Here's a note that a legal assistant at my firm made of a conversation she had with Social Security's Representative Call Center (RCC) in Baltimore about why one of the firm's clients hadn't been paid her back benefits:
TC [Telephone all] RCC (877) 626-6363. It [the client's money] was released to the Treasury Dept. on the 23rd and she said every month the Treasury has a date that they stop processing cks until the 1st of the next month; this month it was 18th. So all the claims they processed will not be released until April 1st. She said this has been going on for some time and the cut off is usually in the 20s of the month but for some reason this month it was earlier.Oddly, one person posted a comment on this blog yesterday saying that they had heard the same thing.
Let me explain one thing. The Social Security Administration doesn't write checks or initiate direct deposits of Social Security benefits. That's done by the Department of the Treasury. All Social Security does is certify to Treasury that the payments should be made.
I had long suspected that Treasury was deliberately delaying payments at the end of each month. Generally, neither my firm nor our clients get paid Title II Social Security benefits in about the last week of each month, then there's a surge in payments early in each month as the money that was held up at the end of the preceding month is released. Payments under Title XVI, Supplemental Security Income, don't seem to be affected. It's only Title II benefits that are affected. What I don't understand is why Treasury is doing this. It seems inappropriate to me.