Tag Archives for SSA

Social Security changes expand access to SSI

Published in RINewsToday on May 20, 2024

Last week, the Social Security Administration (SSA) announced good news for Supplemental Security recipients.  The federal agency published a final rule on April 19, 2024, to – “Expand the Definition of a Public Assistance Household.” The regulation announces one of several updates to Supplemental Security Income (SSI) regulations that will help people receiving and applying for SSI.  

SSA continuously examines programmatic policy and makes regulatory and sub-regulatory changes as appropriate. SSI is a means-tested program providing monthly payments to adults and children with a disability or blindness, and to adults aged 65 and older. These benefits help pay for basic needs like rent, food, clothing, and medicine. People applying for and receiving SSI must meet eligibility requirements, including income and resource limits.

According to SSA’s Office of the Chief Actuary, once this rule is implemented and the effects have stabilized, in fiscal year 2033 its estimated that roughly 277,000 federal SSI recipients (4 percent of all SSI recipients) will have an increase in monthly payments compared to current rules, and an additional 109,000 individuals (1% increase) will receive Federal SSI payments who would not have been eligible under current rules.  As of December, 2022, there were approximately 30,500 people in Rhode Island receiving SSI benefits. 

SSA expands access to SSI program

Under SSA’s final rule (20 CFR Part 416), beginning September 30, 2024, the agency will expand the definition of a public assistance household to include households receiving Supplemental Nutrition Assistance Program (SNAP) payments and households where not all members receive public assistance. The expanded definition will allow more people to qualify for SSI, and increase some SSI recipients’ payment amounts. It also reduces reporting burdens for individuals living in public assistance households.

The SSA revised rule also changes the definition of a public assistance household when determining who in a household receives public assistance. The new rule defines a public assistance household as one that has both an SSI applicant or recipient, and at least one other household member who receives one or more of the listed means-tested public income-maintenance (PIM) payments (the any other definition).

The previous policy required all household members to receive public assistance. This change benefits SSI recipients living in households where only some members receive public assistance.

“I’m committed to making systemic changes to help people access the critical benefits they need, including SSI,” said Martin O’Malley, Commissioner of Social Security, in a May 9, 2024 statement announcing the release of the final rule. “By simplifying our policies and including an additional program geared towards low-income families, such as [those receiving] SNAP, we are removing significant barriers to accessing SSI. These changes promote greater equity in our programs.”

SNAP is the first PIM benefit added to the agency’s public assistance household definition since it was established in 1980. This change helps ensure the agency’s policies better represent the current landscape of means-tested programs in the United States, according to SSA.

These changes are key because if an applicant or recipient is determined to be living in a public assistance household, the agency assumes they are not receiving assistance from other household members that would otherwise be counted as income. This will allow more people to qualify for SSI and in some cases, receive a higher SSI payment.

Thumbs Up from aging network

“I commend the Biden administration for this needed expansion of the SSI program.  It is a recognition that those in the greatest economic need in our nation need help.  By expanding the definition of a public assistance household, it will not only allow more people to qualify for SSI but can also increase some existing SSI recipient’s payment amounts,” says Robert B. Blancato, Executive Director of the Washington, DC-based National Association of Nutrition and Aging Services Program, noting that programs such as SSI and SNAP are safety net programs for those who are truly [in need].  

“It is disingenuous to lose qualification for one safety net program because of being eligible for another.  The role of the federal government is to assist those most in need while minimizing bureaucratic red tape.  This final rule shows a level of compassion we need to see more of in federal policy,” adds Blancato.

According to Maria Freese, Senior Legislative Representative at the Washington, DC-based National Committee to Preserve Social Security and Medicare, this new rule will take an important step toward simplifying some of the most complicated and burdensome rules governing the SSI program. SSI’s in-kind support and maintenance (ISM) rules reduce benefits dollar-for-dollar for the value of support from family or friends, such as a place to sleep, or help with groceries, up to one-third of benefits. SSI is the only federal program to reduce benefits in this manner. “While fewer than 1 in 10 SSI beneficiaries receive ISM, the current ISM rules make the program more complicated for nearly every SSI beneficiary.  SSA is required to ask detailed, personal, and complicated questions concerning living arrangements, other household members and budgeting, not only once but repeatedly as family circumstances change,” she says.

