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66-582: The Social Security Amendments of 1983 (Public Law 98-21) provided for the WEP as a means of eliminating the "windfall" of social security benefits received by beneficiaries who also receive a pension based on work not covered by Social Security. The windfall in question refers to the subsidization of the PIA for beneficiaries with lower incomes throughout life. Prior to the institution of the WEP, beneficiaries who paid little into social security but were paid well outside of

132-921: A park and ride lot that adjoins the SSA campus. Due to space constraints and ongoing renovations, many headquarters employees work in leased space throughout the Woodlawn area. Other SSA components are located elsewhere. For example, the headquarters (also known as Central Office) of SSA's Office of Disability Adjudication and Review is located in Falls Church, Virginia . SSA has a network of more than 1,200 community-based field offices. In fiscal year 2019, 43 million individuals visited these field offices to apply for benefits, get an original or replacement Social Security card, or receive other services. Field offices reopened in April 2022, after being closed for two years due to

198-531: A disabled individual who worked in Social Security-covered employment and who has limited income and resources may receive a Social Security disability benefit (due to employment prior to disability) and a partial SSI benefit (due to limited income and resources). SSA refers to these beneficiaries as "concurrent" beneficiaries. The administration of the Medicare program is a responsibility of

264-446: A high level of efficiency. SSA expenses have always been a small fraction of benefits paid. As a percentage of assets, the administration costs are 0.39%. SSA operates its own administrative adjudication system, which has original jurisdiction when claims are denied in part or in full. SSA decisions are issued by Administrative Law Judges and Senior Attorney Adjudicators (supported by about 6,000 staff employees) at locations throughout

330-513: A new federal building planned for a revitalization zone in the center of the Jamaica area of Queens. The move was championed by Congressman Joseph P. Addabbo , who represented Jamaica and whose district would gain the over 2,000 federal workers involved, but was opposed by Congressman Benjamin Rosenthal , whose district would lose them. According to Rosenthal, the potential negative impact of

396-477: A penalty for collecting benefits before full retirement age: the recipient's monthly benefits are permanently reduced. For instance, if a recipient turns age 62 in 2017, their benefit will be approximately 25.8 percent lower than it would have been at full retirement age of 66 and 2 months. In contrast, recipients are rewarded through delayed retirement credits if Social Security benefits are claimed after full retirement. For recipients born in 1943 or later, 8 percent

462-478: A replacement Social Security card can apply for one online. Members of the public can also apply for Supplemental Security Income at SSA's field offices. Field office staff will also assist SSI applicants with an application for food assistance through the SNAP program. Much of the actual processing of initial benefits and subsequent adjustments to benefits is done in six large Program Service Centers located around

528-540: A special trust fund . These programs are collectively known as Retirement, Survivors, Disability Insurance (RSDI). SSA administers its disability program partly through its Office of Disability Adjudication and Review (ODAR), which has regional offices and hearing offices across the United States. ODAR publishes a manual, called HALLEX , which contains instructions for its employees regarding how to implement its guiding principles and procedures. The RSDI program

594-920: A worker is therefore often referred to as a "disability freeze." The primary means of calculating PIAs are the following computation methods. These methods apply in most cases, rather than a handful of cases. All benefits payable to beneficiaries eligible after 1978 may use the 1978 New Start Method, also known as the Average Indexed Monthly Earnings (AIME) PIA. To determine the value of this PIA: The New Start Transitional Guarantee PIA Method may only be used for beneficiaries who: The 1977 Simplified Old Start Method may be only be used for beneficiaries who: The 1967 Simplified Old Start Method may be only be used for beneficiaries who: The 1965 Old Start Method may be only be used for beneficiaries who: The 1965 Simplified New Start Method may be only be used for beneficiaries who: There

660-411: Is a component of Social Security provision in the United States. Eligibility for receiving Social Security benefits, for all persons born after 1929, requires accumulating a minimum of 40 Social Security credits. Typically this is accomplished by earning income from work on which Federal Insurance Contributions Act (FICA) tax is assessed, up to a maximum taxable earnings threshold. For the purposes of

