Oral Testimony Of AFGE At Senate Hearing

Below is the transcript of the testimony of Witold Skwierczynski, President, National Council of SSA Field Operations Locals, American Federation of Government Employees, AFL-CIO given at the Senate Finance Committee hearing on May 8. I am sorry this is all in caps, but that is how it came to me. I have bolded some paragraphs that seemed particularly interesting to me.

THANK YOU FOR THE OPPORTUNITY TO ADDRESS THE COMMITTEE REGARDING THE IMPORTANT ISSUE OF SSA SERVICE DELIVERY PROBLEMS.

STAFFING CUTS DUE TO INADEQUATE APPROPRIATIONS CERTAINLY HAVE HAD AN ADVERSE EFFECT ON SSA’S ABILITY TO PROCESS ITS WORK. DECISIONS BY CONGRESS AND THE BUSH ADMINISTRATION TO ADD WORKLOADS TO SSA SUCH AS MEDICARE PART D PRESCRIPTION DRUGS SUBSIDY DETERMINATIONS, MEDICARE PART B GRADUATED PREMIUM APPEALS, MORE STRINGENT SOCIAL SECURITY CARD EVIDENTIARY STANDARDS, E-VERIFY AND NO MATCH WORKLOADS WITHOUT PROVIDING
FUNDING FOR ADDITIONAL STAFF IS PARTIALLY RESPONSIBLE FOR THE CURRENT CRISIS IN SSA WHERE THE DISABILITY APPEALS WORKLOAD HAS A 750,000 BACKLOG AND THE PROCESSING TIME FOR AN APPEAL IS OVER 500 DAYS.

THE AGENCY THIS YEAR WILL ONLY BE ABLE TO PROCESS LESS THAN 50% OF THE SSI REDETERMINATIONS THAT WERE PROCESSED IN 2003 AND ONLY ABOUT 355 OF THE MEDICAL CONTINUING DISABILITY REVIEWS THAT IT PROCESSED IN 2004.

LARGER APPROPRIATIONS AND MORE STAFF IS ESSENTIAL TO ALLOW SSA TO FUNCTION NORMALLY AND PROVIDE THE SERVICE TO THE PUBLIC THAT THE PUBLIC DESERVES.

AFGE RECOMMENDS THAT $11 BILLION BE APPROPRIATED BY CONGRESS FOR FY 09. AFGE ALSO RECOMMENDS THAT CONGRESS CONSIDER TAKING THE ADMINISTRATIVE EXPENSES OFF BUDGET SO THAT CONGRESS CAN EVALUATE SSA’S RESOURCE NEEDS WITHOUT THE PRESSURES OF OTHER COMPETING INTERESTS.

HOWEVER, TODAY I’D LIKE TO ADDRESS 2 SERVICE DELIVERY ISSUES THAT HAVE FALLEN UNDER THE RADAR SCREEN WHILE CONGRESS JUSTIFIABLY EXPRESSES ITS CONCERN ABOUT THE OBSCENE PROCESSING TIME OF THE DISABILITY HEARINGS WORKLOAD. THESE 2 ISSUES ARE THE READY RETIREMENT INITIATIVE AND ITS VEHICLE THE INTERNET SOCIAL SECURITY BENEFIT APPLICATION AND ENUMERATION OR CARD CENTERS.

USING STAFF SHORTAGES AS AN EXCUSE, SSA HAS DECIDED TO IMPLEMENT A POLICY WHEREBY CLAIMANTS ARE ENCOURAGED TO FILE CLAIMS ON THE INTERNET WITH THE GOAL OF ELIMINATING ANY SSA REVIEW OF SUCH CLAIMS.

SSA HAS ALREADY IMPLEMENTED THE 1^ST STEP OF ACHIEVING THIS GOAL OF RADICALLY REDUCING THE LEVEL OF SERVICE FORMERLY PROVIDED TO SSA CUSTOMERS BY SSA EMPLOYEES. IN FEBRUARY SSA INSTITUTED POLICIES, WITHOUT NOTICE TO THE PUBLIC VIA RULEMAKING, ELIMINATING PROOF OF AGE AND CITIZENSHIP REQUIREMENTS IN MOST CASES.

