New Acting Commissioner

     Social Security’s organization chart now shows Michelle King as Acting Commissioner.

Nasty Congressional Hearing With O’Malley

      From The Hill:

Martin O’Malley, the former Social Security commissioner who is now seeking to chair the Democratic National Committee, took the brunt of House GOP anger over federal telework policies – and a number of other topics – in a House Committee on Oversight and Government Reform hearing on Thursday [actually Wednesday].

Republicans primarily took aim at O’Malley’s role in overseeing a late 2024 deal between the Social Security Administration (SSA) and its workers’ union, the American Federation of Government Employees, that will lock in the current levels of telework for union employees until October 2029 – beyond the end of the Trump administration.  …

O’Malley’s bid to be chair of the Democratic National Committee was also brought up multiple times by Republicans, with some bringing up topics far removed from the issue of federal telework. 

Rep. Nancy Mace (R-S.C.), who has become a leading anti-transgender voice in Congress,  asked O’Malley to define what a woman is.

“You’re going to ask me to define what a woman is?” O’Malley asked. “I’m talking to a woman right now, a distinguished woman … I think you’re kind of denigrating the purpose of this hearing.”

Good Tax Planning

    From Urban Milwaukee:

2020 was a profitable year for Fiserv, the financial services company located in Brookfield. The company earned $1.1 billion in pre-tax earnings on revenue of $14.85 billion.

Even better, it paid not a dollar in federal taxes on those earnings.

Still better, it actually got a tax rebate from the IRS, of $25 million, increasing its net income for the year.

    As you will recall, Frank Bisignano, who has been nominated to become Commissioner of Social Security, is CEO of Fiserv.

A Christmas Question: Can You Overturn It?

      From the Baltimore Sun:

… Martin O’Malley has been called to testify before the House Oversight Committee next month about an agreement he signed to allow some Social Security employees to work remotely through 2029.

O’Malley signed the agreement in late November, two days before leaving his Social Security Administration position.

James Comer, a Republican representative from Kentucky who serves as the chairman of the Committee on Oversight and Accountability, wrote in a letter to O’Malley that his agreement with the American Federation of Government Employees to guarantee a minimum amount of telework for 42,000 Social Security employees through 2029 “will tie the hands of your successor at SSA for the duration of the next administration, and beyond.”

How Do You Pronounce Bisignano?

     Don't ask a guy whose surname is Hall how you pronounce the Italian name Bisignano! Fortunately, there are websites to help with questions like this and this website includes audio. Basically, the "g" is silent or nearly silent.

Will Frank Bisignano Telework?

Coming back to Social Security?

     You may remember that former Social Security Commissioner Andrew Saul tried to end telework at Social Security while he was teleworking himself. He never moved from New York City to the Baltimore area. That didn't go over well with agency employees.

    The newly nominated Commissioner of Social Security is the CEO of Fiserv which is based in Milwaukee. However, Bisignano never moved from his hometown of New York City when Fiserv moved its corporate headquarters to Milwaukee raising the question of whether Bisginano will move to the Baltimore area if he is confirmed as Commissioner. I don't think that we can say he's teleworking at Fiserv. There may be good reasons why the CEO of a financial services company would be located in New York City but after Saul you have to wonder whether Bisignano intends to move. Trying to end telework for everyone else when you're teleworking yourself isn't a good look. In any case, if you're serious about being Commissioner of Social Security you should be living and working in the Baltimore area.

    I hope this issue comes up in Bisignano's confirmation hearing.

Does Frank Bisignano Realize What He's Gotten Himself Into?

     I'm surprised that Frank Bisignano wants the job as Social Security Commissioner. He's now the highly paid CEO of a very successful corporation. It's his niche and apparently he's very good at it. Is he aware of the problems he'll face at Social Security?

• If he thinks he'll lead Social Security out of its long term financing problems, he's deluded. Senators of both parties will demand that he promise that he will stay completely away from long term financing issues. He can't be confirmed without making such promises. For that matter, I'm pretty sure that Trump would want him to stay away from such issues. Also, if he actually looks into the political thicket surrounding it, he'll want nothing to do with Social Security "reform." Let Elon Musk take that bullet.
  
• If he thinks he can in any sense "transform" Social Security, he's deluded. There's no simple fix, technical or otherwise, for Social Security's service delivery problems. There's not even a complicated set of fixes that don't take a lot of money and time. It's highly unlikely that he'll get more money.
• If he thinks that he'll have an advantage because he knows nothing about Social Security and won't be held back by old ideas, he's deluded. In any job, it helps to know how things are already set up, what the obstacles to change are, and what ideas have been tried before and how they worked out. The people who came before you weren't fools (except for Jo Anne Barnhart). Social Security isn't a Gordian knot and Bisignano won’t have have a sword.
  
