SSAB Report on SSA/DDS Partnership

On April 6, 2023, the Social Security Advisory Board (SSAB) issued a report entitled, Social Security and State Disability Determination Services Agencies: A Partnership in Need of Attention, which:

“outlines the SSA/DDS partnership’s history, evolution, and management. It also articulates that the relationship structure has remained static for decades even as technology, program integrity, and other requirements have changed.  Lastly, it offers examples of how SSA’s management approach helps and hinders the relationship and the disability determination process more broadly and highlights three areas warranting further review: DDS personnel, information technology, and performance and productivity.”

Notably, the report documents the considerable variation in DDS organizational approaches and decisional outcomes across the state agencies, which is concerning and conflicts with SSA’s focus on “program uniformity.”  The report also notes the ongoing workload processing delays at the DDSs, which began before the pandemic in FY 2019, and have only worsened. SSAB surmises that the following factors may be influencing the increases in the number of claims pending and the average processing time:

• Difficulty in obtaining needed medical evidence during the pandemic
• An unplanned transition to telework and longer-term closure of some DDSs offices and not others
• Insufficient technology to communicate with claimants and for workload processing
• Limitation on administrative expenses (LAE) (and DDS allocations) that sometimes lag behind workload volume increases, eventually leading to backlog. In other words, there are instances when demand exceeds DDS capacity
• Fluctuating staffing levels
• The length of time needed for new DDS staff to gain proficiency
• Higher DDS attrition rates

The report also highlights the need for better communication and support structures between DDS and SSA. Specifically, the report outlines how different components of SSA are responsible for overseeing DDS communications, operations, budget and hiring, productivity and performance, and policy priorities and notes how SSA’s diffuse organizational structure affects the relationship between SSA and the DDSs.

SSAB concludes that, based on key performance metrics, the state agencies “are struggling to keep up in the current environment” and notes the following “important features of the disability determination process” that SSAB will continue to assess:

• Personnel challenges at the DDS level
• The effect of Disability Case Processing System (DCPS), HIT (Health Information Technology), machine learning, and other IT applications (or lack thereof) on workload processing
• Productivity trends and the effectiveness of SSA’s quality review mechanisms.

NOSSCR News – April, 2023

2023 Annual Conference

Next week, NOSSCR kicks off its 2023 Annual Conference in Washington DC. More than 900 people have registered for the event, making it one of the largest and most successful conferences NOSSCR has ever hosted.

The event will provide a unique opportunity for Social Security and disability advocates across the country to earn CLE for professional development. And with satellite events such as the Tom Scully Award Dinner, Next Gen Reception, and Women Wine Down, 2023 attendees will have more opportunities than ever to connect with colleagues.

The 2023 Conference agenda also underscores NOSSCR’s renewed commitment to advocating for policies that protect and improve the Social Security program; Senator Debbie Stabenow will be delivering a Keynote address at the Conference and the Social Security Administration will be participating in three separate sessions and exhibiting at the event.

Our team looks forward to seeing you all in Washington next week—and don’t forget to post photos and takeaways on social media using the hashtag #NOSSCR2023.

Not registered for NOSSCR’s 2023 Annual Conference? There’s still time! Register here.

Executive Committee Wrap Up

Given the interest from NOSSCR members, The Forum will now include brief descriptions of both Executive Committee and Board of Director meetings. This is the first such wrap up. Next month’s Forum will also include our monthly Executive Committee meeting and the May 3^rd Board meeting.

On April 17^th NOSSCR’s Executive Committee met by video conference for about 80 minutes. During that call the committee reviewed NOSSCR’s year-end financials (to be shared at the Board of Directors meeting), discussed the upcoming NOSSCR conference in DC the first week of May, and specifically helped shape the agenda for the Board of Directors meeting. David Camp provided an update on recent policy activities. No formal actions were taken. NOSSCR staff were directed to complete the Board agenda and materials.

Federal Coverage

NOSSCR is currently building a reference list of firms that provide representation in federal cases. If your firm provides coverage for federal cases, please reach out to nosscr@nosscr.org.

COMING SOON: A New Digital Platform for NOSSCR

NOSSCR is in the process of transitioning to a new virtual platform that will allow it to deliver higher-quality service, develop new member benefits, and build stronger communities.

The new tool will provide online communities and forums; a resource library for members; and easier access to member benefits and member-exclusive products. Be on the lookout for the launch of this new program later this summer!

Social Security Trustees Issue Annual Report on Social Security’s Finances

On March 31, the Social Security Trustees released their annual report on the current and projected financial status of the Social Security trust funds. The 2023 Trustees Report highlights that our Social Security system continues to operate well for the American people. Our Social Security system’s financial outlook remains stable and can continue to pay all scheduled old age, survivors, and disability benefits until 2034.

The 2023 Trustees Report finds that Social Security is fully solvent until 2034 looking at the combined Trust Funds but faces a moderate long-term shortfall for the Old Age and Survivors (OASI) program, which can fully pay benefits until 2033 on its own, one year sooner than last year. If nothing is done to ensure the solvency of the OASI program before that time, the program would still be able to pay 77 percent of promised benefits to survivors and retirees.

