The Mexican Supreme Court has ruled that the country's Social Security system must recognize all same sex marriages.
Jan 31, 2014
Early-Outs Offered
The Social Security Administration is once again offering "early-outs" to its employees. Employees who are 50 and older and have 20 years of federal or military service or employees of any age with 30 years of federal or military service may retire and receive pensions. The point of the early-outs is to induce employees with higher salaries to retire. Unfortunately, those are the most experienced employees, the ones who can solve knotty problems. They're often the most productive employees.
Another NY Field Office To Close
Social Security plans to close its office in Ulster County, NY even though 39% of the county's population receives either Social Security or Supplemental Security Income (SSI) benefits. Local politicians are unhappy. These office closures are an inevitable consequence of the limited funding being given to the agency.
Jan 30, 2014
Service Contract Inventory
As required by law, the Social Security Administration has published its annual inventory of service contracts. Notable on the list is Lockheed Martin, which received over $100 million in contracts over the last year. Northrup Grumman received over $60 million in contracts. In glancing through the list I was a little surprised by the number and amount of contracts with Brookfield Relocation, apparently for employee relocation services. It's a small matter in the overall picture but I didn't think there would be that many Social Security employees being relocated at agency expense or that the costs, often over $100,000, would be that high.
Jan 29, 2014
Disability Trust Fund Doing Better Than Projected
The final 2013 numbers are in for Social Security's Disability Insurance Trust Fund. Here's a summary (in billions) for both the actual results and the projections that had been made for the year:
Receipts
Actual: $111.5
Intermediate Projection: $111.4
Low-Cost (optimistic) Projection: $112.5
Expenditures
Actual: $143.5
Intermediate Projection: $144.8
Low-Cost (optimistic) Projection: $142.8
Amount of Decline in Trust Fund Balance:
Actual: $32.3
Intermediate Projection: $33.5
Low-Cost (optimistic) Projection: $30.3
Trust Fund Balance at end of year
Actual: $90.4
Intermediate Projection: $89.2
Low-Cost (optimistic) Projection: $92.
The key question is when, if ever, the Disability Insurance Trust Fund runs out of money. You might think it obvious that the Disability Insurance Trust Fund will run out of money in 2016 but you'd be wrong. While the most recent Intermediate projection was that the Disability Insurance Trust Fund will run out of funds in 2016, it is projected to be only a narrow shortfall in 2016 -- $3.4 billion. Note that the actual results in 2013 were $1.2 billion better than anticipated by the Intermediate Projection. It's impossible to say for sure but the slightly better than expected results in 2013 suggests that the projections for 2014-2016 should be more optimistic as well. The methodology will certainly be more sophisticated but if you multiply $1.2 billion times four years you find that instead of running out of money in late 2016, the Disability Insurance Trust Fund squeaks into 2017. My expectation is that the Intermediate Projection in the next Trustee's report coming out this Spring will show an exhaustion date of 2017. Of course, unfavorable economic news or even a small uptick in benefit payments could change this.
The difference between 2016 and 2017 may be politically crucial. It's three years off but 2017 looks like a better year for Democrats than 2016.
Note that I indicated above that it is uncertain whether the Disability Insurance Trust Fund runs out of money at all. How can that be? Both the Intermediate and Low-Cost projections show that the declines in trust fund balance will be decreasing in coming years. They differ on how quickly the receipts and expenditures move towards each other. The most recent Low-Cost projection was that the decline in Trust Fund balance will be rapid enough to keep the Disability Insurance Trust Fund in the black as far as the eye can see and that the Trust Fund balance actually starts rising in 2020.The Low-Cost projection was a bit less accurate for 2013 than the Intermediate projection. There's no telling what the next Low-Cost projection will look like. In any case, projections become less reliable the further you extend them into the future. It's more likely than not that the Disability Insurance Trust Fund runs out of money at some point but it's not a certainty. If it does happen, it'll probably be after 2016.
By the way, Social Security's actuaries also made a High-Cost or pessimistic projection that the Disability Insurance Trust Fund would run out of money in 2015. I've omitted that from the summary above since it was so far off from what actually happened in 2013.
Jan 28, 2014
New Addresses For Service Of Process
Social Security has posted a new list of addresses for service of process. This is essential information if you're suing the agency.
Blast E-Mail From Acting Commissioner
I want to share with you the good news about our operating budget for fiscal
year (FY) 2014.
We
began FY 2014 without an appropriation, which was followed by continuing
resolutions. I am pleased to report that Congress has approved, and the
President has signed, legislation that provides funding for the remainder of the
fiscal year. With this funding, we will be able to expand our capacity to
complete more of our cost-effective continuing disability reviews (CDR), improve
our service to the American public, and enhance our vigorous fraud prevention
efforts.
Our
FY 2014 funding will allow us to bolster our program integrity activities that
reduce improper payments and help combat fraud, waste, and abuse. Protecting
taxpayer dollars has always been a priority, and the recent budget debates have
magnified its importance. While program integrity is a priority, service to the
public is, of course, job one. We will use our funding to increase overtime and
restore some staffing losses in critical frontline positions. This will help us
reduce backlogs and wait times in many of our workloads.
I
commend you for enduring the last few years of uncertainty and difficult
circumstances. Through it all, you continued to provide the compassionate
services that Americans depend on at the most critical times of their lives. It
is because of your steadfast commitment that we find ourselves in better
circumstances today. Our approved funding indicates that Members of Congress
recognize all that you do and that they can count on you to use this funding to
enforce greater program integrity and improve our world-class public service.
Thank
you for your hard work, dedication, and patience. You have always been, and
always will be, our most valuable asset. I know I can count on you to continue
your unwavering commitment to serve the American public.
Carolyn
W. Colvin
Acting Commissioner
Acting Commissioner
Partial Layoffs At Allsup
From the Belleville News-Democrat:
Belleville-based Allsup Inc. [which represents Social Security disability claimants, mostly at the behest of long term disability insurance companies] will reduce the number of hours some of its employees work as the Social Security Administration is witnessing fewerdisability claims reviews, a spokeswoman said.
In a statement released Monday, Rebecca Ray, the company's director of corporate public relations, said the move will not mean layoffs and all employees will continue to receive health insurance benefits and retirement. But some employees' work weeks will be cut to fewer than 40 hours.
The number of hours cut will be specific to an individual's job and work load and may not be the same across the board.
Ray said the hours reduction will go into effect next month. She could not comment on how many of the company's 700 employees will be affected.
Subscribe to:
Posts (Atom)