Treasury Offset Resumes

   Press Release

Thursday, March 20, 2025

For Immediate Release

Mark Hinkle, Press Officer

press.office@ssa.gov

Social Security Administration Resumes Treasury Offset Program Collections After COVID-19 Suspension

The Social Security Administration (SSA) today announced the immediate resumption of debt collection activities through the Treasury Offset Program (TOP) for debts accrued prior to March 2020. This decision comes after a suspension of collections due to the economic challenges posed by the COVID-19 pandemic.

The Treasury Offset Program, administered by the Department of the Treasury’s Bureau of Fiscal Service, is a centralized program designed to collect delinquent debts owed to federal and state agencies by intercepting Federal and state payments. Since 1992, SSA has referred delinquent Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) debts to TOP as mandated by law.

Prior to the suspension in March 2020, SSA had successfully collected almost $2 billion in previously unrecoverable delinquent debt through TOP. The program is essential for maintaining the integrity of the OASDI and SSI programs.

“Resuming collections through the Treasury Offset Program is a critical step in our commitment to being good stewards of taxpayer funds and ensuring the integrity of our programs,” said Lee Dudek, Acting Commissioner of Social Security. “We are dedicated to recovering overpayments while providing individuals with the necessary information and options to address their debts.”

The Department of Treasury has begun collecting debts SSA referred to Treasury before March 2020, impacting an estimated 280,000 individuals with a collective debt balance of $2.7 billion.

TRO Prevents DOGE Access To Confidential Social Security Records

      The United States District Court for the District of Maryland had granted a Temporary Restraining Order (TRO) in a lawsuit filed by a labor union concerning DOGE access to records on Social Security claimants. This access is now blocked.

Senate Republicans Want Musk To Shut Up And Get DOGE Out Of SSA

      From The Hill:

Senate Republicans want Elon Musk to stop talking about Social Security, and the Department of Government Efficiency to leave it alone. …

They warn that Social Security reform is known as the “third rail” of politics for a reason: Any party that touches it is likely to get zapped come Election Day.

And Republicans fear that reductions in staff and field offices will boomerang on them, predicting constituents will grow frustrated if it becomes more difficult and time-consuming to address problems related to benefit claims.

They warn that Social Security reform is known as the “third rail” of politics for a reason: Any party that touches it is likely to get zapped come Election Day. 

“It doesn’t help the president when you have somebody who clearly is not worried about whether or not Social Security benefits are going to be there for him” leading the effort to shrink the Social Security Administration, said Sen. Lisa Murkowski (R-Alaska), referring to Musk, the world’s richest person.  …

 

The Actual Scope Of The Problem And The Sophisticated Efforts To Deal With It

     A press release from Social Security's Office of Inspector General:

Receiving accurate reports of death is a major and ongoing concern for the Social Security Administration (SSA). A recent report by the Office of the Inspector General (OIG) illustrates the need for SSA to continue to improve its death reporting processing systems.

According to the report entitled, “Rejection of State Death Reports,” from November 2018 through October 2022, states throughout the country submitted about 13.7 million death reports to SSA. SSA’s Death Information Processing System (DIPS) accepted about 12.2 million and rejected nearly 1.5 million (11 percent) state death reports. SSA OIG determined that SSA rejected over 1.4 million state death reports that did not pass DIPS verification checks. SSA uses DIPS to verify the death information it receives. DIPS rejects death reports that do not pass its verification checks to prevent posting erroneous death information to SSA records.

It is only after death information passes DIPS verifications that SSA records the information to the Numident (a database that stores information for all Social Security numberholders) and terminates payments to deceased beneficiaries. The verification checks prevented DIPS from posting incorrect or duplicate death information to SSA records for approximately 773,000 of the 1.4 million death reports submitted by states.

However, SSA OIG reported an estimated 702,000 of the 1.4 million state death reports that were rejected contained valid death data but did not pass DIPS verification checks. DIPS rejected most death reports when it detected a verification date submitted by the reporter was different than the latest verification date in SSA’s records. When this occurs, DIPS rejects the report without validating whether the reported death information is correct. This delays posting of the date of death to the Numident and payment records and results in continued payments to deceased beneficiaries until SSA receives and processes the death information.

