Unemployment And Disability Claims

     The abstract of  Characteristics and Employment of Applicants for Social Security Disability Insurance Over the Business Cycle, a study by Stephan Lindner and Clark Burdick for the Center for Retirement Research at Boston College:

This study investigates the relationship between fluctuations in the short-term unemployment rate and characteristics of applicants for Social Security Disability Insurance. Using administrative records of the universe of applicants between 1991 and 2008, we find that almost all of the increase in applications and allowances during recession periods is due to increasing applications and allowances of people whose applications are either rejected or determined by vocational factors. People who apply during economic downturns also have lower income and assets at the time of application and lower earnings several years after application. Further decomposition results suggest that difficult macroeconomic conditions during the time of application account for the negative relationship between the unemployment rate and post-application earnings and employment.

     And in the body of the report, these statements:

The results so far suggest that more people with moderate disabilities apply when the unemployment rate is high. Therefore, one would also expect that the fraction of applicants with musculoskeletal impairments or mental disorder increases with the unemployment rate. However, we do not [fi]nd supportive evidence for such a compositional change. ...

[W]e [fi]nd no evidence that younger workers apply more frequently during recessions and that the work capacity of applications during economic downturns is higher.

The New Meme

     The new meme for the right wing echo chamber: Record 10,978,040 Now on Disability; ‘Disability’ Would Be 8th Most Populous State.

     This just in: The number of people living in the United States who have ever been diagnosed with "cancer" is 19 million which would be the 5th most populous state, well ahead of the "Social Security disability state."

Final Rule On Garnishment Of Federal Benefits

     From today's Federal Register:

[Social Security and several other agencies] are adopting as final an interim rule to amend their regulation governing the garnishment of certain Federal benefit payments that are directly deposited to accounts at financial institutions. The rule establishes procedures that financial institutions must follow when they receive a garnishment order against an account holder who receives certain types of Federal benefit payments by direct deposit. The rule requires financial institutions that receive such a garnishment order to determine the sum of such Federal benefit payments deposited to the account during a two month period, and to ensure that the account holder has access to an amount equal to that sum or to the current balance of the account, whichever is lower.

     But Social Security, itself, can garnish these benefits before they're ever paid to collect a 40 year old debt.

Every Little Way

     From EM-13017 issued last week:

SSA [Social Security Administration] is implementing changes to reduce the agency’s printing and mailing costs. We will stop enclosing appeal pamphlets with initial award and denial notices. The body of the notice includes a detailed explanation of the claimant’s appeal rights. We will make appeal pamphlets available upon request. We will no long include return envelopes and pamphlets with any copies of notices to appointed representatives.

What Will They Do With The Report?

     From a presolicitation notice posted by Social Security at FedBizOpps.Gov:

Investigative services to be performed under contract to verify claimants? (sic) U.S. residency to establish eligibility for receiving Supplemental Security Income (SSI) benefits for (sic) the Social Security Administration (SSA). It is anticipated that one award will be made. The service area zones are located along the Mexico-U.S. border in Texas and New Mexico. ... Upon written request, the! contractor shall perform an unannounced onsite visit to the claimant's reported address to verify residency, contact one non-relative neighbor who has first-hand knowledge of individual's residence and submit a written report documenting results.

Political Patronage Jobs On Social Security Tribunal

     From The Canadian Press:

Up to a third of the people who landed cushy patronage jobs on the new Social Security Tribunal gave money to the Conservative party, public records show.

As many as 16 of the 48 people so far appointed to the tribunal donated money to the party, riding associations or candidates, according to Elections Canada records. None of the appointees appear to have given money to any other political party. ...

The new tribunal will also hear appeals from Canada Pension Plan and old-age security claimants.

The Social Security Tribunal appointments are full-time jobs that come with hefty salaries.

Most full-time members of the new tribunal earn between $91,800 and $107,900, while some earn between $105,900 and $124,500. Vice-chairs earn up to $164,600, while the chair makes up to $231,500.

Senator Says That Social Security Is Candy And It's Going To Kill Us If We Don't Do Something

     From a speech given in February by Senator Ron Johnson (R-WI) (emphasis added):

... The left is giving away candy.  You don’t have to buy it; they’re giving it away and it’s tasty stuff.  And what are we faced with as conservatives?  We’re the folks sitting on the sidelines going “Yes, I know you like that candy, but here’s the problem; it’s caused a cavity.  No, it’s even worse than that.  That cavity has abscessed and it’s worse than that.  That abscess has now caused an infection and it’s in the body and if we don’t cure it, you’re going to die.”

And so the left is still saying “No, no, no, don’t worry about that.  Social Security is still solvent.”  The left is saying “No, keep eating that candy, it’s really good for you,” and we’re the ones sitting there going “No, we got the shot of Novocain and we’ve got the drill.”  Do you understand the challenge?  ...

Memorial Day