Disguised Unemployment?

The Courier-Post, a New Jersey newspaper, is running an article about the increased number of people who have filed claims for Social Security disability benefits after being laid off their jobs. There are many people who managed to barely hang onto their jobs when the economy was booming. Although their work performance was substandard and they missed many days due to illness, their employers did not fire them -- until economic times got tough. There are concerns that Social Security disability benefits not disguise the rate of unemployment by putting such individuals on benefits but the reality on the ground is much more complicated as this article demonstrates.

One Year Sentence For Threatening ALJ

From the Associated Press:

A 30-year-old Shreveport woman has been sentenced to a year in prison for a mailed threat to a judge.

The U.S. Attorney's Office in Shreveport says the sentence was handed down Thursday to Latonya Kemp by federal Judge Donald Walter.

Prosecutors said Kemp mailed a handwritten letter to an administrative law judge in the Social Security Administration. The judge had upheld the denial of Social Security disability benefits for Kemp, who threatened to injure his property and reputation, according to a news release from U.S. Attorney Stephanie Finley.

"Another Failed Stimulus Project"

From a press release:

U.S. Congressman Sam Johnson (R-TX), Chairman of the House Committee on Ways and Means Subcommittee on Social Security, and U.S. Congressman Jeff Denham (R-CA), Chairman of the House Committee on Transportation and Infrastructure Subcommittee on Economic Development, Public Buildings, and Emergency Management, announced today that the Subcommittees will hold a joint oversight hearing on managing costs and mitigating delays in the building of the Social Security Administration’s (SSA’s) new National Computer Center (NCC). The hearing will take place on Friday, February 11, 2011 in 1100 Longworth House Office Building, beginning at 10:00 a.m. ...

In February 2009, the American Recovery and Reinvestment Act of 2009 provided $500 million for the SSA to replace the NCC, the single largest building project funded under the Act. The General Services Administration (GSA) and the SSA are managing the development and construction of the new project, including the development of requirements for the new center and site selection. The project remains on budget but the projected date for complete commissioning of the new facility has been delayed one year to January 2015.

In announcing the hearing, Chairman Sam Johnson (R-TX) stated, “Information technology is the most important element in driving Social Security to deliver 21^st century customer service. Taxpayers are investing in a $500 million upgrade and they will not tolerate cost overruns or further delays in another failed stimulus project. Neither will I.”

“We need to hold the General Services Administration accountable for this half billion dollar project,” Chairman Jeff Denham (R-CA) stated. “The agency needs to use the resources they were provided, stay on budget and get this project back on schedule.”

What is fascinating here is that it is Republican policy that any remaining stimulus funds should be canceled and should revert to the Treasury, which would stop this project in its tracks. So which is it? Do you want to stop this "failed stimulus project" or keep it on track and on budget?

New Union Agreement

The union that represents most Social Security employees reports that it has reached agreement with Social Security on a new contract. No details have been released but as described by the union the new agreement is almost identical to the old agreement. The big issue may have been affording lactating women employees the opportunity to use breast pumps on the job! It makes you wonder why it took so long to negotiate the contract.

Update: This is actually not a full contract -- just some items in the contract. If they have to negotiate hard on such uncontroversial matters as these, it is hard to imagine ever completing negotiation on a full contract.

Robert Ball Building Dedicated

A press release from Friday:

Michael J. Astrue, Commissioner of Social Security, today dedicated the Robert M. Ball Federal Building at the agency’s Woodlawn headquarters in Baltimore, Maryland. Mr. Ball’s son, Jonathan Ball, and other members of the Ball family joined Commissioner Astrue in dedicating the building.

“This is a very exciting day for our family,” said Jonathan Ball. “My father truly dedicated his life to the advancement of Social Security. It is a great satisfaction to have this building, where vital Social Security work takes place, be dedicated to him.”

Robert Ball began his career working in a local Social Security field office in 1939. He held a number of key executive positions and, in 1962, President John F. Kennedy appointed Mr. Ball Commissioner of Social Security. He continued to serve as Commissioner under Presidents Lyndon B. Johnson and Richard M. Nixon until his retirement in 1973. He is Social Security’s longest serving Commissioner.

Mr. Ball is widely considered the “Father of Medicare” and played a significant role in the establishment of Social Security disability benefits in the 1950s. After his retirement, he continued to write and speak about Social Security until his death in 2008.

To learn more about Mr. Ball’s career at Social Security, go to www.socialsecurity.gov/history/bobball.html.

Biggs Taking A Bizarre Turn

Andrew Biggs, the former Social Security Deputy Commissioner during the Bush Administration who may be the biggest promoter of Social Security privatization, now thinks that privatizing Social Security just might be unconstitutional.

Pay Attention To What The House Republicans Are Trying To Do

The Republican controlled House Budget Committee announced yesterday that it wants dramatic cut in appropriations for the remainder of the fiscal year. These cuts would amount to a 12.7% reduction in appropriations for the Labor/HHS/Education portion of the budget. This is the portion that includes Social Security. The House Budget Committee has not yet made any allocations within the Labor/HHS/Education appropriation so one cannot say yet what this would amount to for the Social Security Administration. The House Appropriations Committee would certainly have a big say in this as well but more importantly the Senate and the White House would have a say.

If the Social Security Administration were subjected to a 12.7% reduction -- and I do not think that is going to happen -- I would expect large scale reductions in force at Social Security.

Why Not 95?

George Will, a prominent columnist, thinks that the best way to ensure the nation's financial future is to push the age for eligibility for Social Security retirement benefits to 74 and to force the elderly to buy their own insurance instead of relying upon Medicare. In fact, he is not so sure that elderly people should even be receiving much in the way of medical care anyway. Interesting talk from a man of his age.