Social Security Fix-It Book

The Center for Retirement Research at Boston College has released its most recent edition of the Social Security Fix-It Book, a graphic laden guide to how to deal with Social Security's long term financing issues. Unfortunately, I have to say that this book has a tilted take on the problem. The option of completely removing the cap on earnings covered by the FICA tax is not even mentioned, even though that is probably the method most favored on the left. Individual accounts, which are favored on the right, are discussed, but the book says that "the effect [on the shortfall] is indirect and unclear." That is false. Add-on individual accounts do nothing about the long term shortfall. Carve-out individual accounts make the problem worse.

Walking Out Empty-Handed

From the News Journal of Delaware:

Every year, more than 1,000 people tell their stories of ailments, impairments and shortened careers to a Social Security judge in Dover, hoping to win their claim for disability benefits.

Many who walk out empty-handed share one thing in common: Judith A. Showalter, the administrative law judge who denied their claim....

In fiscal years 2005 through 2008, the most recent years for which data are available, Showalter denied 56 percent of the cases she heard, twice the national average of 28 percent, Social Security figures show.

Claimants under age 50 face even tougher odds with Showalter. From 2005 through 2008, Showalter denied 70 percent of their cases, compared to a national average of 32.5 percent, agency data show.

Showalter's record was a big reason the Dover hearing office had the eighth-highest denial rate -- 44 percent -- among 141 offices nationwide

Fed Chairman Calls For Social Security Cuts

From Huffington Post:

Ben Bernanke [Chairman of the Federal Reserve] has overseen the greatest expansion of the Federal Reserve's balance sheet in its history, pouring trillions of dollars into Wall Street firms at roughly zero interest rates.

His generosity, however, has a limit.

In testimony before the Senate Banking Committee today, where he's seeking re-appointment as the Fed's chairman, Bernanke called for cutbacks in Medicare and Social Security ...

Bernanke reminded Congress that it has the power to repeal Social Security and Medicare.

"It's only mandatory until Congress says it's not mandatory. And we have no option but to address those costs at some point or else we will have an unsustainable situation," said Bernanke.

Social Security Offices To Be Closed Christmas Eve

From Commissioner Astrue to Social Security employees:

A Message To All SSA Employees

Subject: Leave on December 24th

This has been an unbelievably challenging, yet remarkable, year for us. I am keenly aware of the impact that the nation's current economic situation has had on our workloads. Once again, you have stepped up to this challenge and continue to set the standard for public servants. In appreciation for your hard work and dedication, on December 24, 2009, I am excusing employees from work and closing all Social Security Administration offices for normal business. The excused absence will be handled in accordance with existing policy and applicable negotiated agreements. The Office of Personnel will issue detailed guidance to managers and timekeepers.

I am grateful for the work that you do and for your accomplishments. Enjoy the satisfaction of a job well done and the additional time to be with your family and friends during this holiday season.

Michael J. Astrue
Commissioner

ODAR Deputy Commissioner Broadcast

Here is a copy of the December 3, 2009 Office of Disability Adjudication and Review Deputy Commissioner Broadcast. Click on each page to see it full size. A few highlights:

• This past month, we reduced the disability backlog by 3,399 cases, putting us at 8,337 below the FY 2010 opening pending of 722,822. We have now reduced the disability backlog 11 months in a row. We are fortunate, however, that receipts have been well below the projections, 11% below in October and 6% below in November.
• This fiscal year, we expect to replace all of our staff losses and hire approximately 1,300 additional employees ...
• On November 20, our first class of ALJs for FY 2010 was sworn in at the Longworth House Office Building in Washington, D.C. Congressman Earl Pomeroy delivered the keynote speech. By bringing on board 43 ALJs and 8 AAJs, we are on our way to increasing our ALJ corps to 1,450 by the end of the fiscal year.
• We have updated the ODAR map that shows our new hearing offices, satellite offices, and National Hearing Centers, plus the hearing sites scheduled to open during FY 2010. To view the map, visit http://odar.ba.ssa.gov/odarweb/DCDAR/ODARmap.pdf. [This is either a bad link in the original or only available to those inside the firewall at Social Security. I think that people on the outside would be interested in seeing this.]
  
• We have completed the FY 2009 fourth quarter reports for the Hearing Backlog Reduction Update booklets. We distributed to each member of Congress a booklet describing the progress we have made in their respective districts. To view these booklets, visit http://www.socialsecurity.gov/appeals/congressional-booklets.html.

Anything For Social Security?

The Hill reports that Democrats in Congress are in the early stages of developing a jobs creation bill that might be as much as $300 billion. Since Social Security got major funding in the last jobs bill, I hope Social Security is trying to get something out of this new bill.

Killing Off DSI

Former Social Security Commissioner Barnhart had a grand plan for resolving all the problems in disability determination at Social Security. It was called Disability Service Improvement or DSI. There were just a couple of problems with DSI. It made no sense. It did not work when implemented. It quickly became obvious that DSI would not last once Barnhart was replaced by Michael Astrue, the current Commissioner. However, some parts of DSI have continued in Social Security's Boston region. Social Security will publish proposed regulations in the Federal Register tomorrow to officially and finally kill off DSI.

Does anyone know how much money was wasted on DSI? Many people in high places at Social Security talked glowingly about the wonders of DSI while Barnhart was Commissioner. Did they really believe what they were saying?

Child Conceived By IVF Gets Benefits In Iowa

From KCRG:

A federal judge has ruled that a girl born almost two years after her father died of leukemia is entitled to the man's Social Security benefits.

A judge ruled that 6-year-old Brynn Beeler can collect Social Security survivor benefits. The girl was conceived through in vitro fertilization.