Social Security & You: Better understanding SSI

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Social Security & You: Better understanding SSI
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I was playing one of my morning online word puzzles when up popped a little blurb from a senior citizen advocacy group announcing that the Supplemental Security Income program has recently turned 50 years old.

I’m sure most people who see a reference to SSI would say something like “Supplemental Security what?” And that’s because SSI is not very well known to most people. And as I’ve pointed out umpteen times, a lot of folks probably just figure, given its name, that Supplemental Security Income is some kind of supplemental Social Security benefit. It is not. So, I guess it’s time to dust off and update some of the columns I’ve written in the past that explain the SSI program.

The first bad idea: They gave this new program to the Social Security Administration to run. On the one hand, I suppose it made sense. The SSA had a network of field offices around the country, and it had the computer infrastructure necessary to manage a big national government benefits program. On the other hand, they messed up a nice, clean government operation used to dealing mostly with grandpas and grandmas and saddled it with the task of running a big, messy welfare system.

Anyway, they called the new program Supplemental Security Income, and they gave the program to the Social Security Administration to run. And almost everyone back then in the 1970s, and almost everyone still today, thinks that Supplemental Security Income is some kind of supplemental Social Security benefit.

In a nutshell, it does just what its name says. It “supplements” someone’s “income” to give that person some degree of financial “security.” The income rules are a little messier. The basic federal SSI payment is $841 per month. Some states add more money to that federal payment, so the SSI benefit could be higher where you live.

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