The Social Security Administration, an independent federal agency, publishes a newsletter called "Social Security Today." Here is the most recent issue I found on the web site www.ssa.gov ---------- Social Security Today Volume 1, Number 5--An official publication of the Social Security Administration -- March /April ----------------------------------------------------------------- ADVISORY COUNCIL SETS STAGE FOR TALKS The recent report of the Advisory Council on Social Security sets the stage for national dialogue on the future of the Social Security system. Although the council was unable to reach agreement on how to best finance the program, it did reach agreement on key issues designed to protect the program and its beneficiaries. For instance, there was agreement that: * It is of great importance to the nation that a compulsory Social Security system be continued. * Maintaining full cost-of-living adjustments is one of Social Security's most important contributions to individual security and should be continued. * Social Security benefits should not be "means-tested" because it would discourage personal savings. * Benefits of low-wage workers should be protected. The council also reached agreement on several other issues, including the following key items which would improve the economic health of the program. These include: * building up additional reserve funding; * extending mandatory coverage to newly-hired state and local government employees, to achieve the long-standing goal of universal coverage; and requiring that current beneficiaries share in any sacrifices that might be necessary, preferably by applying some new taxes to Social Security benefits. THREE ALTERNATIVE PLANS The council developed three options for future financing of the program. The "Maintenance of Benefits" option would maintain the present Social Security benefit structure essentially as is, while partially reducing the long-range deficit through several small steps (such as taxing benefits to the extent they exceed what the worker paid in). To eliminate the remaining deficit, the plan would consider investing part of the trust funds in the stock market, which should allow the funds to earn a higher return than when invested in government securities (as the law currently requires). The "Individual Accounts" option would gradually lower the growth of Social Security benefits, while also creating mandatory individual accounts funded by additional employee contributions of 1.6 percent of payroll. The accounts would be held by the federal government, and individuals would have limited choices on how to invest the funds. The "Personal Security Account" plan would gradually replace Social Security with a "two-tiered" system. For example, the first tier would be a flat monthly benefit of about $410 in 1996 for workers with 35 years of employment. The second tier would be the privately owned Personal Security Accounts, financed by taking five percentage points of the current payroll tax and redirecting it to the personal security account. Unlike the Individual Accounts plan, the funds in these accounts would not be held or managed by the federal government. Under this plan, there would also be a transition cost equal to an additional 1.5 percent of payroll for 72 years, including the repayment of additional funds that would need to be borrowed from general U.S. government revenues in the early years of the transition. A FOUNDATION FOR DECISION The work of the Advisory Council provides a good foundation for the task that lies ahead - ensuring that the Social Security program will be the best one for future generations of Americans. SOCIAL SECURITY IS PREPARING FOR BABY BOOMERS' RETIREMENT Wednesday will become an important day in the lives of future Social Security beneficiaries. It's the day that their Social Security benefits will be paid. People who apply for benefits beginning May 1, 1997 will not receive their benefit on the third of the month as in the past. Instead they will receive it on a second, third, or fourth Wednesday of the month. When a person applies for benefits, the Social Security representative will tell him or her when to expect benefit payment. The benefit award notice will also have this information. Benefits received in June will use the new cycling schedule. The day a person receives benefits will be determined by the birth date. Here's how it works: ----------------------------------------------------------------- Birth date between the: Benefit paid on the: 1st - 10th Second Wednesday 11th - 20th Third Wednesday 21st - 31st Fourth Wednesday ----------------------------------------------------------------- Generally, the day in the month a person receives benefits will depend on the birth date of the person on whose record benefits are paid. For example, a retired or disabled worker's benefit payment day will be determined by his or her birth date. A spouse's benefit payment day will be determined by the worker's birth date. People who currently get Social Security will continue to receive benefits on the third day of the month. The same is true for people who begin receiving benefits from both Social Security and Supplemental Security Income (SSI). SSI will continue to be paid on the first of the month. Adding new benefit payment days will let Social Security give better service to all beneficiaries and callers. This becomes increasingly important as Social Security prepares for the retirement of baby boomers. Over the next 25 years, the benefit population will grow from the current 50 million to more than 76 million. By spreading benefit payment dates over the month, Social Security will be able to provide faster, more efficient service, especially to those who call Social Security's toll-free number 1-800-772-1213 about their monthly benefit. ---------------------------------------------------------------- MEET A BENEFICIARY Larry Wineke Social Security helps heart transplant patient On his 38th birthday, Larry Wineke began to feel ill with extreme shortness of breath and flu-like symptoms. Noting that his symptoms failed to improve and he grew weaker, his doctor referred him to a local hospital where medical tests revealed that an infectious virus was slowly destroying his heart. Doctors treated him with various medications that allowed