Problems With Federal Workers Compensation Offsets

Social Security's Office of Inspector General (OIG) recently looked at a sample of 50 people who were receiving both Social Security disability benefits and federal workers compensation benefits. Of that group, 32 had overpayments because their federal workers compensation benefits had not been considered in computing their Social Security disability benefits. Additionally, OIG looked at another 50 who were receiving Supplemental Security Income (SSI) benefits and federal workers compensation and found that 21 of them were being overpaid.

Before you assign the blame to Social Security, let me tell you that the federal Office of Workers Compensation Programs (OWCP) has a longstanding reputation for being incredibly incompetent. There are many attorneys who have handled one federal workers compensation case and decided that they never wanted to mess with OWCP ever again. At the moment, I am not sure that there is any attorney in the state of North Carolina who regularly takes on federal workers compensation cases. Around here, even the federal employee unions do not know who to refer these cases to. OWCP is the biggest mess of any agency, federal or state, that I have ever dealt with. Social Security has real problems with workers compensation offsets in general but difficulty in getting information from OWCP almost certainly exacerbates the problem for claimants receiving federal workers compensation benefits.

Disability Claims Spike In Georgia And Tennessee

From the Chattanooga Times Free Press:

Judy Duncan had worked in the same place for more than 40 years.

Over that time, her knees began to give out and, when she was laid off three years ago, she already was medically disabled, she said. ...

At 63, the East Ridge resident was able to get by in her job as an insurance company office clerk because she knew the job like the back of her hand and her employer accommodated her limitations, she said.

But when she found herself unemployed at the start of a worldwide economic crisis, her physical problems made it impossible to get back into the work force. ...

Duncan, with the help of her attorney, was approved for disability compensation seven months after losing her job.

There are thousands of other Americans just like Duncan, and they are fueling a large spike in applications for Social Security Disability Insurance benefits.

Nationally, applications were up 17 percent from 2007 to 2009. In Georgia and Tennessee, applications are up more than 25 percent in the same time frame, Social Security Administration numbers show.

Claims have risen so much, Georgia requested another 100 federally funded staffers to sort and handle the paperwork. Starting in mid-November, 35 of those employees will staff a new Claims Adjudication Office in Dalton, Ga. ...

Disability claims have been on the rise for years because of aging baby boomers whose ailments make work too difficult. But the latest spike, seen over the last three years, is fueled by both boomers and the economy, officials say.

A View Of The Future?

From the Sun Journal of Maine:

Thousands of people in the River Valley area, and Oxford and Franklin counties are expected to visit the Rumford Public Library soon for their Social Security needs rather than drive to Auburn.

Late Wednesday morning, representatives from the U.S. Social Security Administration, and Maine offices joined congressional, state and local officials in touting the administration's new real-time video service program.

The program, which allows people to file a claim or complete Social Security business face-to-face via a two-way video monitor with a representative about 50 miles away in Auburn, is the first of its kind to debut in New England, Jennifer M. Bowie, Social Security district manager in Portland, said.

For the record, I have no problem with this for sparsely populated areas. I am afraid that there are some who see this as a way of centralizing service delivery for Social Security. My experience is that Social Security's field operations are vastly more successful than its centralized operations such as the payment centers and the teleservice centers. There have always been those in Social Security management who are mistrustful of field operations and desire greater centralization. I do not understand their thinking.

Republican Plan Would Cut Social Security Dramatically

From a press release issued by the House Ways and Means Committee:

Ways and Means Social Security Chairman Earl Pomeroy (D-ND) today released the results of a study from the Chief Actuary of Social Security analyzing several proposals, including those advanced by Republican Congressional leaders, as ways to reduce the long-term cost of Social Security. The analysis reveals that, contrary to the assertions by their proponents, these proposals would have a profoundly negative impact on the retirement security of middle-class seniors in addition to high-income retirees. ...

The Office of the Chief Actuary analyzed several proposals - including those by Budget Committee Ranking Member, Rep. Paul Ryan (R-WI), and Minority Leader John Boehner (R-OH) - that claim to make "modest" changes affecting higher-income seniors in order to "save" Social Security.

"The new analysis reveals that these proposals result in benefits cuts ranging from ten percent to as high as 50 percent,” continued Pomeroy.

Update: The Washington Post has a story on this actuarial report which gives a response from one Republican:

Ryan spokesman Conor Sweeney said [Social Security's chief actuary, Stephen] Goss did not analyze the full effect of Ryan's plan to balance the federal budget and ignored Ryan's proposal to guarantee a higher minimum benefit to low-income retirees. More to the point, Sweeney said, failing to overhaul Social Security - which is already paying out more than it collects from payroll taxes - will cause more immediate harm.

"According to the Social Security Administration, Congressman Pomeroy's do-nothing plan will impose painful, across-the-board benefit cuts on current seniors and those nearing retirement," Sweeney said. "It is deeply irresponsible for elected leaders to stand idle with icy indifference as the social safety net collapses."

I expect that Republicans will attempt to harass Stephen Goss if they gain control of either house of Congress after the election. They do not like hearing just before an election that their plans for Social Security have serious problems. Of course, I am not sure how they can harass Goss since he is just telling the truth.

Social Security Warns Of Scam

From KOLO-TV:

Watch out for callers who try to get your personal information, Social Security warns.

