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. ...
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.
... 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.
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.
... 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.
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 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.
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:
- 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. ...
The stress on Social Security employees isn't going away. They will remain overburdened indefinitely. My firm asks them to straighten out their mistakes but they don't have time to do it. It's getting to the point that I think the work isn't going to get done now. It's not going to get done later. It's never going to get done, at least not in the foreseeable future.
What kinds of mistakes or omissions am I seeing? Let me list a few:
This is a depressing, discouraging situation for an attorney like me who wants to help his clients and who wants to receive the fees he's entitled to for helping them.
Social Security is undergoing enormous stress. I think it's fair to say it's falling apart. Asking employees to work harder isn't going to solve the problem. The systems updates and IT changes the agency is making hardly help at all. Making employees come into the office every day would make little or no difference. The only solution is a lot more employees, like 10,000 more, but that might cost another billion dollars or so a year so it's out of the question now.
I don't think the message is getting through to the public or members of Congress about just how bad things are.
My only suggestion is that the agency should start closing many small field offices, which will mostly be in areas represented in Congress by Republicans. The administration needs to turn a deaf ear to the howls of protest from Republican members of Congress. You get the service you pay for. What's going on now is unsustainable.
From what I think is a press release:
Charlie, a neobank for the 62-plus demographic, is looking to solve pain points facing retirees and soon-to-be-retirees.
The fintech, which launched last week, allows account holders to withdraw their Social Security benefits up to four weeks early. The free service is available to account holders who link their Social Security direct deposit to their Charlie deposit account, said Kevin Nazemi, the fintech’s co-founder and CEO. …
I don’t understand any of this. What’s a “neobank”? What’s a “fintech”? A financial institution named “Charlie”? How can they afford to give people money weeks prior to its actual arrival? What’s the catch?
For most of the history of Social Security, all monthly payments of benefits came out on the third of each month. That changed in 1997 so that the Title II payments come out on three dates each month. The date you receive your payment depends upon the day of the month upon which you were born.
The Social Security Administration's statement at the time this change was made gives an insight into the level of service that was then prevalent at the agency. This is from a notice published by Social Security in the Federal Register on February 11, 1997 (emphasis added):
SSA’s current practice of paying 47 million beneficiaries within the first 3 days of each month results in a large surge of work during the first week of each month. This surge includes a large number of visitors to field offices and calls to our toll-free 800 number to report nonreceipt of a check, question the amount paid, or ask about other payment-related issues. Approximately 9 percent of all calls during check week concern nonreceipt, compared to 3 percent during the rest of the month. As an example of the surge that occurs around the current payment days, on April 3, 1995, 1,091,282 calls were placed to SSA’s 800 number. On April 14, 1995, the number of calls placed to our 800 number decreased to 229,022. It is important to beneficiaries and customers to be able to reach SSA with fewer busy signals, and we have pledged to enable callers to get through to the 800 number within 5 minutes of their original attempt. However, in fiscal year (FY) 1994, during peak periods, customers encountered busy signals on SSA’s 800 number 40–63 percent of the time and had to wait more than 5 minutes to get through about 30 percent of the time. ...
Our goal is for our customers to have minimal waits for service when visiting a Social Security field office. Today, SSA does not always meet this goal. In FY 1994 there were 24 million visitors to our field offices. While the average wait during check week for individuals with an appointment was 8 minutes, some individuals with appointments had to wait over 2 hours. Thirty-two percent of the visitors to our offices without appointments in FY 1994 (typically people who have questions related to their payments or who want to report payment delivery problems) had to wait more than 30 minutes after arriving to be served. The average wait during check week for individuals without appointments was 16 minutes, although some individuals without appointments had to wait over 3 hours. ...
The agency already felt it was under customer service stress way back in 1997 but the level of stress was vastly less than it is now. Adequate service has been defined downward dramatically since then.
From Incorrect Old-Age, Survivors and Disability Insurance Benefit Payment Computations that Resulted in Overpayments, an audit report by Social Security's Office of Inspector General (OIG):
... SSA makes incorrect benefit computations when employees enter the wrong information into SSA’s systems or incorrectly calculate benefits. Benefits are incorrectly computed when employees or systems base calculations on inaccurate information. When SSA detects an error or obtains accurate information, it corrects the benefits and establishes an overpayment or issues an underpayment. We focused our review on overpayments. ...
We estimate SSA could have avoided approximately 73,000 overpayments totaling more than $368 million if it had effective controls over benefit-computation accuracy. SSA’s controls did not always ensure the Agency calculated benefits accurately. ...
OK, those overpayments aren't good but what about the other side of the coin. Wasn't Social Security as likely to underpay claimants as overpay them? How many claimants were underpaid and by how much? Isn't that as least as important?