This issue led to improper payments to beneficiaries of $327 million and could lead to an additional $108 million over the next year if SSA does not add death information to payment records for beneficiaries in current payment status. Moreover, SSA employees must manually process the rejected death records. It is estimated it will require SSA employees to spend 199,000 hours to process this workload, costing $12 million in administrative expenses. OIG made three recommendations to improve the accuracy of the death information in its records to which SSA agreed. See the full report here.

    These things are vastly more complicated than DOGE can imagine.

Cutting Costs To Employers — Nice Goal But How Can You Achieve It?

 Social Security Announces Cost Reduction and Enhancements Plan 

Efforts Will Combat Identity Fraud

In response to stakeholder feedback and a recent audit by the Government Accountability Office (GAO), the Social Security Administration (SSA) is pleased to announce a comprehensive plan aimed at reducing costs and enhancing the Electronic Consent Based Social Security Number Verification (eCBSV) service. This initiative is designed to ensure the continued viability of the eCBSV service while addressing the needs of customers, including the financial industry and various governmental bodies.

"We are committed to enhancing the eCBSV service to better serve our stakeholders and effectively combat identity fraud,” said Lee Dudek, Acting Commissioner of Social Security. “By reducing costs and improving our processes, we aim to provide a more accessible and efficient tool for financial institutions and other entities."

Since its inception, the eCBSV service has garnered significant interest from stakeholders, including the financial industry, the Big Tent Coalition (BTC), and congressional committees. The GAO's audit, released in September 2024, highlighted key areas for improvement, including cost estimation, user participation, and service limitations. In response, SSA has committed to implementing several recommendations to enhance the service's effectiveness in combating synthetic identity fraud.

Key Components of the Plan:

1. Cost Reduction Initiatives:
• A phased approach will be adopted to reduce operating costs by up to approximately 40 percent going forward, focusing on critical functions necessary for maintaining the eCBSV system.
• Annual fees charged to participating entities will be reduced by approximately 25 percent, allowing for greater accessibility while still meeting cost recovery requirements.
2. Enhancements to eCBSV Services:
• The agency will work to enhance the no-match results provided by eCBSV, responding to stakeholder requests for more detailed information to aid in decision-making.
• A future phase will explore the integration of Consent Based SSN Verification (CBSV) with eCBSV, streamlining processes and expanding the user base.
3. Stakeholder Engagement:
• Ongoing initiatives will continue to involve stakeholders in the development and implementation of the eCBSV service, including regular meetings and feedback solicitation.

Next Steps:

The implementation of this three-phase plan will begin immediately, with a focus on reducing operating costs and enhancing service offerings. The agency is dedicated to ensuring that jthe eCBSV service remains a valuable tool for financial institutions and other stakeholders in verifying Social Security numbers and addressing identity fraud.

     While you’re at it, can you do something about the ridiculous user fees attorneys must bear?

Creating Obstacles For The Sake Of Creating Obstacles?

       From the Washington Post:

The Social Security Administration is considering adding a new anti-fraud step to claims for benefits that the agency acknowledges would force millions of customers to file in person at a field office rather than over the phone, according to an internal memorandum.
The change would create major disruptions to Social Security operations, the memo said, and could cause particular hardship for elderly and disabled Americans who have limited mobility. Elon Musk’s U.S. DOGE Service also has announced plans to cut thousands of agency jobs and close dozens of regional and local Social Security offices.
Those applying for retirement and disability benefits by phone would be required for the first time to authenticate their identity through an online system that the memo refers to as “internet ID proofing.” But if claimants can’t verify their identity online, they would have to provide documentation in person at a field office, according to the memo, which was viewed by The Washington Post. The document was sent last week by Doris Diaz, acting deputy commissioner for operations, to acting Social Security commissioner Leland Dudek.
 …

The memo estimates that 75,000 to 85,000 customers per week would be diverted to local field offices because many of the elderly and disabled people that Social Security serves would be unable to complete a new identity verification requirement online.
“Increased challenges for vulnerable populations,” “longer wait times and processing time,” “increased demand for office appointments” and “increased foot traffic” at local field offices are the kinds of service disruptions the memo warns would happen if the change is implemented — as well as legal challenges and “operational strain.” ..

