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WASHINGTON — For the first time in more than three decades, Social Security recipients will not get any increase in their benefits next year, federal forecasts show.

The absence of a cost-of-living adjustment, calculated under a formula set by law, will be a shock to older Americans already hit by plummeting home values, investment losses and rising health costs. More than 50 million people receive Social Security.

“Most seniors have never been through a year in which there was no Social Security COLA,” said David M. Certner, legislative counsel at AARP, the lobby for older Americans. Beneficiaries have received automatic cost-of-living adjustments every year since 1975. The increase this year was 5.8 percent.
 

[An] underpayment is any monthly benefit amount due an entitled beneficiary that has not been paid. We found that SSA needed to improve its controls and procedures to ensure underpayments were appropriately paid on behalf of terminated beneficiaries. Based on a random sample of 300 underpayments, we determined that SSA needed to take corrective actions to (1) pay $177,184 in underpayments payable to 180 eligible beneficiaries and individuals and (2) remove $44,214 in erroneous underpayments from the MBR [Master Beneficiary Record] for 49 terminated beneficiaries. As a result, we estimate there are $358.7 million in underpayments payable to 391,844 eligible beneficiaries and individuals, and $86.7 million in erroneous underpayments on the MBR for 109,712 terminated beneficiaries

From the National Council Digest, put out by Council 220 of the American Federation of Government Employees (AFGE), which represents a good part of Social Security's workforce:

A poll recently conducted by Council 220 shows that nearly half of the respondents are either "dissatisfied" or "extremely dissatisfied" with their work experience at Social Security. An overwhelming number (79%) also believe that most employees share those same feelings. When asked "do you feel that you have enough time to devote to a quality work product?" a staggering 82 per cent answered "no."
A large number (59%) believe quantity of work is considered more important than quality.

Congressman Brian Higgins (NY-27) today met with senior Social Security Administration officials with direct oversight over Social Security hearing office operations to discuss the SSA's plans to address the egregious backlog of Social Security cases in the Buffalo Hearing Office region. ...

"The Social Security Administration has taken the first step, but has only scratched the surface of the egregious backlog problem in Western New York," Said Higgins. "It is crucial that we now continue to build on this start and in order to eliminate the backlogs that exist now and ensure that Western New Yorkers never have to deal with backlogs like this in the future," Higgins said. ...

"The SSA knows that it can and must do better for Western New Yorkers whose lives have been put on hold while they await a decision on their Social Security cases," Higgins said. "This is not a matter we will let go unchecked simply because the SSA has made a step towards solving the problem."

The horror stories roll off their tongues like a litany: claimants who die while they wait, families falling apart, bankruptcies, homelessness, even suicides. DisabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. attorneys and advocates say these are the fates of an increasing number of people who become ill or injured and apply for federal Social Security Disability benefitsYou can get disability benefits if you: are under full retirement age, have enough Social Security credits and, have a severe medical impairment (physical or mental) that’s expected to prevent you from doing "substantial" work for a year or more, or have a condition that is expected to result in death.. From first application, people who cannot work because of illness or disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. wait an average of three years for benefits. Many wait longer, and a large percentage of people simply give up. ...A few cases are approved quickly - when people are elderly or clearly dying, said Cynthia Strom, a disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. attorney in east Asheville. "But for most people, it's a waiting game," she said. "I've had clients commit suicide while they wait because they just can't do it anymore." ...Curtis Venable, an attorney with Pisgah Legal Services, said he has clients who have waited more than four years for approval. Getting approval in less than 2 years is rare. "I'll bet one-third of the people living in homeless shelters are people waiting for disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests.," he said. Bruce Peterson, district director for U.S. Rep. Heath Shuler, said the office gets hundreds of calls a month asking for help with disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests..

Below are the most recent statistics on the total number of employees at the Social Security Administration and some historical numbers for comparison:

  • December 2007 61,822
  • September 2007 62,407
  • June 2007 62,530
  • March 2007 61,867
  • December 2006 63,410
  • September 2006 63,647
  • September 2005 66,147
  • September 2004 65,258
  • September 2003 64,903
  • September 2002 64,648
  • September 2001 65,377
  • September 2000 64,521
  • September 1999 63,957
  • September 1998 65,629

Note the 2.5% decline in the number of employees between the end of 2006 and the end of 2007, despite the fact that the number of Social Security claims filed increased rapidly.

