Even AEI Thinks Social Security Was Well Run — Until January 20, 2025

      From the right wing think tank American Enterprise Institute:

Here in the DOGE era, the specter of inefficient bureaucracy haunts many government agencies. Yet the Social Security Administration (SSA) offers a surprising counter-narrative—at least in parts. As civil servants go, those administering retirement benefits are a relatively efficient bunch, according to AEI scholar Mark Warshawsky, who until 2021 served as the agency’s deputy commissioner for retirement and disability policy. 

As he tells in a new podcast, “I would say, in terms of the retirement side, it is a well-run program.” The Internal Revenue Service efficiently collects payroll taxes and administers benefit taxation, while disbursements flow with minimal leakage through fraud or processing errors. This efficiency is all the more remarkable given the program’s gargantuan scale—some $1.3 trillion in annual benefits.

Less efficient, Warshawsky goes on to explain, is the Disability Insurance part of Social Security. It demands substantially more administrative resources, with means-testing, medical evaluations, and ongoing eligibility verification creating a bit of a bureaucratic morass. Likewise, the Supplemental Security Income program is also particularly cumbersome, requiring detailed scrutiny of both income and assets.

Recent criticisms of the agency seem overblown, however. Claims about payments to long-deceased beneficiaries are demonstrably false. The SSA employs robust verification mechanisms, including automatic investigation of nonagenarians without recent medical claims and outright benefit denial for anyone claiming to exceed 115 years of age. …

DOGE Strikes Again!

 

From the Washington Post

What Could Go Wrong?

     From Wired:

The so-called Department of Government Efficiency (DOGE) is starting to put together a team to migrate the Social Security Administration’s (SSA) computer systems entirely off one of its oldest programming languages in a matter of months, potentially putting the integrity of the system—and the benefits on which tens of millions of Americans rely—at risk.

The project is being organized by Elon Musk lieutenant Steve Davis, multiple sources who were not given permission to talk to the media tell WIRED, and aims to migrate all SSA systems off COBOL, one of the first common business-oriented programming languages, and onto a more modern replacement like Java within a scheduled tight timeframe of a few months. ...

SSA’s core “logic” is also written largely in COBOL. This is the code that issues social security numbers, manages payments, and even calculates the total amount beneficiaries should receive for different services, a former senior SSA technologist who worked in the office of the chief information officer says. Even minor changes could result in cascading failures across programs.

“If you weren't worried about a whole bunch of people not getting benefits or getting the wrong benefits, or getting the wrong entitlements, or having to wait ages, then sure go ahead,” says Dan Hon, principal of Very Little Gravitas, a technology strategy consultancy that helps government modernize services, about completing such a migration in a short timeframe.

    You may recall that Frank Bisignano testified at his confirmation hearing that COBOL was still widely used in business and that its presence at Social Security was nothing to be too concerned about. 

Dudek Walks Back Some Of What He Told The Court! (In Case Dudek Doesn't Know, That's Not Cool)

     Also, the Court was not impressed with the argument that DOGE needs access to non-anonymized data in order to find patterns of fraud when they have no evidence that a pattern of fraud exists. Find it first and then those involved can be identified. 

DOGE Trying To Get Back In Social Security Databases

     The Social Security Administration is asking Court approval to let DOGE team members back in to the agency's databases. If these DOGE employees employees actually do what they say they're going to do all but one of them, at best, will be engaged in a ridiculous waste of time. I thought they were trying to root out wasteful behavior, not engage in it. See below and, as always, click on the image to view full size:

 

OK Mr. Whiz Kid, Make It Work Better

 

    From Popular Information:

The Trump administration has installed a DOGE operative as the new Chief Information Officer (CIO) of the Social Security Administration (SSA) in an apparent effort to evade a federal court order blocking DOGE affiliates from accessing databases containing the sensitive personal information of millions of Americans. 

Popular Information obtained an internal memorandum from Acting SSA Commissioner Leland Dudek announcing Scott Coulter, a DOGE operative previously assigned to NASA and the SSA, as the SSA's new CIO. 

The move, which was not announced publicly, seems related to a federal lawsuitfiled by a coalition of labor unions — including the American Federation of State, County and Municipal Employees (AFSCME), AFL-CIO, and American Federation of Teachers (AFT) — on February 21. The lawsuit alleged that DOGE officials were accessing "personal, confidential, private, and sensitive data from the Social Security Administration" in violation of federal law, including the Privacy Act. The labor unions sued the SSA, Dudek, and then-CIO Michael Russo to stop the disclosure of the data to DOGE. 

