467

871

49,074

1965 estimate

307,204 211

27,000 16,162,440

1964 actual

1965 estimate

479

878

1,308 15,253,000

402,636 399,400

51,352

1965 estimate

1966 estimate

17,552,554

1966 estimate

493

483

850

1,328 16,030,000

Proposed for separate transmittal:

FEDERAL OLD-AGE AND SURVIVORS INSURANCE TRUST FUND

Program and Financing (in thousands of dollars)

44,507

331,626 358,092 5,237 12,534 15,340,931 16,043,280 | 16,859,287

411,000

1966 estimate

1,858,000

1964 actual

U.S. securities (par).

Gain from premium or discount

on investments.

Under proposed legislation, 1966.-Improvements in the Old-Age and Survivors Insurance program will provide a 7% benefit increase to beneficiaries, effective as of January 1, 1965, and extend coverage to certain groups and types of earnings not previously under the system. These improvements, along with the hospital insurance program, will be financed by an increase in the covered wage base from $4,800 to $5,600 and in the combined tax rate from the scheduled 8.25% to 8.50%, effective January 1, 1966. Notwithstanding the receipts from the proposed reimbursement for military service credits, there is a slight decline in receipts due to a lower portion of the total tax being allocated to the OASI trust fund.

SOCIAL SECURITY ADMINISTRATION FEDERAL DISABILITY INSURANCE TRUST FUND Program and Financing (in thousands of dollars)

1964

actual

1,251,207 70,199

19,139

1,340,545

1965 estimate

-116,468 -2,277,967

723

1966 estimate

-2,134,000

1965 estimate

1,416,000 82,173

19,800

1,517,973

-276,000

-125,478 -2,140,925

2,416

56,000 -332,000

1,858,000 1,858,000

1966 estimate

Identification code 09-30-8007-0-7-654

Financing Continued

24 Unobligated balance available,

end of year:

Treasury balance....
U.S. securities (par).

Gain from premium or discount
on investments..

Program and Financing (in thousands of dollars)-Continued

1964 actual

Unexpended balance brought forward: Cash...

125,478 2,140,925

-2,416

1,210,821

Cash income during year: Taxes:

U.S. securities (par).

Gain from premium or discount on investments....

1. Benefit payments.-The Social Security Act provides disability insurance benefits for certain disabled individuals and their dependents. Under current law an amount equal to one-half of 1% of wages paid and three-eighths of 1% of self-employment income is allocated to this fund for benefit payments and administrative expenses. The excess of income over outgo and annual interest are invested in Government securities,

1965 estimate

1,340,545 1,517,973 1,593,446 1,340,545 1,517,973 1,593,446

2. Administration.-The Secretary of Health, Education, and Welfare determines, at the end of each year that portion of the administrative expenses of the Department of Health, Education, and Welfare which is a proper charge to this fund. The amount shown herein for the administrative expenses includes interest on the unpaid charges and is subject to further refinement of the proc esses for allocating costs between the Federal old-age and survivors insurance trust fund and the Federal disability insurance trust fund (42 U.S.C. 401).

Annual payments are made between this account and the railroad retirement account so as to place these funds in the same position in which they would have been if railroad employment had been included under social security coverage (45 U.S.C. 228E).

The status of the trust fund, including proposed legis lation, is as follows (in thousands of dollars):

Balance of fund, start of year.... 2,393,712

1966 estimate

125,511 127,415 1,844,911

1,506,726

-2,342 -2,214

Appropriated.

Refund of taxes.

Deposits by States...

Interest on investments...

Proposed increase in tax income.. Proposed increase in payments for military service credits..

Total annual income.

1,222,065 1,257,293

1964 actual 1965 estimate 1966 estimate

125,511

116,468 125,478 2,277,967 2,140,925 1,844,911

-723 -2,416 -2,342

2,263,987 1,968,080