SINCE FEBRUARY ANYONE WHO LIED ABOUT THEIR AGE WHEN THEY APPLIED FOR AN SS CARD AND USED THE SAME FALSE AGE WHEN THEY FILED FOR RETIREMENT BENEFITS WILL GET AWAY WITH SUCH FRAUD SINCE SSA NO LONGER WILL DEMAND ANY POA.

SO ANYONE WHO MADE THEMSELVES OLDER WHEN THEY APPLIED FOR A CARD TO GET A JOB WILL BE ABLE TO RECEIVE RETIREMENT BENEFITS EARLIER AS LONG AS THEY REPEAT THE LIE WHEN THEY FILE FOR RETIREMENT BENEFITS. THIS FRAUDULENT WINDFALL COULD BE FOR THOUSANDS OF DOLLARS.

IN MARCH AFGE REQUESTED FROM SSA ANY VALIDATION STUDIES THAT WERE DONE TO JUSTIFY THIS EVIDENTIARY CHANGE SO THE PUBLIC WILL UNDERSTAND THE POTENTIAL LOSS IN TRUST FUND REVENUE BASED ON FRAUDULENT DOB ALLEGATIONS. SSA HAS NOT RESPONDED TO THE UNION’S REQUEST.

SINCE FEBRUARY ANYONE WHO ASSERTED THAT THEY WERE BORN IN THE USA WHEN THEY FILED FOR A SS CARD WILL NOT REQUIRE TO SUBMIT PROOF OF CITIZENSHIP IF THEY ALLEGE US BIRTH UPON APPLICATION FOR RETIREMENT BENEFITS. THUS IF AN UNDOCUMENTED IMMIGRANT LIED ABOUT UNITED STATES BIRTH WHEN THEY FILED FOR A SS CARD AND REITERATED THAT LIE WHEN FILING FOR RETIREMENT SINCE SSA DOESN’T REQUEST PROOF OF CITIZENSHIP THE LIE WILL NOT BE DETECTED. IN SUCH A SITUATION THE UNDOCUMENTED IMMIGRANT COULD RECEIVE UP TO HUNDREDS OF THOUSANDS OF DOLLARS IN BENEFITS THAT THEY WERE NOT ENTITLED TO RECEIVE. (BEFORE 1981 SSA DID NOT VERIFY AGE AND/OR CITIZENSHIP FOR SSN APPLICANTS.)

AGAIN IN MARCH AFGE REQUESTED THAT SSA PRODUCE ANY STUDIES THEY CONDUCTED SHOWING THE NATURE OF THE POTENTIAL TRUST FUND LOSS FROM FRAUDULENT CITIZENSHIP ALLEGATIONS. AGAIN SSA HAS NOT RESPONDED.

SSA ALSO ELIMINATED LAG WAGE DEVELOPMENT FOR THE MOST RECENT YEAR OF EARNINGS WHICH TYPICALLY IS USED TO INCREASE A RETIREMENT APPLICANT’S BENEFITS. THIS WILL RESULT IN MILLIONS OF RETIREMENT APPLICANTS BEING UNDERPAID UNTIL IRS NOTIFIES SSA OF THE WAGE EARNER’S MOST RECENT YEAR OF EARNINGS AND THE SYSTEM RECOMPUTES THE BENEFIT.

EVEN MORE DISTURBING IS THE PLAN THAT SSA HAS TO IMPLEMENT THE SCHEME DEVISED BY ANDREW BIGGS, THE REJECTED BUSH NOMINEE FOR SSA’S PRINCIPAL DEPUTY COMMISSIONER, WHO IS FROM THE CATO INSTITUTE WHO ESPOUSED THE ELIMINATION OF SOCIAL SECURITY. ACCORDING TO BIGGS, SSA SHOULD NOT PROVIDE THE APPLICANT WITH ANY ADVICE REGARDING THEIR RETIREMENT DECISION SINCE THE APPLICANT IS BEST SITUATED TO MAKE THEIR OWN RESPONSIBLE ECONOMIC DECISIONS.

