The Social Security Administration (SSA) currently has about 65,000 employees (including permanent full-time and part-time employees and temporary employees).

The administrative cost of Social Security (OASDI) was $3.5 billion in 1998 and is paid from Social Security taxes.

SSA also runs the Supplemental Security Income (SSI) program. SSI administrative costs were about $2.3 billion in FY 1998, and are paid from general federal revenues.

Social Security is a compulsory, national program mandated by United States Federal law. Even apart from arguments that only a governmental entity can be assured of administering such a program in an unbiased, objective manner, only the federal government is sufficiently large in size to administer a national program of this scope at the low costs achievable through economies of scale and the absence of any profit motive.

The majority of those who do not pay in are state and local government employees covered by their own retirement systems. About 30% of state and local government workers are not covered at present. If all new state and local workers were covered under Social Security, IO% of the long term deficit would be eliminated. Federal employees hired after 1983 are covered. Beginning in 1984 the President, Vice President, Members of Congress, political appointees, and judges are covered, as are federal employees hired before 1983 who were not covered under a federal retirement program.

A retiree cannot exhaust his contributions plus interest, because benefits are not directly related to the amount of contributions. Instead, a formula in the law is used to determine a monthly benefit based on an individual's average career earnings and year of retirement.

The money that is withheld from workers' paychecks includes state, local and federal taxes, as well as contributions toward employment-based benefits, such as health insurance or other fringe benefits that the employer offers.

Only the federal taxes are sent to Washington. They include "FICA taxes" (authorized under the Federal Insurance Contribution Act) to pay for Social Security and Hospital Insurance under Medicare. The federal part also includes income taxes that pay for the general operations of the federal government -- national defense, public parks, air traffic control, income security program for low-income people, such as Medicaid, food stamps, and all other things the federal government pays for (including interest on government bonds, and the national debt.

In 1998 FICA taxes for Social Security were 6.2 percent of the income an individual earned up to $68,400. Workers also pay 1.45 percent of their pay for Hospital Insurance under Medicare. Employers match both shares of the FICA tax that workers have withheld from their pay.

This money, along with federal income taxes, is sent to depository institutions (banks) throughout the country and they send it to the U.S. Treasury Department. The income taxes are used to pay for general government operations. The Treasury Department credits the Social Security and Medicare trust funds for FICA taxes. These funds are used to pay for Social Security and Medicare benefits. If FICA taxes are more than is needed to pay for Social Security (as is now the case), the funds are invested in Treasury bonds and earn interest that will later be due to the Social Security trust funds.

The Social Security Administration publishes a report every two years which highlights the principal features of social security systems throughout the world. The latest version is Social Security Programs Throughout the World - 1997. It can be obtained by writing to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954. The cost is $35 and the publication number is 017-070-00478-4.

Covered workers cannot "opt" out of Social Security coverage. State and local employees covered by a retirement system may elect by referendum to be covered by Social Security. Election workers who earn less then $1000 may also be excluded.

The requirement for a Social Security number goes back to a Department of Treasury regulation (47-04) issued in 1936. Authority for promulgation the regulation came from the original Social Security Act (P.L. 74-271) which gave the Commissioner of Internal Revenue authority to prescribe the manner in which Social Security taxes would be collected.

Social Security is designed to provide universal retirement, disability, and survivor insurance, thus giving beneficiaries a floor of protection. A program that allowed dropouts would gradually erode its base of support.

Social Security provides, not a savings account, but retirement, survivor, and disability insurance. As with other insurance, there are cases in which the insurance is not needed; however, its value existed when workers needed protection. Most people purchase fire insurance, but how many believe they lost out because they had no fire and could not make a claim?

Social Security Administrative costs are expected to be about $3.4 billion in 1998, out of total expenditures of $383 billion, or less than 1%. It is unlikely that adequate service could be provided at significantly lower cost..

www.adss.org

Any changes to the Social Security program will require Congressional action. While proposals have been made in both the House and Senate, no timetable has been set for debate and decision.

About 96% of workers are covered by Social Security. The majority of those not covered are state and local government employees with their own retirement systems.

