Brief Facts and Statistics

This report provides facts and statistics about Social Security that are frequently requested by Members of Congress and their staffs. It includes information about Social Security taxes and benefits, the program's impact on its recipients' incomes, federal tax receipts, federal spending and the economy, administrative information, and selected facts about Medicare.

Order Code 94-27 CRS Report for Congress Received through the CRS Web http://wikileaks.org/wiki/CRS-94-27 Social Security: Brief Facts and Statistics Updated January 26, 2006 Gary Sidor Research Information Specialist Knowledge Services Group Congressional Research Service ˜ The Library of Congress Social Security: Brief Facts and Statistics Summary http://wikileaks.org/wiki/CRS-94-27 This document provides brief facts and statistics about Social Security that are frequently requested by Members of Congress and their staffs. It includes information about Social Security taxes and benefits, the program’s impact on recipients’ incomes, federal tax receipts, federal spending and the economy, and administrative information. http://wikileaks.org/wiki/CRS-94-27 Contents Recipient Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Recipients By Trust Fund and Eligibility Status . . . . . . . . . . . . . . . . . . . . . . 2 Recipients by State and Other Location . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 http://wikileaks.org/wiki/CRS-94-27 Tax Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Workers Exempt From the Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Social Security Taxpayers in 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Social Security Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 How the Tax Rates Are Divided . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 How Much Earnings Are Taxable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Annual OASDI and HI Tax Payments in 2004 . . . . . . . . . . . . . . . . . . . . . . . 8 Historical Level of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Social Security Taxpayers Per Recipient . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Benefit Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Benefit Formula . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Quarters of Coverage (QCs) Required for Eligibility . . . . . . . . . . . . . . . . . 11 Minimum Ages To Receive Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Ages At Which Persons Receive Full Retirement Benefits . . . . . . . . . . . . . 13 Average Monthly Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Social Security Benefit Increases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Initial Monthly Benefits for Workers Retiring in 2005 . . . . . . . . . . . . . . . . 17 New Benefit Awards as Percent of Final Year’s Earnings . . . . . . . . . . . . . 18 Benefit Reductions and Offsets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Maximum Monthly Earnings From Work Permitted for Disability Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 How Long It Takes To Get Your Taxes Back . . . . . . . . . . . . . . . . . . . . . . . 20 Social Security Benefits May Be Partially Taxable . . . . . . . . . . . . . . . . . . . 20 Economic Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Income of Social Security Recipients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Social Security’s and Medicare’s Costs as Percent of Federal Budget, FY2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Social Security and Medicare Spending as Percent of Gross Domestic Product (GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Financial Status of Social Security Trust Funds . . . . . . . . . . . . . . . . . . . . . 25 Administrative Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Offices, Employees, and Administrative Costs . . . . . . . . . . . . . . . . . . . . . . 27 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Sources for Information in this Document . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Other References for Program Descriptions . . . . . . . . . . . . . . . . . . . . . . . . 28 Benefit Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Tax Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Economic Facts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 List of Figures Figure 1. Ratio of Covered Workers to Beneficiaries . . . . . . . . . . . . . . . . . . . . . 10 Figure 2. Cost-of-Living Adjustments Since 1975 . . . . . . . . . . . . . . . . . . . . . . . 16 Figure 3. Historical Cost-of-Living Adjustments . . . . . . . . . . . . . . . . . . . . . . . . 17 Figure 4. Proportion of Income of Single Beneficiaries Aged 65 and Older . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Figure 5. Reliance of the Age 65+ on Social Security . . . . . . . . . . . . . . . . . . . . . 24 Figure 6. Balance of the Social Security Trust Funds . . . . . . . . . . . . . . . . . . . . . 26 http://wikileaks.org/wiki/CRS-94-27 List of Tables Table 1. Recipients, By Selected Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Table 2. Where Recipients Live . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 3. Social Security Taxpayers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 4. Social Security Tax Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Table 5. FICA and SECA Tax Rates Fund Both Social Security and Medicare Hospital Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Table 6. Maximum Earnings Taxable by FICA and SECA . . . . . . . . . . . . . . . . . 7 Table 7. 2004 Social Security Tax Payments, Selected Work Histories . . . . . . . 8 Table 8. Social Security Tax Rates, Selected Years . . . . . . . . . . . . . . . . . . . . . . . 9 Table 9. Amount of FICA or SECA Tax Paid, Selected Wage Histories and Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Table 10. Ratio of Covered Workers to Beneficiaries . . . . . . . . . . . . . . . . . . . . . 10 Table 11. Quarters of Coverage, Selected Facts . . . . . . . . . . . . . . . . . . . . . . . . . 12 Table 12. Age Restrictions for OASDI Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 12 Table 13. Full Retirement Age Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Table 14. Average Monthly Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Table 15. Historical Cost-of-Living Adjustments . . . . . . . . . . . . . . . . . . . . . . . . 15 Table 16. New Benefit Awards to Retired Workers in 2005 . . . . . . . . . . . . . . . 