Social Security strained by early retirements

"Social Security to pay out more in benefits than it collects in taxes the next two years, the first time that's happened since the 1980s." For complete article, click link.

Backlog of disability claims makes millions wait

From the Des Moines Register:

Todd Lindberg has lived for a year and a half in a storage garage in northwest Des Moines. He sleeps on a well-worn couch in a dark corner of the building, amid construction equipment, tools and snowmobiles.

With most of one foot amputated and part of the other missing, he qualifies for federal disability benefits that would pay for an apartment and groceries.

But getting those benefits is not easy.

A massive backlog of unresolved disability claims at the Social Security Administration has kept Lindberg and millions of others waiting years for benefits they earned while in the work force. The delays have led to splintered families, foreclosed homes and suicides.

Last year, a 49-year-old Missouri truck driver died in the lobby of a Social Security office while waiting to be called into the office for a hearing on his three-year-old claim for benefits. During the past year, the number of people waiting to have their claims processed has increased more than 30 percent, from 556,000 to more than 736,000. The head of the Social Security Administration, Michael Astrue, has acknowledged that the situation might soon get worse. The agency is "moving backwards" in its efforts to keep pace with a recession-driven influx of new claims, he said. ...

Social Security's West Des Moines hearing office handles most of the cases from Iowa. Individual judges there have tried to catch up on their workload by hearing 70 to 80 cases each month, as opposed to their usual 50 to 60 cases.

"That's too many cases," said Denzel Busick, the office's chief administrative law judge. "We can do that for a while," he said, "but you wouldn't want us doing that on a sustained basis because, as a judge, you start to think, 'What am I forgetting here? What am I overlooking?' ...

There is almost universal agreement about the cause of the disability backlog: Funding and staffing levels at the Social Security Administration have gradually dropped to their lowest levels since 1972, while the number of Americans applying for disability benefits has increased. Early this year, the number of unresolved cases was declining, but the economic crisis is making things worse: As the job market tightens, people with limited abilities have fewer job opportunities.



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Posted By Social Security News to Social Security News at 8/30/2009 10:22:00 AM

Social Security Struggles With Disability Backlog

NPR article on backlog. Listen to the broadcast.

Happy 4th of July!

Many Left Uncounted in Nation's Official Jobless Rate

This story was originally aired on PBS on July 2, 2009 on the Jim Lehrer News Hour.
This story covers workers that are unemployed, underemployed, and discouraged workers. It spells out how the unemployment rate, this month reported to be 9.5% (14.7 million people), could be considered higher than 15%, and as high as 20%.

According to the report, in the last year 2.5 million new applications for social security disability have been filed.

The video of the show can be viewed by following this link

Social Security and Income Tax

I am often asked "Are my social security benefits taxable?" About the best answer I can give is "Maybe." There is an excellent article discussing the various aspects of taxes and Social Security benefits on NOSSCR'S website.

SSI benefits are not subject to income tax.

I direct your attention to the end of the article if the government is now telling you that you owe.

The best resource is always a tax professional. Please note: I am not a tax professional.

Processing Time for Omaha Hearing Office - 631 days

At the 3rd level of appeal in a Social Security Disability case, there is an ALJ Hearing. This article concerns the processing time after the hearing is requested. In other words, the first two denials don't count.

In Omaha, the time it takes to process a case is 631 days. There are 149 hearing offices like Omaha around the country. We currently rank 127th. These numbers reflect information from SSA through 02/27/2009 and obtained by NOSSCR (National Organization of Social Security
Claimants' Representatives).

We have five (5) ALJ's and and an excellent hard-working staff that supports them, but the volume of work obviously is more than can be expeditiously handled. Let's hope that with the increased money SSA received from the stimulus package, more staff will be added.

$250 One-Time Stimulus Payment - MORE INFO

In a previous post I listed information about the Social Security's Economic Recovery One-Time Payments to those that receive disability benefits.

