Field Offices Workloads

     Below is an illustration from the testimony of Katherine Zuleger of Wausau , WI. President, Chicago Social Security Management Association, Executive Committee Member, National Council of Social Security Management Associations to the Senate Finance Committee on June 18, 2024 on Work and Social Security Disability Benefits (I can't help thinking that some of this looks like an illustration from a sex education textbook!):

Click on image to view full size

Here are what those acronyms mean, as best I know them:

• AUX -- Auxiliary claims, such as child claims
  
• CDR -- Continuing Disability Review
• CO -- Central Office 
• CSNO -- Centralized Special Notice Option (I don't know what that is.)
• ERPA -- Electronic Representative Payee Annual report
  
• GI -- I think General Information in this context
  
• MDW -- Modernized Development Worksheet
  
• MNUP -- Medicare Non-Utilization Project (to determine why an elderly person isn't using Medicare -- like maybe the person is dead.)  
  
• PSC -- Program Service Center -- where Title II benefits are computed, among other things
• RO -- Regional Office    
• RPMT --  ?
  
• TSC -- Teleservice Center -- where they answer most telephone calls to the 800 number    
  

Rep Payee Fighting Overpayment

     From WMAR:

A Maryland senior is fighting an overpayment notice from the Social Security Administration. The additional money was supposedly paid out to her brother, but now the agency is withholding her monthly retirement benefits.

“They caught their mistake and tried to collect the money, but he had passed," said Everlon Moulton, whose brother died in 2006. Moulton said shortly before then, she had become his financial representative. ...

According to a letter sent to Moulton last November, Congress passed a law permitting the Social Security Administration to collect Supplemental Security Income (SSI) overpayments from the individual's payee. The SSA identified payments to Moulton's brother, while he was still alive, that exceeded the amount he should've received. Moulton said she never used money designated for her brother and was informed that $233 will be deducted from her monthly retirement benefits until the nearly $6,900 overpayment to her brother is settled. ...

    If she only became the representative payee shortly before her brother died how did she become responsible for a debt that must have accrued before she became involved?

Answers Hard To Come By For Those Formerly In Foster Care

    From NPR:

It's been almost 45 years since Kathy Stolz-Silvis was in foster care in Pennsylvania. Stolz-Silvis was nine when her father died, making her and her siblings eligible for Social Security survivor benefits. But she didn't become aware of those benefits until decades later — after reading an investigation published by The Marshall Project and NPR. ...

"Out of curiosity, I called them to find out what happened to my benefits when I was in foster care," Stolz-Silvis said. "The person on the other end of the line told me they were not allowed to give me that information." ...

In recent months, The Marshall Project and NPR have heard from dozens of former foster youth who described similar failed efforts to learn whether a state or local agency had applied to become their "representative payee," allowing the agency to receive their federal benefits, a process permitted by federal regulations. ...

In an email, Darren Lutz, a spokesperson for the Social Security Administration, said that for those inquiring about past benefits: "We maintain records on the benefits we have paid and can answer their questions." The agency has "provided guidance and training to our employees on our rules and requirements for selecting representative payees, notifying the proper parties, and monitoring the performance of foster care agencies that serve as the representative payee for a child in foster care."

For current foster youth, Administration for Children and Families spokesperson Pat Fisher confirmed that both the agency and the Social Security Administration are developing joint guidance to state agencies about how to handle these cases, though there is no timeline for releasing it. ...

Advance Designation Of Rep Payee Form Leaks Out

      Social Security has a form to make an advance designation of representative payee but for reasons unknown to me they won’t release the form to the public. What good does it do to have the form but not release it to the public? However, a wills and estates law firm has gotten a copy and posted it online. 

What Happened To The SSA-4547 Form?

      I learned from the newsletter of the National Organization of Social Security Claimants Representatives (NOSSCR) that there is a form for making an Advance Designation of Representative Payee, the form SSA-4547. Perhaps I should say that that such a form may have once existed or that it still exists in some state of limbo. We know the agency created the form. Social Security's manual makes reference to the form. NOSSCR has a copy of the form. However, the form doesn't appear on the agency's list of forms. You can't find a copy online. It's certainly not in use. 

     So, what happened to that form? I might have some clients who could use it. I think others would too. For that matter I could possibly use it personally. I'm sure that Social Security has a staff tasked with creating and maintaining the forms needed to run the agency and they must know what happened to SSA-4547.

Would This Be Workable?

     From Florida Daily:

Three members of the Florida delegation are championing a proposal to have state courts notify the federal government when guardians are removed in order to keep them from collecting Social Security benefits.

