Social Security's special minimum benefit

Social Security's special minimum primary insurance amount (PIA) provision was enacted in 1972 to increase the adequacy of benefits for regular long-term, low-earning covered workers and their dependents or survivors. At the time, Social Security also had a regular minimum benefit provision for persons with low lifetime average earnings and their families. Concerns were rising that the low lifetime average earnings of many regular minimum beneficiaries resulted from sporadic attachment to the covered workforce rather than from low wages. The special minimum benefit was seen as a way to reward regular, low-earning workers without providing the windfalls that would have resulted from raising the regular minimum benefit to a much higher level. The regular minimum benefit was subsequently eliminated for workers reaching age 62, becoming disabled, or dying after 1981. Under current law, the special minimum benefit will phase out over time, although it is not clear from the legislative history that this was Congress's explicit intent. The phaseout results from two factors: (1) special minimum benefits are paid only if they are higher than benefits payable under the regular PIA formula, and (2) the value of the regular PIA formula, which is indexed to wages before benefit eligibility, has increased faster than that of the special minimum PIA, which is indexed to inflation. Under the Social Security Trustees' 2000 intermediate assumptions, the special minimum benefit will cease to be payable to retired workers attaining eligibility in 2013 and later. Their benefits will always be larger under the regular benefit formula. As policymakers consider Social Security solvency initiatives--particularly proposals that would reduce benefits or introduce investment risk--interest may increase in restoring some type of special minimum benefit as a targeted protection for long-term low earners. Two of the three reform proposals offered by the President's Commission to Strengthen Social Security would modify and strengthen the current-law special minimum benefit. Interest in the special minimum benefit may also increase because of labor force participation and marital trends that suggest that enhancing workers' benefits may be a more effective means of reducing older women's poverty rates than enhancing spousal or widow's benefits. By understanding the Social Security program's experience with the special minimum benefit, policymakers will be able to better anticipate the effectiveness of other initiatives to enhance benefits for long-term low earners. This article presents the most recent and comprehensive information available about the special minimum benefit in order to help policymakers make informed decisions about the provision's future. Highlights of the current special minimum benefit include the following: Very few persons receive the special minimum benefit. As of December 2001, about 134,000 workers and their dependents and survivors were entitled to a benefit based on the special minimum. Of those, only about 79,000 received a higher total benefit because of the special minimum; the other 55,000 were dually entitled. (In effect, when persons are eligible for more than one type of benefit--that is, they are dually eligible--the highest benefit payable determines total benefits. If the special minimum benefit is not the highest benefit payable, it does not increase total benefits paid.) As of February 2000, retired workers who were special minimum beneficiaries with unreduced benefits and were not dually entitled were receiving, on average, a monthly benefit of $510 per month. That amount is approximately $2,000 less than the annual poverty threshold for an aged individual. Special minimum benefits provide small increases in total benefits. For special minimum beneficiaries who were not dually entitled as of December 2001, the average special minimum monthly PIA was just $39 higher than the regular PIA. Most special minimum beneficiaries are female retired workers. About 90 percent of special minimum beneficiaries are retired workers, and 77 percent of those retired workers are women. The special minimum benefit has never provided poverty-level benefits. Maximum payable special minimum benefits (unreduced for early retirement) equal 85 percent of the poverty level for aged persons, down from 96 percent at the provision's inception. Major public policy considerations raised by this analysis include the following: Social Security benefits alone do not protect all long-term low earners from poverty. Low earners with 30 years of earnings equal to the annual full-time minimum wage who retired in selected years from 1982 to 2000 received benefits that were 3.9 percent to 20.1 percent below the poverty threshold, depending on the year they retired. For 40-year earners, the range was 3.9 percent to 15.3 percent below poverty. Furthermore, in 1993, 29.2 percent of retired-worker beneficiaries who were poor had 30 or more years of coverage. The size of the universe of persistently low earners with significant attachment to the covered workforce is unknown. Available research that examines two 28-month periods suggests that only 4 percent to 6 percent of full-time, full-period earners had below-minimum wages for more than 12 consecutive months. Targeting enhanced benefits only toward long-term, regular workers who are low earners is difficult under the current Social Security program. All else being equal, if total wage-indexed lifetime covered earnings are the same for both a full-career low earner and for a high earner who has worked only occasionally, then their Social Security benefits will be identical. Social Security has no information on number of hours worked, hourly wages, or other information that could distinguish between two such persons.     

