Annual Statistical Supplement, 2003

History of OASDI Coverage, Financing, and Insured Status

Table 2.A1 Covered employment and self-employment provisions, by year enacted
Year enacted Coverage election or waiver Provision
1935 . . . All workers in commerce and industry (except railroads) under age 65 in the continental United States, Alaska, and Hawaii and on American vessels. (Covered after 1936.)
1939 . . . Age restriction eliminated.
1946 . . . Railroad and Social Security earnings combined to determine eligibility for and amount of survivors benefits.
1950 . . . Regularly employed farm and domestic workers. Nonfarm self-employed (except members of professional groups). Federal civilian employees not under a federal retirement system. U.S. citizens employed outside the United States by American employers. Workers in Puerto Rico and the Virgin Islands (effective January 1, 1951).
Elective by employer State and local government employees not under a state and local government retirement system. Termination permitted 2 years after giving notice if group has 5 years of coverage when notice is given.
Elective by employer and employee Employees (other than members of the clergy) of nonprofit organizations (upon election by employer, each current employee given a choice as to coverage; new employees are covered). Nonprofit organizations permitted to terminate coverage 2 years after giving notice, if the organization has 8 years of coverage when notice is given.
1951 . . . Railroad workers with less than 10 years of service, for all benefits. (After October 1951, coverage retroactive to 1937.)
1954 . . . Farm self-employed. Professional self-employed except lawyers, dentists, physicians, and members of other medical groups (taxable years ending after 1954). Additional regularly employed farm and domestic workers. Homeworkers.
Elective by employer U.S. citizens employed outside the United States by a foreign subsidiary of an American employer.
Elective by employer and employee State and local government employees (except fire fighters and police personnel) under a state or local government retirement system (coverage provided at state's option; a majority of the eligible employees must vote in favor). See above (elective by employer, 1950) for termination rule.
Elective by individual Members of the clergy and of religious orders not under a vow of poverty.
1956 . . . Members of the uniformed services on active duty or on active duty for training. Remainder of professional self-employed except physicians (taxable years ending after 1955). Farm landlords who materially participate in farm operations.
Elective by employer and employee Fire fighters and police personnel in designated states. State and local government employees under a state or local government retirement system in designated states may be divided into two systems, one excluding employees not desiring coverage (new employees covered).
1960 . . . U.S. citizens employed in United States by foreign governments or international organizations. Parents working for children (except domestic or casual labor). Workers in Guam and American Samoa.
1965 . . . Interns. Self-employed physicians (taxable years ending on or after December 31, 1965). Tips for employee tax only.
Elective by individual Members of certain religious sects may obtain exemptions from self-employed coverage (retroactive to 1951).
1967 Elective by employer and employee Fire fighters under state and local government retirement system (under a majority favorable vote) and only if governor of state certifies Social Security protection.
Subject to waiver by individual Members of the clergy and of religious orders not under a vow of poverty are covered automatically, but they can choose to be exempt on grounds of conscience or religious principles. Taxable years ending after 1967.
1972 Elective by employer Members of a religious order who are subject to a vow of poverty. Retroactivity allowed for 5 years but not earlier than January 1, 1968.
1977 Elective by individual Members of the clergy and of religious orders who filed an application for exemption from coverage may revoke the exemption if the revocation is filed before the due date of the individual's federal income tax return for the first taxable year beginning after December 20, 1977.
1982 . . . Federal employees—Hospital Insurance (Part A) program only, effective January 1, 1983.
1983 . . . Federal employees newly hired after December 31, 1983, including executive, legislative, and judicial branch employees, and also including those hired before January 1, 1984, with a break in service lasting more than 365 days. Excludes re-employed annuitants hired before January 1, 1984.
. . . Legislative branch employees hired before 1984 who were not participating in the Civil Service Retirement System on December 31, 1983.
. . . Members of Congress, the President, the Vice President, sitting federal judges, and most executive-level political appointees of the federal government.
. . . Employees of nonprofit organizations.
. . . U.S. residents employed outside the United States by American employers.
Elective by employer U.S. residents employed outside the United States by a foreign affiliate of an American employer.
