit. Earnings of dependent or survivor beneficiary affect only his or her benefit. However, effective
January 1985, earnings of retired-worker beneficiary do not affect benefit to divorced spouse who has been divorced at least 2 years. Effective for benefits after December
1990, the 2-year requirement is waived, if the worker was entitled to benefits before the divorce.
b. Monthly test for self-employment income is defined in terms of substantial services. For taxable years beginning after December 31, 1977, monthly test eliminated for both
wage and self-employment income except that each individual may use monthly test for 1 grace year, usually the year of retirement.
c. Applied to self-employment income only.
d. Special provisions for earnings in noncovered employment outside the United States.
e. Became effective due to automatic adjustment provisions mandated by 1972 and 1973 legislation.
f. Full retirement age is 65 for beneficiaries who attain age 62 (age 60 for widow(er)s) before 2000, gradually increasing to age 67 for beneficiaries who attain age 62 in 2022
or later.
g. Discretionary increase included in 1977 legislation.
h. Actual amount is $1,041.66 2/3.
i. Actual amount is $1,208.33 1/3.
j. Actual amount is $1,291.66 2/3.
k. Public Law 106-182, enacted April 7, 2000, eliminated the earnings test beginning with the month a beneficiary reaches full retirement age (FRA). The annual earnings test
that applies in the year of attainment of FRA is based on the annual limits established under P.L. 104-121 (including the $1 for $3 withholding rate). In determining annual
earnings for purposes of the annual earnings test under this legislation, only earnings before the month of attainment of FRA will be considered. Public Law 106-182 did not
change the annual exempt amount for beneficiaries who are under FRA throughout the year, which continues to be pegged to increases in the average wage.
l. Actual amount is $1,416.66 2/3.
m. Actual amount is $2,083.33 1/3.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 2.41

2.A OASDI: Effect of Current Earnings and Taxation of Benefits
Table 2.A30—Monthly earnings guidelines for substantial gainful activity, 1961–2003 (in dollars)
Year

Nonblind beneficiaries a
Minimum

Maximum

Blind beneficiaries

b

cc

1961–1965
1966–June 1968
July 1968–1973
1974–1975

50
75
90
130

100
125
140
200

1976
1977
1978
1979

150
160
170
180

230
240
260
280

1980
1981
1982
1983–1989

190
190
190
190

300
300
300
300

417
459
500

1990
1991
1992
1993
1994

300
300
300
300
300

500
500
500
500
500

780
810
850
880
930

1995
1996
1997

300
300
300

500
500
500

940
960
1,000

1998
January–June 1999
July 1999

300
300
300

500
500
700

1,050
1,110
1,110

January 2000
January 2001
January 2002
January 2003

300
300
300
300

700
740
780
e
800

1,170
1,240
1,300
f
1,330

c
c
c
c
c

334
375

d

a. Earnings above the maximum amount ordinarily demonstrate SGA; earnings below the minimum amount show that SGA has not occurred. When earnings are between the
minimum and maximum, other factors are considered.
b. The 1977 amendments provided that, effective 1978, earnings of blind beneficiaries would be evaluated under different SGA guidelines than nonblind beneficiaries.
c. Pre-1978 guidelines are the same as those applicable to nonblind beneficiaries.
d. Annual amounts were determined by automatic adjustments linked to increases in average wage level. The amounts equal the monthly exempt amounts under the earnings
test applicable to beneficiaries who have reached full retirement age (see Table 2.A29 for the 1983–1995 amounts).
e. Computed as follows: Nonblind SGA amount for 2000, multiplied by the ratio of the 2001 national average wage index to the 1998 index. Rounding is to the nearest multiple
of $10. (Had this computation produced a lower SGA level than the 2002 level, the 2002 level would have been used.)
f. Computed as follows: Blind SGA amount for 1994, multiplied by the ratio of the 2001 national average wage index to the 1992 index. Rounding is to the nearest multiple of
$10. (Had this computation produced a lower SGA level than the 2002 level, the 2002 level would have been used.)
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, “Cost-of-Living Increase and Other Determinations for 2003,” Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTES: Earnings are net of any wage subsidies and impairment–related expenses.
SGA guidelines for self-employed individuals differ from the guidelines for wage earners.
Self-employment activity is generally examined in terms of time spent and degree of effort, as compared with that of nondisabled self-employed individuals.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.42 ♦ Annual Statistical Supplement, 2003

2.A OASDI: Effect of Current Earnings and Taxation of Benefits
Table 2.A31—Taxation of Social Security benefits

Year enacted

Individuals or couples with
income exceeding
(dollars)—

Effective for
taxable years—

Benefits included in gross income
Married filing jointly

1983

32,000

Lesser of one-half of Social Security and Tier 1 Railroad Retirement benefits or one-half of
income over 32,000

Ending after
December 31, 1983

1993

32,000 but not 44,000

Lesser of one-half of Social Security and Tier 1 Railroad Retirement benefits or one-half of
income over 32,000

Beginning after
December 31, 1993

Lesser of 85 percent of Social Security and Tier 1 Railroad Retirement benefits or the sum of
6,000 plus 85 percent of income over 44,000

Beginning after
December 31, 1993

44,000

Married filing separate returns a
1983

0

Lesser of one-half of Social Security and Tier 1 Railroad Retirement benefits or one-half of
income

Ending after
December 31, 1983

1993

0

Lesser of 85 percent of Social Security and Tier 1 Railroad Retirement benefits or 85 percent
of income

Beginning after
December 31, 1993

1983

25,000

Lesser of one-half of Social Security and Tier 1 Railroad Retirement benefits or one-half of
income over 25,000

Ending after
December 31, 1983

1993

25,000 but not 34,000

Lesser of one-half of Social Security and Tier 1 Railroad Retirement benefits or one-half of
income over 25,000

Beginning after
December 31, 1993

Lesser of 85 percent of Social Security and Tier 1 Railroad Retirement benefits or 85 percent
of income over 34,000

Beginning after
December 31, 1993

Individuals in all other filing categories

34,000

a. Includes only married taxpayers filing separately who lived with their spouse at any time during the tax year; married individuals filing separately who did not live with their
spouse are treated the same as unmarried individuals.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Taxation of Social
Security benefits is governed by the Internal Revenue Service Code. IRS describes the rules governing taxation of Social Security benefits in IRS publication 915, available at
http://www.irs.gov/pub/irs-pdf/p915.pdf.
NOTES: Income is defined as modified adjusted gross income, plus 50 percent of Social Security and Tier 1 Railroad Retirement benefits. Modified adjusted gross income is
adjusted gross income (before Social Security or Railroad Retirement benefits are considered), plus tax-exempt interest income, with further modification of adjusted gross
income in some cases involving certain tax provisions of limited applicability among the beneficiary population.
Social Security and Tier 1 Railroad Retirement benefits include workers’ compensation benefits to the extent they cause a reduction in Social Security or Tier 1 Railroad
Retirement disability benefits.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 2.43

2.A OASDI: Effect of Current Earnings and Taxation of Benefits
Table 2.A32—Taxation of Social Security benefits: Examples (in dollars)

Modified
adjusted
gross
income a
(A)

Amount of One-half of
benefits b
benefits b
(B)

(C)

Income
to be
compared
with base
amount
(D = A + C)

Relevant
base
amount c
(E)

Income in
excess of
base
amount

One-half
of excess

85 percent
of excess
income

Lower of
one-half
of benefits,
or one-half
of income
between
upper and
lower base
amounts

(F = D - E)

(G = F / 2)

(H = .85 F)

(I)

Taxable benefits included
in gross income
If income
exceeds upper
If income
base amount—
does not
lesser of
exceed upper
85 percent of
base
benefits or
amount—
one-half of
lesser of
income between
one-half of
base amounts
benefits or
plus 85 percent
one-half of
of income
85 percent income over
over upper
of benefits base amount
base amount
(K = lesser
(L = lesser
(J = .85 B)
of C or G)
of J or I + H)

Married filing jointly
25,000
28,000
33,000
38,000
40,000
43,000
45,000

10,000
10,000
10,000
10,000
10,000
10,000
10,000

5,000
5,000
5,000
5,000
5,000
5,000
5,000

30,000
33,000
38,000
43,000
45,000
48,000
50,000

32,000
32,000
32,000
32,000
44,000
44,000
44,000

0
1,000
6,000
11,000
1,000
4,000
6,000

...
500
3,000
5,500
...
...
...

...
...
...
...
850
3,400
5,100

...
...
...
...
5,000
5,000
5,000

...
...
...
...
8,500
8,500
8,500

...
500
3,000
5,000
...
...
...

...
...
...
...
5,850
8,400
8,500

0
0
0
0
0

5,100
5,100
5,100
5,100
5,100

...
...
...
...
...

2,550
4,250
5.100
5,100
5,100

...
...
...
4,000
4,000
4,000

...
...
...
6,800
6,800
6,800

...
2,000
4,000
...
...
...

...
...
...
5,700
6,800
6,800

Married filing separate returns d
0
2,000
4,000
10,000
20,000

6,000
6,000
6,000
6,000
6,000

3,000
3,000
3,000
3,000
3,000

3,000
5,000
7,000
13,000
23,000

0
0
0
0
0

20,000
25,000
30,000
32,000
35,000
40,000

8,000
8,000
8,000
8,000
8,000
8,000

4,000
4,000
4,000
4,000
4,000
4,000

24,000
29,000
34,000
36,000
39,000
44,000

25,000
25,000
25,000
34,000
34,000
34,000

3,000
5,000
7,000
13,000
23,000

...
...
...
...
...

2,550
4,250
5,950
11,050
19,550

Individuals in all other filing categories
0
4,000
9,000
2,000
5,000
10,000

...
2,000
4,500
...
...
...

...
...
...
1,700
4,250
8,500

a. Adjusted gross income (before Social Security or Railroad Retirement benefits are considered), plus tax-exempt interest income, with further modification of adjusted gross
income in some cases involving certain tax provisions of limited applicability among the beneficiary population.
b. Social Security and Tier 1 Railroad Retirement benefits, including workers' compensation benefits to the extent they cause a reduction in either of these two types of
benefits.
c. For married couples filing joint returns, up to 50 percent of benefits are subject to income tax if gross income is over $32,000 but less than $44,000. If gross income is less
than $32,000, none of the Social Security benefits will be taxable. If gross income exceeds $44,000, up to 85 percent of Social Security benefits will be taxable income.
Similar lower and upper level thresholds or “base amounts” for single individuals are $25,000 and $34,000. There is no similar threshold or base amount for married
individuals who live together but file separate returns (for example, up to 85 percent of Social Security benefits in those cases may be considered taxable income).
d. Includes only married taxpayers filing separately who lived with their spouse at any time during the tax year; married individuals filing separately who did not live with their
spouse are treated the same as unmarried individuals.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Taxation of Social
Security benefits is governed by the Internal Revenue Service Code. IRS describes the rules governing taxation of Social Security benefits in IRS publication 915, available at
http://www.irs.gov/pub/irs-pdf/p915.pdf.
NOTE: . . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210 or Joseph Bondar (410) 965-0162.

2.44 ♦ Annual Statistical Supplement, 2003

2.B SSI: History of Provisions
Table 2.B1—Federal benefit rates, by living arrangement, 1974–2003
Act

Amount a (dollars)
Individual

Effective date

Couple

Own household b
1972
1973
1973
1974 d

January 1, 1974 c
January 1, 1974
July 1, 1974
July 1, 1975
July 1, 1976
July 1, 1977
July 1, 1978
July 1, 1979
July 1, 1980
July 1, 1981
July 1, 1982

1983

July 1, 1983 e
January 1, 1984
January 1, 1985
January 1, 1986
January 1, 1987
January 1, 1988
January 1, 1989
January 1, 1990
January 1, 1991
January 1, 1992
January 1, 1993
January 1, 1994
January 1, 1995
January 1, 1996
January 1, 1997
January 1, 1998
January 1, 1999
January 1, 2000
January 1, 2001
January 1, 2002
January 1, 2003

130.00
140.00
146.00
157.70
167.80
177.70
189.40
208.20
238.00
264.70
284.30

195.00
210.00
219.00
236.60
251.80
266.70
284.10
312.30
357.00
397.00
426.40

304.30
314.00
325.00
336.00
340.00
354.00
368.00
386.00
407.00
422.00
434.00
446.00
458.00
470.00
484.00
494.00
500.00
f 513.00
f 531.00
545.00
552.00

456.40
472.00
488.00
504.00
510.00
532.00
553.00
579.00
610.00
633.00
652.00
669.00
687.00
705.00
726.00
741.00
751.00
769.00
796.00
817.00
829.00

Receiving institutional care covered by Medicaid g
1972
1987

January 1, 1974
July 1, 1988

25.00
30.00

50.00
60.00

a.
b.
c.
d.
e.
f.

For those without countable income. These payments are reduced by the amount of countable income of the individual or couple.
Includes persons in private institutions whose care is not provided by Medicaid.
Superseded by 1973 provision.
Mechanism established for providing cost-of-living adjustments.
General benefit increase.
Benefits originally paid in 2000 and through July 2001 were based on federal benefit rates of $512.00 and $530.00, respectively. Pursuant to P.L. 106-554, monthly
payments beginning in August 2001 were effectively based on the higher $531 amount. Lump-sum compensation payments were made based on an adjusted benefit rate
for months prior to August 2001.
g. Must be receiving more than 50 percent of the cost of the care from Medicaid (Title XIX of the Social Security Act).
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings).
Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at http://www.socialsecurity.gov/regulations/index.htm. Social Security
Administration, Office of the Chief Actuary, “SSI Federal Payment Amounts,” http://www.socialsecurity.gov/OACT/COLA/SSIamts.html.
NOTE: For those in another person’s household receiving support and maintenance there, the federal benefit rate is reduced by one-third.
CONTACT: Alfreda Brooks (410) 965-9849.

Annual Statistical Supplement, 2003 ♦ 2.45

2.C Medicare: History of Provisions
Table 2.C1—Medicare cost sharing and premium amounts, 1966–2004

Effective date

a

Hospital Insurance
All expenses in “benefit period” covered except—
Inpatient hospital
Inpatient
Skilled nursing
daily coinsurance
hospital
facility daily
Days 61
Lifetime
deductible
coinsurance
(IHD) covers through 90 reserve days
after 20 days
first 60 days (1/4 X IHD) after 90 days
(1/8 X IHD)
(dollars)
(1/2 X IHD)
(dollars)
(dollars)

1966
1967
1968
1969

40
40
40
44

10
10
10
11

1970
1971
1972
1973
1974

52
60
68
72
84

1975
1976
1977
1978
1979

dd
d

Monthly
premium b
(dollars)

d

20
22

5.00
5.00
5.50

...
...
...
...

13
15
17
18
21

26
30
34
36
42

6.50
7.50
8.50
9.00
10.50

92
104
124
144
160

23
26
31
36
40

46
52
62
72
80

1980
1981
1982
1983
1984

180
204
260
304
356

45
51
65
76
89

1985
1986
1987
1988
1989

400
492
520
540
l 560

1990
1991
1992
1993
1994

Supplementary Medical Insurance
Monthly premium (dollars)
Government
amounts for—
For
Annual
enrollee c
(aged and
deductible Coinsurance
Aged Disabled c
disabled)
(dollars)
(percent)
50
50
50
50

e

20
20
20
20

...
...
...
33
36

50
50
50
60
60

g

20
20
20
20
20

11.50
13.00
15.50
18.00
20.00

40
45
54
63
69

60
60
60
60
60

90
102
130
152
178

22.50
25.50
32.50
38.00
44.50

78
89
113
113
155

100
123
130
135

200
246
260
270

50.00
61.50
65.00
67.50
m 25.50

174
214
226
234
156

592
628
652
676
696

148
157
163
169
174

296
314
326
338
348

74.00
78.50
81.50
84.50
87.00

1995
1996
1997
1998
1999

716
736
760
764
768

179
184
190
191
192

358
368
380
382
384

89.50
92.00
95.00
95.50
96.00

2000
2001
2002
2003
2004

776
792
812
840
876

194
198
203
210
219

388
396
406
420
438

97.00
99.00
101.50
105.00
109.50

l

l

3.00
3.00
4.00
4.00

...
...
...
...

5.30
5.60
5.80
h i h 6.30
6.70

5.30
5.60
5.80
6.30
6.70

...
...
...
22.70
29.30

20
20
20
20
20

6.70
7.20
7.70
8.20
8.70

8.30
14.20
16.90
18.60
18.10

30.30
30.80
42.30
41.80
41.30

20
20
20
20
20

9.60
11.00
12.20
12.20
14.60

23.00
34.20
37.00
41.80
43.80

41.40
62.20
72.00
80.00
94.00

75
75
75
75
75

20
20
20
20
20

15.50
15.50
17.90
24.80
n 31.90

46.50
46.50
53.70
74.40
83.70

89.90
66.10
88.10
72.40
40.70

175
177
192
221
o
245

75
100
100
100
100

20
20
20
20
20

28.60
29.90
31.80
36.60
41.10

85.80
95.30
89.80
104.40
82.50

59.60
82.10
129.80
129.20
111.10

o 261
o 289
o
311
o 309
o 309

100
100
100
100
100

20
20
20
20
20

46.10
42.50
43.80
43.80
45.50

100.10
127.30
131.40
132.00
139.10

165.50
167.70
177.00
150.40
160.50

o
o
o
o
o

100
100
100
100
100

20
20
20
20
20

45.50
50.00
54.00
58.70
66.60

138.30
152.00
164.60
178.70
199.80

196.70
214.40
192.20
223.30
284.40

301
300
319
316
343

e

i,j
k

60
60
75
75
75

j
k

f

3.00
3.00
4.00
4.00

f

a. The HI and SMI deductible and coinsurance amounts begin in January unless otherwise noted. The HI and SMI monthly premium amounts were effective in July
through 1983 and in January for 1984 and succeeding years.
b. Premium paid for voluntary participation of individuals aged 65 or older not otherwise entitled to Hospital Insurance and of certain disabled individuals who have
exhausted other entitlement.
c. Beginning in July 1973 for the disabled.
d. Benefit not provided.
e. Professional inpatient services of pathologists and radiologists not subject to deductible or coinsurance, beginning in April 1968.
f. Beginning in April 1968.
g. Home health services not subject to coinsurance, beginning in January 1973.
h. Monthly premium for July and August 1973 was reduced to $5.80 and $6.10, respectively, by the Cost of Living Council.
i. Home health services not subject to deductible.
j. Professional inpatient services of pathologists and radiologists not subject to deductible or coinsurance, beginning in April 1968, but only when physician accepts
assignment.
k. Effective October 1, 1982, professional inpatient services of pathologists and radiologists are subject to deductible and coinsurance.
l. Unlike all other years, the 1989 deductible was applied on an annual, rather than a benefit period, basis. Once the deductible was paid by the beneficiary, Medicare
paid the balance of expenses for covered hospital services, regardless of the number of days of hospitalization (except for psychiatric hospital care, which was still
limited by the 190-day lifetime maximum).
m. The coinsurance amount in 1989 was equal to 20 percent of the estimated national average daily cost of covered skilled nursing facility care, rather than 1/8 of the
inpatient hospital deductible. The beneficiary paid the coinsurance amount for the first 8 days of care in 1989, rather than for days of care 21 to 100 in a benefit period
as in all other years. Skilled nursing facility benefits were available for up to 150 days of care per year in 1989, rather than for up to 100 days of care per benefit period
as in all other years.
n. Includes the standard monthly SMI premium and a supplemental monthly flat premium under the Medicare Catastrophic Coverage Act of 1988. Amount shown is for
most Part B enrollees. Residents of Puerto Rico and other territories and commonwealths, as well as persons enrolled in Part B only, paid different supplemental flat
premiums resulting in a smaller premium than that shown.
o. A reduced premium is available to individuals aged 65 or older who are not otherwise entitled to HI but who have (or who were married to, widowed, or divorced from
a spouse for certain periods of time who has or had) at least 30 quarters of Social Security coverage. The reduced premium is $184, $183, $188, $187, $170, $170,
$166, $165, $175, $174, and $189 for 1994 to 2004, respectively.
SOURCE: Centers for Medicare & Medicaid Services.
NOTE: . . . = not applicable.
CONTACT: Clare McFarland (410) 786-6390 or Rita DiSimone (202) 358-6221.

2.46 ♦ Annual Statistical Supplement, 2003

2.C Medicaid: History of Provisions
Table 2.C2—Federal medical assistance percentage and enhanced federal medical assistance percentage, by
state or other area, 2002–2004
State or area

Federal medical assistance percentage a
2002 c
2003 d

2004 e

Enhanced federal medical assistance percentage b
2003
2004

Alabama
Alaska
Arizona
Arkansas
California

70.45
53.01
64.98
72.64
51.40

70.60
58.27
67.25
74.28
50.00

70.75
58.39
67.62
74.67
50.00

79.42
70.79
77.08
82.00
65.00

79.53
70.87
77.08
82.27
65.00

Colorado
Connecticut
Delaware
District of Columbia
Florida

50.00
50.00
50.00
70.00
56.43

50.00
50.00
50.00
70.00
58.83

50.00
50.00
50.00
70.00
58.93

65.00
65.00
65.00
79.00
71.18

65.00
65.00
65.00
79.00
71.25

Georgia
Hawaii
Idaho
Illinois
Indiana

59.00
56.34
71.02
50.00
62.04

59.60
58.77
70.96
50.00
61.97

59.58
58.90
70.46
50.00
62.32

71.72
71.14
79.67
65.00
73.38

71.71
71.23
79.32
65.00
73.62

Iowa
Kansas
Kentucky
Louisiana
Maine

62.86
60.20
69.94
70.30
66.58

63.50
60.15
69.89
71.28
66.22

63.93
60.82
70.09
71.63
66.01

74.45
72.11
78.92
79.90
76.35

74.75
72.57
79.06
80.14
76.21

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

50.00
50.00
56.36
50.00
76.09

50.00
50.00
55.42
50.00
76.62

50.00
50.00
55.89
50.00
77.08

65.00
65.00
68.79
65.00
83.63

65.00
65.00
69.12
65.00
83.96

Missouri
Montana
Nebraska
Nevada
New Hampshire

61.06
72.83
59.55
50.00
50.00

61.23
72.96
59.52
52.39
50.00

61.47
72.85
59.89
54.93
50.00

72.86
81.07
71.66
66.67
65.00

73.03
81.00
71.92
68.45
65.00

New Jersey
New Mexico
New York
North Carolina
North Dakota

50.00
73.04
50.00
61.46
69.87

50.00
74.56
50.00
62.56
68.36

50.00
74.85
50.00
62.85
68.31

65.00
82.19
65.00
73.79
77.85

65.00
82.40
65.00
74.00
77.82

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

58.78
70.43
59.20
54.65
52.45

58.83
70.56
60.16
54.69
55.40

59.23
70.24
60.81
54.76
56.03

71.18
79.39
72.11
68.28
68.78

71.46
79.17
72.57
68.33
69.22

South Carolina
South Dakota
Tennessee
Texas
Utah

69.34
65.93
63.64
60.17
70.00

69.81
65.29
64.59
59.99
71.24

69.86
65.67
64.40
60.22
71.72

78.87
75.70
75.21
71.99
79.87

78.90
75.97
75.08
72.15
80.20

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

63.06
51.45
50.37
75.27
58.57
61.97

62.41
50.53
50.00
75.04
58.43
61.32

61.34
50.00
50.00
75.19
58.41
59.77

73.69
65.37
65.00
82.53
70.90
72.92

72.94
65.00
65.00
82.63
70.89
71.84

Outlying areas
American Samoa
Guam
Northern Mariana Islands
Puerto Rico
Virgin Islands

f

50.00

f
50.00
f
50.00
f 50.00
f

50.00

f
f
f
f
f

50.00
50.00
50.00
50.00
50.00

f
f
f
f
f

f
f
f
f
f

50.00
50.00
50.00
50.00
50.00

65.00
65.00
65.00
65.00
65.00

f
f
f
f
f

65.00
65.00
65.00
65.00
65.00

a. Section 1905 (b) of the Social Security Act specifies the method to be used to compute the federal medical assistance percentage. From this section
the following formula is derived: N = 3-year average national per capita personal income; S = 3-year average state per capita personal income. Federal medical
assistance percentage: State share = (S2/N2) x 45 or (45/N2) x S2; Federal share = 100 - state share with 50–83 percent limits.
b. This is the Title XXI enhanced federal medical assistance percentage rate specified in section 2105(b) of the Act. The enhanced federal medical assistance
percentage is limited to no more than 85%.
c. Effective October 1, 2001, through September 30, 2002.
d. Effective October 1, 2002, through September 30, 2003.
e. Effective October 1, 2003, through September 30, 2004.
f. For purposes of section 1118 of the Social Security Act, the federal medical assistance percentage used under titles I, X, XIV, and XVI, and part A of title IV will be
75%.
SOURCE: Department of Health and Human Services, Office of the Assistant Secretary for Planning and Evaluation.
CONTACT: Adelle Simmons (202) 401-6119.

Annual Statistical Supplement, 2003 ♦ 2.47

2.F SSA Administrative Data: Offices and Staff
Table 2.F1—Number of SSA offices, 2002
Office

Number

Headquarters (Baltimore, Maryland)

1

Regional offices a

10

Field offices b
Level 1
Level 2
Resident stations
Teleservice centers

1,336
612
674
50
36

Program service centers c

6

Data operations center d

1

Office of Hearings and Appeals
Headquarters (Falls Church, Virginia)
Regional offices
Hearing offices
Satellite offices

1
10
138
4

a. Regional offices are located in Boston, Massachusetts; New York, New York; Philadelphia, Pennsylvania; Atlanta, Georgia; Chicago, Illinois; Dallas, Texas; Kansas City,
Missouri; Denver, Colorado; San Francisco, California; and Seattle, Washington.
b. In December 1997, the field offices were redesignated as Level 1, 2, or resident stations depending on the characteristics of the facility, service area, and other conditions.
c. Program service centers are located in Jamaica, New York; Philadelphia, Pennsylvania; Birmingham, Alabama; Chicago, Illinois; Kansas City, Missouri; and Richmond,
California.
d. The data operations center is located in Wilkes-Barre, Pennsylvania.
SOURCES: Social Security Administration, Office of Public Service and Operations Support’s database and Office of Hearings and Appeals Case Control System.
CONTACT: Harold Atkins for SSA data (410) 965-2367 and Leola Britford for Office of Hearings and Appeals data (703) 605-8219.

Table 2.F2—Number of SSA employees and percentage with selected characteristics by grade,
September 30, 2002
Characteristic

All grade levels

GS 1–4

GS 5–8

63,661

1,072

20,383

GS 9–12

GS 13–15

SES

32,623

7,995

124

Number
Total a

Percentage of total
Women

70.8

76.9

80.9

72.2

49.2

33.9

Minorities
Black
Hispanic
Asian or Pacific Islander
American Indian or Alaska Native

42.7
27.2
11.2
3.1
1.2

50.1
43.4
4.7
1.5
0.6

56.4
35.1
15.7
4.3
1.3

39.1
24.7
10.4
2.7
1.2

25.3
17.1
5.0
2.0
1.1

33.1
23.4
8.9
0.8
0.0

2.3

10.2

4.0

1.4

0.8

0.8

Severely disabled
a. Includes all full-time and part-time permanent employees.
SOURCE: Social Security Administration’s Affirmative Employment Plan.
CONTACT: Nelson Izquierdo (410) 965-4364.

Table 2.F3—Number of work years, fiscal years 1993–2002
Year

Full-time permanent staff a

Total work years b

1993
1994

61,640
62,434

66,623
66,741

1995 c
1996
1997
1998
1999

62,504
62,133
61,224
59,943
59,752

67,063
66,726
69,378
67,210
66,459

2000
2001
2002

60,434
61,490
61,914

65,521
65,562
65,742

a. On duty at end of fiscal year; includes seasonal employees.
b. Includes full-time, part-time, and temporary employees; employees in special programs; and overtime hours worked.
c. Includes 1,055 positions that were transferred from the Department of Health and Human Services to SSA when SSA became an independent agency
(under P.L. 103-296, Social Security Independence and Program Improvements Act of 1994, effective March 31, 1995).
SOURCE: Social Security Administration’s Payroll Reports.
CONTACT: Donna Frocke (410) 965-3094.

2.48 ♦ Annual Statistical Supplement, 2003

2.F SSA Administrative Data: Claims Workloads
Table 2.F4—Number of Old-Age and Survivors Insurance claims, fiscal year 2002 (in thousands)
Workload
Beginning-of-year pending
Received
Processed a
End-of-year pending

Total

Worker

Family members
and survivors

122.4
3,213.7
3,266.3
69.8

48.1
1,736.9
1,755.9
29.1

74.3
1,476.8
1,510.4
40.7

a. See Table 6.A1 for data on number of awards.
SOURCES: Office of Systems’ Integrated Work Measurement System and the Office of Disability Operations, Division of Direct Service Operations Report.
NOTE: Before fiscal year 2001, the number of claims were from SSA field offices only, but they now come from all offices.
CONTACT: Shirley Hodges (410) 965-0635.

Table 2.F5—Number of Disability Insurance claims, fiscal year 2002 (in thousands)
Workload
Beginning-of-year pending
Received
Processed a
End-of-year pending

Total

Worker

Family members
and survivors

482.3
1,986.6
1,985.6
483.3

458.0
1,745.4
1,738.9
464.5

24.3
241.2
246.7
18.8

a. See Table 6.A1 for data on number of awards.
SOURCES: Office of Systems’ Integrated Work Measurement System and Office of Disability Operations, Division of Direct Service Operations Report.
NOTE: Before fiscal year 2001, the number of claims were from SSA field offices only, but they now come from all offices.
CONTACT: Shirley Hodges (410) 965-0635.

Table 2.F6—Number of Supplemental Security Income claims, fiscal year 2002 (in thousands)
Workload
Beginning-of-year pending
Received
Processed a
End-of-year pending

Total

Aged

Blind or disabled

425.0
2,010.6
1,979.8
455.8

4.1
169.0
167.9
5.2

420.9
1,841.6
1,811.9
450.6

a. See Table 7.A8 for data on number of awards.
SOURCES: Office of Systems’ Integrated Work Measurement System and Office of Disability Operations, Division of Direct Service Operations Report.
NOTE: Before fiscal year 2001, the number of claims were from SSA field offices only, but they now come from all offices.
CONTACT: Shirley Hodges (410) 965-0635.

Annual Statistical Supplement, 2003 ♦ 2.49

2.F SSA Administrative Data: Service Delivery
Table 2.F7—Accuracy rates and use of 800 telephone number, fiscal years 1998–2002
Item

1998

1999

2000

2001

2002

Accuracy rates (percent)
OASI payments
Index of dollar accuracy
Payment review/stewardship results
Excess payments
Underpayments

99.8

99.6

99.6

99.9

a

99.9
99.9

99.8
99.9

99.9
99.9

99.9
99.8

a
a

SSI payments b
Index of dollar accuracy c
Payment review/stewardship results d
Excess payments
Underpayments

93.9

94.2

94.0

91.4

a

93.5
98.8

94.3
98.3

94.7
98.6

93.3
98.8

a
a

Disability Insurance benefits e
Initial claims
Allowances
Denials
Reconsideration
Reversals of denials
Affirmations of denials

93.7
96.1
92.3
91.6
95.6
90.9

94.3
96.5
93.0
92.3
96.0
91.6

94.2
97.0
92.4
92.2
96.9
91.3

93.9
96.8
92.0
91.0
96.8
89.9

94.2
97.1
92.4
90.5
95.9
89.4

Number of calls received (millions)
Average time calls answered (minutes)

78.9
2.7

74.8
2.8

62.3
4.7

National 800 number network (1-800-772-1213)

a.
b.
c.
d.
e.

78.7
2.0

76.3
2.5

Data not available.
Excludes determinations of disability.
Prior to fiscal year 1999, percentages exclude errors of less than $5. Any payments to ineligible beneficiaries are included regardless of the dollar amount of the error.
Beginning with fiscal year 2000, the SSI payment review/stewardship results are reported as the percentage of payments free of preventable error.
Represents cases free of decisional and documentation errors.

SOURCE: Social Security Administration, Office of Finance, Assessment and Management, Office of Central Operations.
CONTACT: Bob Marks (410) 965-4527 or Phyllis Zemlak (410) 965-3073.

2.50 ♦ Annual Statistical Supplement, 2003

2.F SSA Administrative Data: Hearings and Appeals
Table 2.F8—Workload of SSA’s Administrative Law Judges (ALJs), fiscal years 2001–2003
Item
Number of ALJs
Average monthly hearing dispositions per ALJ
Average hearings pending per ALJ

2001

2002

2003 a

919
42
447

969
45
470

991
51
574

a. Estimated data.
SOURCES: Social Security Administration, Office of Hearings and Appeals. Actual data from the Key Workload Indicator Report. Estimated data from the Government
Performance and Results Act, Annual Performance Plan.
NOTE: Data based on Administrative Law Judges’ availability during fiscal year 2002; data excludes Regional Chief ALJs.
CONTACT: Beverly Nateghi (703) 605-8788.

Table 2.F9—Number of hearing receipts, dispositions, and end-of-year pending cases, fiscal years 2002–2003
Program
Total
OASI
Disability
DI
SSI
DI and SSI
Medicare (Parts A and B and adversarial)
Black Lung

Hearing receipts
2002

2003 a

Hearing dispositions
2002
2003 a

End-of-year pending cases
2002
2003 a

596,959

688,147

532,106

602,009

500,757

586,895

2,944

3,227

2,725

3,081

2,970

3,116

200,302
158,775
163,360
71,576
2

214,042
181,611
167,110
122,147
10

171,367
142,120
138,502
77,388
4

184,538
162,572
146,816
105,000
2

165,228
147,315
147,538
37,705
1

194,732
166,354
167,832
54,852
9

a. Estimated data.
SOURCES: Social Security Administration, Office of Hearings and Appeals. Actual data from the Key Workload Indicator Report. Estimated data from the Government
Performance and Results Act, Annual Performance Plan.
CONTACT: Beverly Nateghi (703) 605-8788.