Structuring the Debate on Consolidation: A Response to Leland and Thurmaier

In their essay "When Efficiency Is Unbelievable: Normative Lessons from 30 Years of City–County Consolidations," published in the July/August 2005 issue of PAR , Leland and Thurmaier make an important contribution to understanding how city–county consolidation occurs. They revise the widely accepted Rosenbaum and Kammerer model of consolidation and posit that "strong arguments" based on economic development, especially in the absence of organized opposition, led to victory for consolidation advocates. In this response, we argue that efforts to identify a set of arguments or charter provisions that will lead to successful consolidation are misguided. The real story in consolidation campaigns is how participants use heresthetical arguments in an effort to turn their opponents into political losers. What makes arguments strong or weak is not their substantive policy focus, but how they are structured.     

Financial status of social security program after the Social Security Amendments of 1977

The Social Security Amendments of 1977 resulted in substantial improvement in the current and projected financial condition of the OASDI program. This article reviews the causes of the recent operating deficits, describes the effects of the amendments that most influence the program's financial status, and gives projections of income and expenditures under the new law. The revised benefit formula eliminates the "over-indexing" expected to occur under the old provisions and results in stable earnings-replacement ratios under practically all future economic conditions. About one-half of the long-range actuarial deficit was resolved by this step alone. Increases in the contribution and benefit base, along with tax-rate reallocations and increases, prevent the imminent depletion of the OASI and DI trust funds. Increased income due to the higher wage bases is partially offset in later years, however, by greater benefit payments based on the increases in the coverage of total earnings. Overall, under the new law the OASDI program is projected to be financed adequately for about 50 years but significant operating deficits are expected after that. The financial condition of the hospital insurance program was substantially unchanged by the amendments, however, and the HI trust fund is expected to be exhausted in 1988.     

Tax impact from elimination of the retirement test

The OASI eligibility provisions include a retirement test (or earnings test), and in 1979 aged beneficiaries who are under age 72 give up $1 in current benefits for each $2 of annual earnings above $4,500. If the retirement test were eliminated, total OASI payouts would increase because aged workers would no longer forfeit benefits. Aged workers also might increase earnings or delay retirement if this penalty on work effort were removed. Increased earnings would generate additional OASDHI taxes and individual income taxes. This article examines the fiscal effects on OASI benefit payouts and increased tax receipts if the retirement test were eliminated.     

公正和效率的两难选择——评刑事诉讼法有关侦查程序的修改

我国侦查活动中公正和效率价值的双重缺失一直受到诟病。“宽严相济”刑事司法政策的确立以及司法体制和工作机制改革决策助推了刑事诉讼法再修改。立足于公正和效率价值的平衡,本次刑事诉讼法修改对有关侦查活动的证据制度、强制措施、辩护程序、讯问程序、侦查措施、侦查行为的监督等进行了完善。但基于我国国情,在人权保障、诉讼构造、侦查构造、侦查程序的科学性、侦查程序自治、侦查程序借鉴等方面．理想与现实之间仍存在一定差距。     

The senate agriculture committee produces a homeostat

Agricultural policy making between 1960 and 1973 is examined drawing on Herbert Simon's conception of procedural rationality. The basic structure of current agricultural policy evolved during the period studied. The paper suggests that policy and policy making interact narrowing the search for a law until it achieves a combination of provisions that is an equilibrium. The computational routines used in calculating consequences of provisions of legislation are extracted from the text of committee hearings and analyzed as a system of inequalities. The paper also discusses what satisficing means in this policy making process.     

