Government announces deadline for phasing out paper benefit checks including Social Security
By MARTIN CRUTSINGER , Associated Press
Last update: December 21, 2010 - 6:45 AM
WASHINGTON - Before too long, the government check will no longer be in the mail.
Officials have settled on the dates when millions of people will no longer be able to get their Social Security and other benefit checks by mail.
New recipients of benefits will have to accept paperless payments starting on May 1 of next year, three months later than first proposed.
Those already on Social Security will have until March 1, 2013 to make the switch to direct deposits or a debit card.
More than 58 million retirees, disabled people and surviving family members receive Social Security or Supplemental Security benefits. Already eight out of 10 people getting federal benefits receive those payments electronically, officials say.
The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them, said Richard L. Gregg, the Treasury Department's assistant fiscal secretary.
"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits," Gregg said.
Every year, the government has to process about 600,000 claims for lost or stolen checks. Social Security will save $1 billion over the next decade from phasing out paper checks, he said.
The final rules, scheduled to be unveiled Tuesday, are very similar to the proposal the government put forward in June.
But in response to public comments, the government has decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits the same way. The government estimates there are 275,000 people who fall into that category.
For people who do not have accounts at a bank or credit union, the government has an option that allows them to use a Direct Express debit MasterCard issued by Comerica Bank, Treasury's financial agent. More than 1.5 million people have obtained these cards, which were first issued in 2008.
In addition to the automatic waiver from electronic payments for those 90 and over, people living in remote areas who might have trouble getting to a bank can also petition for a waiver from the new rules. Gregg said that the government expects fewer than 1 percent of current benefit recipients will petition for a waiver.
Social Security Commissioner Michael J. Astrue said that people should not wait until the deadlines to make the switch to electronic payments.
"Switching now eliminates the risks of lost and stolen checks and provides immediate access to your money on payment day," Astrue said.
The new deadlines for the switchover were announced by Treasury's Financial Management Service, the agency that processes payments for the federal government.
Congress passed a law in 1996 giving the agency the power to halt mailing paper checks for all government payments outside of refund checks from the Internal Revenue Service.
To help with the switchover for those still getting paper checks, the government has created a website, http://www.godirect.org/ and a toll-free phone number, 1-800-333-1795, that people can call for assistance.
http://www.latimes.com/business/nationworld/wire/sns-ap-us-government-checks,0,4628337.story
Government announces deadline for phasing out paper benefit checks including Social Security
MARTIN CRUTSINGER AP Economics Writer
WASHINGTON (AP) — Before too long, the government check will no longer be in the mail.
Officials have settled on the dates when millions of people will no longer be able to get their Social Security and other benefit checks by mail.
New recipients of benefits will have to accept paperless payments starting on May 1 of next year, three months later than first proposed.
Those already on Social Security will have until March 1, 2013 to make the switch to direct deposits or a debit card.
More than 58 million retirees, disabled people and surviving family members receive Social Security or Supplemental Security benefits. Already eight out of 10 people getting federal benefits receive those payments electronically, officials say.
The switch to electronic payments will eliminate the problem of lost or stolen checks and also the problems faced by people displaced from their homes who have to worry about getting their checks mailed to them, said Richard L. Gregg, the Treasury Department's assistant fiscal secretary.
"Even though we have done a good job of encouraging people to switch over, we still are making 120 million payments by mail for Social Security every year and another 15 million annually for veterans and other types of benefits," Gregg said.
Every year, the government has to process about 600,000 claims for lost or stolen checks. Social Security will save $1 billion over the next decade from phasing out paper checks, he said.
The final rules, scheduled to be unveiled Tuesday, are very similar to the proposal the government put forward in June.
But in response to public comments, the government has decided to allow people who are 90 and over and are still getting Social Security benefit checks to continue to receive their benefits the same way. The government estimates there are 275,000 people who fall into that category.