Table 2.F11—Number of SSA Appeals Council cases, fiscal years 2001–2003
Cases
Beginning-of-year pending
Receipts
Dispositions
End-of-year pending

2001

2002

2003 a

127,190
78,833
110,668
95,355

92,185
83,063
115,467
59,781

59,781
99,045
99,045
59,781

a. Estimated data.
SOURCES: Social Security Administration, Office of Hearings and Appeals. Actual data from the Key Workload Indicator Report. Estimated data from the Government
Performance and Results Act, Annual Performance Plan.
CONTACT: Beverly Nateghi (703) 605-8788.

Annual Statistical Supplement, 2003 ♦ 2.51

3.B Employment and Earnings
Table 3.B3—Federal minimum wage rates under the Fair Labor Standards Act of 1938 and average hourly
earnings and average weekly hours for production workers in manufacturing, selected years 1938–2002

Effective date
October 24
1938
1939
1945

Minimum hourly wage for workers
in jobs first covered by—
1966 and subsequent
amendments d
1961
b
c
Nonfarm
Farm
amendments
1938 act
(dollars)
(dollars)
(dollars)
(dollars)
0.25
0.30
0.40

...
...
...

...
...
...

...
...
...

Production workers
in manufacturing a
Average
gross hourly
earnings
(dollars)

Average
weekly
hours

0.62
0.63
1.02

35.6
37.7
43.5

January 25, 1950

0.75

...

...

...

1.44

40.5

March 1, 1956

1.00

...

...

...

1.95

40.4

September 3
1961
1963
1964
1965

1.15
1.25
1.25
1.25

1.00
1.00
1.15
1.25

...
...
...
...

...
...
...
...

2.32
2.46
2.53
2.61

39.8
40.5
40.7
41.2

February 1
1967
1968
1969
1970
1971

1.40
1.60
1.60
1.60
1.60

1.40
1.60
1.60
1.60
1.60

1.00
1.15
1.30
1.45
1.60

1.00
1.15
1.30
1.30
1.30

2.83
3.01
3.19
3.36
3.57

40.6
40.7
40.6
39.8
39.9

May 1, 1974

2.00

2.00

1.90

1.60

4.42

40.0

January 1
1975
1976
1977
1978
1979

2.10
2.30
2.30
2.65
2.90

2.10
2.30
2.30
2.65
2.90

2.00
2.20
2.30
2.65
2.90

1.80
2.00
2.20
2.65
2.90

4.83
5.22
5.68
6.17
6.70

39.5
40.1
40.3
40.4
40.2

1980
1981
1982
1983
1984

3.10
3.35
3.35
3.35
3.35

3.10
3.35
3.35
3.35
3.35

3.10
3.35
3.35
3.35
3.35

3.10
3.35
3.35
3.35
3.35

7.27
7.99
8.49
8.83
9.19

39.7
39.8
38.9
40.1
40.7

1985
1986
1987
1988
1989

3.35
3.35
3.35
3.35
3.35

3.35
3.35
3.35
3.35
3.35

3.35
3.35
3.35
3.35
3.35

3.35
3.35
3.35
3.35
3.35

9.54
9.73
9.91
10.19
10.48

40.5
40.7
41.0
41.1
41.0

April 1
1990 e
1991 e
1992 e
1993 e
1994
1995

3.80
4.25
4.25
4.25
4.25
4.25

3.80
4.25
4.25
4.25
4.25
4.25

3.80
4.25
4.25
4.25
4.25
4.25

3.80
4.25
4.25
4.25
4.25
4.25

10.83
11.18
11.46
11.74
12.07
12.37

40.8
40.7
41.0
41.4
42.0
41.6

October 1, 1996 e

4.75

4.75

4.75

4.75

12.77

41.6

September 1, 1997 e

5.15

5.15

5.15

5.15

13.17

42.0

January 1
1998 e
1999 e
2000 e
2001 e
2002 e

5.15
5.15
5.15
5.15
5.15

5.15
5.15
5.15
5.15
5.15

5.15
5.15
5.15
5.15
5.15

5.15
5.15
5.15
5.15
5.15

13.49
13.91
14.38
14.83
15.30

41.7
41.7
41.6
40.7
40.9

a. For year in which minimum wage rate changes were effective.
b. The 1938 act was applicable generally to employees engaged in interstate commerce or in the production of goods for interstate commerce.
c. The 1961 amendments extended coverage primarily to employees in large retail and service trades as well as local transit, construction, and gasoline service station
employees.
d. The 1966 amendments extended coverage to state and local government employees of hospitals, nursing homes, and schools, and to employees of laundries, dry cleaners,
large hotels and motels, restaurants, and farms. Subsequent amendments extended coverage to the remaining federal, state, and local employees not protected in 1966, to
certain workers in retail and service trades previously exempted, and to certain domestic workers in private household employment.
e. A training wage may be paid for a period of 90 days to an employee who has not attained age 20. The training wage was $3.35 per hour effective April 1, 1990, and $3.61
per hour effective April 1, 1991, through March 31, 1993. Effective October 1, 1996, the training wage is $4.25 per hour.
SOURCE: Department of Labor, Bureau of Labor Statistics.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153.

Annual Statistical Supplement, 2003 ♦ 3.1

3.C Interprogram Data
Table 3.C3—Contributions to the Social Security and Medicare trust funds, by program and source,
selected years 1965–2002 (in millions of dollars)
Program and source

1965

1970

1975

1980

1985

1990

1995

1998

1999

2000

2001

2002

Social Security trust funds
Old-Age and Survivors Insurance a
Employer
Employee
Self-employed
Taxation of benefits

16,017
7,618
7,440
959
...

30,257
14,489
14,204
1,564
...

56,815
27,184
26,947
2,684
...

103,456
49,731
49,436
4,289
...

178,010
83,682
83,400
7,720
3,208

270,507
125,272
124,481
15,906
4,848

309,906
143,978
143,335
17,103
5,490

380,113
176,564
174,786
19,614
9,149

407,023
188,461
187,160
20,503
10,899

432,977
200,431
198,736
22,216
11,594

453,354
210,659
207,999
22,793
11,903

468,108
215,897
215,039
24,262
12,909

Disability Insurance a
Employer
Employee
Self-employed
Taxation of benefits

1,188
564
551
73
...

4,481
2,154
2,117
210
...

7,444
3,562
3,530
352
...

13,255
6,307
6,254
694
...

17,204
8,119
8,087
776
222

28,498
13,414
13,338
1,602
144

54,695
25,665
25,545
3,144
341

59,485
28,064
27,772
3,091
558

63,827
29,936
29,730
3,500
661

71,813
33,971
33,701
3,420
721

75,743
35,759
35,312
3,861
811

78,202
36,655
36,503
4,114
930

Hospital Insurance a
Employer
Employee
Self-employed
Voluntarily insured b
Taxation of benefits

...
...
...
...
...
...

4,880
2,379
2,332
169
...
...

11,510
5,578
5,530
395
7
...

23,866
11,591
11,518
739
18
...

47,173
22,613
22,549
1,970
41
...

71,753
33,850
33,635
4,146
122
...

103,301
45,839
45,852
6,743
954
3,913

130,700
57,849
57,849
8,619
1,316
5,067

140,306
61,826
61,826
8,655
1,447
6,552

154,520
67,526
67,526
9,299
1,382
8,787

160,896
71,181
71,181
9,631
1,370
7,533

162,650
71,334
71,334
10,040
1,626
8,316

Supplementary Medical Insurance a ,c
Aged
Disabled

...
...
...

1,096
1,096
...

1,917
1,759
158

3,011
2,707
304

5,613
5,105
508

11,319
10,311
1,008

19,717
17,651
2,066

20,932
18,594
2,338

18,966
16,604
2,362

20,556
17,892
2,664

22,764
19,905
2,859

25,066
21,610
3,456

Medicare trust funds

a. For OASI, DI, and HI contribution rates and wage base, see Table 2.A3. Beginning in 1952 (1959 for DI, 1968 for HI) employer and employee contributions differ by
estimated amount of refunds of employee tax overpayments and, beginning in 1966, by employee tax on tips. For SMI premium rates, see Table 2.C1.
b. Beginning in July 1973, aged ineligibles may voluntarily enroll for HI.
c. Includes premiums paid on behalf of eligibles by state governments under “buy-in” arrangements.
SOURCE: Department of the Treasury.
NOTE: . . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

3.2 ♦ Annual Statistical Supplement, 2003

3.C Interprogram Data
Table 3.C4—Average monthly amount of Social Security and selected public assistance programs,
December 1950–2002 (in current and 2002 dollars)

Year

Average monthly Social Security benefit
in current-payment status
Widowed mother or father
Retired workers
and 2 children
Current
2002
Current
2002
dollars
dollars
dollars
dollars

Average monthly amount
per recipient under—
Temporary Assistance
for Needy Families c
Supplemental Security Income b
Current
2002
Current
2002
dollars
dollars
dollars
dollars

Consumer
price index a

1950
1951
1952
1953
1954

43.86
42.14
49.25
51.10
59.14

317.37
287.67
333.68
343.64
400.69

93.90
93.80
106.00
111.90
130.50

679.46
640.32
718.18
752.52
884.17

43.05
44.55
48.80
48.90
48.70

311.51
304.12
330.63
328.85
329.96

20.85
22.00
23.45
23.20
23.25

150.87
150.18
158.88
156.02
157.53

25.0
26.5
26.7
26.9
26.7

1955
1956
1957
1958
1959

61.90
63.09
64.58
66.35
72.78

417.83
413.51
411.36
415.32
447.82

135.40
141.00
146.30
151.70
170.70

913.95
924.16
931.89
949.57
1050.33

50.05
53.25
55.50
56.95
56.70

337.84
349.02
353.52
356.48
348.88

23.50
24.80
25.40
26.65
27.30

158.63
162.55
161.79
166.82
167.98

26.8
27.6
28.4
28.9
29.4

1960
1961
1962
1963
1964

74.04
75.65
76.19
76.88
77.57

449.46
456.17
453.38
450.08
449.76

188.00
189.30
190.70
192.50
193.40

1,141.25
1,141.48
1,134.79
1,126.97
1,121.35

58.90
57.60
61.55
62.80
63.65

357.55
347.33
366.26
367.65
369.05

28.35
29.45
29.30
29.70
31.50

172.10
177.58
174.35
173.87
182.64

29.8
30.0
30.4
30.9
31.2

1965
1966
1967
1968
1969

83.92
84.35
85.37
98.86
100.40

477.39
463.80
455.56
503.77
481.76

219.80
221.90
224.40
257.10
255.80

1,250.37
1,220.11
1,197.46
1,310.12
1,227.43

63.10
68.05
70.15
69.55
73.90

358.96
374.17
374.34
354.41
354.60

32.85
36.25
39.50
44.75
45.15

186.87
199.32
210.78
228.04
216.65

31.8
32.9
33.9
35.5
37.7

1970
1971
1972
1973
1974

118.10
132.17
162.35
166.42
188.21

536.79
581.74
691.04
651.63
656.02

291.10
320.00
383.10
391.00
438.40

1,323.12
1,408.47
1,630.65
1,530.99
1,528.06

77.65
77.50
79.95
76.15
91.06

352.94
341.11
340.30
298.17
317.39

50.30
52.30
54.10
56.95
63.37

228.62
230.20
230.28
222.99
220.88

39.8
41.1
42.5
46.2
51.9

1975
1976
1977
1978
1979

207.18
224.86
243.00
263.20
294.30

675.29
698.92
707.87
703.29
694.12

468.60
503.40
546.60
591.90
655.00

1,527.38
1,564.69
1,592.27
1,581.61
1,544.84

90.93
94.37
96.62
100.43
122.67

296.38
293.33
281.46
268.36
289.32

69.69
75.20
80.08
83.60
90.34

227.15
233.74
233.28
223.39
213.07

55.5
58.2
62.1
67.7
76.7

1980
1981
1982
1983
1984

341.40
385.97
419.30
440.77
460.57

715.63
742.79
777.17
787.12
791.24

759.20
858.00
885.50
923.00
948.30

1,591.42
1,651.19
1,641.26
1,648.28
1,629.13

128.20
137.81
145.69
157.89
157.88

268.73
265.21
270.03
281.96
271.23

97.10
103.15
106.33
109.93
114.72

203.54
198.51
197.08
196.31
197.08

86.3
94.0
97.6
101.3
105.3

1985
1986
1987
1988
1989

478.62
488.44
512.65
536.77
566.85

792.15
799.63
803.63
805.82
813.19

981.50
994.00
1,032.30
1,070.40
1,120.04

1,624.46
1,627.28
1,618.22
1,606.93
1,606.78

164.26
173.66
180.64
188.23
198.81

271.86
284.30
283.17
282.58
285.21

118.17
122.09
125.19
130.30
131.89

195.58
199.87
196.25
195.61
189.21

109.3
110.5
115.4
120.5
126.1

1990
1991
1992
1993
1994

602.56
629.32
652.64
674.06
697.34

814.67
825.55
832.01
836.33
842.68

1,177.70
1,216.76
1,252.40
1,282.60
1,328.40

1,592.27
1,596.17
1,596.61
1,591.37
1,605.26

212.66
221.30
227.39
236.52
242.54

287.52
290.31
289.89
293.46
293.09

135.96
134.98
132.92
132.87
133.71

183.82
177.07
169.45
164.86
161.58

133.8
137.9
141.9
145.8
149.7

1995
1996
1997
1998
1999

719.80
744.96
774.84
779.69
804.30

848.29
849.71
868.99
860.56
864.51

1,365.50
1,450.60
1,502.60
1,537.70
1,590.40

1,609.24
1,654.56
1,685.18
1,697.19
1,709.47

250.65
260.75
268.46
277.45
289.19

295.39
297.41
301.08
306.23
310.84

134.35
133.53
170.71
d 129.04
d 133.45

158.33
152.31
191.45
142.42
143.44

153.5
158.6
161.3
163.9
168.3

2000
2001
2002

844.48
874.44
895.00

877.97
895.22
895.00

1,675.40
1,755.10
1,812.10

1,741.84
1,796.82
1,812.10

299.69
314.22
330.04

311.57
321.69
330.04

d
d

157.29
161.24
167.86

174.0
176.7
180.9

d

151.29
157.50
167.86

a. Data from Bureau of Labor Statistics, consumer price index for all urban consumers (CPI-U) for all items (1982–1984 = 100).
b. For 1940–1973, data refer to Old-Age Assistance program. Beginning January 1974, the Supplemental Security Income program superseded the Old-Age Assistance
program in the 50 states and the District of Columbia.
c. Effective July 1, 1997, the Temporary Assistance for Needy Families (TANF) block grant program replaced the Aid to Families with Dependent Children (AFDC) program.
Beginning in 1997, payments include services.
d. Revised data.
SOURCES: Social Security Administration, Supplemental Security Record, and the Department of Health and Human Services, 100 percent data.
CONTACT: Stella M. Coleman (410) 965-0157.

Annual Statistical Supplement, 2003 ♦ 3.3

3.C Interprogram Data
Table 3.C5—Population aged 65 or older receiving Social Security (OASDI) benefits, Supplemental Security
Income (SSI) payments, or both, by state, December 1940–2002, selected years

Year and state

OASDI
Number
per 1,000
State rank

Population aged 65 or older receiving—
SSI a
Number
OASDI and SSI,
per 1,000
State rank number per 1,000

OASDI, SSI,
or both,
number per 1,000

Persons receiving both OASDI
and SSI as a percentage of—
OASDI
SSI
beneficiaries
recipients

1940
1945
1950
1955
1960

7
62
164
394
616

...
...
...
...
...

217
194
224
179
141

...
...
...
...
...

1
5
22
34
41

223
251
366
539
716

14.3
8.1
12.6
8.6
6.6

0.5
2.6
9.8
19.2
28.5

1965
1970
1975
1980
1985

752
855
904
914
917

...
...
...
...
...

117
104
111
87
71

...
...
...
...
...

52
63
78
61
51

817
896
939
941
937

7.0
7.4
8.6
6.7
5.5

44.7
60.4
69.5
70.2
71.1

1990
1995
2000
2001

924
913
911
908

...
...
...
...

66
63
57
56

...
...
...
...

46
39
34
33

944
937
934
931

4.9
4.3
3.7
3.6

69.2
62.6
59.1
58.4

2002
901

...

56

...

32

924

3.6

57.8

Alabama
Alaska
Arizona
Arkansas
California

United States

929
896
843
918
844

26
42
50
33
49

69
58
32
58
132

7
11
30
12
1

55
28
19
48
64

943
927
856
928
912

5.9
3.1
2.2
5.3
7.5

79.8
47.8
59.2
82.9
48.3

Colorado
Connecticut
Delaware
District of Columbia
Florida

905
945
944
794
855

39
11
13
51
48

31
26
23
68
47

31
37
41
9
19

18
12
15
41
24

918
959
952
821
878

2.0
1.3
1.6
5.2
2.8

58.2
47.1
66.2
60.7
51.3

Georgia
Hawaii
Idaho
Illinois
Indiana

913
883
962
917
949

35
46
4
34
10

68
50
20
38
17

10
17
44
24
49

49
21
15
16
12

932
912
966
939
954

5.4
2.4
1.6
1.8
1.2

72.9
42.2
75.8
42.3
69.4

Iowa
Kansas
Kentucky
Louisiana
Maine

958
935
928
904
952

7
24
27
40
9

17
19
70
78
31

48
45
6
4
32

12
12
52
58
26

962
941
946
925
957

1.3
1.3
5.6
6.4
2.7

72.1
63.8
74.1
74.0
82.2

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

876
908
954
942
924

47
37
8
16
28

40
56
30
26
102

23
13
34
38
2

19
32
17
13
82

897
932
966
955
944

2.2
3.5
1.8
1.4
8.9

48.4
56.5
58.8
50.7
80.2
(Continued)

3.4 ♦ Annual Statistical Supplement, 2003

3.C Interprogram Data
Table 3.C5—Population aged 65 or older receiving Social Security (OASDI) benefits, Supplemental Security
Income (SSI) payments, or both, by state, December 1940–2002, selected years—Continued

Year and state

OASDI
Number
per 1,000
State rank

Population aged 65 or older receiving—
SSI a
Number
OASDI and SSI,
per 1,000
State rank number per 1,000

OASDI, SSI,
or both,
number per 1,000

Persons receiving both OASDI
and SSI as a percentage of—
OASDI
SSI
beneficiaries
recipients

2002 (cont.)
Missouri
Montana
Nebraska
Nevada
New Hampshire

936
935
945
910
968

19
23
12
36
1

29
20
17
32
12

35
43
47
29
51

21
16
12
19
8

944
939
950
924
972

2.2
1.7
1.3
2.1
0.8

71.9
77.8
70.0
57.9
67.8

New Jersey
New Mexico
New York
North Carolina
North Dakota

921
883
884
943
941

31
45
44
15
17

45
69
90
54
22

22
8
3
16
42

20
47
41
42
16

945
904
932
955
947

2.2
5.3
4.6
4.4
1.7

45.5
68.9
45.7
78.1
75.0

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

935
922
965
935
921

21
29
3
22
32

24
38
28
34
49

39
25
36
28
18

14
28
16
21
31

945
931
976
948
939

1.5
3.0
1.6
2.2
3.3

60.0
73.6
57.5
61.8
62.1

South Carolina
South Dakota
Tennessee
Texas
Utah

921
959
939
887
903

30
6
18
43
41

55
30
55
74
19

14
33
15
5
46

43
21
42
51
9

934
968
952
911
913

4.7
2.1
4.5
5.7
1.0

78.0
68.8
76.3
68.3
49.8

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

944
907
935
929
966
961

14
38
20
25
2
5

36
46
36
46
23
16

26
21
27
20
40
50

29
29
14
32
15
12

950
924
957
943
974
964

3.1
3.2
1.5
3.5
1.6
1.3

82.0
62.7
38.6
70.0
65.8
80.2

a. For 1940–1973, data refer to Old-Age Assistance program. Beginning January 1974, the Supplemental Security Income program superseded the Old-Age Assistance
program in the 50 states and the District of Columbia.
SOURCES: Social Security Administration, Master Beneficiary Record and Supplemental Security Record, and the U.S. Census Bureau, 100 percent data.
NOTE: . . . = not applicable.
CONTACT: Stella M. Coleman (410) 965-0157.

Annual Statistical Supplement, 2003 ♦ 3.5

3.C Interprogram Data
Table 3.C6—Number and percentage of Social Security (OASDI) beneficiaries also receiving federally
administered Supplemental Security Income (SSI) payments, by type of OASDI benefit and SSI eligibility category,
December 2002
Number receiving SSI

Percentage of all OASDI beneficiaries
Blind and
Total
Aged
disabled

All
OASDI
beneficiaries a

Total

Aged

Blind and
disabled

46,452,540

2,410,290

713,740

1,696,550

5.2

1.5

3.7

Retirement
Workers aged 65 or older
Men
Women
Workers aged 62–64
Men
Women
Wives and husbands
Aged 65 or older
Aged 62–64
Under age 62 with children
Disabled adult children
Aged 65 or older
Aged 18–64
Children under age 18 and students aged 18–19

32,362,130
26,624,790
13,774,890
12,849,900
2,570,130
1,332,960
1,245,910
2,681,090
2,349,200
285,440
46,450
193,150
1,060
192,090
284,230

1,049,820
782,150
303,460
478,690
39,040
24,300
13,970
127,270
115,270
10,790
1,210
98,060
430
97,630
4,070

568,810
508,680
190,580
318,100
0
0
0
60,690
60,690
0
0
40
40
0
0

481,010
273,470
112,880
160,590
39,040
24,300
13,970
67,180
55,180
10,790
1,210
98,020
390
97,630
4,070

3.2
2.9
2.2
3.7
1.5
1.8
1.1
4.7
4.9
3.8
2.6
50.8
40.6
50.8
1.4

1.8
1.9
1.4
2.5
0
0
0
2.2
2.6
0
0
0
3.8
0
0

1.5
1.0
0.8
1.2
1.5
1.8
1.1
2.5
2.3
3.8
2.6
50.8
36.8
50.8
1.4

Survivors
Nondisabled widow(er)s
Aged 65 or older
Aged 60–64
Disabled widow(er)s
Widowed mothers and fathers
Parents
Disabled adult children
Aged 65 or older
Aged 18–64
Children under age 18 and students aged 18–19

6,870,200
4,563,660
4,110,180
453,480
205,870
193,270
2,350
494,750
64,550
430,200
1,410,300

467,580
245,830
238,420
7,410
37,540
5,220
130
157,920
21,390
136,230
20,940

143,980
140,930
140,930
0
0
50
120
2,880
2,880
0
0

323,600
104,900
97,490
7,410
37,540
5,170
10
155,040
18,810
136,230
20,940

6.8
5.4
5.8
1.6
18.2
2.7
5.5
31.9
33.6
31.7
1.5

2.1
3.1
3.4
0
0
0
5.1
0
4.5
0
0

4.7
2.3
2.4
1.6
18.2
2.7
0.4
31.3
29.1
31.7
1.5

Disability
Workers under age 65
Men
Women
Wives and husbands
Aged 65 or older
Aged 62–64
Under age 62 with children
Disabled adult children aged 18–64
Children under age 18 and students aged 18–19

7,220,210
5,535,860
3,069,140
2,466,720
151,260
22,200
29,600
99,460
60,760
1,472,330

892,890
798,740
354,730
444,010
10,880
3,110
1,890
5,880
41,830
41,440

950
0
0
0
950
950
0
0
0
0

891,940
798,740
354,730
444,010
9,930
2,160
1,890
5,880
41,830
41,440

12.4
14.4
11.6
18.0
7.2
14.0
6.4
5.9
68.8
2.8

0
0
0
0
0.6
4.3
0
0
0
0

12.4
14.4
11.6
18.0
6.6
9.7
6.4
5.9
68.8
2.8

Type of benefit
Total

a. Excludes 10 special age-72 beneficiaries.
SOURCE: Social Security Administration, Supplemental Security Record, 10 percent sample.
CONTACT: Paul Davies (410) 966-0299.

3.6 ♦ Annual Statistical Supplement, 2003

3.C Interprogram Data
Table 3.C6.1—Number of persons aged 18–64 receiving Social Security (OASDI) benefits or federally administered
Supplemental Security Income (SSI) payments based on disability, by type of benefit, December 1978–2002
OASDI beneficiaries
Disabled
Disabled
adult children
workers
under age 65

Blind or disabled SSI recipients
Receiving
Receiving
both SSI
Total
SSI only
and OASDI

Year

Unduplicated
total a

Total

1978
1979

4,676,450
4,662,528

3,415,469
3,419,624

2,879,774
2,870,590

405,944
419,201

129,751
129,833

1,747,126
1,726,553

b
1,260,981
b

486,145
483,649

1980
1981
1982
1983
1984

4,662,546
4,570,071
4,366,314
4,367,241
4,460,188

3,418,434
3,340,701
3,169,449
3,143,111
3,183,618

2,858,680
2,776,519
2,603,599
2,569,029
2,596,516

432,174
442,592
449,478
462,491
477,951

127,580
121,590
116,372
111,591
109,151

1,730,847
1,702,895
1,655,279
1,699,774
1,780,459

b 1,244,112
b
1,229,370
b
1,196,865
b 1,224,130
b

486,735
473,525
458,414
475,644
503,889

1985
1986
1987
1988
1989

4,591,316
4,812,143
4,904,785
5,012,435
5,155,787

3,258,200
3,346,603
3,416,529
3,468,186
3,540,480

2,656,638
2,728,463
2,785,859
2,830,284
2,895,364

494,557
511,166
524,388
534,779
543,486

107,005
106,974
106,282
103,123
101,630

1,879,168
2,010,458
2,118,710
2,202,714
2,301,926

b
1,333,116
b 1,465,540
b

1,488,256
1,544,249
1,615,307

546,052
544,918
630,454
658,465
686,619

1990
1991
1992
1993
1994

5,395,261
5,743,614
6,249,217
6,707,127
7,103,399

3,667,721
3,877,804
4,185,714
4,476,648
4,741,348

3,011,294
3,194,938
3,467,783
3,725,966
3,962,954

555,438
568,377
586,607
603,667
617,718

100,989
114,489
131,324
147,015
160,676

2,449,897
2,641,524
2,909,997
3,148,413
3,335,255

1,727,540
1,865,810
2,063,503
2,230,479
2,362,051

722,357
775,714
846,494
917,934
973,204

1995
1996
1997
1998
1999

7,398,942
7,691,134
7,818,216
8,090,686
8,311,949

4,987,004
5,205,071
5,340,082
5,543,886
5,736,071

4,185,263
4,385,623
4,508,134
4,698,319
4,879,455

628,717
637,537
644,010
651,386
657,821

173,024
181,911
187,938
194,181
198,795

3,482,256
3,568,393
3,561,625
3,646,020
3,690,970

2,411,938
2,486,063
2,478,134
2,546,800
2,575,878

1,070,318
1,082,330
1,083,491
1,099,220
1,115,092

2000
2001
2002

8,519,241
8,799,998
9,118,926

5,908,756
6,150,475
6,430,412

5,042,334
5,274,183
5,543,981

664,995
672,049
679,073

201,427
204,243
207,358

3,744,022
3,811,494
3,877,752

2,610,485
2,649,523
2,688,514

1,133,537
1,161,971
1,189,238

Disabled
widow(er)s

1,242,904

1,276,570

c

a. Includes persons receiving OASDI, SSI, or both.
b. The number of OASDI disabled adult child beneficiaries aged 18–64 also receiving SSI was estimated based on the number of such beneficiaries aged 18 or older for the
same year and on the comparative size of the two groups at the end of 1988.
c. December data for OASDI disabled beneficiaries also receiving SSI were not available. Instead, the average of the September 1989 and March 1990 numbers was used.
SOURCE: Social Security Administration, Master Beneficiary Record and Supplemental Security Record, 100 percent data.
CONTACT: Art Kahn (410) 965-0186.

Annual Statistical Supplement, 2003 ♦ 3.7

3.C Interprogram Data
Table 3.C7—Number of persons aged 15 or older with Social Security (OASDI) benefits or Supplemental Security
Income (SSI) in March 2002, by sex, age, and race, and average annual benefit in 2001
Sex and age

Total,
all races

Total

39,699

34,839

3,720

354

786

Men
Women

16,916
22,783

14,984
19,855

1,487
2,233

126
228

319
467

15–54
55–64
65–74
75 or older

4,347
4,928
15,922
14,502

3,357
4,251
14,010
13,220

811
525
1,425
959

98
53
125
77

82
98
361
245

White

Black

American Indian,
Alaska Native

Asian,
Pacific Islander

Social Security beneficiaries (thousands)

Sex

Age

Supplemental Security Income recipients (thousands)
Total

5,002

3,339

1,344

112

207

Men
Women

1,928
3,075

1,354
1,985

477
868

26
86

72
135

15–54
55–64
65–74
75 or older

2,806
987
635
575

1,834
677
436
392

849
237
140
118

72
23
11
6

52
50
48
58

8,599
5,273

8,772
6,074

Sex

Age

Average annual benefit in 2001 a (dollars)
Social Security
Supplemental Security Income

9,463
5,128

9,621
5,013

8,204
5,256

a. For 2001, average benefits are shown. Tables in previous years showed median benefits.
SOURCE: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement.
NOTES: Table includes civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see U.S. Census Bureau, Current Population Reports, Series P-60.
CONTACT: Curt Pauzenga (410) 965-7210.

3.8 ♦ Annual Statistical Supplement, 2003

3.C Interprogram Data
Table 3.C8—Number of persons aged 15 or older with Social Security (OASDI) benefits or Supplemental Security
Income (SSI) and number and percentage of Hispanic origin in March 2002, by age and sex, and average annual
benefit in 2001
Hispanic origin a (thousands)
Total
Men
Women

All beneficiaries (thousands)
Total
Men
Women

Age

Hispanic origin as a percentage
of all beneficiaries a
Total
Men
Women

Social Security beneficiaries
Total, all ages
15–34
35–44
45–54
55–64
65–74
75 or older

39,699

16,916

22,783

2,276

1,019

1,257

5.7

6.0

5.5

1,473
1,227
1,648
4,928
15,922
14,502

676
527
801
2,196
7,172
5,545

797
700
846
2,732
8,750
8,957

175
109
151
345
915
581

88
41
71
162
416
241

87
67
81
183
499
340

11.9
8.9
9.2
7.0
5.7
4.0

13.0
7.8
8.8
7.4
5.8
4.4

10.9
9.6
9.5
6.7
5.7
3.8

Supplemental Security Income recipients
Total, all ages
15–34
35–44
45–54
55–64
65–74
75 or older

5,002

1,928

3,075

706

258

448

14.1

13.4

14.6

996
893
917
987
635
575

442
390
392
347
220
138

555
503
524
640
415
437

123
104
115
143
116
105

58
37
52
43
38
32

64
68
63
100
78
74

12.3
11.7
12.5
14.5
18.2
18.4

13.2
9.4
13.2
12.3
17.2
23.1

11.6
13.5
12.1
15.7
18.8
16.9

...
...

...
...

...
...

Average annual benefit in 2001 b (dollars)
Social Security
Supplemental Security Income

9,463
5,128

10,986
5,478

8,332
4,908

7,868
5,123

9,368
5,269

6,653
5,039

a. Persons of Hispanic origin may be of any race.
b. For 2001, average benefits are shown. Tables in previous years showed median benefits.
SOURCE: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement.
NOTES: Table includes civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see U.S. Census Bureau, Current Population Reports, Series P-60.
. . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 3.9

3.E Poverty
Table 3.E1—Weighted average poverty thresholds for nonfarm families, by size, 1959–2002 (in dollars)
Families

Year

Unrelated individuals
Under Aged 65
All ages
age 65
or older

All
ages

2 persons
Householder
Householder
under age 65 aged 65 or older

7 persons
3 persons 4 persons 5 persons 6 persons
or more

Annual
average
CPI a

1959
1960
1961
1962
1963
1964

1,467
1,490
1,506
1,519
1,539
1,558

1,503
1,526
1,545
1,562
1,581
1,601

1,397
1,418
1,433
1,451
1,470
1,488

1,894
1,924
1,942
1,962
1,988
2,015

1,952
1,982
2,005
2,027
2,052
2,079

1,761
1,788
1,808
1,828
1,850
1,875

2,324
2,359
2,383
2,412
2,442
2,473

2,973
3,022
3,054
3,089
3,128
3,169

3,506
3,560
3,597
3,639
3,685
3,732

3,944
4,002
4,041
4,088
4,135
4,193

4,849
4,921
4,967
5,032
5,092
5,156

29.2
29.6
29.9
30.3
30.6
31.0

1965
1966
1967
1968
1969

1,582
1,628
1,675
1,748
1,840

1,626
1,674
1,722
1,797
1,893

1,512
1,556
1,600
1,667
1,757

2,048
2,107
2,168
2,262
2,383

2,114
2,175
2,238
2,333
2,458

1,906
1,961
2,017
2,102
2,215

2,514
2,588
2,661
2,774
2,924

3,223
3,317
3,410
3,553
3,743

3,797
3,908
4,019
4,188
4,415

4,264
4,388
4,516
4,706
4,958

5,248
5,395
5,550
5,789
6,101

31.5
32.5
33.4
34.8
36.7

1970
1971
1972
1973
1974

1,954
2,040
2,109
2,247
2,495

2,010
2,098
2,168
2,307
2,562

1,861
1,940
2,005
2,130
2,364

2,525
2,633
2,724
2,895
3,211

2,604
2,716
2,808
2,984
3,312

2,348
2,448
2,530
2,688
2,982

3,099
3,229
3,339
3,548
3,936

3,968
4,137
4,275
4,540
5,038

4,680
4,880
5,044
5,358
5,950

5,260
5,489
5,673
6,028
6,699

6,468
6,751
6,983
7,435
8,253

38.8
40.5
41.8
44.4
49.3

1975
1976
1977
1978
1979

2,724
2,884
3,075
3,311
3,689

2,797
2,959
3,152
3,392
3,778

2,581
2,730
2,906
3,127
3,479

3,506
3,711
3,951
4,249
4,725

3,617
3,826
4,072
4,383
4,878

3,257
3,445
3,666
3,944
4,390

4,293
4,540
4,833
5,201
5,784

5,500
5,815
6,191
6,662
7,412

6,499
6,876
7,320
7,880
8,775

7,316
7,760
8,261
8,891
9,914

9,022
9,588
10,216
11,002
12,280

53.8
56.9
60.6
65.2
72.6

1980
1981
1982
1983
1984

4,190
4,620
4,901
5,061
5,278

4,290
4,729
5,019
5,180
5,400

3,949
4,359
4,626
4,775
4,979

5,363
5,917
6,281
6,483
6,762

5,537
6,111
6,487
6,697
6,983

4,983
5,498
5,836
6,023
6,282

6,565
7,250
7,693
7,938
8,277

8,414
9,287
9,862
10,178
10,609

9,966
11,007
11,684
12,049
12,566

11,269
12,449
13,207
13,630
14,207

13,955
...
...
...
...

