Public Date enacted Law No. 89-97---- 9. Modification of 10. Payment to trust The new retirement test permits an annual earned income of $1,500 instead of $1,200 without a loss of benefits. The range for making a $1 reduction in benefits for each $2 in earnings is raised from $1,200 to $1,700 to $1,500 to $2,700. Above $2,700 benefits are reduced by $1 for each $1 of earnings. This provision is effective for taxable years ending after 1965. This change will result in additional monthly benefit payments of $325,000,000 to 750,000 persons on the benefit rolls. Reimbursement to the trust funds from the general funds for benefits and administrative costs after Sept. 1, 1950, plus future costs has been authorized in Public Law 89-97 to be made over a 50-year period ending June 30, 2015. An appropriation request for $105,000,000 for fiscal year 1967 has been submitted in accordance with this provision of the amendments. Noncontributory credits for military service during the period Sept. 16, 1940, to Jan. 1, 1957, were granted for social security purposes. The trust funds have been reimbursed for benefits and administrative costs incurred up to Sept. 1, 1950. Training of professional personnel for the care of crippled children. Grants to States for public assistance: Increased Federal financial participation. Federal participation in payments for aged in institutions for mental illness and tuberculosis. Earned income exempted from consideration in determining need. Federal participation in $35,000,000. $5,000,000. Estimated cost in 1967 of new authorizations: $300,400,000. Authorizes average monthly increase in assistance payments of about $2.50 for needy aged, blind, and disabled recipients and $1.25 for AFDC recipients. Cost in 1967 estimated at $150,000,000. Authorizes Federal participation in public assistance payments for aged in institutions for mental illness and tuberculosis. To provide assistance for an estimated 45,000 aged persons, this amendment is expected to cost $75,000,000 in 1967. Authorizes exemption of earned income under certain conditions in determining need in programs for the aged, disabled, and dependent children. Estimated to cost $13,000,000 in 1967. Authorizes Federal participation estimated to cost $2,000,000 in 1967. (1) Authorizes expanded medical care grant-inaid program, and authorizes more liberal Federal financing. The estimated cost of this amendment in 1967 is $240,000,000. (2) In addition, it is estimated that $37,400,000 of $217,000,000 in released funds will be used in 1967 to improve medical care for the aged in States not adopting title XIX. (The released funds are those which States would have used for medical care were it not for the coverage of certain of these expenses by the new health insurance for the aged program (Medicare).) |