Trustees Report Released

     From a press release:

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 (OASI and DI) Trust Funds are projected to become depleted in 2035, 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 2034, the same as last year’s estimate, with 76 percent of benefits payable at that time. The DI Trust Fund is estimated to become depleted in 2065, extended 13 years from last year’s estimate of 2052, with 92 percent of benefits still payable. ...

     Of course, the economic dislocations caused by the Covid-19 pandemic may significantly affect the trust funds in ways that cannot yet be projected. At least is the short run we know there will be decreased revenues.  We don't know how quickly and how completely the economy will rebound once this is over. We also don't know how this will affect claiming behavior. Will people apply earlier for benefits? I wouldn't know about retirement benefits but I've seen no jump in disability claims filed.

Charge Of Social Security Fraud For GOP Operative Already Facing Election Fraud Charges

     From the Daily Beast:

A Republican operative in North Carolina who’s facing criminal charges related to the alleged harvesting of election ballots was simultaneously ripping off the Social Security system, federal prosecutors say.

The Justice Department indicted Leslie McCrae Dowless this month on four federal criminal counts alleging that he knowingly concealed his income and employment status from the Social Security Administration even as he brought in tens of thousands of dollars from his political work in the Tarheel State.

That work has already landed Dowless in major legal jeopardy. He was arrested in early 2019 and charged with five criminal counts including conspiracy and obstruction. Later that year, Wake County prosecutors charged him with additional counts including conspiracy, obstruction, and perjury. He has denied wrongdoing on all counts. ...

The charges in North Carolina stem from Dowless’ alleged role in a widespread scheme that included the forgery of signatures, dates, and even votes themselves on North Carolina ballots, and a system of payments to Dowless’ employees to collect absentee ballots and ballot request forms. ...

How Did This Get Messed Up So Badly?

     From The Hill:

Two key Democrats are urging the Treasury Department to provide an "additional accommodation" for Social Security recipients who are unable to meet Wednesday's deadline to provide information to the IRS in order to quickly receive coronavirus rebates for their children.

"Given the importance of these payments at this critical time, we urge Treasury to consider all available options for paying these beneficiaries additional amounts owed this year," Reps. John Larson (D-Conn.) and Danny K. Davis (D-Ill.), senior Democrats on the House Ways and Means Committee, wrote in a letter Tuesday to Treasury Secretary Steven Mnuchin. ...

On Monday afternoon, the Treasury Department and IRS announced that if Social Security and railroad retirement beneficiaries want to get the payments for their children added to their automatic payments, they need to use an IRS web tool to provide the agency with their information by noon EDT on Wednesday. Recipients of SSI and veterans benefits have a little more time to submit their dependent information.

The recipients of federal benefits who don't promptly provide the IRS with information about their children will receive a payment in the near future of $1,200 and won't be able to receive the additional amounts for their children until they file their 2020 tax returns next year, the IRS said. The agency said that it would have to wait to issue the additional payments until a 2020 return is filed "by law."

Larson and Davis, who both are chairmen of Ways and Means subcommittees, said they appreciated that Treasury wants to quickly make payments to Social Security and railroad retirement recipients but expressed concerns about the fact that the IRS announced the deadline less than 48 hours before it occurs.  ...

     I hate to say it but I wish that the Social Security Administration had been given the task of making these payments. I'm pretty sure  SSA could be doing it better.

OMB/OPM Memo On Office Re-Opening

     The Office of Management and Budget (OMB) and Office of Personnel Management (OPM) have issued a joint memorandum to federal agencies providing guidelines on resuming more normal operations once the immediate threat posed by Covid-19 declines.

     One important point is that there's not going to be some national order to re-open all the agencies all over the country at the same time regardless of local conditions and regardless of state and local stay at home orders. The memo says that "State and regional assessments should be the starting point for discussions and decisions related to Federal agency operations, but additional factors may include: school and daycare closures, mass transit availability, parking availability, facility requirements, and missions." That doesn't require deference to state and local stay at home orders but it certainly suggests that will be the case.

     The memo also indicates that it may be necessary for agencies to apply different rules for employees 65 and older because they face heightened risks from Covid-19. 

