SSA Benefit Statements: Well Received by the Public But Difficult to
Comprehend (Letter Report, 12/05/96, GAO/HEHS-97-19).

Pursuant to a congressional request, GAO reviewed the Social Security
Administration's (SSA) overall progress in issuing the Personal Earnings
and Benefits Estimate Statement (PEBES), focusing on: (1) whether the
PEBES benefit estimates are reasonable; (2) what SSA has done to improve
the statement; (3) the extent to which the statement communicates its
goals and information clearly; (4) SSA plans to revise the statement
further; and (5) actions that GAO believes will improve the statement.

GAO found that: (1) the methods and assumptions used by SSA for
estimating future retirement benefits are consistent with those used by
private and public pension plan sponsors; (2) the public feels that the
PEBES can be a valuable tool for retirement planning; (3) although SSA
has taken steps to improve PEBES, it fails to communicate clearly the
complex information readers need to understand SSA programs and
benefits, partly because the design and organization of the statement
make it difficult for the reader to locate and understand important
information; (4) readers are confused by several important explanations,
such as who in their family is eligible for benefits; (5) SSA is
considering redesigning PEBES, but only if the redesign results in
reduced printing costs; (6) this approach overlooks hidden costs, such
as the workload generated by public inquiries when people do not
understand the statement, and the possibility that a poorly designed
statement will undermine, rather than improve, public confidence; and
(7) active leadership from SSA senior managers will be needed to ensure
the success of this important initiative.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-97-19
     TITLE:  SSA Benefit Statements: Well Received by the Public But 
             Difficult to Comprehend
      DATE:  12/05/96
   SUBJECT:  Federal social security programs
             Information dissemination operations
             Social security benefits
             Public relations
             Forms (documents)
             Retirement benefits
IDENTIFIER:  SSA Personal Earnings and Benefits Estimate Statement
             Social Security Program
             
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Cover
================================================================ COVER


Report to the Chairman, Subcommittee on Social Security, Committee on
Ways and Means, House of Representatives

December 1996

SSA BENEFIT STATEMENTS - WELL
RECEIVED BY THE PUBLIC BUT
DIFFICULT TO COMPREHEND

GAO/HEHS-97-19

Social Security Benefit Statements

(105939)


Abbreviations
=============================================================== ABBREV

  PEBES - Personal Earnings and Benefit Estimate Statement
  SSA - Social Security Administration

Letter
=============================================================== LETTER


B-275128

December 5, 1996

The Honorable Jim Bunning
Chairman, Subcommittee on Social Security
Committee on Ways and Means
House of Representatives

Dear Mr.  Chairman: 

Social Security, the nation's largest federal program, provides
benefits to retired and disabled workers and their dependents and
survivors.\1 Public confidence in Social Security has been low for a
number of years, in part because the public has lacked an
understanding of Social Security programs.  Recognizing the need to
provide individuals with better information about Social Security,
the Congress enacted legislation in 1989 requiring that the public be
provided with regular statements about their Social Security
benefits.  Both the sponsor of the legislation and officials from the
Social Security Administration (SSA) hoped that providing workers
with this valuable information would help rebuild public confidence
in Social Security and supply workers with a useful financial
planning tool. 

As required by the Congress, in 1995 SSA began sending the
statements, called Personal Earnings and Benefit Estimate Statements
(PEBES), automatically to workers who had reached age 60.  Starting
in fiscal year 2000, the PEBES will reach an estimated 123 million
people each year--almost every U.S.  worker aged 25 and older.  These
six-page statements supply workers with information about their
yearly earnings on record at SSA; information about their eligibility
for Social Security retirement, survivor, and disability benefits;
and estimates of these benefits.  The PEBES also explains Social
Security programs and benefits.\2 SSA projects that this effort will
cost more than $80 million in fiscal year 2000 alone. 

Concerned about the clarity and usefulness of these statements, you
asked us to look at SSA's overall progress in issuing the PEBES.  In
testimony before the Subcommittee on September 12, 1996, we discussed
how effectively the PEBES conveys information to the public.\3 This
report, at your request, expands on that testimony.  Specifically, we
focus on whether the PEBES benefit estimates are reasonable, what SSA
has done to improve the statement, the extent to which the PEBES
communicates its goals and information clearly, SSA's plans to revise
the statement further, and actions we believe will improve the
statement.  To develop this information, we reviewed SSA's
documentation on the PEBES and met with SSA officials.  We also met
with SSA staff who respond to public inquiries on the PEBES toll-free
telephone number and observed them as they answered almost 100
telephone calls.  In addition, we reviewed selected public- and
private-sector pension benefit statements and discussed the PEBES
with recognized experts in the field.  Finally, we asked an expert in
document design and communication to review and provide comments on
the PEBES.  We conducted our work from September 1995 to September
1996 in accordance with generally accepted government auditing
standards. 