17 Table 17. Initial Retirement Benefits as a Percent of Earnings . . . . . . . . . . . . . 18 Table 18. Earnings Test and Other Benefit Reductions . . . . . . . . . . . . . . . . . . . 19 Table 19. Substantial Gainful Activity Levels . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Table 20. Expected Payback Times (in years)*, Selected Earnings Histories . . 20 Table 21. A Lower Portion of Taxable Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 21 Table 22. A Higher Portion of Taxable Benefits . . . . . . . . . . . . . . . . . . . . . . . . 21 Table 23. Distribution of Beneficiaries and Benefits, By Income Band . . . . . . . 22 Table 24. Aged Income Sources and Poverty Status . . . . . . . . . . . . . . . . . . . . . 23 Table 25. The Role of Social Security and Medicare in the Federal Budget, FY2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Table 26. Social Security and Medicare Spending as a Percent of GDP . . . . . . 25 Table 27. Various Performance Measures of the Trust Funds . . . . . . . . . . . . . . 26 Table 28. Administrative Structure and Customer Service Contacts for SSA . . 27 http://wikileaks.org/wiki/CRS-94-27 Social Security: Brief Facts and Statistics This document provides facts and statistics about Social Security that are frequently requested by Members of Congress and their staffs. Its purpose is to provide quick answers to basic questions about the program. It should not be treated as a guide to Social Security. The reader is advised to consult other sources for explanations of how eligibility and benefits are determined and how the program is financed. Among them are the Social Security Administration’s (SSA) website at [http://www.ssa.gov] and the Congressional Research Service’s (CRS) product line of reports, issue briefs, and fact sheets on Social Security, accessible through the CRS homepage at [http://www.crs.gov] (for congressional office users only). SSA also issues numerous pamphlets on various aspects of the program as well as a lengthy Handbook on Social Security. For other sources that provide data and basic descriptive material, see the references listed at the end of this document. This document is updated periodically. CRS-2 Recipient Statistics The federal Old-Age, Survivors, and Disability Insurance (OASDI) programs collectively make up the system commonly referred to as Social Security. Officially, there are two separate programs, each of which is administered by the Social Security Administration (SSA) and managed by the operations of its own trust fund. The OldAge and Survivors Insurance (OASI) program and the Disability Insurance (DI) program each disburse benefits to eligible retired or disabled workers and their dependents, who have been covered by payroll contributions. http://wikileaks.org/wiki/CRS-94-27 Recipients By Trust Fund and Eligibility Status Benefit payments are disbursed by the relevant trust fund. Retired workers and their eligible dependent family members, as well as the dependent family members of deceased workers, receive benefits from the Old-Age and Survivors Insurance trust fund. Disabled workers and their eligible dependent family members receive benefits from the Disability Insurance trust fund. Table 1 breaks down recipients by trust fund, by entitlement, and by age. Table 1. Recipients, By Selected Indicators Recipients (as of December 2005) 48.4 million 100.0% Old-Age and Survivors Insurance Disability Insurance 40.1 million 8.3 million 82.8% 17.2% Entitled on their own work records 37.0 million 76.4% Entitled as dependents — Widow(er)s & surviving parents — Wives and husbands — Young children & adults disabled since childhood 11.5 million (4.7 million) (2.7 million) 23.7% (9.8%) (5.5%) (4.0 million) (8.3%) 34.0 million 13.6 million 70.2% 29.8% Age 65 or older Under age 65 Source: Social Security Administration (SSA), Office of the Actuary. Note: Totals may not equal the sums of rounded components. CRS-3 Recipients by State and Other Location Social Security benefits are paid to eligible individuals in all fifty states, the U.S. outlying areas, and foreign countries. Table 2 illustrates the distribution of recipients in December 2003 by where they live. Table 2. Where Recipients Live State of other location Total Alabama 47,038,391 % of Total 100.0% 867,601 1.8% Alaska 60,860 0.1% Arizona 863,874 1.8% Arkansas 543,727 1.2% 4,363,657 9.3% Colorado 557,253 1.2% Connecticut 582,877 1.2% Delaware 141,488 0.3% California http://wikileaks.org/wiki/CRS-94-27 Number District of Columbia 72,209 0.2% Florida 3,330,425 7.1% Georgia 1,168,095 2.5% Hawaii 194,019 0.4% Idaho 211,528 0.4% Illinois 1,867,671 4.0% Indiana 1,032,417 2.2% Iowa 546,065 1.2% Kansas 443,706 0.9% Kentucky 768,861 1.6% Louisiana 731,511 1.6% Maine 262,533 0.6% Maryland 751,359 1.6% Massachusetts 1,061,851 2.3% Michigan 1,699,384 3.6% 765,228 1.6% Minnesota Mississippi 533,375 1.1% Missouri 1,033,886 2.2% Montana 163,659 0.3% Nebraska 287,891 0.6% Nevada 327,319 0.7% New Hampshire 211,499 0.4% 1,363,838 2.9% 294,669 0.6% New York 3,035,697 6.5% North Carolina 1,436,124 3.1% 114,047 0.2% New Jersey New Mexico North Dakota CRS-4 State of other location Ohio 1,932,026 % of Total 4.1% Oklahoma 613,515 1.3% Oregon 591,461 1.3% Pennsylvania 2,386,426 5.1% Rhode Island 192,662 0.4% South Carolina 735,084 1.6% South Dakota http://wikileaks.org/wiki/CRS-94-27 Number 137,880 0.3% Tennessee 1,041,360 2.2% Texas 2,792,148 5.9% Utah 256,551 0.5% Vermont 108,248 0.2% Virginia 1,093,695 2.3% Washington 890,466 1.9% West Virginia 405,444 0.9% Wisconsin 928,505 2.0% Wyoming 78,745 0.2% 5,425 * 11,245 * Outlying Areas: American Samoa Guam No. Mariana Islands Puerto Rico Virgin Islands Foreign Countries 2,157 702,675 * 1.5% 15,024 427,446 0.9% Source: Social Security Administration, Office of Policy. Note: Totals may not equal the sums of rounded components. * = less than 0.1% CRS-5 Tax Facts The Social Security trust funds are financed by payroll taxes on covered earnings. Being “covered” by Social Security means that a worker is employed in a job or is self-employed and contributes a portion of his or her earnings to Social Security. Workers not covered by Social Security are either covered by a similar eligible contributory system offered by their employers outside of Social Security, do not have high enough earnings for mandatory participation, or have another special exemption. The type of workers exempt from coverage are provided below. Workers Exempt From the Tax ! ! http://wikileaks.org/wiki/CRS-94-27 ! ! ! ! ! State