• If he thinks that the real problem at Social Security is that federal employees are stupid and lazy, he's deluded. That sort of arrogance would lead to indifference, if not joy, in losing the experienced, hard-working employees who keep the Social Security Administration afloat. Not every agency employee is a star but they mostly do their jobs ably. There just aren't enough of them.
  
• If he thinks that ending telework will make Social Security significantly more effective, he's deluded. I've been around long enough to know that telework makes little, if any, difference. If telework ends, some percentage of employees will quit. My guess is that it won't be that high a percentage but that's just a guess. Nobody knows. Losing even a few experienced people will hurt an agency that's as bad off as the Social Security Administration. The commonly held view that Social Security is simple is simply wrong. For example, there's not just one type of Social Security disability benefit. Depending upon how you count them, there are as many as seven (remember that blindness is a separate category under both Title II and Title XVI)! And don't get him started on the windfall offset! It'll blow his mind. It takes long training and considerable experience for an employee to become competent.
  
• If he thinks he can transform the Social Security Administration with new IT, he's deluded. When the companies that Gisignano has led have needed to spend money to acquire new IT systems, all he's had to do was to convince a complaisant board of directors to approve the money. The money was available since the companies were profitable. The situation at Social Security is entirely different. Convincing the White House to approve additional funding will be hard enough. Convincing Congress is much more difficult. Martin O'Malley is a born lobbyist. How far did he get? Is Gisignano any kind of lobbyist?
• If he thinks that fighting employee unions will make the Social Security Administration more effective, he's deluded. The unions can be a pain in the neck but they have just about no effect on productivity. Spending energy fighting them isn't worth it. They're not the enemy.
  

Bisignano Nominated To Become Commissioner

     From USA Today:

President-elect Donald Trump said he's nominating financial services CEO Frank Bisignano to serve as commissioner of the Social Security Administration. ...

Bisignano currently leads the financial services and payments giant Fiserv, one of the largest financial software companies in the country.

He’s previously held executive leadership positions at major banks including JP Morgan Chase and Citigroup.  ...

    From Wikipedia:

... Under Bisignano's tenure, hundreds of First Data and FiServ locations have closed, resulting in the termination of thousands of employees. Employees who previously had remote positions due to the COVID-19 pandemic or other legacy reasons have reportedly been particularly targeted. ...

One Thing About Carolyn Colvin

     Let's say that someone other than Carolyn Colvin had been made the Acting Commissioner of Social Security and let's say it's a career employee in his or her prime working years. Let's also say that the Trump Administration decides a priori that Social Security will do just fine with a 20% reduction in staffing. That Acting Commissioner would face a dilemma. The person could forcefully resist internally in which case that person would probably be fired and their federal career would be at an end. That person could quit in protest in which case their federal career would also be at an end. That's tough on a person with a mortgage and kids in or near college.

    At her age, Colvin can easily resign in protest. She has no reason to worry about her federal career. She can court firing or quit without concern. If she leaves, she can be very noisy about it. This gives her a certain power that others, younger than her, don't have.

    By the way, if you're someone in line to succeed Colvin, what would you do as Acting Commissioner if the Trump Administration orders up something that you know will have disastrous effects? Would you have the courage to resign in protest? Would you be willing to preside over a disastrous situation? Is there some way of squirming out of the dilemma? These may not be abstract questions for a handful of people at Social Security.

O'Malley's Tenure As Commissioner

     From a piece in Government Executive about Martin O'Malley's too brief tenure as Commissioner of Social Security:

Social Security Commissioner Martin O’Malley on Wednesday described his nearly a year in charge of the embattled agency responsible for administering Americans’ retirement and disability benefits as one of the “greatest honors” of his career in government and politics. ..

O’Malley told Government Executive on Wednesday that he was “enormously proud” of the agency’s beleaguered workforce, which was able to find significant customer service improvements despite operating at a 50-year staffing low and serving the most beneficiaries in history. ...

[T]he public’s preference for telephonic and video disability hearings–with 90% of new requests being through those avenues–has made it easier to optimize administrative law judges’ workloads regardless of geographic location. ...

Jim Borland, the agency’s assistant deputy commissioner for analytics, review and oversight, said he will be retiring after a 40-year career in the federal government next month, and that this final year was “the most fun” he’s had at work in those four decades. ...

Carolyn Colvin To Be ACOSS

 

    The National Organization of Social Security Claimants Representatives (NOSSCR) is reporting that Carolyn Colvin will once again serve as Acting Commissioner Of Social Security (ACOSS). She had served previously in that role from 2013-17.

    Of course, the incoming Trump Administration can designate someone else for the acting position or can quickly nominate someone to be the confirmed Commissioner of Social Security.