--------------------
\1 The Social Security program has two parts:  Old Age and Survivors
Insurance and Disability Insurance. 

\2 App.  I contains a copy of a 1996 PEBES, which has been slightly
reduced to fit on the page. 

\3 SSA Benefit Statements:  Statements Are Well Received by the
Public but Difficult to Comprehend (GAO/T-HEHS-96-210, Sept.  12,
1996). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

SSA officials selected the assumptions and method they use for
estimating future retirement benefits to be consistent with those
used by private and public pension plan sponsors, and experts agree
that SSA's approach is generally reasonable.  Moreover, SSA has taken
steps to improve the PEBES, and feedback indicates that, overall, the
public feels that the statement can be a valuable tool for retirement
planning.  However, our work shows that the statement fails to
communicate clearly the complex information readers need to
understand SSA's programs and benefits, in part, because the design
and organization of the statement make it difficult for the reader to
locate and understand important information.  Feedback from the
public on the statement also indicates that readers are confused by
several important explanations, such as who in their family is also
eligible for benefits and how much these family members might
receive. 

SSA is considering redesigning the PEBES, but only if the redesign
results in reduced printing costs.  This approach overlooks hidden
costs, such as (1) the workload generated by public inquiries when
people do not understand the statement and (2) the possibility that a
poorly designed statement can undermine, rather than improve, public
confidence.  Issuing these statements is a significant initiative for
SSA, and the agency should take steps now to redesign the statement
to more effectively present the PEBES information.  Active leadership
from SSA's senior managers, however, will be needed to ensure the
success of this important initiative. 


   BACKGROUND
------------------------------------------------------------ Letter :2

Since the Social Security Act became law in 1935, workers have had
the right to review their earnings records on file at SSA to ensure
that they are correct.\4

In 1988, SSA introduced the PEBES to better enable workers who
requested such information to review their earnings records and
obtain benefit estimates.  According to SSA, fewer than 2 percent of
the workers who pay Social Security taxes request these statements
each year. 

The PEBES legislation\5 requires SSA to begin sending the PEBES to
eligible workers\6 who have not requested a statement according to
the schedule that appears in table 1.  SSA plans to mail some
statements even sooner than required and, by fiscal year 2000, will
have mailed statements automatically to over 70 million workers. 



                          Table 1
          
             Schedule for Distributing Benefit
                         Statements

                    Eligible            Volume estimated
Fiscal year         individuals         by SSA
------------------  ------------------  ------------------
1995                Aged 60 and over    6.7 million\a

1996-1999           Turning 60 during   1.6 to 1.8 million
                    the year            annually

2000+               Aged 25 and older   123 million
                                        annually
----------------------------------------------------------
\a This is SSA's total of mandated statements actually mailed in
1995. 

By providing these statements, SSA's goals are to (1) better inform
the public of benefits available under SSA's programs, (2) assist
workers in planning for their financial future, and (3) better ensure
that Social Security earnings records are complete and accurate. 
Accurate earnings records are important because a worker's
eligibility for Social Security benefits and the size of the benefit
itself depend on the worker's earnings record.  Early identification
and correction of errors in earnings records can benefit both SSA and
the public by reducing the time and cost required to correct earnings
records years later when an individual files for retirement benefits. 

Issuing the PEBES is a significant initiative for SSA.  The projected
cost of $80 million in fiscal year 2000 includes $56 million for
production costs, such as printing and mailing the statement, and $24
million for personnel costs.  SSA estimates that 608 staff-years will
be required to handle the PEBES workload in fiscal year 2000:  SSA
staff are needed to prepare the statements, investigate discrepancies
in workers' earnings records, and respond to public inquiries (when
individuals receive a PEBES, they are instructed to call SSA if they
have questions or find errors in the earnings record contained in the
statement). 


--------------------
\4 Overall, the chance of SSA's incorrectly recording a wage is
small.  According to SSA's Accountability Report for Fiscal Year
1995, 98.7 percent of reported earnings are posted accurately to an
individual's record.  However, even this accuracy rate of almost 99
percent results in over 2 million earnings each year that cannot be
linked to specific individuals' records. 

\5 P.L.  101-239 and P.L.  101-508. 