726-571: Is a function of year of birth and is defined by the Social Security Administration as follows: Eligible individuals can begin collecting old-age insurance benefits as early as age 62, which is referred to as the Early Entitlement Age (EEA). Accordingly, individuals born between January 2, 1955, and January 1, 1956, are eligible to accept retirement benefits when they turn 62 in 2017. However, there exists

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792-428: Is a maximum monthly amount that is allowed to be paid on an individual's earnings record. In 2019, for retirement and spousal benefits, for the family of an individual who is at least 62 years old or dies in 2019 before the age of 62, the total amount of benefits payable cannot exceed 150 percent of the first $ 1,184 of the worker's PIA, plus 272 percent of the worker's PIA over $ 1,184 through $ 1,708, plus 134 percent of

858-484: Is added to the yearly benefit amount for each year the recipient delays receiving Social Security benefits beyond their full retirement age. No delayed credit is given after age 69. Eligible individuals who collect their benefits at full retirement age will receive their calculated PIA. More specifically, in 2017, beneficiaries who retire at age 62, full retirement age, or age 70 receive $ 2,153, $ 2,687, or $ 3,538, respectively, in benefits. Contrary to common perception, it

924-405: Is at issue when a claim is filed for benefits under the earnings record of a spouse or parent. The agency also adjudicates a limited number of Medicare claim issues, which is a residual legacy from when SSA was part of the U.S. Department of Health and Human Services. Each year, just before Mother's Day , SSA releases a list of the names most commonly given to newborn babies in the United States in

990-521: Is calculated by subtracting 10 from the number of YOCs and multiplying that result by $ 11.50. That result is then adjusted for the cost of living, approximately equivalent to multiplying by $ 34.20 instead of $ 11.50 for 2008. The 1977 amendments to the Social Security Act allowed for a DIB Guarantee PIA. Under these provisions, a future PIA used for any benefits after 1978 can be no smaller than: Not all DIB Guaranteed PIAs are adjusted for

1056-848: Is generally restricted to U.S. citizens, nationals, and some other groups (such as some refugees) who reside in one of the 50 U.S. states, the District of Columbia, or the Northern Mariana Islands. U.S. citizens and nationals who reside in American Samoa, Guam, Puerto Rico, and the U.S. Virgin Islands are not eligible for SSI. In 2019, 8 million individuals received SSI, including 1.1 million disabled children, 4.6 million disabled adults, and 2.3 million persons 65 or older. In some cases, individuals may be eligible for Social Security (RSDI) benefits and SSI benefits. For example,

1122-466: Is named Security Boulevard (Maryland Route 122) and has since become one of the major arteries connecting Baltimore with its western suburbs. Security Boulevard is also the name of SSA's exit from the nearby Baltimore Beltway ( Interstate 695 ). A nearby shopping center has been named Security Square Mall , and Woodlawn is often referred to informally as "Security." Interstate 70 , which runs for thousands of miles from Utah to Maryland , terminates in

1188-455: Is referred to as the AIME. As a redistributive function of AIME, PIA is designed to reward workers who earn more with higher benefits, but also to ensure that benefits do not rise nearly as fast as earnings. Monthly Social Security benefits at full retirement age are determined through adjusting AIME by multipliers at specific earnings thresholds, which are called "PIA bend points". Accordingly,

1254-408: Is still possible to receive retirement benefits and still continue to work. For individuals who decide to accept benefits before their retirement age, $ 1 in benefits is deducted for each $ 2 that is earned above the annual limit ($ 16,920 for 2017). In the year of an individual's full retirement age, up until the precise month of full retirement, $ 1 of benefits is deducted for every $ 3 that is earned over

1320-548: Is the Average Indexed Monthly Earnings (AIME). To calculate AIME, the individual's wages are first expressed in today's dollars by inflating the value to reflect increases in the wage level during the worker's years of employment. The inflated wages are totaled across the highest 35 earnings years. The sum is then divided by 420 (12 months multiplied by 35 years) in order to calculate real average monthly earnings. This estimate of real monthly earnings

1386-486: Is the higher-ranking of the two and initially required a college degree whereas the post-entitlement position did not. For decades, post-entitlement actions have been processed through a system known as Manual Adjustment, Credit and Award Processes (MADCAP). The six service centers are: They have been located in these six cities going back to at least the early 1950s. The origins of the payment centers date back to 1942, when they were known as Area Offices. The first one

