Study on When to Take Social Security

A study by two researchers at Boston College concludes that married women should take Social Security benefits early and that married men and single women should take Social Security retirement benefits late. More than half of men and women now take benefits at age 62. You have to wonder how many of of those retiring at age 62 were actually disabled and how all of this fits into the rise in full retirement age to 67 which is already underway.

Social Security Issues Strategic Plan for FY 2006-2011

The Social Security Administration has issued its strategic plan for fiscal years (FY) 2006 to 2011. The plan contains no news for anyone who has been following developments at Social Security in recent months and years, but contains a good summary of what has already been announced. The report is couched in "public relations speak" and paints an amazingly rosy picture of an agency that has great trouble answering its telephones, among other things.

SSI Payment Change Language

The Budget Reconciliation bill finally passed by Congress on February 1 includes the following language on payment of SSI back benefits:

Section 1631(a)(10)(A)(i) (42 U.S.C. 1383(a)(10)(A)(i)) is amended by striking `12' and inserting `3'.

(b) Effective Date- The amendment made by subsection (a) shall take effect 3 months after the date of the enactment of this Act.

This makes the effective date a bit ambiguous. Does it apply to decisions made three months after the President signs the bill or does it apply to decisions implemented three months after the President signs the bill?

The bill also includes language which will require Social Security to do more reviews of Disability Determination Services decisions approving SSI claims.

ALJs and OIG Investigations

Social Security's Office of Inspector General (OIG) has issued a report on a study it did on cases in which OIG had investigated a claim and, in essence, ordered it denied, yet an Administrative Law Judge (ALJ) later allowed the claim. The study showed:

...ALJs may not have always been aware that a CDI unit investigation was conducted and may not have always considered the investigative report in making the disability decision. These circumstances may have resulted in the allowance of benefits when a prior investigation by a CDI unit contributed to a denial decision. Specifically, our review of case folders for 100 ALJ decisions found:
• 97 case folders were not clearly marked to indicate an investigation was conducted and that the investigative report was included in the case folder;
• 40 investigative reports were missing from case folders;
• 28 investigative reports were not included on the exhibit list used to identify documents for consideration at the hearing; and
• 59 investigative reports were not discussed in the ALJ case decision write-up.

Administrative Law Judges made the following comments upon OIG's report that indicate problems with the OIG investigations themselves:

The ALJs also provided suggestions on some areas of the investigation that would make them even more beneficial to their disability decisions. Specifically:
• A longer period of surveillance tailored to the claimant’s alleged impairments would provide more complete evidence on some cases.
• Only factual observations about the claimant’s abilities identified during the investigation should be included in the investigative report. For example, when the claimant is observed walking only one block, the investigative report should not conclude the claimant can walk long distances.
• Specific details of the investigation, such as the length of time the claimant was observed, the distance the claimant walked, or the size of objects lifted should be reported in the investigative report.
• Standards applied to the CDI Unit’s observations should be placed in proper perspective. For example, investigative reports that indicate the claimant’s pace and gait were normal should provide a context for normal, such as pace and gate were similar to other people walking near the claimant.
• Documents that support statements made in the investigative report should be presented for consideration. For example, the investigative report states that medical evidence submitted by the medical provider for a different claimant was very similar to the medical evidence for the claimant under investigation, which could indicate duplicative use of medical evidence. Therefore, the CDI unit should provide the medical evidence from the other case to support their statement.

SSI Payment Changes Passed

The House of Representatives gave final passage to legislation that will significantly change payment of back benefits in SSI cases. Any SSI back benefits totaling over three months of benefits at the full rate must now be paid in up to three installments at intervals of six months. Previously, this was required only if the back benefits were more than a year at the full SSI rate. This means that most claimants approved for back SSI benefits by an Administrative Law Judge will not be paid most of their back benefits until more than a year after the favorable decision.

Lockhart To Leave SSA?

The Wall Street Journal reports that James B. Lockhart III, Deputy Commissioner of Social Security, is the frontrunner to head the Office of Federal Housing Enterprise Oversight which oversees federal housing financing corporations Fannie Mae and Freddie Mac. The Deputy Commissioner at SSA is the chief operating officer, second only to the Commissioner. Lockhart was appointed by the President, rather than the Commissioner, and was confirmed by the Senate. Lockhart is a long time friend of President Bush. The two first met at Phillips Academy Andover. Lockhart campaigned extensively for President Bush's plan for private Social Security accounts, while Jo Anne Barnhart, the Commissioner of Social Security, was essentially silent on the subject apart from one Op Ed piece in the New York Times, for which she received a good deal of criticism. There have been reports of friction between Barnhart and Lockhart.

Application Period For Non-Attorney Withholding Exam Begins

Applications are being accepted at Social Security from February 1 through March 1, 2006 to take the examination that allows non-attorney representatives to obtain withholding of fees for representing Social Security claimants. The examination will be heldon June 7, 2006. This will be the third time this examination has been offered.

Bush Proposes Another Commission to Examine Social Security

Almost completely lost in last night's State of the Union address was President Bush's call for yet another Commission to examine Social Security and other entitlement programs. Here are Bush's words:

We must also confront the larger challenge of mandatory spending, or entitlements. This year, the first of about 78 million Baby Boomers turn 60, including two of my Dad's favorite people - me, and President Bill Clinton. This milestone is more than a personal crisis - it is a national challenge. The retirement of the Baby Boom generation will put unprecedented strains on the Federal government. By 2030, spending for Social Security, Medicare, and Medicaid alone will be almost 60 percent of the entire Federal budget. And that will present future Congresses with impossible choices - staggering tax increases, immense deficits, or deep cuts in every category of spending.

Congress did not act last year on my proposal to save Social Security [*Democrats cheer], yet the rising cost of entitlements is a problem that is not going away - and with every year we fail to act, the situation gets worse. So tonight, I ask you to join me in creating a commission to examine the full impact of Baby Boom retirements on Social Security, Medicare, and Medicaid. This commission should include Members of Congress of both parties, and offer bipartisan answers. We need to put aside partisan politics, work together, and get this problem solved.