Ways And Means Committee Hearing

The House Ways and Means Committee has posted the written statements of the witnesses at today's hearing on Social Security's new National Computer Center project. The Office of Inspector General (OIG) is mildly critical of the length of time this has taken.

Government Shutdown Looming?

From Bill Matthews writing at Fedblog:

With the March 4 expiration date looming for the continuing resolution that's funding the federal government, budget expert Stan Collender offers this advice: Prepare for a government shutdown.

It is more likely than not that Congress will fail to agree on a new budget for 2011 in time to prevent the federal government from running out of money and simply closing its doors, Collender said Feb. 10.

"My strong suspicion is that the Republicans need to shut down the government once to show the Tea Party folks that they are willing to do it," he said during a discussion of the 2012 budget that's scheduled to unveiled Feb. 14. "I think there's a better than 50-50 chance that we will have one or more shutdowns, and at least one will be longer than a couple of days." ...

Layoffs are likely to happen earlier if there is a shutdown this year, he said. "I can tell you because I've talked to members of the contracting community and to [business] associations, and they've already started to prepare for this possibility."

Indictment In Alabama

From some the Huntsville, AL Times:

A federal grand jury has charged an Albertville woman with sending two fake anthrax letters to the local Social Security Administration.

Charged was Michelle Holladay Ryder, 43, according to U.S. Attorney Joyce White in Birmingham. Ryder faces two counts of mailing a letter containing a powdery substance and a note to someone at the Albertville Social Security Administration. The powder did not test positive for any biological hazards.

The maximum sentence for each count of sending hoax anthrax letters is 10 years in prison and a $250,000 fine.

Aaron Nominated To Chair SSAB

President Obama has nominated Henry Aaron of the Brookings Institution to become chairman of the Social Security Advisory Board (SSAB).

Update: By the way, Aaron is on the board of Abt, a major contractor with the Social Security Administration. I suppose he has to resign that position.

DCNs Decrease

Social Security's Office of Inspector General (OIG) recently did a study of "double check negotiation" (DCN), cases in which a Supplemental Security Income (SSI) recipient tells Social Security that their monthly benefits check did not arrive causing Social Security to issue a replacement check and the person cashes both checks. Social Security has been trying hard to reduce the number of these cases. According to OIG:

Recent actions taken by SSA [Social Security Administration] have been effective in preventing SSI DCNs. The total number of DCNs has declined steadily since 2002. System controls implemented in June 2007 have been effective in preventing instances where individuals commit multiple DCNs. In addition, based on our sample results, SSA has been effective in recovering overpayments from recipients who commit DCNs.

Get SSI Check Three Days Early?

This is a photo of a check cashing outfit in Greenville, NC. Note that the sign says "Get SSI Checks 3 Days Early." You may have to click on the photo to see it large enough to read the sign. Does anyone know how they are doing this? Is it legal?

Do They Deserve Sympathy?

From Tara Siegel Bernard's blog at the New York Times:

Some Social Security recipients are upset about a new Social Security Administration policy, claiming that it is “changing its rules in the middle of the game.” ...

Under the old policy, people eligible for benefits could take them early, then change their mind and then withdraw their application for benefits — as long as they repaid the full amount of the benefits received. That allowed them to restart the clock, and reapply for higher benefits later. ...

The agency’s new rule, which went into effect in December, now limits the time period during which beneficiaries can withdraw an application to within 12 months of the first month of entitlement. It also permits only one application withdrawal per lifetime. ...

Though the new policy is already in effect, there is a 60-day public comment period that ends today. The agency said it would consider those comments — there are more than 500 comments so far — and publish another final rule.

Several of the comments were from recipients who said they weren’t notified of the change. Many of them were angry, noting that they had made their decision to take benefits early knowing they could repay them later based on information received from their local benefits offices. Several people told the agency that this amounted to “changing the rules in the middle of the game.”

Disguised Unemployment?

The Courier-Post, a New Jersey newspaper, is running an article about the increased number of people who have filed claims for Social Security disability benefits after being laid off their jobs. There are many people who managed to barely hang onto their jobs when the economy was booming. Although their work performance was substandard and they missed many days due to illness, their employers did not fire them -- until economic times got tough. There are concerns that Social Security disability benefits not disguise the rate of unemployment by putting such individuals on benefits but the reality on the ground is much more complicated as this article demonstrates.