. . . Employees of nonprofit organizations placed under compulsory coverage; nonprofit organizations prohibited from terminating coverage of their employees on or after March 31, 1983.
Elective by employer or by employer and employee States prohibited from terminating coverage of employees (after April 20, 1983) and permitted to reinstate coverage for a terminated group.
1984 . . . Rehired federal employees whose previous service was covered.
. . . Persons exercising reemployment rights to noncovered federal employment retain exemption after a period (not limited to 365 or fewer days) of military or national guard service or work for an international organization.
. . . Generally, all legislative branch employees except those who were participating on December 31, 1983, and are also currently participating in the Civil Service Retirement System or another federal retirement system.
. . . Employees of nonprofit organizations who are also participating on a mandatory basis in the Civil Service Retirement System are treated like federal employees for Social Security tax and coverage purposes. They are therefore not covered unless hired on or after January 1, 1984, or reemployed after a break in service of more than 365 days.
Elective by employer Churches or church-related organizations may elect irrevocably to have services performed by their employees excluded from covered employment. Their employees are then treated as self-employed for Social Security purposes.
1986 . . . State and local government employees hired after March 31, 1986—Hospital Insurance (Part A) program only.
Elective by individual Members of the clergy and of religious orders who filed an application for exemption from coverage may revoke the exemption if the revocation is filed before the due date of the individual's federal income tax return for the first taxable year beginning after October 22, 1986.
1987 . . . Members of uniformed services reserve components on inactive duty training. Irregularly employed farm workers (if employer's annual expenditures for farm labor is at least $2,500). Services performed in trade or business of spouse or by children aged 18 or older in trade or business of parent. For employers, the full amount of covered tips.
1990 . . . State and local government employees not under a state or local government retirement system. Exceptions: (1) students employed by the educational institution they attend and (2) election workers paid less than the mandated amount ($100), unless either group covered under a state's Section 218 agreement.
1994 . . . Threshold for exclusion of wages paid to election workers raised from $100 to $1,000 annually beginning January 1, 1995, and will be indexed for wage increases each year after December 31, 1999.
. . . Police and fire fighters under a public retirement system can be covered for Social Security in all states.
. . . Threshold for coverage of domestic employees' earnings raised from $50 per calendar quarter to $1,000 per calendar year per employer; amount subject to annual automatic adjustments. Domestic workers no longer covered for years in which they were under age 18, unless they are no longer in school and domestic employment is their principal occupation. Coverage of earnings of domestic workers on farms becomes subject to new annual threshold for domestic workers instead of annual threshold for agricultural employees.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm).
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A2 Noncontributory wage credit provisions, by year enacted
Year enacted Provision
1946 Fully insured status and average monthly wage of $160 for World War II veterans who died within 3 years after discharge.
1950 Wage credits of $160 per month of military service during World War II period (September 16, 1940–July 24, 1947).
1952 Wage credits of $160 per month of military service to December 31, 1953.
1953 Wage credits of $160 per month of military service to June 30, 1955.
1955 Wage credits of $160 per month of military service to March 31, 1956.
1956 Wage credits of $160 per month of military service to December 31, 1956.
1967 For uniformed services, wage credits of $100 for each $100 (or fraction thereof) of basic pay not in excess of $300 per calendar quarter, beginning in 1968.
1972 For uniformed services, wage credits of $300 per calendar quarter of service after 1956. (Supersedes 1967 provision.) For U.S. citizens of Japanese ancestry, wage credits for the period they were interned by the U.S. government during World War II period (December 7, 1941–December 31, 1946) and were aged 18 or older.
1977 For uniformed services, wage credits of $100 for each $300 of basic pay up to maximum credit of $1,200 per calendar year after 1977.
2002 For uniformed services, deemed wage credits are eliminated for all years after calendar year 2001. Deemed wage credits will continue to be given for appropriate earnings for periods prior to calendar year 2002.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm).
