This section presents data related to governmental expenditures for social insurance and human services; governmental programs for old-age, survivors, disability, and health insurance (OASDHI); governmental employee retirement; private pension plans; government unemployment and temporary disability insurance; federal supplemental security income payments and aid to the needy; child and other welfare services; and federal food programs. Also included here are selected data on workers compensation and vocational rehabilitation, child support, child care, charity contributions, and philanthropic trusts and foundations.
The principal source for these data is the Social Security Administration’s AnnualStatistical Supplement to the Social Security Bulletin which presents current data on many of the programs.
Social insurance under the Social Security Act-Programs established by the Social Security Act provide protection against wage loss resulting from retirement, prolonged disability, death, or unemployment, and protection against the cost of medical care during old age and disability. The federal OASDI program provides monthly benefits to retired or disabled insured workers and their dependents and to survivors of insured workers. To be eligible, a worker must have had a specified period of employment in which OASDI taxes were paid. The age of eligibility for full retirement benefits has been 65 years old for many years. However, for persons born in 1938 or later that age will gradually increase until it reaches age 67 for those born after 1959. Reduced benefits may be obtained as early as age 62. The worker’s spouse is under the same limitations. Survivor benefits are payable to dependents of deceased insured workers. Disability benefits are payable to an insured worker under full retirement age with a prolonged disability and to the disabled worker’s dependents on the same basis as dependents of retired workers. Disability benefits are provided at age 50 to the disabled widow or widower of a deceased worker who was fully insured at the time of death. Disabled children, aged 18 or older, of retired, disabled, or deceased workers are also eligible for benefits. A lump sum benefit is generally payable on the death of an insured worker to a spouse or minor children. For information on the medicare program, see Section 3, Health and Nutrition.
Retirement, survivors, disability, and hospital insurance benefits are funded by a payroll tax on annual earnings (up to a maximum of earnings set by law) of workers, employers, and the selfemployed. The maximum taxable earnings are adjusted annually to reflect increasing wage levels (see Table 541). Effective January 1994, there is no dollar limit on wages and self-employment income subject to the hospital insurance tax. Tax receipts and benefit payments are administered through federal trust funds. Special benefits for uninsured persons; hospital benefits for persons aged 65 and over with specified amounts of social security coverage less than that required for cash benefit eligibility; and that part of the cost of supplementary medical insurance not financed by contributions from participants are financed from federal general revenues.
Unemployment insurance is presently administered by the U.S. Employment and Training Administration and each state’s employment security agency. By agreement with the U.S. Secretary of Labor, state agencies also administer unemployment compensation for eligible ex-military personnel and federal employees. Under state unemployment insurance laws, benefits related to the individual’s past earnings are paid to unemployed eligible workers. State laws vary concerning the length of time benefits are paid and their amount. In most states, benefits are payable for 26 weeks and, during periods of high unemployment, extended benefits are payable under a federal-state program to those who have exhausted their regular state benefits. Some states also supplement the basic benefit with allowances for dependents.
Unemployment insurance is funded by a federal unemployment tax levied on the taxable payrolls of most employers. Taxable payroll under the federal act and 12 state laws is the first $7,000 in wages paid each worker during a year. Forty-one states have taxable payrolls above $7,000. Employers are allowed a percentage credit of taxable payroll for contributions paid to states under state unemployment insurance laws. The remaining percent of the federal tax finances administrative costs, the federal share of extended benefits, and advances to states. About 97 percent of wage and salary workers are covered by unemployment insurance.
Retirement programs for government employees-The Civil Service Retirement System (CSRS) and the Federal Employees’ Retirement System (FERS) are the two major programs providing age and service, disability, and survivor annuities for federal civilian employees. In general, employees hired after December 31, 1983, are covered under FERS and the social security program (OASDHI), and employees on staff prior to that date are members of CSRS and are covered under medicare. CSRS employees were offered the option of transferring to FERS during 1987 and 1998. There are separate retirement systems for the uniformed services (supplementing OASDHI) and for certain special groups of federal employees. State and local government employees are covered for the most part by state and local retirement systems similar to the federal CSRS. In many jurisdictions these benefits supplement OASDHI coverage.
