# 71 - Social Security, SSI and Child Support
Monograph # 71
Social Security, SSI and Child Support
© Lawrence D. Gorin, Attorney at Law, Portland, Oregon
Introduction
All too often, it seems, references to “social security” and “SSI” are used in the same breath, without any distinction. Yet the terms refer to two separate and very distinct federal programs. Problems and confusion arise when the terms are unthinkingly used interchangeably in connection with discussions regarding child support. Lawyers need to be cognizant of the distinctions. The purpose of this article is to advance that goal.
Social Security benefits vs. SSI benefits
“Social Security,” as that term is commonly used, refers to the federal “Old Age, Survivors and Disability Insurance” (OASDI) program the provides retirement benefits, life insurance benefits and disability insurance benefits for insured workers (and their qualifying dependents and survivors). The Social Security program is funded by FICA (Federal Insurance Contributions Act) payroll taxes withheld from employee wages and the matching contributions made by employers. Title II (42 USC § 201 et seq) of the Social Security Act comprises the enabling federal legislation.
See “Social Security: A Simple Concept”
http://www.ssa.gov/pubs/10024.html#simpleconcept
“SSI” refers to the Supplemental Security Income program, which is a “needs-based” program for certain otherwise qualifying individuals who are old, blind or disabled. Although the SSI program is administered by the federal Social Security Administration (SSA), it is NOT part of the Social Security OASDI program itself. SSI money comes from congressional appropriations taken from general tax revenues, not from the Social Security payroll taxes that workers pay via FICA withholding. In essence, SSI is a federally operated low-income (or no-income) welfare program for qualifying persons based on age and physical condition, coupled with financial circumstances. Title XVI (42 USC § 1601 et seq) of the Social Security Act comprises the enabling federal legislation.
See “Supplemental Security Income (SSI) - Overview”
http://www.ssa.gov/ssi/text-over-ussi.htm
In contrast to SSI payments that are paid based on financial need, Social Security insurance benefits are paid to insured workers and their qualifying dependents and survivors, without regard to need. Retirement benefits are available commencing at age 62. Disability insurance benefits may paid whenever the insured worker becomes disabled. And upon the death of an insured worker, “survivor’s insurance benefits” are payable to qualifying surviving spouses and dependents of the deceased worker. All of these benefits are paid without regard to any consideration of individual “:need.”
Social Security “child’s insurance benefits”
Under the Social Security program, when an insured worker who is a parent retires, dies or becomes disabled, and has a qualifying minor child, “child’s insurance benefits” are available. In the case of a parent’s retirement or disability, the resulting benefit available to the parent’s child is paid in addition to the parent’s own retirement or disability benefit, so that the parent’s own Social Security benefit continues to be paid in full, without any reduction.
To qualify for Social Security “child’s benefits,” the insured worker’s child must be unmarried and either (1) younger than 18 or (2) younger than 19 and a full-time secondary school student. (A child who is age 18 or over and who became disabled before age 22 and who continues to be disabled is also entitled to a child’s benefit based on the parent’s retirement benefit entitlement.)
The Social Security “child’s benefit” resulting from a parent’s retirement or disability is an amount equal to one-half (50%) of the retired or disabled worker’s primary Social Security insurance amount. Note, however, that there is a limit to the amount of money that can be paid to a family. The family maximum payment is determined as part of every Social Security benefit computation and can be from 150% to 180% of the parent’s full benefit amount. If the total amount payable to all family members exceeds this limit, each person’s benefit is reduced proportionately (except the parent’s) until the total equals the maximum allowable amount.
For the surviving child of a deceased worker, the “surviving child’s Social Security benefit” is 75% of the deceased worker’s primary Social Security insurance amount. Also, when a deceased worker’s child is under age 16 and is in the custody and care of the deceased worker’s surviving spouse (or the deceased worker’s former spouse), a “surviving parent’s insurance benefit” is available. This benefit, which is 75% of the deceased parent’s primary Social Security insurance amount, is paid in addition to the child’s benefit.
Application for the child’s social security benefit, and entitlement to receipt thereof, does not require the consent of the retired or disabled worker. For example, when parents are divorced and the noncustodial parent is entitled to receive Social Security retirement or disability benefits, the custodial parent may apply to SSA on behalf of the child for the “child’s Social Security insurance benefit” without need of any consent from or involvement of the noncustodial parent. This sometimes results in the noncustodial parent being totally unaware that the child is receiving When Social Security child’s insurance benefits are paid, the check is usually paid to a “representative payee” for the child, most often being the child’s custodial parent (or other legal custodian).