82.4
90.9
96.5
99.6
103.9

1985
1986
1987
1988
1989

5,469
5,572
5,778
6,022
6,310

5,593
5,701
5,909
6,155
6,451

5,156
5,255
5,447
5,674
5,947

6,998
7,138
7,397
7,704
8,076

7,231
7,372
7,641
7,958
8,343

6,503
6,630
6,872
7,157
7,501

8,573
8,737
9,056
9,435
9,885

10,989
11,203
11,611
12,092
12,674

13,007
13,259
13,737
14,304
14,990

14,696
14,986
15,509
16,146
16,921

...
...
...
...
...

107.6
109.6
113.6
118.3
124.0

1990
1991
1992
1993
1994

6,652
6,932
7,143
7,363
7,547

6,800
7,086
7,299
7,518
7,710

6,268
6,532
6,729
6,930
7,108

8,509
8,865
9,137
9,414
9,661

8,794
9,165
9,443
9,728
9,976

7,905
8,241
8,487
8,740
8,967

10,419
10,860
11,186
11,522
11,821

13,359
13,924
14,335
14,763
15,141

15,792
16,456
16,952
17,449
17,900

17,839
18,587
19,137
19,718
20,235

...
...
...
...
...

130.7
136.2
140.3
144.5
148.2

1995
1996
1997
1998
1999

7,763
7,995
8,183
8,316
8,501

7,929
8,163
8,350
8,480
8,667

7,309
7,525
7,698
7,818
7,990

9,933
10,233
10,473
10,634
10,869

10,259
10,564
10,805
10,972
11,214

9,219
9,491
9,712
9,862
10,075

12,158
12,516
12,802
13,003
13,290

15,569
16,036
16,400
16,660
17,029

18,408
18,952
19,380
19,680
20,127

20,804
21,389
21,886
22,228
22,727

...
...
...
...
...

152.4
156.9
160.5
163.0
166.6

2000
2001
2002

8,794
9,039
9,183

8,959
9,214
9,359

8,259
8,494
8,628

11,239
11,569
11,756

11,590
11,920
12,110

10,419
10,715
10,885

13,738
14,128
14,348

17,603
18,104
18,392

20,819
21,405
21,744

23,528
24,195
24,576

...
...
...

172.2
177.1
179.9

a. Beginning in January 1978, the Bureau of Labor Statistics introduced a new price index for all urban consumers (CPI-U) for all items (1982-1984 = 100) that forms a
continuous series with the earlier index for urban wage earners and for clerical workers as of December 1977.
SOURCE: U.S. Census Bureau, Current Population Survey.
NOTES: . . . = not applicable.
Three technical changes in the definition of poverty are described in “Characteristics of the Population Below the Poverty Level, 1980,” U.S. Census Bureau, Current
Population Reports, Series P-60, No. 133: (1) Distinctions based on the sex of the family householder will no longer be made; (2) income thresholds for farm families will be the
same as for nonfarm families of the same size and composition, and (3) the increased sample size will now permit separate poverty income criteria for families of 7, 8, and 9 or
more persons. Separate criteria for these family sizes by number of children have been developed by the Social Security Administration for the base year 1978 on the same
basis as the original poverty matrix for smaller family sizes, and then updated by means of the all-items consumer price index. The dollar thresholds for larger families
beginning in 1980 are:
Year

7 persons

8 persons

9 persons
or more

1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991

12,761
14,110
15,036
15,500
16,096
16,656
17,049
17,649
18,232
19,162
20,241
21,058

14,199
15,655
16,719
17,170
17,961
18,512
18,791
19,515
20,253
21,328
22,582
23,605

16,896
18,572
19,698
20,310
21,247
22,083
22,497
23,105
24,129
25,480
26,848
27,942

CONTACT: Joe Dalaker (301) 763-3213.

3.10 ♦ Annual Statistical Supplement, 2003

Year

7 persons

8 persons

9 persons
or more

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002

21,594
22,383
22,923
23,552
24,268
24,802
25,257
25,912
26,754
27,517
28,001

24,053
24,838
25,427
26,237
27,091
27,593
28,166
28,967
29,701
30,627
30,907

28,745
29,529
30,300
31,280
31,971
32,566
33,339
34,417
35,060
36,286
37,062

3.E Poverty
Table 3.E2—Number and percentage of poor persons, by age, at end of selected years 1959–2001
Age and family status a

1959

1970

1975

1980
Total population

All ages
Children under 18 in families—
With male householder d
With female householder
18–54 e
55–64
65 or older
In families
Unrelated individuals
Men
Women

1985
c

1990 b

2000

2001

(millions)

176.5

202.5

210.4

225.0

236.6

248.6

275.9

281.5

64.0
58.3
5.7
81.0
15.5
15.6
11.9
3.7
1.2
2.5

69.9
60.8
9.0
94.9
18.4
19.3
13.4
5.8
1.4
4.4

64.8
54.1
10.6
104.7
19.8
21.7
14.8
6.9
1.5
5.4

62.2
50.6
11.5
116.3
21.7
24.7
16.7
8.0
1.7
6.3

62.0
49.5
12.5
125.2
22.1
27.3
18.4
8.9
2.0
7.0

64.9
49.5
15.4
132.3
21.3
30.1
20.1
10.0
2.3
7.7

70.6
54.5
16.1
147.4
23.8
33.0
22.3
10.7
2.9
7.8

70.8
54.0
16.8
150.1
25.9
33.8
22.5
11.2
3.0
8.3

Number poor c (millions)
All ages
Children under 18 in families—
With male householder d
With female householder
18–54 e
55–64
65 or older
In families
Unrelated individuals
Men
Women

39.5

25.3

25.9

29.3

33.1

33.6

31.1

32.9

17.2
13.1
4.1
13.4
3.3
5.5
3.2
2.3
0.7
1.6

10.5
5.7
4.8
8.2
2.1
4.7
2.0
2.7
0.5
2.2

10.9
5.3
5.6
9.7
2.0
3.3
1.2
2.1
0.4
1.7

11.1
5.2
5.9
12.2
2.1
3.9
1.4
2.4
0.4
2.0

12.5
5.8
6.7
14.8
2.3
3.5
1.2
2.3
0.4
1.9

13.3
5.3
8.0
14.6
2.1
3.7
1.2
2.5
0.4
2.1

11.1
4.9
6.2
14.1
2.2
3.4
1.1
2.2
0.5
1.7

11.1
4.7
6.4
15.6
2.4
3.4
1.2
2.2
0.5
1.8

Percentage poor c
All ages
Children under 18 in families—
With male householder d
With female householder
18–54 e
55–64
65 or older
In families
Unrelated individuals
Men
Women
a.
b.
c.
d.
e.

22.4

12.6

12.3

13.0

14.0

13.5

11.3

11.7

26.9
22.4
72.2
16.5
21.5
35.2
26.9
61.9
59.0
63.3

15.0
9.3
53.4
8.7
11.4
24.6
14.7
47.1
38.9
49.7

16.8
9.8
52.7
9.2
10.2
15.3
8.0
31.0
27.7
31.9

17.9
10.4
50.8
10.5
9.5
15.7
8.5
30.6
24.4
32.3

20.1
11.7
53.6
11.8
10.5
12.6
6.4
25.6
20.5
27.0

20.5
10.7
52.1
11.0
9.7
12.2
5.9
24.8
17.3
26.9

15.7
8.9
38.4
9.6
9.4
10.2
5.1
20.8
18.3
21.8

15.7
8.7
38.2
10.4
9.4
10.1
5.3
19.7
15.8
21.2

Income and poverty status refer to the calendar year shown; family status is as of March of the succeeding year.
Based on revised methodology.
Includes armed forces in the United States living off post or with families on post. Excludes unrelated individuals under age 16.
Includes children in families with both spouses present and in families with male householder with no spouse present.
Includes persons under age 18 listed as unrelated individual, family householder, spouse of householder, or other family member.

SOURCES: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement. Data for 1970 and 1975 are based on the 1970 Census
of Population controls.
NOTES: Table includes civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see U.S. Census Bureau, Current Population Reports, Series P-60.
CONTACT: Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 3.11

3.E Poverty
Table 3.E3—Shares of money income from earnings and other sources for aged and nonaged families, 2001

Type of money income
received during year
Number of families and unrelated
individuals (millions)

Aged family units
Individuals aged 65 or
Multiperson families with
older living alone or
householder
with nonrelatives only
aged 65 or older
Total Nonpoor
Poor a
Total Nonpoor
Poor a
11.2

9

2.2

11.6

11

Nonaged family units
Individuals under age 65
living alone or
Multiperson families with
with nonrelatives only
householder under age 65
Total Nonpoor
Poor a
Total Nonpoor
Poor a

0.6

35.2

27.9

7.3

62.7

56.5

6.2

Percentage receiving income of specified type b
Earnings
Public program payments
Social Security c
Supplemental Security Income
Other public assistance
Other programs d
Other sources
Dividends, interest, rent
Employment-related pensions,
alimony, annuities

14

17

2

44

45

24

82

93

38

94

97

66

92
6
2
4

94
3
2
5

85
19
3
2

92
4
4
8

94
4
4
9

63
18
7
2

6
4
10
7

5
1
9
8

11
13
13
3

10
3
11
11

10
2
10
11

12
10
23
7

56

64

25

66

69

23

46

53

18

60

65

16

39

47

7

51

53

12

6

7

3

16

16

15

Percentage distribution of income, by type
Total percent
Earnings
Public program payments
Social Security c
Supplemental Security Income
Other public assistance
Other programs d
Other sources
Dividends, interest, rent
Employment-related pensions,
alimony, annuities
Median income (dollars)
a.
b.
c.
d.
e.

100

100

100

100

100

100

100

100

100

100

100

100

15

15

0

33

33

17

89

90

47

90

91

67

46
1

43
1

84
9

32
1

31

e
e

1

1

1

2
1

18
17
9
3

2

1

2
1
2
1

2

1

64
10
2
1

1

e

1
1

1
1

9
6
9
2

17

18

3

15

15

2

4

4

3

4

4

1

e

e

e

e

e

e

20

21

3

18

18

5

2

2

3

3

3

5

14,224

16,681

5,900

33,748

35,316

8,654

24,695

30,358

3,872

55,510

56,361

8,736

Poverty status based on money income of all family members after receipt of Social Security and any other cash transfer payments.
Received by individuals or any family member at any time during 2000. Most individuals or families received more than one type of income during the year.
Social Security may include more than one type of income during the year.
Unemployment insurance, workers’ compensation, or veterans’ payments.
Less than 0.05 percent.

SOURCE: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement.
NOTES: Table includes civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see U.S. Census Bureau, Current Population Reports, Series P-60.
CONTACT: Curt Pauzenga (410) 965-7210.

3.12 ♦ Annual Statistical Supplement, 2003

3.E Poverty
Table 3.E4—Current living arrangements of persons aged 65 or older, by sex and poverty status, March 2002
Living arrangement

Population (thousands)
Total
Poor

Percentage distribution
Total
Poor

Nonpoor

Nonpoor

Percentage
officially poor

All persons aged 65 or older
Total
Unrelated individuals
Family members
Householder or spouse
Other relative a
Poor by own income
Not poor by own income

33,770

3,414

30,357

100.0

100.0

100.0

10.1

11,250
22,520
20,430
2,091
848
1,242

2,222
1,192
1,046
145
117
28

9,028
21,329
19,383
1,945
731
1,214

33.3
66.7
60.5
6.2
2.5
3.7

65.1
34.9
30.7
4.3
3.4
0.8

29.7
70.3
63.9
6.4
2.4
4.0

19.7
5.3
5.1
7.0
13.8
2.3

Men
Subtotal

14,235

999

13,237

42.2

29.3

43.6

7.0

Unrelated individuals
Family members
Householder
Spouse of householder
Other relative a
Poor by own income
Not poor by own income

2,964
11,272
7,875
2,963
433
154
278

469
530
311
181
38
31
8

2,495
10,741
7,565
2,782
394
123
271

8.8
33.4
23.3
8.8
1.3
0.5
0.8

13.7
15.5
9.1
5.3
1.1
0.9
0.2

8.2
35.4
24.9
9.2
1.3
0.4
0.9

15.8
4.7
3.9
6.1
8.9
20.0
2.7

Women
Subtotal
Unrelated individuals
Family members
Householder, no husband present
Householder with husband present
Wife of householder
Other relative a
Poor by own income
Not poor by own income

19,535

2,415

17,120

57.8

70.7

56.4

12.4

8,286
11,249
1,623
2,261
5,706
1,658
694
964

1,753
661
215
119
220
107
86
20

6,533
10,587
1,408
2,142
5,486
1,551
608
944

24.5
33.3
4.8
6.7
16.9
4.9
2.1
2.9

51.4
19.4
6.3
3.5
6.5
3.1
2.5
0.6

21.5
34.9
4.6
7.1
18.1
5.1
2.0
3.1

21.2
5.9
13.3
5.3
3.9
6.4
12.5
2.1

a. Aged family members who are neither the family householder nor the spouse of the householder. Official poverty classification is based on combined income of all related
persons living together. Persons in this group are classified here on the basis of official poverty criteria for family income and on a comparison of their own income with
official poverty criteria for elderly persons maintaining their own households. The hidden poor are other relatives in nonpoor households whose own income is below the
official poverty line for unrelated individuals or married couples.
SOURCE: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement.
NOTES: Living arrangements as of March 2002.
Poverty status in 2001 as reflected by income of unrelated individual or family money income for year compared with official poverty income criterion for families of appropriate
size and composition.
Table includes civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see U.S. Census Bureau, Current Population Reports, Series P-60.
CONTACT: Curt Pauzenga (410) 965-7210.

Annual Statistical Supplement, 2003 ♦ 3.13

3.E Poverty
Table 3.E6—Percentage distribution of aged families receiving Social Security benefits, by share of income from
benefits and race, 2001

Social Security share of money income for year a

Individuals aged 65 or older living alone
or with nonrelatives only
Percent
Total
Nonpoor
Poor
poor

Multiperson families with householder
aged 65 or older
Total

Nonpoor

Poor

Percent
poor

All races b
Number (thousands)
Percent
No Social Security benefits
Some Social Security benefits
Less than one-fourth of income
One-fourth to one-half of income
One-half to three-fourths of income
Three-fourths or more of income

11,236
100

9,020
100

2,217
100

...
20

11,863
100

11,174
100

689
100

...
6

8
92
9
18
19
47

6
94
11
21
22
40

15
85
1
3
8
74

39
18
3
3
8
31

8
92
22
25
20
25

6
94
23
26
21
23

37
63
3
4
8
49

26
4
1
1
2
12

White
Number (thousands)
Percent
No Social Security benefits
Some Social Security benefits
Less than one-fourth of income
One-fourth to one-half of income
One-half to three-fourths of income
Three-fourths or more of income

9,976
100

8,217
100

1,759
100

...
18

10,309
100

9,853
100

456
100

...
4

7
93
9
18
19
47

5
95
11
22
22
40

14
86
1
2
7
75

36
16
3
2
7
28

7
93
22
26
21
24

5
95
23
27
21
23

40
60
3
3
6
49

25
3
1
0
1
9

1,037
100

634
100

403
100

...
39

985
100

846
100

139
100

...
14

13
87
7
12
15
53

10
90
11
17
20
43

17
83
0
3
9
70

53
37
2
12
22
51

13
87
22
22
16
27

11
89
25
24
17
23

25
75
3
7
13
51

28
12
2
5
12
27

Black
Number (thousands)
Percent
No Social Security benefits
Some Social Security benefits
Less than one-fourth of income
One-fourth to one-half of income
One-half to three-fourths of income
Three-fourths or more of income

a. Payments under Social Security program any time in 2001 to any family member as reported in the March 2002 Current Population Survey.
b. Includes other races.
SOURCE: U.S. Census Bureau, Current Population Survey, public-use file of the March 2002 Income Supplement.
NOTES: Civilian noninstitutionalized population residing in the 50 states and the District of Columbia.
For a discussion of standard errors of estimated numbers and percentages, see Bureau of the Census, Current Population Reports, Series P-60.
. . . = not applicable.
CONTACT: Curt Pauzenga (410) 965-7210.

3.14 ♦ Annual Statistical Supplement, 2003

3.E Poverty
Table 3.E8—Poverty guidelines for families of specified size, 1965–2003 (dollars)
Date of issuance a

1 person

2 persons

3 persons

4 persons

5 persons

6 persons

7 persons

8 persons

Increment b

December 1965
August 1967
September 1968
September 1969

1,540
1,600
1,600
1,800

1,990
2,000
2,100
2,400

2,440
2,500
2,600
3,000

3,130
3,200
3,300
3,600

3,685
3,800
3,900
4,200

4,135
4,200
4,400
4,800

4,635
4,700
4,900
5,400

5,135
5,300
5,400
6,000

500
500
500
600

December 1970
November 1971
October 1972
March 1973
May 1974

1,900
2,000
2,100
2,200
2,330

2,500
2,600
2,725
2,900
3,070

3,100
3,300
3,450
3,600
3,810

3,800
4,000
4,200
4,300
4,550

4,400
4,700
4,925
5,000
5,290

5,000
5,300
5,550
5,700
6,030

5,600
5,900
6,200
6,400
6,770

6,200
6,500
6,850
7,100
7,510

600
600
650
700
740

March 1975
April 1976
April 1977
April 1978
May 1979

2,590
2,800
2,970
3,140
3,400

3,410
3,700
3,930
4,160
4,500

4,230
4,600
4,890
5,180
5,600

5,050
5,500
5,850
6,200
6,700

5,870
6,400
6,810
7,220
7,800

6,690
7,300
7,770
8,240
8,900

7,510
8,200
8,730
9,260
10,000

8,330
9,100
9,690
10,280
11,100

820
900
960
1,020
1,100

April 1980
March 1981
April 1982
February 1983
February 1984

3,790
4,310
4,680
4,860
4,980

5,010
5,690
6,220
6,540
6,720

6,230
7,070
7,760
8,220
8,460

7,450
8,450
9,300
9,900
10,200

8,670
9,830
10,840
11,580
11,940

9,890
11,210
12,380
13,260
13,680

11,110
12,590
13,920
14,940
15,420

12,330
13,970
15,460
16,620
17,160

1,220
1,380
1,540
1,680
1,740

March 1985
February 1986
February 1987
February 1988
February 1989

5,250
5,360
5,500
5,770
5,980

7,050
7,240
7,400
7,730
8,020

8,850
9,120
9,300
9,690
10,060

10,650
11,000
11,200
11,650
12,100

12,450
12,880
13,100
13,610
14,140

14,250
14,760
15,000
15,570
16,180

16,050
16,640
16,900
17,530
18,220

17,850
18,520
18,800
19,490
20,260

1,800
1,880
1,900
1,960
2,040

February 1990
February 1991
February 1992
February 1993
February 1994

6,280
6,620
6,810
6,970
7,360

8,420
8,880
9,190
9,430
9,840

10,560
11,140
11,570
11,890
12,320

12,700
13,400
13,950
14,350
14,800

14,840
15,660
16,330
16,810
17,280

16,980
17,920
18,710
19,270
19,760

18,120
20,180
21,090
21,730
22,240

21,260
22,440
23,470
24,190
24,720

2,140
2,260
2,380
2,460
2,480
(Continued)

Annual Statistical Supplement, 2003 ♦ 3.15

3.E Poverty
Table 3.E8—Poverty guidelines for families of specified size, 1965–2003 (dollars)—Continued
1 person

2 persons

3 persons

4 persons

5 persons

6 persons

7 persons

8 persons

Increment b

February 1995
March 1996
March 1997
February 1998
March 1999

Date of issuance a

7,470
7,740
7,890
8,050
8,240

10,030
10,360
10,610
10,850
11,060

12,590
12,980
13,330
13,650
13,880

15,150
15,600
16,050
16,450
16,700

17,710
18,220
18,770
19,250
19,520

20,270
20,840
21,490
22,050
22,340

22,830
23,460
24,210
24,850
25,160

25,390
26,080
26,960
27,650
27,980

2,560
2,620
2,720
2,800
2,820

February 2000
February 2001
February 2002
February 2003

8,350
8,590
8,860
8,980

11,250
11,610
11,940
12,120

14,150
14,630
15,020
15,260

17,050
17,650
18,100
18,400

19,950
20,670
21,180
21,540

22,850
23,690
24,260
24,680

25,750
26,710
27,340
27,820

28,650
29,730
30,420
30,960

2,900
3,020
3,080
3,140

a. The guidelines are effective from the date of issuance (unless otherwise specified by a particular program using them).
b. Add this amount for each additional family member. Before 1973, increments between some of the smaller family sizes differed from the increment shown in the table.
Beginning in 1973, the increment has been the same for all family sizes in each year’s set of guidelines.
SOURCE: Department of Health and Human Services, Federal Register, vol. 68, no. 26, February 7, 2003, pp. 6456–6458.
NOTES: Except for Alaska and Hawaii. Guidelines for Alaska and Hawaii since 1980 are:

Year

Alaska
1 person
Increment

Hawaii
1 person
Increment

1980
1981
1982
1983
1984

4,760
5,410
5,870
6,080
6,240

1,520
1,720
1,920
2,100
2,170

4,370
4,980
5,390
5,600
5,730

1,400
1,580
1,770
1,930
2,000

1985
1986
1987
1988
1989

6,560
6,700
6,860
7,210
7,480

2,250
2,350
2,380
2,450
2,550

6,040
6,170
6,310
6,650
6,870

2,070
2,160
2,190
2,250
2,350

1990
1991
1992
1993
1994

7,840
8,290
8,500
8,700
9,200

2,680
2,820
2,980
3,080
3,100

7,230
7,610
7,830
8,040
8,470

2,460
2,600
2,740
2,820
2,850

1995
1996
1997
1998
1999

9,340
9,660
9,870
10,070
10,320

3,200
3,280
3,400
3,500
3,520

8,610
8,910
9,070
9,260
9,490

2,940
3,010
3,130
3,220
3,240

2000
10,430
3,630
9,590
3,340
2001
10,730
3,780
9,890
3,470
2002
11,080
3,850
10,200
3,540
2003
11,210
3,930
10,330
3,610
Separate figures for Alaska and Hawaii reflect Office of Economic Opportunity administrative practice beginning in the 1966–1970 period. The U.S. Census Bureau, producer
of the primary version of the poverty measure (the poverty thresholds), does not produce separate figures for Alaska and Hawaii.
Before 1983, the guidelines shown are for nonfarm families only.
CONTACT: Gordon Fisher (202) 690-5880.

3.16 ♦ Annual Statistical Supplement, 2003

4.A OASDI: Trust Funds
Table 4.A1—Old-Age and Survivors Insurance, selected years 1937–2002 (in millions of dollars)
Receipts

Expenditures

Income
from
taxation
of benefits

Payments
from the
general
fund of the
Treasury b

Assets

Administrative
expenses

Transfers to
Railroad
Retirement
program

Net
increase
during year

Amount
at end
of year

Year

Total

Net
contributions a

Total

Benefit
payments d

1937
1938
1939
1940

767
375
607
368

765
360
580
325

...
...
...
...

...
...
...
...

2
15
27
43

1
10
14
62

1
10
14
35

...
...
...
26

...
...
...
...

766
366
592
306

766
1,132
1,724
2,031

1945
1950
1955
1960

1,420
2,928
6,167
11,382

1,285
2,667
5,713
10,866

...
...
...
...

...
4
...
...

134
257
454
516

304
1,022
5,079
11,198

274
961
4,968
10,677

30
61
119
203

...
...
-7
318

1,116
1,905
1,087
184

7,121
13,721
21,663
20,324

1965
1966
1967
1968
1969

16,610
21,302
24,034
25,040
29,554

16,017
20,580
23,138
23,719
27,947

...
...
...
...
...

...
78
78
382
442

593
644
818
939
1,165

17,501
18,967
20,382
23,557
25,176

16,737
18,267
19,468
22,643
24,210

328
256
406
476
474

436
444
508
438
491

-890
2,335
3,652
1,483
4,378

18,235
20,570
24,222
25,704
30,082

1970
1971
1972
1973
1974

32,220
35,877
40,050
48,344
54,688

30,256
33,723
37,781
45,975
52,081

...
...
...
...
...

449
488
475
442
447

1,515
1,667
1,794
1,928
2,159

29,848
34,542
38,522
47,175
53,397

28,798
33,414
37,124
45,745
51,623

471
514
674
647
865

579
613
724
783
909

2,371
1,335
1,528
1,169
1,291

32,454
33,789
35,318
36,487
37,777

1975
1976
1977
1978
1979

59,605
66,276
72,412
78,094
90,274

56,816
63,362
69,572
75,471
87,919

...
...
...
...
...

425
614
613
615
557

2,364
2,301
2,227
2,008
1,797

60,395
67,876
75,309
83,064
93,133

58,517
65,705
73,121
80,361
90,573

896
959
981
1,115
1,113

982
1,212
1,208
1,589
1,448

-790
-1,600
-2,897
-4,971
-2,860

36,987
35,388
32,491
27,520
24,660

1980
1981
1982
1983
1984

105,841
125,361
125,198
150,584
169,328

103,456
122,627
123,673
138,337
164,122

...
...
...
...
2,835

540
675
680
5,541
105

1,845
2,060
845
6,706
2,266

107,678
126,695
142,119
152,999
161,883

105,083
123,803
138,806
149,221
157,841

1,154
1,307
1,519
1,528
1,638

1,442
1,585
1,793
2,251
2,404

-1,837
-1,334
e
598
-2,416
7,445

22,823
21,490
22,088
19,672
27,117

1985
1986
1987
1988
1989

184,239
197,393
210,736
240,770
264,653

176,958
190,741
202,735
229,775
250,195

3,208
3,424
3,257
3,384
2,439

2,203
160
55
43
34

1,871
3,069
4,690
7,568
11,985

171,150
181,000
187,668
200,020
212,489

167,248
176,813
183,587
195,454
207,971

1,592
1,601
1,524
1,776
1,673

2,310
2,585
2,557
2,790
2,845

e
8,725
e 3,239

23,068
40,750
52,164

35,842
39,081
62,149
102,899
155,063

1990
1991
1992
1993
1994

286,653
299,286
311,162
323,277
328,271

267,530
272,574
280,992
290,905
293,323

4,848
5,864
5,852
5,335
4,995

-2,089
19
14
10
7

16,363
20,829
24,303
27,027
29,946

227,519
245,634
259,861
273,104
284,133

222,987
240,467
254,883
267,755
279,068

1,563
1,792
1,830
1,996
1,645

2,969
3,375
3,148
3,353
3,420

59,134
53,652
51,301
50,173
44,138

214,197
267,849
319,150
369,322
413,460

1995
1996
1997
1998
1999

342,801
363,741
397,169
424,848
457,040

304,620
321,557
349,946
371,207
396,352

5,490
6,471
7,426
9,149
10,899

-129
7
2
1

32,820
35,706
39,795
44,491
49,788

297,760
308,217
322,073
332,324
339,874

291,630
302,861
316,257
326,762
334,383

2,077
1,802
2,128
1,899
1,809

4,052
3,554
3,688
3,662
3,681

45,041
55,524
75,096
92,524
117,167

458,502
514,026
589,121
681,645
798,812

2000
2001
2002

490,513
518,100
539,706

421,391
441,460
455,199

11,594
11,903
12,909

...
...
414

57,529
64,737
71,184

358,339
377,546
393,749

352,652
372,312
388,119

2,149
1,961
2,137

3,538
3,273
3,493

132,174
140,554
145,957

930,986
1,071,540
1,217,497

f

Net
interest c

a. Beginning in 1983, includes transfers from the general fund of the Treasury representing contributions that would have been paid on deemed wage credits for military service
in 1957–2001, if such credits were considered to be covered wages.
b. Includes payments (1) in 1947–1951 and in 1966 and later, for costs of noncontributory wage credits for military service performed before 1957; (2) in 1971–1982, for costs
of deemed wage credits for military service performed after 1956; and (3) in 1968 and later, for costs of benefits to certain uninsured persons who attained age 72 before
1968.
c. Net interest includes net profits or losses on marketable investments. Beginning in 1967, administrative expenses are charged to the trust fund on an estimated basis, with a
final adjustment, including interest, made in the following fiscal year. The amounts of these interest adjustments are included in net interest. Beginning in October 1973, the
figures shown include relatively small amounts of gifts to the fund. Figures for 1983–1986 reflect payments from a borrowing trust fund to a lending trust fund for interest on
amounts owed under the interfund borrowing provisions. During 1983–1990, interest paid from the trust fund to the general fund of the Treasury on advance tax transfers is
reflected. The amount shown for 1985 includes an interest adjustment of $88 million on unnegotiated checks issued before April 1985.
d. Beginning in 1966, includes payments for vocational rehabilitation services furnished to disabled persons receiving benefits because of their disabilities. Beginning in 1983,
amounts are reduced by amount of reimbursement for unnegotiated benefit checks.
e. Amount equals total receipts less total expenditures, plus amounts borrowed or less amounts repaid under interfund borrowing provisions.
f. Less than $500,000.
SOURCE: Department of the Treasury.
NOTES: Data for all years can be found at www.socialsecurity.gov/OACT/STATS/table4a1.html.
. . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

Annual Statistical Supplement, 2003 ♦ 4.1

4.A OASDI: Trust Funds
Table 4.A2—Disability Insurance, 1957–2002 (in millions of dollars)
Receipts

Expenditures

Income
from
taxation
of benefits

Payments
from the
general
fund of the
Treasury b

Assets

Administrative
expenses

Transfers to
Railroad
Retirement
program

Net
increase
during year

Amount
at end
of year

Year

Total

Net
contributions a

Total

Benefit
payments d

1957
1958
1959

709
991
931

702
966
891

...
...
...

...
...
...

7
25
40

59
261
485

57
249
457

3
12
50

...
...
-22

649
729
447

649
1,379
1,825

1960
1961
1962
1963
1964

1,063
1,104
1,114
1,165
1,218

1,010
1,038
1,046
1,099
1,154

...
...
...
...
...

...
...
...
...
...

53
66
68
66
64

600
956
1,183
1,297
1,407

568
887
1,105
1,210
1,309

36
64
66
68
79

-5
5
11
20
19

464
148
-69
-133
-188

2,289
2,437
2,368
2,235
2,047

1965
1966
1967
1968
1969

1,247
2,079
2,379
3,454
3,792

1,188
2,006
2,286
3,316
3,599

...
...
...
...
...

...
16
16
32
16

59
58
78
106
177

1,687
1,947
2,089
2,458
2,716

1,573
1,784
1,950
2,311
2,557

90
137
109
127
138

24
25
31
20
21

-440
133
290
996
1,075

1,606
1,739
2,029
3,025
4,100

1970
1971
1972
1973
1974

4,774
5,031
5,572
6,443
7,378

4,481
4,620
5,107
5,932
6,826

...
...
...
...
...

16
50
51
52
52

277
361
414
458
500

3,259
4,000
4,759
5,973
7,196

3,085
3,783
4,502
5,764
6,957

164
205
233
190
217

10
13
24
20
22

1,514
1,031
813
470
182

5,614
6,645
7,457
7,927
8,109

1975
1976
1977
1978
1979

8,035
8,757
9,570
13,810
15,590

7,444
8,233
9,138
13,413
15,114

...
...
...
...
...

90
103
128
142
118

502
422
304
256
358

8,790
10,366
11,945
12,954
14,186

8,505
10,055
11,547
12,599
13,786

256
285
399
325
371

29
26
30
30

-754
-1,609
-2,375
856
1,404

7,354
5,745
3,370
4,226
5,630

1980
1981
1982
1983
1984

13,871
17,078
22,715
20,682
17,309

13,255
16,738
21,995
17,991
15,945

...
...
...
...
190

130
168
174
1,121
...

485
172
546
1,569
1,174

15,872
17,658
17,992
18,177
18,546

15,515
17,192
17,376
17,524
17,898

368
436
590
625
626

-12
29
26
28
22

-2,001
-580
f
-358
2,505
-1,237

3,629
3,049
2,691
5,195
3,959

1985
1986
1987
1988
1989

19,301
19,439
20,303
22,699
24,795

17,191
18,399
19,691
22,039
23,993

222
238
g -36
61
95

1,017
...
...
...
...

870
803
648
600
707

19,478
20,522
21,425
22,494
23,753

18,827
19,853
20,519
21,695
22,911

608
600
849
737
754

43
68
57
61
88

f
2,363
f 1,459

-1,122
206
1,041

6,321
7,780
6,658
6,864
7,905

1990
1991
1992
1993
1994

28,791
30,390
31,430
32,301
52,841

28,539
29,137
30,136
31,185
51,373

144
190
232
281
311

-775
...
...
...
...

883
1,063
1,062
835
1,157

25,616
28,571
32,004
35,662
38,879

24,829
27,695
31,112
34,613
37,744

707
794
834
966
1,029

80
82
58
83
106

3,174
1,819
-574
-3,361
13,962

11,079
12,898
12,324
8,963
22,925

1995
1996
1997
1998
1999

56,696
60,710
60,499
64,357
69,541

54,401
57,325
56,037
58,966
63,203

341
373
470
558
661

-203
...
...
...
...

