Death Of Retired ALJ David Hubbard

Retired Social Security Administrative Law Judge David Hubbard of Forth Smith, Arkansas has passed away.

They Say We’re Young And We Don’t Know; We Won’t Find Out Until We Grow

From Starplus.com:

Millionaire pop legend Cher is eager to hand back her social security when she hits retirement age next year in a bid to help Americans struggling to pay their bills.

The Believe hit-maker will be eligible for pension payments from the U.S. government when she hits 66 next May ...

However, Cher is adamant she's too wealthy to accept the payments, and has taken to her Twitter.com page to ask how she can give the money back - and calls on other rich stars to follow suit.

She writes, "It's just my heart breaks 4 (for) the people of my country! Rich people should give their Social Security back 4 the 1's (ones) who need it. Someone said I should announce I want to give back my Social Security cause I don't need it! Great! I'm Down! But where? 

Still Negotiating Totalization Agreement With India

You may think this is a minor issue but I get a ton of hits whenever I post anything about it. It's a really big deal in India. This totalization agreement negotiation with India has been going on forever. From Rediff.com:

India on Friday asked the United States to move ahead with an agreement which would exempt professionals from payment of [Social] security taxes to mitigate the impact of a visa fee hike last year.

Both the sides are negotiating Bilateral Totalisation Agreement (BTA), which once signed, would benefit lakhs of Indians who are working in America and paying social security but are unable to get any benefit out of it.

By the way, lakhs means hundreds of thousands in the Indian dialect of English. India has the second largest population of English speakers on the planet. I think they're entitled to add a few words of their own to the English language.

Disability Fraud Ring In Seattle

From KING:

Nine members of one Seattle area family who allegedly collected over $700,000 by filing false mental disability claims and using fake identities were indicted on federal fraud charges Friday.

The defendants "claimed mental impairments prohibited them from working, when in fact they were working in various car sales businesses," according to a Department of Justice press release. ...

The defendants allegedly manipulated the Social Security disability program, also known as Supplemental Security Income, by faking disabilities at interviews, misrepresenting their work history and assets and using multiple social security numbers and numerous drivers licenses.

 

Early Reports On E-File Access At The Appeals Counci -- It's Not Working

I have heard from several attorneys who have tried to access e-file at the Appeals Council. No one seems to be able to access e-files there.

Congressional Hearing On Social Security Funding

 The House Social Security Subcommittee held a hearing yesterday on Social Security's finances. 

Stephen Goss, Social Security's long time Chief Actuary, testified about the underlying cause of Social Security's long term financing problem:

... [T]he real reason for the rising cost of Social Security over the next 25 years is the aging of the population, not principally because we are living longer or because of the post-World War II baby boom, but because of the drop in birth rates since the baby boom. ...

The fact that overall birth rates dropped from 3 to 2 children per woman in the United States has led directly to the change in the age distribution of our population that presents a financial challenge not only to Social Security and Medicare in the future, but also to every aspect of our economy. ...

Goss also addressed the question of whether the Social Security trust funds have any real significance:

Perhaps the strongest evidence of the importance of the trust funds is constraint they provide on program financing. History clearly shows that Congress is moved, even forced into action anytime a trust fund approaches exhaustion.

Thus, while Social Security has run a cumulative surplus of $2.6 trillion since it started collecting taxes in 1937, the rest of government has run up a debt now over $14 trillion and rising.

 Will this argument convince those who believe that the Social Security trust funds are a meaningless abstraction? Of course, not. They would be arguing that it's a meaningless abstraction even if the trust funds were completely invested in gold ingots.

The Subcommittee also heard from: 

• The Chief of Staff of the Joint Committee on Taxation, whose written remarks are about as tedious as one would expect from someone in his position.
• Someone representing a group of state and local employees who don't want to be covered by Social Security. Are you really sure given what's happening to public employee pensions?
• Alex Brill (who testified that if we raise the FICA tax, we should do it by extending it to employee benefits, which means that he's arguing for a middle class tax increase instead of an increase in taxes just on the wealthy) and Andrew Biggs (who recommended lowering benefits -- but not on poor people), both of whom work for the American Enterprise Institute and are thereby indirectly on the payroll of the Koch brothers.
• Mark Warshawsky, formerly a Bush Treasury appointee whose main job at the time seemed to be promoting Social Security privatization. He is now on the Social Security Advisory Board. He almost literally pleads in his written remarks that we not increase Social Security taxes on the wealthy. The first reason he gives is that this group has not "seen particularly large gains in earnings." His argument is that those earning between about $100,000 and $215,000 haven't had big earnings gains. It's those earning above $215,000 who have had the big gains! That's your best argument?

Randomization Of SSNs

A notice from Social Security:

Effective June 25, 2011, SSA [Social Security Administration] is changing the way Social Security Numbers (SSNs) are issued. This change is referred to as "randomization." The SSA is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.

If you are a conspiracy theorist, you already know the dastardly reasons for this change.

You Want A Fight?

“You want a fight? ... If anybody in this building wants to take on Social Security — privatize it, change the benefits by altering the consumer price index or by any other method — know this: You’ve got a fight on your hands.”

Rep. John Garamendi (D-Calif.) quoted in The Hill