Nov 24, 2010

NJ Reduces State Supplementation Of SSI

First, let me give some history. The Supplemental Security Income (SSI) program was introduced in the 1970s. It replaced earlier state programs of aid to indigent people who were of old age or disabled. At the time it was introduced, a number of states were paying higher benefit rates than the new SSI program. States were allowed to supplement the SSI benefits to bring them up to their previous level. Many states still supplement SSI benefits for their residents. The states transfer the money to Social Security which gives SSI recipients one check or direct deposit that includes both the basic SSI rate and the state supplementation. However, states are not obliged to continue the state supplementation.

Social Security has put out an emergency message saying that the state of New Jersey is reducing its state supplementation beginning in January 2011. California has already done this. I will be surprised if other states do not follow suit.

3 comments:

Anonymous said...

States are in as bad a condition as the U.S. government is with debt, but unlike the U.S. government states can't print money, so something has to give.

I'm surprised Christie didn't cut it out. That's the guy the GOP needs for 2012.

Anonymous said...

Nj is reducing one of its optional supplements--individual with ineligible spouse--just announced earlier this week. So, it continues. New York needs to be next.

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