2,158
3,012
3,992
4,832
5,677

42,055
45,351
47,034
49,931
53,035

40,923
44,189
45,695
48,207
51,381

1,064
1,160
1,280
1,567
1,519

68
2
59
157
135

14,641
15,359
13,465
14,425
16,507

37,566
52,924
66,389
80,815
97,321

2000
2001
2002

77,920
83,903
87,379

71,093
74,933
77,272

721
811
930

-836
...
...

6,942
8,158
9,178

56,782
61,369
67,905

54,983
59,618
65,702

1,639
1,741
2,049

159
10
154

21,138
22,534
19,475

118,459
140,993
160,468

Net
interest c

e

a. Beginning in 1983, includes transfers from the general fund of the Treasury representing contributions that would have been paid on deemed wage credits for military service
in 1957–2001, if such credits were considered to be covered wages.
b. Includes payments (1) in 1966 and later, for costs of noncontributory wage credits for military service performed before 1957; and (2) in 1971–1982, for costs of deemed
wage credits for military service performed after 1956.
c. Net interest includes net profits or losses on marketable investments. Beginning in 1967, administrative expenses are charged to the trust fund on an estimated basis, with a
final adjustment, including interest, made in the following fiscal year. The amounts of these interest adjustments are included in net interest. Beginning in July 1974, the
figures shown include relatively small amounts of gifts to the fund. Figures for 1983–1986 reflect payments from a borrowing trust fund to a lending trust fund for interest on
amounts owed under the interfund borrowing provisions. During 1983–1990, interest paid from the trust fund to the general fund of the Treasury on advance tax transfers is
reflected. The amount shown for 1985 includes an interest adjustment of $14.8 million on unnegotiated checks issued before April 1985.
d. Beginning in 1966, includes payments for vocational rehabilitation services furnished to disabled persons receiving benefits because of their disabilities. Beginning in 1983,
amounts are reduced by amount of reimbursement for unnegotiated benefit checks.
e. Less than $500,000.
f. Amount equals total receipts less total expenditures, less amounts loaned or plus amounts repaid under interfund borrowing provisions.
g. Reflects $195 million in transfers from the DI trust fund to the general fund of the Treasury to correct estimated amounts transferred for calendar years 1984 and 1985.
SOURCE: Department of the Treasury.
NOTE: . . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

4.2 ♦ Annual Statistical Supplement, 2003

4.A OASDI: Trust Funds
Table 4.A3—Combined OASI and DI, 1957–2002 (in millions of dollars)
Receipts

Expenditures

Income
from
taxation
of benefits

Payments
from the
general
fund of the
Treasury b

Assets

Administrative
expenses

Transfers to
Railroad
Retirement
program

Net
increase
during year

Amount
at end
of year

Year

Total

Net
contributions a

Total

Benefit
payments d

1957
1958
1959

8,090
9,108
9,516

7,527
8,531
8,943

...
...
...

...
...
...

563
577
572

7,567
8,907
10,793

7,404
8,576
10,298

164
207
234

-2
124
260

523
201
-1,277

23,042
23,243
21,966

1960
1961
1962
1963
1964

12,445
12,937
13,699
16,227
17,476

11,876
12,323
13,105
15,640
16,843

...
...
...
...
...

...
...
...
...
...

569
614
594
587
633

11,798
13,388
15,156
16,217
17,020

11,245
12,749
14,461
15,427
16,223

240
303
322
348
375

314
337
372
442
422

647
-451
-1,457
10
456

22,613
22,162
20,705
20,715
21,172

1965
1966
1967
1968
1969

17,857
23,381
26,413
28,493
33,346

17,205
22,585
25,424
27,034
31,546

...
...
...
...
...

...
94
94
414
458

651
702
896
1,045
1,342

19,187
20,913
22,471
26,015
27,892

18,311
20,051
21,417
24,954
26,767

418
393
515
603
612

459
469
539
458
513

-1,331
2,467
3,942
2,479
5,453

19,841
22,308
26,250
28,729
34,182

1970
1971
1972
1973
1974

36,993
40,908
45,622
54,787
62,066

34,737
38,343
42,888
51,907
58,907

...
...
...
...
...

465
538
526
494
499

1,791
2,027
2,208
2,386
2,660

33,108
38,542
43,281
53,148
60,593

31,884
37,197
41,625
51,508
58,581

635
719
907
837
1,082

589
626
749
802
931

3,886
2,366
2,341
1,639
1,472

38,068
40,434
42,775
44,414
45,886

1975
1976
1977
1978
1979

67,640
75,034
81,982
91,903
105,864

64,259
71,595
78,710
88,883
103,034

...
...
...
...
...

515
717
741
757
675

2,866
2,722
2,531
2,264
2,155

69,184
78,242
87,254
96,018
107,320

67,022
75,759
84,667
92,960
104,359

1,152
1,244
1,379
1,440
1,483

1,010
1,239
1,208
1,618
1,477

-1,544
-3,209
-5,272
-4,115
-1,456

44,342
41,133
35,861
31,746
30,291

1980
1981
1982
1983
1984

119,712
142,438
147,913
171,266
186,637

116,711
139,364
145,667
156,328
180,067

...
...
...
...
3,025

670
843
854
6,662
105

2,330
2,231
1,391
8,276
3,440

123,550
144,352
160,111
171,177
180,429

120,598
140,995
156,182
166,745
175,739

1,522
1,743
2,109
2,153
2,264

1,430
1,614
1,820
2,279
2,426

-3,838
-1,914
e
239
89
6,208

26,453
24,539
24,778
24,867
31,075

1985
1986
1987
1988
1989

203,540
216,833
231,039
263,469
289,448

194,149
209,140
222,425
251,814
274,189

3,430
3,662
3,221
3,445
2,534

3,220
160
55
43
34

2,741
3,871
5,338
8,168
12,692

190,628
201,522
209,093
222,514
236,242

186,075
196,667
204,106
217,149
230,882

2,200
2,202
2,373
2,513
2,427

2,353
2,653
2,614
2,851
2,934

11,088
4,698
21,946
40,955
53,206

42,163
46,861
68,807
109,762
162,968

1990
1991
1992
1993
1994

315,443
329,676
342,591
355,578
381,111

296,070
301,711
311,128
322,090
344,695

4,992
6,054
6,084
5,616
5,306

-2,864
19
14
10
7

17,245
21,892
25,365
27,862
31,103

253,135
274,205
291,865
308,766
323,011

247,816
268,162
285,995
302,368
316,812

2,270
2,587
2,664
2,963
2,674

3,049
3,457
3,206
3,435
3,526

62,309
55,471
50,726
46,812
58,100

225,277
280,747
331,473
378,285
436,385

1995
1996
1997
1998
1999

399,497
424,451
457,668
489,204
526,582

359,021
378,881
405,984
430,174
459,556

5,831
6,844
7,896
9,707
11,559

-332
7
2
1

34,977
38,718
43,787
49,323
55,466

339,815
353,569
369,108
382,255
392,908

332,554
347,050
361,952
374,969
385,765

3,141
2,962
3,409
3,467
3,328

4,120
3,556
3,747
3,819
3,816

59,683
70,883
88,560
106,950
133,673

496,068
566,950
655,510
762,460
896,133

2000
2001
2002

568,433
602,003
627,085

492,484
516,393
532,471

12,314
12,715
13,839

-836
...
414

64,471
72,895
80,362

415,121
438,916
461,653

407,635
431,931
453,821

3,788
3,702
4,185

3,698
3,283
3,647

153,312
163,088
165,432

1,049,445
1,212,533
1,377,965

f

Net
interest c

e

e

a. Beginning in 1983, includes transfers from the general fund of the Treasury representing contributions that would have been paid on deemed wage credits for military service
in 1957–2001, if such credits were considered to be covered wages.
b. Includes payments (1) in 1947–1951 and in 1966 and later, for costs of noncontributory wage credits for military service performed before 1957; (2) in 1971–1982, for costs
of deemed wage credits for military service performed after 1956; and (3) in 1968 and later, for costs of benefits to certain uninsured persons who attained age 72 before
1968.
c. Net interest includes net profits or losses on marketable investments. Beginning in 1967, administrative expenses are charged to the trust fund on an estimated basis, with a
final adjustment, including interest, made in the following fiscal year. The amounts of these interest adjustments are included in net interest. Beginning in October 1973, the
figures shown include relatively small amounts of gifts to the fund. Figures for 1983–1986 reflect payments from a borrowing trust fund to a lending trust fund for interest on
amounts owed under the interfund borrowing provisions. During 1983–1990, interest paid from the trust fund to the general fund of the Treasury on advance tax transfers is
reflected. The amount shown for 1985 includes an interest adjustment of $102.8 million on unnegotiated checks issued before April 1985.
d. Beginning in 1966, includes payments for vocational rehabilitation services furnished to disabled persons receiving benefits because of their disabilities. Beginning in 1983,
amounts are reduced by amount of reimbursement for unnegotiated benefit checks.
e. Amount equals total receipts less total expenditures, plus amounts borrowed or less amounts repaid under interfund borrowing provisions.
f. Less than $500,000.
SOURCE: Department of the Treasury.
NOTE: . . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

Annual Statistical Supplement, 2003 ♦ 4.3

4.A OASDI: Trust Funds
Table 4.A4—Total annual benefits paid, by type of benefit and trust fund, and as a percentage of personal income,
selected years 1937–2002 (in millions of dollars)
Cash benefits a
Old-Age and
Survivors
Disability
Insurance d
Insurance

Service benefits
Supplementary
Hospital
Medical
Insurance
Insurance

Rehabilitation services b
Old-Age and
Survivors
Disability
Insurance
Insurance

Total benefits
as percentage
of personal
income

Year

Total
benefits

1937
1938
1939

1
10
14

1
10
14

...
...
...

...
...
...

...
...
...

...
...
...

...
...
...

74,300
68,600
73,100

1940
1945
1950

35
274
961

35
274
961

...
...
...

...
...
...

...
...
...

...
...
...

...
...
...

78,600
171,900
229,900

0.2
0.4

1955
1956
1957
1958
1959

4,968
5,715
7,404
8,576
10,298

4,968
5,715
7,347
8,327
9,842

...
...
57
249
457

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

316,800
340,000
359,300
370,000
394,000

1.6
1.7
2.1
2.3
2.6

1960
1961
1962
1963
1964

11,245
12,749
14,461
15,427
16,223

10,677
11,862
13,356
14,217
14,914

568
887
1,105
1,210
1,309

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

412,700
430,300
457,900
481,000
515,800

2.7
3.0
3.2
3.2
3.1

1965
1966
1967
1968
1969

18,311
21,070
25,967
30,651
33,371

16,737
18,267
19,468
22,642
24,209

1,573
1,781
1,939
2,294
2,542

...
891
3,353
4,179
4,739

...
128
1,197
1,518
1,865

...
1
1

...
3
11
16
15

557,400
606,400
650,400
714,500
780,800

3.3
3.5
4.0
4.3
4.3

1970
1971
1972
1973
1974

38,982
45,065
50,269
61,091
70,996

28,796
33,413
37,122
45,741
51,618

3,067
3,758
4,473
5,718
6,903

5,124
5,751
6,318
7,057
9,099

1,975
2,117
2,325
2,526
3,318

2
2
2
3
5

18
24
29
46
54

841,100
905,100
994,300
1,113,400
1,225,600

4.6
5.0
5.1
5.5
5.8

1975
1976
1977
1978
1979

82,611
94,180
106,443
117,894
133,691

58,509
65,699
73,113
80,352
90,556

8,414
9,966
11,463
12,513
13,708

11,315
13,340
15,737
17,682
20,623

4,273
5,080
6,038
7,252
8,708

9
6
8
9
18

91
89
84
86
78

1,331,700
1,475,400
1,637,100
1,848,300
2,081,500

6.2
6.4
6.5
6.4
6.4

1980
1981
1982
1983
1984

156,298
184,450
207,268
224,524
238,682

105,074
123,795
138,800
149,502
157,862

15,437
17,199
17,338
17,530
17,900

25,064
30,342
35,631
39,337
43,257

10,635
13,113
15,455
18,106
19,661

8
8
6
6

78
-8
38
42
1

2,323,900
2,599,400
2,768,400
2,946,900
3,274,800

6.7
7.1
7.5
7.6
7.3

1985
1986
1987
1988
1989

256,723
272,698
284,487
303,717
329,193

167,360
176,845
183,644
195,522
207,977

18,836
19,847
20,512
21,692
22,873

47,580
49,758
49,496
52,517
60,011

22,947
26,239
30,820
33,970
38,294

f

f

...
...
...
...

9
16
16
38

3,515,000
3,712,400
3,962,500
4,272,100
4,599,800

7.3
7.3
7.2
7.1
7.2

1990
1991
1992
1993
1994

356,536
386,912
419,325
449,896
478,775

222,993
240,436
254,939
267,804
279,118

24,803
27,662
31,091
34,598
37,717

66,239
71,549
83,895
93,487
103,282

42,468
47,229
49,367
53,979
58,618

...
...
...
...
...

32
36
33
28
40

4,903,200
5,085,400
5,390,400
5,610,000
5,888,000

7.3
7.6
7.8
8.0
8.1

1995
1996
1997
1998
1999

513,959
544,350
572,542
585,156
595,326

291,682
302,914
316,311
326,817
334,437

40,898
44,174
45,659
48,173
51,331

116,368
128,632
137,762
133,990
128,766

64,972
68,598
72,757
76,125
80,724

...
...
...
...
...

39
31
53
51
68

6,200,900
6,547,400
6,937,000
7,426,000
7,786,500

8.3
8.3
8.3
7.9
7.6

2000
2001
2002

625,060
672,853
714,804

352,706
372,370
388,170

54,938
59,577
65,645

128,458
141,183
149,944

88,893
99,663
110,969

...
...
...

63
60
75

8,406,600
8,685,300
8,948,100

7.4
7.7
8.0

f
f

f

Personal
income c

e
e
e
e

a. Unnegotiated checks not deducted.
b. Vocational rehabilitation services to disabled workers and disabled children under the 1965 Amendments to the Social Security Act and to disabled widow(er)s under the
1967 Amendments to the Social Security Act.
c. Figures subject to revision.
d. For 1937–1939, refunds and lump-sum death payments under the Social Security Act of 1935.
e. Less than 0.05 percent.
f. Less than $500,000.
SOURCES: Department of the Treasury and Bureau of Economic Analysis.
NOTE: . . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

4.4 ♦ Annual Statistical Supplement, 2003

4.A OASDI: Trust Funds
Table 4.A5—Total annual benefits paid from OASI trust fund, by type of benefit, selected years 1937–2002
(in millions of dollars)
Retired-worker and dependents benefits
Wives
Retired
and
workers
husbands
Children

Children

Survivors benefits
Widowed
mothers and
fathers
Widow(er)s

Parents

Special age-72
beneficiaries

Lump-sum
death
payments

...
...
...

...
...
...

1
10
14

Year

Total

1937
1938
1939

1
10
14

...
...
...

...
...
...

...
...
...

...
...
...

...
...
...

...
...
...

1940
1945
1950

35
274
961

15
126
557

2
21
88

a

3
52
135

2
27
49

a

a

2
6

20
89

1
3

...
...
...

9
26
33

1955
1956
1957
1958
1959

4,968
5,715
7,347
8,327
9,842

3,253
3,793
4,888
5,567
6,548

466
536
756
851
982

29
33
43
56
77

532
581
651
720
855

163
177
198
223
263

396
469
653
757
921

16
17
19
20
25

...
...
...
...
...

113
109
139
133
171

1960
1961
1962
1963
1964

10,677
11,862
13,356
14,217
14,914

7,053
7,802
8,813
9,391
9,854

1,051
1,124
1,216
1,258
1,277

92
106
134
146
150

945
1,080
1,171
1,222
1,275

286
316
336
348
354

1,057
1,232
1,470
1,612
1,754

28
31
34
34
33

...
...
...
...
...

164
171
183
206
216

1965
1966
1967
1968
1969

16,737
18,267
19,468
22,642
24,209

10,984
11,727
12,372
14,278
15,385

1,383
1,429
1,456
1,673
1,750

175
216
221
253
260

1,515
1,812
1,855
2,207
2,322

388
415
420
478
490

2,041
2,351
2,545
3,117
3,371

35
35
34
37
36

...
44
313
330
303

217
237
252
269
291

1970
1971
1972
1973
1974

28,796
33,413
37,122
45,741
51,618

18,438
21,544
24,143
29,336
33,369

2,029
2,323
2,532
3,000
3,309

303
352
382
457
533

2,760
3,168
3,433
4,002
4,399

574
630
679
801
898

4,055
4,763
5,326
7,505
8,497

39
41
43
48
49

305
285
263
264
237

294
306
320
329
327

1975
1976
1977
1978
1979

58,509
65,699
73,113
80,352
90,556

38,079
43,083
48,186
53,255
60,379

3,719
4,117
4,559
4,983
5,554

634
736
830
921
1,014

4,888
5,336
5,759
6,093
6,608

1,009
1,113
1,191
1,284
1,409

9,597
10,757
12,068
13,278
15,071

50
51
52
51
52

196
174
157
142
128

337
332
312
344
340

1980
1981
1982
1983
1984

105,074
123,795
138,800
149,502
157,862

70,358
83,614
95,123
103,578
109,957

6,405
7,543
8,539
9,328
9,860

1,142
1,321
1,223
1,143
1,135

7,389
8,307
8,204
7,911
7,775

1,572
1,760
1,861
1,771
1,474

17,638
20,749
23,488
25,425
27,325

55
58
59
56
53

119
110
100
85
71

394
332
203
205
212

1985
1986
1987
1988
1989

167,360
176,845
183,644
195,522
207,977

116,823
123,584
128,513
136,987
146,027

10,517
11,152
11,598
12,292
13,054

1,140
1,166
1,183
1,219
1,249

7,762
7,843
7,846
8,120
8,254

1,474
1,457
1,388
1,392
1,401

29,330
31,345
32,833
35,233
37,723

51
48
44
43
41

57
47
36
29
21

207
203
203
208
206

1990
1991
1992
1993
1994

222,993
240,436
254,939
267,804
279,118

156,756
169,142
179,372
188,440
196,400

13,953
14,986
15,810
16,356
16,854

1,316
1,405
1,494
1,563
1,637

8,564
9,022
9,431
9,897
10,293

1,437
1,490
1,521
1,547
1,551

40,705
44,139
47,060
49,746
52,124

39
38
37
36
34

16
12
9
6
4

206
202
206
214
220

1995
1996
1997
1998
1999

291,682
302,914
316,311
326,817
334,437

205,315
213,423
223,554
232,324
238,478

17,348
17,715
18,154
18,395
18,415

1,715
1,799
1,882
1,940
1,992

10,717
11,217
11,660
11,936
12,125

1,573
1,486
1,466
1,435
1,415

54,761
57,025
59,349
60,540
61,769

32
31
30
29
27

3
1
1

218
218
216
218
216

2000
2001
2002

352,706
372,370
388,170

253,542
268,976
281,624

18,969
19,491
19,884

2,133
2,332
2,475

12,532
13,134
13,690

1,406
1,441
1,476

63,884
66,758
68,782

26
26
25

a
a
a

214
212
213

a
a

a. Less than $500,000.
SOURCE: Social Security Administration, Master Beneficiary Record, 100 percent data.
NOTES: Unnegotiated checks not deducted.
. . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

Annual Statistical Supplement, 2003 ♦ 4.5

4.A OASDI: Trust Funds
Table 4.A6—Total annual benefits paid from DI trust fund, by type of benefit, 1957–2002 (in millions of dollars)
Year

Total

Disabled workers

Wives and husbands

Children

1957
1958
1959

57
249
457

57
246
390

...
1
29

...
1
38

1960
1961
1962
1963
1964

568
887
1,105
1,210
1,309

489
724
888
965
1,044

32
54
68
73
79

48
109
149
172
186

1965
1966
1967
1968
1969

1,573
1,781
1,939
2,294
2,542

1,246
1,394
1,519
1,804
2,014

95
108
113
131
139

232
280
307
360
389

1970
1971
1972
1973
1974

3,067
3,758
4,473
5,718
6,903

2,448
3,028
3,626
4,676
5,662

165
192
224
281
320

454
539
623
760
920

1975
1976
1977
1978
1979

8,414
9,966
11,463
12,513
13,708

6,908
8,190
9,456
10,315
11,333

385
447
505
541
581

1,121
1,328
1,503
1,657
1,794

1980
1981
1982
1983
1984

15,437
17,199
17,338
17,530
17,900

12,816
14,379
14,811
15,196
15,623

638
684
652
607
536

1,983
2,136
1,875
1,728
1,741

1985
1986
1987
1988
1989

18,836
19,847
20,512
21,692
22,873

16,483
17,409
18,053
19,165
20,314

545
547
532
529
523

1,809
1,890
1,926
1,999
2,036

1990
1991
1992
1993
1994

24,803
27,662
31,091
34,598
37,717

22,113
24,738
27,856
30,913
33,711

531
550
572
572
579

2,159
2,374
2,663
3,112
3,428

1995
1996
1997
1998
1999

40,898
44,174
45,659
48,173
51,331

36,610
39,625
41,083
43,467
46,459

577
515
479
457
433

3,711
4,034
4,098
4,249
4,439

2000
2001
2002

54,938
59,577
65,645

49,848
54,244
59,886

421
416
423

4,670
4,917
5,337

SOURCE: Social Security Administration, Master Beneficiary Record, 100 percent data.
NOTES: Unnegotiated checks not deducted.
. . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

4.6 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B1—Number of workers with taxable earnings, amount of earnings, and Social Security numbers issued,
selected years 1937–2002
Number a (thousands)

Earnings
Reported taxable a

New
entrants
into
covered
employment c

Total in
covered
employment d
(millions of
dollars)

Amount
(millions of
dollars)

Percentage
of total

Total
earnings d

Reported
taxable

Social
Security
numbers
issued b
(thousands)

Average per worker (dollars)

Year

Total

With
maximum
earnings

1937
1940
1945

32,900
35,390
46,390

1,031
1,196
6,361

32,900
4,430
3,480

32,200
35,700
71,600

29,620
32,970
62,950

92.0
92.4
87.9

979
1,009
1,543

900
932
1,357

37,139
5,227
3,321

1950
1951
1952
1953
1954

48,280
58,120
59,580
60,840
59,610

13,936
14,270
16,606
19,013
18,866

2,520
6,000
3,500
3,090
2,360

109,800
148,900
159,900
173,000
171,900

87,500
120,770
128,640
135,870
133,520

79.7
81.1
80.5
78.5
77.7

2,274
2,562
2,684
2,844
2,884

1,812
2,078
2,159
2,233
2,240

2,891
4,927
4,363
3,464
2,743

1955
1956
1957
1958
1959

65,200
67,610
70,590
69,770
71,700

16,704
19,236
21,095
21,328
19,112

4,760
3,660
3,380
2,450
3,180

196,100
216,800
233,900
236,500
255,000

157,540
170,720
181,380
180,720
202,310

80.3
78.8
77.5
76.4
79.3

3,008
3,207
3,314
3,390
3,556

2,416
2,525
2,569
2,590
2,822

4,323
4,376
3,639
2,290
3,388

1960
1961
1962
1963
1964

72,530
72,820
74,280
75,540
77,430

20,310
21,265
23,154
24,570
26,717

3,130
2,990
3,360
3,520
3,890

265,200
270,700
289,000
302,300
324,500

207,000
209,640
219,050
225,550
236,390

78.1
77.4
75.8
74.6
72.8

3,656
3,717
3,891
4,002
4,191

2,854
2,879
2,949
2,986
3,053

3,415
3,370
4,519
8,617
5,623

1965
1966
1967
1968
1969

80,680
84,600
87,040
89,380
92,060

29,136
20,498
22,948
19,120
22,577

4,620
5,080
4,530
4,830
5,160

351,700
390,700
422,300
460,000
502,800

250,730
312,540
329,960
375,840
402,550

71.3
80.0
78.1
81.7
80.1

4,359
4,618
4,852
5,147
5,462

3,108
3,694
3,791
4,205
4,373

6,131
6,506
5,920
5,862
6,289

1970
1971
1972
1973
1974

93,090
93,340
96,240
99,830
101,330

24,224
26,404
24,074
20,250
15,310

4,440
4,470
5,150
5,670
4,940

531,600
559,700
617,900
686,700
746,700

415,600
426,960
484,110
561,850
636,760

78.2
76.3
78.3
81.8
85.3

5,711
5,996
6,420
6,879
7,369

4,464
4,574
5,030
5,628
6,284

6,132
6,401
9,564
10,038
7,998

1975
1976
1977
1978
1979

100,200
102,600
105,800
110,600
112,700

15,070
15,330
15,700
17,050
11,236

4,120
4,700
5,070
5,460
4,883

787,600
874,700
960,100
1,092,600
1,222,200

664,660
737,700
816,550
915,600
1,067,000

84.4
84.3
85.0
83.8
87.3

7,860
8,525
9,075
9,879
10,845

6,633
7,190
7,718
8,278
9,468

8,164
9,043
7,724
5,260
5,213

1980
1981
1982
1983
1984

113,000
113,000
111,800
112,100
116,300

9,903
8,594
7,929
7,044
7,421

4,243
4,090
3,408
3,914
4,743

1,328,800
1,450,900
1,516,600
1,615,200
1,800,800

1,180,700
1,294,100
1,365,300
1,454,100
1,608,800

88.9
89.2
90.0
90.0
89.3

11,759
12,840
13,565
14,409
15,484

10,449
11,452
12,212
12,971
13,833

5,984
5,581
5,362
6,699
5,980

1985
1986
1987
1988
1989

119,800
122,900
125,600
129,600
131,700

7,766
7,624
7,735
8,483
8,110

4,756
4,641
4,956
5,489
4,856

1,936,800
2,081,800
2,237,000
2,432,800
2,578,700

1,722,600
1,844,400
1,960,000
2,088,400
2,239,500

88.9
88.6
87.6
85.8
86.8

16,167
16,939
17,811
18,772
19,580

14,379
15,007
15,605
16,114
17,005

5,720
5,711
11,621
11,370
8,049

1990
1991
1992
1993
1994

133,600
133,000
134,000
136,100
138,200

7,575
7,483
7,667
7,617
7,518

4,012
3,541
3,918
4,204
4,591

2,703,800
2,760,500
2,917,800
3,022,900
3,197,000

2,358,000
2,422,500
2,532,900
2,636,100
2,785,200

87.2
87.8
86.8
87.2
87.1

20,238
20,756
21,775
22,211
23,133

17,650
18,214
18,902
19,369
20,153

9,054
7,509
6,819
5,893
5,816

1995
1996
1997
1998
1999 e

141,000
143,400
146,145
148,786
151,293

8,191
8,682
9,022
9,372
9,211

4,621
4,620
4,710
4,904
4,957

3,401,800
3,587,600
3,858,721
4,172,641
4,461,350

2,919,100
3,073,500
3,285,000
3,524,900
3,749,700

85.8
85.7
85.1
84.5
84.0

24,126
25,018
26,403
28,045
29,488

20,703
21,433
22,478
23,691
24,784

5,465
5,533
5,413
5,288
5,306

2000 e
2001 f
2002 g

153,517
153,743
152,795

9,484
9,092

4,958
4,425

4,784,417
4,869,241
4,960,638

3,987,100
4,142,573
4,227,023

83.3
85.1
85.2

31,165
31,671
32,466

25,972
26,945
27,665

5,476
5,883
5,699

h

h

a. Relates to wage and salary workers for 1937–1950. Beginning in 1951, includes self-employment. See Table 2.A3 for annual maximum taxable earnings.
b. Excludes railroad account numbers. Since program began, 414 million Social Security numbers have been issued. Some individuals have been issued more than one
number.
c. Workers reported with first taxable earnings under program in specified year. During 1937–2001, 309.5 million different persons reported with taxable earnings.
d. Total wages, including estimated amounts above taxable limit, for 1937–1950. Beginning in 1951, also includes reported total net earnings of self-employed persons.
e. Preliminary data.
f. Taxable earnings are preliminary estimates based on Social Security data; employment data are preliminary estimates based on data from Bureau of Labor Statistics.
g. Preliminary estimates based on data from Bureau of Labor Statistics and the Bureau of Economic Analysis.
h. Data not available.
SOURCES: Social Security Administration, Master Earnings File, 1 percent sample; Bureau of Labor Statistics; and Bureau of Economic Analysis.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.7

4.B OASDI: Covered Workers
Table 4.B2—Number with taxable earnings and amount of earnings, by type of earnings, 1951–2002
Wage and salary
Number a
(thousands)

Self-employed
Average per worker
(dollars)

Year

Wage and
salary

Selfemployed

Total in
covered
employment b
(millions of
dollars)

1951
1952
1953
1954

54,630
56,060
57,220
55,940

4,190
4,240
4,340
4,350

132,500
143,500
156,000
155,100

111,250
118,880
125,840
123,410

84.0
82.8
80.7
79.6

2,425
2,560
2,726
2,773

2,036
2,121
2,199
2,206

16,400
16,400
17,000
16,800

9,520
9,760
10,030
10,110

1955
1956
1957
1958
1959

59,560
61,560
64,730
64,040
66,000

6,810
7,390
7,150
7,130
7,060

171,600
188,500
205,500
208,000
225,100

141,810
153,010
163,990
163,140
183,620

82.6
81.2
79.8
78.4
81.6

2,881
3,062
3,175
3,248
3,411

2,381
2,486
2,533
2,547
2,782

24,500
28,300
28,400
28,500
29,900

1960
1961
1962
1963
1964

66,980
67,360
68,890
70,310
72,230

6,870
6,790
6,720
6,590
6,480

236,000
240,700
257,700
270,600
290,900

188,580
190,850
200,130
206,840
217,430

79.9
79.3
77.7
76.4
74.7

3,523
3,573
3,741
3,849
4,027

2,815
2,833
2,905
2,942
3,010

1965
1966
1967
1968
1969

75,430
79,460
82,020
84,470
87,200

6,550
6,630
6,470
6,570
6,350

311,400
346,700
377,500
413,600
455,700

230,830
287,860
305,670
348,500
375,010

74.1
83.0
81.0
84.3
82.3

4,128
4,363
4,603
4,896
5,226

1970
1971
1972
1973
1974

88,180
88,460
91,220
94,610
96,190

6,270
6,290
6,600
7,100
7,040

483,600
509,000
563,300
624,400
681,600

388,680
399,550
452,050
523,450
594,400

80.4
78.5
80.3
83.8
87.2

1975
1976
1977
1978
1979

94,900
97,230
100,450
104,810
106,900

7,000
7,400
7,480
8,040
8,200

717,200
797,200
879,500
998,900
1,122,000

621,100
689,200
763,600
856,100
997,500

1980
1981
1982
1983
1984

107,200
107,300
105,800
105,900
109,900

8,200
8,250
8,550
9,200
9,900

1,231,000
1,352,000
1,418,000
1,502,000
1,671,500

1985
1986
1987
1988
1989

113,100
115,900
118,200
122,100
123,900

10,600
11,200
12,000
12,400
12,900

1990
1991
1992
1993
1994

126,100
125,200
126,000
128,100
130,100

1995
1996
1997
1998
1999 e
2000 e
2001 f
2002 g
a.
b.
c.
d.
e.
f.
g.

Reported taxable
Amount d Percentage
(millions of
of total
wages
dollars)

Total
wages b

Total in
covered
employment c
Reported
(millions of
taxable d
dollars)

Reported taxable
Amount d Percentage
(millions of of total selfdollars) employment

Average per worker
(dollars)
Total
earnings c

Reported
taxable d

58.0
59.5
59.0
60.2

3,914
3,868
3,917
3,862

2,272
2,302
2,311
2,324

15,730
17,710
17,390
17,580
18,690

64.2
62.6
61.2
61.7
62.5

3,598
3,829
3,972
3,997
4,235

2,310
2,396
2,432
2,466
2,647

29,200
30,000
31,300
31,700
33,600

18,420
18,790
18,920
18,710
18,960

63.1
62.6
60.4
59.0
56.4

4,250
4,418
4,658
4,810
5,185

2,681
2,767
2,815
2,839
2,926

3,060
3,623
3,727
4,126
4,301

40,300
44,000
44,800
46,400
47,100

19,900
24,680
24,290
27,340
27,540

49.4
56.1
54.2
58.9
58.5

6,153
6,637
6,924
7,062
7,417

3,038
3,722
3,754
4,161
4,337

5,484
5,754
6,175
6,600
7,086

4,408
4,517
4,956
5,533
6,179

48,000
50,700
54,600
62,300
65,200

26,920
27,410
32,060
38,400
42,360

56.1
54.1
58.7
61.6
65.0

7,656
8,060
8,273
8,775
9,261

4,293
4,358
4,858
5,408
6,017

86.6
86.4
86.8
85.7
88.9

7,557
8,199
8,935
9,531
10,496

6,545
7,088
7,602
8,168
9,331

70,400
76,800
80,600
93,700
100,200

43,560
48,500
52,950
59,500
69,500

61.9
63.2
65.7
63.5
69.4

10,057
10,378
10,775
11,654
12,220

6,223
6,554
7,079
7,400
8,476

1,109,000
1,220,000
1,290,000
1,369,000
1,515,000

90.1
90.2
91.0
91.1
90.6

11,483
12,600
13,403
14,183
15,209

10,345
11,370
12,193
12,927
13,785

97,800
98,900
98,600
113,200
129,300

71,700
74,100
75,300
85,100
93,800

73.3
74.9
76.4
75.2
72.5

11,927
11,988
11,532
12,304
13,061

8,744
8,982
8,807
9,250
9,475

1,794,500
1,921,000
2,057,100
2,224,700
2,367,800

1,621,000
1,730,800
1,835,100
1,952,000
2,096,000

90.3
90.1
89.2
87.7
88.5

15,866
16,575
17,404
18,220
19,111

14,332
14,934
15,525
15,987
16,917

142,300
160,800
179,900
208,100
210,900

101,600
113,600
124,900
136,400
143,500

71.4
70.6
69.4
65.5
68.0

13,425
14,357
14,992
16,782
16,349

9,585
10,143
10,408
11,000
11,124

12,500
12,800
13,100
13,200
13,300

2,510,000
2,565,000
2,711,000
2,808,900
2,964,100

2,222,000
2,283,000
2,386,000
2,483,400
2,624,500

88.5
89.0
88.0
88.4
88.5

19,905
20,487
21,516
21,927
22,783

17,621
18,235
18,937
19,386
20,173

193,800
195,500
206,800
214,000
232,900

136,000
139,500
146,600
152,700
160,700

70.2
71.4
71.0
71.4
69.0

15,504
15,273
15,786
16,212
17,511

10,880
10,898
11,214
11,568
12,083

132,800
135,100
137,765
140,386
142,653

13,500
13,900
14,020
14,230
14,550

3,159,100
3,331,900
3,586,721
3,882,341
4,154,350

2,754,300
2,901,700
3,104,300
3,333,700
3,548,100

87.2
87.1
86.5
85.9
85.4

23,788
24,662
26,035
27,655
29,122

20,740
21,478
22,533
23,747
24,872

242,700
255,700
272,000
290,300
307,000

164,800
171,800
180,700
191,200
201,600

67.9
67.2
66.4
65.9
65.7

17,978
18,396
19,401
20,401
21,100

12,207
12,360
12,889
13,436
13,856

144,667
144,803
144,034

14,800
14,950
14,619

4,460,317
4,541,341
4,617,951

3,778,900
3,928,000
4,002,759

84.7
86.5
86.7

30,832
31,362
32,062

26,121
27,127
27,790

324,100
327,900
342,687

208,200
214,573
224,264

64.2
65.4
65.4

21,899
21,933
23,441

14,068
14,353
15,341

Represents total number in specified type of employment. Persons with both types of covered employment during the year are included in each type.
Total wages, including estimated amounts above the taxable limit.
Reported self-employment net earnings.
See Table 2.A3 for annual maximum taxable earnings.
Preliminary data.
Taxable earnings are preliminary estimates based on Social Security data; employment data are preliminary estimates based on data from Bureau of Labor Statistics.
Preliminary estimates based on data from Bureau of Labor Statistics and the Bureau of Economic Analysis.

