New York Police Officers Being Investigated

From the New York Post:

Up to 24 retired NYPD cops, some already getting tax-free disability pensions, are being investigated for allegedly feigning mental illness to add Social Security benefits to their juicy incomes -- even as they declared themselves sane enough to pack a pistol, The Post has learned. ...

The case began two years ago when Social Security investigators on an unrelated corruption case noticed that one lawyer represented an inordinate number of retired cops filing Social Security claims, a source said. ...

The retired cops appear to have used only a handful of lawyers to fill out the paperwork to support their bogus Social Security claims of mental illness -- and collect up to an additional $3,500 monthly on top of their disability pensions, the source said.

All of the cops also used the same group of shrinks, all of whom wrote prescriptions for medications. It was not clear whether the retired officers actually took the drugs. ...

The probe has already snared one former cop who was convicted on fraud-related charges, a source said. He was sentenced to prison, but details weren't immediately available.

Additional arrests are anticipated, although no breakdown was immediately available on the number of lawyers, psychiatrists or retired cops involved.

"I'd be very surprised if there are not further arrests," one insider said. ...

Lawyers allegedly involved in the fraud also face potential fee-gouging charges, a source said.

They're barred from charging more than $6,000 or 25 percent -- whichever is less -- of the monies awarded to a Social Security claimant, and those fees are supposed to be paid by the Social Security Administration, not the clients.

A source said one lawyer charged the retired NYPD cops far more than that to put them onto the government's gravy train -- a year's worth of SSA benefits, paid in cash.

I rarely read the New York Post. When I do, I am reminded of the words of the late Alabama governor, George Wallace, who said, "You gotta put the hay down where the goats can get to it."

Two Hearing Offices To Open In Ohio

From the Cleveland Plain Dealer:

Thousands of people in Ohio waiting for hearings on their Social Security disability cases -- some for more than a year -- should see that wait shortened by months after two new hearing offices open in Ohio on Aug. 16.

The two new local hearing centers, in Akron and Toledo, will bring a total of 119 new jobs to the state and increase the number of hearing offices in Ohio from four to six. ...

The ultimate goal is to reduce the average wait -- at all offices -- to 270 days by 2013, Social Security Commissioner Michael Astrue said in a telephone interview this week.

"The cavalry is coming over the hill," Astrue said.

"This is very good news from a backlog point of view, but it's also very important to have realistic expectations."

The centers will begin hearing cases by the end of August, Astrue said. But it will take months for them to get up to speed as new judges complete training and staffs settle in.

"You'll start to see some real contributions after about three months," Astrue said. "And that will increase steadily for the next nine months or so."

When the two new offices are fully staffed, Ohio will have 65 administrative law judges hearing disability cases across the state, 22 more than it has now....

Of the 147 offices in the United States, Columbus was dead last with an average wait time of 632 days, according to July data provided by the Social Security Administration. Cleveland was in 137th place with a delay of 549 days.

Social Security's 75th Anniversary On August 14

From the Sacramento Bee:

Evelyn Sekula's widowed grandmother struggled to survive during the Depression. Like millions of other elderly people, she had no pension and no savings.

"She had no income at all except for what my father gave her," said Sekula, 90, who lives at the Atria El Camino Gardens senior residence in Carmichael. "She was always looking for a way to make money. My father probably gave her $10 a month."

Today's older adults were children and teenagers when President Franklin D. Roosevelt changed the face of aging on Aug. 14, 1935, when he signed the Social Security Act into law.

They remember the difficult years when old age took place in a bleak, Dickensian landscape of need dotted with poor houses for those whose families couldn't support them. And they remember the difference that Social Security made in ordinary people's lives.

They also remember their parents' fears that Social Security amounted to socialism. Yet on the edge of the program's 75th anniversary, most of them can't imagine retirement without the small cushion of funds and dignity that Social Security provides. ...

"If it wasn't for Social Security, I'd be living under a bridge," said Jeneva Hammonds, 84 ...

"Social Security was the first government program instituting the concept that we have a collective responsibility for each other," said American River College gerontology department Chairman Barbara Gillogly. "Before that, there was no real concept of retirement.

"Most people worked until they died or were too ill, and then they were at the mercy of their family and friends."

E-File Access Delayed

A few hundred attorneys already have online access to Social Security's electronic files. There is some frustration that this has not been made available to everyone who represents Social Security claimants. I am hearing that the problem is technical. Social Security would like to allow people to sign themselves up online -- with proper security controls -- but the software is not cooperating. Social Security can only sign people up in person which dramatically slows down the process. The latest word is that Social Security hopes to automate the process by November.

Updated Fee Payment Numbers

Updated numbers on payments of fees to attorneys and others for representing Social Security claimants:

Fee Payments
Month/Year	Volume	Amount
Jan-10	32,227	$111,440,046.23
Feb-10	29,914	$105,708,101.59
Mar-10	34,983	$122,874,426.87
Apr-10	44,740	$153,478,589.32
May-10	34,686	$119,527,194.40
June-10	32,432	$111,887,579.72
July-10	32,232	$132,328,622.27

New Trial Ordered In UNUM Suit

That qui tam (or whistle blower) lawsuit claiming that UNUM , an insurance company which writes Long Term Disability (LTD) insurance and administers LTD plans for employers, was doing something abusive by forcing the people to whom it was paying LTD to file claims for Social Security disability benefits has been remanded by the First Circuit Court of Appeals. A new trial was ordered because the District Court had excluded evidence that the Federal Employees Retirement System (FERS) does essentially the same thing as UNUM.

By the way, retired Supreme Court Justice David Souter sat on the panel hearing this case. I hope he was more alert than retired Supreme Court Justice Lewis Powell was when I had him on a panel hearing a Social Security case I had appealed to the Fourth Circuit Court of Appeals many years ago.

Astrue On Trustees Report

From the Huffington Post:

[A]t a press conference Thursday, Social Security Commissioner Michael J. Astrue, one of the government trustees releasing the report, begged reporters not to scare the public by exaggerating the significance of trust fund exhaustion

"That does not mean that there will be no money left," Astrue said. At that point, even if Congress took no action, Social Security could still pay out 78 percent of expected benefits from annual revenues. "That would be a bad result, but it is a far cry from having no benefits at all," he said.

Inaccurate reporting on the topic tends to "make young people despair about Social Security," he said.

Health Care Reform Helping Social Security Trust Funds?

Bruce Webb at the Angry Bear blog makes an interesting observation about the annual report of Social Security's trustees issued yesterday:

The 2009 Social Security Report projected a 75 year actuarial gap for combined OASDI [Old Age Survivors and Disability Insurance trust funds] of 2.00%. ... I fully expected this gap to edge up. Instead it was revised down to 1.92% putting it back to where it was in 2001. Why the change? ...

The OACT [Office of Chief Actuary, Social Security] calculates that HCR [Health Care Reform] will result in dollars being shifted from employer paid health insurance to wages after the Exchanges et al are fully in operation. This seems to rest on an argument from economic theory that has employers setting total compensation at some rate established by the underlying fundamentals and then backing out health care costs from that, with the idea that savings in the latter simply means more of the total flowing to wages.