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A3 Annual maximum taxable earnings and contribution rates, 1937–2003
Year Annual maximum
taxable earnings
(dollars)		 Contribution rate (percent)
Employer and employee, each Self-employed person
OASDI HI Total,
OASDI
and HI		 OASI DI HI Total,
OASDI
and HI		 OASI DI HI
1937–1949 3,000 . . . 1.0 1.0 . . . . . . . . . . . . . . . . . .
1950 3,000 . . . 1.5 1.5 . . . . . . . . . . . . . . . . . .
1951–1953 3,600 . . . 1.5 1.5 . . . . . . 2.25 2.25 . . . . . .
1954 3,600 . . . 2.0 2.0 . . . . . . 3.0 3.0 . . . . . .
1955–1956 4,200 . . . 2.0 2.0 . . . . . . 3.0 3.0 . . . . . .
1957–1958 4,200 . . . 2.25 2.0 0.25 . . . 3.375 3.0 0.375 . . .
1959 4,800 . . . 2.5 2.25 0.25 . . . 3.75 3.375 0.375 . . .
1960–1961 4,800 . . . 3.0 2.75 0.25 . . . 4.5 4.125 0.375 . . .
1962 4,800 . . . 3.125 2.875 0.25 . . . 4.7 4.325 0.375 . . .
1963–1965 4,800 . . . 3.625 3.375 0.25 . . . 5.4 5.025 0.375 . . .
1966 6,600 6,600 4.2 3.5 0.35 0.35 6.15 5.275 0.525 0.35
1967 6,600 6,600 4.4 3.55 0.35 0.5 6.4 5.375 0.525 0.5
1968 7,800 7,800 4.4 3.325 0.475 0.6 6.4 5.0875 0.7125 0.6
1969 7,800 7,800 4.8 3.725 0.475 0.6 6.9 5.5875 0.7125 0.6
1970 7,800 7,800 4.8 3.65 0.55 0.6 6.9 5.475 0.825 0.6
1971 7,800 7,800 5.2 4.05 0.55 0.6 7.5 6.075 0.825 0.6
1972 9,000 9,000 5.2 4.05 0.55 0.6 7.5 6.075 0.825 0.6
1973 10,800 10,800 5.85 4.3 0.55 1.0 8.0 6.205 0.795 1.0
1974 13,200 13,200 5.85 4.375 0.575 0.9 7.9 6.185 0.815 0.9
1975 14,100 a 14,100 a 5.85 4.375 0.575 0.9 7.9 6.185 0.815 0.9
1976 15,300 a 15,300 a 5.85 4.375 0.575 0.9 7.9 6.185 0.815 0.9
1977 16,500 a 16,500 a 5.85 4.375 0.575 0.9 7.9 6.185 0.815 0.9
1978 17,700 a 17,700 a 6.05 4.275 0.775 1.0 8.1 6.01 1.09 1.0
1979 22,900 22,900 6.13 4.33 0.75 1.05 8.1 6.01 1.04 1.05
1980 25,900 25,900 6.13 4.52 0.56 1.05 8.1 6.2725 0.7775 1.05
1981 29,700 29,700 6.65 4.7 0.65 1.3 9.3 7.025 0.975 1.3
1982 32,400 a 32,400 a 6.7 4.575 0.825 1.3 9.35 6.8125 1.2375 1.3
1983 35,700 a 35,700 a 6.7 4.775 0.625 1.3 9.35 7.1125 0.9375 1.3
1984 37,800 a 37,800 a 7.0 b 5.2 0.5 1.3 14.0 b 10.4 1.0 2.6
1985 39,600 a 39,600 a 7.05 5.2 0.5 1.35 14.1 b 10.4 1.0 2.7
1986 42,000 a 42,000 a 7.15 5.2 0.5 1.45 14.3 b 10.4 1.0 2.9
1987 43,800 a 43,800 a 7.15 5.2 0.5 1.45 14.3 b 10.4 1.0 2.9
1988 45,000 a 45,000 a 7.51 5.53 0.53 1.45 15.02 b 11.06 1.06 2.9
