A Blow To Claimants Awaiting A Social Security Hearing

     While there has been a good deal of improvement in the backlog of Social Security claimants awaiting a hearing before an Administrative Law Judge (ALJ), we should not think that the problem has been resolved. Claimants in places like Columbus, Dayton, Cleveland and Buffalo are still waiting for 17 months on average. Most claimants are still waiting almost a year.

     The lack of adequate administrative funding for Social Security may soon start to make these backlogs worse. Social Security ALJs have always been helped at hearings by personnel who work in the hearing room, taking care of a number of functions, such as operating the recording equipment. In years past, this was done by some regular hearing office employees as part of their job duties..Social Security began contracting out this work some years ago. "Hearing reporters" paid by the case replaced regular Social Security personnel. This freed up regular Social Security employees to do other vital work.

     I heard this past week that the two Social Security hearing offices that my firm deals with most often, Raleigh and Fayetteville, NC are doing away with the hearing reporters for hearings held at the main hearing office. I was sorry to hear this since the hearing reporters I know do a fantastic job. I hate to see them lose their jobs. The bigger problem is that they will be replaced by regular hearing office personnel. This would be satisfactory if Social Security were hiring more personnel to take up the slack but I know that is not going to happen.

     This amounts to a cut in staffing at these two hearing offices. I cannot say exactly what the percentage cut in staffing will be. Perhaps, a reader can tell us what the Social Security Administration is expecting. I will give a ballpark figure that this amounts to a 5% cut in staffing but that is no more than a somewhat informed guess. I also cannot say how widespread this change will be. There are reports that this is only being done on a pilot basis but the fact that two hearing offices in one state are affected suggests that this may be a widespread change.

     This will certainly cause bottlenecks and increase backlogs at hearing offices wherever it is implemented. This is not happening because Social Security management wants to create bottlenecks or increase backlogs but because the agency is facing a serious lack of funding.

September 11, 2001

A Rare Thing For Social Security: A New Idea -- And AARP Likes It

From Jed Graham, writing at Investors.com:

It’s not every day, one can safely assume, that AARP’s chief policy guru John Rother offers supportive words about a specific approach for cutting Social Security benefits.

So it was to my great surprise that I received an email from Rother recently with relative praise for a new approach to Social Security reform called Old-Age Risk-Sharing that has flown under the radar of policymakers....

Of all the options, reducing COLAs [Cost of Living Adjustments] is among the worst approaches because it could make retirement at 62 look like a better financial decision than it really is — before the Social Security safety net is gradually unwound by inflation over the next few decades in retirement. 

Here is a brief case for a new approach that works in the opposite way — providing the biggest cut, though in a progressive way, in the first year of retirement in order to avoid any benefit cuts in very old age...

[I]in Old-Age Risk-Sharing, ... the steepest benefit cuts would come in the first year of retirement; the cuts would be progressively smaller for lower earners; and they would gradually unwind over 20 years to provide robust support for retirees of all income levels in very old age, when almost everyone will depend on it.

New Ruling Coming Out On Monday

Social Security has a new Ruling coming out on Monday concerning disability determination in younger adults. It's very long.

Here are a couple of excerpts (footnote omitted):

If a young adult has a substantial loss of one or more of the basic mental demands of competitive, remunerative, unskilled work, the occupational base will be significantly eroded, despite vocational factors that we would ordinarily consider favorable (for example, young age, college education, and skilled work experience).The basic mental demands of competitive, remunerative, unskilled work include the
abilities to:

• Understand, remember, and carry out instructions;
• Make simple work-related judgments typically required for unskilled work;
• Respond appropriately to supervision, coworkers, and work situations; and
• Deal with changes in a routine work setting. ...

[A] child’s impairment(s) that met or medically equaled a part B listing [as a child] will often meet or medically equal a part A listing at age 18 unless the impairment(s) has medically improved.

FICA Tax Cuts Are Centerpiece Of Obama's Plan

From a New York Times report on the President's speech to Congress last night:

The centerpiece of the bill [proposed by the President], known as the American Jobs Act, is an extension and expansion of the cut in payroll taxes [the FICA tax that funds Social Security payments], worth $240 billion, under which the tax paid by employees would be cut in half through 2012. Smaller businesses would also get a cut in their payroll taxes, as well as a tax holiday for hiring new employees.

What Is The Problem?

The Subcommittee markup of the appropriations bill that covers Social Security has been postponed once again. It had been scheduled for 9:30 this morning. The new federal fiscal year begins on October 2, which is only 22 days away.

New Rules Will Require Attorneys To Use Electronic Services

This will appear in the Federal Register on Monday:

We are revising our rules to require that claimant representatives use our electronic services as they become available on matters for which the representatives request direct fee payment. In the future, we will publish a notice in the Federal Register when we require representatives who request direct fee payment on a matter to use our available electronic services. We are also adding the requirement to use our available electronic services on matters for which the representative requests direct fee payment as an affirmative duty in our representative conduct rules. These revisions reflect the increased use of technology in representatives’ business practices. We expect that the use of electronic services will improve our efficiency by allowing us to manage our workloads more effectively. These rules do not require claimants to use our available electronic services directly; they only require their representatives to use the services on matters for which the representatives request direct fee payment.

The Two Leading Candidates For The Republican Nomination For President On Social Security:

 From last night's Republican Presidential debate:

HARRIS: Governor Perry, you said you wrote the book "Fed Up" to start a conversation. Congratulations. It's certainly done that in recent weeks.

In the book, you call Social Security the best example of a program that "violently tossed aside any respect for states' rights." We understand your position that it's got funding problems now. I'd like you to explain your view that Social Security was wrong right from the beginning.

PERRY: Well, I think any of us that want to go back and change 70 years of what's been going on in this country is probably going to have a difficult time. And rather than spending a lot of time talking about what those folks were doing back in the '30s and the '40s, it's a nice intellectual conversation, but the fact is we have got to be focused on how we're going to change this program.

And people who are on Social Security today, men and women who are receiving those benefits today, are individuals at my age that are in line pretty quick to get them, they don't need to worry about anything. But I think the Republican candidates are talking about ways to transition this program, and it is a monstrous lie.

It is a Ponzi scheme to tell our kids that are 25 or 30 years old today, you're paying into a program that's going to be there. Anybody that's for the status quo with Social Security today is involved with a monstrous lie to our kids, and it's not right....

HARRIS: Vice President Cheney though said it's not a Ponzi scheme. You say it is.

PERRY: Absolutely. If Vice President Cheney or anyone else says that the program that we have in place today, and young people who are paying into that, expect that program to be sound, and for them to receive benefits when they research retirement age, that is just a lie. And I don't care what anyone says. We know that, the American people know that, but more importantly, those 25-and-30-year-olds know that....

ROMNEY: Well, the issue is not the funding of Social Security. We all agree and have for years that the funding program of Social Security is not working, and Congress has been raiding the dollars from Social Security to pay for annual government expenditures. That's wrong. The funding, however, is not the issue.

The issue in the book "Fed Up," Governor, is you say that by any measure, Social Security is a failure. You can't say that to tens of millions of Americans who live on Social Security and those who have lived on it.

The governor says look, states ought to be able to opt out of Social Security. Our nominee has to be someone who isn't committed to abolishing Social Security, but who is committed to saving Social Security.

We have always had, at the heart of our party, a recognition that we want to care for those in need, and our seniors have the need of Social Security. I will make sure that we keep the program and we make it financially secure. We save Social Security.

And under no circumstances would I ever say by any measure it's a failure. It is working for millions of Americans, and I'll keep it working for millions of Americans. And we've got to do that as a party.