Disparity In Longevity Defeating Social Security Progressivity

     The Center for Retirement Research at Boston College has published a new report titled How Is The Mortality Gap Affecting Social Security Progressivity? The results are simple and straightforward. The wealthier you are, the longer, on average, you live and the more Social Security benefits you'll draw. The Social Security Act was designed to be modestly progressive, that is that poorer people are supposed to get a better deal from Social Security than wealthier people, but the increase in longevity among wealthier people is partially defeating this design.

Sad Trombones For Lucia

     From the Joint Explanatory Statement (page 67) of the Conference Committee on the bill to fund the Social Security Administration (and other agencies) for Fiscal Year 2019, which begins on October 1, 2018:

It is vital that Administrative Law Judges (ALJs) be independent, impartial, and selected based on their qualifications. The conferees expect SSA to maintain a high standard for the appointment of ALJs, including the requirement that ALJ s have demonstrated experience as a licensed attorney and pass an ALJ examination administered by the Office of Personnel Management.

     This would largely undo Trump's big win in Lucia v. SEC or at least render it mostly meaningless.

Ten Rulings Rescinded

     The Social Security Administration has announced that it is rescinding the following Social Security Rulings:

• 62–47
• 65–33c
• 66– 19c
• 67–54c
• 68–47c
• 71– 23c
• 72–14c
• 72–31c
• 82– 19c
• 86–10c

     This appears to be nothing more than ordinary housekeeping.

Ennis Confirmation Hearing Postponed

     The Senate Finance Committee hearing that had been scheduled for today on the nomination of Gail Ennis to become Inspector General at Social Security has been postponed. No new date is given. There could be another reason but Hurricane Florence strikes me as the likely cause. It’s not hitting Washington but it’s certainly snarling air traffic.

Hurricane Florence Already Closing Offices

     The Social Security Administration has already closed many of its offices in North and South Carolina because of the looming threat of Hurricane Florence. Probably more office closures further North are coming. Stay tuned.

Proposed Regs Sent To OMB

     Social Security has sent over to the Office of Management and Budget (OMB) a batch of proposed regulations on redeterminations when there is reason to believe that fraud or similar fault was involved in an individual’s claim for benefits. The agency needs OMB approval before these can be published in the Federal Registerfor public comment. There is no way now to know what is in the proposal.

Hearing On IG Nomination

     The Senate Finance Committee has scheduled a hearing for 2:00 on Thursday, September 13 on the nomination of Gail S. Ennis to become Social Security’s Inspector General. She was nominated almost 11 months ago.

SSI Income Deeming Problems

     From a recent study by Social Security’s Office of Inspector General:

From a sample of 100 recipients we reviewed who had manually deemed income, SSA [Social Security Administration] did not correctly compute SSI [Supplemental Security Income] payments for 46. This occurred because SSA did not correctly develop all income information when the deemors reported it or it became available from other sources if the deemors did not report it timely, did not consider the correct family members in the household, or made various other errors. Further, SSA’s policy did not require that a second employee review manually deemed computations. 

SSA improperly paid the 46 recipients $136,569. Specifically, SSA overpaid 12 recipients $33,375, underpaid 9 recipients $7,734, and both over- and underpaid 25 recipients $95,460. Accordingly, we project SSA improperly paid approximately $105 million in SSI payments to 35,200 SSI recipients with manually deemed income.