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1452-571: Is the primary benefits program administered by the U.S. federal government, and for some beneficiaries is the vital source of income. Increasing access to this benefit program for low-income or homeless individuals is one of SSA's goals. SSA is a member of the United States Interagency Council on Homelessness and works with other municipal, county, state, local and federal partners to increase access and approval for SSI/SSDI benefits who are eligible. SSA also administers

1518-581: The COVID-19 pandemic . SSA is headquartered in Woodlawn, Maryland , just to the west of Baltimore , at what is known as Central Office. In addition to its 1,200 field offices, the agency includes 10 regional offices, eight processing centers, and 37 Teleservice Centers. As of 2018 , about 60,000 people were employed by SSA. Headquarters non-supervisory employees of SSA are represented by American Federation of Government Employees Local 1923. SSA operates

1584-438: The COVID-19 pandemic . SSA provides a field office locator service, where members of the public can find office phone numbers and addresses. SSA also provides services through a national toll-free number (1-800-772-1213) and a website. Retirement and disability benefits can be applied for online. For survivor benefits, however, members of the public must call or visit SSA in person to apply. In most states, individuals seeking

1650-570: The Centers for Medicare and Medicaid Services , but SSA offices are used for determining initial eligibility, some processing of premium payments, and for limited public contact information. They also administer a financial needs-based program called Extra Help, which helps beneficiaries pay the premiums, deductibles, and coinsurance associated with prescription drug coverage under Part D of Medicare. Benefits under this program are estimated to be worth about $ 5,000 per year. Individuals may apply online for

1716-883: The East Bay to Richmond, the move was opposed by San Francisco-representing Congressman Phillip Burton . Burton's efforts were in vain, however, as construction in a redevelopment area in Richmond commenced and the move was made around 1975. Similarly, in the late 1970s, SSA, the General Services Administration, and the Carter administration devised a plan to move the program service center from its main location, in two leased buildings on Horace Harding Expressway in Lefrak City in Rego Park, to

1782-696: The Supplemental Security Income (SSI) program, which is needs-based, for the aged, blind, or disabled. Prior to the 1972 Amendments to the Social Security Act, low-income aged, blind, or disabled persons received benefits from state-run programs called Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled. These programs received federal funding, but varied in terms of eligibility requirements and benefit payments. The 1972 Amendments replaced these programs with

1848-451: The U.S. federal government that administers Social Security , a social insurance program consisting of retirement , disability and survivor benefits. To qualify for most of these benefits, most workers pay Social Security taxes on their earnings; the claimant's benefits are based on the wage earner's contributions. Otherwise benefits such as Supplemental Security Income (SSI) are given based on need. The Social Security Administration

1914-859: The Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). Railroad workers were covered by the Railroad Retirement Board before Social Security was founded. Today, they still are, though a portion of each railroad pension is designated as "equivalent" to Social Security. Railroad workers also participate in Medicare. All state and local government employees hired since 1986, or whom are covered by Section 218 Agreements, participate in Medicare even if not covered for purposes of Social Security benefits. SSA administers

1980-562: The Extra Help program or by calling SSA. To ensure consistent and efficient treatment of Social Security beneficiaries across its vast bureaucracy, SSA has compiled a giant book known as the Program Operations Manual System (POMS) which governs practically all aspects of SSA's internal operations. POMS describes, in excruciating detail, a huge variety of situations regularly encountered by SSA personnel, and

2046-588: The Federal Security Agency was abolished and SSA was placed under the Department of Health, Education, and Welfare , which became the Department of Health and Human Services in 1980. In 1994, Congress amended non-positive law 42 U.S.C.   § 901 and returned SSA to the status of an independent agency in the executive branch of government. In 1972, Cost of Living Adjustments (COLAs) were introduced into SSA programs to deal with

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2112-422: The PIA is the sum of three separate percentages of portions of estimated AIME. The percentages of the PIA formula are fixed by law, but the dollar amounts in the formula change annually in response to changes in the national average wage index. For 2023, the PIA computation formula is: PIA = 0.90*(AIME up to $ 1115) + 0.32*(AIME between $ 6721 and $ 1115) + 0.15*(AIME - $ 6721) Accordingly, a beneficiary's PIA will be

