Statistical Report From OHO

     From the newsletter (not available online) of the National Organization of Social Security Claimants Representatives (NOSSCR):

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     Note all the overtime at OHO.

DI Trust Fund Makes Big Stride In One Year

     A Social Security press release (emphasis added):

The Social Security Board of Trustees today released its annual report on the long-term financial status of the Social Security Trust Funds. The combined asset reserves of the Old-Age and Survivors Insurance and Disability Insurance (OASDI) Trust Funds are projected to become depleted in 2034, the same as projected last year, with 79 percent of benefits payable at that time.

The OASI Trust Fund is projected to become depleted in late 2034, as compared to last year’s estimate of early 2035, with 77 percent of benefits payable at that time. The DI Trust Fund will become depleted in 2032, extended from last year’s estimate of 2028, with 96 percent of benefits still payable.

In the 2018 Annual Report to Congress, the Trustees announced:

• The asset reserves of the combined OASDI Trust Funds increased by $44 billion in 2017 to a total of $2.89 trillion.
• The total annual cost of the program is projected to exceed total annual income in 2018 for the first time since 1982, and remain higher throughout the 75-year projection period. As a result, asset reserves are expected to decline during 2018. Social Security’s cost has exceeded its non-interest income since 2010.
• The year when the combined trust fund reserves are projected to become depleted, if Congress does not act before then, is 2034 – the same as projected last year. At that time, there will be sufficient income coming in to pay 79 percent of scheduled benefits.

“The Trustees’ projected depletion date of the combined Social Security Trust Funds has not changed, and slightly more than three-fourths of benefits would still be payable after depletion,” said Nancy A. Berryhill, Acting Commissioner of Social Security. “But the fact remains that Congress can keep Social Security strong by taking action to ensure the future of the program.”

Other highlights of the Trustees Report include:

• Total income, including interest, to the combined OASDI Trust Funds amounted to $997 billion in 2017. ($874 billion from net payroll tax contributions, $38 billion from taxation of benefits, and $85 billion in interest)
• Total expenditures from the combined OASDI Trust Funds amounted to more than $952 billion in 2017.
• Social Security paid benefits of more than $941 billion in calendar year 2017. There were about 62 million beneficiaries at the end of the calendar year.
• The projected actuarial deficit over the 75-year long-range period is 2.84 percent of taxable payroll – slightly larger than the 2.83 percent projected in last year’s report.
• During 2017, an estimated 174 million people had earnings covered by Social Security and paid payroll taxes.
• The cost of $6.5 billion to administer the Social Security program in 2017 was a very low 0.7 percent of total expenditures.
• The combined Trust Fund asset reserves earned interest at an effective annual rate of 3.0 percent in 2017.

The Board of Trustees usually comprises six members. Four serve by virtue of their positions with the federal government: Steven T. Mnuchin, Secretary of the Treasury and Managing Trustee; Nancy A. Berryhill, Acting Commissioner of Social Security; Alex M. Azar II, Secretary of Health and Human Services; and R. Alexander Acosta, Secretary of Labor. The two public trustee positions are currently vacant.

View the 2018 Trustees Report at www.socialsecurity.gov/OACT/TR/2018/.

Trustees Report Coming

     The House Social Security Subcommittee has scheduled its annual hearing on the annual report of the Social Security trustees for June 7 at 11:00. Don't expect any surprises either in the report or in the reactions of the members of Congress.

Waiting And Waiting

     From the Semiannual Report by Social Security's Office of Inspector General (OIG):

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Many Allegations Received But OIG Gets Few Convictions

       From the Semiannual Report by Social Security's Office of Inspector General (OIG):

OIG Report On Overpayment Collection

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

SSA [Social Security Administration] attempts to fully and immediately recover an overpayment. If a full refund is not possible, SSA may withhold part or all of the individual’s monthly benefit, or create an installment plan when the individual is no longer receiving benefits. Under an installment plan, the individual agrees to refund the overpayment through monthly payments. SSA negotiates the repayment agreement and establishes the payment’s due date. 

We identified 12,269 individuals where the Recovery of Overpayments, Accounting and Reporting system indicated SSA was attempting to recover the overpayment through an installment agreement. However, for all these overpayments, the most recent installment- related action was before June 2016. At the time of our audit, these individuals owed SSA almost $88.3 million in overpaid benefits. ...

For the 12,269 debtors we reviewed, the overpayment record showed the last installment- related action occurred 11 months to 32 years before June 2016. ...

     A couple of points:

• Is it appropriate for Social Security to be trying to collect 32 year old debts? How many of these debts are similarly ancient? Why is there no statute of limitations?
• OIG seems unconcerned with the costs of collection. Is it cost effective to use expensive debt collection methods for small debts, especially at a time of staffing shortages? Reading OIG reports you might think Social Security is mainly a debt collection agency.

A Criminal Genius At Work

     Eric Conn's preposterous little escape to Central America has cost him dearly. His sentence went up from 12 years to 27.

     By the way, you might wonder what we in the Social Security bar thought about Conn back when he was practicing. The thing is that no one seemed to know the guy. When he got in trouble there were a lot of Social Security attorneys asking "Who's he?" The attorneys with larger practices mostly know or know of each other but not Conn. He was off on his own island. Everybody's reaction was "Why would you do that? Keep your nose clean and do your job and you can make a living and sleep at night." If you're trying to make a fortune practicing law, you've chosen the wrong career.

I See Dead People

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

In a 2009 audit, we determined SSA issued approximately $40 million in improper payments to more than 6,000 beneficiaries although it had received notification they were deceased. In a 2013 audit, we determined SSA had issued about $31 million in improper payments to 2,475 beneficiaries although it had received notification they were deceased. ...

Since our prior reviews, the number of beneficiaries who continued receiving payments after SSA recorded their death information on the Numident had declined. However, 1,281 beneficiaries, including 56 identified during our prior audits, continued receiving payments for months or years after SSA received notification they were deceased. SSA received death reports for these beneficiaries and recorded dates of death on the Numident. However, SSA did not record the death information on the beneficiaries’ payment records or terminate their benefit payments. System controls designed to prevent continued payments to deceased beneficiaries were not effective in these instances. 

Prior audit work has indicated a likelihood that some death entries on the Numident were erroneous, and beneficiaries were actually alive. However, we determined that 678 of the 1,281 beneficiaries had death certificate information or other Numident entries indicating their death information had been proven or verified. 

We estimate SSA issued the 678 beneficiaries approximately $20 million in improper payments. Further, we estimate SSA will issue approximately $6 million in additional improper payments over the next 12 months if these discrepancies are not corrected. ...

     Note that OIG seems a lot more concerned about payments made to dead people than the danger of mistakenly cutting off benefits to living people.