West Palm Beach Employees Suing Building Owner

     The bizarre West Palm Beach saga continues. From the local television station:

Almost two dozen employees of the West Palm Beach Social Security Administration’s office are suing the building’s owner.

CBS 12 News has obtained a copy of a lawsuit filed last year in which 22 employees and a security guard claim the building made them sick.

As CBS-12 News was first to report, staff at the West Palm Beach SSA branch are being dispatched to other SSA offices as the agency looks for a new building to house their operation.

The move stems from what the SSA alleges are problems with the building which is leased to the government by Carnegie Management and Development Corporation.

In the 118 page complaint filed last year, the staff members allege the building had substantial water leaks causing extensive water intrusion; that in 2009, mold, mildew and fungus were discovered inside the building; and that staffers suffered damages including mental pain and suffering, permanent injury and loss of earnings.

Carnegie Management and Development CEO Dr. Rustom Khouri says the claims are absolutely bogus.

Trustees Report Will Be Out By July 28

     The National Academy of Social Insurance has scheduled an event for July 28 at which Social Security's Chief Actuary, Stephen Goss, will discuss the 2014 Social Security Trustees Report.

Ready To Start Down This Path?

     The United Kingdom has started a big effort to force disabled people off benefits and get them back to work. The BBC tells us that things haven't been going so well. A recent report of the House of Commons says that changes need to be made "immediately." The contractor hired to get people back to work was "not achieving its purpose of getting people back to work" and has been fired. There won't be a replacement contractor until next year. An executive of one non-profit helping disabled people called the program "a shambolic and hopeless system that cruelly penalises the most vulnerable amongst us."

House Ways And Means Schedules Hearing For July 29

     A press release by the House Ways and Means Committee:

U.S. Congressman Sam Johnson (R-TX), Chairman of the House Committee on Ways and Means Subcommittee on Social Security announced today that the Subcommittee will hold an oversight hearing on what workers need to know about Social Security as they plan for their retirement.  The hearing will take place on Tuesday, July 29, 2014 in B-318 Rayburn House Office Building, beginning at 11:00 a.m. ... 

Future retirees face far more questions than answers, as according to last year’s Annual Report of the Social Security Board of Trustees, unless Congress acts, revenues will cover only 77 percent of scheduled benefits beginning in 2033.  Worse, revenues will cover only 80 percent of disability benefits beginning in 2016.  These findings will soon be updated in the 2014 Annual Report. 

Social Security is central to retirement security, yet Social Security’s complex benefit formula is often confusing to workers and their spouses. ...

The hearing will focus on the financial status of Social Security programs, the factors influencing the benefits paid, the status of Americans’ retirement readiness and how workers can be helped to better plan for their retirement. ... 

     I'm guessing that the Senate Finance hearing scheduled for tomorrow and now this Ways and Means Committee hearing scheduled for next week are signs that the Social Security Trustees report is due out very soon, like today or tomorrow. We'll see.

West Palm Beach Office Closes

     From WPEC:

If you need to get anything done at the West Palm Beach branch of the local Social Security Administration (SSA) office, you might have to go elsewhere for services.

It's the latest twist in an ongoing CBS 12 News investigation that began after we exposed long wait times at the West Palm Beach office.

An SSA spokesperson says the SSA is scaling back services at this branch because of recurring maintenance and HVAC issues with the building. ...

CBS-12 News first began investigating issues at the West Palm Beach SSA last week after folks told us they were being forced to wait two, three, and sometimes four hours in the hot sun and rain.

After U.S. Members of Congress who learned of our story demanded the SSA address the issue of long wait times, the office suddenly closed Thursday then reopened.

The SSA tells us they're looking to relocate the West Palm Beach office.

CBS-12 has learned that some staff members are suing the buildings' owner Carnegie Management & Development Corp and alleging the building is making them sick.

     OK, if it was ventilation problems that closed the office, why was it that the closure happened almost immediately after a TV station broadcast pictures of lines of people waiting outside the office? Also, why did it take the agency so long to tell the TV station why the office was closed?