2178-409: The PIA normally and reduce by 50% of the amount of the non-covered pension's monthly payment. 5. Select the higher value given by steps 3 and 4. The effects of the WEP were phased in between 1986 and 1990. When calculating based on the year of eligibility, the year in which the beneficiary was eligible for both a Title II Social Security Benefit and the non-covered pension. The following chart shows

2244-531: The Payment Centers had acquired a reputation as sources of poor bureaucratic performance that people did not want to work in, and a reorganization under a modules system was undertaken during the 1970s in an effort to improve matters. Each module would be assigned a certain block of social security numbers and it would process all aspects of a claim, from initial entitlement through various changes, notifications to beneficiaries, and so forth. Decades later,

2310-520: The SSI program. SSA was assigned responsibility for the SSI program and began operations in 1974. Federal benefit payments up to $ 943 for an SSI individual and $ 1,371 for an SSI couple are available from the program. SSI benefits are paid out of the general revenue of the United States of America. Some states supplement the federal amount. Because SSI is needs-based, eligibility is restricted to persons with limited income and resources. In addition, eligibility

2376-585: The Social Security program if they participate in a public retirement system through their employers. However, state and local governments, through agreements known as Section 218 agreements, may elect to participate in the program. Of the 23.2 million state and local workers in the United States, about 6.6 million are not covered by Social Security. Other workers not covered by Social Security include federal employees hired before 1984, railroad workers, some family employees, some students, and some members of

2442-595: The United States Social Security Administration , PIA is used as the beginning point in calculating the annuity payment of benefits that is provided to an eligible recipient each month during retirement until the recipient's death. Generally, the more a person pays in FICA taxes during their life, the higher their PIA will be. However, specific rules in its computation may deviate from this general rule. The main determinant of PIA

2508-516: The United States of the U.S. Office of Hearing Operations, formerly Office of Disability Adjudication and Review (ODAR), who hear and decide challenges to SSA decisions. Dissatisfied claimants can appeal to ODAR's Appeals Council, and if still dissatisfied can appeal to a U.S. District Court. Over the years, OHO aka ODAR has developed its own procedural system, which is documented in the Hearings and Appeals Litigation Law Manual (HALLEX) (HALLEX). ODAR

2574-590: The WEP PIA with the Modified New Start 1978 Method: (See Primary Insurance Amount for clarification) 1. Calculate the Average Indexed Monthly Earnings (AIME) . 2. Choose the percentage of the first bend-point to be the higher of the percentage based on the eligibility year or the percentage based on the YOCs acquired. 3. Calculate the PIA based on this, rounding down to the nearest dime. 4. Calculate

2640-595: The amount of benefits the primary beneficiary may have received while living, a fictitious amount is created as if WEP did not apply for this purpose. When the WEP applies, it is used in determining all benefits on the record, both for the primary beneficiary and any auxiliaries. This includes an effect upon the maximum total benefits paid on the record as well. Social Security Program Operations Manual System . Social Security Administration. https://s044a90.ssa.gov/apps10/poms.nsf/partlist!OpenView . Primary Insurance Amount The Primary Insurance Amount ( PIA )

2706-476: The annual limit ($ 44,880 for 2017). Regardless of the level of earnings, there are no deductions from benefits beyond full retirement age. Since the Social Security Act was first signed in 1935, new legislation has provided for various ways of computing the PIA. In order to assure that those already receiving benefits are not harmed by newer methods designed to provide more benefits for others,

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2772-494: The clergy. If a job is not covered by Social Security, workers and employers do not pay Social Security payroll taxes. Social Security retirement and disability benefits are not payable unless individuals have sufficient work in Social Security covered employment. Individuals who work part of their careers in covered employment and part of their careers in non-covered employment and who receive pensions from non-covered employment may have their Social Security benefits reduced through

2838-408: The cost of living. The highest of these four PIA amounts is used on the record. The WEP PIA will affect not only the benefits of the primary beneficiary on the record, but also that of any auxiliaries receiving benefits on the record. However, the WEP does not apply once the primary beneficiary has died, and survivor benefits are unaffected. Whereas Widow's and Widower's Benefits take into account