An individual can make contribution to the U.S. Treasury and specify that it's for Social Security trust funds. There is not, however, a tax deduction for such a contribution.

The excess of income over outgo will be used to help pay benefits when outgo exceeds income: when the Baby Boomers retire. These "excess" funds earned interest averaging 7.5% in 1997. Interest earned is added to Social Security's assets--assets that will be needed to pay benefits to workers in the future.

Either through their direct participation in events or through participation of their care-givers and/or relatives/friends.

SSA carefully oversees the formulation and execution of its budget. Moreover, SSA continually seeks ways to improve productivity and reduce the cost of operations, while maintaining or improving service to the public. Automation is critical to the success of these efforts. SSA is installing a network of computers in order to establish a technology infrastructure that is needed to support basic service delivery for all of the programs that SSA administers. The decision to install this technology was based on the computer network's ability to:

Replace obsolete terminal equipment critical for service delivery, including claims- taking;

Improve productivity with basic, immediately available office automation capabilities that more than pay for the computing network; and

Establish a technology infrastructure that facilitates additional business improvements to further reduce costs -and improve service.

Social Security information is available to everyone, not just for those receiving benefits.

Social Security employees participate in a wide variety of outreach programs both on the national and local levels to educate the public about how the program works, and about their rights and responsibilities under the program. Many such outreach efforts are achieved through third party organizations and individuals who, in turn, pass on their knowledge of the Social Security programs to their local communities and constituents.

The agency is currently involved in a major initiative designed to provide information to the American public so they can participate in the national discussions on the future of Social Security. The President has called for Social Security employees to work to ensure that Americans have the information they need to make informed judgements about desirable reforms that will ensure the long-range future of the program. In addition, the American Association of Retired Persons, the Concord Coalition, Americans Discuss Social Security and a variety of other organizations are sponsoring forums and undertaking other activities designed to engage the public in a dialogue on Social Security's future. At the end of this year, there will be a White House conference on Social Security, followed by bipartisan negotiations to reform Social Security.

The benefit provisions have been altered to improve benefits available, including provisions for annual cost-of-living adjustments, increased benefits for aged widow(er)s and disabled widow(er)s, and divorced spouses of marriages of ten years or more in duration. The benefit provisions were changed by the 1983 Social Security Amendments to gradually increase the retirement age from 65 to 67 for those born after 1937.

About 96% of workers are covered under Social Security. Most of those not covered are state and local government employees with their own retirement systems. About 30% of state and local government workers are not presently covered. If all new state and local workers were covered under Social Security, 10% of the long term deficit would be eliminated.

Covered workers cannot "opt" out of Social Security coverage. State and local employees covered by a retirement system may' elect by referendum to be covered by Social Security if the employer wishes to do so. Election workers who earn less than $ 1000 per year may also be excluded.

The Social Security actuaries use three different sets of assumptions in their projections for the Social Security system--optimistic, intermediate, and pessimistic. These are intended to illustrate Social Security's financial status under most of the possibilities that might confront the system. Under the intermediate assumptions, the annual growth in real GDP is assumed to average 2.0% over the ten year period of 1998- 2007. After 2007, under all three sets of assumptions, the projections for GDP are assumed to average 2.0% over the ten year period of 1998-2007. After 2007, under all these sets of assumptions, the projections for GDP growth are based on assumed rates of growth in employment, average hours worked, and labor productivity.

A credit like the ones suggested would require legislative change. Your Congressional Representative and/or Senators could pursue this recommendation for you.

If welfare recipients work, they are required to pay all federal taxes, including Social Security and Medicare contributions, as well as state and local taxes.

Higher income beneficiaries (about the top 20% currently) pay taxes on their Social Security Benefits. If a married beneficiary has adjusted gross income (including 50% of Social Security benefits) exceeding $32,000 ($25,000 for single), then 50% of the income above this amount is subject to taxation. For income above $44,000 ($34,000 for single), 85% is subject to taxation.