1989 48,000 a 48,000 a 7.51 5.53 0.53 1.45 15.02 b 11.06 1.06 2.9
1990 51,300 c 51,300 c 7.65 5.6 0.6 1.45 15.3 11.2 1.2 2.9
1991 53,400 c 125,000 d 7.65 5.6 0.6 1.45 15.3 11.2 1.2 2.9
1992 55,500 c 130,200 7.65 5.6 0.6 1.45 15.3 11.2 1.2 2.9
1993 57,600 a 135,000 a 7.65 5.6 0.6 1.45 15.3 11.2 1.2 2.9
1994 60,600 a e 7.65 5.26 0.94 1.45 15.3 10.52 1.88 2.9
1995 61,200 a e 7.65 5.26 0.94 1.45 15.3 10.52 1.88 2.9
1996 62,700 a e 7.65 5.26 0.94 1.45 15.3 10.52 1.88 2.9
1997 65,400 a e 7.65 5.35 0.85 1.45 15.3 10.7 1.7 2.9
1998 68,400 a e 7.65 5.35 0.85 1.45 15.3 10.7 1.7 2.9
1999 72,600 a e 7.65 5.35 0.85 1.45 15.3 10.7 1.7 2.9
2000 76,200 a e 7.65 5.3 0.9 1.45 15.3 10.6 1.8 2.9
2001 80,400 a e 7.65 5.3 0.9 1.45 15.3 10.6 1.8 2.9
2002 84,900 a e 7.65 5.3 0.9 1.45 15.3 10.6 1.8 2.9
2003 87,000 a e 7.65 5.3 0.9 1.45 15.3 10.6 1.8 2.9
a. Based on automatic adjustment, under 1972 legislation (as modified by 1973 legislation), in proportion to increases in average wage level.
b. Includes tax credit, see Table 2.A5.
c. Based on automatic adjustment, under 1972 legislation (as modified by 1973 legislation), using a transitional rule, specified by the Omnibus Budget Reconciliation Act (OBRA) of 1989, for computing a "deemed" average annual wage for 1988, 1989, and 1990.
d. Based on 1990 legislation.
e. Upper limit on earnings subject to HI taxes was repealed by OBRA 1993.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A4 Maximum annual amount of contributions, 1937–2003 (in dollars)
Year Employee Self-employed person
Total,
OASDI
and HI		 Subtotal,
OASDI		 OASI DI HI Total,
OASDI
and HI		 Subtotal,
OASDI		 OASI DI HI
1937–1949 30.00 30.00 30.00 . . . . . . . . . . . . . . . . . . . . .
1950 45.00 45.00 45.00 . . . . . . . . . . . . . . . . . . . . .
1951–1953 54.00 54.00 54.00 . . . . . . 81.00 81.00 81.00 . . . . . .
1954 72.00 72.00 72.00 . . . . . . 108.00 108.00 108.00 . . . . . .
1955–1956 84.00 84.00 84.00 . . . . . . 126.00 126.00 126.00 . . . . . .
1957–1958 94.50 94.50 84.00 10.50 . . . 141.75 141.75 126.00 15.75 . . .
1959 120.00 120.00 108.00 12.00 . . . 180.00 180.00 162.00 18.00 . . .
1960–1961 144.00 144.00 132.00 12.00 . . . 216.00 216.00 198.00 18.00 . . .
1962 150.00 150.00 138.00 12.00 . . . 225.60 225.60 207.60 18.00 . . .
1963–1965 174.00 174.00 162.00 12.00 . . . 259.20 259.20 241.20 18.00 . . .