This report is a microcosm of OIG's priorities and not just under the current Inspector General -- an intense focus on overpayments with only a limited interest in underpayments, which are at least as big a problem.
For some time now I've been posting the Caseload Analysis Report issued by Social Security's Office of Hearings Operations (OHO). To their credit, OHO has been voluntarily releasing it.
I'm sure that other Social Security components produce similar reports. I'd like to see some of them. I can request them under the Freedom of Information Act (FOIA) but it would help if I knew what the reports are called. I'd be interested in the names of the operational reports for the Disability Determination Services (State Agency Operations Report?), Field Offices, Teleservice Centers and Payment Centers. The names of the reports can't be some closely held secret. Can anyone help me with just the names of the reports?
It's hard to imagine any harm to the agency in the public having a better idea of the agency's operations. It might be of help in obtaining an adequate operating budget.
From the Philadelphia Inquirer:
... Philadelphia’s Department of Human Services ... took in nearly $5 million in children’s Social Security benefits between fiscal years 2016 and 2020 that belonged to hundreds of youth in foster care, according to records obtained by Resolve Philly and The Inquirer through a Right to Know request. Then DHS swept the money into the city’s $5 billion general fund.
Around the country, the practice of DHS agencies taking Social Security benefits from kids to pay for their own foster care is under increasing scrutiny. In Maryland, a 2013 appeals court decision held that agencies violated foster children’s due-process rights when they took their benefits without informing them or their legal representatives. Maryland later enacted a law that mandates, among other things, that foster youth, or their lawyer, receive notice, allowing them an opportunity to claim the money. The law also calls for increasing amounts of their Social Security money to be set aside for them as they approach 18 years old. ...
In response to more than a dozen written questions about its practices, DHS sent a brief response that didn’t address most of the matters asked:
“When SSA appoints DHS as the representative payee, the funding is spent on youth’s daily care, such as food, clothing, and shelter. Philadelphia collects benefits as allowed by law and is open to improving its practice as it relates to this issue. To confirm, it is lawful for DHS to collect survivor’s benefits.” ...
Philadelphia DHS said it has no process in place to provide notice to youth whose money is being collected. ...
Could Social Security reform this with regulations? I don't know but if they can, they should.
Objective
To determine the effectiveness of the Social Security Administration’s (SSA) controls for resolving high-priority requests sent via the modernized development worksheet (MDW) process.
Background
Because SSA’s processing centers (PC), teleservice centers, and field offices have different processing roles and systems access, SSA employees are often required to contact other offices to request case processing assistance. Employees use MDWs, manually designated as either routine or high priority, to send requests for action to other field offices or PCs. Per SSA policy, high-priority MDW requests should be limited to situations that involve awards and disallowance of claims; start- and stop- payment actions; appeals; congressional inquiries; and public-relations issues. According to SSA’s policy, employees should follow up on unresolved high-priority requests after 20 calendar days.
From SSA’s Processing Center Action Control System, we identified 121,376 benefit records with high- priority MDWs pending at PCs as of January 28, 2020. Of these, 82,439 (68 percent) had MDWs that were pending for at least 60 days. We reviewed a random sample of 100 benefit records with high-priority MDWs pending at least 60 days.
Findings
SSA does not have effective controls for resolving high-priority requests sent via the MDW process. As a result, SSA made improper or delayed payments and inflated PC backlogs, which impeded efforts to improve customer service. For 51 of the 100 sampled benefit records, SSA did not resolve the high-priority MDWs or resolved them longer than 60 days after field office and teleservice center employees sent them to the PCs. ...
For the remaining 49 benefit records, employees (1) resolved the high-priority MDWs but did not clear them or (2) made incorrect inputs on MDW requests. We estimate SSA’s management information was inflated by over 40,000 high-priority MDWs, which further decreased the effectiveness of the MDW process. ...
So much to unpack here. Note that the systems used by the payment centers, teleservice centers and field offices don't really talk with each other very well so Social Security had to come up with the MDW process but that's not really working so well. It sounds like the system has almost completely broken down if it ever worked to begin with. Even when the MDWs are "resolved", often there are errors in the "resolution." And, oh yes, note the special treatment for "public relations issues."
This isn't a video game. Real people suffer lengthy delays in the payment of benefits owed them. Many of these problems never get resolved without frequent external pressure from attorneys representing claimants.
You can read many comments to this blog asserting that Social Security employees have been just as productive working from home as they were in the office. Some even assert they're more productive. This could be true of some components of the agency but I think it needs to be made clear that this is emphatically not the case when it comes to the agency's field offices and its payment centers where claims for Title II benefits are processed.