For people who do not have accounts at a bank or credit union, the government has an option that allows them to use a Direct Express debit MasterCard issued by Comerica Bank, Treasury's financial agent. More than 1.5 million people have obtained these cards, which were first issued in 2008.
In addition to the automatic waiver from electronic payments for those 90 and over, people living in remote areas who might have trouble getting to a bank can also petition for a waiver from the new rules. Gregg said that the government expects fewer than 1 percent of current benefit recipients will petition for a waiver.
Social Security Commissioner Michael J. Astrue said that people should not wait until the deadlines to make the switch to electronic payments.
"Switching now eliminates the risks of lost and stolen checks and provides immediate access to your money on payment day," Astrue said.
The new deadlines for the switchover were announced by Treasury's Financial Management Service, the agency that processes payments for the federal government.
Congress passed a law in 1996 giving the agency the power to halt mailing paper checks for all government payments outside of refund checks from the Internal Revenue Service.
To help with the switchover for those still getting paper checks, the government has created a website, http://www.godirect.org/ and a toll-free phone number, 1-800-333-1795, that people can call for assistance.
http://accounting.smartpros.com/x61717.xml
Next the statement asserts that, "Without changes, by 2041 the Social Security Trust Fund will be exhausted…" This comment is incorrect. Either the SSA Commissioner Michael J. Astrue is incompetent, or he is afraid to tell the truth. The fund will actually run out of money around 2017.
The balance sheet of the trust funds at December 31, 2007 showed assets of $2,238 billion and shows growth. But, anybody with even a minimal amount of financial understanding can look at those assets and see that the funds are in serious trouble. Virtually all of the assets in the trust funds are special issues of federal government securities. But, they are not securities in any usual sense of the term. They do not provide an equity stake, nor do they lend money in any business sense, as they do not specify when they are paid and they do not stipulate any interest. Even if they were securities, they should be written down to fair value, which is zero.
In plain English, when Congress looted the Social Security funds, it avoided bad press by giving IOUs to the trust funds and calling them securities. What is the value of these receivables? How much should we put into the Allowance for Doubtful Accounts? If economic times were good, maybe Congress could repay these debts and the trust funds collect the money. But, with a budget that spends more and more on interest (a major non-value added cost), supports the war on terror, and attempts to pay off all those entitlements (corporate as well as personal welfare), members of Congress will have great difficulty in finding enough wealth to tax that supplies all their lusts. At that point, approximately in 2017, social security will devolve rapidly.
http://en.wikipedia.org/wiki/Michael_J._Astrue
EXCERPT:
Michael James Astrue (born 1956) is an American lawyer and, under the pen name A. M. Juster, a poet and critic. He serves as Commissioner of the Social Security Administration since 2007.
[edit] Career
After his secondary education at The Roxbury Latin School, Astrue earned a bachelor's degree from Yale University, where he served as President of the Yale Political Union, and a Juris Doctor degree from Harvard University.[1]
Astrue, who previously served in the Social Security Administration as Counselor to the Commissioner, served in the US Department of Health and Human Services as General Counsel and as Acting Deputy Assistant Secretary for Leigislation. He also served as Associate Counsel to the President of the United States at the White House in the Reagan and George Bush Sr administrations. In the private sector, he practiced law and was as a senior executive at several biotechnology companies.[2]
Astrue was nominated as Commissioner of the Social Security Administration by President George W. Bush on September 14, 2006 and confirmed by the US Senate on February 2, 2007. He was sworn in on February 12, 2007 to serve a six-year term.[2]
[edit] Poetry
In the June/July 2010 issue[3] of First Things magazine, Astrue was profiled by poet Paul Mariani, who revealed him as the personage behind the pseudonym and anagram A. M. Juster, the poet and translator associated with New Formalism.
As Juster, Astrue has published a book of Petrarch translations, a translation of The Satires of Horace (University of Pennsylvania Press, 2008) , Longing for Laura (Birch Brook Press, 2001), and a book of original poetry, The Secret Language of Women (University of Evansville 2003).[4] Juster was also the first moderator for Eratosphere, the largest on-line site for formal poetry.
http://www.poemhunter.com/am-juster/
Long Strange Trips
The flower children gone to seed
Bake brownies for the PTA
And give to liberals in need.