Benefit adequacy among elderly Social Security retired-worker beneficiaries and the SSI federal benefit rate

Both target effectiveness and administrative simplicity are desirable properties in the design of minimum benefit packages for public retirement programs. The federal benefit rate (FBR) of the Supplemental Security Income (SSI) program has been proposed by some analysts as a potentially attractive basis of establishing a new minimum benefit for Social Security on both of these grounds. This type of proposal is related to a broader array of minimum benefit proposals that would establish a Social Security benefit floor based on the poverty rate. In contrast to Social Security, the SSI program is means tested, including both an income and asset screen and also a categorical eligibility screen (the requirement to qualify as aged or disabled). The SSI FBR provides an inflation-adjusted, guaranteed income floor for aged and disabled people with low assets. The FBR has been perceived by proponents as a minimal measure of Social Security benefit adequacy because it represents a subpoverty income level for a family of one or two depending on marital status. For this same reason it has been seen as a target-effective tool of designing a minimum Social Security benefit. An FBR-based minimum benefit has also been viewed as administratively simple to implement; the benefit can be calculated from Social Security administrative records using a completely automated electronic process. Therefore-in contrast to the SSI program itself-an FBR-based minimum benefit would incur virtually no ongoing administrative costs, would not require a separate application for a means-tested program, and would avoid the perception of welfare stigma. While these ideas have been discussed in the literature and among policymakers in the United States over the years, and similar proposals have been considered or implemented in several foreign countries, there have been no previous analyses measuring the size of the potentially affected beneficiary population. Nor has there been any systematic assessment of the FBR as a measure of benefit adequacy or the tradeoffs between potential target effectiveness and administrative simplicity. Based on a series of simulations, we assess the FBR as a potential foundation for minimum Social Security benefits and we examine the tradeoffs between administrative simplicity and target effectiveness using microdata from the 1996 panel of the Survey of Income and Program Participation (SIPP). Our empirical analysis is limited to Social Security retired-worker beneficiaries aged 65 or older. We start with the assessment of the FBR as a measure of benefit adequacy. We are particularly concerned about two types of error: (1) incorrectly identifying some Social Security beneficiaries as "economically vulnerable," and (2) incorrectly identifying others as "not economically vulnerable." Operationally we measure economic vulnerability by two alternative standards. One of our measures considers beneficiaries with family income below the official poverty threshold as vulnerable. Our second measure is more restrictive; it uses a family income threshold equal to 75 percent of the official poverty threshold. We find that a substantial minority of retired workers have Social Security benefits below the FBR. The results also show that the FBR-based measure of Social Security benefit adequacy is very imprecise in terms of identifying economically vulnerable people. We estimate that the vast majority of beneficiaries with Social Security benefits below the FBR are not economically vulnerable. Conversely, an FBR-level Social Security benefit threshold fails to identify some beneficiaries who are economically vulnerable. Thus an FBR-level minimum benefit would be poorly targeted in terms of both types of errors we are concerned about. An FBR-level minimum benefit would provide minimum Social Security benefits to many people who are clearly not poor. Conversely, an FBR-level minimum benefit would not provide any income relief to some who are poor. The administrative simplicity behind these screening errors also results in additional program cost that may be perceived as substantial. We estimate that an FBR-level minimum benefit would increase aggregate program cost for retired workers aged 65 or older by roughly 2 percent. There are two fundamental reasons for these findings. First, the concept of an FBR-level minimum benefit looks at the individual or married couple in artificial isolation; however, the family is the main consumption unit in our society. The income of an unmarried partner or family members other than a married spouse is ignored. Second, individuals and couples may also have income from sources other than Social Security or SSI, which is also ignored by a simple FBR-based minimum benefit concept. The substantial empirical magnitude of measurement error arising from these conceptual simplifications naturally leads to the assessment of the tradeoff between target effectiveness and administrative simplicity. To facilitate this analysis, we simulate the potential effect of alternative screening methods designed to increase target effectiveness; while reducing program cost, such alternatives also may increase administrative complexity. For example, considering the combined Social Security benefit of a married couple (rather than looking at the husband and wife in isolation) might substantially increase target effectiveness with a relatively small increase in administrative complexity. Adding a family income screen might increase administrative complexity to a greater degree, but also would increase target effectiveness dramatically. The results also suggest that at some point adding new screens-such as a comprehensive asset test-may drastically increase administrative complexity with diminishing returns in terms of increased target effectiveness and reduced program cost. Whether a broad-based minimum benefit concept that is not tied to previous work experience is perceived by policymakers as desirable or not may depend on several factors not addressed in this article. However, to the extent that this type of minimum benefit design is regarded as potentially desirable, the tradeoffs between administrative simplicity and target effectiveness need to be considered.     