See “Benefits for Children”
http://www.ssa.gov/pubs/10085.html
Effect of Social Security and SSI on child support obligations
As may be inferred from the label used, Supplemental Security Income (SSI) is designed and intended to SUPPLEMENT the recipient’s income, NOT to replace the income. If a disabled child is eligible for and is receiving SSI, the SSI money does not abrogate a parent’s legal duty and obligation to support his/her child. The legal duty of the parent to support the child continues. The SSI money is intended to SUPPLEMENT the financial resources otherwise available to the SSI recipient, not to replace those resources. Consequently, in the absence of any change in the parent’s income, it would be inappropriate to adjust the amount of a parent’s court-ordered child support obligation simply because of the disabled child’s receipt of an SSI benefit.
Under the child support statutes and rule of most states, a child support obligor whose child receives Social Security “child’s benefits” resulting from the obligor’s own entitlement to Social Security retirement or disability benefits is entitled to a dollar for dollar credit against the obligor’s support obligation.
For example, under Oregon law, ORS 25.275(4), "The child support obligation to be paid by the obligor and determined under the formula described in subsection (1) of this section * * * may be reduced dollar for dollar in consideration of any Social Security * * * benefits paid to the child [or to the child’s representative payee], as a result of the obligor’s disability or retirement."
http://www.leg.state.or.us/ors/025.html
Pursuant to the Oregon Child Support Guidelines, OAR 137-050-0405, the amount of the monthly Social Security child’s benefit received by the child (or on behalf of the child) is added to the gross income of the parent for whom the disability or retirement benefit is paid. This applies to either “Parent A” or “Parent B” or both. Then, if the Social Security child’s benefit is paid on behalf of Parent B and is received by Parent A as a representative payee for the child, the amount of the benefit will be subtracted from Parent B’s net child support obligation as calculated pursuant to OAR 137-050-0330. Stated differently, if the child’s benefit is received because of Parent A’s own disability or retirement, the benefit amount will be included in Parent A’s income but will not affect the child support obligation. But if the child’s benefit is received by Parent A because of Parent B’s disability or retirement, the benefit amount will be included in Parent B’s income and subtracted dollar for dollar from Parent B’s child support obligation.
http://www.dcs.state.or.us/oregon_admin_rules/child_support_rules/050_0405.pdf
The underlying reasoning is that the Social Security benefit paid to the child is part of the Social Security retirement and disability insurance plan to which the insured worker made contributions throughout his/her working years. Theoretically, a parent supports his/her child with income (money) derived from employment or other labor. When the parent retires or becomes disabled, the employment income that was used by the parent to support the child is no longer available (because it no longer exists). The Social Security “insurance” benefit then kicks-in to fill the void and allow the parent’s obligation to continue to be fulfilled even though the parent no longer has employment income with which to do so. In essence, the Social Security Administration (like any other insurance company) pays the insured’s obligation on behalf of the insured. This is not intended to be “extra money” on top of the child support; rather, the “insurance dollars” simply replace the “employment dollars” so as to allow for the support to continue. Thus the dollar-for-dollar credit that is allowed by ORS 25.275(4).)
A child’s receipt of “child’s benefits” may also effect proceedings seeking modification of child support obligations under ORS 107.135. Specifically, ORS 107.135(4) provides as follows (in relevant part):
"ORS 107.135(4). In considering under this section whether a change in circumstances exists sufficient for the court to reconsider spousal or child support provisions of a judgment, the following provisions apply:
(a) The court or administrator, as defined in ORS 25.010, shall consider income opportunities and benefits of the respective parties from all sources, including but not limited to: * * * Social Security benefits paid to a child, or to a representative payee administering the funds for the child’s use and benefit, as a result of the obligor’s disability or retirement if the benefits were not previously considered in the child support order."
Conclusion
It is hoped that the foregoing summary explanation and discussion will enlighten the reader’s understanding as to the difference between Social Security benefits and “SSI” benefits, and make future discussions that employ these terms more accurate and more meaningful.