"A Month Of Solid Progress"

From: ^Commissioner Broadcast <Commissioner.Broadcast@ssa.gov>
Sent: Tuesday, March 18, 2025 8:48 AM
Subject: A Month of Solid Progress and a Look Ahead

A Message to All SSA Employees

Subject: A Month of Solid Progress and a Look Ahead

Over the past month, this agency has seen an unprecedented level of media coverage, some of it true and deserved, while some has not been factual and painted the agency in a very negative light. I know this has been stressful for you and has caused disruption in your life. Personally, I have made some mistakes, which makes me human like you. I promise you this, I will continue to make mistakes, but I will learn from them. My decisions will always be with the best intentions for this agency, the people we serve, and you.

Through it all, you have been outstanding. SSA hasn’t missed a beat. Every day, you answer the phones, assist customers with Medicare, process claims, support students and workers, print cards, maintain our IT systems, complete redeterminations, and so much more. I’m proud of you. More importantly, you should be proud of yourselves. 

Because I can rely on you, we’ve made meaningful progress this last month: 

• Enhancing Data Sharing to Prevent Improper Payments
  We’ve expanded data-sharing agreements with agencies like the IRS, HHS, CMS, HUD, and Treasury to help prevent improper payments.  GAO, which is an independent agency that works for Congress, supports these data-sharing efforts as a key step toward reducing fraud and waste (Fraud & Improper Payments | U.S. GAO). 

• Improving Telephone Services
  We’ve always known our telephone service could be better. Acknowledging a problem is the first step to solving it. We have built on the transparency former Commissioner O'Malley started, expanding telephone detailed management data and performance metrics for the National 800 Number (N8NN) on our website. In the coming weeks, the data will be available in real time for the public. We are also exploring ways to implement AI— in a safe, governed manner in accordance with OMB’s Fed RAMP guidance—to streamline and improve call resolution while also building on the successful rollout of our phone system to Georgia field offices. 

·       Ensuring Successful Processing of VSIP

We have prioritized and expedited the processing of the Voluntary Separation Incentive Payments (VSIP) program.  We have collected approximately 2,700 signups for employees opting for the VSIP program.  Over 2,000 employees have been deemed eligible and been provided with guidance on next steps.  Over 1,400 employees have signed agreements for their VSIP.  HR staff are filing agreements in official personnel folders and working with employees on retirement processing and other separation steps. 

• Delivering a Win for the Public with WEP/GPO
  Implementing the improvements to WEP/GPO resulting from the Social Security Fairness Act, signed just 10 weeks ago, were a significant win for the public. I’ve asked managers to recognize the team that worked on it with a COSS award and grant them four hours of administrative time off. When we succeed as a team, we reward the team. 

With that wind at our backs, I am introducing our action plan for the next 3 months.  Rather than tackling everything at once, we will focus on a few key initiatives, execute them well, and then move forward.  We will maintain transparency as we work.  You can view the action plan here.   

To guide our path forward, I have established three priorities to keep us focused on providing critical services to the public: 

1.      Improving Customer Service

I have asked our leadership team to develop plans that address our customer service deficiencies, starting with handling calls to our 800 number and field offices, adding a self-scheduling option for post-entitlement appointments, and educating the public on our programs so they can make informed decisions.  Success in these services will not only improve the customer experience, but also make the work you do easier.   

2.      Fighting Fraud and Waste

The Administration’s focus on detecting and eliminating fraud, waste, and abuse is in line with our mission to pay the right person the right amount at the right time.  I am increasing transparency into our decisions and our data.  I have directed our leadership team to present real-time data online so that the public can see how we are doing.  I am increasing our anti-fraud efforts and leading with establishing state-of-the-art methods for identity proofing, which enables the public to securely interact with us online or over the phone.  