Freese added: “Groups living together who qualify as ‘public assistance households’ are exempt from these reporting requirements, but the previous definition, which required that every member of the household receive public assistance, limited the ability of low-income beneficiaries to take advantage of the exemption.  The new rule requires only one SSI beneficiary and one additional member of the household be a recipient of public assistance, and expands the qualifying programs to include the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps).” 

“This new rule will lessen hardship for struggling, low-income families, simplify the administration of the SSI program and lower costs and staff time for the Social Security Administration, which has been chronically underfunded.  It represents good public policy, and reflects well on an agency working hard to provide the benefits working families deserve,” notes Freese.

According to Nancy Altman, President and CEO of the Washington, DC-based Social Security Works, this rule is an important step towards improving the Supplemental Security Income program (“SSI”). “Currently, SSI forces the most disadvantaged Americans to jump through numerous time-consuming, complicated, and burdensome hoops simply to get below-poverty level benefits. Simplifying the numerous burdensome requirements will not only ease the lives of those whom government is intended to serve, it will also reduce administrative costs,” she says. 

“Ultimately, Congress needs to act to improve SSI, as well as adequately fund the SSA so it can hire and train enough staff to properly administer the program. In the absence of action from Congress, the Biden administration is doing what it can on its own, including this and other rule changes, says Altman.

Altman suggests that if Congress and the Social Security Administration truly want to save administrative costs and provide more accurate and timely payment amounts, more rules like these should be adopted and the laws governing SSI should be updated and simplified.” 

With Social Security’s long-term purchasing power dwindling and heightening financial uncertainty for recipients, the League supports updating the definition of public assistance for beneficiaries receiving SSI, says Shannon Benton, Executive Director of the Alexandria, Virginia-based Senior Citizens League. “’The increased inability of seniors to make ends meet remains a pressing concern of The Senior Citizens League, and it should also be a pressing concern of Congress,” she says.

Adds Associate Director Kathleen Holt, of the Connecticut-based Center for Medicare Advocacy, “The expanded definition of ‘public assistance household’ is a thoughtful, focused way to ensure the dignity and needs of individuals in a residence are upheld.”

For more information on the SSI program, including who is eligible and how to apply, visit https://www.ssa.gov/ssi.

To read the final rule “Expand the Definition of a Public Assistance Household,” visit  https://www.federalregister.gov/documents/2024/04/19/2024-08364/expand-the-definition-of-a-public-assistance-household.

For further details about the final rule, contact Tamara Levingston, Office of Income Security Programs, 6401 Security Blvd., Robert M. Ball Building, Suite 2512B, Woodlawn, MD 21235, 410-966-7384.

Modest Social Security COLA increase seen as chump change by some

Published in RINewsToday on October 16, 2023

Last week, the Social Security Administration (SSA) announced that Social Security and Supplemental Security Income (SSI) benefits for more than 71 million beneficiaries will increase 3.2% in 2024, about $59 per month starting in January. The 2024 payment declined from last year’s 8.7%, but that had been the highest in four decades. And, its higher than the average 2.6% increase recorded over the past 20 years.

The Social Security Act determined how the cost-of-living adjustment (COLA) is calculated. Enacted on August 14, 1935, the Act ties the annual COLA to the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as determined by the Department of Labor’s Bureau of Labor Statistics.

More than 66 million Social Security beneficiaries will see that COLA increase 3.2% beginning in January 2024, and increased payments to approximately 7.5 million people receiving SSI will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits).  

“Social Security and SSI benefits will increase in 2024, and this will help millions of people keep up with expenses,” observes Kilolo Kijakazi, Acting Commissioner of Social Security in an Oct. 12 statement announcing this year’s COLA increase.

According to SSA, some other adjustments that will also take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600 from $160,200.

Advocacy groups on aging talk turkey about COLA

“The annual COLA is a reminder of Social Security’s unique importance. Unlike private-sector pension plans, whose benefits erode over time, Social Security is designed to keep up with rising prices, noted Nancy Altman, President of the Washington, DC-based Social Security Works (SSW), in response to SSA’s COLA announcement.  