and local government workers participating in alternative retirement systems (HI tax is mandatory for workers hired since April 1, 1986). Election workers earning $1,300 or less a year (in 2006). Career federal employees hired before 1984 who did not choose Social Security coverage (HI tax is mandatory for all federal workers); College students working at their academic institutions. Ministers who choose not to be covered, and certain religious sects. Household workers earning less than $1,500 a year (in 2006), and those under age 18 for whom household work is not their principal occupation. Self-employed workers with annual net earnings below $400. Social Security Taxpayers in 2003 Covered workers contribute to Social Security by paying payroll taxes on their earnings. Wage and salaried workers often have their contributions deducted from each paycheck they receive, while self-employed must report earnings regularly with the Social Security Administration. Table 3 provides the number of covered workers that contribute to the Social Security system, as of December 2003. The total number of taxpayers is much lower than the sum of the two coverage groups because approximately six million individuals overlap coverage and engage separately in both wage and salaried work as well as in self-employed work. CRS-6 Table 3. Social Security Taxpayers Taxpayers, by coverage group Number Number of wage and salaried taxpayers 145.1 million Number of self-employed taxpayers Total taxpayers* 15.1 million 154.3 million Source: Social Security Administration, Office of Policy. * Includes people who are both self-employed and wage or salaried employees. http://wikileaks.org/wiki/CRS-94-27 Social Security Tax Rates Covered wage and salaried workers contribute 7.65% of their earnings below the taxable maximum earnings threshold (explained below) to the Social Security system. Employers of covered workers contribute to the system an additional 7.65% of the earnings of each employee. The payroll taxes levied on workers and their employers are called FICA taxes, after the legislation that created them, the Federal Insurance Contribution Act. Self-employed workers contribute roughly 15.30% of their net earnings to the system. The payroll tax levied on the self-employed are known as SECA taxes, for the Self-Employed Contribution Act. FICA and SECA tax rates are displayed in Table 4. On paper, it appears that the self-employed are subject to a tax rate that is double that of a wage and salaried worker, essentially equaling both the employee and employer FICA portions. However, the self-employed receive two breaks that are not offered to wage and salaried workers and their employers. The first break is that not all of a self-employed worker’s earnings are subject to SECA taxes. Only 92.35% of net earnings are subject to SECA taxes (meaning that 7.65% is exempt). The second break is that one-half of the tax payments made in the form of SECA contributions are deductible for income tax purposes. Table 4. Social Security Tax Rates Type of employment and tax FICA rate is paid by employee and employer: SECA rate is paid by self-employed: So urce: Social Security Administration [http://www.ssa.gov/pubs/10003.html]. % of Earnings 7.65% each 15.30%* website, Electronic Fact Sheet * = The self-employed now compute the tax using only 92.35% of net earnings, and one-half of the tax so computed is deductible for income tax purposes. CRS-7 How the Tax Rates Are Divided Portions of both the FICA and SECA tax rates are dedicated to fund both Social Security and the Medicare Hospital Insurance (HI) program, also known as Medicare “Part A.” Of the 7.65% FICA tax rate paid by both employers and employees, 6.2 percentage points go to OASDI, and the remaining 1.45% of the tax is used to fund HI. Similarly, of the 15.3% SECA rate, 12.4 percentage points is dedicated to OASDI, while 2.9% goes to HI. Table 5 provides a detail of the breakdown. http://wikileaks.org/wiki/CRS-94-27 Table 5. FICA and SECA Tax Rates Fund Both Social Security and Medicare Hospital Insurance FICA rate (employee and employer, each) SECA rate 6.20% 12.4% 1.45% 7.65% 2.9% 15.3% Old-age, survivors, and disability insurance (OASDI) Hospital insurance (HI) Total (OASDI and HI) Source: Social Security Administration website, Electronic Fact Sheet [http://www.ssa.gov/ pubs/10003.html]. How Much Earnings Are Taxable Covered workers contribute the proper percentage of their earnings by either the FICA or SECA tax. However, not all earnings are subject to FICA and SECA taxes. There is a maximum taxable earnings threshold, which rises each year with overall wage growth. Earnings above the cap are not subject to the OASDI portion of the FICA and SECA taxes. The earnings above the cap, however, are subject to the HIdedicated portion of the FICA and SECA taxes. The wage cap is effective for both the employer and employee OASDI-dedicated portions of the FICA tax. Recent wage cap limits are shown in Table 6. The Social Security Administration’s Office of Policy estimates that 94.6% of covered workers had earnings below the maximum taxable threshold in 2002, the latest year for which data is available. Table 6. Maximum Earnings Taxable by FICA and SECA 2004 2005 2006 Maximum taxable for OASDI:* $87,900 $90,000 $94,200 Maximum taxable for HI: No limit No limit No limit Source: Social Security Administration website, Electronic Fact Sheet [http://www.ssa.gov/pubs/ 10003.html]. * Adjusted yearly to reflect the growth of average wages. CRS-8 Annual OASDI and HI Tax Payments in 2004 http://wikileaks.org/wiki/CRS-94-27 Self-employed workers are subject to the payroll tax rate, which amounts to the sum of both the employer and employee shares of the FICA tax rate. However, the self-employed benefit from two breaks that reduce their overall tax burden. First, self-employed workers are only required to make 92.35% of their net earnings subject to the SECA tax rate. Wage and salaried employees have the FICA tax rate applied to all (100%) of their earnings. Second, self-employed workers can deduct one-half of their SECA tax payments from their income taxes. For example, if a hypothetical self-employed person had $35,057 in net earnings, an amount equivalent to the average wage earner in the economy, they would pay SECA taxes on $32,375 of those earnings (92.35% of $35,057). When the 15.3% SECA tax rate is applied to $32,375, the result is a SECA tax burden of $4,953. In computing the effect of the income tax deduction, one-half of the $4,953 tax burden ($2,477) is used for calculation purposes. Assuming that this hypothetical self-employed worker with $35,057 in net earnings is in the 15% marginal income tax bracket, a $2,477 income tax deduction is going to result in a tax savings of an additional $372 (15% of $2,477). The net real tax burden in this example would be $4,582 — instead of $4,953 without the income tax deduction and $5,364 (15.3% of $35,057) without the income tax deduction and the exemption from net earnings. These computations are included in Table 7 to illustrate the tax burdens of both wage and salary and self-employed workers with various earnings histories. Table 7. 