Nov 29, 2016

Order Of Succession To Become Acting Commissioner Of Social Security

     Assuming that Acting Commissioner Colvin submits her resignation at the end of President Obama's term of office as expected, here is the order of succession to become Acting Commissioner of Social Security:
  • Deputy Commissioner for Operations Nancy Berryhill
  • Deputy Commissioner for Budget, Finance, Quality, and Management Michelle King
  • Deputy Commissioner for Systems Robert Kloop
  • Regional Commissioner, Atlanta Rodney Taylor
  • Regional Commissioner, Dallas Sheila Everett
     Note that this order of succession could be altered by President Obama before he leaves office or by Donald Trump after he takes office.

Nov 28, 2016

Action Needed Before Inauguration Day

     From Michael Hiltzik writing in the Los Angeles Times:
The Department of Education and the Social Security Administration jointly are doing yeoman’s work in identifying about 387,000 severely disabled and insolvent Americans saddled with federal student debt they can’t repay and informing them that the law allows their loans to be forgiven. But one agency still needs to act to make sure these people aren’t hit with a tax penalty when that happens: the Internal Revenue Service.
Thus far the IRS has been silent, even though Sen. Elizabeth Warren (D-Mass.) tried to poke it awake last month with a stern letter. Time may be getting short, because the election places the White House and both houses of Congress in the hands of a Republican Party that often has displayed disdain for the plight of people on disability.
 The affected persons have been judged to be totally and permanently disabled and to have annual income below the federal poverty level for a family of two, or less than about $16,000. About 80% of those in this category of disability had zero earnings in 2014, according to the Social Security Administration; of the 16% who report any earnings at all, the average is about $8,000. Their median net worth is $200 — and that might even be an overstatement. But their average student loan balance is $18,000. About half already are in default on their loans, the Education Department says. Under federal law, as disabled and insolvent borrowers they’re eligible to have their federal student loans zeroed out.
But few of the eligible borrowers have been taking advantage of the law. Some may have been dissuaded by the Education Department’s demand for extensive documentation of their medical condition. Some may not even have known about the law.
In April, the Education Department and Social Security Administration got proactive by matching up their databases to identify permanently disabled borrowers, whose medical records are kept by the latter agency. Eligible borrowers were to get a letter explaining their eligibility for loan forgiveness and a streamlined application form. ...
The problem is that under federal tax rules, the balance on forgiven debt can count as income — and the Education Department’s discharge of a loan triggers automatic notification to the IRS....
Even if the recipient owes no taxes — and many of them have virtually no taxable income — they may end up hearing from IRS collection agents or even facing an audit. ...
Warren tried to goad the IRS into issuing a no-action guideline for these borrowers — a blanket rule that tax on student loan forgiveness for the severely disabled should be presumed to be waived. That would avert unnecessary pain for the borrowers and the government agencies alike, she observed.
     By the way, on September 15, 2014, I called on Social Security and the Department of Education to do a database match and automatically cancel the federal student debt for as many of the disabled as possible. A database match program to do exactly what I called for was announced on April 12, 2016. I'd like to think I deserve credit for coming up with this idea but who knows. It should have been obvious to Social Security and the Department of Education without anyone from the outside suggesting it. I don't know why they took so long to do it.

Nov 24, 2016

Nov 23, 2016

SSA Wants To Get Program Uniformity Rules Finalized Before Change Of Administration

     I'm surprised that this is being done so late. Typically a new President suspends not just ongoing regulatory actions but new rules that have been finalized but which have not yet gone into effect. Since Social Security has to give at least 30 days notice before a final rule goes into effect, OMB has little time to act on this proposal.
     By the way, if you were going to rush something through, why wouldn't you rush through the proposal to prevent claimants who need a representative payee from buying guns?

Nov 22, 2016

Man Arrested After Punching Hole In Wall At Social Security Office

     From WPBN/WGTU in Michigan:
A 32-year-old Ludington man was arrested after allegedly punching a hole in the wall at the Social Security Office. ...
According to the Mason County Sheriff's Office, a man reportedly became upset and loud inside the office over what he felt was unfair treatment. The man was then asked to leave when deputies say he allegedly punched the wall with his fist, causing damage.

Nov 21, 2016

An Addition To Trump's Social Security Transition Team

     From the Washington Examiner:
An announcement from President-elect Trump's transition team hints that the incoming administration may be more open to changes in Social Security than the Republican suggested on the campaign trail, if personnel is any guide.
The transition team announced Monday that former Dallas mayor and former Texas Senate candidate Tom Leppert would be part of the "landing team" tasked with preparing the Trump administration to take over control of the Social Security Administration.
Leppert has endorsed raising the retirement age and partially privatizing Social Security, the kinds of changes that Trump has said would reduce the old-age program to shreds.
    The Washington Examiner is a very right wing publication which burns with true fire for the dream of weakening Social Security before killing it. I don't think there's even the smallest chance that Trump would actually attempt such a thing much less that they would succeed. I don't think that Democrats will be that lucky. However, I think we have to put Leppert's name down as a contender for the position of Commissioner of Social Security. I can't imagine why he would have even wanted to be on the Social Security transition team if he wasn't interested in the job of Commissioner.

Number Of Social Security Disability Recipients Declining