On March 21, the federal judge overseeing the AFSCME case, Ellen Lipton Hollander, granted the plaintiffs a Temporary Restraining Order (TRO) which prohibited SSA, Dudek, and Russo from "granting access to any SSA system of record containing personally identifiable information" to DOGE or any "members of the DOGE team established at the SSA." The order defined the DOGE team at SSA as "any person assigned to SSA to fulfill the DOGE agenda." …

     I’ll say this. The longer Coulter hangs around Social Security the fewer illusions he’ll have about the agency.  At this point DOGE’s illusions about Social Security may be a bigger threat than its malevolence.

Senate Republicans Say “Don’t Blame Us”

      From NBC News:

WASHINGTON — Elon Musk’s Department of Government Efficiency is moving to downsize the Social Security Administration with office closures, cutbacks on phone services and new rules requiring in-person visits for some prospective beneficiaries to register.

And DOGE is making those changes without consulting or notifying some of the most senior lawmakers on Capitol Hill who oversee Social Security, including GOP allies of President Donald Trump. …

Sen. Steve Daines, R-Mont., a Senate Finance Committee member who on Tuesday pressed Trump’s nominee to lead the Social Security Administration about long wait times for customer service, said in an interview that he, too, hasn’t been in the loop for the administration’s changes.

“No, we haven’t,” he said. “I haven’t had any heads-up on any specific announcements.” … 

     If there were only something these Senate Republicans could do, like delay a nomination or hold a hearing on what DOGE is doing, but, of course, that’s out of the question. 

Chaotic Conditions At Social Security -- But Maybe The Post Office Will Help

 

    From the Washington Post:

The Social Security Administration website crashed four times in 10 days this month, blocking millions of retirees and disabled Americans from logging in to their online accounts because the servers were overloaded. In the field, office managers have resorted to answering phones at the front desk as receptionists because so many employees have been pushed out. But the agency no longer has a system to monitor customers’ experience with these services, because that office was eliminated as part of the cost-cutting efforts led by Elon Musk. ...

Depending on the time of day, a recorded message [on the 800 line] tells callers that their wait on hold will last more than 120 minutes or 180 minutes. Some report being on hold for four or five hours. A callback function was only available three out of 12 times when a reporter for The Post called the toll-free line last week, presumably because the queue that day was so long that the call would not be returned by close of business. ...

On Monday, Dudek said the agency is working with U.S. Postal Service on an agreement to take on new requirements to verify claimants’ identities. ...

Meanwhile, a DOGE-imposed spending freeze has left many field offices without paper, pens and the phone headsets staff need to do their jobs communicating with callers — at the exact moment phone calls are spiking, the employee in Indiana said.

The freeze drove all federal credit cards to a $1 limit. Social Security saw the number of its approved purchasers reduced to about a dozen people for 1,300 offices, said one agency employee in the Northeast.

...

DOGE Can’t Find Fraud

      The Washington Post has a nice article about the fruitless DOGE efforts to find fraud at Social Security. It discusses a special recent effort to contact recipients over 100. It says there were only 1,294 of them. That number sounds far too low to me.

Hear, Hear. Seriously, Listen To This

      Take a listen to this 31 minute podcast interview with Laura Haltzel, a former Associate Conmissioner at Social Security who left the agency over the horrible changes brought about by the Trump Administration. Her testimony about the horrible pressures placed on agency employees is especially striking.

     Haltzel should be lauded for her bravery in speaking out. The Trump Administration has dealt with its critics in extraordinary brutal ways.

Judge To Lee Dudek: Quit Being An Ass

 

Dudek Threatens To Shut Down Agency Over Court Ruling

       From Bloomberg:

The Trump administration is threatening to all but shut down the Social Security Administration in response to a judge’s ruling blocking activities by Elon Musk’s Department of Government Efficiency — an action that could delay payments to millions of beneficiaries caught in the middle of the legal battle.

Acting Social Security Commissioner Leland Dudek said the temporary restraining order issued Thursday is so broad in blocking access to data by “DOGE affiliates” that it could apply to any Social Security employee.

“My anti-fraud team would be DOGE affiliates. My IT staff would be DOGE affiliates,” Dudek said. “As it stands, I will follow it exactly and terminate access by all SSA employees to our IT systems.” …

“In an 134-page decision, a radical leftist-judge ordered Social Security Administration employees not to implement the President’s government-efficiency agenda,” said White House deputy press secretary Harrison Fields. “This is yet another activist judge abusing the judicial system to try and sabotage the President’s attempts to rid the government of waste, fraud, and abuse.”  …

TRO Prevents DOGE Access To Confidential Social Security Records

      The United States District Court for the District of Maryland had granted a Temporary Restraining Order (TRO) in a lawsuit filed by a labor union concerning DOGE access to records on Social Security claimants. This access is now blocked.