Workers’ compensation-All states provide protection against work-connected injuries and deaths, although some states exclude certain workers (e.g., domestic workers). Federal laws cover federal employees, private employees in the District of Columbia, and longshoremen and harbor workers. In addition, the Department of Labor administers ‘‘black lung’’ benefits programs for coal miners disabled by pneumoconiosis and for specified dependents and survivors. Specified occupational diseases are compensable to some extent. In most states, benefits are related to the worker’s salary. The benefits may or may not be augmented by dependents’ allowances or automatically adjusted to prevailing wage levels.
Income support-Income support programs are designed to provide benefits for persons with limited income and resources. The Supplemental Security Income (SSI) program and Temporary Assistance for Needy Families (TANF) program are the major programs providing monthly payments. In addition, a number of programs provide money payments or in-kind benefits for special needs or purposes. Several programs offer food and nutritional services. Also, various federal- state programs provide energy assistance, public housing, and subsidized housing to individuals and families with low incomes. General assistance may also be available at the state or local level.
The SSI program, administered by the Social Security Administration, providesincome support to persons aged 65 or older and blind or disabled adults and children. Eligibility requirements and federal payment standards are nationally uniform. Most states supplement the basic SSI payment for all or selected categories of persons.
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 contained provisions that replaced the Aid to Families With Dependent Children (AFDC), Job Opportunities and Basic Skills (JOBS), and Emergency Assistance programs with the Temporary Assistance for Needy Families block grant program. This law contains strong work requirements, comprehensive child support enforcement, support for families moving from welfare to work, and other features. The TANF became effective as soon as each state submitted a complete plan implementing TANF, but no later than July 1, 1997. The AFDC program provided cash assistance based on need, income, resources, and family size.
Federal food stamp program-Underthe food stamp program, single persons and those living in households meeting nationwide standards for income and assets may receive coupons redeemable for food at most retail food stores or provides benefits through electronic benefit transfer. The monthly amount of benefits or allotments a unit receives is determined by household size and income. Households without income receive the determined monthly cost of a nutritionally adequate diet for their household size. This amount is updated to account for food price increases. Households with income receive the difference between the amount of a nutritionally adequate diet and 30 percent of their income, after certain allowable deductions.
To qualify for the program, a household must have less than $2,000 in disposable assets ($3,000 if one member is aged 60 or older), gross income below 130 percent of the official poverty guidelines for the household size, and net income below 100 percent of the poverty guidelines. Households with a person aged 60 or older or a disabled person receiving SSI, social security, state general assistance, or veterans’ disability benefits may have gross income exceeding 130 percent of the poverty guidelines. All households in which all members receive TANF or SSI are categorically eligible for food stamps without meeting these income or resource criteria. Households are certified for varying lengths of time, depending on their income sources and individual circumstances.
Health and welfare services- Programs providing health and welfare services are aided through federal grants to states for child welfare services, vocational rehabilitation, activities for the aged, maternal and child health services, maternity and infant care projects, comprehensive health services, and a variety of public health activities. For information about the medicaid program, see Section 3, Health and Nutrition.
Noncash benefits-The U.S. Census Bureau annually collects data on the characteristics of recipients of noncash (inkind) benefits to supplement the collection of annual money income data in the Current Population Survey (see text, Section 1, Population, and Section 14, Prices). Noncash benefits are those benefits received in a form other than money which serve to enhance or improve the economic well-being of the recipient. As for money income, the data for noncash benefits are for the calendar year prior to the date of the interview. The major categories of noncash benefits covered are public transfers (e.g., food stamps, school lunch, public housing, and medicaid) and employer or union-provided benefits to employees.
Statistical reliability-For discussion of statistical collection, estimation, and sampling procedures and measures of statistical reliability applicable to HHS and Census Bureau data, see Appendix III.