him to continue working as a science teacher and football coach at Calvert Hall College High School in Baltimore. But eventually, Larry suffered a setback that required surgical intervention. Though surgery helped, his condition continued to deteriorate until only a heart transplant could save his life. Receiving financial support from the community, Larry was able to have his name placed on lists at two hospitals to receive the transplant. "By that time, I could not work. But I did not know I could file for Social Security disability," he said. "I thought Social Security was only for retirement." Larry was near death before a donor was found. In November 1995, surgeons wheeled him into the operating room at Johns Hopkins Hospital where he received a heart transplant. He remained hospitalized for three months. Now, at age 44, he is back to work, recovering from the surgery and his long stay in the hospital. "It was a miracle," he says. "I never gave up hope because of the support of my wife, the community, the doctors, and nurses. But now I have many bills to pay for my surgery and medication." Larry contacted his local Social Security office in the fall of 1995 and began receiving regular monthly benefits. Now he says, "My Social Security disability benefits really help out. We were able to keep our house." Though Larry is back to work, his Social Security disability benefits are extended until he is further along in his recovery. The family, which includes Larry's wife, Sue, and their two sons, Michael, age 16, and Ryan, 14, are happy to have their father back in good health and can enjoy life once again. DISABILITY AT A GLANCE Disability under the Social Security program is based on the inability to work. The person also must be insured under the Social Security program. To be considered disabled, one must be unable to do any kind of work for which he or she is suited. Since Social Security generally does not pay benefits for partial disability or for short-term disability, the impairment must be expected to last for at least a year or result in death. Social Security disability benefits can be paid at any age. A disability beneficiary is automatically enrolled in Medicare after getting benefits for two years. In addition, certain family members may also qualify for benefits on the record of a disabled person. Many disability beneficiaries attempt to go back to work. To help them succeed, Social Security provides work incentives which allow for cash benefits and Medicare coverage. If you would like more information about the disability program or work incentives, call our toll-free number 1-800-772-1213. DISABILITY REDESIGN UPDATE Beginning April 1997, the Social Security Administration plans to test a claims process model that combines key disability redesign initiatives. Testing will take place at eight sites around the country, and will have a universe of 30,000 cases randomly selected over a 9-month period. The combined model will test the following redesign features: * A single decisionmaker--A highly trained disability examiner in the State Disability Determination Service will be authorized to sign the disability determination form for most cases. Mental impairment cases and Supplemental Security Income childhood disability claims will require the signature of a medical consultant. * Pre-decision interview for initial claims--If a decision will be less than fully favorable to the claimant, the decisionmaker will offer the claimant a pre-decision interview, either face-to-face or by telephone. * Elimination of the reconsideration step--If a claimant chooses to appeal a decision, the first level of appeal will be a hearing before an Administrative Law Judge. * Adjudication Officer--When a hearing is requested, the adjudication officer will work representatives to define the issues for appeal by obtaining new evidence and developing the claimant's record. Where the evidence warrants it, the Adjudication Officer may issue a revised fully favorable decision, and eliminate the need for a hearing. Data on sample cases will be collected after all appeals have been decided. ---------------------------------------------------------------- COMMISSIONER'S MESSAGE John J. Callahan Acting Commissioner of Social Security Hubert Humphrey once said that "the true moral test of government is how it treats those in the dawn of life - the children; those in the twilight of life - the aged; and those who are in the shadow of life - the sick, the needy, the disabled." Supplemental Security Income (SSI) is our national answer to his important test. SSI lives our neediest, the elderly, blind, and disabled a measure of financial security. SSI helps these men and women living in poverty by providing a floor of income which they can rely on. Contrary to the image some try to create, SSI is not a program filled with undeserving people getting rich off the federal government. Nothing could be further from the truth. In fact, for millions of Americans, SSI benefits are the only thing standing between them and destitution. More than half of SSI's 6.5 million recipients have no other source of income. And for another 2.4 million, SSI is a supplement to those elderly who receive the smallest of Social Security benefits and have little additional income. We know that the accuracy of eligibility status is of paramount importance to protect SSI itself, and, of course, the recipients. Therefore, we have a number of procedures and initiatives in place to ensure the integrity of the program. Make no mistake: we have a zero-tolerance for fraud. With our new Inspector General at the lead, in the past two years, we have more than doubled our number of investigators working in the field. We are also establishing new mechanisms, such as computer-matching agreements with states and other public agencies, for obtaining and verifying income and other relevant information regarding continuing eligibility of SSI recipients. We also encourage our employees and the public to come forward with concerns; we now have a new national hotline, 1-800-269-0271, just for this purpose. Further, we have agreements with approximately 3,500 federal, state, and local prisons, to obtain ongoing reports on their prison populations, so that we can suspend benefits for any SSI recipient who is