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Social Security Reform: Issues for Disability and Dependent Benefits

GAO-08-26 Published: Oct 26, 2007. Publicly Released: Nov 26, 2007.
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Highlights

Many recent Social Security reform proposals to improve program solvency include elements that would reduce benefits currently scheduled for future recipients. To date, debate has focused primarily on the potential impact on retirees, with less attention to the effects on other Social Security recipients, such as disabled workers and dependents. As these beneficiaries may have fewer alternative sources of income than traditional retirees, there has been interest in considering various options to protect the benefits of disabled workers and certain dependents. This report examines (1) how certain elements of Social Security reform proposals could affect disability and dependent benefits, (2) options for protecting these benefits and how they might affect disabled workers and dependents, and (3) how protecting benefits could affect the Social Security program. To conduct this study, GAO used a microsimulation model to simulate benefits under various reform scenarios. GAO also interviewed experts and reviewed various reform plans, current literature, and GAO's past work.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
In light of potential reform, Congress may wish to consider the potential implications of reform on disability and dependent beneficiaries. Such a review might usefully be coordinated with any modernization of the Social Security disability program.
Closed – Implemented
Since our report was issued, Congressional members have made exceptions for those with disabilities when considering changes to Social Security. For example, in the 111th Congress, the Senate's Special Committee on Aging issued "Social Security Modernization: Options to Address Solvency and Benefit Adequacy" (Senate Report 111-187). This report includes a table: "Protecting the Effectiveness of Social Security: GAO Options to Protect Vulnerable Groups," that considers the effects of potential reforms on disability and dependent beneficiaries. Further, in the 112th Congress, Report No. 112-58 (H. Con. Res. 34) states that legislation submitted by the President should preserve the safety net for those who rely on Social Security, including survivors and those with disabilities, again demonstrating consideration of how reforms may affect the population of Social Security beneficiaries with disabilities.

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Topics

Aid for the disabledBeneficiariesCost analysisCost of livingDependentsDisability benefitsDisability insuranceFederal social security programsPeople with disabilitiesProgram evaluationRetirementRetirement benefitsSocial security beneficiariesSocial security benefitsTrust funds