3.      Optimizing and Empowering the Workforce

Our greatest asset remains our workforce.  Putting knowledgeable, efficient, competent professionals in the right positions is a high priority.  It is you, the public servant, who is best-positioned to identify better, more efficient, ways of doing business.  The overwhelming response on reassignment to direct service roles has reinforced my view that our employees hold a high level of commitment to executing on our mission and prefer to do so in one-on-one interactions with the customer.  Based on that response, we are now in a good position to avoid reliance on involuntary reductions in our workforce for this fiscal year.  However, we will continually assess our ability to meet our top priority to serve the public and use strategies such as reassignment to meet demand.   

You’re an essential part of this 3-month plan, and I look forward to working with you to make meaningful improvements together. 

I appreciate your dedication.  

Lee Dudek

Acting Commissioner

Only About 3,000 SSA Employees Have Accepted Buyouts

     From MSN:

The Social Security Administration’s plans to reduce its head count have resulted in more than 2,000 workers so far. 

Of the 2,674 employees who accepted the voluntary separation incentive payment — which provides workers with a one-time payment to leave government service — before the March 14 deadline, 2,477 employees are confirmed to be eligible, the Social Security Administration said.  ...

 Employees could have also participated in the Deferred Resignation Program, or DRP, which was available until Feb. 12 to any employees in “non-mission critical” positions. Those workers — 345 eligible employees accepted the offer — were placed on paid administrative leave until Sept. 30. After that, they “must leave the agency,” the SSA said on its website. ...

Workers are also moving within the agency. The SSA offered employees the opportunity to “volunteer to be reassigned from a non-mission critical position to a local field office, teleservice center, processing center, payment center, workload support unit, or hearing office,” which also had a March 14 deadline. More than 2,200 employees will be reassigned on a “flow basis” and will receive training for these position changes, the SSA said. 

    I don't want to see the agency losing any good employees but this report is much better than I feared. 

    Here's the agency's announcement on this.

Hearing Scheduled On Bisignano Nomination

      The Senate Finance Committee has scheduled a hearing at 10:00 on March 25 on the nomination of Frank Bisignano to become Commissioner of Social Security.

Social Security Pays $58 Million In EAJA Fees In FY 2024

     Each year the Administrative Conference of the United States (ACUS) compiles a report on Equal Access to Justice Act (EAJA) awards. EAJA shifts the costs of attorney fees for representing Social Security claimants in many cases appealed to the federal courts. The government has to bear the fees. The latest report for FY 2024 shows Social Security having the largest EAJA burden of any agency, 9,563 awards totaling more than $58 million. Just imagine what the costs would be without the Appeals Council.

    By the way, you have to wonder how much longer ACUS will be around.

“Improvise Your Way Out”

      From the New York Times:

When Eleanor H., 66, called the Social Security Administration last month seeking details about her retirement benefits, she didn’t expect to comfort the representative who answered. The woman started sobbing.

“I asked her what was wrong, and she said she and her co-workers were informed by email to accept a taxable $20,000 payout or risk termination,” said Eleanor, who lives in New Jersey (she asked to use only her first name out of privacy concerns).

The rep still answered all of Eleanor’s questions. “Through her tears she said, ‘What am I going to do?’” …

[I]n recent weeks, the Trump administration, led by Elon Musk’s crew of cost cutters at the Department of Government Efficiency, or DOGE, has taken its chain saw to the agency’s operations. …

Michael Astrue, a former agency commissioner appointed by President George W. Bush, said it appeared that Mr. Musk has imported the strategy he used when he bought Twitter, “where you go into some place established, level it and then figure you’re going to improvise your way out,” he said, speaking at a briefing on Thursday held by the National Academy of Social Insurance. “It’s extremely destructive.” … 

Jason Fichtner, who held several positions at the agency, including deputy commissioner and chief economist, put it even more bluntly at the briefing. “It’s more like a drunk operating a wrecking ball,” he said. …

A Sunday Press Release

 Sunday, March 16, 2025

Immediate Release

Mark Hinkle, Press Officer

press.office@ssa.gov

Social Security Provides Update about its Death Record

Social Security announced today that more than three million deaths are reported to the Social Security Administration each year and explains that the agency’s records are highly accurate. Of these millions of death reports received each year, less than one-third of 1 percent are erroneously reported deaths that need to be corrected.