incarcerated, as is required by law. Again, our zero-tolerance of fraud means that those few individuals who attempt to cheat this important program know that Social Security is tracking them down, will prosecute them, and will seek the strongest punishment available under law. Additionally, with our strengthening the eligibility process review, and new programs which will help the disabled become independent, SSI is not only facing the challenges of today; it is ensuring the financial security for those who need it the most for years to come. WE WON'T KEEP YOU IN SUSPENSE Each year, Social Security receives reports from employers across the nation representing the earnings of millions of workers. Social Security posts these earnings to the worker's earnings record, and later uses them to determine eligibility for Social Security benefits, and the amount of those benefits. A very high percentage of the earnings reports Social Security receives are correct, and posted timely. Sometimes, however, Social Security will receive an earnings report that does not match the name and Social Security number already on our records. When that happens, the agency goes to great lengths to find the correct record to which to credit the earnings. First, we apply some tolerances for common errors, such as the use of nicknames, misspellings of names, or transposing a letter in a name or a numeral in the Social Security number. If that doesn't work, we attempt to contact workers or their employers to resolve the discrepancy. As a result of these and other efforts, we are eventually able to post almost 80 percent of the earnings reports that originally did not match. Only after we have exhausted all of these means do we place the earnings in a "suspense file." This is a file where earnings are placed that cannot be credited to a specific earnings record. But, once an item goes into the suspense file, it does not simply remain there. We continue to make all efforts to post as many wage items as possible. Social Security is concerned about the effect of any unposted earnings on a person's eligibility and benefits. You can help by taking the f problems. Twelve weeks of training honed them into a team. When they emerged as the Direct Service Unit, they set out to improve the level of service Social Security provides to the public. During its first phase of operations, the DSU is responding to calls from the public to Social Security's toll-free number, 1-800-772-1213. In its first nine months, the unit of 155 employees responded to 312,510 customer inquiries. The DSU also is a laboratory in which to test new ideas for improving service. Currently, the DSU is being tested as a site for answering Social Security questions posted on the Internet. Feedback from customers has led to another proposal for testing. Many customers want to file a claim for benefits using Social Security's toll-free 800 number. The DSU is exploring ways to do this. The DSU is successful partly because employees love working there. Many had served in jobs with no public contact and did not feel connected to the primary purpose of Social Security, which is to serve the public. "Now," says Art Webster, Director of the DSU, "when the DSU receives a telephone call or answers a question posted on the Internet that ends with a satisfied customer, employees feel a sense of satisfaction." Receiving the Hammer Award makes it even better. ---------------------------------------------------------------- KEEP IN MIND IRS MAY RECOMPUTE YOUR TAXES "Checking it twice," is good advice at any time, and it would be well to apply this wisdom to your income tax returns. This year, for the first time, if you do not show a correct Social Security number on your tax return, the Internal Revenue Service (IRS) may recompute your taxes. Recent changes in tax law require that Social Security numbers be listed correctly on the return before a person can claim a personal exemption, the child care credit, or the earned income credit. When processing tax returns, IRS checks the names and Social Security numbers of taxpayers, their spouse, and all dependents born before December 1, of that tax year. If IRS discovers an incorrect or missing Social Security number, they will recompute the income tax. For example, if you claim a child care credit, but don't have a Social Security number for the child, IRS will recompute the taxes and not allow the child care credit. benefits, press or say 2; * proof of current payments, press or say 3; * Medicare information or a replacement Medicare card, press or say 4; or * the address and working hours of the office nearest you, press or say 5. To speak with a representative, press or say 6, or remain on the line. Representatives are available between 7 a.m. and 7 p.m. When a representative answers, you may ask for one who speaks Spanish and you will be connected with a Spanish-speaking representative. If you speak a language other than English or Spanish, you should have someone who speaks English or Spanish with you when you call. Other languages are not available at this time. When the office is closed in the evening between 7 p.m. and 7 a.m. and on weekends and holidays, two additional options are available. For a list of-- * pamphlets, press or say 6, and * general information messages, press or say 7. For some services, you may be asked to leave your name, address and, in some cases your Social Security number, so we can send the information to you. WHAT'S NEW PUBLISHER'S BOX Social Security Today is designed to provide timely and relevant information about the retirement, survivors, disability, and Supplemental Security Income programs, as well as important Medicare information. Each issue of Social Security Today contains items that should be of interest to your constituency. Permission to reprint articles, giving credit to the Social Security Administration, is granted. We would appreciate your sending tearsheets when you reprint this material. We welcome your comments and invite suggestions for future editions. Please direct your correspondence to Editor, Social Security Today, Room 4-J-10 West High Rise, 6401 Security Boulevard, Baltimore, MD 21235, or fax to Margaret. D. Pagan @ssa.gov; Social Security Today also is available at the Social Security Internet site, http://www.ssa.gov. .