\6 SSA must send a PEBES to those who are at least 25 years old, have
a Social Security number, have wages or net earnings from
self-employment, are not receiving Social Security benefits, and have
a current address obtainable by SSA. 


   SSA'S APPROACH TO CALCULATING
   RETIREMENT BENEFIT ESTIMATES IS
   REASONABLE
------------------------------------------------------------ Letter :3

The benefit estimates provided in the PEBES are intended to help
workers plan for their financial future.  To estimate retirement
benefits, SSA makes certain assumptions about an individual's future
employment and earnings.  SSA assumes, for example, that individuals
will continue to work until they retire\7 and that individuals'
future earnings will remain about the same as their most recent
earnings.\8 SSA chose this overall approach to calculating benefit
estimates because it is consistent with approaches used by private
and public pension plan sponsors to prepare benefit estimates,
according to SSA officials.  The experts we talked with generally
agreed that SSA's approach for estimating future retirement benefits
is reasonable. 

In estimating retirement benefits, SSA does not, however, vary its
methodology to take into consideration certain special circumstances
that could affect a worker's actual retirement benefit.  As a result,
while the PEBES estimates are reasonable for most workers, they may
over- or understate benefits for certain individuals.  For example,
the PEBES estimate is overstated for federal workers who are eligible
for both Civil Service Retirement System and Social Security
benefits.  For these workers, the law requires a reduction in their
Social Security retirement or disability benefits according to a
specific formula.\9 In 1996, this reduction may be as much as $219
per month; however, the PEBES benefit estimates do not reflect this
reduction. 

SSA officials told us that it would be too difficult and costly to
take such special circumstances into consideration when estimating
benefits.  Rather, SSA has included in the statements descriptions of
certain circumstances that may result in workers' receiving Social
Security benefits that are greater or less than the estimated amount. 
Our work shows that it would be very difficult for SSA to modify its
PEBES benefit estimates to reflect these circumstances. 


--------------------
\7 The PEBES provides retirement benefit estimates based on three
retirement ages--62 (reduced benefits), 65 (full benefits), and 70. 

\8 SSA uses the most recent earnings on record for either of the 2
years before the year the PEBES is issued.  If there are no earnings
on record for either year, SSA assumes zero earnings for current and
future years.  Also, individuals requesting a PEBES can provide their
own estimates of their age at retirement and their future earnings. 

\9 This reduction, known as the Windfall Elimination Provision, was
enacted in 1983.  Its purpose is to remove an unintended advantage in
the way benefits are calculated for workers who qualify for Social
Security benefits but have spent most of their careers working in
jobs that are not covered by Social Security. 


   SSA HAS TAKEN STEPS TO ENHANCE
   THE PEBES; PUBLIC REACTION HAS
   BEEN POSITIVE
------------------------------------------------------------ Letter :4

Since the PEBES was first developed, SSA has conducted several
small-scale and national surveys to assess the general public's
reaction to receiving an unsolicited PEBES.  In addition, SSA has
conducted a series of focus groups with the public and SSA employees
to elicit their opinions of the statement and to determine what parts
of it they did and did not understand. 

In response to this feedback, SSA revised the statement.  For
example, early statements routinely provided benefit estimates for
age 65, the earliest age at which workers could retire and receive
their full Social Security retirement benefit,\10 and for delayed
retirement at age 70.  When SSA learned that many people were
interested in the effect of early retirement on their benefits, SSA
added an estimate for retirement at age 62.  In addition, as it
revised the statement, SSA applied a computerized readability
formula\11 to it and concluded that the PEBES could be understood by
those who read at a seventh grade level, which is consistent with
SSA's standard for agency notices. 

Overall public reaction to receiving an unsolicited PEBES has been
consistently favorable.  In a nationally representative survey
conducted during a 1994 pilot test, the majority of the respondents
indicated they were glad to receive their statements.\12 In addition,
95 percent of the respondents said the information provided was
helpful to their families.  Overall, older individuals reacted more
favorably to receiving a PEBES than did younger individuals.  In
addition, SSA representatives who answer the toll-free telephone
calls from the public have stated that most callers say they are
pleased that they received a PEBES and that the information is useful
to them for financial planning. 


--------------------
\10 Individuals born in 1937 or earlier can retire at age 65 and
receive their full benefit.  The age at which individuals born after
1937 can retire and receive their full benefit gradually increases,
up to 67 for those born in 1960 and later. 

\11 Readability formulas are based on mathematical computations that
count the syllables, words, and sentences in paragraphs to determine
their level of reading difficulty. 