2004 Social Security Tax Payments, Selected Work Histories Earnings level Minimum wage Average Maximum FICA** ($10,712/year) ($35,057/year) ($87,900/year) $819 $2,682 $6,724 SECA*** $1,438 $4,582 $10,557 Source: Estimates made by CRS from data in the 2004 trustees’ report. The average and maximum earnings levels are linked to real average increases in wages. The minimum wage annual earnings level is obtained by multiplying the federal minimum wage for most workers, $5.15 per hour, by 2080 hours worked (40 hours worked per week, for 52 calendar year weeks). A maximum earner is someone who earns the maximum wage subject to OASDI taxes ($87,900 in 2004). ** Employee share only. *** Figures are net of federal income tax adjustments. Workers earning the minimum or the average wage are assumed to be in the 10% and 15% marginal tax brackets, respectively. Maximum-wage earners are assumed to be in the 30% marginal tax bracket. Historical Level of Taxes The FICA and SECA tax rates have been increased several times since the beginning of the Social Security program. SECA taxes were not levied until after CRS-9 1950, when coverage began for the first categories of self-employed workers. The evolution of FICA and SECA tax rates and tax payments are shown in Table 8 and Table 9. http://wikileaks.org/wiki/CRS-94-27 Table 8. Social Security Tax Rates, Selected Years FICAa SECA Maximum taxable earningsb 1940 1950 1.00% 1.50 — — $3,000 3,000 1960 1970 3.00 4.80 4.50% 6.90 4,800 7,800 1980 1990 6.13 7.65 8.10 15.30 25,900 51,300 2000 2006 7.65 7.65 15.30 15.30 76,200 (OASDI) (No limit HI) 94,200 (OASDI) (No limit HI) Source: Social Security Administration, Office of the Actuary. Table 9. Amount of FICA or SECA Tax Paid, Selected Wage Histories and Years Average earner 1940 1950 1960 1970 1980 1990 2004 FICAa $ 12 38 120 297 767 1,609 2,682 SECA — — $ 180 427 1,014 2,748c 4,539c Maximum earner FICAa $ 30 45 144 374 1,588 3,924 6,724 SECA — — $ 216 538 2,098 6,234c 10,557c Source: Estimates made by Congressional Research Service (CRS) from data in the 2004 OASDI trustees’ report. a. Employee share only for the FICA column. An average earner is someone who earned average wages throughout his or her working years (average wages are estimated for 2003). A maximum earner is someone who always earned the maximum wage subject to OASDI taxes ($87,900 in 2004). b. Maximum taxable earnings were the same for OASDI and HI through 1990. c. Figures are net of federal income tax adjustments. In 1990, the average and maximum wage workers were assumed to be in the 15% and 28% marginal tax brackets, respectively. In 2004, they are assumed to be in the 15% and 30% marginal tax brackets, respectively. Social Security Taxpayers Per Recipient Much of the expected long-term financial strain on the Social Security system’s ability to disburse benefits to future benefits lies in demographics. In the early years of the system, there were more than ten covered workers contributing with payroll CRS-10 taxes for every one person drawing benefits. Presently, there is barely more than three covered workers for every beneficiary, and the Social Security trustees project that this ratio will eventually fall to less than 2 to 1. Table 10 and Figure 1 illustrate how this ratio has changed drastically over time. Table 10. Ratio of Covered Workers to Beneficiaries http://wikileaks.org/wiki/CRS-94-27 Covered workers (in thousands) Beneficiaries (in thousands) Ratio of covered workers per beneficiary 1950 48,280 2,930 16.5 to 1 1960 72,530 14,262 5.1 to 1 1970 93,090 25,186 3.7 to 1 1980 113,649 35,118 3.2 to 1 1990 133,672 39,470 3.4 to 1 2000 154,732 45,166 3.4 to 1 2005 (estimated) 158,718 47,993 3.3 to 1 2010 (projected) 166,717 52,604 3.2 to 1 2020 (projected) 176,049 67,977 2.6 to 1 2030 (projected) 181,110 83,524 2.2 to 1 2040 (projected) 186,581 91,077 2.0 to 1 2050 (projected) 191,869 95,340 2.0 to 1 2060 (projected) 196,467 100,389 2.0 to 1 2070 (projected) 200,774 105,828 1.9 to 1 Source: 2005 OASDI trustees report. Figure 1. Ratio of Covered Workers to Beneficiaries 18 16 14 12 10 8 6 4 2 0 Covered Workers Per Beneficiary 1950 1960 1970 1980 1990 2000 2005 2010 2020 2030 2040 2050 2060 2070 Source: Chart prepared by Congressional Research Service (CRS) from data in the 2005 OASDI trustees report. CRS-11 Benefit Facts Benefit Formula The Social Security benefit computation formula is progressive, as it uses “bend points” to return higher percentages of a lower-wage worker’s lifetime indexed earnings, computed on a monthly basis. For 2006, the bend points used in the benefit formula are $656 and $3,955, respectively, and are increased annually based on average wage growth. If all or most of a worker’s indexed earnings fall under the first or second bend point, they will see a higher replacement rate of average monthly earnings as compared to monthly Social Security benefits. The more earnings a worker may have beyond the second bend point, the lower the net return that worker will see in augmenting their Social Security benefit. http://wikileaks.org/wiki/CRS-94-27 For basic benefit (or primary insurance amount):* ! ! ! 90% of first $656 of AIME,** plus 32% of AIME over $656 through $3,955, plus 15% of AIME over $3,955 For maximum family benefit: ! ! ! ! 