Dec 6, 2011
Incident At Denver Office
A local TV station in Denver is reporting on a report that a Social Security claimant at a local Social Security office was punched. Who did it and why are not reported.
Payment Slowdown
Social Security has released updated stats on payments of fees to attorneys and others who represent Social Security claimants. See below. They shows a stunning decline in payments made since the beginning of the fiscal year, October 1.
I am well aware that the Social Security Administration does not exist to provide me and other attorneys with a means of making a living. However, when you are looking at these fee payments you are looking at a near perfect analogue of payments to disability claimants. The attorneys get paid at the same time as the claimants. If payments are delayed to the attorneys, it is only because payments are delayed to the claimants. Can I make it any clearer? This is not just an attorney problem. It is a sign of a major problem brewing.
I am well aware that the Social Security Administration does not exist to provide me and other attorneys with a means of making a living. However, when you are looking at these fee payments you are looking at a near perfect analogue of payments to disability claimants. The attorneys get paid at the same time as the claimants. If payments are delayed to the attorneys, it is only because payments are delayed to the claimants. Can I make it any clearer? This is not just an attorney problem. It is a sign of a major problem brewing.
Not only are October and November the lowest months for this calendar year; they are the two lowest months since December 2009! October and November are down 15% from the average for the preceding. fiscal year. Continue this over the entire fiscal year and it will be taking 1.8 months longer to get a claimant paid after a favorable decision or almost three months total.
There is some reason to believe that things are not as bad as they seem. The October payments were affected by Social Security's bizarre decision to tell many of its employees that it would essentially ignore any work they did in the last month of September. There were fewer favorable decisions issued in late September to be implemented in October. That was a bureaucratic foul up that will not be repeated.
Unfortunately, there are other reasons to be pessimistic about coming months. There is virtually no overtime at Social Security now and there is virtually no hiring. With no hiring, Social Security's workforce is slowly shrinking, which means that the payment delays will slowly accelerate as the workforce slowly declines. But, it gets worse still. Social Security has an annual workload crunch in January of each year. This is caused by the number of people who retire at the end of each calendar year, as well as the mailing of forms asking retirees under full retirement age to predict their earnings for the coming year and the mailing of SSA-1099s. These two mailings come at the very end of December or in January. They generate a spike in calls to Social Security's 800 number in January of each year. Social Security has traditionally responded to the increased telephone calls in January by "spiking" the employees whose normal job is putting claimants on benefits, that is calling them off their regular duties to answer the phone (something they do poorly but that's another story). In the past, Social Security has tried to make up for the "spiking" with overtime. With no overtime, there's going to be two problems in January. The phones won't get answered and claimants who have been approved won't get put on benefits. Unless Social Security has a little money for overtime, not only will the payment numbers for January be brutal; the telephone situation is going to be awful as well.
This is all a predictable consequence of Republican budget cutting. An indefinite continuation of this results in the Social Security Administration falling apart. Giving Social Security a slightly higher budget but directing that a huge proportion of the total budget get spent on program integrity, which seems to be the plan favored in Congress at the moment, does not help. It may make things worse.
There is some reason to believe that things are not as bad as they seem. The October payments were affected by Social Security's bizarre decision to tell many of its employees that it would essentially ignore any work they did in the last month of September. There were fewer favorable decisions issued in late September to be implemented in October. That was a bureaucratic foul up that will not be repeated.
Unfortunately, there are other reasons to be pessimistic about coming months. There is virtually no overtime at Social Security now and there is virtually no hiring. With no hiring, Social Security's workforce is slowly shrinking, which means that the payment delays will slowly accelerate as the workforce slowly declines. But, it gets worse still. Social Security has an annual workload crunch in January of each year. This is caused by the number of people who retire at the end of each calendar year, as well as the mailing of forms asking retirees under full retirement age to predict their earnings for the coming year and the mailing of SSA-1099s. These two mailings come at the very end of December or in January. They generate a spike in calls to Social Security's 800 number in January of each year. Social Security has traditionally responded to the increased telephone calls in January by "spiking" the employees whose normal job is putting claimants on benefits, that is calling them off their regular duties to answer the phone (something they do poorly but that's another story). In the past, Social Security has tried to make up for the "spiking" with overtime. With no overtime, there's going to be two problems in January. The phones won't get answered and claimants who have been approved won't get put on benefits. Unless Social Security has a little money for overtime, not only will the payment numbers for January be brutal; the telephone situation is going to be awful as well.
This is all a predictable consequence of Republican budget cutting. An indefinite continuation of this results in the Social Security Administration falling apart. Giving Social Security a slightly higher budget but directing that a huge proportion of the total budget get spent on program integrity, which seems to be the plan favored in Congress at the moment, does not help. It may make things worse.
