Just In Britain?

     From a press release issued by Kent University in England:

Misleading news coverage, driven mostly by the policy process, is preventing thousands of people in need from claiming vital welfare benefits, according to a new report by University researchers on behalf of the charity Turn2us.

The report, titled Benefits Stigma in Britain, reveals that one in four eligible people had either delayed claiming or refused to do so completely due to the perceived stigma attached to applying for state support. ...

The research, which included an analysis of media coverage since 1995, shows that disproportionate coverage of fraud and misleading news stories are linked to rising stigma, with people who read more stigmatising newspapers perceiving higher levels of deception and demonstrating more reluctance to claim, even when they are experiencing abject need.

Dr Baumberg said: ‘The study also highlights a discernible shift in public attitudes, with claimants seen as less deserving than they were 20 years ago, when the fraud and scrounger rhetoric really started to take hold in media discourse. Looking at trends over time, non-take-up of benefits has risen concurrently with stigma. ...

Rob Tolan, Head of Policy at Turn2us, said: ‘At a human level, stigma is resulting in thousands of elderly, sick and disabled people skipping meals or keeping the heating off, lest they be tarred with the “scrounger” brush. One lady we helped, who was left disabled by a brain tumour, ate porridge five nights a week, rather than ask for help. ...
The research found that only 15% of people think that they would be treated with respect when making a claim for benefits. ...

Broomell A Special Employee

     From the Washington Post: 

David Broomell, a longtime Social Security programmer and project manager, has been instrumental in creating new ways to make visits to Social Security offices more customer-friendly through innovative information technology solutions. At the same time, he has developed new computer tools for employees, allowing them to offer more timely and efficient assistance to beneficiaries. ... 

Going back more than a decade, Broomell helped transform an inefficient manual system used to check in and process visitors at Social Security offices nationwide by creating an automated intake process. He continually upgraded the system to include touch screen monitors, TV wait-time displays and real-time management of information. ... 

Broomell, who works near Minneapolis, currently is collaborating with IT colleagues at the Social Security headquarters in Baltimore on a nationwide rollout of a new centralized web-based customer-intake process. This will replace Broomell’s visitor process system, which has operated through separate computer servers housed at each individual Social Security office around the country. ... 

He created a web-based application to identify administrative appeals involving Social Security disability claims that had been decided but were not fully processed and therefore delayed the reporting of the judicial rulings. Broomell’s system replaced a labor-intensive, manual process fraught with errors that enabled the agency to clean up its records and report the appeal decisions in a fraction of the time.

Glad We Got Solutions To Those Problems!

     The Cato Institute, a right wing "think tank", has issued a set of what it calls "essays" on "downsizing" Social Security (lots of quotation marks here but they're all merited):

Social Security Retirement: Social Security faces a huge financing gap because of its pay-as-you-go structure and the aging of the U.S. population. It should be transitioned to a system of personal savings accounts, which would increase individual financial security and help to avert future tax increases.   

Social Security Disability Insurance: Growing numbers of Americans are receiving disability benefits, and the system is subject to major abuses. Policymakers should tighten eligibility for the program and explore ways to move it to the private sector.   

Supplemental Security Income: This program for low-income and disabled individuals suffers from similar abuses and overspending problems as Social Security Disability Insurance. The financing and administration of Supplemental Security Income should be devolved to the states.

An Omission Noted

     From the Center on Budget and Policy Priorities:

The House Ways and Means Committee has invited members of the public to comment on the Bowles-Simpson and Domenici-Rivlin plans to restore solvency to Social Security.

But there’s a glaring omission:  from reading the committee’s description of the two plans — and its draft bills — you’d never know that both Bowles-Simpson and Domenici-Rivlin urged significant increases in Social Security taxes.