\12 As of October 17, 1996, the results of SSA's most recent public
opinion survey, conducted in 1995, had not yet been released. 


   CLEARLY COMMUNICATING SSA
   PROGRAM AND BENEFIT INFORMATION
   COULD FURTHER ENHANCE THE
   PEBES' VALUE
------------------------------------------------------------ Letter :5

Although SSA has taken steps to improve the PEBES, we found that the
current statement still provides too much information, which may
overwhelm the reader, and it presents the information in a way that
undermines its usefulness.  These weaknesses are attributable, in
part, to the process SSA used to develop the PEBES.  Additional
information and expanded explanations have made the statement longer,
but some explanations still confuse readers.  Moreover, SSA has not
collected detailed information from its front-line workers on the
public's response to the PEBES. 

Research suggests that, in general, people find forms, notices, and
statements difficult to use and understand.  For this reason, many
people may approach a PEBES-like statement "with fear, frustration,
insecurity, and hesitation."\13 To overcome this challenge, the
design expert we consulted suggested that such statements include the
following: 

  -- An obvious purpose:  Readers need to know immediately why they
     received the statement, what information it contains, and what
     they are expected to do with the information. 

  -- An attractive and functional design and organization:  The
     statement should look easy to read, the sections should be
     clearly labeled, and the organization should be evident at a
     glance.  When readers need explanations to understand complex
     information, the explanations should appear with the
     information. 

  -- Easy-to-understand explanations:  Readers need explanations of
     complex programs and benefits in the simplest and most
     straightforward language possible. 


--------------------
\13 Carolyn Boccella Bagin, A Review of Your Personal Earnings and
Benefit Estimate Statement (Rockville, Md.:  July 1996), p.  6. 


      COMMISSIONER'S MESSAGE DOES
      NOT EFFECTIVELY CONVEY
      PURPOSE
---------------------------------------------------------- Letter :5.1

In the 1996 PEBES, the message from the Commissioner of Social
Security does not clearly explain why SSA is providing the statement. 
Although the message does include information on the statement's
contents and the need for individuals to review the earnings recorded
by SSA, its presentation is uninviting, according to the design
expert we consulted.  More specifically, the type is too dense; the
lines are too long; white space is lacking; and the key points are
not highlighted.  On the basis of these findings, SSA officials told
us they have revised the Commissioner's message for the 1997 PEBES to
make it shorter and less complex. 

The 1996 message also attempts to reassure people that the Social
Security program will be there when they need it with the following
reference to the system's solvency:\14

     "The Social Security Board of Trustees projects that the system
     will continue to have adequate resources to pay benefits in full
     for more than 30 years.  This means that there is time for the
     Congress to make changes needed to safeguard the program's
     financial future.  I am confident these actions will result in
     the continuation of the American public's widespread support for
     Social Security."

Some participants in SSA focus groups, however, thought the message
suggested that the resources would not necessarily be there after 30
years.  For example, one participant in a 1994 focus group who
reviewed a similar Commissioner's message said, "...[the] first thing
I think about when I read the message is, [Social Security] is not
going to be there for me." The focus group results suggest that the
future solvency of the Social Security system may be too complex a
topic to address adequately in the PEBES. 


--------------------
\14 SSA has included similar language about the program's solvency in
its draft 1997 Commissioner's message. 


      DESIGN AND ORGANIZATION ARE
      NOT USER FRIENDLY
---------------------------------------------------------- Letter :5.2

Comments from SSA's public focus groups, SSA employees, and benefit
experts indicate that the statement contains too much information and
is too complex.  In a 1994 focus group summary, for example, SSA
reported that younger workers aged 25 to 35 wanted "a much simplified
form--a single page--with estimated benefits and how much in taxes
they paid into the system with the remainder of the information put
in a pamphlet for future reference." Moreover, given the length and
complexity of the current statement, some focus group participants
and benefit experts suggested that SSA add an index or a table of
contents to help readers navigate the statement. 

SSA has not used the best layout and design to help the reader
identify the most important points and move easily from one section
to the next.  The structure of the statement is not clear at a
glance.  Readers cannot immediately grasp what the sections of the
statement are and in which order they should read them, according to
the design expert with whom we consulted.  The statement lacks
effective use of features such as bulleting and highlighting, which
would make it more user friendly. 

