Rescission Of Acquiescence Ruling

From today's Federal Register:

On June 23, 1988 we issued SSR 88–10(c) to reflect the Supreme Court’s decision in Galbreath v. Bowen, 485 U.S. 74 (1988), in which the Court held that the relevant statutes did not permit withholding past-due Supplemental Security Income benefits for attorney’s fees in title XVI cases. As the Court noted at the end of its decision, the earlier Congressional decision not to extend attorney fee withholding to title XVI would stand ‘‘[u]ntil Congress [saw] fit to override its original decision, by amending Title XVI in a way that manifests an intent to allow withholding.’’

In the Social Security Protection Act of 2004 (SSPA), Public Law 108–203, Congress enacted such legislation. Section 302 of the SSPA amended section 1631(d)(2) of the Social Security Act to extend the attorney fee withholding and direct payment procedures to claims under title XVI. We began paying fees directly to attorneys in title XVI cases effectuated on or after February 28, 2005, the date the amendments made by section 302 took effect. While this provision will only be effective for 5 years, we believe that SSR 88–10(c) should be rescinded for this period and we will later determine if there is a need to reinstate it.

Monthly Statistics Released

Social Security has released its monthly statistical packages for Title II and Title XVI of the Social Security Act.

New Urban Legend

Here is a brand new urban legend, or, at least this preposterous tale is new to me, fresh from a web board:

Have you heard anything about Social Security numbers, African Americans and the 5th digit of your SSN? Supposedly, if you are an African American or a minority, the 5th digit in your SSN is even and odd if you are white!

It has been said if you take a poll, most African Americans will have an even 5th digit. Rumor has it, some companies are looking at potential employees SSN to discriminate. Why not send this email to every African American and Minority that you know! I'm sending this to everyone I know. Mine was even, what's yours?

This absurd urban legend is attributed to Tavis Smiley, an African American man who has a talk show on Public Radio International, but Smiley would probably be appalled to know his name was connected to this nonsense.

No Social Security Furloughs Through February 15 -- And Maybe None Period

From Govexec.com:

[A spokeswoman for Senator Byrd, the incoming chairman of the Senate Budget Committee] said the joint resolution [which is planned to fund government operations for the rest of the fiscal year] would not rely on a formula like that used in the current continuing resolution [which funds Social Security at such a low rate that the agency says that if it is continued for the entire fiscal year that employee furloughs are inevitable], but will "evaluate broad priorities and look at areas in desperate need." In that way, it would more closely resemble an omnibus spending bill, but she said the joint resolution would be different in that it would be "a lot more bare bones," with no policy direction. ...

At the Social Security Administration, where Commissioner Jo Anne Barnhart has publicly warned that proposed budget cuts would require furloughs of about 10 days agencywide, that flexibility could mean the agency gets sufficient funding to stay open as usual. A spokesman said Wednesday that SSA could continue to operate through mid-February [when the current continuing funding resolution runs out] without needing to make a decision on furloughs.

Furlough Worries At SSA

The article below is from the Baltimore Sun. The only good thing is that the article does not mention the prospect of a furlough before Congress can reconvene. One has to wonder if this could have been avoided if Barnhart had been willing to speak out publicly about this budget problem before things got this bad, but she was unwilling to do this until it became clear that she would not be reappointed and by then it was too late and she had made too many statements promising dramatic productivity gains from her Disability Service Improvement plan.

The Social Security Administration may still have to close offices nationwide for several days next year after the Republican-led Congress failed to act on nine of the 11 spending bills for 2007 and incoming Democratic leaders announced that they would hold spending at current levels until Oct. 1.

Agency spokesman Mark Lassiter said this week that extending 2006 spending levels through the entire 2007 fiscal year would "leave the agency open for the furlough."

When Congress returns in January, Lassiter said, one way to avoid sending workers home without pay would be to set Social Security spending at $9.29 billion, the amount approved by a House subcommittee for 2007 and $146 million more than what the agency is operating with now.