============================
LAWRENCE D. GORIN
Attorney at Law
521 S.W. Clay St., Suite 205
Portland, Oregon 97201
Phone: 503-224-8884
Fax: 503-226-1321
E-mail: LDGorin@pcez.com
http://www.divorcesource.com/OR/pages/ldgorin.html
http://ldgorin.justia.net/index.html
Social Security, SSI and Child Support
© Lawrence D. Gorin, Attorney at Law, Portland, Oregon
Introduction
All too often, it seems, references to “social security” and “SSI” are used in the same breath, without any distinction. Yet the terms refer to two separate and very distinct federal programs. Problems and confusion arise when the terms are unthinkingly used interchangeably in connection with discussions regarding child support. Lawyers need to be cognizant of the distinctions. The purpose of this article is to advance that goal.
Social Security benefits vs. SSI benefits
“Social Security,” as that term is commonly used, refers to the federal “Old Age, Survivors and Disability Insurance” (OASDI) program the provides retirement benefits, life insurance benefits and disability insurance benefits for insured workers (and their qualifying dependents and survivors). The Social Security program is funded by FICA (Federal Insurance Contributions Act) payroll taxes withheld from employee wages and the matching contributions made by employers. Title II (42 USC § 201 et seq) of the Social Security Act comprises the enabling federal legislation.
See “Social Security: A Simple Concept”
http://www.ssa.gov/pubs/10024.html#simpleconcept
“SSI” refers to the Supplemental Security Income program, which is a “needs-based” program for certain otherwise qualifying individuals who are old, blind or disabled. Although the SSI program is administered by the federal Social Security Administration (SSA), it is NOT part of the Social Security OASDI program itself. SSI money comes from congressional appropriations taken from general tax revenues, not from the Social Security payroll taxes that workers pay via FICA withholding. In essence, SSI is a federally operated low-income (or no-income) welfare program for qualifying persons based on age and physical condition, coupled with financial circumstances. Title XVI (42 USC § 1601 et seq) of the Social Security Act comprises the enabling federal legislation.
See “Supplemental Security Income (SSI) - Overview”
http://www.ssa.gov/ssi/text-over-ussi.htm
In contrast to SSI payments that are paid based on financial need, Social Security insurance benefits are paid to insured workers and their qualifying dependents and survivors, without regard to need. Retirement benefits are available commencing at age 62. Disability insurance benefits may paid whenever the insured worker becomes disabled. And upon the death of an insured worker, “survivor’s insurance benefits” are payable to qualifying surviving spouses and dependents of the deceased worker. All of these benefits are paid without regard to any consideration of individual “:need.”
Social Security “child’s insurance benefits”
Under the Social Security program, when an insured worker who is a parent retires, dies or becomes disabled, and has a qualifying minor child, “child’s insurance benefits” are available. In the case of a parent’s retirement or disability, the resulting benefit available to the parent’s child is paid in addition to the parent’s own retirement or disability benefit, so that the parent’s own Social Security benefit continues to be paid in full, without any reduction.
To qualify for Social Security “child’s benefits,” the insured worker’s child must be unmarried and either (1) younger than 18 or (2) younger than 19 and a full-time secondary school student. (A child who is age 18 or over and who became disabled before age 22 and who continues to be disabled is also entitled to a child’s benefit based on the parent’s retirement benefit entitlement.)
The Social Security “child’s benefit” resulting from a parent’s retirement or disability is an amount equal to one-half (50%) of the retired or disabled worker’s primary Social Security insurance amount. Note, however, that there is a limit to the amount of money that can be paid to a family. The family maximum payment is determined as part of every Social Security benefit computation and can be from 150% to 180% of the parent’s full benefit amount. If the total amount payable to all family members exceeds this limit, each person’s benefit is reduced proportionately (except the parent’s) until the total equals the maximum allowable amount.
For the surviving child of a deceased worker, the “surviving child’s Social Security benefit” is 75% of the deceased worker’s primary Social Security insurance amount. Also, when a deceased worker’s child is under age 16 and is in the custody and care of the deceased worker’s surviving spouse (or the deceased worker’s former spouse), a “surviving parent’s insurance benefit” is available. This benefit, which is 75% of the deceased parent’s primary Social Security insurance amount, is paid in addition to the child’s benefit.
Application for the child’s social security benefit, and entitlement to receipt thereof, does not require the consent of the retired or disabled worker. For example, when parents are divorced and the noncustodial parent is entitled to receive Social Security retirement or disability benefits, the custodial parent may apply to SSA on behalf of the child for the “child’s Social Security insurance benefit” without need of any consent from or involvement of the noncustodial parent. This sometimes results in the noncustodial parent being totally unaware that the child is receiving When Social Security child’s insurance benefits are paid, the check is usually paid to a “representative payee” for the child, most often being the child’s custodial parent (or other legal custodian).