150% of first $838 of basic benefit, plus 272% of basic benefit over $838 through $1,210, plus 134% of basic benefit over $1,210 through $1,578, plus 175% of basic benefit over $1,578 * Without adjustment for early or delayed retirement or other factors. ** AIME = average indexed monthly earnings. Quarters of Coverage (QCs) Required for Eligibility To qualify for retired or disabled worker benefits, an individual must accumulate the required number of quarters of coverage. A worker must have covered earnings equal to or exceeding the prescribed amount ($970 in 2006) in a calendar quarter to earn a quarter of coverage. While a minimum of 40 covered quarters must be achieved to be “vested” in the system to receive retirement benefits in most cases, disabled worker benefits may be granted with as few as six quarters of coverage, if the onset of the disabling condition or event occurred while the worker was at young enough age. The number of quarters of coverage needed under different circumstances is illustrated in Table 11. CRS-12 Table 11. Quarters of Coverage, Selected Facts 2005 Annual covered earnings needed to obtain one QC* 2006 $920 $970 Maximum QCs that can be credited in any year QCs needed for most retirement or survivor benefits** 4 40 4 40 QCs needed for disability benefits** (with 20 earned during 40-quarter period before disability began) 40 40 6 6 Minimum QCs needed for survivor or disability benefits Source: Social Security Administration, Office of Policy. * Adjusted yearly to reflect the growth of average wages. ** Fewer QCs may be required in some survivor and disability cases. http://wikileaks.org/wiki/CRS-94-27 Minimum Ages To Receive Benefits In addition to covered earnings and length of coverage employment, receipt of many OASDI benefits is conditional with age. Table 12 shows the earliest eligibility ages (EEA) and maximum eligibility age that qualify or disqualify a worker or dependent for benefit payments. Retired worker, spousal, and widow(er) benefits all have a “full” or “normal” eligibility age (FRA or NRA), in which benefits are not penalized for early receipt. In cases where an eligible claimant files for benefits between the earliest eligibility age and the normal retirement age, the amount of the monthly benefit is subject to an actuarial reduction, with the reduction being lower the closer the claimant is to reaching the normal eligibility age. Table 12. Age Restrictions for OASDI Benefits Type of benefit claimant Age restriction For retired worker (earliest eligibility age) 62 For widow/widower For disabled widow/widower For mother/father caring for child under age 16 For child For disabled worker 60 50 any age under age 18 (or 19, if in high school) any age up to FRA* Source: Social Security Administration, Office of the Actuary. * The “full retirement age” or age at which benefits are not reduced for retiring “early.” (See the following table). CRS-13 Ages At Which Persons Receive Full Retirement Benefits For purposes of qualifying for spousal or widow(er)’s benefits, the full or normal retirement age (known as both the FRA or NRA), has little to do with retirement, as claims to these benefits is not conditional on a covered work history, or more specifically, the ceasing of work. In fact, the FRA is misleading to workers, too, because leaving the workforce is not a condition for retirement benefit eligibility. Rather, the FRA is simply a qualifying age threshold. http://wikileaks.org/wiki/CRS-94-27 For many years, the Social Security full or normal retirement age remained constant at 65 years. In 1983, however, a comprehensive Social Security reform package that included many programmatic changes altered the law to gradually phase in an increase of the normal retirement age. Starting with those born in 1938, the full retirement age will be higher than age 65, depending on your year of birth. The highest the full retirement age is scheduled to hit is age 67, affecting those born in 1960 and later. Table 13 provides the full schedule of current law increases scheduled to take effect. Table 13. Full Retirement Age Schedule For retired worker and spouse born before 1938 born 1938 born 1939 born 1940 born 1941 born 1942 born 1943-1954 born 1955 born 1956 born 1957 born 1958 Full retirement age 65 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 born 1959 born 1960 and later 66 and 10 months 67 Source: Social Security Administration, Office of the Actuary. Average Monthly Benefits OASDI benefits are paid to retired and disabled workers, as well as to their eligible dependent family members. The benefit formula illustrated above is used to compute primary insurance amounts (PIAs) for eligible retired or disabled workers, but benefit amounts paid to dependents are determined by applying the relevant percentage amount of the worker they are dependent upon. Typically, eligible spouses and children of workers can receive a monthly amount up to 50% of the worker’s primary insurance amount. Surviving spouses may be eligible for a monthly amount up to 100% of the worker’s PIA. Factors that may reduce these CRS-14 maximum percentage amounts include early eligibility, a dependent’s own work record and subsequent benefit eligibility based on that work record, remarriage, and other factors. Table 14 provides average monthly benefit amounts for selected beneficiary categories before and after the application of the 2006 annual cost-ofliving (COLA) automatic benefit increase (more on COLAs below). Table 14. Average Monthly Benefits Monthly payment for January 2006 Before COLA $963 901 After COLA* $1,002 938 For retired worker and spouse For aged widow(er) alone 1,583 929 1,648 967 For widowed mother/father and two children For disabled worker, spouse, and child(ren) 1,989 1,509 2,071 1,571 http://wikileaks.org/wiki/CRS-94-27 For all retired workers For all disabled workers Source: Social Security Administration, Office of the Actuary. * Includes January 2006 cost-of-living adjustment (COLA) of 4.1%. Social Security Benefit Increases Social Security benefits are inflation-protected by the application of an automatic annual cost-of-living adjustment (COLA). The percentage applied to all beneficiaries is compiled from economic indicators that track inflation of prices on goods and services over the previous year. The COLA is applied so beneficiaries do not lose their purchasing power over time as they would if benefits were held constant while prices of goods and services generally increased. Prior to 1975, COLAs were applied sporadically to increase benefit levels to keep pace with inflation. Starting in 1975, COLAs have been applied annually, with the exception being when their effective date was switched from July to January, and there was no COLA applied in the months between July 1982 and January 1984. Table 15 and Figure 2 illustrate the full history of benefit level increases, while Figure 3, for a different perspective, focuses on recent COLAs. CRS-15 http://wikileaks.org/wiki/CRS-94-27 Table 15. Historical Cost-of-Living