CAN PUBLIC ADMINISTRATION COPE?*

Abstract: Commonly held visions of the future may be grouped into many categories, but for the purposes of this paper three scenarios are used. The first involves a drastically worsened extension of the present situation of inflation and shortages with comprehensive government action necessary to avoid civil conflict and the breakdown of essential services and supplies. Here the experiences of the two World Wars and periods of reconstruction when public administration did, on the whole, cope are relevant to the question of whether it can do so in the future. The second scenario involves a genuine catastrophe resulting from nuclear war or terrorism leading to a breakdown of constitutional government. Our knowledge of "disaster" administration, however, is limited (fiction is perhaps as informative) and the subject should receive systematic study. The final scenario involves the problems of coping with economic growth and rising expectations in a "no-growth" situation. As public administration is closely geared to the past rather than the future, what governments require in this climate is a continuing capacity for forecasting to revise and up-date estimates. At the Commonwealth and State levels this could take the form of a Forecasting and Analysis Unit within government.     

政府与社会组织关系演进的历史逻辑

从总体性二元合一走向分化性二元合一,解决分化与耦合两个方面的问题,是中国政府与社会组织关系演进的总体态势。运用结构功能主义视角,可以发现,演进历经让渡与承接、规范与依附、激活与协同等阶段,由政府与社会组织的功能性界分,到基于责任结构整合的政会功能黏附,逐渐发展为基于全面结构整合的政会功能分化与耦合。演进的基本逻辑,是政府主导下功能演变与结构调整的互动,即由政府主导的演进轨道、由功能演变与结构调整互动而构成的演进机制。展望未来,分化性二元合一体系的完善,必须按照现代国家治理的要求,在政府与社会组织之间打造共建、共治与共享的结构功能系统,实现基于责任结构契合的功能目标一致、基于权力结构合理的功能形式耦合、基于利益结构规范的功能输出互益。     

中国"三农"问题的观察与思考

中国是一个农业和农民大国,研究和思考中国现实一切重大社会问题,必须从这一基本国情出发.制约中国现代化事业的最大障碍,不在城市,而在农村.只有解决好"三农"问题,中国才有一个稳定和繁荣的未来.解决中国"三农"问题,其根本出路是大量减少农民.这涉及到整个社会利益格局的大调整.因此,没有一个宏大的战略眼光,没有一个巨型的系统工程,是无法驾驭这件事情的.     

Implications of the Balanced Budget Act of 1997 for the "Devolution Revolution"

From an economist's perspective, the fiscal and administrativegoals of the so-called "devolution revolution" include lessfederal intergovernmental aid, especially if fiscally equalizing;the substitution of block grants for matching grants; greateradministrative flexibility for the states; and fewer underfundedmandates. This article uses these devolulionary yardsticks toanalyze the major provisions of the federal Balanced BudgetAct of 1997. These provisions fall far short of a "devolutionrevolution." The act increases the level of federal assistance,leaves Medicaid as an open-ended entitlement, and preservesa strong role for the federal government in shaping intergovernmentalgrants. The article discusses the political forces moderatingthe act's devolutionary impact.     