Deaths are reported to Social Security primarily from the States, but also from other sources, including family members, funeral homes, Federal agencies, and financial institutions. In a 2008 audit report, the IG noted that “SSA receives most death reports from funeral homes or friends/relatives of the deceased. SSA considers such first party death reports to be verified and immediately posts them to the Death Master File.”

Instances when a person is erroneously reported as deceased to Social Security can be devasting to the individual, spouse, and dependent children. Benefits are stopped in the short term which can cause financial hardship until fixed and benefits restored, and the process to prove an erroneous death will always seem too long and challenging.

If a person suspects that they have been incorrectly listed as deceased on their Social Security record, they should contact their local Social Security office as soon as possible. They can locate their nearest Social Security office at www.ssa.gov/agency/contact/. They should be prepared to bring at least one piece of current (not expired) original form of identification. Social Security takes immediate action to correct its records and the agency can provide a letter that the error has been corrected that can be shared with other organizations, agencies, and employers.

     If the Trump Administration is going to pretend there are millions of dead people receiving Social Security benefits, they shouldn't complain about reports concerning the real people who aren’t receiving the benefits they’re due because of errors in the Death Master File.

Hasn't Worked Before, Won't Work Now

 

     Lawrence Glickman writes about the long, long history of calling Social Security a "Ponzi scheme." Repeating this lie endlessly for almost 90 years doesn't make it true. It just points out how pathetically ineffective the argument is. Accept reality. The right wing has no conceivable path to eliminating Social Security or even significantly changing it, apart from what it's doing, defunding its administration, and that will ultimately prove to be horrendously unpopular as I think even they know. They just feel so strongly about this that they're willing to do a suicide charge.

Might Tell You Something About The Future

     From the Urban Institute:

Click on image to view full size

Will You Have A Desk? A Parking Place? Childcare?

From: ^Human Resources Internal Communications <Human.Resources.Internal.Communications@ssa.gov>
Sent: Thursday, March 13, 2025 5:01 PM
Subject: Bargaining Unit Employees - Return to In-Person Work

 A Message to All Employees

Subject:  Bargaining Unit Employees - Return to In-Person Work

On Monday, January 20, 2025, President Trump issued a Presidential Memorandum (PM) requiring all employees to return to work in-person full time.  This message serves as your official notice that your telework agreement will be suspended effective March 16, 2025, with all employees expected to return to work in-person full time on March 17, 2025. 

The Office of Personnel Management Guidance on exempting military spouses from agency return to work plans only applies to employees who are homestationed (i.e., are working from their residence under an approved homestationing agreement).  For that reason, employees who are military spouses with existing telework agreements must also report onsite to their official duty station full time beginning March 17, 2025.  Employees must return any agency equipment taken to their telework location to their SSA office location.  Employees who have signed up for VSIP are exempted.

Reminder: As shared in the March 3, 2025 Non-bargaining Unit Employees - Return to In-Person Work and Cancellation of Expanded Flexible Bands HRIC, the Office of Human Resources will send more on placement of employees with homestationing agreements into onsite official duty stations in the near future. Employees with homestationing agreements should continue to hold for further guidance.

The return to work in-person does not currently apply to employees under approved reasonable accommodations (RA) authorizing telework, temporary work at home by exception (WAHBE) agreements for medical reasons, or temporary compassionate assignments (TCA).  In addition, employees in the Office of Hearings Operations and Office of Financial Policy and Program Integrity may remain in their current telework posture. 

If your location has a space limitation issue, your supervisor will notify you to provide the next steps.  As a reminder, any episodic telework is granted on a case-by-case basis and only in situations where the requested telework will benefit the agency.

Any expanded flexible bands are cancelled as of March 17, 2025 as well.  Employees must follow the flexbands in agency policy (see Personnel Policy Manual S610_3) or their collective bargaining agreements. 

We understand that this transition will require an adjustment to employee work/life arrangements.  Supervisors should be liberal with the approval of leave over the next 4 weeks to accommodate the changes.  We encourage employees to review the Frequently Asked Questions (FAQs) the agency has prepared on return to office topics.  The Employee Assistance Program (EAP) is also available to you using Access Code: ssaeap or 1-877-549-9528.