At the end of last week, U.S. Rep. Charlie Crist, D-Fla., introduced the “Senior Guardianship Social Security Protection Act” which will direct “state courts to notify the Social Security Administration (SSA) when a court-appointed guardian is removed for cause, so they can be blocked from collecting Social Security benefits on behalf of the seniors under their care."

Two other members of the Florida delegation–Republican U.S. Rep. Gus Bilirakis and Democrat U.S. Rep. Darren Soto–are cosponsoring the proposal. ...

     I wouldn't count on getting really good compliance if this is passed.

Rep Payee Steals $516,000

     Lorene Deanda has been arrested in Sacramento, California. Deanda worked for a charitable agency. She served as representative payee for a number of Social Security recipients who couldn't handle their own money. Deanda is alleged to have stolen $516,000 from bank accounts set up for the claimants.

SSA Could Use CMS Data To Help Select Some Rep Payees

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

CMS [Centers for Medicare and Medicaid Services]data could help SSA determine the suitability of organizational payee applicants and existing organizational payees that are nursing homes. Generally, the Agency relies on information provided by organizational payees and monitoring reviews to assess 15 suitability factors. However, these sources were not sufficient in providing the Agency with reliable information to assess four of these factors. However, CMS’ nursing home data could provide SSA with useful, relevant, timely, and independent information related to 11 of the 15 suitability factors, including the 4 factors for which the Agency did not have a reliable source for evaluation. 

SSA determined that 38 organizational payees were suitable and qualified to serve beneficiaries even though CMS deemed them as chronically underperforming or assessed them the highest fines because of serious and uncorrected deficiencies. From 2012 to 2016, CMS assessed the organizational payees 1,675 deficiencies and issued them $9.5 million in penalties. Further, CMS terminated six of the organizational payees from Medicare /Medicaid for providing substandard quality care; four subsequently closed. SSA conducts monitoring reviews for organizational payees that meet certain criteria. Since 2012, SSA had reviewed 3 of the 38 organizational payees and did not identify any issues that affected their suitability. One of the organizational payees had since closed.

No Prosecution For Alleged Rep Payee Fraud

     A Richmond television station is reporting that the U.S. Attorney's Office for the Eastern District of Virginia has declined to prosecute in the case of an institutional Social Security representative payee who is alleged to have taken money from 300 mentally disabled people. The business in question is closed and the beneficiaries involved all have new representative payees but no one seems to know where the money went.

Congressional Hearing On Rep Payees

     There will be another Congressional hearing tomorrow on representative payees at Social Security. 

     I'm a bit mystified. There have been no important developments concerning representative payees. There's no clear path to Social Security doing a better job with representative payees even if they had the manpower to do so, which they don't. It's messy. It's always been messy. It's going to remain messy. It's unlikely this will attract media attention or lead to significant legislation. What's the point of the hearing?

All The COLA Adjustments

     Some excerpts from Social Security's notice of cost of living and other adjustments for 2017, which will appear in the Federal Register tomorrow:

• The maximum Federal Supplemental Security Income (SSI) monthly benefit amounts for 2017 under title XVI o f the Act will be $735 for an eligible individual, $1,103 for an eligible individual with an eligible spouse, and $368 for an essential person;
• The dollar fee limit for services performed as a representative payee remains at $41 per month ($78 per month in the case of a beneficiary who is disabled and has an alcoholism or drug addiction condition that leaves him or her incapable of managing benefits) in 2017;
• The dollar limit on the administrative-cost fee assessment charged to an appointed representative such as an attorney, agent, or other person who represents claimants remains at $91 beginning in December 2016;
• The Old-Age, Survivors, and Disability Insurance (OASDI) contribution and benefit base will be $127,200 for remuneration paid in 2017 and self-employment income earned in taxable years beginning in 2017;
• The monthly exempt amounts under the OASDI retirement earnings test for taxable years ending in calendar year 2017 will be $1,410 for beneficiaries who will attain their Normal Retirement Age (NRA) ... after 2017 and $3,740 for those who attain NRA in 2017;
• The taxable earnings a person must have to be credited with a quarter of coverage in 2017 will be $1,300;
• The monthly amount deemed to constitute substantial gainful activity (SGA) for statutorily blind persons in 2017 will be $1,950. The corresponding amount for non-blind disabled persons will be $1,170;
• The earnings threshold establishing a month as a part of a trial work period will be $840 for 2017;
• The cost-of-living increase is 0.3 percent for benefits under titles II and XVI of the Act. Under title II, OASDI benefits will increase by 0.3 percent for individuals eligible for December 2016 benefits, payable in January 2017.

This Is Outrageous

     From a recent report by Social Security's Office of Inspector General (OIG) (emphasis added):

We continue to find that SSA [Social Security Administration] needs to improve controls to ensure it pays child beneficiaries’ withheld benefits pending the selection of a representative payee. Based on our random sample, we estimate that SSA did not pay 6,615 beneficiaries approximately $9.2 million in withheld benefits.