2904-496: The country. The two main positions in Program Service Centers have long been Claims Authorizers and Benefits Authorizers. Claims Authorizers, now sometimes called claims specialists, establish initial benefits for program recipients. Benefits Authorizers process complicated changes of entitlements to existing beneficiaries, including life events, overpayments, underpayments, and so forth. The claims position

2970-560: The effects of inflation on fixed incomes . In 1960, the Supreme Court ruled in Flemming v. Nestor that the Social Security is not a system of 'accrued property rights' and that those who pay into the system have no contractual right to receive what they have paid into it. Source: Source: SSA was one of the first federal agencies to have its national headquarters outside of Washington, D.C. , or its adjacent suburbs. It

3036-554: The event, the move went forward and the new, 11-story building in Jamaica – by then named the Joseph P. Addabbo Federal Building, as the congressman had died in the interim – opened in 1988. Initially, only 56 percent of the jobs in the United States were covered by Social Security. Today, the system is nearly universal, with 94 percent of individuals in paid employment in the United States working in covered employment. State and local government workers are not required to participate in

3102-400: The exact policies and procedures that apply to each situation. While the establishment of Social Security predated the invention of the modern digital computer , punched card data processing was a mature technology , and the Social Security system made extensive use of automated unit record equipment from the program's inception. This allowed the Social Security Administration to achieve

3168-412: The highest PIA through any applicable method is used. Social Security procedures indicate that a worker's earnings record can be "frozen" at the time he or she qualifies for a period of disability, thereby preserving the individual's insured status and preventing the loss of future retirement or disability benefits which may be computed without considering periods of disability. A period of disability for

3234-402: The individual's PIA and it cannot exceed 150 percent of the individual's PIA. Social Security Program Operations Manual System . Social Security Administration. https://web.archive.org/web/20070610231614/https://s044a90.ssa.gov/apps10/poms.nsf/partlist!OpenView . Social Security Administration The United States Social Security Administration ( SSA ) is an independent agency of

3300-456: The largest government program in the United States. In fiscal year (FY) 2022, the agency expects to pay out $ 1.2 trillion in Social Security benefits to 66 million individuals. In addition, SSA expects to pay $ 61 billion in SSI benefits to 7.5 million low-income individuals in FY 2022. The Social Security Act created a Social Security Board (SSB), to oversee the administration of the new program. It

3366-526: The modules system was still seen as one of the great improvements in SSA processing. The centers have each employed around two thousand people or more, giving them a major local economic impact, and even relocations within the same metropolitan area have created political conflict. When in the early 1970s, SSA and the General Services Administration said it intended to move payment center operations out of San Francisco and across

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3432-610: The move affected the Elmhurst and Corona neighborhoods most strongly. The move was also supported by Representative Geraldine Ferraro , another powerful Queens figure, who sat on the House Public Works Committee . The dispute was aired in Congressional hearings and embroiled Senator Daniel Patrick Moynihan and developer Richard Lefrak , supporting and opposing the move respectively, as well. In

3498-470: The percentages applied before the first bend-point based on the first year the beneficiary was eligible for both: When calculating based on YOCs acquired, the following chart shows what percentage to apply before the first bend-point: The following steps are taken in determining the WEP PIA with the Modified Old Start 1977 Method: (See Primary Insurance Amount for clarification) 1. Compute

3564-417: The raw 1977 Simplified Old Start PIA. 2. Reduce the PIA to 50% and round down to the nearest dime. 3. Reduce the PIA from step 1 by 50% of the non-covered pension amount. 4. Select the larger of the PIA from steps 2 and 3. The Special Minimum PIA, intended to assist individuals with low earnings over their working life, has been in effect on all benefits payable since January 1973. Since January 1979, it

3630-443: The retirement, survivors, and disabled social insurance programs, which can provide monthly benefits to aged or disabled workers, their spouses and children, and to the survivors of insured workers. In 2010, more than 54 million Americans received approximately $ 712 billion in Social Security benefits. The programs are primarily financed by taxes which employers, employees, and the self-insured pay annually. These revenues are placed into

