Feb 2, 2007

Don't Tell Anyone! Social Security Can't Answer Its Telephones

This is basically a repeat of some information from a January 4 post, but I think it is worthy of another look. Many of the people who read this blog are involved with the hearing process at Social Security. They are well aware of the backlogs and delays at Social Security's Office of Disability Adjudication and Review (ODAR), but Social Security's budget and staffing problems go well beyond ODAR. Some of the most indisputable evidence of Social Security's terrible budget problems is outside ODAR.

Read over the excerpts below from a report of a recent conference call between Social Security officials and the National Council of Social Security Management Associations (NCSSMA), an organization of Social Security management personnel, on the subject of answering the telephones at Social Security. Think about what kind of turnover Social Security must have at its teleservice centers and what a year long hiring freeze will mean for Social Security's ability to answer its telephones. What kind of service will the Social Security Administration be able to give by September 30, 2007, when this fiscal year ends? Also, think about this question, why did Jo Anne Barnhart, who was Commissioner of Social Security until a couple of weeks ago, not publicize the agency's problems answering its telephones, even when she was in the midst of a struggle to get adequate funding for Social Security? She had clear evidence that service at Social Security was already at a level that any Congressperson would have to agree is unacceptable, but even as she was threatened with a budget that would take the service situation at Social Security from an unacceptable level to a crisis level, she could not bring herself to tell Congress or the American people about the situation. The damning information has to come out of an organization that few people have ever heard of.
From FY 05 to FY 06 there were 1 1/2 million more calls coming in to the agents[at Social Security teleservice centers that answer Social Security's 800 number calls]. ...

Rick [Warsinskey, president of NCSSMA] reported how FO [Field Office] managers report that many calls go unanswered in the FOs. The most recent report states FO’s got 67.8 million business related calls in FY 2005. He asked if there was any possibility of getting more FO calls routed to the 800# either by Forward on Busy (FOB) or publishing the phone number in the phone book. Do the TSCs [teleservice centers, which answer the 800 calls] have the capacity for handling these additional calls?

OTS [Office of Telephone Services?] responded that the TSCs are beyond capacity. The targets are at 330 seconds to answer a call. The target busy rate is 10%. If we sent more calls to the TSC we could seriously degrade the service we are giving now. There is no capacity for that work in the TSC nor is there any capacity to handle it in the FO. The TSC targets are way higher than the private sector. One difference is that SSA will busy you out. Private sector will not busy you out.

Companies in the private sector have goals like: answer 80% of the calls within 20 seconds. They are competition and profit driven and that adds to their drive. SSA is no where near that. Even our 10% and 330 second targets are hard to meet. Since the beginning of FY 07, we haven’t met our target more than 20 days.

Fee Payments in 2006

The Social Security Administration has finally posted the final 2006 numbers on payments of fees to attorneys and others for representing Social Security claimants. Normally, Social Security posts these numbers within a few days after the end of a month, but the figures for November and December 2006 were not posted until today. Here are the final 2006 numbers:

Fee Payments

Month/Year Volume Amount
Jan-06
18,752
$64,848,326.02
Feb-06
20,426
$70,312.586.15
Mar-06
26,227
$91,045,934.83
Apr-06
23,042
$79,714,961.76
May-06
23,581
$82,015,869.29
June-06
27,771
$97,085,724.60
July-06
21,432
$74,648,883.83
August-06
24,579
$85,528,548.61
Sept-06
28,968
$99,124,616.47
Oct-06
20,246
$71,009,543.75
Nov-06
18,322
$63,636,873.26
Dec-06
20,717
$71,825,808.27

The final total for 2006 was $950,797,676.84. This is an 11% increase over the total for 2005, which was $862,369,764.09, although one should not infer from this that those representing Social Security claimants are enjoying rapidly increasing fees. These numbers are heavily influenced by the advent of withholding of fees in SSI cases and withholding of fees for certain non-attorney representatives. Without those fees being added, the increase would have been far less dramatic. Undoubtedly, there has been some increase in fees over the rate of inflation, but this has come at a cost to those representing Social Security claimants. As the length of time that Social Security takes to adjudicate cases goes up, the fees go up, since they are based upon the amount of back benefits, but so does the work that the attorney or representative must do. The longer the case stays open, the more telephone calls the attorney makes and receives concerning the case, the more medical development the attorney must do and so on.

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