Social Security And Hatred For The Federal Government

The New York Times op ed page has a set of six short pieces by "experts" on ways to "fix" Social Security. Here is an excerpt from Roger Lowenstein's piece:

Finally, there is the “problem” that Social Security was invented by the federal government, which some people hate. The cure for this would be to legislate Social Security out of existence. According to its foes on the ideological right, it would be worth eliminating social insurance to people who are disabled or elderly, or whose private pensions have folded, or whose 401(k)s have melted away, because Social Security, the post office and other federal institutions are the root of all evil. It’s unlikely that people on Social Security agree.

We need to understand that hatred for the federal government is behind almost everything said and written on the subject of Social Security by the "experts" at right wing think tanks. They are not making proposals to enhance Social Security's long term financial health. They are making proposals that they believe will reduce the role of Social Security in our society and undermine its public support. It is pointless to try to compromise with people who are this ideological. They are never going to support tax increases. Even if they seem to agree to tax increases, they will never truly support them. Republicans in Congress will never vote for tax increases to support Social Security. It is far better to do nothing now than to embark on Social Security "reform" in this political environment.

Social Security Works

"If The Other Is Willing To Do It"

From the Wall Street Journal:

A White House-created commission is considering proposals to raise the retirement age and take other steps to shore up the finances of Social Security, prompting key players to prepare for a major battle over the program's future. ...

In addition to raising the retirement age, which is now set to reach age 67 in 2027, specific cuts under consideration include lowering benefits for wealthier retires and trimming annual cost-of-living increases, perhaps only for wealthier retirees, people familiar with the talks said. ...

On the tax side, the leading idea is to increase the share of earned income that is subject to Social Security taxes, officials said. Under current law, income beyond $106,000 is exempt. Another idea is to increase the tax rate itself, said a Democrat on the commission. ...

"Are Republicans willing to sign onto a tax increase, and are Democrats ready to sign onto a benefit cut? I think the answer is probably yes in both cases if the other is willing to do it," said Alice Rivlin, a Democrat and former White House budget director.

Update: The Wall Street Journal article suggested that the American Association of Retired Persons (AARP) might be willing to consider accepting Social Security benefits cuts. AARP has issued a press release rejecting any benefit cuts as part of a deficit reduction package. However, the press release leaves open the possibility that AARP might not oppose benefit cuts to "address Social Security's long-term financing."

Differences Between DDS And ALJs

Social Security's Office of Inspector General (OIG) has just issued a report on the differences between disability determinations made at the initial and reconsideration levels by the Disability Determination Services (DDS) and by Administrative Law Judges (ALJs) at the hearing levels. This study is going to attract a lot of attention. It is worth reading in its entirety but let me pull out three tables to give you an idea of what is in the report. Click twice on each thumbnail to view full size.

New Hearing Office In Massachusetts

From the North Andover, Massachusetts Eagle-Tribune:

LAWRENCE — Michael J. Astrue, commissioner of Social Security, and U.S. Rep. Niki Tsongas yesterday announced that the Social Security Administration plans to open a new hearing office ...

Plans call for the Lawrence hearing office to be staffed by seven full-time administrative law judges plus 40 additional support staff.

Would Increasing Full Retirement Age To 69 Be A Tweak?

From The Hill:

President Obama said Social Security is not in crisis and only modest changes are needed to keep it solvent.

The president acknowledged at a small town hall gathering in Columbus, Ohio, Wednesday that the pension fund "has to be tweaked because the population is getting older" but said Republicans' plans to drastically overhaul the program are wrong. ...

"I have been adamant that Social Security should not be privatized, and it will not be privatized as long as I am president," he added.

A Story Behind A Class Action

From the San Mateo Daily Journal:

Jose Alvaro Munevar, 55, was laid up in the hospital recovering from knee surgery when notified that his Supplemental Security Disability Insurance payments were suspended.

His payments were cut off because he bounced a $300 check in Las Vegas back in 2007, a felony in Nevada. ...

Munevar had overdrawn his account by only $15, a mistake that would ultimately cost the man several months of income and a little pride. ...

Munevar tried to clear up the warrant with Clark County, Nev. prosecutors but was unable to do it on his own. ...

[His case along with other cases] quickly turned into a class-action lawsuit as it became clear Social Security was wrongfully withholding payments from more than just a few people.

In fact, it wrongfully withheld payments from more than 200,000 people and owes about $700 million in back payments. ...

[Munevar's attorney] was able to get the Clark County arrest warrant “quashed” and Social Security paid Munevar $14,000 in back payments and restored his benefits.

Alliance For Full Participation

From a notice to "sole source" with Alliance For Full Participation:

The Social Security Administration (SSA) intends to negotiate on a sole source basis with Alliance For Full Participation, 202 Lexington Dr., Silver Spring, MD 20901 ...

Alliance For Full Participation (AFP) is a non-profit organization partnered with 15 non-profit disability organizations. As the umbrella entity for all these non-profits, AFP is uniquely qualified to partner with state level policy makers in all states on policy initiatives affecting transitioning to employment for youth with disabilities. ...

This is the type of outreach needed to provide SSA with reports on:

- State and national level strategic action plans that include stronger accountability by the members of each state team to ensure improved results for youth with disabilities;

-Strategies on more collaborative interagency (Federal/State/local/non-profit or commercial) relationships for improved post-school results;

-Effective evidence-based best practices that lead to successful adult outcomes for youth; and

-Suggested federal and national action for improving secondary education and transition results.

Certainly, more should be done to ease the transition to employment for young people with disabilities. I doubt that Social Security is the best agency to encourage this.

By the way, I can give Social Security advice on what is most needed to encourage these transitions (apart from an improvement in the general economy): more sheltered workshops and job coaches. My advice did not cost a penny and I doubt that anyone familiar with this subject would argue with it.