If you want more information, the Social Security Administration also provides answers to 26 Frequently Asked Questions at the following link FAQ.

Exciting Times Ahead for Disability Claims

This morning I had the good fortune to attend a seminar concerning Electronic Files and Electronic Records Express. Susan Brown of the Social Security Administration spoke. I believe she is the project manager for the electronic methods we are now seeing in the Social Security Disability process.

Pending cases are now comprised of 92% electronic cases. This eliminates the problems SSA had with the paper files which were primarily "losing the file," transporting them, and damage to a paper file. Where a file was stored and retrieving it was the main problem.

One can now submit records via fax or computer if the case is electronic. The exhibit file is available on CD.

In the future, for representatives, is the ability to see the file online! These are exciting times as it will permit one to access the file and, among other things, see what is not in it.


FIT Decisions was another topic. My prediction is that private vendors will soon enter this market as SSA does not have the resources or manpower to support the technology.

$250 Checks Are Coming May 2009

The Economic Recovery Act requires SSA to make a one-time payment of $250 to Social Security and Supplemental Security Income beneficiaries. The check should arrive in May 2009. No action is necessary to receive the payment.

If you receive your benefit by mail, a check will be mailed. If you receive your benefits by direct deposit, the $250 will be direct deposited to your account.

If you receive SSI and SSDI, you will only get one payment of $250. These payments do not count as income for tax purposes. The payments also will be sent to retirees. If a husband and wife both receive retirement benefits, each of them will receive a $250 check.

DO NOT CONTACT SSA ABOUT THIS ONE TIME PAYMENT UNLESS IT IS JUNE AND YOU HAVE NOT RECEIVED YOUR PAYMENT. For more complete information on this one time payment, watch a short video.

Attorney Fee Cap Raised to $6,000

The Commissioner of the Social Security Administration, Michael J. Astrue (pictured here) is "increasing the maximum dollar amount limit for fee agreements ... to $6,000." The increase will be effective June 22, 2009.

This is the first time that the maximum fee has been increased in about 8 years. At that time, it was raised to $5,300. Legislation is currently pending in the House of Representatives to establish cost of living adjustments annually to the fee cap.

My current and future clients need not worry about this change. I will not be trying to change or amend existing fee agreements. Some of the newer clients have fee agreements that already spell out that the maximum is $5,300 "including any increases by statute or regulation." All future agreements will contain that language.

Patty Duke Video Promo for Online Ease of SSA Retirement

"The Patty Duke Show" returns, with Patty Duke in a video for the Social Security Administration. There are 5 videos video can be seen at proclaiming: Retire Online: It's So Easy!

Sure to be a big hit with the baby boomers!

January 1, 2009 - Happy New Year!

May you and your loved ones have a happy and blessed New Year.

As we begin this new year, "turning over a new leaf" and resolutions are common. Maybe you have some habits you want to change, or start, this year. Personally, I do, and the New Year always gives one the chance to 'begin anew,' to start fresh, with a clean slate.

I hope the Social Security Administration shares my enthusiasm for the fresh start. The Obama administration takes over in less than three weeks - what changes in the disability process will that bring? I have hope, but no predictions. Two wars, an economy that appears worse than the Great Depression, car manufacturers ready to go out of business ... I'm not sure that disability is going to get the attention, or the money, that it needs to make the progress necessary.

Those that work for SSA work hard. SSA has been decimated by retirements and hiring freezes over the years that has left it with a reduced work force and increasing work load due to the aging population.

ALJ HEARINGS BACKLOG In Omaha, the wait for a hearing continues to be intolerably long: 603 days on average. There has been no significant change since my previous reports in October or July. These days are calculated only after the ALJ Request has been filed, not when the Application was filed.

For a complete listing of all hearing offices across the country, go to Social Security News published by Charles T. Hall.

Will this long wait get shorter in 2009? Probably not without more personnel and funding for the hearing office in Omaha. I have nothing to indicate that will happen, but I still have hope.