1966 277.20 254.10 231.00 23.10 23.10 405.90 382.80 348.15 34.65 23.10
1967 290.40 257.40 234.30 23.10 33.00 422.40 389.40 354.75 34.65 33.00
1968 343.20 296.40 259.35 37.05 46.80 499.20 452.40 396.825 55.575 46.80
1969 374.40 327.60 290.55 37.05 46.80 538.20 491.40 435.825 55.575 46.80
1970 374.40 327.60 284.70 42.90 46.80 538.20 491.40 427.05 64.35 46.80
1971 405.60 358.80 315.90 42.90 46.80 585.00 538.20 473.85 64.35 46.80
1972 468.00 414.00 364.50 49.50 54.00 675.00 621.00 546.75 74.25 54.00
1973 631.80 523.80 464.40 59.40 108.00 864.00 756.00 670.14 85.86 108.00
1974 772.20 653.40 577.50 75.90 118.80 1,042.80 924.00 816.42 107.58 118.80
1975 824.85 697.95 616.875 81.075 126.90 1,113.90 987.00 872.085 114.915 126.90
1976 895.05 757.35 669.375 87.975 137.70 1,208.70 1,071.00 946.305 124.695 137.70
1977 965.25 816.75 721.875 94.875 148.50 1,303.50 1,155.00 1,020.525 134.475 148.50
1978 1,070.85 893.85 756.675 137.175 177.00 1,433.70 1,256.70 1,063.77 192.93 177.00
1979 1,403.77 1,163.32 991.59 171.75 240.45 1,854.90 1,614.45 1,376.29 238.16 240.45
1980 1,587.67 1,315.72 1,170.68 145.04 271.95 2,097.90 1,825.95 1,624.58 201.37 271.95
1981 1,975.05 1,588.95 1,395.90 193.05 386.10 2,762.10 2,376.00 2,086.43 289.57 386.10
1982 2,170.80 1,749.60 1,482.30 267.30 421.20 3,029.40 2,608.20 2,207.25 400.95 421.20
1983 2,391.90 1,927.80 1,704.675 223.125 464.10 3,337.95 2,873.85 2,539.1625 334.6875 464.10
1984 a 2,646.00 2,154.60 1,965.60 189.00 491.40 5,292.00 4,309.20 3,931.20 378.00 982.80
1985 a 2,791.80 2,257.20 2,059.20 198.00 534.60 5,583.60 4,514.40 4,118.40 396.00 1,069.20
1986 a 3,003.00 2,394.00 2,184.00 210.00 609.00 6,006.00 4,788.00 4,368.00 420.00 1,218.00
1987 a 3,131.70 2,496.60 2,277.60 219.00 635.10 6,263.40 4,993.20 4,555.20 438.00 1,270.20
1988 a 3,379.50 2,727.00 2,488.50 238.50 652.50 6,759.00 5,454.00 4,977.00 477.00 1,305.00
1989 a 3,604.80 2,908.80 2,654.40 254.40 696.00 7,209.60 5,817.60 5,308.80 508.80 1,392.00
1990 3,924.45 3,180.60 2,872.80 307.80 743.85 7,848.90 6,361.20 5,745.60 615.60 1,487.70
1991 5,123.30 3,310.80 2,990.40 320.40 1,812.50 10,246.60 6,621.60 5,980.80 640.80 3,625.00
1992 5,328.90 3,441.00 3,108.00 333.00 1,887.90 10,657.80 6,882.00 6,216.00 666.00 3,775.80
1993 5,528.70 3,571.20 3,225.60 345.60 1,957.50 11,057.40 7,142.40 6,451.20 691.20 3,915.00
1994 b 3,757.20 3,187.56 569.64 b b 7,514.40 6,375.12 1,139.28 b
1995 b 3,794.40 3,219.12 575.28 b b 7,588.80 6,438.24 1,150.56 b
1996 b 3,887.40 3,298.02 589.38 b b 7,774.80 6,596.04 1,178.76 b
1997 b 4,054.80 3,498.90 555.90 b b 8,109.60 6,997.80 1,111.80 b
1998 b 4,240.80 3,659.40 581.40 b b 8,481.60 7,318.80 1,162.80 b
1999 b 4,501.20 3,884.10 617.10 b b 9,002.40 7,768.20 1,234.20 b
2000 b 4,724.40 4,038.60 685.80 b b 9,448.80 8,077.20 1,371.60 b
2001 b 4,984.80 4,261.20 723.60 b b 9,969.60 8,522.40 1,447.20 b
2002 b 5,236.80 4,499.70 764.10 b b 10,527.60 8,999.40 1,528.20 b
2003 b 5,394.00 4,611.00 783.00 b b 10,788.00 9,222.00 1,566.00 b
a. Includes tax credit, see Table 2.A5.
