Mental Retardation Fraud Alleged In Tacoma

From The Olympian in Washington State:

TACOMA - For nearly 20 years - ever since he was 8 - Pete Costello's mother has collected disability benefits on his behalf. In meetings with Social Security officials and psychologists, he appeared mentally retarded and unable to communicate. His mom insisted he couldn't read or write, shower, take care of himself or drive a car.

But video of Pete contesting a traffic ticket in a Clark County courtroom earlier this year seems to refute that, according to federal prosecutors who are pursuing fraud charges against the Vancouver pair.

National Review Faces Reality And Talks Social Security

Most conservatives seem to be in a state of denial about what can be done about Social Security's long term funding issues. Most, including the President, seem to believe that privatization is still possible, despite the fact that Democrats control Congress and are firmly against privatization. The National Review, perhaps the country's most prominent conservative publication, may be an unlikely place to find ideas which could be a starting point for fruitful negotiations on legislation to improve Social Security's long term funding, but it looks as if its editorial board is starting to face reality. Check out this recent National Review piece that may actually provide a useful starting point:

First, the program could be put on a sound fiscal footing by reducing the future growth of benefits. Republicans will like this proposal better than Democrats, but few Democrats have ruled it out. Second, the government could provide tax credits to help low-income workers begin investing. Democrats have proposed this policy for years, and Republicans have objected. But if Republicans are as interested as they say they are in expanding the investor class — and they should be — they should drop their objections. Third, the taxes that fund Social Security could be made more progressive. There is a cap on the amount of wages that is subject to the payroll tax. That cap could be raised. This is where Democrats want to go, and Republicans have good reasons for resisting: It would increase marginal tax rates for the affected workers quite a bit, and it would not raise much money. But if the cap were not raised much, and the revenues gained were used to fund the tax credits or to lower the payroll-tax rate, Republicans might find their objections dwindling.

SSA Posting Job Vacancies

Ordinarily, this would not qualify as news, but the Social Security Administration is advertising two job openings. This is the first sign that there may be some hope for Social Security's administrative budget situation. Social Security is being squeezed by a drastically short operating budget under a continuing funding resolution. Perhaps, this is a sign that there is hope that the new continuing funding resolution, due by Friday, will not be so draconian. Certainly, there is every reason to expect better funding once Democrats take over control of Congress next year, but Social Security has to get through the next two months or so first -- and avoiding a staff furlough during this time period is essential.

India Totalization Agreement

There was a prior report from the Indian side that there were efforts underway to negotiate a totalization agreement with India. There is now a report on ANI, an Indian new agency, quoting the U.S. Undersecretary for International Trade as saying that negotiations will start soon on such a treaty. There are many Indian immigrants in the United States and most of them are middle class individuals who might have been covered under India's Social Security system.

SSAB Nominations Hearing

The Senate Finance Committee is holding a hearing today (December 5) on the nominations of Dana Bilyeu and Mark Warshawsky to the Social Security Advisory Board.

User Fee Increase In Effect Now

From Social Security Emergency Message EM-06094 (emphasis added):

Effective with fees paid December 1, 2006 and later, the user fee increases from $75.00 to $77.00 or 6.3% of attorney fee, whichever is lower. The cap was adjusted based on annual cost of living adjustments (COLAs) rounded down to next lower $1 for the current calendar year.

Automated fee computations, fees processed manually, or paid by A-OTP, will use the increased fee assessment cap to compute the user fee for fees paid on or after December 1, 2006.

U.S. Marshall's Process Service Form Available On-Line

The U.S. Marshall's Service has posted on-line a fillable version of their form USM-285 which is supposed to be used for in forma pauperis cases in the United States District Courts. This form is used frequently by two groups -- prisoners filing pro se complaints and attorneys representing Social Security claimants.

What Will New Continuing Resolution Say?

The current continuing funding resolution under which Social Security is operating expires on Friday, December 8, according to the Library of Congress. There will be a new continuing resolution before the end of this week. The big question is what it will say. Congress has passed no budget for the Social Security Administration for the current fiscal year, which began on October 1. The agency is operating under a continuing funding resolution that allows the agency to spend money only at a very low rate. If the current continuing resolution provisions are continued, Social Security cannot hire new employees to replace any who leave and there is a threat of a furlough for current employees, simply because there may not be enough money to keep the offices open every day. It is already clear that there will not be a budget for the current fiscal year until after the new Congress convenes in January. It is not clear how long it will take the new Congress to produce a new budget. Will the new continuing resolution continue funding only at the current very low level which may require a furlough of Social Security employees before a new budget is passed or will the funding level be increased so that Social Security can operate effectively until a new Congress can pass a funding bill?