Other highlights of the current financial status of the Trust Funds include:

• At the end of 2022, the OASDI program was providing benefit payments to about 66 million people: 51 million retired workers and dependents of retired workers, 6 million survivors of deceased workers, and 9 million disabled workers and dependents of disabled workers.
• During the year, an estimated 181 million people had earnings covered by Social Security and paid payroll taxes on those earnings.
• The total cost of the program in 2022 was $1,244 billion. Total income was $1,222 billion, which consisted of $1,115 billion in non-interest income and $66 billion in interest earnings.
• Asset reserves held in special issue U.S. Treasury securities declined from $2,852 billion at the beginning of the year to $2,830 billion at the end of the year.
• The reserves of the combined OASI and DI Trust Funds along with projected program income are sufficient to cover projected program cost over the next 10 years under the intermediate assumptions.
• The ratio of reserves to annual cost is projected to decline from 204 percent at the beginning of 2023 to 96 percent at the beginning of 2029. Because this ratio falls below 100 percent by the beginning of the 10th projection year, the combined OASI and DI Trust Funds fail the Trustees’ test of short-range financial adequacy.
• Considered separately, the OASI Trust Fund fails this test, but the DI Trust Fund satisfies the test. For last year’s report, the Trustees projected combined reserves would be 211 percent of annual cost at the beginning of 2023 and 57 percent at the beginning of 2032.
• The projected reserve depletion years were 2035 for OASDI, 2034 for OASI, and 2096 for DI in last year’s report. The level of DI reserves is very sensitive to changes in program cash flows and interest.

The Trustees Report also included excellent news for the disability program. For the second year in a row, the Trustees project that Social Security’s Disability Insurance (DI) trust fund by itself can pay all scheduled benefits throughout the entire 75-year period covered by the Trustees estimates.

Prior to last year, the last time SSDI was fully funded for the entire projection period was in 1983. This is in part due to the temporary reallocation of payroll taxes from the OASI Trust Fund to the DI Trust passed by Congress in 2015. NOSSCR advocated vigorously for this reallocation and the current fiscal status of the program means that there is no concern of benefit cuts in the disability program for the foreseeable future, unless Congress acts to make program changes.

The Trustees Report includes the following additional information regarding the DI program:

• The DI program continues to have low levels of disability applications and benefit awards for 2022.
• Disability applications have declined substantially since 2010, and the total number of disabled-worker beneficiaries in current payment status has been falling since 2014.
• The Trustees assumed for this report that disability applications will continue to rise gradually from current low levels, resulting in a rise in the age-sex-adjusted disability incidence rate to an ultimate rate of 4.8 per thousand exposed by the end of the short-range projection period, the same as last year but lowered from 5.0 per thousand assumed for the 2021 report.

As you know, Congress is considering ways to make sure that the OASDI program is fully solvent throughout the 75-year window given this coming funding shortfall.

The Trustees Report indicates that:

“to remain fully solvent throughout the 75-year projection period ending in 2097: (1) revenue would have to increase by an amount equivalent to an immediate and permanent payroll tax rate increase of 3.44 percentage points to 15.84 percent beginning in January 2023; (2) scheduled benefits would have to be reduced by an amount equivalent to an immediate and permanent reduction of 21.3 percent applied to all current and future beneficiaries effective in January 2023, or 25.4 percent if the reductions were applied only to those who become initially eligible for benefits in 2023 or later; or (3) some combination of these approaches would have to be adopted. If substantial actions are deferred for several years, the changes necessary to maintain Social Security solvency would be concentrated on fewer years and fewer generations. Significantly larger changes would be necessary if action is deferred until the combined trust fund reserves become depleted in 2034.”

As urged by the Trustees Report, NOSSCR supports acting sooner rather than later to ensure the 75-year solvency of the Social Security programs.

VOCATIONAL TOPICS: Piemonte’s Perspective

What to Do When the VE Testifies that Two or More Absences Are Tolerated

VEs in hearings will often testify that 2 (or even more) absences per month are accepted by employers. What is wrong with this?

• No (federal) law requires employers to provide sick leave. In 2021, per the DOL, workers were absent 2.96 days for the YEAR. See lost worktime rate here.
  • In the real world, only valuable employees (i.e. skilled workers) are allowed regular absences. In unskilled work, the employer has no reason to hold a job for an absent worker, as any applicant can do the job without skills.
  • In the real world, employers do not give anything close to these many days off.

So how do you handle this testimony when the VE makes such a statement, you can ask the following questions:

• Why would an employer hold an unskilled job for a sick worker?
  • What is the business case to hold it when it could be filled by any other person?
  • How much sick leave does the law require? (The answer is none. See DOL).
  • How many sick days are actually taken in the US? (1.4 to 5.9 days per year. Available at DOL site above).
  • What is the source of your testimony? Ask for the specific pinpoint citation. See Biestek v. Berryhill, 139 S.Ct. 1148 (2019) and 2020 VE Handbook statement that VEs “should be able to thoroughly explain what resource materials [they] used and how [they] arrived at [their] opinions.”
  • Consider getting statements from a handful of employers, or a VE to submit as rebuttal evidence.

