Astrue Supports $250 Payments

A press release from Social Security:

With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in 1975.

“Social Security is doing its job helping Americans maintain their standard of living,” Michael J. Astrue, Commissioner of Social Security said. “Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982. This year, in light of the human need, we need to support President Obama’s call for us to make another $250 recovery payment for 57 million Americans.”

The Social Security Act provides that Social Security and Supplemental Security Income benefits increase automatically each year if there is an increase in the Bureau of Labor Statistics' Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year to the third quarter of the current year. This year there was no increase in the CPI-W from the third quarter of 2008 to the third quarter of 2009. In addition, because there was no increase in the CPI-W this year, under the law the starting point for determinations regarding a possible 2011 COLA will remain the third quarter of 2008.

Some other changes that would normally take effect in January 2010 based on the increase in average wages also will not take effect, even though average wages did increase. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2010. The attached fact sheet provides more information on 2010 Social Security changes.

Information about Medicare changes for 2010, when available, will be found at www.Medicare.gov. The Department of Health and Human Services has not yet announced if there will be any Medicare premium changes for 2010. Should there be an increase in the Medicare Part B premium, the law contains a “hold harmless” provision that protects about 93 percent of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries newly entitled to Part B in 2010. On September 24th, the House passed legislation by 406-18 that would, on a fully paid-for basis, prevent abnormally large premium increases. The President is calling on the Senate to enact this legislation before it becomes too late for the Social Security Administration to update its computer systems to implement this needed change.

Update: And Max Baucus, the Chairman of the House Finance Committee, has signed onto this proposal.

President Signs On To $250 Proposal

The Hill reports that President Obama has announced his support for a proposal to give Social Security recipients a one time extra payment of $250 to make up for the lack of a cost of living adjustment (COLA) at the end of the year.

Proposed New Rule On Rep Payees

From today's Federal Register:

We propose to amend our regulations to allow a representative payee who will no longer be serving in that capacity to transfer accumulated benefit payments and interest directly to a beneficiary if we determine that it would be in the best interest of the beneficiary. This change would give us more flexibility in deciding how conserved funds should be handled in these circumstances. The change would also reduce or eliminate delays in the delivery of conserved funds to some beneficiaries.

Tanner Praises Social Security

From NWTN [Northwest Tennessee?] Today:

U.S. Rep. John Tanner, chairman of the Ways and Means Subcommittee on Social Security, praised the Social Security Administration for the success of its ongoing efforts to reduce the unprecedented backlog in disability appeals hearings.

The number of pending disability hearings declined during fiscal year 2009 for the first time since 1999. SSA projects that with adequate funding, it will eliminate the hearings backlog by the end of fiscal year 2013.

“Social Security’s disability hearings backlog has skyrocketed in recent years due to a lack of resources,” Tanner said in a press release. “This has caused untold hardship for many Tennesseans and Americans with severe disabilities who must often wait years to receive benefits for which they are eligible.

“Eliminating this backlog is a top priority of our subcommittee. We are very pleased that, due to the increased commitment from Congress and the concerted efforts of the Social Security Administration and its hard-working staff, we have finally turned the corner; the backlog is decreasing for the first time in nearly a decade.”

Social Security's First Field Office Opened Today In 1936 In Austin, Texas

OIG Report On Effects Of Backlogs

About a year ago the Chairman of the House Social Security Subcommittee asked someone at Social Security, apparently the Inspector General, about the effects of delay upon disability claimants. Social Security's Office of Inspector General (OIG) has finally produced a report in response to this inquiry. Here are some excerpts:

Of the 424 disability beneficiaries who participated in our review,

• 340 said the wait for benefits impacted their finances,
• 51 said the wait did not impact their finances, and
• 33 did not mention the wait’s impact on their finances....

Measures Taken by Beneficiaries While Waiting for Benefits -- Number of Beneficiaries

• Obtained assistance from friends, family, and charities 231
• Accrued debt 141
• Used savings 65
• Continued or returned to work 13
• Sold personal belongings (such as a car or boat) 11 ...
  

Difficult Experiences by Beneficiaries While Waiting for Benefits -- Number of Beneficiaries

• Could no longer afford home or apartment 50
• Lived in someone else’s household for free 36
• Became homeless 8
• Filed for bankruptcy 6
• Had utilities turned off 4 ...
  

Of the 424 disability beneficiaries who participated in our review,

• 127 said the wait for benefits impacted their access to medical care;
• 282 said the wait did not impact their access to medical care; and
• 15 did not mention the wait’s impact on their access to medical care....

A significant number of the beneficiaries we spoke with went out of their way to tell us the SSA staff provided good customer service. Specifically, 67 (16 percent) of the 424 beneficiaries we spoke with told us they had a good experience with SSA staff. ...

A portion of the beneficiaries we spoke with also mentioned that their wait for Medicare insurance had a significant impact on their lives. Specifically, 27 (6 percent) of the 424 beneficiaries told us they thought their wait for Medicare insurance was too long.

OIDAP Report

Update: I am bumping this up since I regard it as being of considerable importance.

A California attorney I know happened to receive -- by accident -- a copy of the draft final report of Social Security's Occupational Information Development Advisory Panel (OIDAP). I have uploaded it to Yousendit. It is available for downloading for the next week for the first 100 people. Update: Here is another link for downloading the draft final report for when the first link stops working. It is a 500 page plus PDF so expect it to take some time to download.

Although this may sound like a boring subject, it is, by far, the most important policy issue facing Social Security. An occupational information system is fundamental to Social Security disability determination. Millions of Social Security claims will be decided based upon any new occupational information system that comes out of OIDAP's work. This is the most important policy issue that Social Security has faced in about thirty years.

SSA Hiring Disabled

From an article by Reginald Wells, Social Security's Deputy Commissioner for Human Resources and Chief Human Capital Officer in Federal Times:

There is a clear business case for the federal workforce, charged with the responsibility of public service, to reflect the diverse tapestry of America. People with disabilities are part of that tapestry and arguably constitute one of the most diverse groups in our society. ...

The Social Security Administration currently has the third-highest percentage of employees with targeted disabilities among large agencies. ...

SSA Commissioner Michael Astrue established in March an initiative to formalize a continual process through which people with disabilities remain an integral part of our diversity mosaic. Branded “SSA AccessAbility: Recruiting Individuals with Disabilities,” this initiative capitalizes on opportunities for hiring as well as agencywide coordination through an established national recruitment structure. ...

As a result of increased fiscal 2009 budget appropriations as well as funds received through the American Reinvestment and Recovery Act, SSA had the opportunity to hire about 7,000 employees through August. Preliminary figures show the agency hired more than 650 people with disabilities, including more than 100 individuals receiving federal disability benefits.

Updated Fee Payment Stats

Updated information on payments to attorneys and others for representing Social Security claimants.

Fee Payments
Month/Year	Volume	Amount
Jan-09	28,423	$101,128,880.69
Feb-09	31,352	$112,791,207.17
Mar-09	29,199	$104,155,187.96
Apr-09	30,963	$110,133,425.19
May-09	36,603	$126,725,262.45
June-09	31,799	$113,962,564.84
July-09	34,802	$124,621,068.71
August-09	28,218	$100,279,282.51
Sept-09	28,455	$100,918,402.40

Results Of Last Unscientific Poll

What Do You Think Of The Nomination Of Carolyn Colvin To Become Deputy Commissioner Of Social Security?

I think it was a good choice (27)	23%
I think it was a bad choice (24)	21%
I have mixed feelings about it (9)	8%
I don't know enough about her to have an opinion (55)	48%

Total Votes: 115