Shutting Down A Scam

From Emergency Message EM 09039, issued on May 15:

The Federal Deposit Insurance Corporation (FDIC) has advised SSA of an order against the Bank of Agriculture and Commerce in Stockton, CA to “cease and desist” their alleged unsafe and unsound bank practices involving Social Security and Supplemental Security Income (SSI) benefit payments.

The FDIC’s investigation uncovered that the Bank of Agriculture and Commerce maintained a relationship with a third party, Petz Enterprises, Inc. (PEI), to solicit SSA/SSI beneficiaries for direct deposit of their payments and to deposit the benefits into a master account in the name of PEI. PEI, in turn, contracted out with check cashers, payday lenders, and retail merchants to enroll beneficiaries in their direct deposit program and disburse payments to the beneficiaries using questionable practices.

The investigation discovered instances where these check cashers; payday lenders and small retail merchants withheld the whole amount or a significant amount of the beneficiary’s benefit payment (e.g., transaction fees, cashing fees, short-term loans, and financing secured by upcoming benefit payments, repayment of loans, etc.) These practices left some beneficiaries in need of further short-term loans in order to meet their basic living expenses. ...

In response to the order to cease and desist, the Bank, FDIC, and SSA are working closely to inform the affected individuals of the need to make alternative payment arrangements by August 1, 2009 for receipt of future benefit payments.

When will Social Security shut down Allsup's similar arrangement?

Ticket To Work Remains A Sacred Cow

I did not have time to watch the House Social Security Subcommittee hearing today on the Ticket to Work program but judging by the prepared statements, none of the speakers was willing to be politically incorrect enough to call Ticket to Work what it is -- a well-intentioned but expensive failure. How much more money will be spent on this before Congress finally admits the obvious?

At Least Somebody Is Benefitting From Ticket To Work

From a press release:

MAXIMUS (NYSE:MMS - News) announced today that its Federal Services subsidiary has been awarded a five-year, $10.4 million contract by the Social Security Administration (SSA) to continue its work as the program data operations center manager for the Ticket to Work and Self-Sufficiency Program. ...

In addition to the contract renewal for program data operation services, MAXIMUS continues to run operations support management for the Ticket to Work Program. Under the current support management contract, MAXIMUS provides critical oversight and process support in order to sustain ongoing program operations, including the management of call center operations and maintenance of employment networks.

Witness List For Today's Hearing

Below is the tentative witness list for the 2:00 hearing today before the Social Security Subcommittee of the House Ways and Means Committee on "Employment Support Programs for Disability Beneficiaries:"

• Bobbie Christensen, Ticket to Work Program Participant, Mesa, Arizona
• Robin Clark, Ticket to Work Program Participant, Largo, Florida
• Sue Suter, Associate Commissioner for Employment Support Programs, Social Security Administration
• Cheryl Bates-Harris, Senior Disability Advocacy Specialist, National Disability Rights Network, on behalf of the Consortium for Citizens with Disabilities Employment and Training Task Force and Social Security Task Force
• Susan Webb, President and Co-founder, National Employment Network Association, Avondale, Arizona
• Thomas P. Golden, President, National Association of Benefits and Work Incentives Specialists
• Dr. Bruce Growick, Associate Professor of Rehabilitation Services, The Ohio State University College of Education, Columbus, Ohio
• Dr. John Kregel, Center Associate Director & Director of Research, Virginia Commonwealth University, Rehabilitation Research and Training Center on Workplace Supports and Job Retention, Richmond, Virginia

My first question is whether anyone will be politically incorrect enough to say the obvious -- that Ticket to Work is an expensive failure that should be stopped? My second question is whether they really found two sucess stories to present to the Subcommittee? That would not be easy to do.

I Don't Know Where The Ads Are Coming From

Ads have suddenly started showing up on this blog without my permission. I won't promise to never take ads, but the ads showing up now are unwanted, especially since I'm not being paid for them! I'm talking with Blogger.

What's Behind This?

A notice posted by Social Security on FedBizOpps.Gov:

The Social Security Administration (SSA) has a requirement for contractor services to collect, classify, and analyze occupational characteristics; job information; and functional limitation information documented in electronic claims of SSA adult title II and title XVI disability claims. Additionally, the contractor will perform a review of claims adjudicated at the initial and hearings levels for claims allowed or denied based on vocational factors at Steps 4 and 5 of the Sequential Evaluation Process.

Results Of Most Recent Unscientific Poll

The $250 economic stimulus checks are coming out now. What response are you seeing to these checks?

I haven't been getting calls about the checks. (30)	42%
I've gotten a few calls about the checks, but nothing much. (12)	17%
I've been getting quite a few calls about the checks. (4)	6%
I've been bombarded with calls about the checks to the point that it's hard to get anything else done. (2)	3%
I'm not in a position to be getting calls about these checks. (19)	26%
$250 economic stimulus checks? What are you talking about? (5)	7%

Total Votes: 72

Viewpoints On The Trust Funds

The National Academy of Social Insurance (NASI) sponsored a briefing on Friday where experts discussed the recently released Social Security Trustees report. Social Security's Chief Actuary Stephen Goss, Henry Aaron of the Brookings Institute and Charles Blauhous of the Hudson Institute, among others, spoke. The visuals prepared by the speakers are available online and are worth a look. Here is an excerpt from the materials prepared by Henry Aaron that caught my eye:

One-year change in value

Vanguard Prime Money Market [Mutual Fund]+ 1.97 %
Vanguard Total Bond Market Index [Mutual Fund] + 3.85 %
[Vanguard] Target Retirement 2010 [Mutual Fund] -19.23 %
[Vanguard] Target Retirement 2050 [Mutual Fund] -32.43 %
S&P 500 Index -35.31 %
[Vanguard] Total International Stock [Mutual Fund] -43.11 %
Social Security + 5.8 %
Social Security = Security

By the way, if I had to guess, I would guess that we are likely to see Congress enacting some increase in Social Security benefit payments next year, despite the fact that the statutory cost of living adjustment formula would not grant such an increase. I would be surprised to see any action to address the long term solvency issues with the Social Security trust funds. in the next two years. Barbara Kennelly of the National Committee to Preserve Social Security and Medicare mentioned giving a "cost of living adjustment" to Social Security recipients despite the lack of an increase in the cost of living when she spoke on Thursday at the NOSSCR Conference. That was the first time I have heard that idea mentioned, but I am pretty sure that it will not be the last time I hear it mentioned. Doing this makes great political sense for Democrats. Yes, I know it is a bit irresponsible. The best defense I can give is that it is not nearly as irresponsible as ending the retirement earnings test, which the Republicans did just after taking control of Congress in 1994.

Update: Actually, the end of the retirement earnings test came in 1996 for those above full retirement age. It was part of the Contract with America Advancement Act.