The Actual Scope Of The Problem And The Sophisticated Efforts To Deal With It

     A press release from Social Security's Office of Inspector General:

Receiving accurate reports of death is a major and ongoing concern for the Social Security Administration (SSA). A recent report by the Office of the Inspector General (OIG) illustrates the need for SSA to continue to improve its death reporting processing systems.

According to the report entitled, “Rejection of State Death Reports,” from November 2018 through October 2022, states throughout the country submitted about 13.7 million death reports to SSA. SSA’s Death Information Processing System (DIPS) accepted about 12.2 million and rejected nearly 1.5 million (11 percent) state death reports. SSA OIG determined that SSA rejected over 1.4 million state death reports that did not pass DIPS verification checks. SSA uses DIPS to verify the death information it receives. DIPS rejects death reports that do not pass its verification checks to prevent posting erroneous death information to SSA records.

It is only after death information passes DIPS verifications that SSA records the information to the Numident (a database that stores information for all Social Security numberholders) and terminates payments to deceased beneficiaries. The verification checks prevented DIPS from posting incorrect or duplicate death information to SSA records for approximately 773,000 of the 1.4 million death reports submitted by states.

However, SSA OIG reported an estimated 702,000 of the 1.4 million state death reports that were rejected contained valid death data but did not pass DIPS verification checks. DIPS rejected most death reports when it detected a verification date submitted by the reporter was different than the latest verification date in SSA’s records. When this occurs, DIPS rejects the report without validating whether the reported death information is correct. This delays posting of the date of death to the Numident and payment records and results in continued payments to deceased beneficiaries until SSA receives and processes the death information.

This issue led to improper payments to beneficiaries of $327 million and could lead to an additional $108 million over the next year if SSA does not add death information to payment records for beneficiaries in current payment status. Moreover, SSA employees must manually process the rejected death records. It is estimated it will require SSA employees to spend 199,000 hours to process this workload, costing $12 million in administrative expenses. OIG made three recommendations to improve the accuracy of the death information in its records to which SSA agreed. See the full report here.

    These things are vastly more complicated than DOGE can imagine.

Creating Obstacles For The Sake Of Creating Obstacles?

       From the Washington Post:

The Social Security Administration is considering adding a new anti-fraud step to claims for benefits that the agency acknowledges would force millions of customers to file in person at a field office rather than over the phone, according to an internal memorandum.
The change would create major disruptions to Social Security operations, the memo said, and could cause particular hardship for elderly and disabled Americans who have limited mobility. Elon Musk’s U.S. DOGE Service also has announced plans to cut thousands of agency jobs and close dozens of regional and local Social Security offices.
Those applying for retirement and disability benefits by phone would be required for the first time to authenticate their identity through an online system that the memo refers to as “internet ID proofing.” But if claimants can’t verify their identity online, they would have to provide documentation in person at a field office, according to the memo, which was viewed by The Washington Post. The document was sent last week by Doris Diaz, acting deputy commissioner for operations, to acting Social Security commissioner Leland Dudek.
 …

The memo estimates that 75,000 to 85,000 customers per week would be diverted to local field offices because many of the elderly and disabled people that Social Security serves would be unable to complete a new identity verification requirement online.
“Increased challenges for vulnerable populations,” “longer wait times and processing time,” “increased demand for office appointments” and “increased foot traffic” at local field offices are the kinds of service disruptions the memo warns would happen if the change is implemented — as well as legal challenges and “operational strain.” ..

Only About 3,000 SSA Employees Have Accepted Buyouts

     From MSN:

The Social Security Administration’s plans to reduce its head count have resulted in more than 2,000 workers so far. 

Of the 2,674 employees who accepted the voluntary separation incentive payment — which provides workers with a one-time payment to leave government service — before the March 14 deadline, 2,477 employees are confirmed to be eligible, the Social Security Administration said.  ...

 Employees could have also participated in the Deferred Resignation Program, or DRP, which was available until Feb. 12 to any employees in “non-mission critical” positions. Those workers — 345 eligible employees accepted the offer — were placed on paid administrative leave until Sept. 30. After that, they “must leave the agency,” the SSA said on its website. ...

Workers are also moving within the agency. The SSA offered employees the opportunity to “volunteer to be reassigned from a non-mission critical position to a local field office, teleservice center, processing center, payment center, workload support unit, or hearing office,” which also had a March 14 deadline. More than 2,200 employees will be reassigned on a “flow basis” and will receive training for these position changes, the SSA said. 