Looking Good Through First Half Of Year

     Social Security's only urgent funding problems is the Disability Trust Fund. The projections are that it will run out of money in 2016. I had written last month about the fact that so far this year the Disability Insurance Trust Fund was doing much better than anyone had projected.
     We now have updated numbers on the income and outgo from the Disability Trust Fund through June of this year. I won't get too deep into the weeds here. The bottom line is that the Disability Trust Fund balance stood at $110.9 billion at the end of June, 2013. This is $11.8 billion below where it stood as of the end of 2012. That's a scary sounding drop but compare it to the projections for 2013. Note that I said projections. Social Security's Office of Chief Actuary makes three projections for each of the trust funds, an Intermediate projection, which is the one typically quoted in the media as well as a Low Cost or optimistic projection and a High Cost or pessimistic projection. Here are those projections for the entire year compared to the results halfway through the year:

• Optimistic projection: Disability Trust Fund balance at end of 2013, $92.4 billion, down $30.3 billion from end of 2012
• Intermediate projection: Disability Trust Fund balance at end of 2013, $89.2 billion, down $33.5 billion from end of 2012
• Pessimistic projection: Disability Trust Fund balance at end of 2013, $85.8 billion, down $$36.8 billion from end of 2012
• Actual results halfway through year: Disability Trust Fund balance, $110.8 billion, down $11.8 billion

     The actual results so far this year are considerably better than even the most optimistic projection. Does that mean that we're still going to hell in a hand basket but just not quite as fast? No, it may mean that we're not going to hell at all. The optimistic projection is that the Disability Trust Fund never runs out of money, that the draw down of its assets slows and eventually reverses in 2020, before the Disability Trust Fund ever runs out of money. So far this year we're doing much better than even this optimistic projection.

     This doesn't mean that next year's projections will all say that the Disability Trust Fund will never run out of money but barring a sudden reversal over the last six months of this year, it's clear that next year's projections are all going to look better, perhaps a lot better. We're going to start out with a higher trust fund balance at the end of 2013. The actuaries will also be applying projected percentage changes in income and outgo in future years to a better baseline. Finally,  there's a good chance that the actuaries will be projecting more favorable percentage changes in income and outgo for future years because of the favorable results this year.

     I think it's already possible to project that next year's Office of Chief Actuary's Intermediate projection will be that the Disability Trust Fund will have enough money to keep going at least until 2017. The intermediate projection may even be that the Disability Trust Fund keeps going until 2018, which would be an enormous change over the course of just one year. A change of even one year in the date that the Disability Trust Fund runs out of money is a big deal politically. Republicans probably control the House of Representatives in 2016 and may control the Senate (to the extent that anyone controls the Senate). It's not a good year to have to make changes in Social Security's disability programs. 2017 on the other hand, who knows? This probably means no significant legislative changes through the end of 2016. The realistic possibility that no change will be needed at any point in the foreseeable future is huge.

Social Security Bulletin Released

     The August 2013 issue of the Social Security Bulletin, the agency's scholarly publication, has been released

Sheriff Pleads Not Guilty

     From the Mobile Press-Register:

Washington County Sheriff Richard Stringer formally pleaded not guilty Wednesday to charges that he helped an employee evade Social Security rules capping the amount of retirement money he could earn.

Authorities allege that Stringer agreed to put the employee’s wife on the payroll at the Sheriff’s Office and divert part of the man’s income to her.

Stinger has denied the allegations and vowed to remain in office.

"Some" Same Sex Marriage Claims Being Processed

    A press release from Acting Social Security Commissioner Carolyn Colvin:

“I am pleased to announce that Social Security is now processing some retirement spouse claims for same-sex couples and paying benefits where they are due.  The recent Supreme Court decision on Section 3 of the Defense of Marriage Act, made just over a month ago, helps to ensure that all Americans are treated fairly and equally, with the dignity and respect they deserve.  

We continue to work closely with the Department of Justice.  In the coming weeks and months, we will develop and implement additional policy and processing instructions.  We appreciate the public’s patience as we work through the legal issues to ensure that our policy is legally sound and clear. 

I encourage individuals who believe they may be eligible for Social Security benefits to apply now, to protect against the loss of any potential benefits. We will process claims as soon as additional instructions become finalized.”

    Update: The staff instructions are to continue to hold claims in cases where the state in which the claimant is residing does not recognize same sex marriages. Social Security had to wait over a month to issue this! Deliberation is fine but this issue shouldn't have come as a surprise to anyone.
   Further update: This press release and these instructions appear to have been timed to come out on Friday afternoon, traditionally the time that public relations gurus say to release information you wish you didn't have to release. Also, this was released just before an Obama press conference.