Big Problem With Remittances

     From a recent report by Social Security's Office of Inspector General (OIG):

SSA [Social Security Administration] receives remittances for a variety of reasons, but the majority of remittances are made to repay overpaid benefits. Remittances primarily consist of checks/money orders and credit card charges. SSA also receives a small number of cash payments. SSA’s Remittance and Accounting Unit (RAU) in the Mid -Atlantic Program Service Center (MATPSC) is primarily responsible for processing remittances. However, SSA’s field offices, teleservice centers, and Office of International Operations also process some remittances ... 

RAU processed over 1.7 million remittances, totaling over $892 million, in Fiscal Year (FY) 2015. This included over 475,000 remittances, totaling over $600 million, SSA field offices received and sent to RAU for final processing. ... 

While SSA processed remittances accurately , it did not process all remittances timely . As of April 22, 2016, RAU had 84,253 unprocessed checks (those RAU received without a remittance coupon), some almost 8-months-old. Without a remittance coupon, RAU cannot scan, process, or deposit the check until it identifies the associated remittance record. RAU also had 57,636 pieces of unopened mail, some pieces almost 2-months-old. ...

[A]s of April 22, 2016, RAU’s workload report identified 57,636 pieces of unopened mail, some dating back to March 9, 2016 and 84,253 unprocessed checks, some dating back to September 1, 2015 ... 

RAU had no unopened mail or unprocessed checks at the end of FY 2012. However, the backlog of unopened mail significantly increased from about 4,000 pieces in FY 2015 to over 57,000 pieces in FY 2016. Additionally, over the same period, the number of unprocessed checks increased from 56,000 to over 84,000 ...

According to SSA, the remittance backlog primarily occurred for two reasons. First, although the number of remittance checks RAU received in FYs 2013 through 2015 remained constant at about 1.5 million, annually, staff size decreased 26 percent from 31 employees in FY 2012 to 23 in FY 2016 ... 

Second, RAU received a large number of remittances without coupons, which delays the remittance process as RAU staff must perform additional research to identify the record associated with the remittance. For example, in FY 2013, RAU received about 317,000 remittances without coupons, and it received about 402,000 in FY 2016. ... 

Because of this backlog, SSA initiated unnecessary collection actions against some beneficiaries. When SSA does not process overpayment remittances for several months, the related debt appears past due in SSA’s debt management system. The past- due rating triggers the Agency to use its external collection tools to recover the debt. For those SSA beneficiaries who are not receiving benefits, SSA may attempt to collect the debt by reporting it to a credit bureau, administrative wage garnishment, or Federal payment offset. SSA uses the Department of the Treasury’s (Treasury) Treasury Offset Program (TOP) to offset a debt against an individual’s Federal income tax refund or withhold other Federal or State payments. Additionally, when debts are past due, SSA continues sending collection letters and making calls.

     The report goes on to give several examples of tax refunds seized, wages garnished and Social Security benefits reduced unnecessarily because remittances had not been timely processed.
     Social Security is taking corrective action on this problem.
     We might expect a Congressional hearing on this except for the fact that the biggest contributing factor to this mess was lack of adequate staffing caused by an inadequate budget passed by Congress.

Long Lines At Orlando Office Create Parking Problem

     From a TV station in Orlando:

If you've ever been to the Social Security office in Orlando, you may be very familiar with the long lines and sometimes difficult-to-find parking spots.

An Orlando woman wants to get results after her car was towed last week after she says she couldn't find a place to park.

The overflow has created a problem for businesses close to the office, as well.
Angel Garcia says that a few weeks ago, an elderly woman visiting Social Security decided to park in the Polo Apartment complex-- a move that is clearly prohibited if you're not a resident.

The result, he said: About $20,000 in damages.

 "She missed all of these trees. I don't know how but she came around from this direction and went right into the living room of that apartment there," said Garcia, a maintenance employee at the complex. ...

Marilyn Hernandez says the overflow of parking has become such a hindrance, the company has hired a towing company. ...

7-Eleven has a contract with a local tow company, as well. ...

We called and emailed the Social Security office.

Patti Patterson, regional communications director with the Social Security office, says that on average, about 700 people visit the center each day.

There are 169 parking spots including eight for the handicapped and public transportation is also available.

Trump Budget Proposal For Social Security

     The White House has released its "skinny" budget proposal for fiscal year 2018, which begins on October 1, 2017. The "skinny" reference is to the limited information in the proposal. If this is adopted, Social Security's operating budget would increase by 0.2%. (See page 50). Because of inflation, this would amount to a small decrease in the agency's budget. However, "program integrity" at Social Security would increase by 26.8%. By contrast, this budget proposal calls for major decreases in spending at most agencies, a 16.2% reduction at HHS, for instance.

     This budget proposal faces widespread criticism from Republican as well as Democratic legislators and won't be adopted as proposed. However, it is a sign that to some extent the message is getting across to the White House that these is no way to make even modest cuts in Social Security's operating budget without causing dramatic and very visible problems in the agency's service delivery.

Claimant Dies After Disability Benefits Ceased

     From WATE:

A mother is mourning the loss of her daughter.

Amy Schnelle, 31, died of an epileptic seizure on February 17. She died less than half a year after the government cut her benefits, including medication....

On disability for several years, Amy Schnelle was receiving powerful anti-seizure drugs and had been seizure free since 2015. Then the United States Social Security Administration threw her a curve ball in September 2016 when they informed her she was no longer sick. ...

She appealed the decision, but while her appeal was under consideration, Amy Schnelle’s benefits stopped. Nevertheless, three of the drug manufacturers provided her with sample drugs, but one did not. Sylvia Schnelle, Amy Schnelle’s mother, said without the full supply of prescription pills, her daughter relapsed in late October. ...

Writing to Congressman Jimmy Duncan, Amy Schnelle was able to convince the government to resume her benefits. That happened in January 2017, but in February 2017, from her apartment, she texted her mother she had a “bad” seizure and asked her to “please” come. Her mother rushed to Knoxville from her home in Dandridge.

“Amy was on her stomach and she had already died. She died from a seizure,” said Sylvia Schnelle through tears. ...

Tough Way To Make A Living

     The Buffalo Law Journal reports on how difficult it is to make a living representing Social Security disability claimants. Of course, it's a lot tougher being a disabled person filing a claim with Social Security.

I Knew There Was Something Good About Trumpcare!

     Matt Fuller noticed something interesting hidden in the Congressional Budget Office (CBO) projection of the effects of the Republican plan for replacing the Affordable Care Act. The CBO is projecting that Social Security expenditures over the time period 2017-2026 would decrease by $3 billion under the GOP plan. The explanation is that more people will die under the Republican plan, about 17,000 in 2018 rising to 29,000 in 2026 alone. People can't draw Social Security benefits if they're dead.

HIV Ruling Rescinded

     Social Security is rescinding Ruling 93-2p on the evaluation of HIV. This is being done because of the adoption of a new Listing.

Central Offices Closed

     A message from Social Security:

Social Security Administration (SSA) offices at headquarters and the Baltimore Metropolitan area will be closed on Tuesday, March 14, 2017 [by a large snowfall]. ITC and Falls Church offices should continue to monitor and follow OPM guidance.

     Somebody correct me if I'm wrong but I'll guess that ITC stands for the International Trade Center, a large government office building in Washington, and I'll also guess that's where the Commissioner's office is. I've never understood why it's better for the Commissioner's office to be there rather than in Woodlawn. There must be a fair amount of time wasted by staffers who have to travel into Washington for meetings at the Commissioner's office.