The Sky Is Falling

When you see headlines such as Social Security Races To 'Negative' (their single quotes, not mine) and Rush Of Retirements Push Social Security To Brink in USA Today you know someone is pushing private accounts. Sure enough, here is George Will's column touting a scheme proposed by Republican Congressman Paul Ryan:

Medicare and Social Security would be preserved for those currently receiving benefits or becoming eligible in the next 10 years (those 55 and older today). Both programs would be made permanently solvent. ...

Ryan's plan would allow workers younger than 55 the choice of investing more than one-third of their current Social Security taxes in personal retirement accounts similar to the Thrift Savings Plan long available to, and immensely popular with, federal employees. This investment would be inheritable property, guaranteeing that individuals will never lose the ability to dispose of every dollar they put into these accounts.

Ryan would raise the retirement age. If, when Congress created Social Security in 1935, it had indexed the retirement age (then 65) to life expectancy, today the age would be in the mid-70s. The system was never intended to do what it is doing -- subsidizing retirements that extend from one-third to one-half of retirees' adult lives.

I certainly hope that Republicans in Congress get a chance to vote on this proposal. By the way, I am pretty sure that the numbers do not come close to working for Ryan's scheme. If you stop one-third of the FICA taxes going into the trust funds, you soon run out of money to pay current retirees. Also, by the way, investing one-third of your FICA is not going to support you for long in retirement. It is not that much money.

In Vitro And Social Security

From the Chicago Tribune:

A[n Iowa] legislative subcommittee approved a measure Thursday giving inheritance rights to children born up to two years after their father's death.

The measure would mean children conceived through in vitro fertilization would be entitled to benefits such as Social Security survivor payments even if they were gestated after a parent's death.

The subcommittee approved the plan after hearing from Patti Beeler, a West Branch woman who gave birth to a girl after her husband died of cancer. She had to go to court to receive Social Security benefits because of a 150-year-old law limiting inheritance to children conceived during marriage.

The Social Security Administration is appealing a ruling granting her those benefits.

1099s

Attorneys and others who receive fees paid directly by Social Security for representing Social Security claimants have been receiving 1099s this week that are supposed to show the monies they were paid by Social Security in 2009. The comment heard from almost everyone receiving one of these 1099s is that it shows significantly less gross income than it should, perhaps 20% to 35% less. This is no big deal since it will not cause any tax problems for anyone but, still, it is something that should be fixed. I have heard speculation that the 1099s are not including fees paid in Supplemental Security Income (SSI) cases, that they do not include fees paid on dependent benefits or that only fees authorized by Social Security's Office of Central Operations are included. I expect that someone at Social Security knows the explanation. Can anyone enlighten us?

Centenarian Project

The Paperwork Reduction Act requires federal agencies who want to collect information from the public to go through some formalities, one of which is publishing a notice in the Federal Register., about any new information collection forms. Here is an excerpt from a Paperwork Reduction Act notice that Social Security recently posted in the Federal Register:

Centenarian Project Development Worksheets: Face-to-Face Interview; Telephone Interview; Third Party Contact ... SSA [Social Security Administration] is conducting interviews with centenary beneficiaries age 103 and older to assess: (1) If the beneficiaries are still living; (2) to prevent fraud, through either identity misrepresentation or representative payee misuse of funds; and (3) to assess the well-being of the beneficiaries. SSA's San Francisco field offices are currently using this survey and we intend to expand its use to all other SSA field offices.

Bomb Scare In Texas

The Victoria, Texas Social Security office was evacuated on Wednesday after a suspicious package was found in the lobby.

1099s Start Arriving

Attorneys have started receiving 1099s from Social Security showing attorney fees paid by Social Security. I have already received reports of income reported in box 7 instead of box 14, which is where I believe it is supposed to be reported, and of a 1099 not recording all Social Security attorney fees paid to an attorney in 2009, which will not cause problems for the attorney, but which is a bad sign anyway.

What are you seeing?

Is Social Security An Out Of Control Entitlement?

It is an article of faith among many that entitlements are destroying the federal budget and that Social Security is a big part of the entitlement monster. That may be true of Medicare, but Social Security? Take a look at this chart from the New York Times. Does it look like Social Security is threatening to wreck the federal budget? By the way, the author does make one big mistake. Social Security is not off budget. It should be and probably will be in the not too distant future, but it isn't now.

Union Newsletter Out

Council 220 of the American Federation of Government Employees (AFGE) ,the union that represents most Social Security employees, has issued its January 2010 newsletter.

The union and Social Security are in contract negotiations. The newsletter quotes the union president, Witold Skwierczynski, as saying that “After reviewing the Agency’s initial contract proposals, it is clear that SSA’s [Social Security Administration's] intent is to severely restrict the [Union’s] ability to represent SSA employees" which sounds like the prospects for a new contract are poor, but for Skwierczynski this is a bit tame.

The newsletter contains an interesting allegation of management impropriety at a field office:

The manager of the Independence, Missouri Social Security Office has apparently found a unique way to make himself look better: take applications from people with-out actually contacting them, and then process those phony claims.

When Jared Gaspard realized in June that his office would not meet its statistical “goals” for that month, he checked the agency’s computer system to determine who had filed for Social Security Disability but not SSI.

According to Witold Skwierczynski, the President of the National Council of SSA Field Operations Locals, Gaspard then manufactured a series of SSI applications.