Conflict Of Interest?

      From the Baltimore Sun:

Congressional Democrats are investigating whether Social Security Commissioner Frank Bisignano knew — and should have disclosed — that his company stood to benefit from a huge contract overseeing a debit card program serving millions of recipients of Social Security and other programs, The Baltimore Sun has learned.

The Senate Finance Committee’s Democratic staff, led by Sen. Ron Wyden of Oregon, is exploring whether Bisignano knew during his confirmation procedures that the firm, Fiserv, had bid — or was planning to — on a pending 5-year Direct Express contract, which distributes government benefits to about 3.4 million Americans via prepaid cards, a committee spokesperson said.

Another Democrat, Connecticut Rep. John Larson, told The Sun that Bisignano’s “connection to Fiserv certainly raises questions about Treasury’s new contract. Especially as he moves to end paper checks for monthly benefits, which could push hundreds of thousands of Americans over to Direct Express, he has a responsibility to be transparent about any potential conflicts of interest.” …

The contract was awarded to Fifth Third, an Ohio-based bank, and began on Sept. 9, according to the company’s news release that day naming Money Network Financial, LLC as the program’s manager. Money Network Financial is a subsidiary of Fiserv, the company Bisignano headed as chairman and CEO until stepping down on May 6 to take over the federal agency. ….

OK, Mr. Bisignano, You Want To Reduce Payment Errors, What Are You Going To Do About This?

      From Follow-up on Dually Entitled Beneficiaries and Family Maximum Provisions, a report by Social Security’s Inspector General:

 … This is a follow up to our 2014 audit of the Adjustment of Monthly Benefits Under the Family Maximum Provisions. For our current audit, we identified 23,603 Social Security records with dually entitled beneficiaries and at least 2 other beneficiaries who had a date of entitlement of May 2013 or later and were in current pay status as of May 2023. We selected a random sample of 225 records for review.  …

We estimate SSA correctly adjusted benefits in accordance with the family maximum provisions for 15,211 of the 23,603 wage earners’ records in our population (64 percent); however, SSA improperly paid approximately $114 million to spouses and children on 8,392 wage earners’ records (36 percent). …

Social Security Always Chickens Out

     From CBS News:

The Social Security Administration said it will continue issuing paper checks to the retirement program's beneficiaries, backing away from a previously announced plan to switch all payments to electronic deposits after Sept. 30. 

On Wednesday, the Social Security Administration told CBS MoneyWatch it would continue issuing paper checks for beneficiaries, including recipients of retirement and disability benefits, who have no other means of getting payments. But the program will also emphasize the advantages of electronic transfers to its roughly 70 million beneficiaries in an effort to encourage check recipients to switch, a Social Security spokesperson added. ...

    I've seen this same scenario play out at least a couple of times before. 

Taking A Hard Line On Ending Paper Checks

      From Emergency Message EM-25040 released yesterday:

… Effective immediately, the agency will comply with the relevant legal authorities in initial claims by removing references to an option to receive a paper check and directing people who insist on a paper check to apply to Treasury for a waiver.

In compliance with the law and enforced by the recently released EO, the following changes supersede current instructions in GN 02402.001and GN 02402.005 and are effective as of the date of this publication.

1. Updates to GN 02402.001

a. Section C bullet 4 is no longer applicable and has been removed. Effective immediately, technicians should no longer offer a temporary paper check option while waiting for Treasury contact regarding enrollment in electronic funds transfer (EFT) .
b. Section C bullet 5 should read:

“As of March 1, 2013, Title II beneficiaries and Title XVI recipients must select a form of electronic payment or if they allege a qualifying exemption, then apply for a waiver. Treasury is responsible for reviewing the request and making a determination. Instruct the individual to contact the U.S. Treasury Electronic Payment Solution Center at 1-800-967-5042. Currently, SSA cannot accept a waiver application or approve a waiver request. Treasury will contact the individuals directly once they make a determination.”

c. Additionally, field offices are no longer required to maintain a list of financial institutions in their servicing area. …

      This will be much harder to implement than it sounds.

I Think He’s Wrong But What Do I Know?

      From Newsweek:

Former Social Security Commissioner Martin O'Malley is warning that benefit payments could soon be delayed for millions of Americans, citing deep staffing cuts and internal chaos at the Social Security Administration (SSA) under the Trump administration.

Speaking at a public forum in Long Island on Monday, O'Malley said he believes an interruption in payments could be imminent.