The facts prove that 2 or more absences per month is not an accurate statement of the reality of the working world.

STAFF PROFILE: Steve Gardner, Chief Executive Officer

Steve Gardner’s career took a major turn one day in October, 2014. He had been presented with an opportunity to attend leadership training at the Center for Creative Leadership. The week had been intense. Working with other executives from around the country the team had “run” a fake glass company, pretending to be CEOs and other senior executives. It had been a grueling week with frank evaluations and hard to hear feedback.

At the very end of the training each participant was asked the same question, “Someday when you retire, what do you want your professional reputation to be? Professionally, what do you want to be remembered for?”

Steve realized that the most satisfying moments of his career had been when he realized that he had helped others with their careers. The best compliment he had ever received was when one employee left his organization for a new job and said on his last day, “I know the only reason that I got this job is because I worked for you.”

That realization of what mattered to Steve set him on a new career course. Steve said, “I realized that I was helping other people achieve their goals, but I wasn’t sure that I had done it enough. And I wasn’t sure that I had made helping others enough of a real focus of my career.”

From that point on, Steve managed people differently, working to coach and mentor better and to prioritize the development of his team.

Over Steve’s career, he’s worked with CEO’s from Fortune 50 companies. He’s created and led global teams. Steve has had the opportunity to travel the world in his various jobs, speaking publicly, managing campaigns and operations from the Premier of China visiting a facility in Shanghai, to events on the floor of the New York Stock Exchange stories on 60 Minutes and more.

“I’m fortunate that I found such a great fit with NOSSCR.” Steve said. “NOSSCR is going through such amazing changes. Every day is challenging, but also gratifying. I love the team we’ve put together here. This team is the main reason that I wanted to be here. I can’t wait to look back in a few years and see everything that we’ve been able to accomplish for the members of NOSSCR.”

Steve has lived on Capitol Hill for nearly 14 years with his wife Cheryl Levine, the Director of Innovation at the Health Resources and Services Administration. They travel as much as possible and Steve knows all the best places in DC to get a glass or bottle of wine.

PAC Contributor List – April 2023

THANK YOU TO OUR NOSSCR PAC CONTRIBUTORS!

List includes all donors from Jan 1, 2022 – April 27, 2023

Key: CAP= Capitol Club, $5,000/monthly contribution of $416
PC= Platinum Club, $2,500-$4,999/ monthly contribution of $208-415
DC=Diamond Club, $1,000-$2,499/monthly contribution of $83-207
CC= Century Club, $100-$999
C=Contributor, all other contributions

Legislation Spotlight: The Stop the Wait Act

Representative Lloyd Doggett (D-TX-37) introduced H.R. 883, The Stop the Wait Act of 2023, on February 9, 2023. Senator Robert Casey (D-PA) introduced the same bill in the Senate, S. 320, on the same day.

H.R. 833 has 94 co-sponsors, 91 of which are Democrats and 3 are Republicans. S. 320 has 11 co-sponsors, 10 of which are Democrats and 1 is an independent.

First introduced in September of 2019, the 118^th Congress is the third straight Congress that the bill has been introduced in both the House and the Senate. No hearing or markup has ever been held on the bill. The bill has not been scored by the Congressional Budget Office since its introduction.

Bill Summary: The Stop the Wait Act would reduce the number of months that a Social Security Disability Insurance (SSDI) beneficiary is required to wait after disability onset date for the receipt of benefits to begin. The bill does so gradually over time as follows:

(b) Phase-Down Of Waiting Period For Disability Insurance Benefits. — For purposes of applications for disability insurance benefits filed on or after the date of enactment of this Act and before January 1, 2028, section 223(c)(2) of the Social Security Act (42 U.S.C. 423(c)(2)) shall be applied by making the following substitutions:

(1) For applications filed in calendar years 2023, 2024, or 2025, substitute “three” for “five” and “fifteenth” for “seventeenth” each place it appears.

(2) For applications filed in calendar year 2026, substitute “two” for “five” and “fourteenth” for “seventeenth” each place it appears.

(3) For applications filed in calendar year 2027, substitute “one” for “five” and “thirteenth” for “seventeenth” each place it appears.

Eliminating the five-month waiting period for SSDI benefits is one of NOSSCR”s top legislative priorities. NOSSCR strongly supports this bill, as well as legislative approaches that provide individuals with an election regarding whether to wait for five months before benefit receipt begins or to have benefits adjusted to eliminate the wait.

DEAR COLLEAGUE LETTER: Update on Process for Request of AC Review

The Dear Colleague letter below explains an upcoming change to the AC appeal process, in which the AC will no longer wait to act on a request for review for an initial 25-day period.  However, claimants and representatives can still request extensions of time to submit evidence and arguments to the AC as described in HALLEX I-3-1-14.

Download Letter (PDF)