Adjustments Year of increase Percent of increase January 2006 4.1% January 2005 2.7% January 2004 2.1% January 2003 1.4% January 2002 2.6% January 2001 3.5% January 2000 2.5%* January 1999 1.3% January 1998 2.1% January 1997 2.9% January 1996 2.6% January 1995 2.8% January 1994 2.6% January 1993 3.0% January 1992 3.7% January 1991 5.4% January 1990 4.7% January 1989 4.0% January 1988 4.2% January 1987 1.3% January 1986 3.1% January 1985 3.5% January 1984 3.5% July 1982 7.4% July 1981 11.2% July 1980 14.3% July 1979 9.9% July 1978 6.5% http://wikileaks.org/wiki/CRS-94-27 CRS-16 Year of increase Percent of increase July 1977 5.9% July 1976 6.4% July 1975** 8.0% April-July 1974*** 11.0% October 1972 20.0% February 1971 10.0% February 1970 15.0% March 1968 13.0% February 1965 7.0% February 1959 7.0% October 1954 13.0% October 1952 12.5% October 1950 77.0% Source: Social Security Administration, Office of the Actuary. * As originally computed, the COLA payable in January 2000 was 2.4%. Later, it was corrected to 2.5% under P.L. 106-554. ** Automatic cost-of-living adjustments (COLAs) began. *** Provided in two steps. Figure 2. Cost-of-Living Adjustments Since 1975 Source: Chart prepared by the Congressional Research Service (CRS) from data obtained from Social Security Administration, Office of the Actuary. CRS-17 Figure 3. Historical Cost-of-Living Adjustments Cost of Living Adjustment (% Change of Benefit Increase) 90 80 70 60 50 40 30 20 10 0 http://wikileaks.org/wiki/CRS-94-27 1950 1965 1972 1977 1981 1986 1990 1994 1998 2002 Source: Chart prepared by the Congressional Research Service (CRS) from data obtained from Social Security Administration, Office of the Actuary. Initial Monthly Benefits for Workers Retiring in 2005 Table 16 shows what workers with different earnings histories would receive in monthly benefits when retiring in 2005. The disparity in benefit amounts in the two columns is affected by the fact that a worker born in 1940 and turning 65 during the 2005 must wait until six months past his/her month of birth before receiving unreduced benefits at the full retirement age. See Table 13 for the schedule of full retirement ages. Table 16. New Benefit Awards to Retired Workers in 2005 Low-wage earner Average-wage earner Maximum-wage earner At age 65 At the normal retirement age $ 750 1,236 1,877 $ 775 1,278 1,940 Source: 2005 OASDI trustees’ report. Note: A low-wage earner is someone who always earned approximately 45% of the national average wage. An average-wage earner is someone who always earned the average wage. A maximum-wage earner is someone who always earned the maximum amount subject to the Social Security tax. CRS-18 New Benefit Awards as Percent of Final Year’s Earnings (new retiree age 65 in 2005; figures based on assumptions of 2005 trustees’ report) The progressive nature of the benefit computation formula, explained above, provides lower earning workers with a higher replacement rate of benefits as compared to earnings. The expected replacement rates of new retirees in 2005, with different earnings histories and benefit election at age 65, are shown in Table 17. Table 17. Initial Retirement Benefits as a Percent of Earnings Percent of benefits to earnings Low-wage earner 57% Average-wage earner Maximum-wage earner 42% 30% http://wikileaks.org/wiki/CRS-94-27 Source: 2005 OASDI trustees’ report Note: A low-wage earner is someone who always earned approximately 45% of the national average wage. An average-wage earner is someone who always earned the average wage. A maximum-wage earner is someone who always earned the maximum amount subject to the Social Security tax. Benefit Reductions and Offsets While election for retirement benefits is not conditional on leaving the work force, earnings from work can reduce monthly benefits that are received before the full retirement age. In years preceeding the year in which one will reach the full retirement age, benefits are reduced $1 for every $2 of earnings over the base earnings test annual exemption amount ($12,480 in 2006). In the calendar year in which one will reach the full retirement age, benefits are reduced $1 for every $3 of earnings over a much higher second earnings test exemption amount ($33,240 in 2006). After reaching the full retirement age, beneficiaries are not subject to any benefit reductions due to earnings. Table 18 provides the thresholds for the earnings test, as well as other basic benefit reductions or offsets. CRS-19 Table 18. Earnings Test and Other Benefit Reductions Earnings test (reduction in benefits on account of earnings from work) 2005 exempt amounts 2006 exempt amounts Reduction rate for earnings above exempt amounts Before year in which worker reaches full retirement age $12,000 $12,480 50.0% For months before birthday in year in which worker attains full retirement age $31,800 $33,240 33.3% all earnings all earnings none Month in which worker reaches full retirement age and later http://wikileaks.org/wiki/CRS-94-27 Spousal dual entitlement limitation: $1 reduction in spousal benefits for each $1 of benefits earned as a worker. Government pension offset: $0.662/3 reduction in spousal benefits for each $1 of pension received from government employment not covered by Social Security. Windfall reduction: 40% factor is used as first step of benefit formula (instead of 90%), if worker receives a pension from government employment not covered by Social Security and has less than 21 years of substantial Social Security coverage (factor is larger if worker has 21 or more years of substantial coverage). Reduction cannot exceed 50% of the government pension. Source: Social Security Administration, Office of Policy. Maximum Monthly Earnings From Work Permitted for Disability Benefits The primary indicator in determining one’s eligibility to receive Social Security disability benefits is one’s ability to partake in gainful employment. There are two earnings thresholds that are applied to determine if a disability beneficiary or claimant is gainfully employed or has the ability to be gainfully employed. They are known as the monthly “substantial gainful activity” (SGA) levels. In 2006, those beneficiaries who disabling condition is blindness, the level of SGA before loss of eligibility is $1,450 per month. For all other disabled beneficiaries, the monthly SGA amount is $860. These amounts are provided in Table 19. Table 19. Substantial Gainful Activity Levels 2005 2006 Non-blind disabled $830 $860 Blind disabled 1,380 1,450 