Gracias, Indeed

      From the New York Times:

A private equity investor who is one of Elon Musk’s closest confidants has taken a new role in the Social Security Administration, a development that could be politically combustible given the program’s popularity with voters and Mr. Musk’s apparent intent to make major changes at the agency.

The investor, Antonio Gracias, who has served on the boards of Mr. Musk’s businesses Tesla and SpaceX, has started a job at the administration as part of the Musk-led cost-cutting effort known as the Department of Government Efficiency, according to documents seen by The New York Times and two people informed about his appointment.

Of the more than 50 people who have joined Mr. Musk in Washington, almost none have as extensive a history with him as Mr. Gracias. The men met around two decades ago and in that time, Mr. Gracias has become one of Mr. Musk’s most trusted advisers. ...

The involvement of such a close ally with the Social Security Administration suggests that Mr. Musk has made overhauling the agency a priority; in recent weeks, the tech billionaire has regularly talked about supposed fraud inside the system. Two weeks ago, he referred to Social Security as “the biggest Ponzi scheme of all time,” and this week he claimed that fraud in the program and other major entitlement spending was “the big one to eliminate.” ...

    Trying to privatize Social Security was such a big success for George W. Bush, why shouldn't Trump go for it?

Who Are Those DOGE Operatives At Social Security?

      Wired reports on those 10 DOGE operatives embedded at Social Security. There’s nothing reassuring about the report.

     People whose educational backgrounds have been in STEM are essential to the economy but, in general, they have no business in management. Their backgrounds are just too limited. Sure, there are exceptions but previous few when you’re talking about people as young as those assigned to Social Security.

They May Seem Like Traitors But They’re Just Idiots

      From Government Executive:

A proposal to ban payments to people without Social Security numbers is circulating at the Social Security Administration, according to two employees. If implemented, the move could affect thousands of beneficiaries receiving retirement, disability and low-income benefits from the agency.  

An SSA memo obtained by Government Executive notes that the agency currently can, at times, make someone a representative payee even if they don’t have an SSN. The payee, Romig noted, is not required to be eligible for benefits themselves.F 

The new policy proposal would bar any payments to payees without SSNs, of which there are currently more than 170,000, according to the document. The Social Security Administration did not respond to a request for comment Thursday.   

One large group that could be affected by the proposed change would be children receiving Supplemental Security Income or disability benefits whose parents don’t have an SSN. Others impacted could include widows and other survivors of dead Americans living overseas.  …

The agency needs to confirm that it has the authority to make this change, the memo notes. If SSA moves forward, it would need to “work” the thousands of cases, contacting the payees to submit a SSN or change the payee altogether to someone that has a number. 

That task could be arduous, as finding payees is already so difficult that at times the agency turns to institutional payees like child welfare agencies, said Romig. SSA staff also have to assess the suitability of payees.  …

[Former Commissioner] Astrue, discussing the increased risk of a cybersecurity failure in light of DOGE operatives’ access to sensitive SSA databases, urged the Senate Finance Committee to move swiftly on the nomination of Frank Bisignano to lead the agency, noting “he can’t possibly be any worse” than Dudek, who was being investigated for improperly sharing information with DOGE when he was put in his current role. 

“I don’t attribute being a traitor to these people—I am attributing to them being idiots and not knowing what they’re doing,” he said. …

10,000 Social Security Employees To Leave?

      From CBS News:

Barbarians At The Gates

      From the National Committee to Preserve Social Security & Medicare:

Laura Haltzel is the first former Social Security Administration (SSA) official who was present for the Trump administration’s takeover of the agency to speak out publicly in an on the record interview. In her first interview since leaving SSA, Haltzel told Entitled to Know that Elon Musk and his Department of Government Efficiency (DOGE) “traumatized” SSA employees — and created “gross inefficiencies” in the system. Haltzel resigned her post as Associate Commissioner Office of Research, Evaluation and Statistics on February 28, accepting an early retirement offer that the administration extended to all SSA employees.

Haltzel describes an atmosphere of chaos and fear at SSA headquarters, based on her own experience and communications with colleagues in other departments. (Haltzel was based at the agency’s DC office while the headquarters is in Baltimore.)  She had worked at SSA for a cumulative 15 years when she exited her job.

     And there’s much, much more. Give it a read.