SOURCES: Social Security Administration, Master Earnings File, 1 percent sample; Bureau of Labor Statistics; and Bureau of Economic Analysis.
NOTE: See Table 4.B1 for wage and salary data before 1951.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.8 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B3—Number of workers and median annual earnings, by type of earnings and sex,
selected years 1937–2001
Year

Total

All workers a
Men

Women

Subtotal

Wage and salary
Men

Women

Subtotal

Self-employed b
Men

Women

Number (thousands)
1937
1940
1945
1950
1955

32,900
35,390
46,390
48,280
65,200

23,810
25,570
28,820
32,620
43,140

9,090
9,820
17,570
15,660
22,060

32,900
35,390
46,390
48,280
59,560

23,810
25,570
28,820
32,620
38,240

9,090
9,820
17,570
15,660
21,320

...
...
...
...
6,810

...
...
...
...
5,980

...
...
...
...
830

1960
1965
1970
1975
1980

72,530
80,680
93,090
100,200
113,000

47,900
51,990
57,330
59,520
64,288

24,630
28,690
35,760
40,680
48,712

66,980
75,430
88,180
94,900
107,200

43,100
47,500
53,180
55,140
59,751

23,880
27,930
35,000
39,760
47,449

6,870
6,550
6,270
7,000
8,200

5,990
5,640
5,370
5,790
6,407

880
910
900
1,210
1,793

1985
1986
1987
1988
1989

119,800
122,900
125,600
129,600
131,700

66,113
67,412
68,591
70,596
71,517

53,687
55,488
57,009
59,004
60,183

113,100
115,900
118,200
122,100
123,900

61,285
62,398
63,306
65,270
66,105

51,815
53,502
54,894
56,830
57,795

10,600
11,200
12,000
12,400
12,900

7,623
7,932
8,450
8,630
8,842

2,977
3,268
3,550
3,770
4,058

1990
1991
1992
1993
1994

133,600
133,000
134,000
136,100
138,200

72,291
71,787
72,016
73,154
73,989

61,309
61,213
61,984
62,946
64,211

126,100
125,200
126,000
128,100
130,100

67,064
66,406
66,543
67,673
68,481

59,036
58,794
59,457
60,427
61,619

12,500
12,800
13,100
13,200
13,300

8,526
8,669
8,797
8,840
8,840

3,974
4,131
4,303
4,360
4,460

1995
1996
1997
1998
1999 c

141,000
143,400
146,145
148,786
151,293

75,444
76,241
77,498
78,671
79,868

65,556
67,158
68,647
70,115
71,425

132,800
135,100
137,765
140,386
142,653

69,900
70,670
71,910
73,111
74,206

62,900
64,429
65,855
67,275
68,447

13,500
13,900
14,020
14,230
14,550

8,908
9,074
9,078
9,108
9,240

4,592
4,826
4,942
5,122
5,310

2000 c
2001 c

153,517
153,743

80,922
80,992

72,591
72,748

144,667
144,803

75,132
75,218

69,535
69,585

14,800
14,950

9,266
9,229

5,534
5,721

Median earnings d (dollars)
1937
1940
1945
1950
1955

761
746
1,159
1,926
2,438

945
935
1,654
2,532
3,315

484
472
770
1,124
1,351

761
746
1,159
1,926
2,383

945
935
1,654
2,532
3,348

484
472
770
1,124
1,338

...
...
...
...
2,397

...
...
...
...
2,550

...
...
...
...
1,552

1960
1965
1970
1975
1980

2,894
3,414
4,375
5,803
8,549

3,879
4,685
6,180
8,250
11,963

1,679
1,984
2,735
3,730
6,012

2,833
3,319
4,317
5,790
8,612

3,875
4,630
6,173
8,315
12,166

1,676
1,979
2,770
3,794
6,106

2,903
3,858
5,104
6,700
8,699

3,129
4,242
5,683
7,846
10,572

1,695
1,898
2,360
3,113
4,133

1985
1986
1987
1988
1989

11,265
11,831
12,327
12,825
13,314

14,959
15,579
16,073
16,613
17,014

8,293
8,796
9,261
9,753
10,265

11,638
12,064
12,576
13,086
13,762

15,706
16,025
16,559
17,055
17,800

8,525
9,019
9,500
9,992
10,577

9,877
10,424
10,886
11,478
11,602

12,301
12,908
13,401
14,090
14,538

5,529
6,152
6,573
7,036
7,010

1990
1991
1992
1993
1994

13,898
14,278
14,739
15,000
15,560

17,582
17,765
18,208
18,430
19,249

10,837
11,369
11,842
12,093
12,422

14,432
14,859
15,386
15,665
16,010

18,483
18,730
19,292
19,516
19,969

11,199
11,767
12,268
12,546
12,807

11,220
11,125
11,392
11,595
12,051

14,097
13,703
13,966
14,128
14,737

6,898
7,186
7,452
7,720
8,002

1995
1996
1997
1998
1999 c

16,108
16,712
17,562
18,513
19,266

19,907
20,779
21,814
23,028
23,925

12,897
13,335
14,043
14,834
15,482

16,618
17,256
18,127
19,103
19,885

20,672
21,591
22,693
23,920
24,839

13,296
13,763
14,482
15,290
15,956

12,198
12,481
12,910
13,462
14,046

14,931
15,300
15,911
16,565
17,334

8,301
8,628
8,944
9,365
9,795

2000 c
2001 c

20,217
20,826

25,021
25,574

16,302
16,968

20,872
21,516

25,978
26,528

16,814
17,518

14,399
14,349

17,785
17,881

10,118
10,215

a.
b.
c.
d.

Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total.
Not covered before 1951.
Preliminary data.
For all workers, medians relate to combined earnings from wage and salary employment and self-employment. For all wage and salary workers, medians relate to wages
and salaries only.

SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.9

4.B OASDI: Covered Workers
Table 4.B4—Percentage of workers with earnings below annual maximum taxable, by sex,
selected years 1937–2001
Year

Total

All workers a
Men

Women

1937
1940
1945

96.9
96.6
86.3

95.8
95.4
78.6

99.7
99.7
98.9

...
...
...

1950
1951
1952
1953
1954

71.1
75.5
72.1
68.8
68.4

59.9
64.6
60.0
55.5
55.4

94.6
96.7
95.4
93.8
93.0

1955
1956
1957
1958
1959

74.4
71.6
70.1
69.4
73.3

63.4
59.7
58.7
58.4
62.7

1960
1961
1962
1963
1964

72.0
70.8
68.8
67.5
65.5

1965
1966
1967
1968
1969

All self-employed workers
Total
Men

Women

Annual maximum
taxable earnings (dollars)

...
...
...

...
...
...

3,000
3,000
3,000

...
65.4
64.1
62.9
62.6

...
62.6
61.2
59.5
58.8

...
83.3
83.5
83.1
82.8

3,000
3,600
3,600
3,600
3,600

95.9
94.5
93.1
91.8
94.3

74.0
71.2
69.6
68.8
72.0

72.3
69.1
67.2
66.3
69.6

86.3
86.0
85.5
85.7
88.0

4,200
4,200
4,200
4,200
4,800

60.9
59.6
57.1
55.5
53.1

93.5
92.4
91.1
90.0
88.5

71.6
70.3
67.9
66.3
63.8

69.2
67.8
65.3
63.4
60.5

87.7
86.9
85.3
85.3
84.4

4,800
4,800
4,800
4,800
4,800

63.9
75.8
73.6
78.6
75.5

51.0
64.4
61.5
68.0
62.8

87.3
95.6
94.2
96.3
96.0

59.5
68.3
66.7
70.3
68.3

55.8
65.0
63.2
67.2
65.0

82.5
88.4
87.5
89.7
89.1

4,800
6,600
6,600
7,800
7,800

1970
1971
1972
1973
1974

74.0
71.7
75.0
79.7
84.9

61.8
59.1
62.9
68.9
76.2

93.5
91.7
93.9
96.2
97.8

67.8
66.7
68.8
71.1
75.7

64.3
63.3
65.0
67.4
72.1

88.3
86.2
89.7
91.0
94.0

7,800
7,800
9,000
10,800
13,200

1975
1976
1977
1978
1979

84.9
85.1
85.2
84.6
90.0

76.4
76.3
76.3
75.4
83.6

97.5
97.5
97.5
97.1
98.6

77.8
78.6
79.3
79.3
84.3

74.4
75.1
75.8
75.6
81.3

93.9
94.3
94.1
94.0
95.9

14,100
15,300
16,500
17,700
22,900

1980
1981
1982
1983
1984

91.2
92.4
92.9
93.7
93.6

85.5
87.4
88.3
89.6
89.4

98.8
99.0
98.9
99.0
98.9

86.9
89.4
91.0
92.0
91.8

84.2
87.1
88.8
90.0
89.7

96.6
97.2
97.7
97.7
97.6

25,900
29,700
32,400
35,700
37,800

1985
1986
1987
1988
1989

93.5
93.8
93.9
93.5
93.8

89.3
89.7
89.9
89.4
90.1

98.8
98.7
98.6
98.3
98.3

92.0
92.3
92.5
91.7
92.4

89.8
90.2
90.4
89.4
90.1

97.5
97.5
97.5
97.1
97.3

39,600
42,000
43,800
45,000
48,000

1990
1991
1992
1993
1994

94.3
94.4
94.3
94.4
94.6

90.9
91.1
91.0
91.3
91.4

98.4
98.3
98.1
98.1
98.1

93.3
93.6
93.6
93.7
93.9

91.3
91.6
91.7
91.9
92.0

97.7
97.7
97.6
97.4
97.5

51,300
53,400
55,500
57,600
60,600

1995
1996
1997
1998
1999 b

94.2
93.9
93.8
93.7
93.9

91.0
90.6
90.5
90.3
90.7

97.9
97.7
97.6
97.5
97.5

93.9
93.9
93.8
94.0
94.2

92.0
92.0
91.9
92.2
92.3

97.5
97.4
97.3
97.3
97.4

61,200
62,700
65,400
68,400
72,600

2000 b
2001 b

93.8
94.1

90.6
91.0

97.4
97.5

94.2
94.6

92.3
92.7

97.3
97.5

76,200
80,400

a. For 1937–1950, relates to wage and salary workers. Beginning in 1951, includes self-employed workers.
b. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.10 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B5—Number of workers, by sex and age, selected years 1937–2001 (in thousands)
Year

Total,
all ages

Under
20

20–24

25–29

30–34

35–39

40–44

1937
1940
1945
1950
1955
1960
1965

32,900
35,390
46,390
48,280
65,200
72,530
80,680

3,277
2,963
6,313
4,469
5,410
6,328
8,556

6,302
6,481
5,908
7,057
7,065
8,749
11,066

5,480
5,794
5,571
6,732
7,499
7,461
8,261

4,413
4,904
5,495
5,991
7,801
7,812
7,488

3,688
3,930
5,288
5,609
7,458
8,301
8,120

3,055
3,342
4,623
5,016
7,222
7,938
8,550

1970
1975
1980
1985
1990

93,090
100,200
113,000
119,800
133,600

10,790
11,939
12,372
10,685
10,907

14,945
16,419
18,403
17,727
16,760

10,587
13,852
16,464
18,012
18,701

8,492
10,304
14,184
16,193
18,696

8,028
8,644
10,982
14,276
17,008

1995
1996
1997
1998
1999 b

141,000
143,400
146,145
148,786
151,293

10,832
11,156
11,402
11,904
12,228

15,465
15,251
15,486
15,712
16,093

17,078
17,184
17,156
17,010
16,728

18,692
18,389
18,033
17,694
17,480

2000 b
2001 b

153,517
153,743

12,234
11,541

16,523
16,766

16,237
15,831

17,485
17,421

45–49

70–71

72 or
older

97
451
975
979
2,091
1,989
2,027

...
106
214
210
537
419
424

...
152
333
306
734
912
943

2,692
2,543
2,632
2,726
2,854

2,362
2,139
2,292
2,206
2,687

475
444
491
489
605

1,003
951
1,046
1,097
1,362

2,440
2,520
2,569
2,687
2,759

2,777
2,804
2,902
2,991
3,097

2,836
2,863
2,913
2,970
3,015

699
698
731
753
774

1,704
1,772
1,865
1,932
2,036

9,646
10,238

2,857
2,958

3,259
3,329

3,186
3,239

860
854

2,235
2,250

50–54

55–59

60–61

62–64

65–69

2,580
2,706
4,061
4,076
6,507
7,432
7,936

1,918
2,147
3,275
3,375
5,299
6,448
7,163

1,308
1,488
2,577
2,597
4,261
4,996
5,931

384
437
831
811
1,423
1,643
1,943

398
494
926
1,052
1,893
2,102
2,272

a

8,539
7,997
9,003
10,961
14,984

8,647
8,157
7,961
8,713
11,119

7,700
7,896
7,768
7,435
8,533

6,594
6,626
7,076
6,870
6,928

2,236
2,289
2,326
2,410
2,454

18,760
19,026
19,279
19,366
19,368

16,918
17,481
17,964
18,393
18,717

14,622
15,108
15,369
15,763
16,325

10,510
11,205
12,023
12,662
13,346

7,667
7,942
8,453
8,947
9,328

18,990
18,485

18,989
19,062

16,839
17,222

14,176
14,546

All workers

Men
a

1937
1940
1945
1950
1955
1960
1965

23,810
25,570
28,820
32,620
43,140
47,900
51,990

2,020
1,821
3,343
2,530
3,026
3,748
5,206

4,021
4,072
2,296
4,215
3,980
5,455
6,731

3,797
4,028
3,054
4,497
5,019
5,148
5,574

3,237
3,545
3,502
4,135
5,345
5,464
5,153

3,775
2,922
3,486
3,889
5,035
5,591
5,416

2,387
2,550
3,150
3,419
4,846
5,188
5,464

2,091
2,151
2,840
2,827
4,327
4,818
5,002

1,606
1,770
2,409
2,417
3,595
4,183
4,536

1,110
1,265
1,984
1,951
2,995
3,336
3,803

330
373
664
635
1,012
1,125
1,274

351
434
765
843
1,387
1,480
1,519

85
403
838
815
1,566
1,392
1,359

...
96
189
181
414
293
280

...
140
300
266
593
697
673

1970
1975
1980
1985
1990

57,330
59,520
64,288
66,114
72,292

6,308
6,635
6,620
5,547
5,690

8,639
9,122
9,971
9,432
8,835

6,760
8,245
9,278
9,870
10,131

5,564
6,440
8,206
9,066
10,251

5,126
5,311
6,372
7,920
9,216

5,287
4,831
5,178
6,050
7,977

5,242
4,891
4,590
4,838
5,976

4,671
4,729
4,516
4,186
4,651

4,084
4,023
4,152
3,932
3,857

1,392
1,418
1,391
1,408
1,381

1,730
1,595
1,597
1,593
1,619

1,522
1,352
1,411
1,297
1,526

321
285
309
289
358

684
643
697
686
823

1995
1996
1997
1998
1999 b

75,443
76,241
77,498
78,671
79,868

5,590
5,672
5,823
6,068
6,210

8,069
7,876
7,943
8,029
8,210

9,097
9,074
9,017
8,895
8,737

10,146
9,935
9,697
9,472
9,331

10,106
10,198
10,280
10,345
10,349

8,966
9,240
9,498
9,684
9,851

7,663
7,873
7,997
8,196
8,484

5,620
5,963
6,376
6,673
6,999

4,193
4,307
4,578
4,835
5,024

1,374
1,416
1,423
1,476
1,519

1,547
1,569
1,641
1,690
1,739

1,614
1,629
1,650
1,688
1,715

405
403
433
444
456

1,053
1,086
1,141
1,177
1,242

2000 b
2001 b

80,922
80,992

6,199
5,806

8,434
8,551

8,451
8,269

9,308
9,261

10,147
9,887

9,992
10,040

8,765
8,986

7,387
7,563

5,173
5,469

1,577
1,616

1,807
1,849

1,824
1,856

505
490

1,352
1,348

1937
1940
1945
1950
1955
1960
1965

9,090
9,820
17,570
15,660
22,060
24,630
28,690

1,257
1,142
2,970
1,939
2,384
2,580
3,350

2,281
2,409
3,612
2,842
3,085
3,294
4,335

1,683
1,766
2,517
2,235
2,480
2,313
2,687

1,176
1,359
1,993
1,856
2,456
2,348
2,335

913
1,008
1,802
1,720
2,423
2,710
2,704

668
792
1,473
1,597
2,376
2,750
3,086

489
555
1,221
1,249
2,180
2,614
2,934

312
377
866
958
1,704
2,265
2,627

198
218
593
646
1,266
1,660
2,128

54
64
167
176
411
518
669

47
60
161
209
506
622
753

12
48
137
164
525
597
668

...
10
25
29
123
126
144

...
12
33
40
141
233
270

1970
1975
1980
1985
1990

35,760
40,680
48,712
53,686
61,309

4,482
5,304
5,752
5,138
5,217

6,306
7,297
8,432
8,295
7,925

3,827
5,607
7,186
8,142
8,570

2,928
3,864
5,978
7,127
8,445

2,902
3,333
4,610
6,356
7,792

3,252
3,166
3,825
4,911
7,007

3,405
3,266
3,371
3,875
5,143

3,029
3,167
3,252
3,249
3,882

2,510
2,603
2,924
2,938
3,071

844
871
935
1,002
1,073

962
948
1,035
1,233
1,235

840
787
881
909
1,161

154
159
182
200
247

319
308
349
411
540

1995
1996
1997
1998
1999 b

65,557
67,158
68,647
70,115
71,425

5,241
5,483
5,579
5,837
6,018

7,396
7,375
7,543
7,683
7,882

7,981
8,110
8,139
8,115
7,991

8,546
8,454
8,336
8,222
8,149

8,654
8,829
8,998
9,021
9,019

7,951
8,241
8,466
8,709
8,866

6,959
7,236
7,372
7,567
7,841

4,891
5,242
5,648
5,989
6,346

3,474
3,634
3,875
4,113
4,304

1,066
1,104
1,146
1,212
1,240

1,230
1,235
1,261
1,302
1,358

1,222
1,234
1,264
1,283
1,299

295
295
298
308
317

651
685
724
755
794

2000 b
2001 b

72,591
72,748

6,034
5,735

8,089
8,214

7,785
7,562

8,177
8,160

8,842
8,597

8,997
9,021

8,073
8,236

6,789
6,983

4,473
4,768

1,280
1,343

1,452
1,480

1,362
1,383

356
364

882
902

Women
a

a. Represents workers attaining age 65 during the year. Workers aged 65 or older were not covered under the program in that year.
b. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTES: Age refers to age attained during year.
. . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.11

4.B OASDI: Covered Workers
Table 4.B6—Median earnings of workers, by sex and age, selected years 1937–2001 (in dollars)
Year

Total,
all ages

Under
20

20–24

25–29

30–34

35–39

40–44

1937
1940
1945
1950
1955
1960
1965

761
746
1,159
1,926
2,438
2,894
3,414

170
140
288
385
443
561
613

570
498
669
1,376
1,601
1,917
2,326

829
764
818
1,971
2,689
3,138
3,919

998
934
1,383
2,312
3,173
3,738
4,540

1,061
1,041
1,617
2,456
3,233
3,903
4,747

1,126
1,064
1,842
2,473
3,196
3,891
4,756

1970
1975
1980
1985
1990

4,375
5,803
8,549
11,265
13,898

810
1,070
1,646
1,647
1,937

2,988
4,187
6,205
7,136
8,054

5,334
6,795
9,593
12,453
14,687

6,156
8,249
11,510
14,886
17,482

6,339
8,629
12,540
16,458
19,296

1995
1996
1997
1998
1999 b

16,108
16,712
17,562
18,513
19,266

2,076
2,140
2,310
2,515
2,607

8,392
8,562
9,074
9,763
10,137

16,134
16,664
17,596
18,666
19,556

19,654
20,327
21,261
22,453
23,467

2000 b
2001 b

20,217
20,826

2,707
2,695

10,670
10,559

20,579
20,874

24,801
25,534

45–49

70–71

72 or
older

a

512
874
1,482
1,973
1,736
1,590
1,791

...
924
1,341
1,916
1,279
1,140
1,171

...
788
1,307
1,589
1,149
1,252
1,326

5,047
6,620
9,651
11,907
13,021

2,099
2,524
4,451
5,974
6,812

1,578
2,105
3,306
4,330
5,375

1,683
2,137
3,140
3,729
4,536

19,136
19,718
20,514
21,372
22,129

12,961
13,408
14,284
15,229
15,948

7,551
7,692
8,056
8,431
8,945

5,816
6,217
6,387
6,747
6,812

4,681
4,861
5,033
5,302
5,470

26,732
27,679

22,869
23,675

16,554
17,721

9,468
10,535

7,308
7,822

5,599
5,972

50–54

55–59

60–61

62–64

1,121
1,110
2,026
2,517
3,068
3,785
4,665

1,177
1,071
1,874
2,442
2,966
3,643
4,526

1,020
1,018
1,821
2,394
2,728
3,452
4,304

1,010
978
1,782
2,492
2,525
3,166
4,087

927
963
1,739
2,252
2,427
3,052
3,767

6,357
8,725
12,690
16,984
20,664

6,292
8,810
12,784
16,849
20,958

6,105
8,748
12,794
16,528
20,157

5,831
8,299
12,309
15,831
18,584

5,473
7,779
11,606
14,724
17,163

21,629
22,311
23,279
24,345
25,181

23,468
24,116
24,979
25,971
26,789

24,690
25,317
26,264
27,390
28,305

24,090
25,176
26,415
27,609
28,646

21,320
22,083
23,398
24,688
25,576

26,382
27,146

27,828
28,512

29,397
30,097

29,537
30,378

65–69

All workers

Men
1937
1940
1945
1950
1955
1960
1965

945
935
1,654
2,532
3,315
3,879
4,685

174
147
271
402
468
615
710

647
550
422
1,566
1,871
2,116
2,609

1,117
928
813
2,465
3,450
3,942
4,957

1,202
1,143
1,983
2,918
4,079
4,831
6,055

1,286
1,289
2,245
3,102
4,201
5,175
6,481

1,338
1,306
2,405
3,131
4,159
5,167
6,519

1,308
1,320
2,364
3,156
4,005
4,954
6,369

1,232
1,238
2,319
3,018
3,818
4,702
5,921

1,137
1,153
2,170
2,959
3,512
4,416
5,581

1,131
1,088
2,106
2,812
3,201
3,982
4,993

1,008
1,058
2,000
2,618
3,044
3,812
4,784

a

563
950
1,666
2,317
2,164
2,112
2,628

...
917
1,462
2,049
1,498
1,207
1,246

...
899
1,390
1,707
1,292
1,340
1,443

1970
1975
1980
1985
1990

6,180
8,250
11,963
14,959
17,582

930
1,246
1,857
1,771
2,058

3,281
4,870
7,007
8,185
8,945

6,827
8,464
11,880
14,465
16,412

8,131
11,170
15,491
18,642
21,211

8,528
12,131
17,982
22,021
24,424

8,686
12,533
18,720
24,433
27,608

8,735
12,605
18,896
24,385
29,074

8,370
12,270
18,391
23,841
28,027

7,675
11,290
17,585
22,117
25,509

7,051
10,398
15,939
19,953
23,243

6,456
8,700
13,201
16,532
17,408

2,927
2,895
4,902
6,760
7,714

1,662
2,276
3,658
4,977
6,153

1,863
2,371
3,529
4,351
5,129

1995
1996
1997
1998
1999 b

19,907
20,779
21,814
23,028
23,925

2,164
2,234
2,379
2,600
2,718

9,618
9,900
10,356
11,135
11,581

17,810
18,538
19,748
21,040
22,170

23,200
24,024
25,231
26,645
27,768

26,912
27,769
28,874
30,154
31,110

29,732
30,658
31,790
32,996
33,947

32,334
32,850
33,738
34,823
35,685

32,505
33,648
34,890
36,125
36,916

28,260
29,426
31,018
32,577
33,398

24,673
25,177
26,229
27,588
28,334

17,090
17,632
18,159
19,750
20,216

8,133
8,441
8,832
9,286
9,892

6,430
6,715
7,097
7,429
7,344

4,977
5,295
5,300
5,638
5,861

2000 b
2001 b

25,021
25,574

2,789
2,758

12,127
11,857

23,355
23,379

29,323
30,012

32,355
33,055

35,248
35,822

36,930
37,435

37,883
38,315

34,774
35,319

28,771
29,921

21,176
21,976

10,489
12,011

7,907
8,533

6,064
6,455

1937
1940
1945
1950
1955
1960
1965

484
472
770
1,124
1,351
1,679
1,984

163
127
307
362
408
484
539

477
432
811
1,153
1,312
1,558
1,852

602
530
821
1,158
1,406
1,969
2,067

621
590
871
1,196
1,430
1,718
2,069

609
599
971
1,297
1,586
1,899
2,243

604
596
1,026
1,421
1,706
2,075
2,478

589
590
1,018
1,456
1,775
2,205
2,660

576
580
987
1,410
1,768
2,290
2,715

563
562
955
1,416
1,622
2,221
2,764

585
499
946
1,370
1,542
2,040
2,678

582
577
899
1,349
1,445
1,783
2,372

a

366
607
832
1,176
1,057
1,142
1,208

...
999
766
1,399
949
1,007
1,054

...
424
928
1,232
802
1,036
1,093

1970
1975
1980
1985
1990

2,735
3,730
6,012
8,293
10,837

675
905
1,451
1,524
1,816

2,538
3,287
5,083
6,063
7,104

3,151
4,800
7,496
10,251
12,677

2,953
4,454
7,649
10,986
13,642

3,210
4,512
7,495
11,169
14,339

3,498
4,870
7,761
11,163
15,031

3,721
5,168
7,893
11,072
14,920

3,790
5,340
8,079
10,898
14,373

3,747
5,300
7,966
10,714
13,088

3,729
5,020
7,756
10,133
12,194

3,236
4,055
6,044
7,728
9,133

1,674
2,189
3,589
4,959
5,888

1,344
1,895
2,853
3,671
4,387

1,375
1,715
2,569
3,067
3,830

1995
1996
1997
1998
1999 b

12,897
13,335
14,043
14,834
15,482

1,991
2,051
2,243
2,435
2,514

7,232
7,383
7,873
8,529
8,919

14,249
14,637
15,238
16,128
16,936

15,853
16,387
17,150
18,133
18,943

16,547
17,009
17,801
18,625
19,302

18,068
18,532
19,277
20,046
20,695

18,732
19,496
20,325
21,484
22,272

17,937
18,834
19,989
21,088
22,134

16,030
16,728
17,750
18,656
19,606

14,147
14,670
15,762
16,606
17,166

9,882
10,358
11,003
11,646
12,354

6,910
6,971
7,331
7,619
8,025

5,120
5,605
5,638
5,968
6,277

4,376
4,372
4,687
4,871
5,083

2000 b
2001 b

16,302
16,968

2,635
2,633

9,426
9,412

17,804
18,257

20,010
20,801

20,395
21,054

21,563
22,194

23,198
23,988

23,114
24,120

20,686
21,798

18,002
18,707

12,925
14,060

8,475
9,194

6,461
7,066

5,147
5,398

Women

a. Earnings of workers attaining age 65 during the year. Workers aged 65 or older not covered under program in that year.
b. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTES: The amount of median earnings includes estimates above the taxable maximum.
Age refers to age attained during year.
. . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.12 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B7—Number of wage and salary workers, by sex and amount of taxable earnings, 1992–2001
(in thousands)
1,000–
4,999

Workers with earnings below the taxable maximum (by dollar amount of earnings)
5,000–
10,000–
15,000–
20,000–
30,000–
40,000–
50,000–
9,999
14,999
19,999
29,999
39,999
49,999
59,999

60,000–
69,999

70,000–
80,399

Workers with
maximum
earnings

Year

Total

1–
999

1992
1993
1994

126,000
128,100
130,100

9,357
9,655
9,591

19,519
19,395
19,403

17,496
17,521
17,273

15,765
15,808
15,709

14,047
14,092
14,194

20,699
21,134
21,482

12,554
12,786
13,230

7,084
7,371
7,709

2,422
3,325
4,310

...
...
277

...
...
...

7,057
7,013
6,921

1995
1996
1997
1998
1999 a

132,800
135,100
137,765
140,386
142,653

9,213
9,161
8,743
8,427
8,284

19,355
19,195
18,811
18,402
18,184

17,213
16,977
16,853
16,431
16,247

15,766
15,579
15,446
15,235
14,853

14,376
14,253
14,230
14,125
14,063

22,097
22,612
23,076
23,586
23,836

13,853
14,435
15,243
16,095
16,761

8,171
8,706
9,330
10,062
10,548

4,662
5,052
5,523
6,008
6,457

498
1,053
2,106
3,268
3,976

...
...
...
...
856

7,597
8,077
8,405
8,747
8,589

2000 a
2001 a

144,667
144,803

8,235
8,242

17,876
17,616

15,825
15,437

14,256
13,831

13,816
13,382

24,020
23,556

17,201
17,360

11,225
11,597

6,991
7,356

4,396
4,661

1,978
3,275

8,848
8,490

1992
1993
1994

66,543
67,673
68,481

4,171
4,429
4,350

8,743
8,665
8,548

7,726
7,740
7,546

7,186
7,223
7,118

6,587
6,652
6,718

11,128
11,270
11,360

8,069
8,074
8,211

5,109
5,224
5,372

1,868
2,527
3,243

...
...
222

...
...
...

5,955
5,869
5,794

1995
1996
1997
1998
1999 a

69,901
70,670
71,910
73,111
74,207

4,256
4,177
4,040
3,900
3,851

8,510
8,333
8,158
7,964
7,886

7,457
7,261
7,154
6,936
6,883

7,051
6,854
6,714
6,533
6,305

6,814
6,637
6,485
6,335
6,247

11,653
11,791
11,864
11,947
11,894

8,448
8,667
8,957
9,297
9,538

5,587
5,838
6,162
6,520
6,695

3,444
3,672
3,932
4,199
4,447

388
800
1,582
2,406
2,891

...
...
...
...
641

6,292
6,641
6,862
7,074
6,928

2000 a
2001 a

75,132
75,218

3,847
3,904

7,772
7,792

6,712
6,629

6,008
5,863

6,055
5,862

11,781
11,384

9,618
9,567

6,984
7,040

4,676
4,828

3,132
3,214

1,461
2,381

7,086
6,753

1992
1993
1994

59,457
60,427
61,619

5,186
5,226
5,241

10,776
10,730
10,856

9,770
9,781
9,726

8,579
8,586
8,592

7,460
7,440
7,476

9,571
9,864
10,122

4,485
4,712
5,020

1,975
2,147
2,337

554
798
1,067

...
...
55

...
...
...