THE AGENCY PLANS TO ELIMINATE THE LONG STANDING ROLE OF SSA EMPLOYEES EXPLAINING TO CLAIMANTS THE ADVANTAGES AND DISADVANTAGES OF FILING FOR WIDOWS OR RETIREMENT BENEFITS AND WHEN WOULD BE THE MOST ADVANTAGEOUS TIME TO ELECT TO START BENEFITS WHEN THE AGENCY INTRODUCES THE NEW INTERNET APPLICATION IN SEPTEMBER, 2008.

CURRENTLY CLAIMANTS CAN AND DO FILE INTERNET BENEFIT APPLICATIONS. ALL SUCH APPLICATIONS ARE REVIEWED BY SSA CLAIMS REPRESENTATIVES. AFGE RECENTLY SURVEYED CLAIMS REPRESENTATIVES WHO REVIEW INTERNET APPLICATIONS. MOST EMPLOYEES RESPONDING TO THE SURVEY INDICATED THAT THE MAJORITY OF APPLICANTS ON THE INTERNET CHOOSE TO START THEIR RETIREMENT AND/OR WIDOWS BENEFITS IN A DISADVANTAGEOUS MONTH. THIS WOULD RESULT IN THE LOSS OF THOUSANDS OF DOLLARS IN LIFETIME BENEFITS. 86% OF SSA EMPLOYEE SURVEY RESPONDENTS OPPOSE ELIMINATING ADVICE TO THE CLAIMANTS ON WHICH MONTH OF ELECTION IS MOST ADVANTAGEOUS.

SSA IS ALREADY REQUIRING EMPLOYEES TO ENGAGE IN A CAMPAIGN TO ENCOURAGE THE PUBLIC TO FILE FOR BENEFITS ON THE INTERNET. 87% OF SSA EMPLOYEES RESPONDING TO THE AFGE SURVEY STATED THAT THE QUALITY OF CURRENT INTERNET CLAIMS IS SO POOR THAT OVER 75% OF CLAIMANTS MUST BE RECONTACTED DUE TO CRITICAL MISSING INFORMATION, CLEARLY DISADVANTAGEOUS DECISIONS OR INCONSISTENT INFORMATION ON THE APPLICATION. 71% OF SURVEY RESPONDENTS STATED THAT OVER 90% OF INTERNET CLAIMANTS MUST BE RECONTACTED BY SSA.

_3^RD PARTY PUSH_

IN CONJUNCTION WITH SSA’S PLAN TO IMPLEMENT THE ANDREW BIGGS PHILOSOPHY OF ELIMINATING THE ADVICE AND ASSISTANCE THAT TRAINED AND EXPERIENCED SSA CRS HAVE GIVEN THE PUBLIC FOR OVER 60 YEARS, SSA INTENDS TO INCREASE THE ROLL OF 3^RD PARTIES. IN FILING APPLICATIONS AND ADVISING SSA CUSTOMERS. THE IDEA IS TO REDUCE THE ROLE OF EXPERT, EXPERIENCED AND UNBIASED SSA EMPLOYEES AND SUBSTITUTE 3^RD PARTIES WHO WILL CHARGE A FEE
FOR THEIR SERVICES.

SSA PLANS TO ALLOW 3^RD PARTIES CREATED ACCESS TO THE SSA DATABASE. THE OPPORTUNITY FOR FRAUD AND IDENTITY THEFT IS AN INCREASING AFGE CONCERN. EXPANDED 3^RD PARTY ACCESS TO THE SSA COMPUTER SYSTEM WILL IN ALL LIKELIHOOD LEAD TO FUTURE IDENTITY THEFT SCANDALS. SSA EMPLOYEES WHO REVIEW CURRENT 3^RD PARTY INTERNET FILED CLAIMS REPORT THAT 3^RD PARTY ERROR RATES ARE AS HIGH AS THE ERRORS BY CLAIMANTS THEMSELVES.

IT IS THE BELIEF OF AFGE THAT THE ANDREW BIGGS READY RETIREMENT SCHEME AND ITS INTERNET APPLICATION TOOL IS AN ATTEMPT TO UNDERMINE SSA AS A GOVERNMENT AGENCY THAT HAS A COMPREHENSIVE NETWORK OF COMMUNITY BASED OFFICES WITH AN EXPERT WORKFORCE OF TRAINED EMPLOYEES DEVOTED TO HELPING RETIREMENT, DISABILITY, SURVIVORS AND SSI APPLICANTS RECEIVE THE MAXIMUM BENEFITS TO WHICH THEY ARE ENTITLED.