    Also, of course, Colvin isn't obligated to hang around if she is ordered to make layoffs that would have a disastrous effect on the agency.

Yesterday's Hearing

     The hearing yesterday before the Labor-HHS Subcommittee of the House Appropriations Committee went about as I expected but there were interesting details.

Robert Aderholt, Subcommittee Chair

    Robert Aderholt, the Chair of the Subcommittee, spoke first. He said he was happy that Commissioner O'Malley had already come to his office to discuss the agency's appropriation. He said that less than half of agency heads did this, which I find surprising. He also said that this was the first House Appropriations Committee hearing on Social Security in a decade. I knew it had been a long time but that's even more than I imagined. Note to future Commissioners, including Acting Commissioners: Meet with Appropriations Committee members on as regular a basis as you can.

    Aderholt went quickly into Republican talking points which basically amount to pressure to force an end to telework and a demand that the agency manage its way out of its service delivery problems. In particular, he didn't like the amount of overtime at Social Security and thought that it was being abused by employees. Maybe there are problems with overtime but if it there are, it's just the normal sort of management issue that you find at any large entity. It's hardly responsible for any work backlogs, nor is telework. Just about every entity employing white collar employees allows telework. If you don't allow it, you have a hard time holding onto your employees or hiring new ones.

    The other Subcommittee members divided along party lines in predictable and somewhat depressing ways. My limited experience with Congressional hearings in past decades was that they were nowhere near as partisan as this.

     There were many questions along the lines of “Can’t you use AI so you can give better service inexpensively?” The Commissioner’s answer was basically “We hardly have the money to maintain the systems we already have so we can’t possibly afford new AI contracts.”

    It grated on me that Commissioner O'Malley kept saying he had "turned around" Social Security. He's a politician so you expect some hyperbole but saying that the agency has been "turned around" is over the top. O'Malley has done a good job in the short time frame he's had but actually "turning around" the agency was impossible without more time and more money.

    In the end, I hope I'm wrong but I would be surprised to see any additional money for Social Security coming out of this Subcommittee.

    Republicans will get a chance to see whether a Trump appointee as Commissioner can manage the agency out of its service delivery problems. I don't have high hopes of anyone even being nominated for the position for many months, if not years, into the future. Given the quality of the man Trump appointed in his first term in office, I'm not expecting a transformational leader.

House Appropriations Hearing

     The written witness statement of Commissioner Martin O'Malley for today's hearing before the Labor-HHS Subcommittee of the House Appropriations Committee is already available. I think someone slipped up. They normally embargo these until literally the moment the witness starts speaking.

    The hearing, which is set for 10:30, will be available for viewing online.

Overpayment Changes Written In The Sand?

    From a press release issued by Social Security on March 20 of this year:

Social Security Commissioner Martin O'Malley today announced he is taking four vital steps to immediately address overpayment issues customers and the agency have experienced. ...

Our deeper understanding of the complexities of this problem has set us on the following course of action:

1. Starting next Monday, March 25, we will be ceasing the heavy-handed practice of intercepting 100 percent of an overpaid beneficiary's monthly Social Security benefit by default if they fail to respond to our demand for repayment. Moving forward, we will now use a much more reasonable default withholding rate of 10 percent of monthly benefits — similar to the current rate in the Supplemental Security Income (SSI) program.
2. We will be reframing our guidance and procedures so that the burden of proof shifts away from the claimant in determining whether there is any evidence that the claimant was at fault in causing the overpayment.
3. For the vast majority of beneficiaries who request to work out a repayment plan, we recently changed our policy so that we will approve repayment plans of up to 60 months. To qualify, Social Security beneficiaries would only need to provide a verbal summary of their income, resources, and expenses, and recipients of the means-tested SSI program would not need to provide even this summary. This change extended this easier repayment option by an additional two years (from 36 to 60 months).
4. And finally, we will be making it much easier for overpaid beneficiaries to request a waiver of repayment, in the event they believe themselves to have been without any fault and/or without the ability to repay.

        This has all been implemented via an Emergency Message and changes in the agency's POMS manual. Social Security says it has reduced the number of people affected by withholding the entire monthly check from 46,000 to 7,000. The problem is that none of these changes have the force and effect of law, as a regulation would. Everything O'Malley has done on overpayments could be easily undone by a simple memo. Regulations can be amended but the process takes time. It's much less likely to be done. Maybe the agency was working on regs and didn't get finished. Maybe it was thought that a subsequent administration wouldn't change this. Maybe they won't but I wouldn't be surprised if this one does. Have you noticed that the incoming administration seems a little bloody-minded?

    One other thing that O'Malley talked about was a statute of limitations on the collection of overpayments. I thought he could have done this by a regulation but, apparently, his agency eventually decided that Congress would have to amend the statutes, which, of course, is impossible.

