Larson Introduces Social Security 2100 Act

Representative Larson

      John Larson, the Chairman of the House Social Security Subcommittee, has introduced the Social Security 2100 Act. The bill would provide:

• Benefit bump for current and new beneficiaries – Provides an increase for all beneficiaries that is the equivalent to about 2% of the average benefit. The US faces a retirement crisis and a modest boost in benefits strengthens the one leg of the retirement system that is universal and the most reliable.
• Protection against inflation – Improves the annual cost-of-living adjustment (COLA) formula to better reflect the costs incurred by seniors through adopting a CPI-E formula. This provision will help seniors who spend a greater portion of their income on health care and other necessities. Improved inflation protection will especially help older retirees and widows who are more likely to rely on Social Security benefits as they age.
• Protects low-income workers – No one who paid into the system over a lifetime should retire into poverty. The new minimum benefit will be set at 25% above the poverty line and would be tied to wage levels to ensure that the minimum benefit does not fall behind.
• Improves benefits for widows and widowers in two income households
• Repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that currently penalize many public servants.
• Ends the 5-month waiting period to receive disability benefits.
• Provides caregiver credits to ensure that caregivers are not penalized in retirement for taking time out of the workforce to care for children or other dependents.
• Extends benefits for students through age 22.
• Increases access to benefits for children who live with grandparents or other relatives.
• Have millionaires and billionaires pay the same rate as everyone else – Presently, payroll taxes are not collected on wages over $142,800. This legislation would apply the payroll tax to wages above $400,000. This provision would only affect the top 0.4% of wage earners.
• Extends the depletion date (when a 20% cut to benefits would occur) to 2038 – Giving Congress more time to ensure long term solvency of the Trust Funds.
• Social Security Trust Fund Established – Social Security provides all-in-one retirement, survivor, and disability benefits funded through the dedicated FICA contribution paid by workers. There are technically two trust funds, Old-Age and Survivors (OASI) and Disability Insurance (DI), and that are usually referred to as the Social Security Trust Fund. This provision combines the OASI & DI trust funds into one Social Security Trust Fund, to ensure that all benefits will be paid.

     There is no path to passage of this bill in the current Congress. It's not clear this would pass even in the House of Representatives. Senate Republicans would use the filibuster to prevent debate on the bill. Because of opposition from Senators Manchin and Sinema, Democrats lack a majority to do anything about the filibuster. Anything having to do with Title II of the Social Security Act is off limits under the budget reconciliation process.

     One aspect of the bill not summarized above could have some real world consequences in the near term. Representative Larson's bill would do something about the fee cap that is slowly choking attorneys who represent Social Security claimants. The Acting Commissioner of Social Security can raise the fee cap by a simple notice in the Federal Register. No legislation is needed. I believe this bill is the first time that Larson has come out in support of raising the fee cap. Generally, Social Security Subcommittee Chairs have considerable influence at Social Security. However, Larson has seemed so disengaged from his Subcommittee's responsibilities, I don't know how much influence he has at the agency.

Woman Continues To Accept Husband's Social Security Benefits After Dismembering His Body

      From KLAS:

A woman facing a Social Security fraud charge told investigators she dismembered her deceased husband and threw his remains in the trash, prosecutors wrote in federal court documents obtained by the I-Team. ...

According to court documents, Shedleski deposited her deceased husband’s retirement benefits, which continued for more than four years after his death, into her account. ...

The administration became aware of the deposits in December 2019 after it received an anonymous allegation that Shedleski’s husband had disappeared, documents said. ...

In mid-2019, staff at the Las Vegas Social Security Office attempted to contact Shedleski’s husband, but there was no response. Shedleski later returned repeated messages, saying she and her husband lived together in Las Vegas.

In late-2019, investigators visited Shedleski’s apartment. Her husband was not there, and she reportedly told investigators he was traveling the country. Later in the interview, she told investigators her husband had died in August 2015 in the basement of their previous home in Pennsylvania.

She also told investigators she dismembered his body, packaged up the pieces and threw them into the trash, court documents said ...

COLA Deteminations, Including Max User Fee

      Social Security has posted all of it cost of living adjustments in the Federal Register.

     Among other things, the maximum user fee for attorneys representing claimants goes up to $104 next year. Of course, there is no increase in the maximum fee that attorneys can charge.

     I've noticed over the years that Republicans in Congress seem to think that federal domestic agencies are infinitely wasteful. They believe that operating budgets can be cut and cut without any effect upon the public. There seems to be a parallel attitude by Social Security management. Allowing the fees that attorneys can charge to represent claimants to keep going down by not adjusting for inflation can't possibly have any effect on the public. Attorneys are infinitely inefficient and infinitely wealthy. They can absorb anything.

Congresswoman Has Illusions

      From radio station KMA:

Iowa Congresswoman Cindy Axne says too many people are having issues with the Social Security Administration's hotline services. …

Axne says she's heard from hundreds of Iowans having difficulties with the hotline service.

"I've had Iowans tell me they've been on the phone for four hours," she said. "I had a gentleman tell me that, unfortunately, his wife passed away. He couldn't get the answers that he needed on what his social security would look like after his wife died. He ended up having to put in his income back to 1966 into the system. It took him so long to even figure out what would this look like for him." 

Axne says no additional funding is required for Social Security to provide adequate hotline staffing. 