    I don't want to see the agency losing any good employees but this report is much better than I feared. 

    Here's the agency's announcement on this.

“Improvise Your Way Out”

      From the New York Times:

When Eleanor H., 66, called the Social Security Administration last month seeking details about her retirement benefits, she didn’t expect to comfort the representative who answered. The woman started sobbing.

“I asked her what was wrong, and she said she and her co-workers were informed by email to accept a taxable $20,000 payout or risk termination,” said Eleanor, who lives in New Jersey (she asked to use only her first name out of privacy concerns).

The rep still answered all of Eleanor’s questions. “Through her tears she said, ‘What am I going to do?’” …

[I]n recent weeks, the Trump administration, led by Elon Musk’s crew of cost cutters at the Department of Government Efficiency, or DOGE, has taken its chain saw to the agency’s operations. …

Michael Astrue, a former agency commissioner appointed by President George W. Bush, said it appeared that Mr. Musk has imported the strategy he used when he bought Twitter, “where you go into some place established, level it and then figure you’re going to improvise your way out,” he said, speaking at a briefing on Thursday held by the National Academy of Social Insurance. “It’s extremely destructive.” … 

Jason Fichtner, who held several positions at the agency, including deputy commissioner and chief economist, put it even more bluntly at the briefing. “It’s more like a drunk operating a wrecking ball,” he said. …

Gracias, Indeed

      From the New York Times:

A private equity investor who is one of Elon Musk’s closest confidants has taken a new role in the Social Security Administration, a development that could be politically combustible given the program’s popularity with voters and Mr. Musk’s apparent intent to make major changes at the agency.

The investor, Antonio Gracias, who has served on the boards of Mr. Musk’s businesses Tesla and SpaceX, has started a job at the administration as part of the Musk-led cost-cutting effort known as the Department of Government Efficiency, according to documents seen by The New York Times and two people informed about his appointment.

Of the more than 50 people who have joined Mr. Musk in Washington, almost none have as extensive a history with him as Mr. Gracias. The men met around two decades ago and in that time, Mr. Gracias has become one of Mr. Musk’s most trusted advisers. ...

The involvement of such a close ally with the Social Security Administration suggests that Mr. Musk has made overhauling the agency a priority; in recent weeks, the tech billionaire has regularly talked about supposed fraud inside the system. Two weeks ago, he referred to Social Security as “the biggest Ponzi scheme of all time,” and this week he claimed that fraud in the program and other major entitlement spending was “the big one to eliminate.” ...

    Trying to privatize Social Security was such a big success for George W. Bush, why shouldn't Trump go for it?

Who Are Those DOGE Operatives At Social Security?

      Wired reports on those 10 DOGE operatives embedded at Social Security. There’s nothing reassuring about the report.

     People whose educational backgrounds have been in STEM are essential to the economy but, in general, they have no business in management. Their backgrounds are just too limited. Sure, there are exceptions but previous few when you’re talking about people as young as those assigned to Social Security.

They May Seem Like Traitors But They’re Just Idiots

      From Government Executive:

A proposal to ban payments to people without Social Security numbers is circulating at the Social Security Administration, according to two employees. If implemented, the move could affect thousands of beneficiaries receiving retirement, disability and low-income benefits from the agency.  

An SSA memo obtained by Government Executive notes that the agency currently can, at times, make someone a representative payee even if they don’t have an SSN. The payee, Romig noted, is not required to be eligible for benefits themselves.F 

The new policy proposal would bar any payments to payees without SSNs, of which there are currently more than 170,000, according to the document. The Social Security Administration did not respond to a request for comment Thursday.   

One large group that could be affected by the proposed change would be children receiving Supplemental Security Income or disability benefits whose parents don’t have an SSN. Others impacted could include widows and other survivors of dead Americans living overseas.  …

The agency needs to confirm that it has the authority to make this change, the memo notes. If SSA moves forward, it would need to “work” the thousands of cases, contacting the payees to submit a SSN or change the payee altogether to someone that has a number. 

That task could be arduous, as finding payees is already so difficult that at times the agency turns to institutional payees like child welfare agencies, said Romig. SSA staff also have to assess the suitability of payees.  …

[Former Commissioner] Astrue, discussing the increased risk of a cybersecurity failure in light of DOGE operatives’ access to sensitive SSA databases, urged the Senate Finance Committee to move swiftly on the nomination of Frank Bisignano to lead the agency, noting “he can’t possibly be any worse” than Dudek, who was being investigated for improperly sharing information with DOGE when he was put in his current role. 

“I don’t attribute being a traitor to these people—I am attributing to them being idiots and not knowing what they’re doing,” he said. …