Nov 5, 2015

Why $11 Billion In Overpayments Is Pretty Good

     From the Federal Eye column in the Washington Post:
[The Government Accountability Office] reported that, from 2005-2014, the Social Security Disability Insurance program overpaid $11 billion to beneficiaries who earned too much money to qualify for full benefits. An untrained observer might think this represented an unconscionable squandering of public funds.  ...
But on the first page of the report, GAO notes that SSA paid out approximately $143 billion in disability benefits in 2014 alone. SSA’s own actuarial estimates put the total ten-year outlay from 2005-2014 at $1.169 trillion, compared to $11 billion in overpayments. That’s less than 1 percent of total expenditures.
Furthermore, all $11 billion wasn’t lost to the government. SSA can claw back overpayments from disability beneficiaries in subsequent years. In fact, GAO reveals on page 9 of its report that SSA collected $7.8 billion in outstanding debt in the ten-year time frame. Only $1.4 billion in work-related overpayments were completely written off. Now we’re down to 0.12 percent of total expenditures. ...
If I were to tell you that the Social Security disability program was 99.88 percent accurate in issuing benefit amounts to recipients, you might think they were doing an outstanding job. But if I told you the program overpaid by $11 billion – while neglecting to mention how they clawed most of it back – you might dust off your pitchfork and join your local mob’s march to the nearest SSA satellite office. ...
The drumbeat of stories about stray billions lost here and spent there serves the side of our national debate that wants to reduce the size of government and privatize many of its functions. They’re given an artificial boost by reporting which flatters their prejudices. It’s hard to advocate for expanding social benefits amid inaccurate tales of waste. And this can have real consequences. ...
[L]ast week’s budget deal creates roving Cooperative Disability Investigations units, special Justice Department prosecutors and expanded reviews to look into suspected fraud. The changes result directly from the insistence of Congressional Republicans, aided by the media, that the disability program is rife with fraud.
But the budget deal’s reforms sound like something you would invest in to police a broken agency, not one with a 99.88 percent accuracy rate. Any private-sector company with a record as sterling as the disability program would be lauded as an industry model. But thanks to the massive amount of money they pump out on an annual basis, they can be demonized for minor slippages.
     And let's not forget to mention the active collusion of the GAO and Social Security's Office of Inspector General with Republican efforts to present overpayment information in a misleading way.

Nov 4, 2015

Colvin On Leadership

    Tom Fox of the Washington Post recently interviewed the Acting Commissioner of Social Security, Carolyn Colvin, on the subject of leadership.

Nov 3, 2015

I Can't Access OIG Website Due To Security Problem

     I received an e-mail notification that Social Security's Office of Inspector General (OIG) has issued an audit report on Social Security Administration Employees with Conduct Issues Who Received Monetary Award. The title sounds interesting. However, when I try to access the report, I get this message:
This Connection is Untrusted

You have asked Firefox to connect securely to oig.ssa.gov, but we can't confirm that your connection is secure.
Normally, when you try to connect securely, sites will present trusted identification to prove that you are going to the right place. However, this site's identity can't be verified.
What Should I Do?

If you usually connect to this site without problems, this error could mean that someone is trying to impersonate the site, and you shouldn't continue.

This site uses HTTP Strict Transport Security (HSTS) to specify that Firefox only connect to it securely. As a result, it is not possible to add an exception for this certificate.

oig.ssa.gov uses an invalid security certificate.

The certificate is not trusted because it is self-signed.

(Error code: sec_error_unknown_issuer)
     See if you can get in.

Congressional Hearing Tomorrow

     The Joint Economic Committee of Congress has scheduled a hearing for tomorrow afternoon (November 4) at 2:30 on Ensuring Success for the Social Security Disability Insurance Program and Its Beneficiaries. The scheduled witnesses are:
  • Patrick O’Carroll, Jr., Inspector General Social Security Administration
  • Mark Duggan, the Trione Director of the Stanford Institute for Economic Policy Research and the Wayne and Jodi Cooperman Professor of Economics Stanford University
  • Rebecca Vallas, Director of Policy for the Poverty to Prosperity Program Center for American Progress

EAJA Payments In Social Security Cases Increasing Rapidly

     Social Security has recently released information on payments it has made under the Equal Access of Justice Act (EAJA), which shifts the cost of attorney fees to the government in some cases where a claimant is the prevailing party in a civil action in the federal courts. Here are the numbers
2010 $19,743,189.12
2011 $21,668,646.47
2012 $24,666,171.13
2013 $27,720,951.87
2014 $31,637,462.36

Nov 2, 2015

29% Opting Out Of Video Hearings

     Social Security has released information on claimants who are opting out of video hearings. This year 29.25% are opting out, which is a lot less than I thought it would be. In my opinion, it's a lot less than it should be.

Nov 1, 2015

Take The Test

     Money Magazine has an online quiz so you can "Test Your Social Security IQ." I'm proud to say I answered all the questions correctly.

Oct 31, 2015

Retirement Inequality

     From a study by the Center for Effective Government:
Company-sponsored retirement assets of just 100 CEOs are equal to those of more than 40 percent of American families. 
  • The 100 largest CEO retirement funds are worth a combined $4.9 billion. That’s equal to the entire retirement account savings of 41 percent of American families (more than 50 million families and more than 116 million people).
  • On average, the CEOs’ nest eggs are worth more than $49.3 million, enough to generate a $277,686 monthly retirement check for the rest of their lives. 
  • David Novak of YUM Brands had the largest retirement nest egg in the Fortune 500 in 2014, with $234 million, while hundreds of thousands of his Taco Bell, Pizza Hut, and KFC employees have no company retirement assets whatsoever. ...
  • Fortune 500 CEOs saved $78 million on their 2014 tax bills by putting $197 million more in these tax-deferred accounts than they could have if they were subject to the same rules as other workers. These special accounts grow tax - free until the executives retire and begin to withdraw the funds. 
  • The Fortune 500 CEOs had more in their company-sponsored deferred compensation accounts than 53.8 percent of American families had in their deferred compensation accounts. ...