Appendix K to the report of the 1983 Greenspan Commission on Social Security Reform
Appendix K- Section G
SUMMARY OF SECTION G - DISABILITY BENEFITS |
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OASDI Cost 1983-89 |
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Option No. |
Description |
II-B |
III |
Long-Term Cost |
G-1 |
Use medical-only definition of disability | -$10 |
-$11 |
-.06% |
G-2 |
Apply disability eligibility criteria under present law for persons aged 60-64, to persons aged 55 and over. | +1 |
+2 |
+.04 |
G-3 |
Increase disability waiting period from 5 months to 6 months. | -2 |
-2 |
-.03 |
G-4 |
Require prognosis of 24 months of disability. | -4 |
-5 |
-.06 |
G-5 |
Change requirement for disability-insured status by increasing recency-of-work test to 30 quarters of coverage in last 40 quarters (rather than 20 out of 40). | -5 |
-6 |
-.25 |
G-6 |
Change requirement for disability-insured status by eliminating the test of 20 quarters of coverage out of the last 40 quarters. | +20 |
+22 |
+.24 |
G. DISABILITY BENEFITS
Present law. Benefits are available to insured workers who meet the statutory definition of disability, with a waiting period of 5 full calendar months before the first month of eligibility.
Options.
G-1 Establish a medical-only definition of disability (so that non-medical factors -- such as age, education, and work experience -- would no longer be considered in determining disability), effective for benefits for months after 1983 based on disabilities which begin after June 1983.
Costs (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.2 |
-.6 |
-1.3 |
-2.0 |
-2.7 |
-3.4 |
-10.2 |
III |
0 |
-.2 |
-.7 |
-1.4 |
-2.2 |
-3.1 |
-3.8 |
-11.4 |
Long-Term Cost: -.06% of taxable payroll
G-2 Apply disability eligibility criteria under present law for persons aged 60-64, to persons aged 55 and over, effective in 1985.
Costs (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
0 |
+.1 |
+.2 |
+.3 |
+.4 |
+.4 |
+1.4 |
III |
0 |
0 |
+.1 |
+.2 |
+.3 |
+.4 |
+.5 |
+1.5 |
25-Year Cost: +.03% of taxable payroll
50-Year Cost: +.04% of taxable payroll
Long-Term Cost: +.04% of taxable payroll
G-3 Increase waiting period to 6 months (instead of 5 months, as at present), effective for benefits for months after 1983 based on disabilities which begin after June 1983.
Costs (in billions of dollars) |
||||||||
Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.3 |
-.3 |
-.3 |
-.3 |
-.4 |
-1.6 |
III |
0 |
-.1 |
-.2 |
-.3 |
-.3 |
-.4 |
-.4 |
-1.8 |
Long-Term Cost: -.03% of taxable payroll
G-4 Require prognosis of at least 24 months of disability (instead of 12 months, as at present), effective for benefits for months after 1983 based on disabilities which begin after June 1983.
Costs (in billions of dollars) |
||||||||
Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.4 |
-.6 |
-.8 |
-.9 |
-1.0 |
-3.8 |
III |
0 |
-.1 |
-.5 |
-.7 |
-1.0 |
-1.1 |
-1.2 |
-4.6 |
Long-Term Cost: -.06% of taxable payroll
G-5 Increase requirement for disability-insured status by requiring 30 Quarters of Coverage in the last 40 Quarters (instead of 20 QC out of 40), effective for benefits for months after 1983, based on disabilities which begin after June 1983.
Costs (in billions of dollars) |
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Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
-.1 |
-.3 |
-.7 |
-1.0 |
-1.4 |
-1.7 |
-5.2 |
III |
0 |
-.1 |
-.3 |
-.7 |
-1.1 |
-1.6 |
-2.0 |
-5.8 |
Long-Term Cost: -.25% of taxable payroll
G-6 Change the requirement for disability-insured status by eliminating the test of 20 QC out of the last 40 quarters, effective in 1984.
Costs (in billions of dollars) |
||||||||
Estimate |
1983 |
1984 |
1985 |
1986 |
1987 |
1988 |
1989 |
1983-89 |
II-B |
0 |
+2.0 |
+3.3 |
+3.5 |
+3.6 |
+3.7 |
+3.9 |
+20.0 |
III |
0 |
+2.0 |
+3.5 |
+3.7 |
+3.9 |
+4.2 |
+4.5 |
+21.8 |
Long-Term Cost: +.24% of taxable payroll