Updated Fee Payment Stats

Social Security has released the following final numbers for 2011 on payments of fees to attorneys and others who represent Social Security claimants:

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-11	38,447	$116,455,779.92

Not Out Of The Woods

     From Scott Hochberg writing in Huffington Post:

For Social Security’s advocates, this past year has been all about defense. Fortunately, the defense outplayed the offense. Those of us playing defense were backed by the overwhelming majority of the American people who across both party line and virtually every demographic are clear that they do not want to see Social Security benefits weakened by benefit cuts. ...

The journey has not been easy thus far, and the path ahead will be just as formidable. Despite the successes all year in preventing cuts to Social Security, as long as there are many in Congress intent on cutting the program, it will not be out of the woods.

2012 will be a crucial year for Social Security.The extension of the two percentage point cut in employee payroll tax contributions, is moving the program’s financing into unchartered waters.

The GOP presidential candidates are even more radical than Congress has been, with all the major candidates supporting partially privatizing Social Security and at least four calling for the retirement age to be raised (Bachmann, Perry, Romney, Santorum). Remarkably, four are also on record for calling Social Security a “fraud” or “Ponzi scheme” (Bachmann, Gingrich, Perry, Romney).

      Hochberg did not write about the attacks on Social Security disability benefits. Social Security's enemies realize that they are a long way from serious reductions in retirement benefits but believe that they can use the upcoming temporary disability trust fund problem as a pretext for gutting disability benefits. That is the biggest immediate threat to Social Security.

Separating Payment To The Attorney From Payment To The Claimant

     Quite a few years ago Social Security would authorize payment of back benefits to a claimant at one time and then later come back and authorize payment of the attorney fee. (This is so long ago there were no fees being paid to non-attorney representatives at the time.) This was felt to be necessary because the claimant had the right to object under the fee agreement process to the fee. 

     Eventually, Social Security decided this was both inefficient and unnecessary since claimant objections to attorney fees were so rare.

    It's happening again. The authorization of the back benefits to the claimant is being done at one time and the authorization of the attorney fee is coming later. I cannot say how widespread this is but I am starting to see this in most cases.

    This is inefficient. It seems particularly objectionable to me since I am paying a user fee for this service. I cannot understand why this is happening even under the extreme pressures that Social Security's payment centers are facing. It seems so inefficient. Why is this happening?

The Truth

     "We can no longer do more with less. We will do less with less ..." 
     --Carolyn Colvin, Social Security's Deputy Commissioner, speaking to the National Council of Social Security Management Associations (NCSSMA)

Happy New Year

Top Ten Most Read Posts Of 2011

Below are this blog's top ten most read posts of 2011:

1. Encryption Of CDs  
2. Can't Get A Social Security Statement Online Anymore  
3. Will The August Social Security Checks Come Out On Time? 
4. High Reversing ALJ Draws WSJ Attention 
5. No Overtime At Payment Center 
6. Shakeup Continues At Social Security  
7. August 3 Social Security And SSI Checks At Risk 
8. Will Social Security Checks Go Out In August?  
9. What Happens At Social Security In Case Of A Government Shutdown?
10. Union Concerns Over Possible Furloughs

Direct Deposit Fraud

     A television station in Tampa is reporting that there have been two dozen instances locally in recent months of Social Security direct deposits being diverted to bank accounts not controlled by the person who is supposed to be receiving the money. 

     This is highly worrisome since it may be impossible to prevent under current practices and could spread quickly. I don't think this is the last we will hear of this problem.

Not To Be Replaced

     From The Messenger of Fort Dodge, Iowa:

Ray Powell came with the wind, so to speak.

Powell began his career at Fort Dodge's Social Security Administration office in June 1979 - shortly after tornadoes struck Manson and Algona.

Powell's departure [from his job as office manager] is set to be somewhat less dramatic.

After 32 years in Fort Dodge, Powell will retire on Friday.

    Yes, someone else will replace him as office manager at least on a acting basis but his job won't really be filled since Social Security isn't hiring..  Service to Iowans will decline.