Finally, we estimate that SSA only paid 2,423 of the 13,464 beneficiaries we identified during our 2010 audit. This occurred, in part, because SSA did not send letters to 4,233 beneficiaries and pay 214 beneficiaries who were in current pay on another record. ...

Sounds Legit: Beneficiaries Serving as Rep Payees Who Have Their Own Rep Payee

     I think the title of this report from Social Security's Office of Inspector General (OIG), Beneficiaries Serving as Representative Payees Who Have A Representative Payee, tells you the story. It's only 381 representative payees nationally who have their own representative payee, which really isn't that many considering how many representative payees there are, but it's still 381 too many.
     In fairness to Social Security, in many cases it's hard to find anyone who is able and willing to be a representative payee for an incompetent claimant.

Rep Payee Mess In Richmond

     From the Richmond Times-Dispatch:

Hundreds of seniors and disabled Social Security recipients flocked to the federal agency’s West Cary Street office on Friday for their monthly checks after a Richmond-based payee service suddenly closed, leaving many without access to their accounts.

Crossroads Inc. is a payee service that accepts Social Security checks and manages the money on behalf of clients who are unable to do so themselves.

For a small fee, the company is supposed to handle rent and other bills for its clients and budget any remaining money throughout the month.

But the Social Security Administration said it received notice on June 23 that Crossroads, located at 6800 Everglades Drive in South Richmond, had closed.

A phone recording at the service told clients to collect their monthly checks from the Social Security Administration office on West Cary Street on Friday.

Some of those waiting in line — many said they had waited more than three hours as the line wrapped around the building much of the morning — said the company still had their money from previous checks and that they had been told their accounts with Crossroads had been drained. ...

Henrico police said they are investigating allegations against the company along with other jurisdictions. ...

Stealing From The Disabled

     From the Tampa Bay Times:

The former chief financial officer of a program for disabled people admits in a court paper that he and others diverted $617,435 in Social Security payments, raiding client personal accounts for a decade to cover operating expenses.

Frank Pannullo, 69, is the third employee of the now-defunct Hillsborough Association for Retarded Citizens to enter into a federal plea agreement. ...

HARC, which had been renamed the Hillsborough Achievement and Resource Centers before it closed in 2013, ran group homes and community programs, caring for people with disabilities such as Down syndrome or Alzheimer's disease. ...

Residents had individual bank accounts. Each month, HARC deducted $637 for expenses, leaving the rest behind.

But if accumulated savings topped $2,000, clients were at risk of losing need-based Supplemental Security Income.

So HARC put away the excess in a separate, pooled account that collected about $617,435 over the course of 10 years. ...

Not long after the account's 2001 creation, Pannullo and the CEO began taking money out of it to feed HARC's operating fund, according to the plea agreement. ...

Inconsistencies In Paying Benefits To Representative Payees

     Many recipients of benefits paid by the Social Security Administration are eligible for more than one type of benefit. One example would be a widow entitled to retirement benefits based upon her own earnings and widows benefits based upon the earnings record of her late husband. If a representative payee is appointed to manage funds for the retirement benefits you'd think that the representative payee would also be managing the widows benefits. Social Security's Office of Inspector General (OIG) did a recent study to determine whether Social Security was being consistent in paying benefits through representative payees in situations where claimants are eligible for more than one type of benefit. They found much inconsistency. Tens of millions of dollars a year are being paid directly to individuals whom the agency has already found to be incapable of handling money.

Social Security Releases Advance Copy Of Proposed Regulations On Gun Control

     The proposed regulations which would provide a role for the Social Security Administration in determining eligibility to purchase firearms have not yet been published in the Federal Register. However, the agency has posted the proposed regulations on its website. They say that the Acting Commissioner signed them on April 28. I don't understand why they haven't yet been sent over for publication.

     Below are some excerpts from the proposal. Note that this proposal does not provide a right to an evidentiary hearing specifically on the issue of competency to purchase firearms. However, a claimant can appeal a determination that a representative payee should be appointed. Without a representative payee appointment the claimant's name cannot go on the list.  Hearings on representative payee appointments have been extremely rare. I've been representing Social Security claimants for 37 years and I've never done one. I've never heard of another attorney doing one. Also note that this is only a proposal. The public can comment on the proposal. Social Security must consider the comments and then obtain the approval of the Office of Management and Budget (OMB) before publishing this as final regulations. That will likely take many months. If a Republican is elected President in November these proposed regulations will probably die. Finally, note that that the proposal would only apply to some individuals drawing benefits due to disability. A person drawing retirement benefits who needs a representative payee because he or she suffers from severe dementia would not be excluded from purchasing firearms. In fact, it appears to me that an individual excluded from purchasing firearms under this proposal who ages off disability benefits and onto retirement benefits would suddenly be able to purchase firearms again even those his or her mental abilities would not have changed.

