Workloads Deferred -- Overpayments And Underpayments Result

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

... [I]n some cases, retired beneficiaries may continue to work while receiving Social Security benefits. In those instances, Title II of the Social Security Act (Act) requires that SSA use an Annual Earnings Test (AET) to measure the extent of beneficiaries' retirement and determine the amount, if any, to be deducted from their monthly benefits. ...

To ensure compliance with the AET provisions, SSA compares beneficiaries’ reported earnings that are recorded on SSA’s Master Beneficiary Record (MBR) with earnings that were reported by employers that are recorded on SSA’s Master Earnings File (MEF). This process, called the Earnings Enforcement Operation (EEO), is designed to detect over- or underpayments that may have occurred during the year.

Our 2007 audit of the AET disclosed SSA had not adjusted the benefit payments of all beneficiaries who were identified by the EEO. As a result, SSA overpaid about $313 million to 89,300 beneficiaries and underpaid about $35 million to 12,800 beneficiaries for Calendar Years (CY) 2002 through 2004. In addition, we found SSA had not processed approximately 2.1 million of the 2.5 million Earnings Enforcement selections for CYs 1996 through 2005.

Baucus On Reduction Of Backlog

A press release from Senator Max Baucus, the Chairman of the Senate Finance Committee, which has jurisdiction over the Social Security Administration:

To: Reporters and Editors

From: Dan Virkstis for Senate Finance Committee Chairman Max Baucus (D-Mont.)

Re: Baucus Statement on Reduction in Social Security Administration Disability Hearings Backlog

Senator Max Baucus issued the following statement today on news the Social Security Administration (SSA) reduced its backlog of disability hearings nationwide. The agency reported that, for the first time since 1999, SSA has ended the year with fewer pending disability hearings than in the prior year. Social Security ended fiscal year (FY) 2009 with 722,822 hearings pending, compared to 760,813 hearings pending at the start of the fiscal year, a reduction of more than 37,000 cases. SSA also made clear these reductions would have been larger if not for the increase in applications for disability benefits due to the recession. In addition, the average processing time for these cases improved from 514 days in FY 2008 to 491 in FY 2009.

“This announcement shows SSA has taken a good first step in its effort to reduce the huge number of backlogs of disability hearings. I am pleased with this progress but expect an aggressive path forward so disabled Americans, including veterans, are provided the service and benefits they need and deserve in a timely fashion,” said Baucus. “I urged Social Security Commissioner Astrue, at his confirmation hearing, to make reducing the disability backlog his top priority, and though much work remains to be done, I commend the Office of Disability Adjudication and Review and other offices at SSA for their hard work and commitment to this important goal.”

In May of last year, the Finance Committee held a hearing to examine service delivery to the public in Social Security’s field offices. Among the issues discussed was the fact that many applicants to the Social Security Disability Insurance (SSDI) program and the disability portion of the Supplemental Security Income (SSI) program face significant delays before receiving benefits. Total waiting times can exceed three years in some cases. Such delays create serious or desperate financial situations for applicants and their families. The largest contributors to these delays are the waiting times for disability appeals hearings.

Decreasing disability hearings backlogs and improving service to the public in SSA’s field offices require adequate funding for SSA’S administrative costs. In July of this year, Baucus applauded the Senate Appropriations Committee for including in their FY 2010 funding bill the President’s request of approximately $11.4 billion for SSA’s administrative expenses.

Three New Listings Proposals Filed With OMB

Social Security and all other agencies must obtain approval from the Office of Management and Budget (OMB), which is part of the White House, before posting any proposed regulations in the Federal Register. Social Security has just filed three regulatory proposals with OMB. These are for skin disorders, genitourinary disorders and for impairments affecting multiple body systems. The skin disorders filing is only an advanced notice of rulemaking that allows the public to comment but which does not reveal any plans that Social Security may have. Probably, the other two are similar, but OMB has not posted enough information to say.

Continuing Resolution Passed

In case you were worried -- and there was no reason to worry -- Congress has passed and the President will sign a continuing funding resolution to keep the federal government operating in the new fiscal year, which begins on October 1. Congress still needs to pass an appropriation for Social Security.

