Social Security's Top Ten Contractors

Courtesy of FedSpending.org here are the top contractors at Social Security for fiscal year 2009, which ended on September 30, 2009:

IBM CORP.	$44,762,855
CA INC	$31,033,053
VION CORP	$20,268,560
DELL COMPUTER CORPORATION	$18,671,233
NANA REGIONAL CORPORATION INC	$12,341,548
PC MALL, INC.	$12,338,011
KONIAG INC	$10,131,412
COMPUWARE	$6,778,885
YORK TELECOM CORPORATION	$5,484,667
I. LEVY AND ASSOCIATES, INC.	$5,202,386

NANA is an Alaska native owned business. There have been questions asked about the appropriateness of contracting preferences given NANA.

Social Security Working On 75th Anniversary Plans

From the Social Security Update, a newsletter put out by the Social Security Administration:

Social Security’s 75th Anniversary

As we ring in 2010, we also will be ringing in the 75th anniversary of Social Security. On August 14, 1935, Franklin D. Roosevelt signed the Social Security Act into law. Since then, for 75 years, Social Security has been a cornerstone of our nation, touching the lives of almost every American at one time or another. We’re hoping that Congress will help us celebrate our anniversary by enacting legislation we proposed to name the Operations Building at our headquarters complex after former Commissioner Robert Ball.

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Effects Of Furloughs In California

From a report of the California State Senate Rules Committee:

Disability Programs. We found that by taking workers off the job as many as three days a month, furloughs have delayed tens of millions of dollars in monthly checks for people with long-term disabilities. Among our specific findings about the federal Social Security Administration disability programs:
• Federal disability benefits of $68 million to $99 million a year will be delayed for thousands of qualified Californians because furloughs have slowed the processing of applications.
• Each furlough day delays the processing of an estimated 1,476 applications for federal disability benefits, with a corresponding delay of $420,800 in benefits for blind, needy or disabled people.
• The backlog of applications for Social Security disability benefits in California is growing.
• An estimated 27,000 hours of labor per month are lost to furloughs in the programs that determine which Californians qualify for disability benefits.
• The average amount of time off taken by the state workers who determine eligibility for federal disability benefits increased by 47% between the third quarter of 2008 – before furloughs – and the same quarter in 2009.
• Furlough of the people who determine eligibility will cost the state between $18 million and $31 million a year in salaries and other administrative costs that would have otherwise been paid by the federal government – with a corresponding loss of at least $1.4 million in state income taxes.
• Federal officials have gone to court to argue that California’s furloughs hinder delivery of benefits that can prevent homelessness for vulnerable Californians.
• They have also warned California officials that federal regulations require states to avoid labor restrictions that impinge prompt payment of benefits.

California is furloughing disability determination employees even though their salaries are paid for by federal funds. Furloughing these employees saves the state government no money. In fact these furloughs worsen the state's budget situation since it reduces the taxes paid by those state employees. More importantly, the recipients of Social Security disability benefits do pay sales taxes and the money they spend provides for employment for others who do pay income taxes. There is no rational explanation for what California and several other states are doing.

An Incomplete Answer

From a column by Joanne Crane, Manager of the Social Security District Office in Neptune, NJ (although there is an excellent chance this was written by someone else at Social Security) appearing in the Asbury Park newspaper:

Q: I'm thinking about getting disability protection from a private company. If I become disabled and have a private policy, would it reduce my Social Security disability benefit?

A: No. Your eligibility for Social Security disability benefits is not affected by any private insurance you may have.

The Asbury Park newspaper, like most newspapers these days, seems to try hard to disguise its actual name and location in its online edition. This newspaper identifies itself only as "APP." Perhaps it is the Post, but it will take some effort to find that name online. It was hard enough to figure out where the newspaper is located.

The problem with the answer given is that it does not mention that Supplemental Security Income (SSI) disability benefits would be reduced by "disability protection from a private company." Even more important, these private disability benefits will almost certainly be reduced by Social Security disability benefits. There is an offset; it just works in the opposite direction than the questioner thought. Thus, the answer is incomplete and misleading.

Sopranos Actor Acused Of Social Security Fraud -- And It's SSI Fraud At That!

From the New York Daily News:

A Brooklyn actor who played wiseguy Donald (Donny K) Cafranza on "The Sopranos" was pinched Monday for a real-life crime - stealing from the government.

Raymond Franza, 46, who appeared in five episodes of the hit HBO series, was accused of swindling nearly $13,000 from the Social Security Administration.

Franza was living on Staten Island in 2008 when he applied for disability benefits after a car crash, the Staten Island district attorney's office said.

He got $12,946 in payments over 14 months, but never said he was also collecting $4,000 a month in benefits from his auto insurance company, which made him ineligible for Social Security help.

Update: Some of you wonder how this could be Supplemental Security Income (SSI) benefits because of the amount of money involved for just 14 months. First, it has to be SSI since there is no way it is fraud if the benefits were based upon Mr. Franza's earnings. Those benefits are not means tested. Second, New York has state supplementation. The maximum SSI benefit for an individual in New York is $761 in 2009. Those numbers still do not add up but they are getting closer. The newspaper may have the number of months wrong or they may have the amount of the alleged overpayment wrong, but my bet is that the $14,000 figure includes some Medicaid benefits.

Social Security Central Offices Closed?

The Office of Personnel Management (OPM) has announced that Washington, DC area federal offices are closed today due to the snowstorm that hit the area over the weekend. Does this include Social Security's central offices in Woodlawn, Maryland?

Gokhale Appointed To SSAB

The Social Security Advisory Board (SSAB) reports that Jagadeesh Gokhale has been appointed to the Board by Senate Minority Leader Mitch McConnell. He replaces Sylvester Schieber. Gokhale is a senior fellow at the Cato Institute, a right wing think tank. He supported former President George W. Bush's plan to partially privatize Social Security.