The British Citizenship Test: The Case for Reform

Immigration presents a daunting challenge to successive British governments. The public ranks immigration as one of the leading policy issues after the economy and employment. There is also greater public support for stronger immigration controls than in many other countries. In response, government strategy has included the use of a citizenship test. While the citizenship test is widely acknowledged as one key part of immigration policy, the test has received surprisingly little critical analysis. This article is an attempt to bring greater attention to serious problems with the current test and to offer three recommendations for its revision and reform. First, there is a need to revise and update the citizenship test. Secondly, there is a need to expand the test to include questions about British history and basic law. The third recommendation is more wide‐ranging: it is that we reconsider what we expect new citizens to know more broadly. The citizenship test should not be viewed as a barrier, but as a bridge. The focus should centre on what future citizens should be expected to know rather than how others might be excluded. The test should ensure that future citizens are suitably prepared for citizenship. There is an urgent need to improve the test and this should not be an opportunity wasted for the benefit of both citizens and future citizens alike.     

The Power of the Pen: Human Rights Ombudsmen and Personal Integrity Violations in Latin America, 1982-2006.

Recent scholarship has focused on the effects of institutional design and constitutional provisions on human rights protections. Democratic institutions, like other manifestations of credible commitment to human rights, seem to play a role in human rights provisions across the world. Yet, there is still a great deal that we do not know about domestic institutions like the human rights ombudsman, an institution created specifically to protect human rights, on human rights provisions. We conduct an examination of the effects of the human rights ombudsman (which may go by the name Defensor del Pueblo, Procurador de Derechos Humanos, or Comisionado Nacional de Derechos Humanos), on personal integrity violations across Latin America, 1982–2006. We find evidence that this understudied institution had significant and positive impacts on reducing such violations.     

养老社会保险制度的反贫困分析——美国的实践及对我国的启示

在不同的社会保障制度模式下,养老社会保险的反贫困功能不一样。不同的养老社会保险制度设计会影响其反贫困功能的发挥。美国的公共养老保险制度——"老年人、遗属和残疾人保险(OASDI)"在计发办法上的累退倾向,在受益对象上不限于退休者本人还包括配偶、遗属和残疾人,在实际给付时关于受益类型、课税、最低和最高收益、随生活成本进行调整等政策规定,对于低收入者保护倾向非常明显。与美国相比,我国目前的养老社会保险存在覆盖面窄、水平偏高,受益水平差异偏大,缺乏不同的受益类型设计等问题。为推动多层次养老保障体系建设,我国养老社会保险制度改革的政策取向应该是降低现有受益水平,扩大覆盖面,并通过覆盖更多的低收入者来增强制度的反贫困效果。同时评估和改革个人账户,以防止养老金差异过大。     

Rural Development Policy: Rationale and Reality

America's rural communities have fared poorly in economic termscompared to metropolitan areas. After a spurt of growth in the1970s that seemed to be closing the gap, rural areas are againlosing ground. Rural communities have argued for special helpfrom the national government. Such help can be justified tofacilitate balanced economic growth, create "more equal" standardsof living, and benefit small farmers, a group for whom the nationhas a special regard. The counter-arguments are that specialhelp to rural areas postpones adjustments to an increasinglyurban world and that federal rural programs subsidize a favoredlife-style. In fact, several federal development programs serverural areas. President Carter announced a rural policy in 1979.In 1980 the Congress enacted legislation requiring future administrationsto address rural concerns systematically. The Reagan administrationhas sent Congress the rural development strategy required bythe law, and two annual updates. However, if having a policymeans having a systematic approach to reaching defined objectives,the U.S. has had no rural policy. The objectives of federalrural efforts have never been settled on, and approaches torural problems continue to be unsystematic.     

Evaluating the effects of changes in AFDC: Methodological issues and challenges

Analysts are commonly called upon to perform the difficult task of evaluating the effects of specific changes in public policy upon the behavior of individuals, such as a change in the provisions of the Aid to Families with Dependent Children (AFDC) program relating to the benefits of those in the program who find work. When charged with such a task, analysts commonly try to answer the question by tracing the behavior of a fixed panel of individuals, comparing the experience of the group before and after the change in policy. That approach, however, risks major errors; in the case of the AFDC program, for instance, changes in the work benefit provisions affected the decisions of some who might have come into the program, a consequence that would not be picked up by a fixed panel of initial recipients. Cross-sectional data drawn independently from a general population at points in time before and after a policy change can often provide a more valid measure of the effects of the policy change than can panel data; moreover, cross-sectional data are usually less expensive and more readily available.     