Their ponytails display some gray
And nothing tie-dyed ever fits
Despite the tofu and sorbet.
Now they are mocked as "hippie-crits"
By free-range children who refuse
To heed their parents' tired views
On love and peace and endless summer.
What a bummer.
AM Juster
Cancer Prayer
Dear Lord,
Please flood her nerves with sedatives
and keep her strong enough to crack a smile
so disbelieving friends and relatives
can temporarily sustain denial.
Please smite that intern in oncology
who craves approval from department heads
Please ease her urge to vomit; let there be
kind but flirtatious men in nearby beds.
Given her hair, consider amnesty
for sins of vanity; make mirrors vanish.
Surround her with forgiving family
and nurses not too numb to cry. Please banish
trite consolations; take her in one swift
and gentle motion as your final gift.
http://www.nytimes.com/2010/07/11/us/politics/11benefits.html
Lawmakers Defend Social Security’s Chief Actuary in Clash With Commissioner
By ROBERT PEAR
Published: July 10, 2010
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In interviews and in letters to the administration, lawmakers said they relied on the actuary, Stephen C. Goss, for objective analysis of proposals to change Social Security. And they made clear that he should not be reassigned or demoted as Congress prepared for a re-examination of the program, now celebrating its 75th anniversary.
Two Congressional committees are scheduled to hold hearings on Social Security this week.
As chief actuary, Mr. Goss helps write the annual trustees’ reports on the solvency of Social Security, which pays $700 billion a year in benefits to 53 million people.
The reports, filled with facts and figures from Mr. Goss’s office, are the starting point for debate on the program and its financial problems.
Mr. Goss’s responsibilities have suddenly increased. Leaders of a presidential commission seeking ways to reduce the federal budget deficit said they would rely exclusively on his estimates to measure the financial effects of proposals to overhaul Social Security.
Lawmakers said they had learned of tensions between Mr. Goss, a civil servant who has worked at Social Security for 37 years, and Michael J. Astrue, the commissioner of Social Security, who was appointed by President George W. Bush to a six-year term that ends on Jan. 19, 2013.
People close to Mr. Goss and Mr. Astrue said the disagreements involved personal chemistry, Social Security policy and the technical quality of Mr. Goss’s work on disability programs — not political ideology.
Relations have been strained since late 2008, when the two men clashed over the scope of the actuary’s independence. Basically, aides said, the commissioner views Mr. Goss as a conscientious employee and agrees that he is free to make calculations and use data as he sees fit.
But, they said, in an effort to keep the agency out of politics, Mr. Astrue has sometimes tried to limit what Mr. Goss can say publicly about Social Security, and Mr. Goss has sometimes bridled at the restraints.
By expressing confidence in Mr. Goss, lawmakers said, they hope to protect him.
Representative Earl Pomeroy, a Democrat from North Dakota and chairman of the Ways and Means Subcommittee on Social Security, said: “Steve Goss personifies the meaning of public service. He is viewed broadly in the halls of Congress as a vital asset — a trustworthy source for confidential and honest analysis on which Congress relies to make sound policy decisions.
“While the recession has had devastating effects on other sources of retirement income, like private savings, investments and employer-provided pensions, Social Security remains strong,” Mr. Pomeroy said, in part because lawmakers have relied on Mr. Goss’s projections.
Senator Max Baucus, a Montana Democrat and chairman of the Finance Committee, said: “The Social Security actuary plays the critical role of providing the real numbers and straight facts about the program and its trust fund, which is why it’s so critical for the actuary to be independent. For more than 30 years, Mr. Goss has produced valuable work trusted by members of Congress on both sides of the aisle.”
Representative David R. Obey, a Wisconsin Democrat and chairman of the House Appropriations Committee, said he shared that view.