Chart Book On Social Security Disability

     The Center on Budget and Policy Priorities has issued a Chart Book on Disability Insurance Benefits under the Social Security Act. I guess they're doing this now because of the Senate Finance Committee hearing scheduled for Thursday but the book will be outdated in the near future when the Social Security Trustees issue their report. Even though it will soon be a bit stale, the Chart Book still dispels many myths about Social Security disability.

When Will The Disability Insurance Trust Fund Run Out Of Money?

     We should get the Social Security Trustees report for 2014 in the near future. That will give us an updated projection on the Disability Insurance Trust Fund. That Fund is a matter of some concern since last year's Intermediate projection was that it would run out of money in 2016. Until the 2014 Trustees Report comes out, we can take a look at the newly released numbers on the Disability Trust Fund operations through the 2d quarter of this calendar year. The Trust Fund balance is down $10.4 billion in the first half of 2014. This contrasts with a deficit of $11.8 billion in the first half of 2013. While a declining balance is a bad thing, the reduction is 12% better than last year. The Trustees Intermediate projection made last year was that the Disability Trust Fund would go down at almost exactly the same rate in 2014 as in 2013 so thus far this year we're doing about 12% better than the projection made last year. That's pretty good. If the Disability Trust Fund continues to do 12% better than the Intermediate projection for the entire year of 2014 the difference would be about $4 billion. This is on top of the fact that the actual results in 2013 were $1.2 billion better than the 2013 Trustee's projection.

     To quote a Republican Senator from years gone by, "A billion here, a billion there and pretty soon you're talking about real money." While the projection made last year was that the Disability Insurance Trust Fund would run out of money in 2016, to be exact the projection was that the Disability Insurance Trust Fund would be $7.4 billion short of meeting its obligations for 2016 which works out to an exhaustion date in Autumn of 2016. A $1.2 billion improvement over the projection for last year and a 12% improvement in the first half of 2014 -- all you have to do is assume that things continue at the same pace and the Disability Trust Fund lasts into 2017. To state it another way, as of the end of June there was $80 left in the Disability Insurance Trust Fund and it was declining at the rate of about $28 billion a year. You do the math. If the Disability Insurance Trust fund continues to decline at the same rate we're currently seeing, it lasts into 2017 -- only a few months into 2017 but into 2017. If you think that the improvement we've seen over the last year and a half won't turn into a flat line, that is that we will continue to see small improvement, the Disability Trust Fund may limp into 2018.

     Social Security's actuaries never claim to know exactly what's going to happen over the next few years. That's why they give not one projection but three, an Intermediate projection (which is the only one that people pay attention to), a Low Cost or optimistic projection and a High Cost or pessimistic projection. When I say that the numbers we've seen since last year's Trustees report indicate that the Disability Trust Fund is likely to last at least into 2017, I'm talking about something that is well within last year's optimistic projection that the Disability Trust Fund will never run out of money. What I'm saying only differs slightly from last year's Intermediate projection and the difference is based upon what has actually happened since that projection was released.
     One might reasonably say that there is little real difference between a Disability Insurance Trust Fund exhaustion date of October 2016 versus an exhaustion date of April 2017 but politically there's a big difference. As of today, April 2017 looks to be a much stronger time for Democrats than October 2016. It would certainly be better if something could be done about the Disability Insurance Trust Fund before the last minute but does anyone really believe that will happen, especially if the political balance of power is likely to be different a few months later?

     In any case, it shouldn't be long before the Trustees report is released.

Problems At The Appeals Council

     An e-mail I recently received: 

Does anyone have an alternate AC [Social Security's Appeals Council] Fax number. I'm trying to fax a request for AC review and have used the standard fax number with no luck. I called the AC to verify that's the correct number and it is. They even gave me a backdoor fax number that isn't working. I'm just trying to find some alternatives. Thanks in advance!

     If you're sending anything to the Appeals Council, you pretty much have to fax it since you can't count on them opening and distributing their mail. The overtaxed fax machines at the Appeals Council are nothing new. And no, we can't file requests for Appeals Council review over the internet.