In addition, the PEBES is disorganized:  information does not appear
where needed.  The statement has a patchwork of explanations
scattered throughout, requiring readers to flip from one page to
another to find needed information.  For example, page two begins by
referring the reader to page four, and page three contains six
references to information on other pages.  Furthermore, to understand
how the benefit estimates were developed and any limitations to these
estimates, a PEBES recipient must read explanations spread over five
pages.  SSA representatives who answer the PEBES toll-free telephone
number told us that callers frequently fail to realize that the
answers to their questions can be found within the document.  In
fact, we observed the representatives telling callers to turn to a
certain page in the statement to answer their questions. 

With benefit estimate explanations spread over several pages,
individuals may miss important information.  For example, the PEBES
benefit estimate appears on page three; the explanation that the
benefit estimate may be overstated for certain federal workers is not
found until the bottom of page five.  Without fully reviewing this
additional information, a reader may not realize that the PEBES
benefit estimate could be overstated. 

In addition, some of the explanations needed to fully understand
information in the PEBES are located within the answer to a question
that the PEBES recipient may not read.  For example, the statement
explains that the retirement benefit is reflected in today's dollars. 
This explanation, however, is located in the answer to the following
question:  "When I requested a statement like this several years ago,
my retirement benefit was higher.  What happened?" Readers skipping
the answer to this question would not know key information about the
value of their estimate in today's economy. 


      EXPLANATIONS ARE NOT ALWAYS
      EASY TO UNDERSTAND
---------------------------------------------------------- Letter :5.3

Because the PEBES addresses complex programs and issues, explaining
these points in simple, straightforward language is challenging. 
Although SSA made changes to improve the explanation of work credits,
for example, many people still do not understand what these credits
are, the relevance of the credits to their benefits, and how the
credits are accumulated.\15

The public also frequently asks questions about the PEBES'
explanation of family benefits.\16 Family benefits are difficult to
calculate and explain because their amounts are dependent on a number
of factors, such as the age of the spouse and the spouse's
eligibility for benefits on his or her own work record.  Informing
the public about family benefits, however, is especially important: 
a 1995 survey revealed that as much as 40 percent of the public is
unaware of these benefits. 


--------------------
\15 These credits are earned by working for employers that pay taxes
to the Social Security system.  The minimum number of credits needed
varies, depending on the type of benefit and the age of the worker. 

\16 SSA uses the term "family benefits" to discuss benefits paid to a
worker's spouse or young children when the worker is retired or
disabled. 


      WEAKNESSES OF THE PEBES ARE
      LINKED TO SSA'S APPROACH
---------------------------------------------------------- Letter :5.4

A team of representatives from a cross section of SSA offices governs
SSA's decisions on the PEBES' development, testing, and
implementation.  The team has revised and expanded the statement in
response to feedback on individual problems.  The design expert we
consulted observed that the current statement "appears to have been
the result of too many authors, without a designated person to review
the entire piece from the eyes of the readers.  It seems to have
developed over time, piecemeal .  .  .."\17

Although SSA officials have obtained the public's feedback, they have
missed some key opportunities along the way to improve the statement. 
While SSA conducted tests to ensure that the PEBES could be read at a
seventh grade level, it has not conducted formal comprehension
tests.\18 For example, SSA could have administered either oral or
written tests to a sample of readers to determine whether they
actually understood SSA's explanations of certain complex issues. 
These tests would have provided SSA with quantifiable, objective
information to use in revising the statement.  SSA has also failed to
take advantage of information from its workers who answer the
public's questions about the PEBES every day.  SSA currently has
front-line workers record the reason people call, but the information
collected does not provide sufficient detail for SSA to understand
the problems people are having with the PEBES. 


--------------------
\17 Bagin, A Review of Your Personal Earnings and Benefit Estimate
Statement, p.  18. 

\18 In a 1988 telephone survey during the PEBES' early development,
SSA asked a few questions to check for reader comprehension.  The
statement has changed significantly since that time, however. 


      NO CONSENSUS EXISTS ON THE
      BEST MODEL FOR THE STATEMENT
---------------------------------------------------------- Letter :5.5

Although the public and benefit experts agree that the current
statement contains too much information, a standard benefit statement
model does not exist within the public or private sector, and there
is no clear consensus on how best to present benefit information. 
The Canadian government chose to use a two-part document when it
began sending out benefit statements in 1985.  The Canada Pension
Plan's one-page statement provides specific individual information,
including the earnings record and benefit estimates.  A separate
brochure details the program explanations.  The first time the Plan
mails the statement, it sends both the one-page individual
information and the detailed brochure; subsequent mailings contain
only the single page with the individual information. 

