Social Security News Retrospective For 2012

     Here are my picks for the most interesting news reported here in 2012:

• January 2 -- Carolyn Colvin, Social Security's Deputy Commissioner, speaking to the National Council of Social Security Management Associations (NCSSMA), says "We can no longer do more with less. We will do less with less ..."
• January 11 -- Insurers benefit from changes in Social Security death master files since they will not be forced to pay on many life insurance contracts where the beneficiaries are unaware of the insurance contract.
• January 14 -- Social Security lets contract for construction of new national data center.
• February 17 -- Social Security's Office Of Inspector General (OIG) issues report on "outlier" Administrative Law Judges (ALJs)
• February 20 -- A Rupert Murdock controlled media outlet starts the meme that the cause of the increase in the number of people filing claims for Social Security disability benefits is high unemployment rather than the aging of the baby boomer population. This new meme rapidly becomes the accepted wisdom of the political right if not the entire country.
• March 1 -- Social Security and the AFGE reach conceptual agreement on a new union contract.
• March 5 -- A Harris poll shows that only 12% of the population wants to cut Social Security benefits. All Republican candidates for President at the time wanted to cut Social Security benefits.
• March 16 -- Wanting to seem "serious" and apparently believing that Republicans were going to win the election, AARP signals its openness to cutting Social Security benefits. AARP must not have read the Harris poll.
• April 23 -- Social Security trustees report shows that the Disability Insurance trust fund is likely to run out of funds in 2016.
• May 9 -- Withholding the identity of the Administrative Law Judge (ALJ) holding a Social Security disability hearing isn't enough. The National Hearing Center ALJs will have to travel to hold hearings.
• May 14 -- Jacob and Sophia top the lists of most popular baby names.
• May 23 -- At a Congressional hearing, Social Security Commissioner Michael Astrue says that attorneys representing Social Security disability claimants have no duty to submit adverse evidence on their clients.
• May 31 -- Social Security announces that because of lack of funding the Work Incentives Planning and Assistance (WIPA) and Protection and Advocacy for Beneficiaries of Social Security (PABSS) programs will be terminated at the end of September
• June 14 -- Social Security awards $233 million contract to CenturyLink, Inc. for data networking services, the largest such contract ever awarded by the federal government.
• July 17 -- Women protest outside Social Security field office in Napa, California after woman was told she could not breastfeed at the office.
• July 27 -- Study shows that the majority of women retire on Social Security benefits at age 62. Only 18% of women wait until full retirement age of 66 or after to retire.
• August 2 -- National Organization of Social Security Claimants Representatives (NOSSCR) issues its first-ever press release.
• August 17 -- Ammunition purchases by Social Security's Office of Inspector General (OIG) draw public attention.
• September 13 -- Senator Tom Coburn issues report criticizing allowance of Social Security disability claims. The report expresses outrage that disability claims are approved even though some evidence contradicts approval of the claims.
• October 31 -- The ARC (Association for Retarded Citizens) gives Social Security Commissioner Michael Astrue its 2012 President's award for demonstrating a steadfast commitment to addressing the needs of disabled people, an award which astonishes some.
• November 1 -- Many Social Security field offices in the Northeast are closed due to the effects of Hurricane Sandy.
• November 8 -- Social Security announces that because of funding cuts its field offices will start closing at noon on Wednesdays beginning in January.
• November 30 -- Explosion at Arizona Social Security field office. No one is injured.
• December 12 -- Salvatore Petti, who was Treasurer of Social Security's central office Employees Activities Association for 40 years, is arrested for diverting large sums of money from the Association to support his lavish lifestyle.
• December 18 -- Two of Commissioner Michael Astrue's initiatives, the secret ALJ policy and the go-it-alone approach to a new occupational information system, collapse as his term draws to a close.
• December 22 -- Social Security employee reprimanded for excessive flatulence.

Is Chained CPI More Accurate?

     The "chained CPI" method of computing Social Security's Cost of Living Adjustments (COLAs) is being touted on two grounds. First, it saves money. Second, it's more accurate. Undoubtedly, it would save money but the second point is debatable. The chained CPI method is based upon the observation that if green beans get more expensive, consumers are more likely to substitute broccoli. A COLA based in small part on the price of green beans may be inaccurate because consumers will substitute an equivalent lower priced item. However, as Dean Baker at FDL argues, there is no proof that the chained CPI method is more accurate when applied to the elderly. The Bureau of Labor Statistics computes the CPI-E, the Consumer Price Index for the Elderly, that takes into account the increased health care expenses of the elderly among other age related spending differences. The CPI-E has been running higher than the chained CPI but has not been used in the computation of the Social Security COLA. There is no chained CPI-E, that is a chained CPI computed for the elderly. No one knows what it would show but the odds are high that a chained CPI-E would not be so unfavorable for the elderly as the plain chained CPI. It might be even more favorable for the elderly than what is being used currently to compute the Social Security COLA.

     In the end, the chained CPI has one real advantage -- it would save money. There's no proof that the chained CPI method of computing the COLA would be more accurate. Of course, I should mention that the chained CPI method has one big political advantage. It's so abstruse that few Social Security recipients understand it. However, they could probably understand a television ad criticizing a politician for "cutting" Social Security and that ad would have the advantage of being accurate.

Merry Christmas

Merry Christmas

There's Your Problem

     From Mark McKinnon writing for The Daily Beast:

Increasingly, it is becoming clear that the [Republican] party is against everything and for nothing.

Nothing on taxes. Nothing on gun control. Nothing on climate change. Nothing on gay marriage. Nothing on immigration reform (or an incremental, piece-by-piece approach, which will result in nothing). It’s a very odd situation when the losing party is the party refusing to negotiate. It may be how you disrupt, but it is not how you govern, or how you ever hope to regain a majority.

And so, we have a Republican Party today willing to eliminate any prospect for a decent future for anyone, including itself, if it cannot be a future that is 100 percent in accordance with its core beliefs and principles. That’s not governing. That’s just lobbing hand grenades. If you’re only standing on principle to appear taller, then you appear smaller. And the GOP is shrinking daily before our eyes.

Merry Christmas

Merry Christmas

"Conduct Unbecoming A Federal Officer"

     From the Smoking Gun:

A federal employee was formally reprimanded this month for excessive workplace flatulence, a sanction that was delivered to him in a five-page letter that actually included a log of representative dates and times when he was recorded “releasing the awful and unpleasant odor” in his Baltimore office.

In a December 10 letter accusing him of “conduct unbecoming a federal officer,” the Social Security Administration employee was informed that his “uncontrollable flatulence” had created an “intolerable” and “hostile” environment for coworkers, several of whom have lodged complaints with supervisors. ...

A redacted copy of the letter was recently circulated among officers of the American Federation of Government Employees (AFGE), the union that represents the SSA worker. Contacted today at his office, the employee said, “I can’t talk to you about this, I’m sorry.” The employee is being represented in connection with the reprimand by a lawyer for his union, AFGE Local 1923. Cynthia Ennis, president of the Baltimore-based local, did not respond to e-mail and phone messages about the matter.  ...

The employee is a claims authorizer at the SSA center that handles disability cases for the entire country.