Feb 2, 2007

Job Satisfaction Good At Social Security

The U.S. Office of Personnel Management took a federal human capital survey in 2006. Federal Agencies were ranked on their employees' job satisfaction. Here is the list:

Agency2006 Ranking
Office of Management and Budget1
Nuclear Regulatory Commission2
National Aeronautics and Space Administration3
National Science Foundation4
Department of Justice5
Department of State6
National Credit Union Administration7
Social Security Administration8
US Agency for International Development9
General Services Administration10

West Virginia Man Pleads Guilty To Social Security Fraud

The Huntington Herald-Dispatch reports that Jeff David Dotson has pleaded guilty to cashing checks he received from Social Security while incarcerated on two occasions. The amount of money is estimated at more than $26,000.

Feb 1, 2007

Message To SSA Employees From Acting Commissioner On Budget

Thursday, February 01, 2007 2:41 PM
Subject: COMMISSIONER'S BROADCAST -- 02/01/07

A Message To All SSA And DDS Employees

Subject: Budget Situation

Yesterday afternoon, I received encouraging news about our fiscal year 2007 funding situation. The House of Representatives voted to approve a $464 billion spending package that will fund agencies currently operating without fiscal 2007 appropriations.

In the measure approved by the House, Congress will restore $200 million in administrative funds to the Social Security Administration. The Senate, whose appropriators worked with the House to draft the joint funding resolution, is expected to take up the matter next week. In a statement, Senator Robert Byrd, Chairman of the Senate Appropriations Committee, said “This legislation makes smart investments in national priorities. I hope that Congress approves this funding legislation quickly…”

Senator Baucus, Chairman of the Senate Finance Committee, has also applauded the action of the House and reminded his colleagues that, “The continuing resolution still doesn’t give Social Security all the operating funds it needs, but at least we won’t see the 10-day staff furlough that was feared.”

Indeed, when approved by Congress and the President, the restoration of funds to SSA will enable us to avoid furloughs.

Linda S. McMahon
Acting Commissioner

Upcoming Meetings and CLE


If you know of one that I have missed, please e-mail me at charles[at]charleshallfirm.com.

Texas School System Employees Loophole Could Cost Billions

Here is an excerpt from a Fort Worth Star-Telegram article about an audit report by Social Security's Office of Inspector General:

The hiring of one-day employees by seven Texas school districts may cost the Social Security Administration $110 million annually in spousal benefits, according to an audit by the agency's inspector general.

The inspector general's report estimated that 19,212 people could receive $2.2 billion in spousal benefits over their lifetimes.

The seven school districts -- Lindale, Kilgore, West, Coleman, Hudson, Premont, and Sweeny -- raised more than $7 million by charging fees to the one-day workers.

The audit dealt with workers who retired before July 1, 2004, when the law was changed.

Before the loophole was closed, retiring teachers and administrators could work one day at another school district that participated in Social Security to obtain spousal benefits.

Most Texas school districts do not participate in Social Security.

The inspector general also urged the agency to review eight other unnamed Texas school districts, which weren't audited but hired 3,285 one-day workers. ...

Joe Fried, who runs the Public Program Testing Organization, a Social Security watchdog group, alerted the inspector general to the one-day worker situation at Texas school districts.

"This was bogus for three different reasons: First, they didn't have the authority to give Social Security; secondly, they wouldn't have the wages to pay them unless they collected the fees; thirdly, they weren't actually needed or didn't have work for them to do," Fried said.

Larry Shaw, executive director of the United Educators Association, a teachers association in Tarrant County, stressed that the practice was legal until 2004.

"I don't know about these individual districts, but I don't think any of these individuals did anything wrong," Shaw said. "I don't think you can take advantage of anything that was legal at the time."

Teachers unions are lobbying Congress to change the law in hopes of making it easier for teachers to receive spousal benefits.

Workers Compensation Offset Errors Estimated At $149 Million

A recent study by Social Security's Office of Inspector General sampled Social Security's worker's compensation offset determinations. In general, Social Security disability benefits are reduced if a claimant is also receiving workers compensation benefits. The computation of the offset can be complicated. The study showed a high level of errors, with most of the errors shortchanging claimants. The amount of money involved is staggering. Here is a table from the study:

Summary of Sampling and Estimation Results for WC Related Errors

Error
Category

Sample – Error Claims

Estimate to Population

Claims

Dollars

Claims

Dollars

Underpayments

19

$118,386

17,858

$111,268,016

Overpayments

8

$40,204

7,519

$37,786,614

Totals

27

$158,590

25,377

$149,054,630

Inspector General Wants Priority Processing For Cessation Cases

From a report by Social Security's Office of Inspector General:

We found that 53 percent of individuals in our population, who appealed a medical cessation decision and continued to receive payments throughout the appeals process, were overpaid. The overpayments were increased because SSA’s process for deciding medical cessation appeals is not financially efficient. Medical cessation appeals should not be processed in the same manner as cases not receiving payments. Therefore, to the extent possible, appeals that involve benefit payments should be processed separately from those that do not involve payments to avoid or minimize overpayments.

The President’s Management Agenda introduced the initiative of improved financial performance throughout Government agencies. By making SSA’s process for medical cessation determinations more efficient it would be better aligned with the President’s vision. If SSA would develop a process for making decisions on medical cessation appeals in a timely manner, financial performance of the DI program could be greatly increased.For example, if SSA decreased the processing time on medical cessation appeals (both reconsiderations and ALJ hearings) to 165 days, we project overpayments of approximately $30 million could have been avoided for FY 2003 and 2004. Based on the average of these 2 years, we estimate SSA could have avoided about an additional $15 million in overpayments in FY 2005.

Jan 31, 2007

Astrue Nomination Reported Favorably By Senate Finance Committee -- And More On Social Security Budget

This is the text of a press release from Senator Max Baucus, Chairman of the Senate Finance Committee (emphasis in original):
Washington, DC – In a vote off the Senate floor this afternoon, members of the Finance Committee favorably reported to the Senate the nomination of Michael Astrue to head the Social Security Administration. At Astrue’s nomination hearing this month, Finance Committee Chairman Max Baucus (D-Mont.) obtained a commitment from the nominee to “stay out” of political debates over the future of Social Security, including any rehashing of failed privatization schemes. Also today, Baucus applauded the news that the 2007 continuing resolution will restore $200 million in administrative funds to the Social Security Administration (SSA). Baucus has strongly urged the restoration of funds to SSA to prevent backlogs for disability benefit claims from getting worse, and to ward off expected staff furloughs that could have caused service disruptions.

“The next Social Security Commissioner will inherit a slightly brighter budget picture than was envisioned for this year,” said Baucus. “The continuing resolution still doesn’t give Social Security all the operating funds it needs, but at the very least we won’t see the 10-day staff furlough that was feared. Congress can’t forget that funding cuts to Social Security have a direct effect on the well-being of Social Security recipients and applicants. I will keep working to restore full administrative resources to Social Security in the coming year.”

A White House budget request in February of 2006 contained $9.59 billion in 2007 operating funds for Social Security Administration. During congressional consideration of the budget, that amount was reduced by $400 million, creating financial constraints for SSA.