Although some focus group participants and benefit experts prefer a
two-part format, others believe that all the information should
remain in a single document, fearing that statement recipients will
lose or might not read the separate explanations.  SSA has twice
tested the public's reaction to receiving two separate documents.  On
the basis of a 1987 focus group test, SSA concluded that it needed to
either redesign the explanatory brochure or incorporate the
information into one document.  SSA chose the latter approach.  In a
1994 test, people indicated that they preferred receiving one
document; however, the single document SSA used in the test contained
less information and had a more readable format than the current
PEBES. 


   REDESIGN PLANS DO NOT FULLY
   CONSIDER COSTS
------------------------------------------------------------ Letter :6

SSA, through the Government Printing Office, has awarded a 2-year
contract for printing the statements for fiscal years 1997 and 1998. 
These statements will have the same format as the current PEBES with
only a few wording changes.  SSA is considering a more extensive
redesign of the PEBES for the fiscal year 1999 mailings, which it
will implement only if it will save money on printing costs. 

By focusing on reduced printing costs as the main reason for
redesigning the PEBES, SSA is overlooking the hidden costs of the
statement's existing weaknesses.  For example, if people do not
understand why they got the statement or have questions about
information provided in the statement, they may call or visit SSA,
creating more work for SSA staff.  Furthermore, if the PEBES
frustrates or confuses people, it could undermine public confidence
in SSA and its programs. 

Our work suggests, and experts agree, that the PEBES' value could be
enhanced by several changes.  Yet SSA's redesign team is focusing on
reducing printing costs without considering all of the factors that
would ensure that the PEBES is a cost-effective document. 


   CONCLUSIONS
------------------------------------------------------------ Letter :7

The PEBES initiative is an important step toward better informing the
public about SSA's programs and benefits.  However, extensive
revisions to the PEBES are needed to ensure that the statement
communicates effectively.  To best convey information to the public
about SSA's programs and benefits, the PEBES needs an improved layout
and design, as well as simplified explanations.  SSA will need to
start now to complete these changes before its 1999 redesign target
date, because revising the PEBES will involve time to collect data
and to develop and test alternatives.  SSA can help ensure that the
changes target the most significant weaknesses by systematically
obtaining more detailed feedback from front-line workers.  SSA can
also ensure that the changes clarify the statement by conducting
formal comprehension tests with a sample of future PEBES recipients. 

In addition, SSA could evaluate alternative formats for communicating
the information presented in PEBES.  For example, SSA could present
the Commissioner's message in a separate cover letter accompanying
the statement; alternatively, SSA could consider a two-part option,
similar to the approach of the Canada Pension Plan.  To select the
most cost-effective option, SSA needs to collect and assess
additional cost information on available options and test different
PEBES formats. 

Our work suggests that improving the PEBES will require attention
from SSA's senior leadership.  For example, how best to balance the
public's need for information with the problems resulting from
providing too much information warrants senior management
involvement. 


   RECOMMENDATIONS TO THE
   COMMISSIONER OF SOCIAL SECURITY
------------------------------------------------------------ Letter :8

In order for the PEBES to better convey information to the public
about SSA's programs and benefits, we recommend that SSA revise the
current statement to improve its layout and design and to simplify
explanations.  We also recommend that SSA evaluate and test
alternative formats for communicating the information presented in
the PEBES and the accompanying Commissioner's message. 


   AGENCY COMMENTS
------------------------------------------------------------ Letter :9

We obtained comments on a draft of this report from SSA.  SSA
officials agreed with our conclusions and recommendations and
provided specific information on the steps they plan to take to
improve the PEBES (see app.  II). 


---------------------------------------------------------- Letter :9.1

We are sending copies of this report to the Commissioner of Social
Security and other interested parties.  Copies will also be made
available to others on request.  If you or your staff have any
questions concerning this report, please call me on (202) 512-7215 or
Cynthia Fagnoni, Assistant Director, on (202) 512-7202.  Other major
contributors to this report include Kay Brown, Evaluator-in-Charge;
Hans Bredfeldt, Senior Evaluator; and Nora Landgraf and Elizabeth
Jones, Evaluators. 

Sincerely yours,

Diana S.  Eisenstat
Associate Director, Income Security Issues




(See figure in printed edition.)Appendix I
PERSONAL EARNINGS AND BENEFIT
ESTIMATE STATEMENT
============================================================== Letter 



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)




(See figure in printed edition.)Appendix II
COMMENTS FROM THE SOCIAL SECURITY
ADMINISTRATION
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(See figure in printed edition.)


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