“Retirees can rest a little easier at night knowing they will soon receive an increase in their Social Security checks to help them keep up with rising prices,” said Jo Ann Jenkins, AARP chief executive. “We know older Americans are still feeling the sting when they buy groceries and gas, making every dollar important,” she added, stressing that Social Security has been the foundation for financial security for hundreds of millions of retirees. “SSA’s COLA announcement shows that it’s continuing to deliver on this promise,” she says.  

However, Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare charges, “While we are grateful that Social Security is the only major retirement program with a built-in cost-of-living adjustment, the current formula for determining COLAs is inherently flawed. SSA’s current COLA formula doesn’t truly reflect the increase in prices for the goods and services that beneficiaries rely on.”

According to Richtman, the 3.2% 2024 COLA only represents a modest $59 increase in the average monthly benefit for retired workers, and that’s before deducting the projected increase in the 2024 Medicare Part B premium of about $10 per month. Because of this the average retirement beneficiary will receive a net COLA of about $50. 

Richtman notes, “That is not enough for a tank of gas or half a week’s worth of groceries in many states. The net COLA will barely cover one brand-name prescription co-pay for some patients.”  

Last year, Richtman noted that the COLA of 8.7% was unusually high, the highest in some 40 years. But post-pandemic inflation was also at record highs, he said, noting that historically, COLA’s have been relatively low. In fact, the COLA has been ZERO; three times since 2009.  

“Seniors deserve an accurate COLA formula that accounts for the impact of inflation on their living costs. That is supposed to be the entire purpose of a COLA. The current formula measures the impact of inflation on urban wage earners and clerical workers. How is that a reasonable formula for seniors? Seniors have different spending patterns than urban wage earners & clerical workers,” asks Richtman.  

Richtman notes that seniors spend more than other age group on expenses like housing, long-term care, and medical services. “We strongly favor the adoption of the CPI-E (Consumer Price for the Elderly) for calculating COLAs. The CPI-E would more accurately reflect the impact of inflation on the goods and services seniors need, he believes. 

The CPI-E is included in both major pieces of legislation to expand and protect Social Security that have been introduced in this Congress: Bernie Sanders’ Social Security Expansion Act and Rep. John Larson’s Social Security 2100 Act.  We have endorsed both of those bills as part of our commitment to boosting Social Security for current and future retirees. It’s past time for Congress to act,” says Richtman. 

Although the 3.2% COLA is well above the 2.6% average over the past 20 years, a newly released retirement survey released on Oct. 12, 2023, by The Senior Citizens League (TSCL) indicates that seniors are pessimistic about their financial well-being in the upcoming months and very concerned about growing calls on Capitol Hill for Social Security cuts. Sixty-eight percent of survey participants report that their household expenses remain at least 10 percent higher than one year ago, although the overall inflation rate has slowed. This situation has persisted over the past 12 months.

According to TSCL’s latest retirement survey, worry that retirement income won’t be enough to cover the cost of essentials in the coming months is a top concern of 56 percent of survey respondents. Social Security benefit cuts are an even bigger concern, ranked as the number one worry by nearly 6 out of 10 survey participants, or 59%. Over the past year, benefit cuts and trims have affected a large percentage of older Americans low-income households, individuals who can least afford them.

A year ago, TSCL warned that higher incomes due to the 5.9% and 8.7% COLAs in 2022 and 2023 could potentially affect eligibility for low-income assistance programs such as SNAP and rental assistance. Earlier this year, federal emergency COVID assistance for SNAP (food stamps) and Medicaid also ended. Surveys conducted in 2022 and this year suggest that significant numbers of lower-income older households have lost access to some safety net programs over the past 12 months, the survey finds.

A Final Note…

Social Security plans to start notifying beneficiaries about their new COLA amount by mail starting in early December. Individuals who have a personal “my Social Security account” can view their COLA notice online, which is secure, easy, and faster than receiving a letter in the mail. People can set up text or email alerts when there is a new message–such as their COLA notice—instead of waiting for them in my Social Security.

People will need to have a “my Social Security account” by November 14 to see their COLA notice online. To get started, visit www.ssa.gov/myaccount.

Information about Medicare changes for 2024 will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new 2024 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.

For details about SSA’s 2024 Changes, go to: https://www.ssa.gov/news/press/factsheets/colafacts2024.pdf.

