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.     

Civil Society and Security Sector Reform in Post-conflict Liberia: Painting a Moving Train without Brushes

This article describes the activities related to civil society'sengagement with the question of security sector reform (SSR)in Liberia since the signing of the Accra Comprehensive PeaceAccord (CPA) in August 2003, identifies the challenges it facesand draws lessons learned from this engagement; particularlythe need to develop local capacity, networks of support andnational ownership. Consideration is given to the specificsof the rapidly evolving post-conflict context in which suchreforms are taking place and their connection to the field oftransitional justice as a means of addressing a history of humanrights abuses. The discussion also covers the scope of potentialengagement for civil society in the new political landscapein Liberia that has been created by the deployment of one ofthe world's largest peacekeeping forces and the arrest of formerpresident Charles Taylor.     

Non-State Actors,Political Opportunity Structures and Foreign Relations: The Case of Germany's Federation of Expellees and the ‘Foundation Flight,Expulsion and Reconciliation’

This article examines the political process leading to the creation of the controversial ‘Foundation Flight, Expulsion and Reconciliation’ in Germany. The foundation aims to establish a permanent exhibition by 2016 showcasing the flight and expulsion of up to fifteen million Germans from the East following the Second World War. The foundation was the result of lobbying by the Federation of Expellees (BdV); it caused frictions in Germany's relations with its eastern neighbours and jeopardised Germany's reconciliation process with these states. The process reveals that the structure of Germany's polity, paired with astute alliance building and its members' rhetoric, aided the BdV's cause. Thus, non-state actors can utilise favourable domestic structures for the lack of material resources in order to maximise their lobbying ‘power’. This contributes to the growing literature on reconciliation in international relations which neglects domestic structures as a variable determining reconciliation processes in favour of more normative policy instruments.     

Australia and a Post-Brexit Britain

This article, based on the Robert Menzies Lecture delivered by the author in London on 31 October 2017, provides a survey of Britain and Australia’s bilateral relationship from the 1930s to the present. In the earlier period particular attention is given to the role of Sir Robert Menzies. The relationship is examined in the light of Britain’s accession to the EEC/EU with reference to bilateral trade, security and global politics, and migration, with emphasis on strong people-to-people links. The author expresses hopes for renewed co-operation over free trade, a rules-based world outlook and links between universities in a post-Brexit world. He argues that although the bilateral relationship went through some troubled times in the 1960s, 1970s and 1980s, it is now getting back to the natural strength that it deserves.     

The “microwave oven” practice in Brazil

This article presents a forensic case of an unusual illegal cremation of a person using a process colloquially known as the “microwave oven” practice in Brazil. The microwave process involves two actions: placing the victim in a tire stack and then setting the structure on fire using flammable substances to accelerate the progression. A similar practice, identified as “necklacing”, has also been reported in other countries such as South Africa. This report presents a case of microwave oven cremation of a body found in a rural area of Minas Gerais, Brazil. The forensic work helped determine the biological profile and identity of the victim using radiological comparisons. Although the microwave oven cremation practice is rare, it can impose challenges for investigators. Therefore, fully understanding this practice can be helpful to the academic and forensic communities.