"I truly believe there's going to be some interruption of benefits for some period of time, and I believe that will probably happen in the very near future," O'Malley said, according to Long Island Press. "I've never hoped I was wrong so much in my life." …

It’s A Zero Sum Game

      From David Weaver writing for The Hill:

… The start-up administrative costs of the Social Security Fairness Act [which eliminated the Windfall Elimination Provision and Government Pension Offset] are plausibly about $200 million. When Congress was considering the full-year continuing resolution in March, it simply chose not to provide the Social Security Administration with sufficient funding to implement the law. As a result, Congress has created a zero-sum environment at the agency: additional service to one group means less service to another. 

In the months since enactment of the SSFA, the Social Security Administration has taken an additional 146,000 new benefit applications related to the new law. That means 146,000 other Americans did not have their applications considered. Additionally, the agency has had to field 450,000 calls (6,000-7,000 per day) from the public requiring agency staff to explain the new law and resolve benefit problems. That means 450,000 other Americans did not get their Social Security problems resolved.  

 

Most alarmingly, the agency’s automation efforts for retroactive payments fell short. Social Security indicated that automation would result in these payments being deposited in bank accounts “by the end of March.” After its automation runs in March, however, there were still 500,000 to 700,000 cases to be processed. These will have to be handled manually over time.   …

The Social Security Administration plans to prioritize this manual workload, but all that means is that up to 700,000 other Americans in the agency’s very large payment backlog will not have their benefit payments processed.  …

Social Security Doing A Poor Job Of Resolving Critical Issues

      From a recent report by Social Security's Office of Inspector General:

Objective
To determine whether employees submitted and processed Manager-to-Manager (M2M) requests in accordance with Social Security Administration (SSA) policy.

Background
When a field office (FO), processing center (PC), or teleservice center employee identifies a critical issue for a beneficiary that requires another office’s action, managers can expedite action for the beneficiary by initiating an M2M request. Managers should only use M2M for high priority requests, such as beneficiaries who have terminal illnesses; made homicidal, suicidal, or potentially violent behavior threats; or are in dire need situations, such as facing eviction or homelessness.

Given the critical nature of M2M requests, FO and PC employees must address them within 5-business days or provide an interim reply to the requesting manager explaining the delay.
We reviewed a random sample of 100 M2M requests: 50 in a “resolved” status from June 1, 2021 through June 1, 2023 and 50 in a “pending” status as of June 1, 2023.

Results
SSA employees generally submitted M2M requests according to SSA policy; however, they did not always follow policy when they processed M2M requests. Of the 100 M2M requests we sampled, FO and PC employees did not process 57 requests according to policy.

• For 48 requests, FO and PC employees did not process them timely, resulting in delays in employees addressing critical issues and beneficiaries waiting weeks or months to receive the benefits they were due. 
  

• For 9 requests, PC employees placed them in a “resolved” status in the M2M application before completing all necessary actions to address the requests.
  

SSA managers provided reasons for delays, and we identified control weaknesses that contributed to delays, such as: (1) case complexity; (2) insufficient communication between offices, including no notifications in the M2M application when employees take action on requests; and (3) the absence of controls that prevent employees from prematurely closing M2M requests.  ...

    This is the sort of thing that drives me and other Social Security attorneys crazy We can't get problems resolved.

Trump Orders End To Treasury Issued Paper Checks

     I missed this one. Last week Trump ordered an end to Treasury issued paper checks as of September 30 of this year. 

    I think it's better than 95% of Social Security claimants who receive their benefits by direct deposit now but there are those who still need paper checks. One important group who still need paper checks are claimants who have lacked the funds to keep a bank account open while they wait months and years for their Social Security disability claims to be approved. They're only too happy to receive their payments by direct deposits once they have money to put in an account but not for that first check or two.

    Yes, I know there are benefit cards but the fees on those are ridiculous. More important, most folks still have a bank account when they file their Social Security disability claim but later have to close the bank account because they're broke so they won't be set up for a benefit card. 

    We'll see how this plays out. In theory, they aren't supposed to be paper checks even now but circumstances on the ground don't match up with what armchair theorists think possible. A little leeway is needed.

“Fraudsters”?

      Trump’s Commerce Secretary says that if Social Security payments don’t get paid that the ones who would complain the most are “fraudsters.”

O’Malley Predicts Benefits Interruption

      From CNBC:

Social Security has never missed a benefit payment since the program first began sending individuals monthly benefits more than eight decades ago.