Fee Payments | ||
|---|---|---|
| Month/Year | Volume | Amount |
Jan-11 | 34,467 | $113,459,847.04 |
Feb-11 | 33,305 | $107,796,771.38 |
Mar-11 | 34,885 | $112,463,768.46 |
Apr-11 | 48,033 | $153,893,755.37 |
May-11 | 36,479 | $115,159012.77 |
June-11 | 33,568 | $104,782,743.07 |
July-11 | 40,451 | $123,981,011.36 |
Aug-11 | 35,575 | $109,778,785.74 |
Sept-11 | 36,159 | $109,990,042.36 |
Oct-11 | 27,269 | $79,526,149.33 |
Nov-11 | 32,677 | $100,272,851.46 |
Dec 5, 2011
Social Security Workforce Slowly Dwindling As Workload Increases
The Office of Personnel Management (OPM) has posted updated figures for the number of employees at Social Security. Here they are, with earlier numbers for comparison purposes.
- September 2011 67,136
- June 2011 67,773
- March 2011 68,700
- December 2010 70,270
- June 2010 69,600
- March 2010 66,863
- December 2009 67,486
- September 2009 67,632
- June 2009 66,614
- March 2009 63,229
- December 2008 63,733
- September 2008 63,990
- September 2007 62,407
- September 2006 63,647
- September 2005 66,147
- September 2004 65,258
- September 2003 64,903
- September 2002 64,648
- September 2001 65,377
- September 2000 64,521
- September 1999 63,957
- September 1998 65,629
Dec 4, 2011
Watch The Social Security Subcommittee Hearing Online
The video of Friday's Social Security Subcommittee hearing on the future of Social Security's disability programs is now available online through C-SPAN.
Dec 3, 2011
Don't Overreact; We're Already At The Peak Of Disability Claims
I will have more on this in coming days but this is an excerpt from the written testimony of Steve Goss, Social Security's Chief Actuary, before the House Social Security Subcommittee yesterday:
Sustainable solvency can be restored for the Disability Insurance program with a 16-percent reduction in benefits, a 20-percent increase in revenue, or some combination of these changes. Even in the absence of such change, a simple tax-rate reallocation between OASI [Old Age and Survivors Insurance] and DI [Disability Insurance], as was done in 1994, could equalize the financial prospects of the trust funds. We estimate that temporarily raising the Disability Insurance program’s share of the 12.4-percent OASDI payroll tax rate from 1.8 to 2.2 percent for 2012 through 2024 and to 2.0 percent for 2025 through 2029 would make scheduled benefits payable for both OASI and DI beneficiaries until 2036. ...
[T]he baby boomers already moved from young ages (25-44) in 1990, where few were disabled, to older ages (45-64) in 2010, where many more are disabled. Thus, the 20-year demographic shift in the age-distribution of the population has already occurred for DI. ...
As a result, the number of workers per DI beneficiary is expected to be relatively stable in the future. This means that restoring sustainable solvency for the DI program will not require continually greater benefit cuts or revenue increases. A one-time change to offset the drop in birth rate is all that is needed to sustain the DI program for the foreseeable future.
Dec 2, 2011
Remand Assignment Policy Documents
As I come across them, I have been trying to upload to Scribd documents concerning Social Security policy over the years. Below are some documents showing Social Security policy on which Administrative Law Judge (ALJ) is assigned a case remanded by the Appeals Council or the federal courts. Should it be the same ALJ who heard the case the first time or a different one? This policy has changed over the years.
History of Remand Assignment Policy
Dec 1, 2011
Windfall Offsets Remain A Quagmire
From a recent audit report of Social Security's Office of Inspector General (OIG):
Our objective was to determine whether the Social Security Administration (SSA) had adequate controls to ensure Old-Age, Survivors and Disability Insurance (OASDI) benefits that had been withheld pending a Supplemental Security Income (SSI) windfall offset determination were paid accurately and timely. ...
Based on our random sample, we estimate that:
35,398 beneficiaries had SSI windfall offset actions that were not processed. As a result, SSA withheld about $306 million in OASDI benefits, of which we estimate approximately $232 million is payable to these beneficiaries.
17,067 beneficiaries had SSI windfall offset actions that were incorrectly processed. As a result, SSA improperly withheld or overpaid about $51.5 million in OASDI benefits for these beneficiaries.
60,051 beneficiaries had SSI windfall offset actions that were correctly processed but not in a timely manner. As a result, these beneficiaries did not promptly receive about $725.9 million in OASDI benefits
Subscribe to:
Posts (Atom)