Outgoing Social Security Commissioner Jo Anne B. Barnhart said in an interview last week that once Congress dips below that figure, "there's no place left to give."

Barnhart has been warning of a potential furlough since September, which she characterized as the culmination of Congress allotting the agency less than the president requested for five straight years.

"Let me assure you, there is no strategy here," said Barnhart, a former congressional staffer. "As the person who's responsible for a program that delivers benefits to 48 million people, I think it's my responsibility to make sure Congress understands the consequences of its planned actions. If I had waited until after Congress signed off on appropriations bills and said, 'Gee, that's not enough money. We need to do a furlough.' I think they'd be a little annoyed with me."

Barnhart said that if Congress had supported the president's requests, people applying for disability benefits and challenging denials would not be faced with the long delays they are experiencing now.

Lassiter said Wednesday that the agency has instituted a hiring freeze until at least Feb. 15, almost a month after Barnhart's term expires. The agency had been hiring one employee for every three who left.

"The point is, there's a very direct correlation between service and getting the president's request and not getting the president's request," Barnhart said.

Until late last week, when the spending bills failed to get off the Senate floor, the agency's lobbying efforts had been gaining ground with 54 senators, including 12 Republicans, sending a letter to the chamber's leadership calling for enough money to avoid service disruptions.

"On the philosophical level, I certainly feel the agency is enjoying a victory, but on the practical side we're still piling on," Barnhart said. "We could absorb the House's proposal, but it's not going to be an ideal situation by any stretch of the imagination."

Richard Warsinskey, president of the National Council of Social Security Management Associations, said that agency budget officials estimate that for every $20 million the agency loses from the House's 2007 budget proposal, offices would shut down for one day.

"So if we stick with our current funding level, we're looking at a seven- or eight-day furlough," Warsinskey said. "It's not looking good."

NOSSCR Board of Directors

The National Organization of Social Security Claimants Representatives (NOSSCR) has announced its officers and board of directors for 2006-2007.

Social Security Budget To Be Decided Early On

The chairmen of the House and Senate Appropriations Committees have jointly announced that they intend to pass a year long continuing funding resolution early in the next Congress for the entire government. If this resolution is the same as the continuing funding resolution already approved through February 15, 2007 (and that will certainly be the starting point), Social Security is in deep trouble, with staff furloughs inevitable. The furloughs might be the most dramatic problem, but the agency would avoid even longer furloughs only by a near complete hiring freeze, no overtime and a very limited budget for things like equipment purchases and travel. All of this put together would certainly cause dramatic increases in the agency's already terrible backlogs. Social Security must now seek urgently to get an adjustment in the continuing funding agreement to allow more operating funds, but this effort may be crippled since the two top positions at the agency, Commissioner and Deputy Commissioner, will soon be vacant, leaving Social Security almost leaderless.

SSAB Meeting Agenda

The Social Security Advisory Board (SSAB) has announced the following agenda for its meeting on December 15, 2006.

Social Security Advisory Board
Meeting Agenda
Friday December 15, 2006

10:30 a.m. - 1145 a.m. Linda Maxfield, Assistant Deputy Commissioner for Policy,

Social Security Administration

1:30 p.m. - 3:15 p.m. Richard V. Burkhauser,

Professor and Chair,

Department of Policy Analysis and Management,

Cornell University

Debra Bailey Whitman,

Specialist in the Economics of Aging,

Congressional Research Service

The meeting will be held in the Board's conference room, Suite 625

400 Virginia Avenue, SW

Washington, DC

The agenda suggests that the Board is trying to come up with some dramatic proposal for "Social Security reform." There are even some straws in the wind suggesting that the SSAB wants to propose something before the next Congress convenes. The rest of us may roll our eyes upon hearing that there are actually people who believe that there will be some agreement in the next two years on "Social Security reform" that will satisfy Congressional Democrats and Republicans and President Bush, even though none of the parties has any interest in raising taxes or cutting benefits and most of the Republicans still suffer from the delusion that adding some sort of private accounts to Social Security will help the situation instead of making it worse.