But the recent actions at the U.S. Social Security Administration by Elon Musk’s so-called Department of Government Efficiency are putting monthly benefit checks for more than 72.5 million Americans at risk, former commissioner and former Maryland governor Martin O’Malley told CNBC.com.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”

     For the record, I’m pretty sure that O’Malley is wrong on the threat of interrupted benefits. Social Security does not initiate payment of benefits nor does it even maintain the database of those who should be paid. The Department of the Treasury does that. Social Security just gives Treasury new info — people to be added or subtracted from the list.  Treasury does the rest. So unless Treasury is itself terribly affected they will continue to make the payments. It’s just that they may be making less accurate payments including, ironically, paying some dead people who should have been cut off benefits.

Implementation Of WEP/GPO Elimination

     I've sorta asked the question before but never received what I thought was a definitive answer. To what extent will the elimination of WEP/GPO require manual recomputations? How much of this can be done through IT? These are important questions.

    If there will be manual recomputations, I'm going to be upset if they take priority over Social Security straightening out my clients' windfall offsets and workers compensation offsets and other such routine issues. The WEP/GPO people can take their turn in line like everybody else. If it takes six months or longer, and it will if these folks aren't granted priority, welcome to the reality of what the Social Security Administration is today.

SSA In The Middle

      From WKBN:

Some Ohio seniors say they are getting their Social Security payments garnished for COVID-19 Small Business Administration (SBA) loans they say they did not take out. 

Congressman Michael Rulli, R-6th District, is looking into the problem since he has learned of at least four cases of this happening to seniors in his district. His team said they are looking into these individual cases and have an issue with the SBA putting the burden of proof on seniors instead of the SBA, who Rulli accuses of having a “lackluster handling” of identity theft with the program.

Rulli said one message to his office involved a constituent who said that two SBA loans were fraudulently taken out in their name in 2021. That person said they provided SBA with the documents they requested, such as a police report and identification, in August 2024 and has yet to receive a response. …

     I don’t know what the process is like at SBA but there’s no way to contest this sort of thing at Social Security. 

Why Change?

     A tweet from Social Security:

Starting October 2024, SSI check recipients will receive their SSI checks in a WHITE envelope instead of a BLUE envelope. It’s quick and easy to get your payments electronically. ...

     Yes, there are still SSI claimants receiving paper checks. Unfortunately, they are, on the whole, a group of people who can be confused by small things.

What About The "Third Signature" Problem At The Payment Centers?

     Yesterday, we heard that Social Security was increasing the amounts of SSI benefits that could be authorized by appropriate employees at agency field offices without approval from a supervisor. This cuts down on the number of times that a "second signature" is required before a payment can go out. That helps but I think the bigger problem has been with Disability Insurance Benefits and other benefits under Title II of the Social Security Act. Individual benefits authorizers at the Title II payment centers can only approve so much without obtaining a "second signature" and if the amount goes even higher a "third signature" is required and that can take several months. They never announce these limits but I think the "third signature" threshold has been something like $50,000. A claimant with a high Primary Insurance Amount can get up to this limit with only a little over a year of back benefits. Is something being done about the Title II problem? The situation with the "third signature" cases is terrible. With inflation and higher agency backlogs there are more of the "third signature" cases. These cause severe backlogs. If you're going to do something about the SSI cases you certainly ought to do something about the Title II cases.

SSA Trying To Improve Payment Of Back SSI Benefits

     From a Social Security blog:

... Underpayments, typically back payments from the time of applying for SSI to the date the application is approved, represent money we owe for months past. People waiting on approval of SSI can experience economic insecurity while they wait for a decision.

In fiscal year 2024, our agency prioritized addressing the barriers that prevent timely payment of underpayments, not a large share of the total payments we administer under the SSI program (less than 1% annually). Overall, the SSI program has released $901 million in underpayments as of June 2024, which includes $209.1 million of our most complex and aged underpayments to roughly 81,000 people, who count on SSI as a vital lifeline. We are committed to finding solutions to challenges, such as peer reviews and installment and dedicated account processes, that have hindered timely payments.

 This year we updated a policy that required underpayments over $5,000 to be reviewed by another employee – a peer review – before we released the underpayment. In March 2024, we increased the amount from $5,000 to $15,000. Underpayments less than $15,000 can now be released without peer review. This policy change means the time it takes for SSI recipients to receive their first installment is now dramatically reduced. ...