     I wonder if Social Security should also apply different rules to claimants who are older or immunocompromised. Maybe they should be afforded telephone hearings even after in person hearings are resumed. I don't know what the odds are for a person who gets Covid-19 while on immunosuppressive medication because of a history of an organ transplant but they're probably very bad.

Dependents Won't Get Stimulus Payments Unless Their Parent Files "Tax Return" By Tomorrow!

     Earlier we had been told that those receiving dependent children's benefits from Social Security would receive economic stimulus payments, that the Treasury could get enough information from the Social Security Administration to pay them. Now, Treasury and Social Security are putting out press releases saying the kids won't be paid unless a parent files an online tax return and that this tax return must be filed by tomorrow!

     Who gave Treasury the right to impose an impossible deadline on millions of people? Why is this implementation such a mess? A lot of people won't get money they're due because of this incompetence.

CCD Letter On Office Closure Problems

     From a letter sent by the Consortium for Citizens with Disabilties (CCD), the major umbrella group of organizations involved in helping those with disabilities, to Social Security Commissioner Andrew Saul:

... Please publish field office phone numbers more prominently. Currently, the national 800 number is in two much more visible spots ... and the local number ... is more difficult to find on the field office locator tool. With wait times on the 800 number exceeding 90 minutes, allowing people to more easily contact their local offices is critical to improving customer service. ...

We have requested, and understand that the Office of Disability Operations is considering, creating a web page on ssa.gov indicating the daily operating status of all state agencies (DDSs). We assume that SSA is already aware of whether DDSs are completely closed, having all employees telework, or operating under a different arrangement; allowing claimants, representatives, advocates, and others to access this information would be helpful as well.With many DDSs completely closed, it is difficult for DDS staff to obtain evidence submitted by mail or fax, and to generate CDs with claimants’ records to inform claimants and their representatives. Unfortunately, SSA has not yet provided claimants or representatives with the ability to view their electronic files or upload evidence electronically. SSA should prioritize these IT modernizations so that the agency can more efficiently process disability claims at the initial and reconsideration levels....

We appreciate that the Office of Disability Operations created an email address for representatives to send documents to the Representative Call Center (RCC). However, it would be useful for SSA to have similar email addresses for representatives to send documents to the Program Service Centers (PSCs) since the RCC email address cannot be used for any other unit or module. The PSCs often need documentation, such as information about workers’ compensation benefits, to effectuate decisions. With field offices closed, it is more important than ever for PSCs to have adequate channels of communications.  ...

OHO issued a Chief Judge’s Bulletin (CJB) regarding procedures during the pandemic on April 3, 2020. However, the Bulletin has not been published with other CJBs at https://secure.ssa.gov/apps10/reference.nsf/instructiontypecode!openview&restricttocategory=CJB. Advocates were told in the same phone call that the April 3 CJB was both too general to be of use to claimants and representatives and too “sensitive” to be publicly released. This strains credulity.  ...

Finally, some representatives have been told that OHO could not send any of the barcodes used as cover sheets when faxing documents to claimants’ electronic files and which contain information used to upload documents electronically. If accurate, OHO must find a way for claimants and representatives to submit evidence, requests for on the record decisions and critical case designation, and other important documents to the claims file. If not, SSA should explain how representatives can request bar codes for cases where they’ve recently been appointed or the ALJ hearing request has just been made. ...

The Appeals Council receives many documents and requests for review by fax; they use actual fax machines rather than a fax-to-computer system, and this is now a problem because the machines are out of paper and their memories appear to be full. We are encouraging claimants and representatives to use SSA’s iAppeals system whenever possible and mail if necessary, but claimants who are unaware of these options may be sending their requests for review into a technological void. We urge you to have the Appeals Council devise a way to accept faxed documents, ideally using a desktop faxing system so that staff do not have to manually load paper into fax machines and scan the faxes they receive. ...

     Isn't it obvious that it's inappropriate for an agency to issue secret instructions to ALJs on how they should handle cases? I don't think there's something nefarious going on here; just the age-old bureaucratic penchant for pointless secretiveness.

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