It's Not Just Puerto Rico; There's SSI Litigation In Guam

     I had posted earlier on the opinion of the First Circuit Court of Appeals that it is unconstitutional to deny Supplemental Security Income (SSI) benefits to an American citizens living in Puerto Rico even though that same person is eligible if living in one of the 50 states (or the Northern Marianas). We'll see what Social Security does about that ruling. My guess is that they think about it and then file a petition asking the Court to rehear the case en banc, that is by all members of the First Circuit Court of Appeals rather than by a three judge panel, as is normally the case.

     It's worth noting that Puerto Rico isn't the only U.S. territory with this sort of litigation. There's also a case pending in the U.S. District Court for Guam and there should be a decision in that one soon. The case in Guam presents the issue more directly than the Puerto Rico case since it concerns a claim for benefits as opposed to an overpayment allegedly created when a person who was getting SSI moved from New York to Puerto Rico.

     The Guam case may not matter since it isn't as far along as the Puerto Rico case and since Guam is so much smaller than Puerto Rico but that case also holds out the prospect of the Supreme Court refusing to hear the Puerto Rico case because there has been no disagreement between Courts of Appeals on the issue of SSI in territories. Disagreement between Courts of Appeals is the most important reason why the Supreme Court agrees to hear cases. I'm not sure exactly where it leaves Social Security if the Supreme Court refuses to hear the Puerto Rico case since it doesn't directly involve a claim for benefits.

     By the way, I've been surprised that Social Security didn't raise the defense of res judicata in the Puerto Rico case. Presumably, Social Security first declared the overpayment administratively before suing to get a judgment on the overpayment. If the agency did, it looks as if the claimant didn't appeal. Arguably, the claimant should have raised any defense to the overpayment at that time rather than later when he was sued. If the government sued first without giving the claimant an opportunity to fight the overpayment administratively, I think he was denied all the process he was due. Perhaps both parties were eager to get to the constitutional issue.

Twenty-Five Years Ago

     The bombing of a federal building in Oklahoma City that killed 168 people and injured 680 more happened at 9:02 CST on this date 25 years ago. Among those killed were 16 employees of the Social Security Administration. Those who committed the crime were anti-government zealots.

     Here is the list, prepared at the time, of the Social Security employees who lost their lives:

• Richard A. Allen, Claims Representative Had 22 years of service with SSA. A Vietnam veteran, he was born in Bailey's Crossroads, Va., and won a scholarship to Panhandle State University in Goodwell, Okla. He is survived by a daughter and his mother. 
• Saundra G. Avery, Development Clerk Worked nine years for SSA. She was a native of Danville, Ark., and was active in her church. A graduate of Central State University in Edmond, Okla., Sandy is survived by her parents and a brother. 
• Oleta C. Biddy, Service Representative Worked 20 years for SSA. Oleta was born in Rosebud, Ark., and was active as a Sunday school teacher and taught children's choir at her church. She is survived by her husband, a son, two grandchildren and two sisters. 
• Carol L. Bowers, Operations Supervisor Had 33 years of service at SSA, starting as a clerk-steno in December 1961. Carol was born in Chandler, Okla., and is survived by her husband and a son. 
• Sharon L. Chesnut, Claims Representative Worked for SSA for 21 years and was an active member of her church. She was born in Oklahoma City and is survived by a daughter, her mother, a sister, a stepson and a stepdaughter. 
• Katherine L Cregan, Service Representative Had 14 years of SSA service. Kathy was a native of West Memphis, Ark. A widow, Kathy is survived by three sons and five grandchildren.
• Margaret E. Goodson, Claims Representative Had almost 21 years of service with SSA. Margaret enjoyed motorcycling and camping trips with her husband. Other survivors include three sons, one daughter, three brothers and four grandchildren.
• Ethel L. Griffin, Service Representative Had 19 years of service with SSA, starting as a claims clerk. She was born in Illinois, where she attended Southwest Jr. College and the College of DuPage. Ethel is survived by her husband, two children and three grandchildren. 
• Ronald V. Harding, Service Representative Had more than 30 years of government service. He served two years in the Army and also worked for the Air Force before joining SSA in 1967. A respected musician, Ron is survived by two sons, two daughters, his parents, two brothers and a sister. 
• Raymond L. Johnson, Senior Community Service Volunteer National Indian Council on Aging worker, was stationed in the Oklahoma City DO for the past six months helping with Head Start programs for Seminole children. Born in Lawton, Okla., Raymond is survived by his wife, seven children, 21 grandchildren, five great-grandchildren and a brother. 
• Derwin W. Miller, Claims Representative Worked at SSA for five years. Derwin was an Arkansas native and a member of the Army Reserve. He was hired through the Outstanding Scholar Program. He is survived by a daughter, his parents, two brothers, a sister and two grandmothers. 
• Charlotte A. Thomas, Contact Representative Had 12 years of service with SSA. She was employed previously with the Departments of Defense and Health and Human Services. Charlotte is survived by a son. 
• Michael G. Thompson, Field Representative Worked for SSA for 19 years. He served in the Army for more than two years. A Vietnam veteran, he is survived by his wife, three sons, one daughter, his mother, two brothers and one sister. 
• Robert N. Walker, Jr., Claims Representative Had 15 years of service with SSA. He served in the Army for three years. Born in Jacksonville, Fla., Bob attended the University of Florida. He is survived by his wife, one son, three stepsons, one stepdaughter and 12 grandchildren. (See in-depth story.) 
• Julie M. Welch, Claims Representative Was hired under the Outstanding Scholar Program in August 1994. Julie was a recent graduate of Marquette University and had studied abroad at the University of Madrid. She is survived by her parents, a brother and a stepbrother. 
• William S. Williams, Operations Supervisor Had 20 years of service with SSA. An Oklahoma native, he had a degree in mathematics from Oklahoma State University. Steve is survived by his wife, three daughters, his father

Time To Raise The LSDB?