1,103
1,144
1,127

1995
1996
1997
1998
1999 a

62,900
64,429
65,855
67,275
68,446

4,957
4,985
4,703
4,527
4,433

10,845
10,862
10,653
10,438
10,298

9,756
9,716
9,698
9,495
9,364

8,714
8,725
8,732
8,702
8,548

7,563
7,616
7,745
7,790
7,816

10,444
10,819
11,212
11,640
11,942

5,405
5,768
6,285
6,798
7,223

2,584
2,868
3,169
3,541
3,853

1,217
1,380
1,591
1,808
2,010

110
253
524
862
1,085

...
...
...
...
215

1,305
1,437
1,543
1,673
1,661

2000 a
2001 a

69,535
69,585

4,387
4,338

10,103
9,824

9,113
8,807

8,248
7,967

7,761
7,520

12,239
12,172

7,584
7,793

4,242
4,556

2,314
2,529

1,264
1,447

517
895

1,763
1,736

All wage and salary workers

Men

Women

a. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.13

4.B OASDI: Covered Workers
Table 4.B8—Number of self-employed workers, by sex and age, selected years 1951–2001 (in thousands)
Year

Total,
all ages

Under
20

20–24

25–29

30–34

35–39

55–59

60–61

62–64

65–69

70–71

72 or
older

1951
1955
1960
1965
1970
1975
1980
1985

4,190
6,810
6,870
6,550
6,270
7,000
8,200
10,600

6
18
19
31
33
67
78
112

71
114
133
143
159
302
380
527

246
362
305
292
348
581
824
1,099

414
600
560
452
476
679
1,052
1,488

543
757
743
664
581
700
983
1,522

592
865
848
814
729
731
869
1,261

565
874
929
870
808
813
812
1,030

503
790
918
913
837
869
851
930

462
737
846
885
839
823
852
929

164
290
316
328
327
317
307
368

215
441
452
411
407
382
381
434

237
497
414
388
388
393
419
455

55
143
101
92
94
95
112
124

117
322
286
267
244
248
280
321

1990
1991
1992
1993
1994

12,500
12,800
13,100
13,200
13,300

152
136
137
131
140

529
521
509
488
473

1,123
1,105
1,093
1,029
989

1,663
1,697
1,678
1,650
1,624

1,854
1,897
1,951
1,956
1,936

1,736
1,818
1,864
1,892
1,945

1,377
1,474
1,589
1,647
1,726

1,113
1,170
1,243
1,325
1,357

980
998
1,018
1,047
1,070

381
388
382
375
375

487
486
484
481
482

567
561
576
589
580

150
158
166
164
164

389
391
410
426
437

1995
1996
1997
1998
1999 a

13,500
13,900
14,020
14,230
14,550

143
147
151
162
172

482
490
498
510
536

1,005
1,036
1,030
1,045
1,042

1,612
1,614
1,548
1,524
1,522

1,960
2,013
1,978
1,963
1,967

1,964
2,035
2,053
2,092
2,089

1,808
1,873
1,874
1,885
1,974

1,393
1,471
1,555
1,616
1,693

1,097
1,144
1,203
1,265
1,327

385
404
402
415
421

467
475
485
493
518

574
575
592
590
599

166
164
169
178
175

445
458
483
492
513

2000 a
2001 a

14,800
14,950

178
179

563
589

1,025
1,021

1,497
1,494

1,941
1,874

2,084
2,081

2,017
2,040

1,806
1,836

1,358
1,442

452
466

536
547

611
639

188
187

543
555

40–44

45–49

50–54

All self-employed workers

Men
1951
1955
1960
1965
1970
1975
1980
1985

3,620
5,980
5,990
5,640
5,370
5,790
6,407
7,623

5
16
16
26
28
57
60
79

61
104
119
127
136
251
305
378

219
335
284
263
306
479
639
782

370
555
515
410
422
564
793
1,060

478
687
678
598
522
584
752
1,058

519
773
757
714
642
619
672
873

479
773
812
759
699
680
641
730

430
679
793
772
712
715
681
674

393
631
709
742
695
672
668
686

139
247
260
272
268
255
244
278

179
373
386
339
324
309
301
328

204
420
348
326
320
326
333
351

47
122
83
75
77
78
92
97

97
265
230
217
201
201
226
249

1990
1991
1992
1993
1994

8,525
8,668
8,798
8,840
8,839

103
92
89
89
89

346
341
330
310
309

746
726
714
674
638

1,112
1,109
1,090
1,075
1,053

1,241
1,268
1,289
1,290
1,269

1,148
1,204
1,228
1,241
1,268

914
976
1,041
1,078
1,127

762
793
830
885
890

693
699
706
713
723

270
273
271
261
263

355
350
344
341
333

424
418
427
436
423

116
119
126
125
122

295
299
312
322
331

1995
1996
1997
1998
1999 a

8,908
9,074
9,078
9,109
9,240

97
94
98
98
107

305
306
311
314
318

648
658
638
641
630

1,030
1,021
975
947
942

1,271
1,281
1,245
1,217
1,207

1,281
1,322
1,313
1,326
1,314

1,170
1,200
1,197
1,188
1,243

906
954
997
1,033
1,068

735
754
788
819
847

269
276
275
275
279

325
328
334
338
355

413
415
420
415
418

124
119
122
130
128

335
346
365
368
384

2000 a
2001 a

9,265
9,228

108
106

330
332

602
590

898
868

1,174
1,117

1,286
1,273

1,256
1,262

1,136
1,139

858
895

297
302

356
359

427
443

136
136

403
406

1951
1955
1960
1965
1970
1975
1980
1985

570
830
880
910
900
1,210
1,793
2,977

1
2
3
5
5
10
18
33

10
10
14
16
23
51
75
149

27
27
21
29
42
102
185
317

44
45
45
42
54
115
259
428

65
70
65
66
59
116
231
464

73
92
91
100
87
112
197
388

86
101
117
111
109
133
171
300

73
111
125
141
125
154
170
256

69
106
137
143
144
151
184
243

25
43
56
56
59
62
63
90

36
68
66
72
65
73
80
106

33
77
67
62
68
67
86
104

8
21
18
17
17
17
20
27

20
57
55
50
43
47
54
72

1990
1991
1992
1993
1994

3,975
4,131
4,302
4,360
4,460

49
44
48
41
51

183
180
179
178
164

377
378
380
355
352

551
588
588
575
572

613
629
662
666
667

588
614
636
651
677

463
499
548
569
599

350
376
413
440
468

287
299
312
334
346

111
115
110
114
112

132
136
140
140
148

142
143
148
153
157

34
39
39
39
42

94
92
98
104
105

1995
1996
1997
1998
1999 a

4,592
4,826
4,942
5,121
5,310

46
54
54
65
65

177
183
188
196
218

357
377
392
404
412

582
594
572
577
580

689
733
733
746
760

683
713
739
767
775

638
673
676
697
732

487
517
558
583
625

362
390
415
445
480

116
128
128
140
142

142
147
151
155
163

161
160
172
175
181

42
45
47
48
47

109
112
118
124
129

2000 a
2001 a

5,534
5,721

70
73

233
257

424
431

599
626

767
756

798
807

761
778

670
697

500
547

155
164

180
187

184
196

52
51

140
149

Women

a. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTE: Age refers to age attained during year.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.14 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B9—Number of self-employed workers, by sex and amount of taxable earnings, 1992–2001
(in thousands)
1,000–
4,999

Workers with earnings below taxable maximum (by dollar amount of earnings)
5,000–
10,000–
15,000–
20,000–
30,000–
40,000–
50,000–
9,999
14,999
19,999
29,999
39,999
49,999
59,999

60,000–
69,999

70,000–
80,399

Workers with
maximum
earnings

Year

Total

1–
999

1992
1993
1994

13,100
13,200
13,300

593
587
551

2,927
2,866
2,825

2,519
2,562
2,510

1,599
1,627
1,670

1,156
1,149
1,162

1,576
1,570
1,586

971
990
1,019

612
633
645

308
388
426

...
...
92

...
...
...

839
828
814

1995
1996
1997
1998
1999 a

13,500
13,900
14,020
14,230
14,550

535
521
522
510
487

2,781
2,791
2,716
2,643
2,586

2,593
2,667
2,674
2,675
2,695

1,690
1,754
1,740
1,769
1,800

1,192
1,210
1,226
1,242
1,281

1,604
1,650
1,669
1,717
1,760

1,044
1,092
1,100
1,157
1,197

678
713
737
777
807

444
471
489
505
538

116
176
278
387
386

...
...
...
...
163

822
853
869
848
850

2000 a
2001 a

14,800
14,950

520
531

2,568
2,599

2,690
2,688

1,813
1,857

1,269
1,279

1,766
1,732

1,215
1,195

833
841

577
596

412
408

278
411

860
813

1992
1993
1994

8,798
8,840
8,839

288
291
268

1,603
1,559
1,511

1,606
1,632
1,552

1,109
1,118
1,138

827
809
820

1,145
1,141
1,153

746
760
772

485
500
503

253
316
340

...
...
77

...
...
...

734
715
705

1995
1996
1997
1998
1999 a

8,908
9,074
9,078
9,109
9,240

256
247
255
247
234

1,492
1,468
1,429
1,378
1,341

1,581
1,598
1,550
1,518
1,499

1,138
1,166
1,138
1,128
1,126

826
831
842
827
845

1,152
1,176
1,171
1,189
1,201

782
807
796
831
851

521
545
559
584
593

356
367
381
389
411

96
141
223
309
299

...
...
...
...
129

708
729
735
710
710

2000 a
2001 a

9,265
9,228

244
252

1,326
1,322

1,463
1,445

1,116
1,097

820
823

1,179
1,142

845
813

600
599

425
431

314
312

218
324

713
670

1992
1993
1994

4,302
4,360
4,460

305
296
282

1,323
1,308
1,314

913
930
957

490
509
531

329
340
342

431
429
435

225
230
246

127
133
142

55
73
85

...
...
15

...
...
...

105
113
109

1995
1996
1997
1998
1999 a

4,592
4,826
4,942
5,121
5,310

280
274
267
264
253

1,289
1,323
1,287
1,265
1,245

1,012
1,069
1,125
1,157
1,196

552
588
601
641
674

366
379
384
415
436

452
475
499
528
559

261
285
303
327
346

157
168
178
193
214

88
104
108
116
127

20
35
55
78
87

...
...
...
...
34

114
125
134
138
139

2000 a
2001 a

5,534
5,721

275
279

1,241
1,278

1,227
1,244

696
760

449
456

587
590

370
382

233
243

152
165

98
96

60
87

147
143

All self-employed workers

Men

Women

a. Preliminary data.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTES: Taxable earnings consist of self-employment income and taxable wages. See Table 2.A3.
. . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.15

4.B OASDI: Covered Workers
Table 4.B10a—Number of workers with Social Security (OASDI) taxable earnings, amount taxable, and
contributions, by state or other area and type of earnings, 2000

Total

Number b
(thousands)
Wage and
salary

Selfemployed

153,517

144,667

14,800

3,987,100

3,778,900

208,200

494,400

468,584

25,817

2,295
348
2,614
1,400
16,552

2,175
325
2,484
1,309
15,264

203
40
224
146
1,960

52,074
8,757
65,759
28,562
467,578

49,609
8,177
62,648
26,917
433,914

2,465
580
3,112
1,646
33,664

6,457
1,086
8,154
3,542
57,980

6,152
1,014
7,768
3,338
53,805

306
72
386
204
4,174

Colorado
Connecticut
Delaware
District of Columbia
Florida

2,432
1,951
482
365
8,383

2,270
1,829
466
348
7,877

279
199
32
28
852

65,475
60,675
13,298
10,964
197,146

61,299
57,075
12,883
10,411
187,469

4,176
3,599
415
552
9,677

8,119
7,524
1,649
1,360
24,446

7,601
7,077
1,598
1,291
23,246

518
446
51
68
1,200

Georgia
Hawaii
Idaho
Illinois
Indiana

4,518
645
703
6,914
3,466

4,286
606
659
6,562
3,312

398
63
77
607
291

115,373
16,364
15,148
187,862
87,772

110,196
15,550
14,279
179,456
84,035

5,177
814
869
8,406
3,737

14,306
2,029
1,878
23,295
10,884

13,664
1,928
1,771
22,253
10,420

642
101
108
1,042
463

Iowa
Kansas
Kentucky
Louisiana
Maine

1,711
1,560
2,139
2,092
715

1,598
1,471
2,010
1,966
657

200
160
229
204
94

39,450
38,143
47,972
45,401
15,839

36,977
36,034
45,578
42,763
14,659

2,472
2,109
2,394
2,638
1,180

4,892
4,730
5,948
5,630
1,964

4,585
4,468
5,652
5,303
1,818

307
261
297
327
146

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

3,021
3,488
5,672
3,032
1,424

2,877
3,255
5,431
2,869
1,348

257
371
436
300
126

90,688
104,002
155,986
83,261
29,349

86,727
97,778
150,376
79,136
27,752

3,961
6,224
5,610
4,125
1,597

11,245
12,896
19,342
10,324
3,639

10,754
12,125
18,647
9,813
3,441

491
772
696
512
198

Missouri
Montana
Nebraska
Nevada
New Hampshire

3,115
498
1,014
1,067
768

2,942
452
951
1,022
720

302
74
113
79
80

73,296
9,872
23,339
25,694
21,687

69,711
8,925
21,972
24,559
20,475

3,585
947
1,367
1,134
1,213

9,089
1,224
2,894
3,186
2,689

8,644
1,107
2,725
3,045
2,539

445
117
169
141
150

New Jersey
New Mexico
New York
North Carolina
North Dakota

4,731
896
9,987
4,587
368

4,502
836
9,406
4,342
337

392
91
966
422
52

152,946
19,376
288,573
112,700
7,680

146,343
18,340
274,866
107,170
6,965

6,603
1,036
13,707
5,530
715

18,965
2,403
35,783
13,975
952

18,146
2,274
34,083
13,289
864

819
128
1,700
686
89

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

6,137
1,820
1,912
6,676
599

5,802
1,700
1,793
6,339
570

550
198
191
562
54

149,867
39,425
48,322
176,677
15,846

142,762
37,303
45,542
168,196
15,111

7,104
2,122
2,781
8,481
735

18,583
4,889
5,992
21,908
1,965

17,703
4,626
5,647
20,856
1,874

881
263
345
1,052
91

2,184
453
3,180
10,455
1,201

2,076
418
2,993
9,772
1,153

182
61
324
1,106
98

50,610
9,211
75,111
261,419
27,502

48,352
8,457
70,673
246,198
26,380

2,258
754
4,438
15,221
1,122

6,276
1,142
9,314
32,416
3,410

5,996
1,049
8,763
30,529
3,271

280
93
550
1,887
139

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

370
4,057
3,315
861
3,232
289

344
3,868
3,144
814
3,087
269

46
333
297
81
261
34

8,727
113,986
92,427
18,802
83,299
6,303

8,156
109,251
87,683
17,808
79,807
5,914

571
4,735
4,745
994
3,492
388

1,082
14,134
11,461
2,331
10,329
782

1,011
13,547
10,873
2,208
9,896
733

71
587
588
123
433
48

Outlying area
Puerto Rico

1,220

1,161

66

18,296

17,179

1,116

2,269

2,130

138

605

599

9

13,210

13,102

108

1,638

1,625

13

State or area a
All areas
Alabama
Alaska
Arizona
Arkansas
California

South Carolina
South Dakota
Tennessee
Texas
Utah

Other and unknown e

Taxable earnings c
(millions of dollars)
Wage and
Total
salary

Selfemployed

OASDI contributions d
(millions of dollars)
Wage and
SelfTotal
salary
employed

a. State designation based primarily on employee end-of-year residence, obtained from employer wage reports filed via magnetic media. State designation based on location
of employer for reports filed via paper.
b. Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total. National and state
totals and subtotals are unduplicated counts of workers in each type of employment.
c. Annual maximum taxable earnings for Social Security (OASDI) from a single employer or from self-employment were $76,200 in 2000.
d. For 2000 earnings, paid at the rate of 6.2 percent of taxable wages by both employees and employers, 6.2 percent of taxable tips by employees, and 12.4 percent of selfemployment income by self-employed workers. Data are unadjusted for multi-employer tax refunds.
e. Persons employed in American Samoa, Guam, Northern Mariana Islands, and Virgin Islands; U.S. citizens employed abroad by U.S. employers; persons employed on U.S.
oceanborne vessels; and workers with unknown residence.
SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTE: Data are based on preliminary estimates.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.16 ♦ Annual Statistical Supplement, 2003

4.B OASDI: Covered Workers
Table 4.B10b—Number of workers with Social Security (OASDI) taxable earnings, amount taxable, and
contributions, by state or other area and type of earnings, 2001

Total

Number b
(thousands)
Wage and
salary

Selfemployed

153,743

144,803

14,950

4,142,573

3,928,000

214,573

513,679

487,072

26,607

2,273
358
2,651
1,396
16,693

2,155
335
2,523
1,310
15,371

208
41
225
144
2,003

53,251
9,530
69,130
29,635
491,702

50,778
8,981
66,019
28,005
456,544

2,473
549
3,111
1,630
35,158

6,603
1,182
8,572
3,675
60,971

6,296
1,114
8,186
3,473
56,611

307
68
386
202
4,360

Colorado
Connecticut
Delaware
District of Columbia
Florida

2,448
1,944
486
360
8,481

2,279
1,816
467
345
7,962

280
208
34
28
878

68,858
63,077
14,096
11,585
207,188

64,601
59,140
13,627
11,009
197,110

4,256
3,937
469
576
10,078

8,538
7,822
1,748
1,437
25,691

8,011
7,333
1,690
1,365
24,442

528
488
58
71
1,250

Georgia
Hawaii
Idaho
Illinois
Indiana

4,500
670
716
6,704
3,483

4,260
633
674
6,354
3,328

402
60
74
612
294

119,504
17,626
16,338
190,760
89,041

114,214
16,791
15,468
181,945
85,240

5,290
835
870
8,815
3,801

14,819
2,186
2,026
23,654
11,041

14,163
2,082
1,918
22,561
10,570

656
104
108
1,093
471

Iowa
Kansas
Kentucky
Louisiana
Maine

1,701
1,560
2,135
2,112
722

1,594
1,477
2,007
1,987
666

196
156
221
207
90

40,484
39,790
49,212
47,691
16,600

38,147
37,752
46,803
45,013
15,334

2,338
2,038
2,408
2,678
1,266

5,020
4,934
6,102
5,914
2,058

4,730
4,681
5,804
5,582
1,901

290
253
299
332
157

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

3,083
3,492
5,581
3,044
1,396

2,937
3,257
5,337
2,880
1,321

259
374
435
301
128

96,754
109,469
156,291
86,308
29,780

92,624
103,075
150,589
82,133
28,168

4,130
6,394
5,702
4,175
1,613

11,998
13,574
19,380
10,702
3,693

11,485
12,781
18,673
10,185
3,493

512
793
707
518
200

Missouri
Montana
Nebraska
Nevada
New Hampshire

3,110
505
1,020
1,104
774

2,933
463
956
1,055
725

299
70
115
81
80

75,902
10,286
24,054
27,413
22,735

72,321
9,376
22,736
26,166
21,404

3,581
910
1,318
1,247
1,331

9,412
1,275
2,983
3,399
2,819

8,968
1,163
2,819
3,245
2,654

444
113
163
155
165

New Jersey
New Mexico
New York
North Carolina
North Dakota

4,737
910
10,002
4,525
370

4,498
855
9,396
4,268
340

396
91
1,006
430
54

159,300
20,678
299,680
114,721
8,061

152,248
19,644
285,121
109,048
7,385

7,052
1,034
14,559
5,673
675

19,753
2,564
37,160
14,225
1,000

18,879
2,436
35,355
13,522
916

874
128
1,805
704
84

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

6,045
1,842
1,910
6,749
599

5,706
1,723
1,795
6,416
571

544
198
190
564
55

150,994
41,473
49,682
184,520
16,702

143,777
39,299
46,922
175,828
15,921

7,218
2,175
2,760
8,692
780

18,723
5,143
6,161
22,881
2,071

17,828
4,873
5,818
21,803
1,974

895
270
342
1,078
97

2,174
454
3,132
10,592
1,211

2,069
423
2,945
9,898
1,166

180
59
322
1,134
96

52,275
9,478
76,111
275,306
28,868

50,043
8,762
71,486
259,420
27,754

2,232
716
4,625
15,886
1,113

6,482
1,175
9,438
34,138
3,580

6,205
1,086
8,864
32,168
3,442

277
89
573
1,970
138

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

372
4,103
3,320
872
3,225
300

348
3,905
3,147
828
3,081
281

46
344
289
79
264
34

9,102
120,440
95,792
19,685
85,671
6,926

8,515
115,429
91,188
18,671
82,125
6,488

587
5,011
4,603
1,014
3,546
439

1,129
14,935
11,878
2,441
10,623
859

1,056
14,313
11,307
2,315
10,183
804

73
621
571
126
440
54

Outlying area
Puerto Rico

1,194

1,135

65

19,142

18,021

1,121

2,374

2,235

139

605

600

8

13,879

13,794

85

1,721

1,710

11

State or area a
All areas
Alabama
Alaska
Arizona
Arkansas
California

South Carolina
South Dakota
Tennessee
Texas
Utah

Other and unknown e

Taxable earnings c
(millions of dollars)
Wage and
Total
salary

Selfemployed

OASDI contributions d
(millions of dollars)
Wage and
SelfTotal
salary
employed

a. State designation based primarily on employee end-of-year residence, obtained from employer wage reports filed via magnetic media. State designation based on location
of employer for reports filed via paper.
b. Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total. National and state
totals and subtotals are unduplicated counts of workers in each type of employment.
c. Annual maximum taxable earnings for Social Security (OASDI) from a single employer or from self-employment were $80,400 in 2001.
d. For 2001 earnings, paid at the rate of 6.2 percent of taxable wages by both employees and employers, 6.2 percent of taxable tips by employees, and 12.4 percent of selfemployment income by self-employed workers. Data are unadjusted for multi-employer tax refunds.
e. Persons employed in American Samoa, Guam, Northern Mariana Islands, and Virgin Islands; U.S. citizens employed abroad by U.S. employers; persons employed on U.S.
oceanborne vessels; and workers with unknown residence.
SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTE: Data are based on preliminary estimates.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.17

4.B OASDI: Covered Workers
Table 4.B11—Number of workers with Social Security (OASDI) taxable earnings, amount taxable, and
contributions, by type of earnings, selected years 1937–2002

Year

Total

Number a
(thousands)
Wage and
salary

1937
1940
1945

32,900
35,390
46,390

32,900
35,390
46,390

...
...
...

29,620
32,970
62,950

29,620
32,970
62,950

...
...
...

592
659
1,259

592
659
1,259

...
...
...

1950
1951
1952
1953
1954

48,280
58,120
59,580
60,840
59,610

48,280
54,630
56,060
57,220
55,940

...
4,190
4,240
4,340
4,350

87,500
120,770
128,640
135,870
133,520

87,500
111,250
118,880
125,840
123,410

...
9,520
9,760
10,030
10,110

2,625
3,552
3,786
4,001
5,240

2,625
3,338
3,566
3,775
4,936

...
214
220
226
303

1955
1956
1957
1958
1959

65,200
67,610
70,590
69,770
71,700

59,560
61,560
64,730
64,040
66,000

6,810
7,390
7,150
7,130
7,060

157,540
170,720
181,380
180,720
202,310

141,810
153,010
163,990
163,140
183,620

15,730
17,710
17,390
17,580
18,690

6,144
6,652
7,966
7,935
9,882

5,672
6,120
7,380
7,341
9,181

472
531
587
593
701

1960
1961
1962
1963
1964

72,530
72,820
74,280
75,540
77,430

66,980
67,360
68,890
70,310
72,230

6,870
6,790
6,720
6,590
6,480

207,000
209,640
219,050
225,550
236,390

188,580
190,850
200,130
206,840
217,430

18,420
18,790
18,920
18,710
18,960

12,144
12,297
13,397
16,006
16,788

11,315
11,451
12,508
14,996
15,764

829
846
889
1,010
1,024

1965
1966
1967
1968
1969

80,680
84,600
87,040
89,380
92,060

75,430
79,460
82,020
84,470
87,200

6,550
6,630
6,470
6,570
6,350

250,730
312,540
329,960
375,800
402,510

230,830
287,860
305,670
348,500
375,010

19,900
24,680
24,290
27,300
27,500

17,810
23,597
25,275
28,069
33,233

16,735
22,165
23,842
26,486
31,501

1,075
1,431
1,433
1,583
1,733

1970
1971
1972
1973
1974

93,090
93,340
96,240
99,830
101,330

88,180
88,460
91,220
94,610
96,190

6,270
6,290
6,600
7,100
7,040

415,580
426,950
484,150
561,850
636,800

388,680
399,550
452,050
523,450
594,400

26,900
27,400
32,100
38,400
42,400

34,344
38,649
43,804
53,463
61,814

32,649
36,759
41,589
50,775
58,846

1,695
1,891
2,215
2,688
2,968

1975
1976
1977
1978
1979

100,200
102,600
105,800
110,600
112,700

94,900
97,230
100,450
104,810
106,900

7,000
7,400
7,480
8,040
8,200

664,700
737,700
816,600
915,600
1,067,000

621,100
689,200
763,600
856,100
997,500

43,600
48,500
53,000
59,500
69,500

64,541
71,626
79,306
90,691
106,246

61,489
68,231
75,596
86,466
101,346

3,052
3,395
3,710
4,225
4,900

1980
1981
1982
1983
1984

113,000
113,000
111,800
112,100
116,300

107,200
107,300
105,800
105,900
109,900

8,200
8,250
8,550
9,200
9,900

1,180,700
1,294,100
1,365,300
1,454,100
1,608,800

1,109,000
1,220,000
1,290,000
1,369,000
1,515,000

71,700
74,100
75,300
85,100
93,800

117,729
136,468
145,382
154,703
183,403

112,674
130,540
139,320
147,852
172,710

5,055
5,928
6,062
6,851
10,693

1985
1986
1987
1988
1989

119,800
122,900
125,600
129,600
131,700

113,400
115,900
118,200
122,100
123,900

10,600
11,200
12,000
12,400
12,900

1,722,600
1,844,400
1,960,000
2,088,400
2,239,500

1,621,000
1,730,800
1,835,100
1,952,000
2,096,000

101,600
113,600
124,900
136,400
143,500

196,376
210,262
223,440
253,114
271,427

184,794
197,311
209,201
236,582
254,035

11,582
12,950
14,239
16,532
17,392

1990
1991
1992
1993
1994

133,600
133,000
134,000
136,100
138,200

126,100
125,200
126,000
128,100
130,100

12,500
12,800
13,100
13,200
13,300

2,358,000
2,422,500
2,532,900
2,636,100
2,785,200

2,222,000
2,283,000
2,386,000
2,483,400
2,624,500

136,000
139,500
146,900
152,700
160,700

292,392
300,390
314,080
326,876
345,365

275,528
283,092
295,864
307,942
325,438

16,864
17,298
18,216
18,935
19,927

1995
1996
1997
1998
1999 e

141,000
143,400
146,145
148,786
151,293

132,800
135,100
137,765
140,386
142,653

13,500
13,900
14,020
14,230
14,550

2,919,100
3,073,500
3,285,000
3,524,900
3,749,700

2,754,300
2,901,700
3,104,300
3,333,700
3,548,100

164,800
171,800
180,700
191,200
201,600

361,968
381,114
407,340
437,088
464,963

341,533
359,811
384,933
413,379
439,964

20,435
21,303
22,407
23,709
24,998

2000 e
2001 f
2002 g

153,517
153,743
152,795

144,667
144,803
144,034

14,800
14,950
14,619

3,987,100
4,142,573
4,227,023

3,778,900
3,928,000
4,002,759

208,200
214,573
224,264

494,400
513,679
524,151

468,584
487,072
496,342

25,817
26,607
27,809

Selfemployed

a.
b.
c.
d.
e.
f.

Taxable earnings b
(millions of dollars)
Wage and
SelfTotal
salary
employed

OASDI contributions c,d
(millions of dollars)
Wage and
SelfTotal
salary
employed

Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total.
See Table 2.A3 for annual maximum taxable earnings.
See Table 2.A3 for contribution rates.
Unadjusted for multi-employer tax refunds. Unadjusted for tax credits. See Table 2.A5 for information on tax credits.
Preliminary data.
Taxable earnings are preliminary estimates based on Social Security data; employment data are preliminary estimates based on data from Bureau of Labor Statistics and
the National Income and Product Accounts.
g. Preliminary estimates based on data from Bureau of Labor Statistics and Bureau of Economic Analysis.
SOURCE: Social Security Administration, Master Earnings File, 1 percent sample.
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.18 ♦ Annual Statistical Supplement, 2003

4.B HI: Covered Workers
Table 4.B12a—Number of workers with Medicare Part A (HI) taxable earnings, amount taxable, and contributions,
by state or other area and type of earnings, 2000

Total

Number b
(thousands)
Wage and
salary

Selfemployed

157,033

148,320

15,535

4,962,900

4,638,800

324,100

143,924

134,525

9,399

2,319
369
2,634
1,412
17,282

2,200
347
2,504
1,321
16,029

211
42
238
149
2,071

58,740
10,832
77,288
31,218
642,437

55,468
10,092
73,101
29,350
586,797

3,272
740
4,187
1,868
55,640

1,703
314
2,241
905
18,631

1,609
293
2,120
851
17,017

95
21
121
54
1,614

Colorado
Connecticut
Delaware
District of Columbia
Florida

2,567
1,987
486
377
8,471

2,413
1,867
469
361
7,967

291
215
34
30
886

87,455
91,757
15,503
15,310
236,894

81,109
83,543
14,867
13,789
223,846

6,347
8,215
636
1,521
13,048

2,536
2,661
450
444
6,870

2,352
2,423
431
400
6,492

184
238
18
44
378

Georgia
Hawaii
Idaho
Illinois
Indiana

4,613
665
709
7,088
3,495

4,382
627
665
6,744
3,341

417
65
79
639
302

142,500
18,527
16,347
239,155
97,852

134,432
17,567
15,353
224,799
92,486

8,068
960
994
14,356
5,366

4,132
537
474
6,935
2,838

3,899
509
445
6,519
2,682

234
28
29
416
156

Iowa
Kansas
Kentucky
Louisiana
Maine

1,724
1,573
2,184
2,241
742

1,611
1,485
2,058
2,121
687

205
166
236
210
96

43,516
44,970
54,852
55,844
18,216

40,467
41,982
51,467
51,822
16,865

3,049
2,988
3,384
4,022
1,351

1,262
1,304
1,591
1,619
528

1,174
1,217
1,493
1,503
489

88
87
98
117
39

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

3,092
3,687
5,718
3,056
1,435

2,949
3,467
5,476
2,893
1,359

276
399
465
316
130

110,919
149,108
181,024
97,286
31,576

103,988
136,607
173,216
92,067
29,523

6,930
12,501
7,808
5,219
2,053

3,217
4,324
5,250
2,821
916

3,016
3,962
5,023
2,670
856

201
363
226
151
60

Missouri
Montana
Nebraska
Nevada
New Hampshire

3,184
503
1,023
1,119
778

3,012
458
960
1,076
730

314
75
118
83
84

86,663
10,896
26,228
32,800
26,490

81,123
9,578
24,461
30,211
24,846

5,539
1,319
1,766
2,588
1,644

2,513
316
761
951
768

2,353
278
709
876
721

161
38
51
75
48

New Jersey
New Mexico
New York
North Carolina
North Dakota

4,769
910
10,059
4,616
371

4,541
850
9,477
4,371
340

430
94
1,029
438
53

210,311
21,343
393,132
129,595
8,441

198,714
20,089
365,074
121,994
7,645

11,597
1,254
28,058
7,602
796

6,099
619
11,401
3,758
245

5,763
583
10,587
3,538
222

336
36
814
220
23

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

6,541
1,843
1,929
6,736
608

6,231
1,725
1,811
6,399
579

577
204
197
596
57

184,518
43,554
55,920
208,745
18,631

174,733
41,167
52,356
196,731
17,490

9,785
2,387
3,564
12,014
1,141

5,351
1,263
1,622
6,054
540

5,067
1,194
1,518
5,705
507

284
69
103
348
33

2,197
457
3,208
10,917
1,213

2,088
423
3,022
10,255
1,164

187
61
338
1,154
102

56,081
10,006
86,497
336,113
30,672

53,038
9,122
80,144
312,555
29,056

3,043
884
6,353
23,558
1,616

1,626
290
2,508
9,747
889

1,538
265
2,324
9,064
843

88
26
184
683
47

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

372
4,105
3,351
871
3,252
292

347
3,915
3,180
824
3,107
273

47
354
311
83
271
35

9,568
137,128
113,483
20,631
93,003
7,564

8,842
129,668
107,035
19,126
88,318
6,874

726
7,460
6,449
1,505
4,685
690

277
3,977
3,291
598
2,697
219

256
3,760
3,104
555
2,561
199

21
216
187
44
136
20

Outlying area
Puerto Rico

1,256

1,198

65

20,215

18,827

1,389

586

546

40

626

620

9

15,544

15,380

164

451

446

5

State or area a
All areas
Alabama
Alaska
Arizona
Arkansas
California

South Carolina
South Dakota
Tennessee
Texas
Utah

Other and unknown e

Taxable earnings c
(millions of dollars)
Wage and
Total
salary

Selfemployed

HI contributions d
(millions of dollars)
Wage and
Total
salary

Selfemployed

a. State designation based primarily on employee end-of-year residence, obtained from employer wage reports filed via magnetic media. State designation based on location
of employer for reports filed via paper.
b. Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total. National and state
totals and subtotals are unduplicated counts of workers in each type of employment.
c. No annual maximum taxable earnings amount for Medicare.
d. For 2000 earnings, paid at the rate of 1.45 percent of taxable wages by both employees and employers, 1.45 percent of taxable tips by employees, and 2.9 percent of selfemployment income by self-employed workers.
e. Persons employed in American Samoa, Guam, Northern Mariana Islands, and Virgin Islands; U.S. citizens employed abroad by U.S. employers; persons employed on U.S.
oceanborne vessels; and workers with unknown residence.
SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTE: Data are based on preliminary estimates.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

Annual Statistical Supplement, 2003 ♦ 4.19

4.B HI: Covered Workers
Table 4.B12b—Number of workers with Medicare Part A (HI) taxable earnings, amount taxable, and contributions,
by state or other area and type of earnings, 2001

Total

Number b
(thousands)
Wage and
salary

Selfemployed

157,365

148,566

15,655

5,063,500

4,735,600

327,900

146,842

137,332

9,509

2,295
382
2,669
1,407
17,470

2,177
360
2,541
1,321
16,183

214
41
237
148
2,103

59,654
11,654
78,272
32,536
647,843

56,145
10,957
74,101
30,588
594,001

3,509
697
4,171
1,947
53,842

1,730
338
2,270
944
18,787

1,628
318
2,149
887
17,226

102
20
121
56
1,561

Colorado
Connecticut
Delaware
District of Columbia
Florida

2,586
1,982
489
373
8,566

2,427
1,856
470
357
8,048

292
225
35
30
913

85,846
90,477
16,133
16,240
242,796

79,605
82,449
15,373
14,873
229,129

6,241
8,027
760
1,367
13,666

2,490
2,624
468
471
7,041

2,309
2,391
446
431
6,645

181
233
22
40
396

Georgia
Hawaii
Idaho
Illinois
Indiana

4,604
692
722
6,915
3,507

4,367
656
680
6,575
3,352

421
62
76
645
306

147,522
20,060
17,627
244,325
97,939

139,185
18,964
16,631
227,815
92,528

8,337
1,097
995
16,510
5,411

4,278
582
511
7,085
2,840

4,036
550
482
6,607
2,683

242
32
29
479
157

Iowa
Kansas
Kentucky
Louisiana
Maine

1,711
1,571
2,179
2,266
751

1,604
1,489
2,053
2,147
696

200
162
229
214
92

44,227
45,962
57,030
58,481
18,993

41,403
42,912
52,660
54,693
17,569

2,823
3,050
4,370
3,788
1,424

1,283
1,333
1,654
1,696
551

1,201
1,244
1,527
1,586
510

82
88
127
110
41

Maryland
Massachusetts
Michigan
Minnesota
Mississippi

3,153
3,702
5,619
3,067
1,407

3,009
3,481
5,375
2,902
1,332

275
400
461
315
131

117,172
148,782
178,001
99,632
31,769

108,758
137,700
170,229
94,375
29,734

8,414
11,082
7,773
5,257
2,035

3,398
4,315
5,162
2,889
921

3,154
3,993
4,937
2,737
862

244
321
225
152
59

Missouri
Montana
Nebraska
Nevada
New Hampshire

3,179
510
1,027
1,161
783

3,003
468
963
1,115
734

310
71
118
85
84

88,168
11,202
26,597
33,855
26,946

83,086
10,101
24,901
31,853
25,205

5,082
1,101
1,697
2,002
1,740

2,557
325
771
982
781

2,409
293
722
924
731

147
32
49
58
50

New Jersey
New Mexico
New York
North Carolina
North Dakota

4,772
923
10,061
4,551
373

4,533
868
9,454
4,295
343

433
93
1,068
447
55

207,848
22,563
411,489
129,990
8,688

194,992
21,375
382,127
122,402
7,926

12,856
1,188
29,362
7,587
762

6,028
654
11,933
3,770
252

5,655
620
11,082
3,550
230

373
34
851
220
22

Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island

6,472
1,863
1,926
6,807
608

6,159
1,745
1,811
6,473
580

571
204
196
595
58

185,742
45,716
56,967
215,319
19,093

176,094
43,247
53,439
202,650
18,052

9,648
2,469
3,528
12,669
1,041

5,387
1,326
1,652
6,244
554

5,107
1,254
1,550
5,877
523

280
72
102
367
30

2,185
459
3,159
11,074
1,224

2,081
428
2,972
10,403
1,179

187
60
334
1,180
100

57,567
10,183
88,186
344,277
31,741

54,565
9,367
81,302
321,147
30,235

3,002
816
6,884
23,129
1,506

1,669
295
2,557
9,984
920

1,582
272
2,358
9,313
877

87
24
200
671
44

Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming

374
4,152
3,356
881
3,241
303

349
3,954
3,184
838
3,097
284

47
363
302
81
274
36

10,250
147,274
112,747
21,528
94,902
8,030

9,529
139,047
106,759
19,991
90,159
7,462

721
8,227
5,988
1,537
4,743
568

297
4,271
3,270
624
2,752
233

276
4,032
3,096
580
2,615
216

21
239
174
45
138
16

Outlying area
Puerto Rico

1,231

1,173

65

20,903

19,593

1,310

606

568

38

625

620

8

16,757

16,615

142

486

482

4

State or area a
All areas
Alabama
Alaska
Arizona
Arkansas
California

South Carolina
South Dakota
Tennessee
Texas
Utah

Other and unknown e

Taxable earnings c
(millions of dollars)
Wage and
Total
salary

Selfemployed

HI contributions d
(millions of dollars)
Wage and
Total
salary

Selfemployed

a. State designation based primarily on employee end-of-year residence, obtained from employer wage reports filed via magnetic media. State designation based on location
of employer for reports filed via paper.
b. Workers with earnings in both wage and salary employment and self-employment are counted in each type of employment but only once in the total. National and state
totals and subtotals are unduplicated counts of workers in each type of employment.
c. No annual maximum taxable earnings amount for Medicare.
d. For 2001 earnings, paid at the rate of 1.45 percent of taxable wages by both employees and employers, 1.45 percent of taxable tips by employees, and 2.9 percent of selfemployment income by self-employed workers.
e. Persons employed in American Samoa, Guam, Northern Mariana Islands, and Virgin Islands; U.S. citizens employed abroad by U.S. employers; persons employed on U.S.
oceanborne vessels; and workers with unknown residence.
SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTE: Data are based on preliminary estimates.
CONTACT: Greg Diez (410) 965-0153 or William Kearns (410) 965-6750.

