Happy New Year

Over The Cliff

     The House of Representatives is shutting down for the day without taking action on a fiscal cliff deal meaning we're going over the cliff at least for a day. There is no fiscal cliff deal at this point anyway. Will there be one before January 2? Stay tuned.

FICA Cut To End; No Sign Of Stimulus Funds

     Reportedly, the reduction in the F.I.C.A. will not be continued as a result of the fiscal cliff negotiations. Also, there is no sign that the agreement will include any stimulus funds although that could be in the details yet to be released. If there is any stimulus spending, Social Security could get some of it.

I Don't Know Where This Is Headed

     From a notice that Social Security is having published in the Federal Register on January 2:

We are seeking information and comments from other Federal agencies' regarding their intention to use the WHO ICF[World Health Organization International Classification of Functioning, Disability and Health] as a standard for coding functional capacity with broad potential for application to the business processes of other Federal agencies and researchers throughout the world. We invite other interested Federal agencies involved in disability monitoring to collaborate with us to evaluate an ICF-based standard for coding functional capacity in Federal disability programs. We also invite interested public and private parties to comment on appropriate Federal direction on capturing data on functioning. ...

The WHO ICF is a classification of health and health-related domains, including a list of body functions and a list of domains of activity and participation (see www.who.int/classification/icf/en/). The ICF for Children and Youth (ICF-CY) is a derived version of the ICF designed to record characteristics of the developing child and the influence of environments surrounding the child. The ICF and the ICF-CY reflect WHO’s framework for measuring health and disability at both individual and population levels. ...

We are studying several uses for ICF coding. We could use it, for example, to describe function in activities of daily living, to describe residual functional capacity (to satisfy a specific set of disability criteria), or to develop a compendium of job descriptions that includes mental and physical functional requirements.

     You can order your copy of the ICF for $50.

Cliffhanger

     The fiscal cliff negotiations drag on. At this point, preventing the sequester is on the table and the chained CPI change for Social Security's Cost Of Living Adjustment (COLA) is off the table. Republicans are even denying that they want chained CPI! 

     If this is not resolved, Social Security employees should soon expect to receive a furlough warning. As an example of what's coming, the Department of Defense is preparing to notify 800,000 civilian employees that they can expect several weeks of unpaid leave. However, the White House has not informed agencies of exactly how sequestration will be administered. According to the Wall Street Journal, the Office of Management and Budget (OMB) was not even returning phone calls on the subject last week!

No Surprise

     The user fee that attorneys pay for Social Security to withhold their fees from their clients' past due benefits will remain at 6.3% in 2013.

Sequestration Nearly Inevitable

     The Washington Post reports that sequestration seems all but certain to take effect on January 1. Most likely, it will last a couple of months. Social Security could avoid furloughs if sequestration were only to last a few days but it's hard to imagine such a huge cut in the agency's operating budget over a couple of months not resulting in furloughs.

     I was once a federal employee. I know many federal employees. I know that job security is an extraordinarily important consideration for most federal employees. I feel for the federal employees who may suffer partial or total furlough as a result of sequestration but I feel more for the members of the public who will suffer as a result of sequestration. This is a big deal.

     This shouldn't have happened.

No Chained CPI In Fiscal Cliff Deal But No Sequestration Fix Either

     In Social Security terms, the reports about the deal currently being worked out by Senate leaders to avoid the fiscal cliff are remarkable for what's not being discussed -- the chained CPI method of computing Social Security's cost of living adjustment (COLA) and any solution for the sequestration that will dramatically cut Social Security's operating budget on January. Also, the expected deal would do nothing about the debt ceiling problem.