See “Benefits for Children”
http://www.ssa.gov/pubs/10085.html
Effect of Social Security and SSI on child support obligations
As may be inferred from the label used, Supplemental Security Income (SSI) is designed and intended to SUPPLEMENT the recipient’s income, NOT to replace the income. If a disabled child is eligible for and is receiving SSI, the SSI money does not abrogate a parent’s legal duty and obligation to support his/her child. The legal duty of the parent to support the child continues. The SSI money is intended to SUPPLEMENT the financial resources otherwise available to the SSI recipient, not to replace those resources. Consequently, in the absence of any change in the parent’s income, it would be inappropriate to adjust the amount of a parent’s court-ordered child support obligation simply because of the disabled child’s receipt of an SSI benefit.
Under the child support statutes and rule of most states, a child support obligor whose child receives Social Security “child’s benefits” resulting from the obligor’s own entitlement to Social Security retirement or disability benefits is entitled to a dollar for dollar credit against the obligor’s support obligation.
For example, under Oregon law, ORS 25.275(4), "The child support obligation to be paid by the obligor and determined under the formula described in subsection (1) of this section * * * may be reduced dollar for dollar in consideration of any Social Security * * * benefits paid to the child [or to the child’s representative payee], as a result of the obligor’s disability or retirement."
http://www.leg.state.or.us/ors/025.html
Pursuant to the Oregon Child Support Guidelines, OAR 137-050-0405, the amount of the monthly Social Security child’s benefit received by the child (or on behalf of the child) is added to the gross income of the parent for whom the disability or retirement benefit is paid. This applies to either “Parent A” or “Parent B” or both. Then, if the Social Security child’s benefit is paid on behalf of Parent B and is received by Parent A as a representative payee for the child, the amount of the benefit will be subtracted from Parent B’s net child support obligation as calculated pursuant to OAR 137-050-0330. Stated differently, if the child’s benefit is received because of Parent A’s own disability or retirement, the benefit amount will be included in Parent A’s income but will not affect the child support obligation. But if the child’s benefit is received by Parent A because of Parent B’s disability or retirement, the benefit amount will be included in Parent B’s income and subtracted dollar for dollar from Parent B’s child support obligation.
http://www.dcs.state.or.us/oregon_admin_rules/child_support_rules/050_0405.pdf
The underlying reasoning is that the Social Security benefit paid to the child is part of the Social Security retirement and disability insurance plan to which the insured worker made contributions throughout his/her working years. Theoretically, a parent supports his/her child with income (money) derived from employment or other labor. When the parent retires or becomes disabled, the employment income that was used by the parent to support the child is no longer available (because it no longer exists). The Social Security “insurance” benefit then kicks-in to fill the void and allow the parent’s obligation to continue to be fulfilled even though the parent no longer has employment income with which to do so. In essence, the Social Security Administration (like any other insurance company) pays the insured’s obligation on behalf of the insured. This is not intended to be “extra money” on top of the child support; rather, the “insurance dollars” simply replace the “employment dollars” so as to allow for the support to continue. Thus the dollar-for-dollar credit that is allowed by ORS 25.275(4).)
A child’s receipt of “child’s benefits” may also effect proceedings seeking modification of child support obligations under ORS 107.135. Specifically, ORS 107.135(4) provides as follows (in relevant part):
"ORS 107.135(4). In considering under this section whether a change in circumstances exists sufficient for the court to reconsider spousal or child support provisions of a judgment, the following provisions apply:
(a) The court or administrator, as defined in ORS 25.010, shall consider income opportunities and benefits of the respective parties from all sources, including but not limited to: * * * Social Security benefits paid to a child, or to a representative payee administering the funds for the child’s use and benefit, as a result of the obligor’s disability or retirement if the benefits were not previously considered in the child support order."
Conclusion
It is hoped that the foregoing summary explanation and discussion will enlighten the reader’s understanding as to the difference between Social Security benefits and “SSI” benefits, and make future discussions that employ these terms more accurate and more meaningful.
============================
LAWRENCE D. GORIN
Attorney at Law
521 S.W. Clay St., Suite 205
Portland, Oregon 97201
Phone: 503-224-8884
Fax: 503-226-1321
E-mail: LDGorin@pcez.com
http://www.divorcesource.com/OR/pages/ldgorin.html
http://ldgorin.justia.net/index.html