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Old 08-25-2011, 09:17 AM
Janke Janke is offline
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Join Date: Sep 2008
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Janke Janke is offline
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Join Date: Sep 2008
Posts: 686
15 yr Member
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[QUOTE=SSDIHelp;799045]
Quote:
Originally Posted by finz View Post
"

Very true, Finz. It is my understanding that SSDI, SSI and SS come from the same pot of money in the budget line item, Social Security. Financially, they are allocated to different departments and/or offices. I could be wrong and if I am, I apologize to you and the group.
Trudi

The Social Security Administration has operating funds that is used to pay rent for buildings; to provide desks and computers; and to pay salaries of employees. That has nothing to do with FICA/OASDI payroll taxes.

Title II of the Social Security Act authorizes the collection of FICA/OASDI taxes from people working for 'covered' employers. A covered employer is one whose employees pay into the Social Security program. There are a few employers, larger government/schools, who don't pay into the Social Security system; people who are paid as contract employees don't pay in; people getting paid as care providers for their spouses don't pay in; there are a few others. The vast majority of employees in the US are 'covered' and pay FICA/OASDI taxes.

Employees earn quarters of coverage (credits). Having sufficient QC's means a person is 'insured' for the three categories of Title II benefits; retirement, suvivor and disability. The earnings of the employee are used in a formula to determine the monthly benefit. Certain family members, children and spouses, can sometimes get benefits depending upon the formulas. All of that is considered Title II benefits because they are derived from the FICA/OASDI taxes paid over the years by the employee. Those taxes are (on paper) held in the Social Security 'trust funds' and it is those (paper) funds that are used to pay out the monthly benefits. I think some of those 'trust funds' are also divided between retirement/survivors and disability, but I do not understand the mechanics behind that. People with low lifetime earnings can get low Social Security retirement or disability benefits.

Supplemental Security Income (SSI) is a program for three categories of people - disabled, blind, over age 65. SSI is needs based. Public assistance. Welfare. The recipients have to meet certain income and resource limitations. Their family members income and resources can be factored in. US citizens and some categories of non-citizen residents can qualify. SSI benefits are not paid from the Social Security 'trust funds'. SSI benefits come from general tax revenues like other welfare benefits such as food stamps or TANF. SSI is authorized under Title XVI of the Social Security Act. SSI benefits can stop and start and change every month. No one 'pays into' SSI since SSI benefits are paid out of general revenues - the payments are not related to the amount of taxes paid at all. Adults who have never worked can get SSI benefits. Mentally challenged, Down's syndrome, cerebral palsey, elderly immigrants, stay at home mothers who become disabled later in life are examples of people who have never worked and can get SSI benefits if they meet the income and resource limitations. Other people may have worked a little and earned a small Social Security retirement or disability benefit and get some SSI to supplement their other income. Some states add state funds to the federal SSI funds for their residents. California is the highest. The current federal benefit is $674. An SSI recipient may get less than that because they have other income sources.

Since a Social Security check can be under $100 to the highest amount hovering around $2000, I am certain there are people who have never worked who can get the same from SSI as people who are getting Social Security retirement or disability. But it doesn't come from the same pot. Nor do the operating funds come from the same pot.
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"Thanks for this!" says:
Mz Migraine (08-25-2011)