Dana Smith waited three years for a judge to agree she qualifies for Social Security disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. payments. Had she lived in a state other than Indiana, the wait could have been much shorter. That's because Indiana has one of the worst records in the country for processing the disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. claims of people unable to work because of medical or psychiatric reasons.

For a determination at the Indianapolis offices for Social Security disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. or Supplemental Security IncomeA Federal supplemental income program funded by general tax revenues (not Social Security taxes). It helps aged, blind, and disabled people, who have little or no income by providing monthly cash payments to meet basic needs for food, clothing, and shelter., the average applicant waits 749 days from the time of filing until a hearing before an administrative judge, the step necessary if claims are denied -- and most are. Most Americans wait 505 days, the Social Security Administration estimates.

Nationwide, the Social Security Administration has 10 percent fewer judges to hear case appeals than it did a decade ago, while the number of cases has increased by more than 176 percent, said Carmen Moreno, regional communications director for the Social Security Administration's Chicago region, which includes Indiana.

... [I]n some cases, the actions of the financial institutions in carrying out court [garnishment] orders are of questionable legality, according to a new report by the Social Security Administration's Office of the Inspector General.

The inspector general found that some financial institutions are apparently violating federal law by garnishing accounts that receive electronic deposits of old age, survivors and disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. insurance, and/or supplemental security incomeA Federal supplemental income program funded by general tax revenues (not Social Security taxes). It helps aged, blind, and disabled people, who have little or no income by providing monthly cash payments to meet basic needs for food, clothing, and shelter. payments. These funds are supposed to be protected from creditors except under certain conditions. ...

During a 12-month period beginning September 2006, the 12 largest banks took $1 million from accounts that held only government benefits. An additional $29 million was taken from accounts that held government benefits money mixed with cash from other sources, according to the report. The inspector general also found in some cases that banks were charging legal processing fees, overdraft charges or insufficient-funds charges as the result of a garnishment.

Although the sample size in this investigation was relatively small, the inspector general's report concluded that if all financial institutions followed the pattern of those investigated, as much as $177.7 million in garnishments could be attributable to beneficiaries receiving direct deposit of Social Security benefits.

And here is a link to the Inspector General report.

A 57-year-old man has waited three years and counting for a Social Security disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. determination because of his failing heart, vascular disease, cirrhosis of the liver and hepatitis ...

Social Security Administration Commissioner Michael Astrue doesn't gloss over the problem with his federal agency. He has told Congress that the jumbo-sized backlog stems from an increasing baby boomer caseload, years of underfunding and an increase in Social Security's responsibilities coupled with a 5 percent staff reduction from 2003 to 2007.

Astrue, who took the top job in February 2007, said that while "everything is focused on moving in the right direction ... there is no one magic bullet" to cut through the backlog, stemming from years of the "system being out of whack."

"It's hard if you are on the waiting end," Astrue said. "We are making progress ... (But) it is a lot of detail, and it is hundreds of things we have to focus on."

Astrue is sending 13 new disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. judges to Ohio this year, two of them to Columbus.

He wants to cut the 761,000-case national backlog by about 60,000 a year. "The whole thing is completely broken" and that the disability benefitsYou can get disability benefits if you: are under full retirement age, have enough Social Security credits and, have a severe medical impairment (physical or mental) that’s expected to prevent you from doing "substantial" work for a year or more, or have a condition that is expected to result in death. process is "so woefully out of date that it has to be totally overhauled and streamlined," Astrue said.

Social Security's Office of Policy has issued its monthly statistical package for Supplemental Security Income (SSI). The number of people on SSIA Federal supplemental income program funded by general tax revenues (not Social Security taxes). It helps aged, blind, and disabled people, who have little or no income by providing monthly cash payments to meet basic needs for food, clothing, and shelter. has gone up by 139,062 or 2% in the last year. All of this increase is in disabilityAn impairment that qualifies as a disability under Social Security Administration (SSA) guidelines must be quite serious. The impairment must render the applicant unable to perform any substantial gainful activity — that is, the applicant must not be able to earn more than a minimum amount of money, determined each year by the SSA. The impairment must completely disable the applicant from working. It must be expected to last for a year, have already lasted a year or be expected to cause the applicant's death. But this is not the end of the qualifying tests. recipients. The number of people drawing SSIA Federal supplemental income program funded by general tax revenues (not Social Security taxes). It helps aged, blind, and disabled people, who have little or no income by providing monthly cash payments to meet basic needs for food, clothing, and shelter. on account of age decreased slightly over the last year.

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