b. Upper limit on earnings subject to HI taxes was repealed by the Omnibus Budget Reconciliation Act (OBRA) of 1993.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
NOTE: . . . = not applicable.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A5 Tax credits enacted in 1983
Group Tax payable under— Percentage
of earnings		 Tax credit, effective with respect to—
Employee Federal Insurance Contributions Act (FICA) 0.3 Remuneration paid in calendar year 1984
Self-employed Self-Employment Contributions Act (SECA) 2.7 Self-employment income for taxable years beginning in 1984
2.3 Self-employment income for taxable years beginning in 1985
2.0 Self-employment income for taxable years beginning in 1986, 1987, 1988, and 1989
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm).
NOTE: During this period, scheduled taxes were credited to the Social Security trust funds, monies for tax credits were paid from the Treasury, and the reduced tax rates were paid by employees and the self-employed.
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A6 Appropriations from general revenues and interfund borrowing provisions, by type of transaction and year enacted
Year enacted Provision
Appropriations from general revenues
1935 Annual appropriations to the old-age reserve account to provide payments; direct appropriation to pay for administrative expenses.
1939 Trust fund created from which benefits and administrative expenses were to be paid.
1944 General authorization to finance benefits and payments.
1947 For cost of gratuitous military service wage credits.
1950 General authorization repealed.
1951 Railroad interchange provisions enacted.
1956 For cost of gratuitous military service wage credits.
1966 For cost of transitional uninsured monthly benefits for those aged 72 and older with fewer than 3 quarters of coverage.
1972 For cost of gratuitous wage credits for Japanese-American internees.
1983 A lump-sum payment to the OASDI trust funds equal to (1) the present value of the estimated additional benefits arising from the gratuitous military service wage credits for service before 1957 and (2) the amount of the combined employer-employee OASDI taxes on the gratuitous wage credits for service after 1956 and before 1984 but less any amounts previously transferred. After 1983, the trust funds will be reimbursed on a current basis for employer-employee taxes on such wage credits for service after 1983.
A lump-sum payment to the OASDI trust funds representing the amount of uncashed benefit checks (including interest) issued in the past. In the future, the trust funds will be credited on a regular basis. All transfers made for uncashed benefit checks will be subject to the annual appropriation process.
Transfers in each year from the Treasury Department to the OASDI trust funds of amounts equal to income tax receipts attributable to inclusion of Social Security benefits in taxable income.
For tax credits for part of the 1984 employment FICA tax and part of the tax on self-employment income under SECA for 1984–1989, see Table 2.A5.
1993 Transfers in each year from the Treasury Department to the HI trust fund of amounts equal to income tax receipts attributable to the increased portions of Social Security benefits included in taxable income under the 1993 Act.
Interfund borrowing
1981 Interfund borrowing permitted among OASI, DI, and HI trust funds as needed until December 31, 1982. For all or part of any loan to be repaid, the managing trustee determines if assets of borrowing trust fund(s) are sufficient for that purpose. Interest with respect to any outstanding loan balance at a rate equal to the rate earned by lending trust fund is transferred from time to time.
1983 Interfund borrowing reauthorized among OASI, DI, and HI trust funds for calendar years 1983–1987, with provisions for scheduled repayment, no later than December 31, 1989, of principal and interest (including amounts borrowed in 1982). No borrowing permitted from any fund that has been reduced to specified levels.
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm).
CONTACT: Greg Diez (410) 965-0153 or Curt Pauzenga (410) 965-7210.
Table 2.A7 Insured status (benefit eligibility) provisions, by eligibility concept and year enacted
Year enacted Provision
Quarter of coverage (QC)
1939 Calendar quarter in which $50 of wages is earned. Four QC are credited for covered earnings equal to maximum limitation for the year.