Affected individual means an individual:

 (1) Who has been found disabled based on a finding that the individual’s impairment(s) meets or medically equals the requirements of one of the Mental Disorders Listing of Impairments... and

(2) For whom we need to make a capability finding under the rules in part 404, subpart U of this chapter, or under the rules in part 416, subpart F of this chapter, and that finding is the result of marked subnormal intelligence, or mental illness, incompetency, condition or disease ...

If we report an individual to the NICS [database used to exclude certain individuals from purchasing firearms] based on a finding that he or she meets the criteria in § 421.110(b)(1) – (5), the individual may apply for relief from the Federal firearms prohibitions imposed by Federal law as a result of our adjudication...

(a) When we decide whether to grant an application for relief, we will consider:

(1) The circumstances regarding the firearms prohibitions imposed;

(2) The applicant’s record, which must include the applicant’s mental health records and a criminal history report; and

(3) The applicant’s reputation, developed through witness statements or other evidence.

(b) Evidence. The applicant must provide the following evidence to us in support of a request for relief:

(1) A current statement from the applicant’s primary mental health provider assessing the applicant’s current mental health status and mental health status for the 5 years preceding the date of the request for relief ; and

(2) Written statements and any other evidence regarding the applicant’s reputation. ...

An applicant who requests relief under § 421.150 must prove that he or she is not likely to act in a manner dangerous to public safety and that granting relief from the prohibitions imposed by 18 U.S.C. 922(d)(4) and (g)( 4) will not be contrary to the public interest....

Judicial review of our action denying an applicant’s request for review is available according to the standards contained in 18 U.S.C. 925(c). An individual for whom we have denied an application for relief may file a petition for judicial review with the United States district court for the district in which he or she resides .

Proposal For Social Security Role In Gun Control Advances

     The Office of Management and Budget (OMB) has approved a set of proposed Social Security regulations that will almost certainly touch on gun control. Apparently, Social Security will be giving information on some individuals who have been appointed representative payees to handle their Social Security benefits. These proposed regulations should appear in the Federal Register next week if Social Security follows its normal practice.

     Once the proposed regulations are published in the Federal Register, the public will be able to comment on them. The agency must consider the comments. If Social Security still wants to go ahead with the regulations, a final version of the regulations must be submitted to OMB. If OMB approves the regulations they are published in the Federal Register and soon go into effect. This process ordinarily takes many months even when there are only a few comments. In this case, there may be a large number of comments. Perhaps, enough pressure will be put on Social Security to complete action on this proposal before President Obama leaves office but I would be surprised. This proposal has moved slowly to this point. If the proposal is still pending after the election its fate will be in the hands of the new President.

     Gun advocates have argued that people with only minor problems will be denied access to firearms. I consider this argument ridiculous. In my experience, Social Security only appoints representative payees in fairly extreme situations. A few clients I've had who were assigned representative payees posed a risk of deliberately harming others. Many, many more were at risk of suicide. Almost all posed a risk of accidentally harming themselves or others if given access to firearms.

     The earlier reports suggested that the agency would create some mechanism for claimants with representative payees to appeal a decision to report them to the database used to limit firearms purchases for those with criminal backgrounds or serious mental illness. This may create a significant new workload for Social Security.

     In any case, individuals with representative payees will be unable to buy firearms. Nobody is going to seize the weapons they already own.

    Update: The White House has just issued a press release on this proposal.

Grim Report On Rep Payees

     The National Disability Rights Network (NDRN) has a contract with the Social Security Administration to review representative payees. Rep payees are appointed to help beneficiaries who are incapable of handling their own money. NDRN recently completed a report on a six month extension to their contract with Social Security which shows that things are bad and getting worse.

SSAB To SSA: We Don't Know How But You Need To Do Better On Rep Payees

     The Social Security Advisory Board (SSAB) has issued an Issue Brief on representative payees at Social Security. Rep payees are appointed to handle funds for Social Security claimants who can't manage their own money. This is one of those reports that details some problem at Social Security and then tells the agency to do better without identifying any way in which the agency can realistically do better. How quickly do you think this sort of report gets thrown in the trash by Social Security management?

     The report does include the map shown below which is interesting. Click on it to view it full size. I don't know what to make of it. Does it show a correlation with the percentage of the population that's African American? Does it show a correlation with the percentage of the population that has low educational attainments? Is it something else? Is it several things?