IMPLEMENTATION OF THESE PROPOSALS WILL RESULT IN A REDUCED WORKFORCE, MORE OFFICE CLOSINGS AND AN EMERGENCE OF A PLETHORA OF 3^RD PARTY PRIVATE INDUSTRY COMPANIES WHO WILL CHARGE THE PUBLIC FOR SERVICES AND ADVICE THAT THEY NOW RECEIVE FROM THE GOVERNMENT WITHOUT COST. EVENTUALLY WE CAN ENVISION PRESSURE TO PRIVATIZE THE ADMINISTRATION OF THE SERVICE DELIVERY ROLE OF SSA.

ALTHOUGH THE BUSH ADMINISTRATION WAS UNSUCCESSFUL IN PRIVATIZING SSA BENEFITS, IT IS MOVING SWIFTLY TO ELIMINATE THE SERVICE ROLE THAT SSA HAS PROVIDED SINCE ITS INCEPTION AND SUBSTITUTE CLAIMANT RESPONSIBILITY AND 3^RD PARTY FOR PROFIT ASSISTANCE.

WE URGE CONGRESS TO TAKE ACTION TO INVESTIGATE THIS ATTEMPT TO IMPLEMENT THE BIGGS PLAN AND RADICALLY CHANGE THE NATURE OF SERVICE DELIVERY IN SSA.

CARD CENTERS HAVE BEEN OPENED IN NY, LAS VEGAS, PHOENIX AND ORLANDO. THE COMMISSIONER PLANS TO OPEN UP TO 20 MORE. CARD CENTERS ARE EXCLUSIVELY FOR SS CARD WORK. IN PHOENIX, ORLANDO AND LAS VEGAS THE CARD CENTERS HAVE A SERVICE AREA THAT EXTENDS UP TO 200 MILES FROM THE OFFICE. CLAIMANTS ARE REQUIRED TO GO TO THE CARD CENTER IF THEY LIVE IN THE CARD CENTER SERVICE AREA AND HAVE AN SSA CARD ISSUE SUCH AS NEEDING A REPLACEMENT CARD OR RESPONDING TO AN E-VERIFY NO MATCH. IF A CUSTOMER INSTEAD GOES TO THE4IR LOCAL COMMUNITY BASED OFFICE, THEY WILL BE TURNED AWAY. IF THEY HAVE MULTIPLE BUSINESS WITH SSA, THEY WILL HAVE TO GO TO 2 OFFICES SINCE CARD CENTERS ONLY DO SSA CARD WORK. THIS YEAR WAITING TIMES IN CARD CENTERS HAVE BEEN UP TO 4 HOURS. THE CENTERS ARE UNDERSTAFFED. EMPLOYEES HAVE BEEN REASSIGNED TO CARD CENTERS AGAINST THEIR WILL. THE PUBLIC IS FORCED TO GO TO A CARD CENTER AGAINST THEIR WILL AND WHEN THEY ARRIVE AT THE CARD CENTER THEY ARE FREQUENTLY SUBJECTED TO LENGTHY WAITING TIMES.

EXPANSION OF E-VERIFY WILL INCREASE THE WORKLOAD OF THE CARD CENTERS AND FORCE MORE SSA CUSTOMERS TO TRAVEL LENGTHY DISTANCES UNNECESSARILY TO CORRECT ERRORS IN THEIR SOCIAL SECURITY RECORDS.

SSA HAS ALWAYS HAD AN EXTENSIVE NETWORK OF FULL SERVICE OFFICES. NOW IN CARD CENTER AREAS, SSA HAS CREATED SPECIALTY OFFICES FOR NO GOOD REASON THAT INCONVENIENCE THE PUBLIC.

CONGRESS SHOULD INVESTIGATE THIS BAD IDEA OF CARD CENTERS AND DEMAND THAT SSA CEASE ATTEMPTS TO EXPAND THIS CONCEPT.

Someone asked me recently where the AFGE is getting the charge that there is a plan to have third parties provide routine Social Security services such as filing claims for a fee. I do not know. What I do know is that no one at Social Security seems to be responding that this is nonsense, that there is no such plan in the works. That does not make it true, but it does make it plausible.