    I wish I could say that I'm seeing improvement in this situation but I'm not. I've got a ton of backed up SSI cases awaiting payment and I see little movement. If your case gets even the least bit off the tracks, it's almost impossible to get it back on the tracks. We can't get the field offices to answer the phone. When they do answer the phone, we tell them about the problem but then nothing happens. It's a frustrating situation for us but horrific for the claimants. I'm sure it's discouraging for Social Security employees as well.

I Thought That Job One At The Payment Centers Was To Pay People

     From Reducing Processing Centers’ Pending Actions, a report by Social Security's Office of Inspector General (OIG):

...  SSA met its annual PC [Payment Center] pending actions performance measure goal in 4 of the 6 FYs [Fiscal Years] between FY 2018 through 2023. SSA reported it did not meet its goals in the remaining 2 FYs because of unexpected staff reductions, increased workloads, and less than expected overtime funding it would have used to pay employees to process more PC pending actions.

Although SSA achieved its PC pending actions performance goals in 4 of the last 6 FYs, there was no overall reduction in PC pending actions over those 6 years. In fact, the PC pending actions backlog increased from 3.2 million in FY 2018 to 4.6 million in FY 2023. As the backlog grows, many PC pending actions remain unresolved for long periods of time. From a sample of 139 pending actions, 102 (73 percent) were pending for 300 days or more, with 60 of the 102 pending for 500 days or more.

Delays in processing PC pending actions can lead to higher improper payments, which increased some beneficiaries’ financial burden as they waited longer for underpayments or were charged with increased overpayment amounts. If SSA resolved the PC pending actions we reviewed at the earliest possible instance, we estimate it would have determined approximately 528,000 beneficiaries were improperly paid approximately $534 million. After the pending actions were not processed for 12 months, the improper payment amount for those same beneficiaries rose to approximately $756 million. By the time of our review, many of the PC pending actions had been pending for longer than 12 months, and the improper payment amount had increased to approximately $1.1 billion.

    Notice that it didn't seem to bother OIG that the payment centers were frequently failing to pay benefits for long periods of time. The only thing they seemed to have been concerned about was an increase in overpayments. This in a nutshell is the OIG outlook on the Social Security world -- It doesn't matter when or if you pay claimants what they're due; the only thing that counts is that you not overpay them. That outlook is a prescription for disaster for claimants.

Some Help On SSI Payment Backlogs

    From Emergency Message EM-24009:

... Since May of 1992, a prepayment review is required for any SSI case (initial or post eligibility), if an underpayment (UP) of $5,000 or more is due through the month prior to the current computation month (CCM) as per SI 02101.025 - Basic Requirements of Supplemental Security Income (SSI) Underpayment (UP) Review (ssa.gov). Effective 03/16/2024, the amount of an SSI underpayment that requires a prepayment review will increase from $5,000 to $15,000. ...

    This should help reduce the SSI workloads a bit. The SSI effectuation backlogs are a major problem.

    I wonder whether something like this is planned for the Title II payment centers. Certainly the larger payments are a source of major delay. If you've been a high wage earner you could be looking at many months of delay before you're paid your back benefits. Would they announce that sort of change? Emergency messages generally don't concern truly emergent matters. They concern matters the agency believes are important -- that they want the public to be aware of. The agency isn't all that consistent in what it announces via EMs.

SSAB Study On Effectuation Of Disability Benefits

     The Social Security Advisory Board (SSAB) has done a study on Effectuation of Disability Benefits. It shows that there have been major increases in the time it takes to effectuate disability benefits, particularly SSI benefits. These delays are cruel. The claimant has already been found disabled. He or she is poor enough to qualify for SSI yet must wait many months to receive their benefits. That's wrong.

    Below are a couple of charts from the report showing what has happened. Note that the SSAB couldn't obtain good data from Social Security. They had to rely upon data from a large non-attorney representative group. That tells you that this hasn't been enough of a priority at Social Security to even collect good data on it. In addition to giving us an idea of the scope of the problem, the data also gives us an idea of the size of that non-attorney representative group.

A $500,000 Underpayment?

    From Newsweek:

A Kentucky woman said she is owed more than $500,000 after the Social Security Administration began underpaying her in the 1990s.

Wyonia Butler, 65, worked as a nurse in the 1990s, but at the young age of 32, she was injured on the job and wound up unable to work. ...

While Butler said she initially received workers' compensation, the payments ceased after just seven months. ...