Source: Social Security Administration, Office of the Actuary. *Adjusted yearly to reflect the growth of average wages. CRS-20 How Long It Takes To Get Your Taxes Back Similar to the fact that lower-wage workers receive a higher replacement rate of benefits to earnings that higher paid workers, it also takes less time for lower-wage workers to recoup the value of worker payroll tax contributions in monthly benefit payments. Table 20 provides expected payback times of workers with varying wage histories. Since spouses with no earnings histories are eligible for monthly benefits when they meet certain factors such as age requirements, worker and spouse receiving benefits simultaneously significantly reduces the expected time of recoupment of the workers contributions. http://wikileaks.org/wiki/CRS-94-27 Table 20. Expected Payback Times (in years)*, Selected Earnings Histories Low-wage earner Average-wage earner Maximum-wage earner Employee share alone Worker Worker and spouse 5.4 3.5 7.5 4.8 10.4 6.5 Employee/employer shares combined Worker Worker and spouse 12.0 7.5 17.4 10.5 25.7 14.8 Source: Estimates made by CRS from data obtained in the 2003 OASDI trustees report. * Time it takes to recover retirement portion of the Social Security payroll tax with interest. Assumes worker retired in January 2003 at age 65 after having worked steadily since age 21 (age 22 for maximum-wage earner). A low-wage earner is someone who always earned approximately 45% of the national average wage. A maximum-wage earner is someone who always earned the maximum amount subject to the Social Security tax. Assumes the worker’s spouse is also age 65. The “retirement portion” of the tax is approximate since the law does not actually isolate the “old age” portion. Medicare benefits and taxes are excluded from the figures. Interest assumed to be equal to rates that accrue on government securities with four-year or longer maturities. (All figures based on intermediate assumptions of the 2003 trustees’ report.) Social Security Benefits May Be Partially Taxable Table 21 and Table 22 provide examples of how the combination of Social Security benefits and other income can subject different proportions of the Social Security benefits to income taxes. Up to 50% of benefits are subject to federal income taxes if adjusted gross income plus tax-free interest plus one-half of Social Security benefits is: ! ! Over $25,000, but not more than $34,000 for a single person Over $32,000, but not more than $44,000 for a married couple filing jointly CRS-21 Table 21. A Lower Portion of Taxable Benefits Example #1: Single retiree’s adjusted gross income One-half of retiree’s Social Security benefits Interest from tax-free municipals Total Less: exempt amount Excess over $25,000 Amount of taxable Social Security benefits (One-half of excess or onehalf of benefits, whichever is lower) $23,000 +4,000 +1,000 $28,000 -25,000 $ 3,000 $ 1,500 http://wikileaks.org/wiki/CRS-94-27 Source: Social Security Administration, Office of Policy, 2003 Annual Statistical Supplement. Up to 85% of benefits are subject to federal income taxes if adjusted gross income plus tax-free interest plus one-half of Social Security benefits is: ! ! Over $34,000 for a single person Over $44,000 for a married couple filing jointly Table 22. A Higher Portion of Taxable Benefits Example #2: Single retiree’s adjusted gross income One-half of retiree’s Social Security benefits Total Less: exempt amount Excess Taxable benefits based on income between $25,000 and $34,000 (lower of 50% of excess, 50% of benefits, or $4,500) $32,000 +5,000 37,000 -25,000 12,000 $4,500 Taxable benefits based on income above $34,000 [($37,000 - $34,000) x 85%] $2,550 Total benefits taxable (taxable portions as calculated above, or 85% of benefits, if lower) $7,050 Source: Social Security Administration, Office of Policy, 2003 Annual Statistical Supplement. CRS-22 Economic Facts Income of Social Security Recipients Many Social Security beneficiaries rely on benefit payments to make up a significant portion of their income. The incomes of many lower income beneficiary families is largely dependent on Social Security payments, and for 40% of single beneficiaries over age 65, Social Security payments make up 90% or more of the individual’s income. Table 23 shows distributions of beneficiaries and aggregate Social Security benefit payments by income band. The lowest income band listed contains the highest number of beneficiary families, yet receives only the third highest proportion of benefit payments. http://wikileaks.org/wiki/CRS-94-27 Table 24 as well as Figure 4 and Figure 5 illustrate the magnitude to which recipients rely on their monthly benefit payments. Table 23. Distribution of Beneficiaries and Benefits, By Income Band Annual level of individual or couple income* Less than $10,000 $10,000-15,000 $15,000-20,000 $20,000-25,000 $25,000-30,000 $30,000-40,000 $40,000-50,000 $50,000-100,000 Over $100,000 All % of aggregate Social % of recipients in Security benefits paid to income band recipients in income band 18.8% 12.6% 12.8% 12.5% 10.8% 10.8% 8.6% 9.3% 7.5% 7.8% 12.0% 12.8% 9.4% 9.9% 14.6% 17.3% 5.4% 6.9% 100.0% 100.0% Source: Congressional Budget Office (House Ways and Means Committee 2000 Greenbook). Note: Distribution is estimated for Calendar Year 2000. * Includes all cash income and capital gains. CRS-23 Table 24. Aged Income Sources and Poverty Status http://wikileaks.org/wiki/CRS-94-27 Income of the population age 65 and older in 2000 derived from: Social Security Other retirement systems Interest, dividends, rents Earnings Other Total Percent of population age 65 and older in 2000: With incomes below poverty line With no income from Social Security With under 50% of income from Social Security With 50% or more of income from Social Security With 90% or more of income from Social Security With 100% of income from Social Security Single 46% 18% 19% 14% 4% 100% Married 34% 18% 17% 29% 2% 100% 17% 10% 29% 71% 40% 26% 5% 10% 47% 53% 20% 11% Source: Social Security Administration, Office of Policy. Totals may not equal sums of rounded components. CRS-24 Figure 4. Proportion of Income of Single Beneficiaries Aged 65 and Older 4% 14% S o c ia l S e c urit y 45% O t he r R e t ire m e n t S ys t e m s In t e re s t , D iv ide n d s , R e n t s E a rn ing s http://wikileaks.org/wiki/CRS-94-27 19% O t he r 18% Source: Chart prepared by Congressional Research Service (CRS) from data obtained from SSA, Office of Policy. Figure 