4.20 ♦ Annual Statistical Supplement, 2003

4.C OASDI: Insured Workers
Table 4.C1—Estimated number, by insured status, December 31, 1940–2003 (in millions)

Year

Workers fully insured for retirement benefits, survivor benefits, or both
Permanently
Not permanently
Total
insured
insured

Workers
insured for
disability benefits

1940
1941
1942
1943
1944

24.2
25.8
28.1
29.9
31.9

1.1
1.4
1.8
2.3
2.8

23.1
24.4
26.3
27.6
29.1

...
...
...
...
...

1945
1946
1947
1948
1949

33.4
35.4
37.3
38.9
40.1

3.4
8.6
11.6
13.2
14.9

30.0
26.8
25.7
25.7
25.2

...
...
...
...
...

1950
1951
1952
1953
1954

59.8
62.8
68.2
71.0
70.2

21.0
22.9
25.6
27.7
29.9

38.8
39.9
42.7
43.4
40.4

...
...
...
...
31.9

1955
1956
1957
1958
1959

70.5
74.0
76.1
76.5
76.7

32.5
36.1
38.3
40.3
42.2

38.0
38.0
37.9
36.2
34.6

35.4
37.2
38.4
43.4
46.4

1960
1961
1962
1963
1964

84.4
88.5
89.8
91.3
92.8

47.6
53.3
54.9
56.6
58.3

36.8
35.3
34.8
34.7
34.5

48.5
50.5
51.5
52.3
53.3

1965
1966
1967
1968
1969

94.8
97.2
99.9
102.6
105.6

60.2
61.9
63.3
64.5
66.1

34.6
35.3
36.6
38.1
39.5

55.0
55.7
56.9
70.1
72.4

1970
1971
1972
1973
1974

108.3
110.8
113.5
116.8
120.2

67.3
68.5
69.8
71.3
72.7

41.0
42.3
43.7
45.6
47.5

74.5
76.1
77.8
80.4
83.3

1975
1976
1977
1978
1979

123.2
126.0
129.0
133.3
137.3

74.4
76.1
78.1
80.3
83.0

48.8
49.9
50.9
53.0
54.3

85.3
87.0
89.3
93.7
98.0

1980
1981
1982
1983
1984

140.4
142.9
144.7
146.5
148.3

85.3
88.0
90.7
94.0
96.9

55.0
54.9
54.0
52.5
51.4

100.3
102.6
104.5
105.4
107.1

1985
1986
1987
1988
1989

150.9
153.2
155.7
158.3
161.3

100.1
103.3
107.4
110.7
113.6

50.8
49.9
48.3
47.6
47.8

109.6
111.6
113.5
115.7
118.1

1990
1991
1992
1993
1994

164.0
166.0
167.5
169.2
170.8

116.4
118.8
121.1
123.6
125.9

47.6
47.2
46.4
45.6
44.9

120.1
121.5
122.9
124.4
126.2

1995
1996
1997
1998
1999

173.2
175.3
177.8
180.2
182.6

128.4
130.9
133.8
136.3
138.5

44.8
44.4
44.0
43.9
44.0

128.2
130.3
132.4
134.7
136.9

2000
2001
2002
2003

185.2
187.8
190.1
192.4

140.7
143.1
145.1
147.3

44.5
44.7
44.9
45.2

139.0
140.7
142.8
145.2

SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTES: Figures are subject to revision.
. . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

Annual Statistical Supplement, 2003 ♦ 4.21

4.C OASDI: Insured Workers
Table 4.C2—Estimated number, insured status, sex, and age, December 31, 1970–2003, selected years
(in thousands)
Year

Total,
all ages Under 20

20–24

25–29

30–34

35–39

40–44

45–49

50–54

55–59

60–64

65–69

70–74

75 or
older

Fully insured for retirement benefits, survivor benefits, or both
Total
1970
1975
1980
1985

108,415
123,231
140,474
150,971

4,104
5,304
6,558
4,301

14,972
16,938
19,153
17,735

12,704
17,057
19,270
20,772

10,156
12,716
17,200
19,299

9,220
10,148
12,785
17,100

9,686
9,238
10,240
12,780

10,028
9,606
9,211
10,206

9,172
9,719
9,404
9,043

7,925
8,633
9,270
9,023

6,686
7,524
8,244
8,856

5,262
6,227
6,984
7,538

3,798
4,405
5,219
5,915

4,703
5,714
6,937
8,402

1990
1991
1992
1993
1994

164,140
166,064
167,582
169,357
170,869

4,805
4,325
3,960
3,743
3,753

16,455
16,454
16,137
15,692
15,159

20,465
19,965
19,384
18,904
18,606

21,096
21,326
21,380
21,368
21,201

19,310
19,805
20,294
20,676
20,987

17,088
17,404
17,793
18,281
18,765

12,736
13,703
14,436
15,220
16,051

10,050
10,502
11,090
11,602
12,123

8,753
8,810
9,009
9,277
9,457

8,826
8,725
8,535
8,561
8,391

8,210
8,174
8,217
8,267
8,193

6,433
6,653
6,807
6,916
7,079

9,913
10,217
10,540
10,851
11,106

1995
1996
1997
1998
1999

173,268
175,561
178,039
180,236
182,564

3,983
4,226
4,377
4,641
4,850

14,850
14,698
14,766
14,988
15,388

18,556
18,482
18,359
18,122
17,788

20,822
20,325
19,830
19,451
19,237

21,246
21,430
21,516
21,511
21,349

19,270
19,763
20,246
20,643
20,974

16,837
17,286
17,739
18,172
18,598

12,636
13,431
14,189
15,027
15,829

9,766
10,233
10,714
11,203
11,755

8,541
8,611
8,846
9,072
9,135

8,185
8,149
8,109
7,977
8,019

7,136
7,116
7,187
7,117
7,060

11,439
11,813
12,162
12,313
12,583

2000
2001
2002
2003

185,230
187,756
190,057
192,446

4,885
4,882
4,814
4,747

15,866
16,230
16,604
16,929

17,463
17,417
17,455
17,568

19,139
19,085
19,031
18,978

21,072
20,680
20,235
19,842

21,267
21,499
21,636
21,662

19,107
19,641
20,159
20,591

16,482
16,954
17,392
17,868

12,373
13,059
13,813
14,560

9,635
10,071
10,332
10,761

8,049
8,150
8,294
8,520

7,067
7,037
7,011
6,971

12,826
13,051
13,281
13,449

1970
1975
1980
1985

62,946
69,315
76,635
80,723

2,702
3,210
3,700
2,325

8,563
9,376
10,223
9,407

7,108
9,230
10,198
10,871

5,861
7,153
9,311
10,233

5,431
5,847
7,119
9,220

5,681
5,367
5,788
7,029

5,767
5,543
5,247
5,676

5,298
5,527
5,338
5,073

4,694
4,919
5,213
5,052

3,905
4,278
4,568
4,861

3,025
3,426
3,763
3,992

2,172
2,413
2,752
3,067

2,742
3,024
3,416
3,917

1990
1991
1992
1993
1994

86,477
87,277
87,862
88,520
89,118

2,568
2,303
2,077
1,958
1,962

8,656
8,623
8,465
8,205
7,914

10,727
10,469
10,156
9,888
9,718

11,049
11,173
11,201
11,195
11,103

10,175
10,419
10,664
10,849
10,994

9,087
9,195
9,358
9,584
9,825

6,899
7,384
7,730
8,099
8,488

5,515
5,729
6,023
6,267
6,517

4,850
4,873
4,968
5,094
5,161

4,823
4,773
4,663
4,653
4,559

4,339
4,318
4,338
4,335
4,300

3,300
3,412
3,487
3,543
3,623

4,488
4,606
4,731
4,852
4,953

1995
1996
1997
1998
1999

90,129
91,075
92,079
93,098
94,039

2,078
2,177
2,255
2,387
2,497

7,701
7,604
7,609
7,690
7,853

9,662
9,596
9,495
9,346
9,144

10,905
10,634
10,362
10,143
9,999

11,114
11,195
11,218
11,188
11,088

10,068
10,312
10,548
10,742
10,891

8,855
9,047
9,249
9,443
9,644

6,765
7,159
7,526
7,924
8,293

5,299
5,524
5,759
5,989
6,257

4,638
4,649
4,751
4,862
4,872

4,304
4,282
4,250
4,202
4,214

3,639
3,629
3,652
3,654
3,632

5,102
5,268
5,404
5,529
5,655

2000
2001
2002
2003

95,236
96,519
97,623
98,752

2,499
2,526
2,489
2,450

8,098
8,312
8,511
8,683

8,952
8,936
8,963
9,026

9,917
9,870
9,835
9,809

10,944
10,760
10,531
10,317

11,029
11,132
11,182
11,186

9,885
10,151
10,412
10,632

8,596
8,820
9,024
9,236

6,565
6,912
7,281
7,637

5,117
5,326
5,449
5,671

4,215
4,252
4,318
4,423

3,649
3,641
3,626
3,597

5,771
5,883
6,002
6,085

1970
1975
1980
1985

45,469
53,916
63,839
70,248

1,402
2,094
2,858
1,976

6,409
7,562
8,931
8,328

5,597
7,827
9,072
9,901

4,295
5,563
7,889
9,066

3,789
4,302
5,666
7,881

4,005
3,871
4,452
5,751

4,262
4,063
3,963
4,530

3,874
4,192
4,065
3,970

3,231
3,714
4,057
3,971

2,781
3,246
3,677
3,995

2,237
2,801
3,221
3,546

1,626
1,991
2,468
2,848

1,961
2,691
3,521
4,485

1990
1991
1992
1993
1994

77,663
78,788
79,721
80,838
81,751

2,237
2,023
1,883
1,786
1,791

7,799
7,832
7,672
7,487
7,245

9,738
9,495
9,227
9,016
8,888

10,047
10,153
10,179
10,172
10,097

9,134
9,387
9,630
9,827
9,992

8,001
8,210
8,435
8,697
8,940

5,837
6,319
6,707
7,121
7,563

4,535
4,772
5,067
5,335
5,606

3,903
3,937
4,042
4,184
4,296

4,003
3,952
3,873
3,909
3,831

3,871
3,856
3,879
3,932
3,893

3,133
3,242
3,319
3,374
3,456

5,425
5,611
5,809
5,999
6,153

1995
1996
1997
1998
1999

83,139
84,486
85,961
87,138
88,526

1,905
2,048
2,122
2,254
2,353

7,149
7,094
7,157
7,298
7,535

8,894
8,886
8,863
8,776
8,644

9,917
9,690
9,468
9,308
9,238

10,133
10,235
10,298
10,324
10,261

9,202
9,451
9,698
9,901
10,083

7,982
8,239
8,490
8,729
8,955

5,871
6,272
6,663
7,103
7,536

4,468
4,710
4,954
5,214
5,497

3,903
3,962
4,094
4,210
4,263

3,882
3,867
3,859
3,775
3,806

3,497
3,487
3,536
3,462
3,428

6,338
6,546
6,758
6,784
6,928

2000
2001
2002
2003

89,993
91,237
92,434
93,694

2,386
2,357
2,326
2,297

7,768
7,919
8,094
8,246

8,511
8,481
8,492
8,542

9,222
9,216
9,195
9,170

10,128
9,920
9,704
9,525

10,238
10,367
10,454
10,476

9,222
9,490
9,746
9,959

7,886
8,134
8,368
8,632

5,808
6,147
6,531
6,924

4,518
4,746
4,883
5,090

3,834
3,897
3,977
4,097

3,418
3,396
3,385
3,374

7,056
7,169
7,279
7,364

Male

Female

(Continued)

4.22 ♦ Annual Statistical Supplement, 2003

4.C OASDI: Insured Workers
Table 4.C2—Estimated number, insured status, sex, and age, December 31, 1970–2003, selected years
(in thousands)—Continued
Year

Total,
all ages Under 20

20–24

25–29

30–34

35–39

40–44

45–49

50–54

55–59

60–64

65–69

70–74

75 or
older

Insured for disability benefits
Total
1970
1975
1980
1985

74,504
85,305
100,329
109,572

3,860
4,948
6,341
4,105

12,432
14,144
17,410
15,868

9,858
13,289
16,104
17,976

7,257
9,313
12,997
15,851

6,743
7,610
9,788
13,683

7,399
7,271
8,267
10,661

7,817
7,762
7,628
8,747

7,250
7,892
7,888
7,780

6,486
7,035
7,669
7,763

5,401
6,041
6,238
7,138

...
...
...
...

...
...
...
...

...
...
...
...

1990
1991
1992
1993
1994

120,081
121,530
122,883
124,430
126,205

4,541
4,047
3,655
3,461
3,514

15,023
14,788
14,295
13,945
13,639

17,954
17,620
17,188
16,758
16,433

17,691
17,946
18,204
18,341
18,358

16,099
16,653
17,178
17,646
17,957

14,339
14,890
15,203
15,672
16,234

10,991
11,743
12,610
13,262
14,029

8,759
9,075
9,683
10,261
10,724

7,569
7,700
7,823
8,093
8,310

7,116
7,070
7,045
6,991
7,009

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

1995
1996
1997
1998
1999

128,233
130,315
132,354
134,654
136,923

3,763
4,021
4,173
4,439
4,651

13,374
13,206
13,408
13,712
14,070

16,409
16,440
16,307
16,151
15,885

18,068
17,665
17,224
16,840
16,623

18,291
18,507
18,635
18,717
18,712

16,787
17,278
17,699
18,082
18,364

14,823
15,328
15,553
15,964
16,508

11,095
11,839
12,664
13,288
14,011

8,571
8,889
9,451
10,000
10,424

7,051
7,142
7,242
7,462
7,675

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

2000
2001
2002
2003

138,992
140,673
142,813
145,225

4,672
4,651
4,588
4,525

14,501
14,836
15,213
15,539

15,481
15,497
15,581
15,739

16,674
16,663
16,692
16,705

18,449
18,056
17,717
17,419

18,714
18,835
19,006
19,074

17,036
17,421
17,909
18,324

14,803
15,048
15,477
15,947

10,756
11,318
12,010
12,685

7,905
8,347
8,620
9,023

...
...
...
246

...
...
...
...

...
...
...
...

Male
1970
1975
1980
1985

49,847
54,323
60,140
62,896

2,550
3,004
3,586
2,219

7,622
8,274
9,607
8,650

6,519
8,191
9,218
9,952

5,331
6,400
8,068
9,169

4,956
5,320
6,348
8,105

5,191
4,911
5,238
6,319

5,218
5,037
4,733
5,124

4,722
4,977
4,833
4,561

4,224
4,389
4,672
4,570

3,512
3,822
3,837
4,227

...
...
...
...

...
...
...
...

...
...
...
...

1990
1991
1992
1993
1994

66,898
67,380
67,837
68,435
69,150

2,424
2,145
1,906
1,806
1,829

8,039
7,907
7,644
7,426
7,263

9,749
9,549
9,296
9,042
8,824

9,909
9,985
10,095
10,177
10,156

9,157
9,435
9,691
9,892
10,028

8,070
8,309
8,432
8,650
8,944

6,175
6,553
6,982
7,287
7,651

4,941
5,064
5,363
5,665
5,878

4,319
4,380
4,425
4,532
4,632

4,116
4,052
4,003
3,959
3,946

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

1995
1996
1997
1998
1999

69,979
70,815
71,659
72,611
73,564

1,957
2,068
2,146
2,279
2,392

7,079
6,948
6,996
7,117
7,264

8,774
8,747
8,656
8,516
8,338

9,971
9,720
9,444
9,186
8,998

10,186
10,272
10,303
10,342
10,313

9,244
9,509
9,724
9,892
10,023

8,020
8,252
8,343
8,549
8,838

6,054
6,435
6,848
7,149
7,497

4,737
4,863
5,152
5,444
5,654

3,957
4,003
4,047
4,138
4,249

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

2000
2001
2002
2003

74,424
74,984
75,946
77,040

2,385
2,412
2,378
2,342

7,475
7,673
7,884
8,061

8,083
8,116
8,151
8,231

8,981
8,941
8,942
8,935

10,131
9,845
9,636
9,440

10,200
10,161
10,217
10,224

9,139
9,237
9,475
9,675

7,869
7,945
8,145
8,356

5,822
6,086
6,429
6,747

4,340
4,567
4,689
4,895

...
...
...
134

...
...
...
...

...
...
...
...

1970
1975
1980
1985

24,656
30,982
40,189
46,676

1,310
1,945
2,755
1,886

4,810
5,870
7,804
7,218

3,339
5,098
6,886
8,025

1,926
2,913
4,929
6,682

1,787
2,290
3,441
5,578

2,208
2,360
3,028
4,342

2,599
2,726
2,894
3,622

2,527
2,915
3,055
3,219

2,262
2,646
2,997
3,193

1,889
2,219
2,401
2,911

...
...
...
...

...
...
...
...

...
...
...
...

1990
1991
1992
1993
1994

53,183
54,150
55,046
55,995
57,055

2,116
1,902
1,749
1,656
1,685

6,984
6,881
6,652
6,519
6,376

8,206
8,071
7,892
7,715
7,609

7,782
7,960
8,109
8,165
8,202

6,942
7,217
7,487
7,754
7,929

6,269
6,581
6,771
7,022
7,289

4,816
5,190
5,628
5,974
6,378

3,818
4,010
4,319
4,597
4,845

3,250
3,320
3,398
3,561
3,678

3,000
3,019
3,041
3,033
3,063

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

1995
1996
1997
1998
1999

58,254
59,500
60,696
62,043
63,360

1,806
1,953
2,026
2,161
2,260

6,295
6,258
6,412
6,595
6,806

7,635
7,693
7,651
7,635
7,547

8,097
7,946
7,780
7,654
7,626

8,105
8,234
8,332
8,376
8,399

7,544
7,769
7,975
8,190
8,341

6,803
7,077
7,210
7,415
7,670

5,042
5,404
5,816
6,139
6,514

3,834
4,026
4,298
4,555
4,771

3,094
3,139
3,196
3,324
3,426

...
...
...
...
...

...
...
...
...
...

...
...
...
...
...

2000
2001
2002
2003

64,567
65,688
66,867
68,185

2,288
2,239
2,211
2,183

7,026
7,163
7,329
7,478

7,397
7,381
7,430
7,508

7,693
7,722
7,750
7,770

8,319
8,211
8,081
7,979

8,514
8,673
8,789
8,850

7,897
8,184
8,434
8,649

6,935
7,103
7,332
7,591

4,934
5,232
5,581
5,938

3,565
3,780
3,931
4,128

...
...
...
112

...
...
...
...

...
...
...
...

Female

SOURCE: Social Security Administration, Continuous Work History Sample, 1 percent sample.
NOTES: Figures are subject to revision.
. . . = not applicable.
CONTACT: Jeff Kunkel (410) 965-3013.

Annual Statistical Supplement, 2003 ♦ 4.23

4.C OASDI: Insured Workers
Table 4.C5—Estimated size of the population in the Social Security area and percentage fully insured,
by sex and age, 1999–2003 (in thousands)

Age at end of year

1999
Percentage
fully
Population
insured

2000
Percentage
fully
Population
insured

2001
Percentage
fully
Population
insured

2002
Percentage
fully
Population
insured

2003
Percentage
fully
Population
insured

Total
Total

a

86

292,393

b

23
78
89
91
92
91
90
88
85
82
82
78
74

62,570
21,100
19,963
20,026
20,916
23,065
23,294
21,074
18,571
14,498
11,358
9,762
9,018
17,178

142,106

a 92

143,513

31,956
10,731
10,041
10,124
10,629
11,619
11,404
10,124
8,801
6,661
5,263
4,512
3,994
6,245

b

23
78
90
94
95
96
95
94
94
93
93
91
91

32,029
10,838
10,208
10,122
10,517
11,501
11,549
10,373
9,089
7,013
5,406
4,514
3,993
6,362

147,539

a 81

30,457
10,159
9,627
9,918
10,510
11,698
11,598
10,446
9,180
7,124
5,810
5,259
5,063
10,691

b

289,645

Under 15
15–19
20–24
25–29
30–34
35–39
40–44
45–49
50–54
55–59
60–64
65–69
70–74
75 or older

62,413
20,890
19,667
20,042
21,140
23,317
23,002
20,570
17,981
13,785
11,073
9,771
9,058
16,936

a

86

295,205

b

23
79
87
92
91
91
91
89
85
85
82
78
75

62,747
21,197
20,341
20,039
20,808
22,728
23,512
21,613
19,064
15,293
11,744
9,799
8,933
17,389

92

a

87

298,023

b

23
80
87
92
91
91
91
89
85
86
83
79
75

62,882
21,323
20,778
20,085
20,744
22,315
23,622
22,139
19,495
16,123
12,146
9,941
8,834
17,595

144,940

a 92

146,379

23
79
88
94
95
95
95
95
94
95
93
91
91

32,116
10,878
10,416
10,137
10,457
11,342
11,656
10,642
9,326
7,405
5,592
4,536
3.969
6,468

b

148,880

a 81

30,542
10,263
9,754
9,903
10,399
11,564
11,745
10,701
9,482
7,485
5,953
5,248
5,024
10,816

b

a

a

87

300,801

b

23
80
87
92
91
92
91
89
86
85
83
79
75

62,969
21,453
21,192
20,200
20,719
21,915
23,627
22,603
19,923
16,908
12,666
10,170
8,725
17,731

87
22
80
87
92
91
92
91
90
86
85
84
80
76

92

147,801

a 92

b

b

Male
Subtotal
Under 15
15–19
20–24
25–29
30–34
35–39
40–44
45–49
50–54
55–59
60–64
65–69
70–74
75 or older

a

b

a

b

23
80
88
94
95
96
95
95
93
95
94
92
91

32,183
10,932
10,651
10,176
10,418
11,147
11,710
10,906
9,533
7,814
5,785
4,612
3,933
6,576

23
80
88
94
94
95
95
95
93
94
94
92
91

32,225
10,990
10,870
10,254
10,400
10,957
11,713
11,138
9,740
8,201
6,036
4,727
3,892
6,656

22
80
88
94
94
96
95
95
93
94
94
92
91

150,264

a 81

151,643

a 82

153,000

a 82

30,631
10,319
9,925
9,902
10,351
11,386
11,855
10,971
9,738
7,888
6,151
5,263
4,964
10,920

b

30,698
10,391
10,127
9,909
10,327
11,167
11,912
11,233
9,962
8.308
6,361
5,329
4,901
11,018

b

30,743
10,463
10,322
9,946
10,319
10,958
11,914
11,465
10,183
8,707
6,630
5,442
4,833
11,075

22
80
86
89
87
88
87
85
80
77
75
70
66

Female
Subtotal
Under 15
15–19
20–24
25–29
30–34
35–39
40–44
45–49
50–54
55–59
60–64
65–69
70–74
75 or older

23
78
87
88
88
87
86
82
77
73
72
68
65

23
80
86
89
88
87
86
83
78
76
73
68
65

23
80
86
89
87
87
87
84
78
77
74
68
66

22
80
86
89
87
88
87
84
79
77
75
69
66

b

a. Percentage of population aged 20 or older and fully insured.
b. Less than 0.5 percent.
SOURCE: U.S. Census Bureau.
NOTES: Population in the Social Security area includes residents of the 50 states and the District of Columbia adjusted for net census undercount; civilian residents of Puerto
Rico, the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands; federal civilian employees and persons in the armed forces abroad and their dependents;
crew members of merchant vessels; and all other U.S. citizens abroad.
Population estimates are subject to revision.
CONTACT: Felicitie Bell (410) 965-3020 or Michael Miller (410) 966-4157.

4.24 ♦ Annual Statistical Supplement, 2003

4.C OASDI: Insured Workers
Table 4.C6—Period life table, 2000
Exact
age

Death
probability a

Male
Number
Life
of lives b expectancy

Death
probability a

Female
Number
Life
of lives b expectancy

Exact
age

Death
probability a

Male
Number
Life
of lives b expectancy

Death
probability a

Female
Number
Life
of lives b expectancy

0
1
2
3
4

0.008115
0.000531
0.000359
0.000298
0.000232

100,000
99,189
99,136
99,100
99,071

73.90
73.50
72.54
71.57
70.59

0.006702
0.000458
0.000299
0.000223
0.000167

100,000
99,330
99,284
99,255
99,232

79.24
78.77
77.81
76.83
75.85

60
61
62
63
64

0.012645
0.013774
0.015117
0.016717
0.018541

84,523
83,454
82,305
81,060
79,705

19.48
18.73
17.98
17.25
16.54

0.008061
0.008837
0.009729
0.010758
0.011909

90,667
89,936
89,141
88,274
87,325

22.90
22.08
21.28
20.48
19.70

5
6
7
8
9

0.000206
0.000192
0.000180
0.000163
0.000141

99,048
99,027
99,008
98,990
98,974

69.60
68.62
67.63
66.64
65.65

0.000155
0.000148
0.000143
0.000136
0.000128

99,216
99,201
99,186
99,172
99,158

74.86
73.88
72.89
71.90
70.91

65
66
67
68
69

0.020582
0.022740
0.024910
0.027036
0.029205

78,228
76,617
74,875
73,010
71,036

15.84
15.16
14.50
13.86
13.23

0.013209
0.014590
0.015949
0.017242
0.018547

86,285
85,145
83,903
82,564
81,141

18.93
18.18
17.44
16.71
16.00

10
11
12
13
14

0.000125
0.000135
0.000191
0.000308
0.000467

98,960
98,948
98,935
98,916
98,885

64.66
63.67
62.68
61.69
60.71

0.000121
0.000124
0.000144
0.000186
0.000243

99,146
99,134
99,121
99,107
99,089

69.91
68.92
67.93
66.94
65.95

70
71
72
73
74

0.031630
0.034380
0.037348
0.040548
0.044060

68,961
66,780
64,484
62,076
59,559

12.61
12.01
11.42
10.84
10.28

0.020032
0.021768
0.023697
0.025843
0.028258

79,636
78,041
76,342
74,533
72,607

15.29
14.59
13.91
13.23
12.57

15
16
17
18
19

0.000640
0.000804
0.000954
0.001079
0.001181

98,839
98,776
98,696
98,602
98,496

59.74
58.78
57.82
56.88
55.94

0.000309
0.000369
0.000416
0.000441
0.000451

99,064
99,034
98,997
98,956
98,912

64.97
63.99
63.01
62.04
61.07

75
76
77
78
79

0.048038
0.052535
0.057502
0.062970
0.069027

56,935
54,200
51,352
48,399
45,352

9.73
9.20
8.68
8.18
7.69

0.031071
0.034292
0.037840
0.041720
0.046042

70,555
68,363
66,018
63,520
60,870

11.92
11.29
10.67
10.07
9.49

20
21
22
23
24

0.001285
0.001383
0.001437
0.001434
0.001391

98,380
98,253
98,117
97,976
97,836

55.00
54.07
53.15
52.22
51.30

0.000459
0.000471
0.000480
0.000486
0.000491

98,868
98,822
98,776
98,728
98,681

60.09
59.12
58.15
57.18
56.20

80
81
82
83
84

0.075760
0.083288
0.091713
0.101108
0.111468

42,221
39,023
35,772
32,492
29,207

7.23
6.78
6.35
5.94
5.55

0.051013
0.056716
0.063090
0.070175
0.078071

58,068
55,105
51,980
48,701
45,283

8.92
8.37
7.85
7.34
6.86

25
26
27
28
29

0.001333
0.001286
0.001259
0.001267
0.001303

97,700
97,569
97,444
97,321
97,198

50.37
49.44
48.50
47.56
46.62

0.000496
0.000505
0.000522
0.000550
0.000588

98,632
98,583
98,533
98,482
98,428

55.23
54.26
53.29
52.31
51.34

85
86
87
88
89

0.122752
0.134930
0.147987
0.161928
0.176773

25,951
22,765
19,694
16,779
14,062

5.18
4.84
4.52
4.21
3.93

0.086897
0.096754
0.107719
0.119836
0.133124

41,748
38,120
34,432
30,723
27,041

6.40
5.96
5.54
5.15
4.78

30
31
32
33
34

0.001350
0.001400
0.001465
0.001546
0.001642

97,071
96,940
96,805
96,663
96,513

45.68
44.74
43.80
42.87
41.93

0.000632
0.000681
0.000737
0.000800
0.000871

98,370
98,308
98,241
98,168
98,090

50.37
49.40
48.44
47.47
46.51

90
91
92
93
94

0.192542
0.209250
0.226904
0.245500
0.265023

11,576
9,347
7,392
5,714
4,311

3.67
3.42
3.20
2.99
2.80

0.147587
0.163214
0.179988
0.197882
0.216861

23,441
19,982
16,720
13,711
10,998

4.44
4.12
3.83
3.56
3.31

35
36
37
38
39

0.001754
0.001883
0.002030
0.002196
0.002381

96,355
96,186
96,005
95,810
95,599

41.00
40.07
39.14
38.22
37.31

0.000949
0.001035
0.001131
0.001237
0.001354

98,004
97,911
97,810
97,699
97,579

45.55
44.59
43.64
42.69
41.74

95
96
97
98
99

0.284534
0.303801
0.322578
0.340612
0.357642

3,169
2,267
1,578
1,069
705

2.63
2.48
2.34
2.21
2.10

0.236103
0.255356
0.274345
0.292777
0.310343

8,613
6,579
4,899
3,555
2,514

3.09
2.89
2.72
2.55
2.40

40
41
42
43
44

0.002583
0.002802
0.003045
0.003312
0.003602

95,372
95,125
94,859
94,570
94,257

36.39
35.49
34.59
33.69
32.08

0.001484
0.001623
0.001760
0.001894
0.002029

97,446
97,302
97,144
96,973
96,789

40.80
39.85
38.92
37.99
37.06

100
101
102
103
104

0.375525
0.394301
0.414016
0.434717
0.456452

453
283
171
100
57

1.99
1.88
1.78
1.68
1.58

0.328964
0.348701
0.369624
0.391801
0.415309

1,734
1,164
758
478
291

2.26
2.12
1.99
1.87
1.75

45
46
47
48
49

0.003928
0.004272
0.004603
0.004908
0.005210

93,917
93,548
93,149
92,720
92,265

31.92
31.04
30.17
29.31
28.45

0.002180
0.002353
0.002541
0.002747
0.002976

96,593
96,382
96,156
95,911
95,648

36.13
35.21
34.29
33.38
32.47

105
106
107
108
109

0.479275
0.503239
0.528401
0.554821
0.582562

31
16
8
4
2

1.49
1.40
1.32
1.24
1.16

0.440228
0.466641
0.494640
0.524318
0.555777

170
95
51
26
12

1.63
1.52
1.42
1.32
1.23

50
51
52
53
54

0.005538
0.005926
0.006386
0.006935
0.007568

91,784
91,276
90,735
90,156
89,530

27.60
26.75
25.90
25.07
24.24

0.003233
0.003523
0.003849
0.004214
0.004621

95,363
95,055
94,720
94,355
93,958

31.56
30.66
29.77
28.88
28.00

110
111
112
113
114

0.611690
0.642274
0.674388
0.708107
0.743513

1
0
0
0
0

1.09
1.02
0.95
0.89
0.82

0.589124
0.624471
0.661939
0.701655
0.743513

5
2
1
0
0

1.14
1.05
0.97
0.90
0.82

55
56
57
58
59

0.008292
0.009083
0.009910
0.010759
0.011663

88,853
88,116
87,316
86,450
85,520

23.42
22.61
21.81
21.03
20.25

0.005083
0.005594
0.006144
0.006731
0.007369

93,524
93,048
92,528
91,959
91,340

27.13
26.27
25.41
24.57
23.73

115
116
117
118
119

0.780688
0.819722
0.860709
0.903744
0.948931

0
0
0
0
0

0.76
0.71
0.65
0.60
0.55

0.780688
0.819722
0.860709
0.903744
0.948931

0
0
0
0
0

0.76
0.71
0.65
0.60
0.55

a. Probability of dying within one year.
b. Number of survivors out of 100,000 born alive.
SOURCES: National Center for Health Statistics and the U.S. Census Bureau.
CONTACT: Felicitie Bell (410) 965-3020.