"It doesn't cost us a dime," said Axne, "because they have a $5 billion annual budget, and 80,000-person staff. So, we just need to make sure they allocate to addressing folks during work hours." …

     Actually, if Social Security had 80,000 employees, it could answer its telephones. Unfortunately, even though its budget is a lot more than $5 billion, it only has about 60,000 employees, almost all of whom are working from home. If you want better telephone service, it’s going to take more employees who cost more money but, first, members of Congress like Ms. Axne need to get past some of their illusions. Bad service at Social Security isn’t the result of laziness or poor management. It’s because of inadequate operating budgets.

14 Months For Threatening Social Security Employee

      From a television station in Denver:

A 56-year-old Denver man, Harold Ortiz, was sentenced to 14 months in federal prison for threatening government workers after his Social Security benefits were terminated. ...

Ortiz, according to his arrest affidavit, phoned the facility about his benefits and first spoke to a claims specialist. That person told Ortiz he was no longer entitled to receive benefits and that the SSA had several notices in the mail announcing the decision.

“I’m going to stand outside your building and blow all of your [expletive] heads off,” Ortiz reportedly yelled at the claims specialist. “You’re dealing with a crazy person!” ...

Criticism For Social Security Form

      The Paperwork Reduction Act allows the public to comment on new or revised forms used by federal agencies. The Consortium for Citizens with Disabilities (CCD), the major umbrella group for non-profits advocating for the disabled, has submitted seven pages of comments to Social Security on a new revision of form SSA-454-BK, which is used when disability benefits recipients are subjected to continuing disability reviews. Here are a few excerpts:

SSA grossly underestimates the burden that responding to SSA-454-BK places on claimants and the public when it suggests the average burden is 60 minutes. [These estimates are required by the Paperwork Reduction Act.] Anecdotally, we believe that if you consider the complete time burden spent by the claimant and third parties to review SSA-454-BK, collect documentation, complete and transmit this form, it would take an average of 15-20 hours. This would include:

• times spent by the claimant receiving and reviewing the letter;
• time spent by assisters (neighbors, family, community assisters and sometimes SSA claims representatives) helping the claimant understand the SSA-454-BK form, and the steps required to respond (particularly in cases where SSA knows the claimant has intellectual, cognitive, behavioral or language deficits);
• time spent to collect information or documentation needed to complete the form;
• time spent by medical, behavioral health, and other providers furnishing documentation and or fielding specific questions necessary to complete the form;
• time spent securing assistance from advocates or lawyers;
• time spent to actually complete form;
• and the time required to transmit the SSA-454-BK to SSA. ...

Just completing the SSA-454-BK form is burdensome in and of itself. It is 15 pages long and requires multiple stamps to be mailed back to SSA. It requires beneficiaries to write short essays in response to questions, report all the medication they take and all of the medical treatment and providers they attend, and all of their daily activities. For adults and children with disabilities, this is usually a huge amount of information. ...

We recommend SSA take steps to reduce the burden on claimants by truncating and streamlining the SSA-454-BK. Specific consideration should be paid to the utility to each piece of information solicited as well as the burden it places on the claimant. Although detailed medical information is no doubt useful to evaluating ongoing disability claims, some of this information is not absolutely necessary to adjudicating the claim but may place a large burden on the responder. ...

     On the whole, I find Social Security's forms to be terribly drafted. They are usually poorly organized, too long, confusing and ask for more information than is needed. They seem to be created with little input from the Social Security employees who have to read the forms and with zero regard for the public which has to struggle with the forms. I am glad that CCD is giving some much-needed attention to this dark corner at Social Security.

OIG Report On VR

      From a recent report by Social Security's Office of Inspector General (footnote omitted0:

Our objective was to determine whether beneficiaries1 who received Vocational Rehabilitation (VR) services attribute those services to their work-related outcomes. ...

The Social Security Act authorizes SSA to pay State VR agencies for the services they provide beneficiaries who meet certain conditions. ... SSA does not manage State VR agencies. ...

More beneficiaries in our population had unsuccessful work outcomes after they received VR services than those who had successful outcomes – 62 percent did not have successful work outcomes while 38 percent did. Per our survey, the beneficiaries with unsuccessful work outcomes did not find VR services as helpful as those with successful work outcomes. While SSA reimburses VR agencies for services provided, SSA does not have authority over the quality of those services. Accordingly, while our survey indicates VR agencies could better serve some beneficiaries, SSA has limited ability to effect change in the quality of VR services its beneficiaries receive. ...

Of the 122 beneficiaries with successful outcomes who responded to whether they would have been able to return to work without the VR services they received, 79 (65 percent) replied no. Of the 123 beneficiaries who responded to whether they would have been able to work for as long as they had without VR services, 85 (69 percent) replied no. ...

     Note the implicit assumption that VR would do a better job if only it were managed by Social Security. LOL. 

     The entire thrust of the report seems to be that a 38% success rate is poor. Actually, that rate seems pretty good to me. Of course, VR turns away a lot of people. They only work with those who seem to have potential. You can call it cherry picking if you wish but I'd say they're just realistic. OIG seems to assume that there's some way of rehabilitating most Social Security disability recipients which is wrong. The people drawing those benefits have very serious health problems. Few of them get better. In fact, the majority keep getting worse over time.

OHO Stats

      The report shown below was obtained from Social Security by the National Organization of Social Security Claimants Representatives (NOSSCR) and published in its newsletter, which is not available online to non-members. It contains basic operating statistics for Social Security's Office of Hearings Operations (OHO). 

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