5. Reliance of the Age 65+ on Social Security P e rce n t o f t h e P o pu l a ti o n A g e 6 5 a n d O l de r Wit h 10 0 % o f In c o m e f ro m S o c ia l S e c u rit y 26% Wit h 9 0 % o r M o re o f In c o m e f ro m S o c ia l S e c u rit y 40% Wit h 5 0 % o f M o re o f In c o m e f ro m S o c ia l S e c u rit y 71% Wit h Un d e r 5 0 % o f In c o m e f ro m S o c ia l S e c u rit y 29% Wit h N o In c o m e f ro m S o c ia l S e c u rit y 10% Wit h In c o m e s B e lo w t h e P o v e rt y Lin e 17% 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: Chart prepared by Congressional Research Service (CRS) from data obtained from Social Security Administration, Office of Policy. CRS-25 Social Security’s and Medicare’s Costs as Percent of Federal Budget, FY2004 Social Security and Medicare make up a significant portion of federal spending. Table 25 shows that the two programs combined make up over one-fourth of federal outlays. Table 25. The Role of Social Security and Medicare in the Federal Budget, FY2004 Estimated share of all federal outlays Social Security 21.4% Medicare Combined 7.3% 28.7% http://wikileaks.org/wiki/CRS-94-27 Source: Office of Management and Budget (OMB), FY2006 Budget. Social Security and Medicare Spending as Percent of Gross Domestic Product (GDP) As a proportion of the overall economy is as measured by gross domestic product (GDP), Social Security and Medicare combined spending will increase by 54% from 2004 to 2030. As Table 26 shows, in 2004 Social Security and Medicare spending make up 5.83% of GDP. In 2030, it is projected that the two programs will account for 8.95% of GDP. Table 26. Social Security and Medicare Spending as a Percent of GDP Social Security 2004 4.33% 2030 6.31% Medicare Social Security and Medicare, combined 1.50% 5.83% 2.64% 8.95% Source: 2004 OASDI trustees’ report. Financial Status of Social Security Trust Funds The Social Security trust funds currently bring in much more revenue than what is needed for benefit obligations and have accumulated large balances. However, in the near future payroll tax revenue will no longer be sufficient for expected spending, and the trust funds are projected to be no longer solvent by 2042. Table 27 and Figure 6 illustrate the magnitude of the projected revenue shortfall and how quickly trust fund balances will erode. CRS-26 Figure 6. Balance of the Social Security Trust Funds Balance of the OAS DI Funds, in Billions $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 http://wikileaks.org/wiki/CRS-94-27 2004 2007 2010 2013 2016 2019 2022 2025 2028 2031 2034 2037 2040 Source: Chart prepared by Congressional Research Service (CRS) from data obtained from 2004 OASDI Trustees’ report. Table 27. Various Performance Measures of the Trust Funds CY 2005 2010 2015 2020 Income Outgo Balance of trust funds (end of year) (intermediate forecast, $ in billions) $701 $518 930 670 1,215 927 1,539 1.299 $1,867 3,030 4,442 5,776 2025 2030 1,876 2,223 1,782 2,364 6,575 6,370 2035 2040 2,572 2,919 3,032 3,778 4,736 1,280 Estimated peak of trust funds’ balances: $6.6 trillion in 2027 Estimated year of insolvency (intermediate forecast): Old-Age and Survivors Insurance Trust Fund Disability Insurance Trust Fund Combined Source: 2004 OASDI trustees’ report. 2044 2029 2042 CRS-27 Administrative Information Offices, Employees, and Administrative Costs The Social Security Administration has an extensive nationwide network of local field offices, regional offices, and headquarters for policy and research. SSA has a large customer service network, and of all federal agencies, its 800-telephone line and internet website are among the most heavily used. Table 28. Administrative Structure and Customer Service Contacts for SSA Location of SSA headquarters: Number of:* Baltimore, Maryland Regional offices 10 http://wikileaks.org/wiki/CRS-94-27 Field offices Hearings offices Teleservice centers Program service centers Data operations centers 1,336 138 permanent 36 7 1 Number of SSA employees: (FY2004 full-time equivalents) Administrative costs of Social Security:** 63,701 $4.3 billion Administrative costs as percent of benefit costs:** Source: Social Security Administration’s Accountability Report for Fiscal Year 2004. ** Data for FY2003 from the 2004 OASDI trustees’ report. 0.9% CRS-28 References Sources for Information in this Document 800 Telephone Number for SSA: 800-772-1213. SSA Internet website at [http://www.ssa.gov]. Commissioner of Social Security, Jo Anne B. Barnhart, Altmeyer Building, 6401 Security Blvd., Baltimore, MD 21235. U.S. Social Security Administration. 2004 annual reports of the boards of trustees of the old age, survivors, and disability insurance, hospital insurance, and supplementary medical insurance trust funds. Washington, 2004. http://wikileaks.org/wiki/CRS-94-27 Annual Statistical Supplement to the Social Security Bulletin, 2003. Unpublished data from the Social Security Administration, Office of Research and Statistics. Other References for Program Descriptions Myers, Robert J. Social Security. 4th ed. Philadelphia, University of Pennsylvania Press, 1993. U.S. Congress. House. Committee on Ways and Means. 2000 Green Book: Background Material and Data on Programs Within the Jurisdiction of the Committee on Ways and Means. Washington, GPO, 2000. 1,575 p. (106th Cong., 2nd session. WMCP 106-14) Benefit Facts CRS Report 94-803, Social Security: The Cost-of-Living Adjustment in January 2006, by Gary Sidor. CRS Report 98-789, Social Security Earnings Test: Proposed Changes, by Debra Whitman. CRS Report 94-622, Social Security: Raising the Retirement Age: Background and Issues, by Geoffrey Kollmann. CRS Report RL32453, Social Security: The Government Pension Offset, by Laura Haltzel. CRS Report 98-35, Social Security: The Windfall Elimination Provision, by Laura Haltzel. Tax Facts CRS Report 94-28, Social Security and Medicare Taxes and Premiums: A Fact Sheet, by Dawn Nuschler. CRS Report RL32552, Social Security: Calculation and History of Taxing Benefits, by Christine Scott. CRS-29 CRS Report RL33028, Social Security: The Trust Fund, by Christine Scott. Economic Facts http://wikileaks.org/wiki/CRS-94-27 CRS Report 95-543, The Financial Outlook for Social Security and Medicare, by Dawn Nuschler. CRS Issue Brief IB98048, Social Security Reform, by Dawn Nuschler. CRS Report 97-77, Social Security: Long-Range Projections, by Dawn Nuschler. CRS Report 95-206, Social Security’s Treatment Under the Federal Budget: A Summary, by Dawn Nuschler