Annual Statistical Supplement, 2003 ♦ 4.25

5.A OASDI Current-Pay Benefits
Table 5.A1—Number and average monthly benefit, by type of benefit and race, December 2002
All races a

White
Average
monthly
benefit
(dollars)

46,452,550

815.00

39,232,330
32,362,130
29,203,660
2,681,090
477,380

Survivor benefits
Children of deceased workers
Widowed mothers and fathers
Nondisabled widow(er)s
Disabled widow(er)s
Parents of deceased workers
Disabled workers
Spouses of disabled workers
Children of disabled workers

Total, OASDI

Number
39,417,390

841.60

836.90
851.40
895.00
451.90
427.70

34,275,290
28,672,900
25,883,360
2,439,880
349,660

6,870,200
1,905,050
193,270
4,563,660
205,870
2,350

768.70
584.20
636.70
861.40
546.20
770.10

7,220,210
5,535,860
151,260
1,533,090

696.00
834.10
211.60
245.00

Number

Type of benefit
d

OASI
Retirement benefits
Retired workers
Spouses of retired workers
Children of retired workers

DI

Black
Average
monthly
benefit
(dollars)

c

Other

b

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

4,784,360

680.40

2,098,030

628.40

858.70
867.80
911.70
462.00
453.10

3,501,850
2,593,670
2,370,600
127,590
95,480

698.80
740.30
774.80
372.30
376.60

1,348,710
1,020,020
882,840
105,910
31,270

647.70
676.90
733.10
318.90
303.10

5,602,390
1,266,870
135,050
4,046,970
152,190
1,310

812.10
629.80
680.50
882.80
565.80
807.60

908,180
432,850
30,900
402,300
41,880
250

580.10
491.10
543.70
688.10
488.90
744.80

328,690
189,220
25,530
102,080
11,120
740

557.20
492.90
520.30
691.20
494.20
722.40

5,142,100
4,016,610
113,860
1,011,630

727.70
860.30
221.90
258.10

1,282,510
944,570
18,660
319,280

630.10
775.40
191.80
225.70

749,320
539,060
18,080
192,180

593.60
745.30
169.20
207.80

a. Includes 152,770 persons of unknown race. In years prior to 1993, persons of unknown race were included with White.
b. Includes Asians and Pacific Islanders, American Indians and Alaska Natives, and a subset of the total number of beneficiaries of Hispanic origin. The distribution of
beneficiaries among those three groups is not available.
c. Provisions for Railroad Retirement beneficiaries are described in the section Social Security (Old-Age, Survivors, and Disability Insurance).
d. Includes special age-72 beneficiaries.
SOURCE: Social Security Administration, Master Beneficiary Record, 10 percent sample.
NOTE: Race and ethnic designations are collected from the form SS-5 (Application for a Social Security Card). For dependents and survivor beneficiaries, race is assumed to
be the same as that shown on the SS-5 for the wage earner on whose earnings record the benefit is based.
CONTACT: Rona Blumenthal (410) 965-0163 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 5.1

5.A OASDI Current-Pay Benefits
Table 5.A1.1—Number and average monthly benefit for retired workers, by sex, age, and race,
December 2002
All races a

Age

White

Black

Average
monthly
benefit
(dollars)

Number

29,203,660

895.00

25,883,360

911.70

2,578,870
689,330
894,860
994,680
7,567,660
1,613,890
1,568,900
1,532,120
1,475,040
1,377,710
6,614,310
1,393,740
1,356,660
1,349,640
1,261,910
1,252,360
5,524,900
1,223,300
1,150,470
1,102,830
1,065,550
982,750
3,837,810
911,860
876,270
772,290
660,200
617,190
2,069,850
537,530
469,090
409,810
357,710
295,710
798,490
211,770

831.10
824.00
826.20
840.40
894.20
927.40
897.30
881.80
877.20
884.00
889.00
897.80
887.60
883.40
882.30
893.50
893.50
899.50
891.80
903.20
888.60
882.30
893.90
882.10
881.80
882.10
897.70
939.40
994.80
967.90
1,026.30
1,011.00
991.20
975.30
926.60
857.30

2,244,160
597,070
775,840
871,250
6,552,020
1,390,380
1,357,520
1,325,730
1,280,720
1,197,670
5,849,680
1,215,970
1,199,090
1,197,680
1,120,150
1,116,790
4,964,470
1,093,160
1,032,600
990,610
960,090
888,010
3,478,740
821,730
795,760
701,080
597,010
563,160
1,885,310
490,670
426,980
373,850
324,910
268,900
722,360
186,620

846.30
839.40
841.00
855.80
913.40
947.30
916.00
901.10
896.10
903.10
906.00
916.30
905.20
900.60
898.50
909.00
908.30
915.70
906.20
918.40
903.00
895.90
907.70
896.00
895.50
895.10
911.80
953.20
1,009.40
981.30
1,041.70
1,025.10
1,007.10
990.30
942.70
878.50

Number

c

Average
monthly
benefit
(dollars)

Other

b

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

2,370,600

774.80

882,840

733.10

228,530
60,380
82,280
85,870
699,160
149,520
143,450
144,400
136,090
125,700
546,400
127,400
111,210
108,230
101,860
97,700
409,230
94,590
86,600
82,260
77,390
68,390
265,800
65,700
59,680
52,600
47,500
40,320
139,880
34,730
32,580
26,710
25,230
20,630
60,530
21,070

762.70
761.90
763.30
762.60
792.10
825.40
802.30
776.80
776.90
774.80
771.60
785.80
770.60
764.30
763.20
771.10
761.80
767.20
766.00
766.90
754.00
751.60
754.40
751.30
740.80
747.80
755.70
786.70
822.40
804.20
850.40
839.10
807.00
806.10
750.30
677.30

106,130
31,880
36,720
37,530
312,230
73,360
67,310
61,190
57,190
53,180
205,370
49,030
44,270
41,540
36,470
34,060
131,040
31,530
26,890
25,920
23,960
22,740
75,980
20,240
17,190
15,120
12,540
10,890
35,520
9,520
7,600
7,340
6,050
5,010
12,940
3,630

656.80
654.30
654.10
661.70
723.40
758.90
724.20
712.80
696.60
714.60
727.40
734.30
711.40
706.50
734.20
756.50
756.00
749.70
753.80
766.60
757.20
753.80
762.00
754.70
748.90
757.30
767.70
796.50
891.90
875.50
921.80
917.00
881.50
853.40
828.20
800.50

1,131,220
119,180
31,150
43,430
44,600
360,330
77,970
74,330
73,940
69,930
64,160
272,350
64,560
55,420
54,460
49,910
48,000
192,950
45,550
41,690
38,820
35,700
31,190
114,510
30,210
26,210
22,540
19,690
15,860

848.40
840.20
842.20
838.60
840.30
872.70
913.00
882.90
857.00
854.10
850.30
846.80
861.90
845.30
837.80
837.90
847.70
827.10
838.60
831.30
831.40
819.00
808.60
801.80
803.40
788.10
784.40
804.00
843.20

494,200
55,810
15,930
19,660
20,220
182,170
41,490
40,090
36,290
33,300
31,000
114,460
27,450
24,920
22,970
19,990
19,130
72,920
17,630
15,210
13,990
13,300
12,790
41,930
11,340
9,220
8,770
6,820
5,780

789.60
735.20
744.90
730.70
731.80
784.20
828.70
785.50
769.50
753.50
773.00
781.90
791.20
766.70
752.60
790.40
814.90
801.80
790.80
799.30
825.40
801.70
794.40
796.70
784.10
786.50
799.40
797.70
832.80

Number

All retired workers
Total
62–64
62
63
64
65–69
65
66
67
68
69
70–74
70
71
72
73
74
75–79
75
76
77
78
79
80–84
80
81
82
83
84
85–89
85
86
87
88
89
90–94
95 or older

Men
Subtotal
62–64
62
63
64
65–69
65
66
67
68
69
70–74
70
71
72
73
74
75–79
75
76
77
78
79
80–84
80
81
82
83
84

15,107,850
1,332,960
351,270
463,130
518,560
4,198,470
891,960
870,350
851,290
819,080
765,790
3,610,550
763,270
745,680
741,430
685,700
674,470
2,885,690
652,560
609,990
572,760
547,490
502,890
1,868,570
462,050
434,190
377,760
312,020
282,550

1,008.10
990.40
991.70
983.80
995.40
1,030.60
1,081.00
1,035.60
1,014.50
1,006.30
1,010.10
1,007.50
1,025.70
1,007.50
999.40
994.90
1,008.60
993.90
1,013.00
995.50
1,008.40
982.50
963.20
954.50
953.90
945.10
931.60
950.50
1,005.00

13,452,980
1,157,940
304,190
400,030
453,720
3,653,330
772,110
755,590
740,540
715,230
669,860
3,217,270
670,430
664,030
662,730
614,190
605,890
2,611,140
587,450
551,200
518,250
496,850
457,390
1,705,080
418,760
397,300
344,980
284,280
259,760

1,029.80
1,018.20
1,020.00
1,012.10
1,022.40
1,058.60
1,111.70
1,064.00
1,042.30
1,033.10
1,036.70
1,029.50
1,051.30
1,030.40
1,021.60
1,014.80
1,028.10
1,011.90
1,033.60
1,013.40
1,026.80
999.40
978.80
968.90
969.80
959.30
944.90
964.40
1,018.80

(Continued)

5.2 ♦ Annual Statistical Supplement, 2003

5.A OASDI Current-Pay Benefits
Table 5.A1.1—Number and average monthly benefit for retired workers, by sex, age, and race,
December 2002—Continued
All races a

Age

Number

c

White
Average
monthly
benefit
(dollars)

Number

Black
Average
monthly
benefit
(dollars)

Other

b

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

49,100
12,890
11,720
9,380
8,710
6,400
17,680
5,120

912.00
876.30
941.60
946.00
901.80
893.90
821.40
751.90

17,980
4,810
3,830
3,700
3,170
2,470
7,020
1,910

952.00
919.50
978.80
1,011.90
939.00
900.40
884.40
860.00

1,239,380
109,350
29,230
38,850
41,270
338,830
71,550
69,120
70,460
66,160
61,540
274,050
62,840
55,790
53,770
51,950
49,700
216,280
49,040
44,910
43,440
41,690
37,200
151,290
35,490
33,470
30,060
27,810
24,460
90,780
21,840
20,860
17,330
16,520
14,230
42,850
15,950

707.50
678.20
676.20
679.20
678.60
706.30
730.00
715.50
692.60
695.20
696.10
696.90
707.70
696.40
689.90
691.50
697.00
703.50
700.90
705.40
709.20
698.20
703.80
718.50
706.90
703.80
720.40
721.40
750.00
773.90
761.60
799.10
781.20
757.00
766.60
721.00
653.30

388,640
50,320
15,950
17,060
17,310
130,060
31,870
27,220
24,900
23,890
22,180
90,910
21,580
19,350
18,570
16,480
14,930
58,120
13,900
11,680
11,930
10,660
9,950
34,050
8,900
7,970
6,350
5,720
5,110
17,540
4,710
3,770
3,640
2,880
2,540
5,920
1,720

661.30
570.00
563.80
565.70
579.80
638.40
668.10
634.00
630.10
617.30
633.00
658.80
661.90
640.20
649.50
666.20
681.60
698.50
697.70
694.60
697.80
701.70
701.70
719.30
717.30
705.50
699.10
732.00
755.40
830.30
830.50
863.90
820.50
818.20
807.60
761.50
734.30

Men (cont.)
85–89
85
86
87
88
89
90–94
95 or older

871,640
239,840
201,620
171,110
143,590
115,480
281,040
58,930

1,094.30
1,049.60
1,134.40
1,122.50
1,091.30
1,078.60
1,012.30
940.30

801,040
221,080
185,340
157,280
131,110
106,230
255,360
51,820

1,108.50
1,062.60
1,150.10
1,135.40
1,107.30
1,092.90
1,028.10
961.50

14,095,810
1,245,910
338,060
431,730
476,120
3,369,190
721,930
698,550
680,830
655,960
611,920
3,003,760
630,470
610,980
608,210
576,210
577,890
2,639,210
570,740
540,480
530,070
518,060
479,860
1,969,240
449,810
442,080
394,530
348,180
334,640
1,198,210
297,690
267,470
238,700
214,120
180,230
517,450
152,840

773.90
660.70
649.80
657.10
671.60
724.30
737.60
724.90
715.90
716.10
726.10
746.60
743.00
741.20
742.10
748.40
759.10
783.60
769.70
774.90
789.40
789.30
797.40
836.50
808.40
819.70
834.70
850.40
884.00
922.40
902.00
944.80
931.10
924.10
909.10
880.10
825.30

12,430,380
1,086,220
292,880
375,810
417,530
2,898,690
618,270
601,930
585,190
565,490
527,810
2,632,410
545,540
535,060
534,950
505,960
510,900
2,353,330
505,710
481,400
472,360
463,240
430,620
1,773,660
402,970
398,460
356,100
312,730
303,400
1,084,270
269,590
241,640
216,570
193,800
162,670
467,000
134,800

784.00
663.10
651.80
659.00
674.70
730.30
742.00
730.20
722.50
722.80
733.70
755.10
750.40
749.80
750.80
757.30
767.80
793.30
778.80
783.50
799.40
799.70
807.90
848.90
819.30
831.80
846.90
864.10
897.00
936.20
914.70
958.50
945.00
939.40
923.20
896.00
846.60

Women
Subtotal
62–64
62
63
64
65–69
65
66
67
68
69
70–74
70
71
72
73
74
75–79
75
76
77
78
79
80–84
80
81
82
83
84
85–89
85
86
87
88
89
90–94
95 or older

a. Includes 66,860 persons of unknown race.
b. Includes Asians and Pacific Islanders, American Indians and Alaska Natives, and a subset of the total number of beneficiaries of Hispanic origin. The distribution of
beneficiaries among those three groups is not available.
c. Provisions for Railroad Retirement beneficiaries are described in the section Social Security (Old-Age, Survivors, and Disability Insurance).
SOURCE: Social Security Administration, Master Beneficiary Record, 10 percent sample.
NOTE: Race and ethnic designations are collected from the form SS-5 (Application for a Social Security Card). For dependents and survivor beneficiaries, race is assumed to
be the same as that shown on the SS-5 for the wage earner on whose earnings record the benefit is based.
CONTACT: Rona Blumenthal (410) 965-0163 or Joseph Bondar (410) 965-0162.

Annual Statistical Supplement, 2003 ♦ 5.3

5.A OASDI Current-Pay Benefits
Table 5.A1.2—Number and average monthly benefit for disabled workers, by sex, age, and race,
December 2002
All races a

Age

Number

c

White
Average
monthly
benefit
(dollars)

Number

Other b

Black
Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

All disabled workers
Total

5,535,860
1,680

834.10
349.40

4,016,610
1,120

860.30
357.90

944,570
300

775.40
314.00

539,060
260

745.30
353.50

20–24
20
21
22
23
24

51,170
4,220
7,250
10,720
13,540
15,440

457.80
377.60
418.20
443.90
474.10
493.50

33,730
2,680
4,970
6,800
9,140
10,140

462.80
385.70
416.30
451.50
478.00
499.70

10,610
880
1,340
2,430
2,680
3,280

437.10
351.00
393.80
418.10
452.00
479.90

6,830
660
940
1,490
1,720
2,020

465.00
379.90
463.20
451.50
487.80
484.30

25–29
25
26
27
28
29

114,130
19,020
20,480
22,610
25,410
26,610

551.80
518.80
534.30
550.80
568.70
573.70

73,900
12,590
13,500
14,780
16,000
17,030

564.50
522.70
544.00
562.80
585.00
593.80

22,450
3,700
3,770
4,200
5,410
5,370

536.30
520.00
514.00
530.90
550.60
553.30

17,650
2,730
3,200
3,620
3,960
4,140

518.40
499.20
516.10
524.60
528.10
518.00

30–34
30
31
32
33
34

212,050
31,880
37,210
43,660
46,520
52,780

625.90
587.70
610.50
622.10
638.00
652.40

141,820
20,830
24,640
29,320
31,400
35,630

640.40
602.60
625.80
636.50
654.20
663.80

37,790
5,960
6,650
7,550
8,110
9,520

600.80
564.70
592.20
592.60
609.90
628.20

30,700
4,860
5,720
6,370
6,620
7,130

591.20
552.90
567.10
594.60
596.50
628.70

35–39
35
36
37
38
39

371,850
56,000
64,440
75,380
84,980
91,050

691.80
666.20
677.10
685.10
706.20
710.30

254,960
37,540
43,650
51,550
58,950
63,270

710.80
683.10
697.90
700.90
726.00
730.10

67,300
10,260
11,730
13,480
15,530
16,300

648.80
626.60
636.70
649.60
660.50
659.50

46,140
7,560
8,390
9,600
9,880
10,710

653.60
639.10
632.50
651.10
662.80
674.30

40–44
40
41
42
43
44

595,190
100,720
110,350
119,650
129,920
134,550

748.30
716.80
737.20
748.10
761.70
768.30

418,170
70,480
77,920
84,440
90,750
94,580

768.20
735.60
756.90
768.80
783.60
786.60

108,400
17,920
19,940
21,490
24,230
24,820

692.00
655.20
680.70
690.70
703.30
717.70

63,600
11,500
11,440
12,590
13,930
14,140

718.10
700.50
710.30
714.00
721.70
738.80

45–49
45
46
47
48
49

784,070
145,250
152,940
157,380
162,250
166,250

810.90
784.60
800.70
810.20
819.50
835.60

549,520
102,110
106,290
110,320
114,140
116,660

834.90
806.00
828.10
834.80
843.80
857.70

144,620
26,670
28,760
29,320
29,330
30,540

752.90
729.00
733.50
754.20
763.10
781.10

83,200
15,240
16,690
16,450
17,280
17,540

754.60
738.80
742.20
751.40
755.50
782.30

50–54
50
51
52
53
54

968,330
175,670
185,370
190,150
202,680
214,460

864.50
840.60
858.30
860.50
870.90
886.90

686,320
125,730
131,010
133,100
142,810
153,670

883.70
861.40
876.80
882.00
888.20
905.10

173,340
30,750
33,890
35,280
36,910
36,510

823.00
790.00
812.10
821.50
838.10
846.80

98,670
17,740
18,580
19,800
20,790
21,760

802.40
779.30
810.10
785.90
805.80
826.20

55–59
55
56
57
58
59

1,177,130
235,330
231,720
217,270
233,870
258,940

906.40
898.40
903.40
900.40
911.70
916.70

880,120
172,580
172,440
159,870
177,100
198,130

928.70
916.10
925.40
924.60
934.30
940.80

188,940
38,170
36,460
36,980
37,190
40,140

856.10
857.50
854.30
852.90
857.60
858.10

102,460
22,620
21,490
19,510
18,840
20,000

810.20
831.20
813.00
795.90
809.90
797.70

60–64
60
61
62
63
64

1,260,260
260,490
254,100
253,820
247,050
244,800

916.80
919.70
917.70
922.30
916.20
907.70

976,950
200,110
194,710
197,340
192,040
192,750

943.40
946.20
944.20
950.00
943.10
933.40

190,820
39,560
38,970
38,340
37,790
36,160

843.80
852.20
848.10
842.80
841.00
833.80

89,550
20,040
19,840
17,730
16,590
15,350

786.30
790.50
798.50
789.70
783.30
764.50

Under 20

Men
Subtotal
Under 20
20–24
20
21
22
23
24

3,069,140

935.00

2,256,900

973.10

497,200

834.50

292,990

820.30

1,030

353.80

690

363.40

160

279.00

180

383.20

30,920
2,620
4,540
6,520
8,060
9,180

468.00
380.10
425.70
456.80
491.10
501.70

20,440
1,630
3,190
4,240
5,330
6,050

472.20
383.30
426.40
457.60
498.90
506.90

6,060
560
810
1,260
1,640
1,790

447.60
369.30
385.20
438.30
458.50
497.10

4,420
430
540
1,020
1,090
1,340

476.80
381.90
481.80
476.40
502.30
484.80
(Continued)

5.4 ♦ Annual Statistical Supplement, 2003

5.A OASDI Current-Pay Benefits
Table 5.A1.2—Number and average monthly benefit for disabled workers, by sex, age, and race,
December 2002—Continued
All races a

Age

Number

c

White

Other b

Black

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Men (cont.)
25–29
25
26
27
28
29

63,650
10,970
11,420
12,880
14,010
14,370

563.00
531.00
550.00
557.50
579.70
586.60

40,970
7,140
7,630
8,230
8,910
9,060

578.40
538.70
565.90
576.30
595.50
605.10

12,530
2,170
1,900
2,500
2,950
3,010

540.90
527.10
525.20
521.60
549.30
568.60

10,050
1,660
1,880
2,150
2,120
2,240

527.90
503.00
508.90
527.10
556.40
536.10

30–34
30
31
32
33
34

117,000
17,520
20,210
23,750
26,420
29,100

638.40
596.20
631.40
636.90
648.60
660.60

77,130
11,490
13,030
15,740
17,730
19,140

655.10
613.60
650.40
655.10
664.20
674.60

20,630
3,130
3,570
3,980
4,560
5,390

607.70
559.70
601.10
600.50
623.70
631.90

18,100
2,800
3,470
3,740
3,900
4,190

604.00
563.50
591.50
605.80
608.90
635.30

35–39
35
36
37
38
39

206,580
31,170
35,500
41,900
47,670
50,340

710.10
678.40
694.10
701.90
728.30
730.70

140,110
20,670
23,930
28,010
33,030
34,470

734.30
702.00
722.10
724.70
754.00
751.30

37,670
5,710
6,250
7,740
8,610
9,360

654.40
624.90
637.40
647.00
670.70
675.00

26,650
4,370
4,870
5,710
5,680
6,020

666.10
641.80
639.40
662.60
669.70
705.20

40–44
40
41
42
43
44

329,680
56,350
60,940
66,000
72,560
73,830

785.90
743.20
768.20
783.70
804.70
816.40

231,850
39,610
43,050
46,640
50,570
51,980

812.00
765.60
794.90
810.70
836.40
839.00

59,180
9,720
10,850
11,690
13,430
13,490

710.30
664.30
691.50
711.50
718.80
749.10

35,540
6,520
6,350
7,000
7,960
7,710

749.70
729.20
733.90
735.90
753.50
788.50

45–49
45
46
47
48
49

429,050
79,620
85,060
86,030
88,230
90,110

876.10
839.70
858.00
876.10
890.20
911.50

302,100
55,920
58,770
60,640
62,660
64,110

909.80
873.90
898.00
909.10
921.70
941.10

78,320
14,440
16,320
16,050
15,520
15,990

784.10
746.40
756.90
790.60
802.80
821.10

44,600
8,460
9,220
8,650
9,070
9,200

814.40
778.50
785.10
812.70
830.10
862.90

50–54
50
51
52
53
54

529,110
96,140
101,050
103,810
110,930
117,180

965.20
927.10
953.20
957.10
975.00
1,004.60

380,500
70,270
72,100
74,190
78,980
84,960

993.70
956.10
980.80
985.20
1,004.00
1,033.40

89,550
15,470
17,790
18,300
19,370
18,620

883.70
838.90
868.90
879.10
898.50
924.10

52,900
9,650
10,050
10,010
11,260
11,930

901.20
857.90
904.20
896.70
903.10
935.80

55–59
55
56
57
58
59

647,250
129,340
127,420
119,170
129,210
142,110

1,050.50
1,024.30
1,040.10
1,045.50
1,063.00
1,076.50

493,270
95,600
96,490
89,400
100,160
111,620

1,082.70
1,052.10
1,071.60
1,082.30
1,093.50
1,109.00

96,780
20,280
18,500
19,030
18,840
20,130

953.90
945.10
941.90
942.60
970.10
969.10

53,550
12,190
11,610
10,140
9,730
9,880

936.20
945.80
938.60
921.40
938.60
934.40

60–64
60
61
62
63
64

714,870
144,820
143,140
144,160
142,100
140,650

1,080.10
1,083.80
1,080.40
1,087.90
1,079.80
1,068.10

569,840
114,020
112,560
115,550
113,640
114,070

1,112.30
1,117.90
1,113.30
1,120.00
1,111.70
1,098.30

96,320
20,400
19,690
19,020
19,250
17,960

968.60
965.80
971.50
972.50
966.60
966.40

47,000
9,880
10,570
9,380
8,860
8,310

923.50
939.90
936.80
929.80
923.80
879.90

Women
Subtotal

2,466,720

708.60

1,759,710

715.60

447,370

709.80

246,070

656.00

650

342.40

430

349.10

140

353.90

80

286.50

20–24
20
21
22
23
24

20,250
1,600
2,710
4,200
5,480
6,260

442.10
373.50
405.80
423.90
449.00
481.40

13,290
1,050
1,780
2,560
3,810
4,090

448.40
389.50
398.20
441.40
448.80
489.20

4,550
320
530
1,170
1,040
1,490

423.10
319.20
406.90
396.30
441.70
459.20

2,410
230
400
470
630
680

443.40
376.10
438.00
397.30
462.60
483.40

25–29
25
26
27
28
29

50,480
8,050
9,060
9,730
11,400
12,240

537.70
502.20
514.40
541.90
555.10
558.60

32,930
5,450
5,870
6,550
7,090
7,970

547.20
501.70
515.50
545.70
571.80
580.90

9,920
1,530
1,870
1,700
2,460
2,360

530.60
509.80
502.70
544.50
552.10
533.70

7,600
1,070
1,320
1,470
1,840
1,900

505.80
493.30
526.50
520.90
495.50
496.70

Under 20

(Continued)

Annual Statistical Supplement, 2003 ♦ 5.5

5.A OASDI Current-Pay Benefits
Table 5.A1.2—Number and average monthly benefit for disabled workers, by sex, age, and race,
December 2002—Continued
All races a

Age

Number

c

White

Other b

Black

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Women (cont.)
30–34
30
31
32
33
34

95,050
14,360
17,000
19,910
20,100
23,680

610.50
577.30
585.60
604.40
624.10
642.30

64,690
9,340
11,610
13,580
13,670
16,490

623.00
589.00
598.20
614.80
641.20
651.30

17,160
2,830
3,080
3,570
3,550
4,130

592.50
570.20
582.00
583.70
592.20
623.40

12,600
2,060
2,250
2,630
2,720
2,940

572.80
538.50
529.50
578.70
578.70
619.30

35–39
35
36
37
38
39

165,270
24,830
28,940
33,480
37,310
40,710

669.00
650.90
656.10
664.20
678.00
685.00

114,850
16,870
19,720
23,540
25,920
28,800

682.10
660.00
668.70
672.50
690.40
704.80

29,630
4,550
5,480
5,740
6,920
6,940

641.50
628.70
636.00
653.10
647.80
638.60

19,490
3,190
3,520
3,890
4,200
4,690

636.70
635.40
623.00
634.30
653.60
634.70

40–44
40
41
42
43
44

265,510
44,370
49,410
53,650
57,360
60,720

701.70
683.30
699.00
704.30
707.30
709.80

186,320
30,870
34,870
37,800
40,180
42,600

713.80
697.20
710.10
717.10
717.10
722.70

49,220
8,200
9,090
9,800
10,800
11,330

670.00
644.40
667.80
665.90
684.10
680.20

28,060
4,980
5,090
5,590
5,970
6,430

678.10
663.00
680.90
686.50
679.30
679.30

45–49
45
46
47
48
49

355,020
65,630
67,880
71,350
74,020
76,140

732.20
717.80
728.90
730.80
735.20
745.70

247,420
46,190
47,520
49,680
51,480
52,550

743.40
723.90
741.70
744.10
749.10
755.90

66,300
12,230
12,440
13,270
13,810
14,550

716.10
708.50
702.90
710.20
718.50
737.20

38,600
6,780
7,470
7,800
8,210
8,340

685.50
689.10
689.20
683.40
673.10
693.30

50–54
50
51
52
53
54

439,220
79,530
84,320
86,340
91,750
97,280

743.20
735.90
744.50
744.40
745.10
745.10

305,820
55,460
58,910
58,910
63,830
68,710

746.90
741.50
749.60
751.90
744.90
746.50

83,790
15,280
16,100
16,980
17,540
17,890

758.00
740.60
749.40
759.40
771.40
766.30

45,770
8,090
8,530
9,790
9,530
9,830

688.10
685.50
699.30
672.70
690.80
693.10

55–59
55
56
57
58
59

529,880
105,990
104,300
98,100
104,660
116,830

730.40
744.70
736.50
724.10
724.80
722.40

386,850
76,980
75,950
70,470
76,940
86,510

732.30
747.20
739.80
724.50
727.00
723.70

92,160
17,890
17,960
17,950
18,350
20,010

753.50
758.20
764.00
757.80
742.10
746.50

48,910
10,430
9,880
9,370
9,110
10,120

672.30
697.30
665.50
660.00
672.40
664.30

60–64
60
61
62
63
64

545,390
115,670
110,960
109,660
104,950
104,150

702.80
714.30
707.80
704.70
694.80
690.90

407,110
86,090
82,150
81,790
78,400
78,680

707.10
718.90
712.40
709.90
698.70
694.20

94,500
19,160
19,280
19,320
18,540
18,200

716.60
731.30
722.20
715.10
710.70
703.00

42,550
10,160
9,270
8,350
7,730
7,040

634.80
645.20
640.80
632.20
622.30
628.30

a. Includes 35,620 persons of unknown race.
b. Includes Asians and Pacific Islanders, American Indians and Alaska Natives, and a subset of the total number of beneficiaries of Hispanic origin. The distribution of
beneficiaries among those three groups is not available.
c. Provisions for Railroad Retirement beneficiaries are described in the section Social Security (Old-Age, Survivors, and Disability Insurance).
SOURCE: Social Security Administration, Master Beneficiary Record, 10 percent sample.
NOTE: Race and ethnic designations are collected from the form SS-5 (Application for a Social Security Card). For dependents and survivor beneficiaries, race is assumed to
be the same as that shown on the SS-5 for the wage earner on whose earnings record the benefit is based.
CONTACT: Rona Blumenthal (410) 965-0163 or Joseph Bondar (410) 965-0162.

5.6 ♦ Annual Statistical Supplement, 2003

5.A OASDI Current-Pay Benefits
Table 5.A1.3—Number and average monthly benefit for spouses, by marital status, basis of entitlement, age,
and race, December 2002
All races a

Basis of entitlement and age

Number

c

White
Average
monthly
benefit
(dollars)

Number

Other b

Black
Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

Number

Average
monthly
benefit
(dollars)

349.30

123,990

297.00

All spouses
Total

2,832,350

439.00

2,553,740

451.30

146,250

2,793,950

441.70

2,529,560

453.10

141,390

352.20

114,860

303.00

151,140
20,350
23,080
30,620
28,740
20,690
14,610
5,850
7,200

240.80
138.20
168.80
211.00
252.60
297.20
326.30
381.80
391.30

111,950
14,260
16,650
22,410
20,790
15,660
11,440
4,660
6,080

257.80