Rally round Martin O’Malley for Social Security Administration Commissioner

Published in RINewsToday on August 7, 2023

Just weeks ago, President Joe Biden nominated former Maryland Governor Martin O’Malley, Social Security Commissioner, to lead the Social Security Administration (SSA) in delivering benefits to 67 million Americans per month, totaling over 1 trillion dollars in benefits paid during the year. With the SSA Trust Fund running out of money in 2033 if changes are not made to financially shore up the program, O’Malley will be a key player in the fierce partisan battle on Capitol Hill to address the SSA’s solvency.   

In a tweet with over 91,000 views after his nomination, O’Malley said: “Humbled and honored to be chosen by @POTUS to lead @Social Security into the future. President Biden believes Social Security is a sacred promise.  I look forward to earning the Senate’s approval and serving with the hardworking patriots of the U.S. Social Security Administration.” 

After firing Andrew Saul in July 2021, a hold-over from President Trump’s administration who refused to resign, Biden had named Kilolo Kijakazi, who served as SSA’s deputy commissioner for retirement and disability policy, as Acting SSA Commissioner.  Over her tenure, Kijakazi oversaw the Baltimore, Maryland based independent agency’s efforts to maintain customer service amid the COVID-19 pandemic that forced the closure of SSA field offices throughout the nation. With the agency’s staffing levels at a 25-year low, along with using outdated technology, customer service plummeted because of long waits for phones in-person service.

Now O’Malley is headed to replaces Kijakazi as Social Security Commissioner. If confirmed by the Senate, he will serve a six-year appointed term.  O’Malley will be directly responsible for all programs administered by SSA; for state-administered programs directed by SSA; and for certain functions with respect to the black lung benefits program.

Lots of experience under O’Malley’s belt

O’Malley’s background as two-term Mayor of Baltimore and two-term Governor of Maryland, where he adopted data and performance-driven and customer service technologies to tackle complex challenges, will be helpful as he grapples with how to manage an understaffed and underfunded agency that has reduced SSA’s ability to determine in a timely fashion eligibility of persons seeking retirement, survivor, and disability benefits, and updating benefits promptly when circumstances change.  He has written extensively about how to govern for better results by measuring the outputs of government on a real-time basis.  

During his time as mayor, O’Malley’s policies helped achieve the greatest crime reduction of America’s largest cities. Prior to being elected Mayor, he served as a member of the Baltimore City Council, and Assistant States Attorney for the City of Baltimore before that.

According to the Georgetown University’s Institute for Politics and Public Service, O’Malley was called the best manager in government by Washington Monthly magazine.  “Under his leadership Maryland achieved nation-leading progress: Best public schools in America for an unprecedented five years in a row (Education Week); one of the top states in the nation for holding down the cost of college tuition (College Board); and #1 in innovation and entrepreneurship for three years running (U.S. Chamber of Commerce).” 

In 2016, O’Malley ran for the Democratic Party’s nomination for President of the United States. He dropped out of the race in the winter of 2016 after placing third in the Iowa caucus. He also served two terms as chair of the Democratic Governors Association and was appointed to the nation’s first-ever Council of Governors by President Obama in 2010.

O’Malley received his bachelor’s degree from Catholic University and his law degree from the University of Maryland. Since 2016, he has lectured on public administration at numerous universities and institutions, including the University of Maryland, Harvard University, Georgetown University, and Boston College School of Law.

He and his wife, Katie, a District Court judge, have two daughters, Grace and Tara, and two sons, William and Jack.

Calls for O’Malley’s Senate Confirmation

On July 26, Democratic lawmakers and social security advocates were quick to issue statements of support, strongly endorsing and celebrating O’Malley’s nomination to be SSA Commission.  Here is a listing of a few of these endorsements:

Oregon Senator, Chair of the Senate Finance Committee, Ron Wyden: “Social Security needs a confirmed commissioner in order to ensure Americans are receiving the best service possible for their earned Social Security benefits. Governor O’Malley is a proven leader with experience running a large organization that millions of families count on. I look forward to moving this nomination through the Finance Committee as soon as possible.” [Statement, 7/26/23 – https://www.finance.senate.gov/chairmans-news/wyden-statement-on-omalley-nomination-to-lead-social-security