A COMPARATIVE ANALYSIS OF RULEMAKING PROVISIONS IN STATE ADMINISTRATIVE PROCEDURE ACTS

As the primary source of procedures that state agencies must follow, state Administrative Procedure Acts (APAs) structure administrative discretion in the promulgation of rules and regulations. While the federal APA has been studied extensively, much less has been written about state procedural statutes. This article describes the major rulemaking provisions in state APAs and provides a broad, comparative, and systematic understanding of these provisions. Our analysis yields three major findings. First, state procedural statutes vary considerably in the extent to which they structure administrative discretion in rulemaking. Second, adoption of these rulemaking provisions tends to vary in a systematic way, as states first incorporate due process provisions, and then adopt responsiveness and rationality provisions. Third, in the area of procedural regulatory reform, states have made considerable strides in reforming regulatory administration.     

LONGEVITY‐RELATED OPTIONS FOR SOCIAL SECURITY: A MICROSIMULATION APPROACH TO RETIREMENT AGE AND MORTALITY ADJUSTMENTS

We consider the distributional implications of Social Security policy changes in the context of increases in life expectancy and differential mortality. Using a robust microsimulation model, we examine how several options for raising the retirement age, including a scenario that applies a mortality adjustment in combination with such policies, affect different types of individuals and households. Policy changes are simulated for Social Security beneficiaries in 2030 using the Modeling Income in the Near Term (MINT) microsimulation model. The analysis shows that increasing either the age at which individuals receive their full retirement benefit alone or the early eligibility and full retirement ages together result in across‐the‐board reductions in benefit levels. The policies are projected to result in slightly higher poverty, but the expected rise is sharper among groups known to experience higher rates of mortality, as well as many disadvantaged groups. Analysis of a hypothetical adjustment to offset the historical impacts of differential mortality by lifetime earnings on lifetime benefit receipt, when combined with these retirement age increases, shows varied results. While some groups of individuals experience sharper reductions in median monthly benefits, the adjustment has an offsetting and protective effect for the benefits of disadvantaged groups when combined with options that would raise the retirement age. This combined package of policies, as well as simulations that incorporate a behavioral adjustment in benefit claiming ages, result in an increase of less than one percentage point in the average poverty rate.     

Effect on benefits of earnings at ages 65 or older, 1995.

A major policy issue for the Social Security program is the treatment of earnings of persons who have attained retirement age. This article discusses the retirement test and recomputation of benefit provisions, and provides statistical data for 1995. In 1995, about 806,000 persons aged 65-70 had significant earnings resulting in the withholding of benefits by the retirement test. About 1,659,000 persons aged 65 or older realized an increase in their benefit amount because of their earnings.     

Federal Administration of the Surface Mining Control and Reclamation Act of 1977 in Oklahoma

SMCRA, which established detailed standards for the surfacemining of coal, attempted to balance the need to increase coalproduction with safeguarding the environment. The act was basedon the principle of cooperative federalism. The states wereoffered both positive and negative inducements to assume importantroles in the design and implementation of regulatory programsconsistent with the SMCRA. Oklahomas Department of Mines (DOM)carried out the provisions of the act so poorly that the federalOffice of Surface Mining (OSM) was compelled to take over SMCRAinspection and enforcement. Other provisions of the act wereadministered by DOM, which found itself in a condition of "cohabitation"with OSM from 1984–1987. During that time, DOM becamea stronger, technologically sophisticated agency; OSM gaineda greater appreciation of the difficulties of implementing astate program; the mining industry became reconciled to reclamationcontemporaneous with mining; and there was an increase in citizenparticipation. The return of primacy to Oklahoma may usher ina new federal relationship in surface mining regulation, withmore power shifting to the states as budget pressures reducefunds and the number of employees in OSM.