Social Security's financial and actuarial status are evaluated for both the short- range (the next ten years) and the long-range (next 75 years). The intermediate assumptions reflect the "best estimates" of the Board of Trustees of what is likely to happen during these periods. Social Security is a public social insurance system for the protection of loss of income due to retirement and to death or disability before retirement, and as such is subject to different tests of financial solvency than are private pension systems.

The demographic assumptions include fertility rates, and mortality rates, and immigration rates. The economic assumptions for projected GDP growth include rates of growth in employment, average hours worked, labor productivity, and increases in the cost-of-living.

Slightly less than 1% of Social Security trust fund outlays, or about a $3.4 billion, is projected to be spent in 1998 for administrative costs.

Employee and employer contributions under FICA are 6.2% each for Social Security (OASDI) and 1.45% each for Medicare (HI). The HI Trust Fund is separate from the Social Security trust funds.

The Social Security actuaries make estimates for taxable payroll that are intended to include all covered employment, which would also include beneficiaries who are working.

The National Bipartisan Commission on the Future of Medicare is currently studying the many issues facing the Medicare program. Medicare financing faces significant shortfalls with in the next ten years. The commission was appointed by the President and Congress and includes members of Congress and recognized health care experts. The Commission is due to issue its recommendations by March 1, 1999

FICA contributions are made to the U.S. Department of Treasury, which allocates them to the trust funds to which they are designated.

Social Security administrative costs are slightly less than 1% of total program costs.

Social Security administrative costs are expected to be about $3.4 billion in 1998, out of total expenditures of $383 billion, or slightly less than 1%.

The Social Security Administration recognized and began working on the year 2000 problem in 1989. The agency has about 90 percent of its 33 million lines of proprietary software ready for the year 2000. SSA is spending the rest of 1998 cooperating with the interagency task force to assist other government agencies in addressing their respective computer concerns.

The Social Security actuaries, in consultation with economists, project these on the basis of past experience and judgements as to the future.

Over 96% of workers are covered under Social Security. The majority of those not covered are state and local government employees with their own retirement systems. About 30% of state and local government workers are not presently covered. Federal employees hired after 1983; and beginning in 1983, the President, the Vice President, the Congress, political appointees, and judges; and federal employees hired before 1984 who were not covered under a federal retirement program are covered under Social Security.

The administrative costs of the Social Security program are very low--less than one percent of total program costs. Private investment account administrative costs can be expected to be significantly higher, in part because of selling expenses and more detailed record keeping because the investment managers are in business to make a profit. Administrative costs of these accounts would be charged to each individual. Under Social Security, administrative costs are shared by the 147 million contributors, making it possible for economics of scale to work effectively to reduce administrative costs. Social Security is also not making a "profit" from individual contributors.

At mid-year, the Social Security Administration (SSA) sends a form to working beneficiaries to request an earnings estimate for the year. This form is updated every year to reflect current earnings limits to help avoid overpayments.

Effective January 1997, most beneficiaries are no longer required to file an additional annual report of their actual earnings. Instead, we accept the earnings data submitted by employers on the W-2 forms or the self-employment income that beneficiaries report on their tax returns.

Employees in our local field offices and at our national 800 number are trained to help beneficiaries complete all SSA forms. They also work with individual claimants and beneficiaries to resolve specific issues. People with questions about estimating their earnings should call 1-800-772-1213.

Over 99% of Social Security income is used for current and future benefits. Less then 1% is used for administrative expenses.

You can call the Social Security 800 number and schedule an appointment for either a "teleclaim" or an in-office visit.

This is no longer so. Some are paid on different days, depending on the beneficiary's date of birth and eligibility date.

You can call back and ask to speak to a supervisor.

Social Security administrative costs are slightly less than 1% of total costs, a lower administrative cost than most public or private programs. The Social Security Administration has reduced its workforce by 15,000 employees in recent years and plans further reductions in the next 2-3 years. It is in the midst of a major technology enhancement designed to further increase efficiencies. There are many experts who question whether it has reduced its administrative costs and staffing levels too much.

This is something that needs to be discussed between the Social Security Administration and the U.S. Treasury Department. It would require legislative changes.