O'Malley Resigning On November 29

     Martin O'Malley is resigning as Commissioner of Social Security effective on November 29.

    Update: NBC News reports that O'Malley is seeking to become the Chair of the Democratic National Committee.

Appropriations Hearing On November 14

    The House Appropriations Committee has scheduled a hearing on the Social Security Administration appropriation for 10:30 on November 14. Commissioner Martin O'Malley is the only scheduled witness.

Why O'Malley Will Leave Office By January 20

     When I posted yesterday to give my advice about one thing the Commissioner could do before leaving office I didn't explain why he would be leaving office soon. I thought everyone knew that but it's apparent from the comments made that many don't understand so let me explain. Commissioners of Social Security have fixed six year terms. A Commissioner's six year term doesn't run from the date that he or she is confirmed. It runs until the end of the fixed six year time period. In O'Malley's case, he was confirmed with only a little more than a year left in that six year time period. O'Malley's six year term ends on Inauguration Day in January. However, after a Commissioner's six year term ends he or she can remain as Commissioner until a new Commissioner is confirmed. If Kamala Harris had been elected, this might have been of importance but she wasn't. More important than all this six year term business is the fact that a President can fire a Social Security Commissioner any time he or she chooses. That's what happened to Andrew Saul. It's extremely unlikely that O'Malley would want to hang around for the chaos of Trump II but even if he tried, he'd almost certainly be summarily fired. If you think there will be any bipartisanship in Trump II you haven't been paying attention. Thus, O'Malley will be leaving office by Inauguration Day.

    By the way, don't expect a nomination for a new Commissioner anytime soon. Both Republican and Democratic administrations have taken treated the nomination as a low priority matter.

What O’Malley Can Do Before Leaving

      There is precious little that Social Security Commissioner Martin O’Malley can do before Inauguration Day that could not be quickly undone by the incoming Trump Administration. One exception would be finally putting an end to the Eric Conn cases. There have been reports that O’Malley has planned to do something to terminate most of the Conn cases. Why not just end them all? Apart from the Chief Counsel, no one at the agency seems to have any appetite to go after these claimants any further. The politicians in Kentucky are pushing for relief for these claimants. Does anyone in Congress still want this group punished? It's time to clear this matter off the agency’s plate.

Ways And Means Republicans Oppose Recent Decisions By Commissioner Of Social Security

     From a press release issued by the Republican majority on the House Ways and Means Committee:

Four recently finalized rules from the Social Security Administration (SSA) are the latest examples of the Biden-Harris Administration’s expansion of federal power at a substantial cost to taxpayers, write House Ways and Means Chairman Jason Smith (R-MO), Work and Welfare Subcommittee Chairman Darin LaHood (R-IL), Social Security Subcommittee Chairman Drew Ferguson (R-GA), Budget Committee Chairman Jodey Arrington (R-TX), and Budget Committee Oversight Task Force Chair Jack Bergman (R-MI) in a new letter to Social Security Commissioner Martin O’Malley.

Over the next decade, these Biden-Harris rules from the SSA, which circumvent the fiscal accountability requirements of the bipartisan Fiscal Res    ponsibility Act, will add $37 billion in new, unpaid-for spending within the Social Security Disability Insurance (DI) and Supplemental Security Insurance (SSI) programs. 

The Biden-Harris Administration’s failure to offset the costs of these rules will both run up the already unsustainable national debt and further harm the financial health of the Social Security programs. Further, these rules were finalized at a time when the combined Social Security Trust Funds are expected to go bankrupt and be unable to pay full benefits in the next decade. ...

    The rules in question are:

• Expand the Definition of Public Assistance Household: Estimated 10 Year Cost: $15 billion
• Omitting Food from In-Kind Support and Maintenance Calculations: Estimated 10 Year Cost: $1.6 billion
• Expansion of the Rental Subsidy Policy for SSI Applicants and Recipients: Estimated 10 Year Cost: $837 million
• Intermediate Improvement to the Disability Adjudication Process: Including How We Consider Past Work: Estimated 10 Year Cost: $19.7 billion

Some Pics

     The Commissioner of Social Security, Martin O'Malley, visited Raleigh yesterday for an event at the Governor's Mansion to celebrate the 70th anniversary of North Carolina's Disability Determination Service (DDS). My partner and I received an invitation to the event. Here are a few pictures. 

    First, me with Commissioner O'Malley:

    Second, a picture of my partner, Crystal Rouse, with the Commissioner:

    Next, a picture of Rose Mary Buehler, the Regional Commissioner for the Atlanta Region, myself, Joseph Lytle, the Deputy Commissioner for Hearings Operations and Crystal.

    Finally, a picture of the NC DDS employees in attendance.

    The venue was not large enough to accommodate the entire workforce at NC DDS.