     David Weaver argues in The Hill that the Covid-19 pandemic is good reason to update Social Security’s Lump Sum Death Benefit (LSDB). Weaver thinks it should be increased from the absurdly low amount that is now paid, $255, to something that comes closer to the costs of a funeral, $2,500 and that it should be available not only to surviving spouses, as it mostly is now, but to any survivor handling the disposition of the earthly remains. I don’t think he goes far enough. I think the LSDB should be raised to $5,000 or even $10,000. There’s little point in the current LSDB. It probably costs more to administer than is paid out as benefits.

FSIP Rules Against ALJ Union

     The Federal Services Impasse Panel (FSIP) has authority to resolve disagreements in contract negotiations between federal employee unions and employing agencies. FSIP has recently issued a long decision and order resolving a contract dispute between the Social Security Administration and the union that represents its Administrative Law Judges (ALJs). It was a foregone conclusion that FSIP would go against the union and it did. The Trump Administration has packed FSIP with anti-union activists. 

     I am no expert on this contract but the most obvious and important sign of FSIP hostility towards the union concerns the amount of paid time that union officials can put in on union business each year. In the past, the union was provided up to 22,000 hours per year of which it used an average of 15,226 hours per year. FSIP ordered that the union receive only 1,200 hours per year. This is only a third of the 3,600 hours that Social Security had already offered the union! The appearance is that the union was punished for its audacity in not accepting what the agency offered.

     The American Federation of Government Employees (AFGE) recently sued to remove FSIP members for bias. This was added to already pending litigation over the fact that FSIP members have not been subject to Senate confirmation. Those suits will probably still be pending come next January. Should Joe Biden be elected President, his Administration would have the opportunity to settle the suits in a manner favorable to the employee unions. This is one of a number of recent actions by this Administration that may be quickly reversed if Trump is not re-elected.

When Do You Think Social Security Should Reopen?

Trump Administration Relents -- SSI Recipients Will Get Stimulus Payments Without Need To File "Tax Return"

     From a press release:

The Social Security Administration announced today that Supplemental Security Income (SSI) recipients will automatically receive their Economic Impact Payments directly to their bank accounts through direct deposit, Direct Express debit card, or by paper check, just as they would normally receive their SSI benefits. Treasury anticipates SSI recipients will receive these automatic payments no later than early May.  

“SSI recipients with no qualifying children do not need to take any action in order to receive their $1,200 economic impact payment. The payments will be automatic,” said Secretary Steven T. Mnuchin. “Recipients with qualifying children should use the ‘Non-Filers: Enter Payment Info Here’ web portal to enter basic information so they can receive their payments as quickly as possible.” ...

     This means that SSI recipients with children as well as those with pending disability claims who have not filed a tax return for 2018 or 2019 still need to file the "tax returns" but that's a much smaller problem.

An Economic Simulus Question

     Let me ask a question that probably won’t get answered here. Let’s say a disabled person has a Title II Social Security disability claim approved next month. He hasn’t already gotten an economic stimulus payment previously because he didn't file a tax return in the last two years. Will he get an stimulus payment once he gets on Social Security benefits? The question is whether the Treasury Department will just look once for Title II beneficiaries eligible to receive economic stimulus payments or whether it will continue to pay attention to those newly entitled. I'm guessing the Treasury won't pay attention to those newly entitled to Social Security benefits but we'll see. I'll bet that no one at Treasury has even though about this issue. It's going to affect thousands of disabled people each month and some non-disabled people filing for retirement and survivors benefits as well.

SSI Claimants Will Have A Lot Of Trouble Getting Economic Stimulus Payments

     To get a Covid-19 economic stimulus payment if you receive SSI benefits without also receiving Title II Social Security benefits you have to file an online  "tax return" unless you happened to have already filed a tax return in the last couple of years. To file the "tax return" you have to have an e-mail address. 

     I think that filing even though this process seems simple to most that it will defeat many SSI recipients. I decided to pull up all my firm's active SSI only cases to see how many have an e-mail address. I looked at the first 100 that came up in alphabetical order by the client's name. Of that 100, only 43 had an e-mail address.

     You might think that getting a G-mail account is simple and something that's necessary for modern life but most of my SSI clients haven't done it. Why? Many lack internet access. Many have mental limitations that make online transactions impossible for them. I'm not necessarily talking about cognitive limitations, although there's plenty of that in this population. Depression and anxiety make it hard to overcome even slight obstacles.

     I hope that many SSI claimants can overcome the hurdle that has been placed in their path, perhaps with help from others, but this hurdle shouldn't have been there to begin with. This online form is unnecessary. Social Security's databases already contain all the information needed to make these payments. No one has even tried to defend this cumbersome process as necessary.