In June of 1997, Butler received a letter saying she would get only 80 percent of her earnings due to the workers' compensation, despite the payments having stopped. That totaled $1,620 taken out of her benefits, which has easily surpassed $500,000 in lost money today.

While Butler immediately went to correct the error, confirming that she did not receive any workers' compensation anymore, the past 27 years have left her without answers and a heavy hit to her financial situation. ...

She initially received a letter saying they needed to secure more information and she needed to complete a few forms. She mailed them out and followed up but was told the forms were in backlog. The SSA representatives she spoke to said they weren't sure why her account still said she receives workers' compensation. ...

"I did as I was asked," Butler said. "However, to this date, it's never been done or addressed. They are still withholding $1,625 out of my check every month. I called, of course, and was told each time to be patient, it's being worked up."

After five years of failing to get answers, Butler said she stopped. It was affecting her health, but 27 years later, she still is unsure where a half-million dollars is and why it's been withheld from her. ...

In the meantime, Butler said she has been deprived of at least $500,000 in payments and lost her farm. ...

"I should have continued every day until I got an answer," Butler said. "I should have called more. Due to health reasons, I had to stop. I did call last year and this year. The line just rings and rings."

She received a denial of reconsideration after five months despite having immediately corrected the Social Security error. ...

    What happened here? I think the most likely explanation is that Ms. Butler was receiving her full, unreduced benefits. She thought her payment was reduced by the workers compensation offset but she was just confused about how much she was owed each month. She was certainly confused about what that 80% that she heard something about meant. It's complicated but while 80% is part of the workers compensation offset, it doesn't mean that there's an 80% reduction. The actual reduction could be more or less than that. Even though Ms. Butler seems confused -- as well she should be since this is all so complicated -- there is the real possibility that she has been underpaid all these years. Social Security has a hard time administering the complex workers compensation offset. I don't think that Social Security would deny that they make a lot of workers compensation offset mistakes but 27 years of mistakes is at the extreme end of what would be imaginable.

    If I were representing her, I'd like to see that reconsideration determination she received and I'd like to know what she did after receiving it. I'd like to see any other paperwork she has. Was there a settlement of her workers compensation case with a lump sum benefit payment? Was this paid by an annuity? Did her benefit payments change when she turned 62? If it did, that would suggest that the agency was still applying the workers compensation offset until then. I'm not going to explain why age 62 matters other than to say that I'm talking about the RIB-DIB election. If you don't know what the RIB-DIB election is, you don't know enough to be commenting on any of this.

Equite Action Plan Report

     The Social Security Administration has recently issued its Equity Action Plan: 2023 Update. It sounds like they're about a year behind in getting this out. It's full of vague, largely unmeasurable goals. Look at it yourself but what I've pulled  out below is all the content that I can find that seems vaguely interesting to me, at least:

• ... In FY 2023, to restore SSI applications closer to pre-pandemic levels, we launched a new SSI “Basic Needs” campaign in support of our FYs 2022-2023 Agency Priority Goal (APG) to increase SSI applications nationwide by 15 percent and increase applications from underserved communities by 25 percent, 1,758,656 and 127,749 applications, respectively. We have seen an increase in the overall number of SSI applications, nationally and in underserved communities. Since the campaign launched:

a. Our digital marketing tactics generated 1.81 million referrals from our SSI website to the online SSI Protective Filing tool, yielding 345,000 SSI applications through September 3, 2023. The tool allows individuals and third-party helpers to establish a protective filing10 online and request an appointment to file for benefits.

b. Our marketing generated more than 1.9 billion impressions across all tactics and over 2.7 million website visits.

c. Through September 29, 2023, we exceeded our APG target for SSI applications in underserved communities relative to the 2021 baseline by receiving nearly 135,000 applications. ...


• In May 2023, we established the Office of Transformation (OT), which includes our Customer Experience (CX) team. The OT’s mission is to facilitate the most critical business enhancements that serve the public and support our frontline employees. ...
• As of August 23, 2023, there were about 220,000 pending [SSI] underpayments, of which more than 140,000 underpayments (with corresponding alerts) have been pending for a year or more or are priority cases. ...
  

    I can be critical of the vagueness of the report but in an organization as large as the Social Security Administration a 1% improvement in service which might seem trivial to me could still improve the lives of a not insignificant number of people. We'd all love to see transformative changes but with current levels of funding all that's possible are the tiniest baby steps.