The latest telephone scam appears to be targeted at the Latino community. In this scam, the caller tells beneficiaries that they will be receiving additional payments from Social Security. All they need to do is verify their bank account information and Social Security Number in order to receive these funds. The caller also told beneficiaries that they would not receive the money unless they provided the requested information by a specified date.
Click here to find out more!

As a general rule, Social Security will not call you for your personal information such as your Social Security Number or banking information.

"If something about a call doesn't feel right, it probably isn't legitimate," Social Security Regional Communications Director Leslie Walker warned.

Financial Literacy Plan Runs Into Obstacles And Opposition

From a report by Social Security's Office of Inspector General (OIG), responding to a request from House Social Security Subcommittee Chairman Earl Pomeroy (footnotes omitted):

In a May 20, 2010 letter, you requested that we conduct an audit of the Social Security Administration’s (SSA) Financial Literacy Initiative. Specifically, you requested that we determine (1) why SSA considered its Financial Literacy Research Consortium (FLRC) necessary; (2) whether SSA coordinated with other agencies or the Office of Management and Budget to ensure research and development efforts were not duplicative; and (3) what SSA’s expert panel found when reviewing the FLRC grant proposals. ...

In April 2009, SSA published a Request for Applications (RFA) soliciting research proposals for a 5-year cooperative agreement for which SSA would award grants. ...

In the first stage of the review process, SSA deemed all 10 applications received to be responsive to the RFA criteria.

The second stage called for an expert panel to conduct a technical review and score applications. SSA selected a 12-member expert panel to provide seasoned and respected input. The panel was highly diverse with respect to expertise, organizational representation and outlook, and personal demographics. The panel included Federal executives, experts from the private sector, and academia. ...

After the official review and scoring was complete, some panel members discussed the non-scoring feedback they provided to SSA. Because many had concerns about the proposals, 8 of the 12 expert panelists signed and submitted a letter to SSA contracting personnel. The letter stated that panel members did not believe SSA should fund any of the submitted proposals because they did not address the needs discussed in the RFA. The letter also stated that SSA should cancel the RFA and develop a new one if it wished to focus on improving financial management and decision-making among lower- and middle-income Americans. ...

Results of Review ...

When developing the RFA, requesting resources for the initiative, and ultimately funding the proposed activities of the research centers, SSA coordinated with OMB, other Federal agencies, academia, and leading experts in the field of financial literacy. Although avoiding duplication with other research and development activities may not have been SSA’s primary goal, the Agency was proactive in briefing numerous stakeholders regarding its plans. ...

In our interviews with 11 of the 12 expert panel members, almost all echoed the concerns outlined in the letter they sent to SSA contracting personnel after reviewing and scoring the FLRC grant applications. In fact, although only 8 of the 12 panel members signed the letter, 10 of the 11 we interviewed generally agreed with the concerns expressed. ...

Because SSA officials did not believe Federal grant-making rules allowed them to discuss the concerns expressed in the letter with the expert panel members, SSA did not directly respond to the panel’s letter. ...

In response to congressional questions about duplication of other initiatives, the Commissioner of Social Security responded, “Now that I am aware of these concerns, I have directed staff to closely monitor the progress of the FLRC . . . I will thoroughly review this situation and determine if further action is necessary.” ...

In addition to the concerns expressed in their letter, some panelists told us they had other concerns with the FLRC review process. For example, most of the panelists told us there was a lack of communication with SSA during and/or after the FLRC review. One panelist told us that SSA representatives who were present during the full panel meeting did not want to address panelists’ concerns. In fact, one panelist told us if SSA decisionmakers had addressed their concerns during the panel meeting, they probably would not have written the letter. ...

One panel member stated that, to an extent, the panel’s criticism of the proposals reflected criticism of the financial literacy initiative as a whole. He said that SSA was “reinventing the wheel” in that the proposals were similar to efforts already undertaken by other Federal agencies and nonprofit organizations. ...

One panel member believed the panel was uncertain what the RFA was trying to accomplish. She believed the centers receiving the panel’s top scores were already receiving substantial funding from other sources, and she did not think any of the proposals would accomplish more than what was already being done in the area.

Was this plan in the works before Michael Astrue took office?

Watch Out Houston!

From a presolicitation notice posted by the Social Security Administration on FedBizOpps.gov:

The Social Security Administration (SSA) , Region VI Dallas Region, intends to solicit for Fraud Investigation Services for the Dallas Region VI Cooperative Disability Investigations Unit (CDI) located in Houston, TX. The requirement is for the investigation of suspected fraud activities against the Social Security Administration's Title II and Title XVI Disability Programs (including Title XIX Medicaid) in the Houston, TX metropolitan area. The contractor shall provide the necessary personnel, materials, services, equipment and perform all tasks necessary for or incidental to providing the required services. The contractor must be able to provide the following: (1) State wide arrest authority as defined by the statutes and regulations of the State of Texas; (2) Access to reports which are restricted to law enforcement officials; (3) A license to carry a concealed weapon (must be armed); (4) Training in arrest techniques and (5) A valid certification by a Class A Law Enforcement Department (6) Ability to testify in court.

I Predict No Response Before The Election And A "Hell No" After The Election

From Political Brief:

Sen. Majority Leader Harry Reid (D-Nev.) wrote to his counterpart today asking for GOP support on helping social security recipients who will not receive cost-of-living adjustments next year.

In a letter to Minority Leader Mitch McConnell (R-Ky.), Reid urges the Republican to support Democratic legislation that would provide one-time $250 checks to seniors in 2011. ...

Reid’s letter was co-signed by 18 other Senate Democrats ...