Connecticut Congressman John Larson: “I applaud President Biden for nominating a champion for Social Security, Martin O’Malley, to lead the Social Security Administration and move it forward to better serve current and future beneficiaries. Governor O’Malley has long supported protecting and expanding Social Security. He knows just how important this program is to our seniors and that the modest payments they live on are simply not enough. I look forward to working alongside him as we work to ensure SSA has the resources it needs to serve our most vulnerable Americans for decades to come.” [Statement, 7/26/23 – https://larson.house.gov/media-center/press-releases/larson-statement-biden-nomination-martin-omalley-commissioner-social

Nancy Altman, President, Social Security Works: “Social Security Works and I, personally, applaud the nomination of Governor O’Malley, a longtime Social Security champion. We will do all we can to ensure his swift confirmation.  We look forward to working with him, once confirmed, to secure more funding for SSA as the president requested and higher benefits, with no cuts, as he, President Biden, and indeed the Democratic Party, through its 2020 platform, have called for.” [Statement, 7/26/23 – https://socialsecurityworks.org/2023/07/26/martin-omalley-will-fight-for-social-security/

Max Richtman, President and CEO, National Committee to Preserve Social Security and Medicare: “We commend President Biden for nominating former Maryland governor Martin O’Malley as Social Security Commissioner. It has been more than 20 years since the Senate has confirmed a permanent commissioner nominated by a Democratic president, and it is way past time for the Social Security Administration (SSA) to have one. As a confirmed commissioner, Martin O’Malley will be able to advocate effectively for SSA, which has been chronically underfunded and has struggled to provide adequate customer service. 

As a presidential candidate in 2016, Governor O’Malley championed the expansion of Social Security. He proposed boosting benefits and adopting a more generous (the CPI-E) for calculating COLAs — while adjusting the payroll wage cap so that the wealthy pay their fair share.  He insisted that ‘it is our responsibility to ensure that Americans who put in a lifetime of hard work are able to retire with the dignity they deserve.’ American workers’ payroll taxes largely fund the SSA.  They have every right to expect the agency that administers their benefits to be fully funded — with a permanent commissioner at the helm. The Senate should confirm Governor O’Malley in a timely manner when it returns from August recess.”

Richard Fiesta, Executive Director, Alliance for Retired Americans: “Members of the Alliance for Retired Americans are pleased that President Biden has nominated former Maryland Governor Martin O’Malley to be the next Social Security Administration (SSA) Commissioner. The SSA needs a strong Commissioner now more than ever. With 10,000 Americans turning 65 each day, the workload increases every day, and the budget has been woefully inadequate to meet the needs of seniors, people with disabilities and all-American families. Gov. O’Malley has a proven track record and the experience to navigate these challenges and ensure that Americans are able to get the benefits they have earned. American workers have earned their Social Security benefits, paying into the system with every paycheck. They deserve world class service from a fully staffed workforce equipped with the best tools and technology available. The Alliance for Retired Americans is confident that under Governor O’Malley’s leadership SSA will deliver. There is no time to waste. We urge the Senate to confirm Gov. O’Malley without delay.”

As SSA’s Commissioner, O’Malley will become the point person for Biden to push for an increase in the agency’s administrative expenses to improve computer technology, open field offices across the nation to improve the agency’s customer service by reducing backlog and wait-time on phone to its 67 million beneficiaries. (https://retiredamericans.org/retirees-praise-biden-nomination-of-martin-omalley-to-be-social-security-commissioner/)

Final thoughts…

Like Biden, O’Malley calls for defending the Social Security program against Republican attack, supporting the expansion of Social Security benefits, and raising SSA taxes on higher income beneficiaries. With Senate Republicans opposing these policies and a razor-thin Democratic majority in the upper chamber, expect O’Malley’s nomination to squeak by in being confirmed.  After the Senate returns from its month-long August recess, Senate Majority Leader Chuck Schumer (D-New York) must quickly move to schedule a vote on O’Malley’s nomination.  SSA now needs its top leader in place to begin working to fix SSA’s ongoing issues of financial solvency and customer service issues.

For more details about O’Malley, go to https://en.wikipedia.org/wiki/Martin_O%27Malley.