Dec 22, 2012
Dec 21, 2012
What Follows Plan B?
When House Speaker's Boehner decided to go ahead with his "Plan B", we started down a track that seems to lead directly over the "fiscal cliff." I'm not sure that the failure of "Plan B" in and of itself made the jump into the abyss more likely but the lack of progress over the past few days and the fact that the House of Representatives is adjourning until after Christmas makes that terrible outcome seem nearly inevitable.
At this point, I think the "chained CPI", which would reduce the Social Security Cost of Living Adjustment (COLA), is less likely to come to pass than it was last week. It appears that nothing can be passed in the House of Representatives without Democratic votes and the price of those votes is the end of the chained CPI. The current 2% reduction in the F.I.C.A. tax is almost certain to end on December 31. That might be revived later but I wouldn't bet on it. Social Security and other agencies will almost certainly get hit by sequestration on January 1. Sequestration dramatically lowers the agency's budget and will eventually bring about employee furloughs. However, the Office of Management and Budget is telling agencies to send out messages to their employees that do not mention furloughs. I take that to mean that there is enough leeway for Social Security and other agencies to delay furloughs in the expectation that sequestration will not last long.
Also, I hate to mention it, but we're approaching the statutory cap on the federal debt. Even with everything that happens with the fiscal cliff, we'll still get to that cap sometime in January or early February. The consequences of getting to that cap are almost incalculable. Even shutting down the federal government will probably be inadequate to prevent the country defaulting on its debts. It may take significant reductions in everything including Social Security payments, which, in its own way, would be a default on a federal debt.
How Is This Witness Tampering?
From the St. Louis Post-Dispatch:
A security guard has been indicted in federal court here for allegedly outing a federal investigation by the Social Security Administration, charging documents claim.
The indictment says that Mamie Wills, 66, was working as a security guard at an unidentified St. Louis County office building when on April 4, she spotted an officer of the Social Security Administration's Cooperative Disability Investigations Unit tailing a man who was claiming to be disabled. The man was going to a medical appointment in the building.
Wills apparently became suspicious and wrote down the license plate number of one officer's car, causing another officer to “intervene” and tell her who they were and that they were conducting an investigation, the indictment says.
When their target left, Wills told him that he was being followed and videotaped by investigators, the indictment claims.
Wills was indicted on a witness tampering charge Dec. 13 and appeared in U.S. District Court here Wednesday to plead not guilty to the charge.
Dec 20, 2012
Article On Backlogs In Disability Determination
Gannett is running a piece on backlogs in Social Security disability determinations. It is one of the most uninformative piece of its type I've seen with a mention of the possibility of claimants "gaming" the system and a discussion of the impending shortfall in the disability trust fund that mentions three possibilities for fixing the problem without mentioning the inevitable solution, interfund borrowing!
Dec 19, 2012
Can't Issue Decisions Until After January 1?
I don't know what to make of this e-mail I received from a legal assistant at my firm: "I just spoke with an examiner [disability examiner at North Carolina Disability Determination Services] who stated they are unable to close any cases
right now, other than Medicaid [eligibility determinations]. She stated that they hope they will be able to resume
soon after the 1st."
This does seem to track with what we're seeing at my firm -- no initial or reconsideration determinations in December. Can anyone explain what might be going on? I hope this is limited to North Carolina.
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