Cert Granted For EAJA Case

The Supreme Court has granted a writ of certiorari in the case of Astrue v. Ratliff. This means that the Supreme Court will hear the case. The issue is "Whether an 'award of fees and other expenses' under the Equal Access to Justice Act, is payable to the 'prevailing party' rather than to the prevailing party’s attorney, and therefore is subject to an offset for a pre-existing debt owed by the prevailing party to the United States."

Further News From Samoa

A broadcast e-mail from the Commissioner of Social Security:

To All SSA and DDS Employees

Subject: American Samoa Update 2

I just received the good news that all five of our employees in American Samoa are safe.

Unfortunately, their office is a total loss. Our colleagues will have many challenges in the coming weeks, but I know they will rise to the occasion and you can be sure we will be there to support them.

Michael J. Astrue
Commissioner

Hearing Backlog Improves

A press release from Social Security:

Michael J. Astrue, Commissioner of Social Security, today announced that for the first time since 1999, the agency has ended the year with fewer disability hearings pending than in the prior year. Social Security ended fiscal year (FY) 2009 with 722,822 hearings pending compared to 760,813 hearings pending at the start of the year, a reduction of more than 37,000 cases. Over the same period, the average processing time for these cases improved from 514 days in FY 2008 to 491 in FY 2009.

“Our backlog reduction plan is working, and progress is accelerating,” Commissioner Astrue said. “Even in the face of a significant increase in our workloads as a result of the worst recession since the Great Depression, we have reduced the hearings backlog for nine consecutive months. Thanks to the efforts of thousands of hardworking Social Security employees and the additional funding we received from President Obama and the Congress, we have exceeded our backlog reduction goal for this year.”

To achieve its backlog reduction goals, the agency has embarked on the largest expansion in decades of its capacity to hear disability appeals. This year, the agency hired 147 new Administrative Law Judges (ALJs) and 850 support staff and plans to hire 226 additional ALJs plus support staff in FY 2010. To provide flexibility to assist the most backlogged hearing offices, the agency opened three new National Hearing Centers (NHCs) in Albuquerque, New Mexico; Baltimore, Maryland; and Chicago, Illinois. The agency also has aggressive plans to open 14 new hearing offices and 4 satellite offices by the end of next year with the first of those new offices opening in Anchorage, Alaska in the next few months.

In addition to reducing the number of cases awaiting a hearing decision, the agency again targeted the oldest and most difficult cases for processing. Beginning in FY 2007 with 65,000 cases that were 1,000 days old or older, the agency has continually attacked its “aged” cases. This year, the agency targeted 166,838 cases that were 850 days or older and virtually eliminated this entire universe of cases. The goal in FY 2010 has been reset again to eliminate cases over 825 days old.

Social Security’s ALJs also continue to increase their productivity. The agency averaged 570 dispositions (2.28 per day) per available ALJ in FY 2009, an upward trend that has continued for the last three years.

I salute all those at Social Security who worked hard to achieve this. I wish I did not have to add that this improvement has largely come about because cases are piling up at the initial and reconsideration levels. Without those increased backlogs at earlier levels, I imagine that there would be no improvement.

And by the way, the scale on that chart makes it really misleading.

Financial Literacy Research Consortium

A press release from Social Security:

Michael J. Astrue, Commissioner of Social Security, today announced the establishment of a new Financial Literacy Research Consortium (FLRC), made up of research centers at Boston College, the RAND Corporation, and the University of Wisconsin. The FLRC, supported through five-year cooperative agreements, will develop innovative materials and programs to help Americans plan for a secure retirement.

“We have a responsibility to help the public understand the role of Social Security benefits and the need for them to save as they plan for their future,” said Commissioner Astrue. “Consequently, we have launched a research initiative to better inform the public about retirement saving options.”

The FLRC will tailor materials for Americans at different stages of their working lives - new workers, mid-career professionals, near-retirees, and those who have already left the workforce - to address the different challenges these individuals face. The FLRC also will help traditionally underserved populations better understand the path toward a secure retirement.

“The consortium constitutes an impressive collection of expertise and resources with a deep understanding of issues related to financial literacy,” Commissioner Astrue said. “We look forward to building a strong partnership with the FLRC as well as with other federal agencies with similar missions. In these challenging economic times, this partnership will help Americans to solidify their financial future.”