A Message From The Acting Commissioner -- Delay In Reopening Plan

From: ^Commissioner Broadcast <Commissioner.Broadcast@ssa.gov>
Sent: Tuesday, July 20, 2021 1:51 PM
Subject: Moving Forward

A Message to All SSA Employees

Subject: Moving Forward

As I enter my second week as Acting Commissioner, I would like to share a bit about my goals, objectives, and for our path forward.

Right now, I am spending much of my time listening to and learning from agency experts.  I am meeting with labor unions this week.  I also want to hear from you, staff and managers alike.  I am relying on you to help identify what we can improve, recommend solutions, and bring about change that helps us serve the public better.  If you have an idea you would like to share with me, please send it to the  ^Employee Ideas mailbox.

My goals and objectives for Social Security are straightforward, and they will drive my decisions every day. 

• Everyone who is eligible for benefits under the programs we administer should receive them.  It is up to all of us to identify and resolve any root causes of inequity in accessing our programs.
• We must treat our employees fairly and equitably.  That means supporting you in the career paths that you choose and recognizing that your success is critical to the success of our organization. 

I believe that when we observe or encounter disparities, we should first identify and address systemic barriers that contribute to these disparities before we assume there are deficits in the individuals, families, and communities we serve, or in colleagues with whom we serve.   

As our country rebounds from a pandemic that has changed how we engage in our communities, the need for our services is tremendous, particularly for people facing barriers to our services. I know you are wondering about what we are planning for the government-wide transition back to the office and are particularly interested in telework.  You may see in the media that yesterday most agencies finalized their plans for reentry.  I take this effort seriously, and we have been given a little more time to finalize our plan so that I can ensure it is informed by our employees and stakeholders.  Therefore, I will share more information soon.  Let me assure you that we will overcome challenges together – thoughtfully and safely.

Thank you for your work every day to help the millions of people who depend on our services.

Kilolo Kijakazi
Acting Commissioner

Win For Law Firms

      From Bloomberg Law:

The Social Security Administration must change its procedures for paying attorneys’ fees in disability benefit disputes to allow payments to law firms and payments for work done by lawyers who later join the government, the First Circuit held.

The administration’s requirement that attorneys’ fees be paid to individual attorneys and not to law firms is arbitrary and frustrates the statutory mandate to provide a reasonable legal fee for representing Social Security disability claimants, the U.S. Court of Appeals for the First Circuit said in a July 16 opinion.

The fact that only individual attorneys can serve as representatives in the disability claims process doesn’t justify a limitation on payments that ignores the “practical reality” that law firms “ordinarily are the ultimate recipients of fees paid to salaried associates,” the court said.

The court reached a similar conclusion with respect to the administration’s bar on paying attorneys’ fees for work completed by lawyers who later leave private practice to take a government job. The administration said this rule was necessary to comply with government-wide ethics requirements prohibiting officials from being paid to represent claimants before the administration.

The First Circuit disagreed, calling this logic “inscrutable” and “facially irrational.” ...

     The decision is in the case of Marasco & Nesselbush v. Collins, et al. 

     Social Security would only have to apply this in the relatively small First Circuit (Maine, Massachusetts, New Hampshire, Puerto Rico and Rhode Island) but if they don't apply it more generally there will be litigation elsewhere. Also, my hope is that those involved with Social Security policy on this issue know that something should have done about this decades ago.

SSI Changes Under Consideration

      There has been some interest in Congress in adding SSI provisions to the Budget Reconciliation bill being considered in the Senate. I have no idea how serious this interest is. The Office of Chief Actuary at Social Security has prepared estimates of the costs of various provisions that might be considered. These provisions are actually part of a standalone SSI bill but no standalone SSI bill can pass in the Senate because of the filibuster. The only way any of this happens is by getting folded into the Budget Reconciliation bill. The combined effect of all the provisions being considered would be $510 billion over the next ten years. I'm pretty sure that's not going to happen, at least not this year. However, the main part of this -- $350 billion -- is for increasing benefit amounts generally. Increasing income exclusions would cost another $60 billion and eliminating the in kind support and maintenance rule would cost $31 billion. We'll see whether any of those end up in the bill. Some other provisions under consideration have much lower costs and are more likely to be added:

• Exclusion of retirement accounts from resources
• Repeal of the disposal of resources for less than fair market value rule
  
• Clarifying the treatment of certain state tax credits
• Elimination of dedicated accounts for some past-due benefits
• Elimination of installment payment rules
• Extension of period of exclusion for certain payments
• Elimination of holding out rule
  

Saul Pens Op Ed For WSJ

      There is an op ed by ousted Social Security Commissioner Andrew Saul in today's Wall Street Journal. Saul claims to have administered Social Security in a nonpartisan way. He believes he's a victim of employee unions who want to reopen contract negotiations.

     Saul is certainly correct that the labor unions are most responsible for his firing. However, they were only out to get him because of his highly partisan effort to destroy the unions. I don't know why he expected them to turn the other cheek or for a Democratic administration to ignore their complaints.

     The absurd thing about this op ed is that Saul's claim to have administered Social Security in a nonpartisan fashion is being published in what must be the most highly partisan Republican editorial page in the country. That's hardly a good way to prove your non-partisanship. Perhaps he offered it to other newspapers first but they weren't interested.

     The most important thing about this op ed may be the fact that it sounds as if Saul accepts that he's been fired. There's no talk about litigation. The litigation would have gone nowhere but it would still have been an annoyance.

COLA Will Be High This Year

      Already, we're getting projections of what the Cost Of Living Adjustment (COLA) will be for Social Security this year. It's clear it will be far higher than what we're used to. The Kiplinger Letter is predicting it will be 6.3%. I don't know that they should be but Social Security recipients always seem happy to see large COLAs even though their purchasing power hasn't really increased.

Larson Approves

      The Chairman of the House Social Security Subcommittee has expressed satisfaction with the provisions of the appropriations bill covering Social Security recently passed by the House of Representatives. I’m sure the going will be slower in the Senate, however.

How Much Does Social Security Offset The Motherhood Penalty?

      From How Much Does Social Security Offset The Motherhood Penalty? by Matthew S. Rutledge, Alice Zulkarnain, and Sara Ellen King:

Click on image to view full size

House Appropriations Bill Advances

      I posted yesterday about the draft report on the appropriations bill covering Social Security under consideration in the House Appropriations Committee. I emphasized that it was only a draft. Well, that draft advanced yesterday. It's now been reported out by the House Appropriations Committee. Of course, it still must be considered on the floor of the House and in the Senate but it's moving forward quite rapidly compared to what has happened in recent years. The current fiscal year ends on September 30, 2021.