To assess how well these components have fared with employees mostly working from home you have to look first at workload. Workloads are down considerably. SSI claims, which are taken and implemented by the field offices, were down 29% for the time period July 2020 to April 2021. For that same time period, Title II disability claims, which are taken by the field offices and implemented at the payment centers, were down 17%. Yes, retirement claims haven't been down, but come on, we all know those take little time to process. It's the disability claims that take all the time. Despite this major downturn in workload, backlogs have soared at the field offices and payment centers.
The explanation given by some posting comments on this board for the soaring backlogs is that they can't get the work done because they normally get a lot of work done using overtime and there's been little overtime this fiscal year. While a lack of overtime certainly isn't helping, it doesn't explain the soaring backlogs. Total workyears, including overtime, for Social Security itself (not including the Disability Determination Services) were down from 64,056 in FY 2019 to 61,553 in FY 2020 and to 60,905 in FY 2021. That's a very significant 5% decline in workyears from FY 2019 to FY 2021. However, remember that workloads for the field offices and payment centers declined significantly over this time period. You should also know that the agency has been able to shift overtime hours from hearing offices to other components as hearing office backlogs have declined.
Social Security employees and their unions can give whatever explanations they want but I'm on the receiving end of the agency's services. It's obvious to me that field office and payment center backlogs have soared during the pandemic even though workloads are down. I can't think of any rational explanation other than lower productivity caused by most employees being on 100% telework.
I'm not interested in hearing:
Enough already! The work isn't getting done. The current situation isn't sustainable. Allow employees some telework but Social Security employees need to get vaccinated and to get back to the office.
Some excerpts from Social Security's budget projections (bolded) with my comments:
"The Budget would increase staffing for frontline operations including State DDSs by over 6 percent." -- You say that as if frontline staffing is your real priority but if the agency gets what's proposed, its funding goes up by almost 10% but staffing only increases by 6%.
"Over $2.7 billion for current staff, additional hiring, and other expenses for the State DDSs to make our disability determinations. This amount includes funding for 1,300 additional employees we are hiring in FY2021, an increase of about 10 percent." -- OK, so DDS staffing goes up 10%, which corresponds with the 10% increase in the budget. However, "frontline staffing" which includes DDS only goes up 6%. If I'm doing the math correctly, this means that "frontline staffing" apart from DDS goes up by a lot less than 6%.
"More than $2.1 billion for IT services funding to help us maintain and continue modernizing our large IT infrastructure, as well as increase our digital and automated services." -- The FY 2021 IT number was $1.9 billion so the projection is for an 11% increase which is a bit above the approximately 10% overall budgetary increase. However, contrast this with the 6% increase in frontline staffing and you get an idea of management priorities.
Overtime:
-- They expect to get a nearly 10% increase in funding but overtime will
be slightly less in FY 2022 than in FY 2020. How do they expect to work
off the backlogs at their field offices and payment centers? As we'll see below, the answer, at least for the payment centers, is that they don't expect to work off the backlogs.
Disability claims receipts:
-- I don't understand the FY 2021 number. There have been far fewer disability claims filed in the current fiscal year than the last so why are they saying it's up? Anyway, they're projecting a 25% increase in disability claims in the next fiscal year. That's as good a guess as any but nobody knows. It could easily be a good deal more or less than that.
National 800 number: Average speed of answer projected to go down from 15 minutes to 12 minutes. -- That still sucks
Office of Hearings Operations Production per Workyear:
-- I don't know what these numbers mean but if the are meaningful, they're saying that productivity at the hearing offices has taken a major hit during the pandemic but will soar in the next fiscal year. If these numbers mean anything, OHO employees should knock off the talk about how they've been just as productive working from home. Also, it would be nice if we had productivity numbers for other agency components.
"We plan to hire ALJs by the end of FY 2022 to ensure we have adequate resources in our hearings operations." -- I think you may need them sooner but I'm glad you're planning for this. I hope you haven't forgotten that you need additional staff to go with those ALJs. Also, remember it takes time to hire and train people.
"In FY 2022, we plan to reduce the PC backlog from 4.2 million actions to 4.14 million actions." -- That's almost no improvement in the backlog. Sounds like the payment centers aren't your priority.
In FY 2022 the agency expects to " Begin nationwide rollout of the modern HACPS that increases the accuracy and efficiency of disability case processing for our hearings offices and Appeals Council." -- What is HACP? How does it increase accuracy and efficiency?
This woman's account of how she tracked down her husband's claim for spousal benefits and got it back on track is amazing. What's amazing is that she was able to get Social Security to answer her phone calls. That's really difficult. Social Security's payment centers are almost incommunicado. Mostly, you can't even leave a message.