1946 Calendar quarter in which $50 of wages is paid.
1950 Calendar quarter credited with $100 of self-employment income (reported annually).
1954 Calendar quarter credited with $100 of agricultural wages (reported annually).
1977 Calendar quarters of coverage (up to 4) for each $250 of annual earnings, effective January 1, 1978 (effective on January 1 of each year, dollar amount subject to automatic increase):
Year Amount
(dollars)
1979 260
1980 290
1981 310
1982 340
1983 370
1984 390
1985 410
1986 440
1987 460
1988 470
1989 500
1990 520
1991 540
1992 570
1993 590
1994 620
1995 630
1996 640
1997 670
1998 700
1999 740
2000 780
2001 830
2002 870
2003 890
 
Disability definition
1954 Inability to engage in substantial gainful activity because of any medically determinable permanent physical or mental impairment.
1965 Disability lasting at least 12 months. For blind persons aged 55–64, inability to engage in usual occupation.
1967 Disability that precludes engagement in any substantial gainful work existing in the national economy. For surviving spouse, disability precludes any gainful activity.
1990 More restrictive definition for surviving spouse eliminated.
Period of disability
1954 Continuous period of at least 6 months as defined above or of blindness.
1972 At least 5 months of disability.
Fully insured
1935 Cumulative wages of $2,000 and employment in each of 5 years after 1936 and before attainment of age 65.
1939 QC equal to one-half the quarters elapsed after 1936 (or quarter in which age 21 attained) and before quarter of death or attainment of age 65. Minimum 6 QC, maximum 40 QC.
1950 Elapsed period measured after 1950 (QC earned at any time are used).
1954 Period of disability excluded from elapsed period. Alternatively, QC earned in all quarters after 1954 and before quarter in which age 65 attained (minimum 6 QC).
1956 Elapsed period measured to age 62 for women. Alternatively, QC earned in all except 4 quarters after 1954 and before quarter in which age 65 attained (62 for women).
1960 QC reduced to one-third the elapsed quarters.
1961 QC equal to years elapsed after 1950 (or year age 21 attained) and before year of death or age 65 (62 for women).
1972 Elapsed period for men reaching age 62 after 1972, measured to age 62 or to 1975, if later.
1983 Any person aged 55 or older on January 1, 1984, and employed by a nonprofit organization to whose employees coverage is extended solely by reason of the new compulsory coverage provision will be deemed fully insured upon subsequently acquiring 6 QC if aged 60 or older on January 1, 1984; 8 QC if aged 59; 12 QC if aged 58; 16 QC if aged 57; and 20 QC if aged 55 or 56.
Currently insured
1939 6 QC earned in 12 quarters before quarter of death.
1946 6 QC earned in preceding 13 quarters, including quarter of death.
1950 Including quarter of retirement added.
1954 Including quarter of disablement added.
Disability insured
1954 20 QC earned in last 40 quarters, including quarter of disablement, and currently insured.
1956 Fully insured requirement added.
1958 Currently insured requirement eliminated.
1960 Alternatively, 20 QC earned before quarter of disablement (not necessarily in last 40 quarters) but QC earned in all quarters after 1950, with minimum of 6 QC.
1965 Alternatively, for blind under age 31, QC earned in one-half the quarters elapsed after age 21, with minimum of 6 QC. For blind under age 24, 6 QC earned in preceding 12 quarters.
1967 For all disabled under age 31, same alternative.
1972 For blind, requirement for recent QC eliminated.
1983 For those who become disabled again at age 31 or older and who were previously disabled before age 31, same alternative as that for those under age 31.
Transitionally insured
1965 Same as fully insured, but minimum reduced to 3 QC.
Requirement for special age-72 monthly benefit
1966 3 QC for each year elapsed after 1966 and before attainment of age 72. (No QC if aged 72 before 1968.)
SOURCES: Social Security Act of 1935 (the Act), as amended through December 31, 2002; regulations issued under the Act; and precedential case decisions (rulings). Specific laws, regulations, rulings, legislation, and a link to the Federal Register can be found at the Social Security Program Rules page (http://www.socialsecurity.gov/regulations/index.htm). Social Security Administration, "Cost-of-Living Increase and Other Determinations for 2003," Federal Register, vol. 67, no. 207 (October 25, 2002).
CONTACT: Joseph Bondar (410) 965-0162 or Curt Pauzenga (410) 965-7210.