One Man Thinks That The Third Rail No Longer Exists

     John Tammy has written a piece for Forbes arguing that Social Security is no longer the Third Rail of American politics because people will be working until they're 70 and then relying upon their private savings. Social Security hardly matter to anyone not already on benefits or about to be on them. He just wants taxes lowered for money coming out of retirement accounts.

    Talk about being elite and out of touch! Most people don't wait until full retirement age now to start their Social Security benefits. There's no sign that's changing. Blue collar workers can rarely go on working until they're 70. Their health won't permit it. I think that Mr. Tammy hasn't yet experienced any of the ill effects of the aging process. It's coming for you too, buddy, whether you believe it or not. The odds are high that even highly motivated white collar workers don't make it until 70. Private savings? Does Mr. Tammy know anyone with an annual income below $100,000? Apart from their homes, if they're lucky enough to have them, most Americans near retirement age have only modest savings at best.  

    Right wing "thinkers" keep telling us that the key to all retirement problems in the U.S. is lowering the tax bills paid by wealthy Americans. It's what they're paid to write.

Report On OHO Operations

     A statistical report from Social Security on performance at its Office of Hearings Operations:

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There's Enough Damn Problems Without This Crap!

@OMalleySSA [a tweet from the Commissioner]

SSA 800 # was slammed on June 3. Over 463,000 calls -- 140k more calls than a few days earlier. Why? In part because of a bogus news story about a $600 payment increase. This is FALSE: No COLA until January 2025. Big thanks to all SSA staff who helped customers with this rumor.

A Modest Idea On Getting Help To Claimants

     I wrote about the reach, and perhaps overreach, of Social Security's controls on fees for representation  before the agency in 2021. I still think what I suggested at that time would be a good idea:

The Social Security Act says that fees for representing claimants must be approved by the agency. 42 U.S.C. §406(a)(1). The agency has interpreted this provision broadly. Its position is that charging a fee just to help a claimant file a claim or an appeal must be approved by the agency. As a result no one is providing these services for a fee apart from those offering contingent fee contracts for much broader representation. This leaves a large number of people to seek services that the Social Security Administration is unable to supply. Social Security should announce that that merely helping a claimant file a claim or an appeal is not the sort of representation for which fee approval is required. This would allow attorneys and H.&R. Block and whomever else to provide these services for modest fees. As an alternative, if the agency still wants to control these fees, the Social Security Act provides authority for the Commissioner to simply approve a maximum fee. ("The Commissioner of Social Security may, by rule and regulation, prescribe the maximum fees which may be charged for services performed in connection with any claim ...) The Commissioner could announce that the maximum fee to help file a claim is, let's say, $250 and the maximum fee for helping to file an appeal is $100. Those providing these services would not have to submit a fee petition. I will concede that this suggestion helps those with some money more than it helps the destitute but one would hope that even the poor could come up with the modest fees I'm talking about. It would also free up agency personnel to provide more help for poor claimants. If Social Security cannot itself provide these services to all who need them, why stand in the way of others providing these services for modest fees?

Interview With Commissioner

     The AARP has published an interview it conducted with Social Security Commissioner Martin O'Malley. As you would expect from one with a political background,  O'Malley touts his agency's accomplishments. I would certainly agree that the changes in how Social Security deals with overpayments are an accomplishments. However, the accomplishments in providing service to claimants have not been across the board. As a few workloads gets diminished, others increase. It's all you can do when you lack adequate budget resources.

    There's one thing about the interview that I can't figure out. At one point the interviewer mentions that O'Malley is the first Social Security Commissioner who has served in elective office. O'Malley corrects him saying "Second! I’ll show you the wax figure down the hall." Who was that other Social Security Commissioner who had previously served in elective office? Is the "wax figure" business just some odd figure of speech or some sort of reality?

SSI Resource Limits Are Brutal

     From National Public Radio:

The thing that got Karen Williams into trouble was that she tried to do the responsible thing and bought a life insurance policy that would pay for her funeral. ...

Williams, who is disabled and doesn’t work, relied upon a little-known federal assistance program — Supplemental Security Income, or SSI, run by the Social Security Administration. ...

Williams, 63, thought her life insurance wouldn’t be used until after she died. She didn’t understand it had a cash value and that she could turn it in and collect $1,900. That was far less than the $10,000 in funeral expenses she bought the policy to cover when she died.

For Williams, the cash value of her policy along with the $260 she had saved in her checking account pushed her over SSI’s $2,000 limit on how much a recipient is allowed in savings and other assets. ...

That $2,000 asset limit hasn’t changed since 1989. If it had kept up over 51 years with inflation, it would be $10,000 today.

“I would have definitely went by the rules,” Williams says. “I didn’t know I was breaking them.”

The penalty was stiff: Williams was kicked off SSI, her primary source of income, and told by Social Security to pay back two years of benefits totaling $20,385. ...

“You’re telling me I owe you $20,000?” Williams remembers thinking in the Social Security office. “I can’t even pay my bills. … Where am I going to live?” ...

Ultimately, she sought out the help of Gregory Burrell, president and CEO of the Terry Funeral Home, an institution in West Philadelphia that has served Black families for generations.

Burrell let Williams turn the policy over to the funeral home.

“We see that all the time,” Burrell, a former president of the National Funeral Directors and Morticians Association, the largest group of Black funeral directors, said of the confusion that caught Williams. “Unfortunately, people don’t know any better. And they’re stressing, and these insurance policies — they’re considered assets.” ...

 

800 Number Answering Time In FY 2024

 

From Social Security

NADE Newsletter

     The National Association of Disability Examiners (NADE) has posted its Spring 2024 Newsletter. NADE's members make initial and reconsideration determinations on Social Security disability claims.