3696-431: The sum of: (a) 90 percent of the first $ 1115 of average indexed monthly earnings, plus (b) 32 percent of average indexed monthly earnings between $ 1115 and $ 6721, plus (c) 15 percent of average indexed monthly earnings over $ 6721 The actual amount of benefits provided to the recipient depends on the age at which they claim their social security benefits, relative to their full retirement age. Full retirement age (FRA)

3762-402: The system were given this subsidy. The WEP is applied to certain beneficiaries who are receiving RIB or DIB and who also: There are two ways in which to compute the WEP affected PIA: the Modified New Start 1978 Method and the Modified Old Start 1977 Method. Special rules apply to deciding which method to use or if to use different guaranteed PIAs. The following steps are taken in determining

3828-546: The time the new building was completed, World War II had started, and the building was commandeered by the War Department . By the time the war ended, it was judged too disruptive to relocate the agency to Washington. The Agency remained in the Candler Building until 1960, when it relocated to its newly built headquarters in Woodlawn. The road on which the headquarters is located, built especially for SSA,

3894-423: The worker's PIA over $ 1,708 through $ 2,228, plus 175 percent of the worker's PIA over $ 2,228. The total amount is then rounded down to the nearest multiple of $ 0.10. For disabled individual, the calculation of family maximum benefits differs. The family maximum for the family of a disabled individual is equal to 85 percent of the worker's Average Indexed Monthly Earnings , but it cannot be less than 100 percent of

3960-517: Was Thomas Elliott , one of Felix Frankfurter 's "happy hot dogs". The first Social Security office opened in Austin, Texas , on October 14, 1936. Social Security taxes were first collected in January 1937, along with the first one-time, lump-sum payments. The first person to receive monthly retirement benefits was Ida May Fuller of Brattleboro, Vermont . Her first check, dated January 31, 1940,

4026-509: Was created as part of President Franklin D. Roosevelt 's New Deal with the signing of the Social Security Act of 1935 on August 14, 1935. The Board consisted of three presidentially appointed executives, and started with no budget, no staff, and no furniture. It obtained a temporary budget from the Federal Emergency Relief Administration headed by Harry Hopkins . The first counsel for the new agency

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4092-516: Was established by the Social Security Act of 1935 and is codified in 42 U.S.C.   § 901 (49  Stat.   635 ). It was created in 1935 as the "Social Security Board", then assumed its present name in 1946. Its current leader is Martin O'Malley . SSA offers its services to the public through 1,200 field offices, a website, and a national toll-free number. Field offices, which served 43 million individuals in 2019, were reopened on April 7, 2022 after being closed for two years due to

4158-635: Was established in Philadelphia, with ones in New York, Chicago, San Francisco, and New Orleans, Louisiana , soon following. In addition, there are specialized processing centers for the Office of Earnings and International Operations and the Office of Disability Operations, both located in Baltimore. Before the mid-1970s, the Program Service Centers were called Payment Centers. By the late 1960s,

4224-454: Was formerly known as the Office of Hearings and Appeals (OHA) and, prior to the 1970s, the Bureau of Hearings and Appeals. The name was changed to ODAR in 2007 to reflect the fact that about 75% of the agency's docket consists of disability cases. OHO aka ODAR also adjudicates disputes relating to retirement claims and has jurisdiction when the paternity of a claimant or the validity of a marriage

4290-642: Was in the amount of US$ 22.54. In 1939, the Social Security Board merged into a cabinet -level Federal Security Agency , which included the SSB, the U.S. Public Health Service , the Civilian Conservation Corps , and other agencies. In January 1940, the first regular ongoing monthly benefits began. In 1946, the SSB was renamed the Social Security Administration under President Harry S. Truman 's Reorganization Plan. In 1953,

4356-604: Was located in Baltimore initially due to the need for a building that was capable of holding the unprecedented amount of paper records that would be needed. Nothing suitable was available in Washington in 1936, so the Social Security Board selected the Candler Building on Baltimore's harbor as a temporary location. Soon after locating there, construction began on a permanent building for SSA in Washington that would meet their requirements for record storage capacity. However, by

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