In an interview, Mr. Goss said: “My goal is to maintain the absolute independence and integrity of the actuary’s office. We don’t countenance any influence of any type on our assumptions or our prognostications. Our estimates may not always be right, but they will never be biased.”
Mr. Astrue has expressed reservations about Mr. Goss’s performance in annual evaluations that could be used to justify action against him, lawmakers said.
The commissioner has complained, on occasion, of insubordinate conduct by Mr. Goss, who insists that he is simply trying to preserve the independence and integrity of the actuary’s office.
Mark Lassiter, a spokesman for Social Security, said he could not discuss confidential personnel matters. In a written statement, he said, “Everyone, including the commissioner, appreciates the work Steve and his office do for the agency.”
Like partners in a bad marriage, Mr. Goss and Mr. Astrue may be stuck with each other for a while. Under federal law, the chief actuary has an unusual degree of autonomy. The law says he shall perform his duties “in accordance with professional standards of actuarial independence” and can be removed from office “only for cause.”
The commissioner can be removed before his term ends only if the president finds “neglect of duty or malfeasance in office.”
The guarantees have never been tested. The degree of White House authority over the agency is also unclear, even to some government lawyers.
Actuaries often run into difficulty because they can deliver an unwelcome analysis that carries great weight.
In 2004, a furor erupted when lawmakers learned that a Bush administration official had threatened to fire the chief Medicare actuary if he provided Democrats with details of his cost estimates for a new prescription drug benefit.
Besides measuring the solvency of Social Security, Mr. Goss analyzes the cost of regulations developed by the Social Security Administration and legislative proposals drafted by the White House and members of Congress.
Two Congressional committees are scheduled to hold hearings on Social Security this week.
As chief actuary, Mr. Goss helps write the annual trustees’ reports on the solvency of Social Security, which pays $700 billion a year in benefits to 53 million people.
The reports, filled with facts and figures from Mr. Goss’s office, are the starting point for debate on the program and its financial problems.
Mr. Goss’s responsibilities have suddenly increased. Leaders of a presidential commission seeking ways to reduce the federal budget deficit said they would rely exclusively on his estimates to measure the financial effects of proposals to overhaul Social Security.
Lawmakers said they had learned of tensions between Mr. Goss, a civil servant who has worked at Social Security for 37 years, and Michael J. Astrue, the commissioner of Social Security, who was appointed by President George W. Bush to a six-year term that ends on Jan. 19, 2013.
People close to Mr. Goss and Mr. Astrue said the disagreements involved personal chemistry, Social Security policy and the technical quality of Mr. Goss’s work on disability programs — not political ideology.
Relations have been strained since late 2008, when the two men clashed over the scope of the actuary’s independence. Basically, aides said, the commissioner views Mr. Goss as a conscientious employee and agrees that he is free to make calculations and use data as he sees fit.
But, they said, in an effort to keep the agency out of politics, Mr. Astrue has sometimes tried to limit what Mr. Goss can say publicly about Social Security, and Mr. Goss has sometimes bridled at the restraints.
By expressing confidence in Mr. Goss, lawmakers said, they hope to protect him.
Representative Earl Pomeroy, a Democrat from North Dakota and chairman of the Ways and Means Subcommittee on Social Security, said: “Steve Goss personifies the meaning of public service. He is viewed broadly in the halls of Congress as a vital asset — a trustworthy source for confidential and honest analysis on which Congress relies to make sound policy decisions.
“While the recession has had devastating effects on other sources of retirement income, like private savings, investments and employer-provided pensions, Social Security remains strong,” Mr. Pomeroy said, in part because lawmakers have relied on Mr. Goss’s projections.
Senator Max Baucus, a Montana Democrat and chairman of the Finance Committee, said: “The Social Security actuary plays the critical role of providing the real numbers and straight facts about the program and its trust fund, which is why it’s so critical for the actuary to be independent. For more than 30 years, Mr. Goss has produced valuable work trusted by members of Congress on both sides of the aisle.”
Representative David R. Obey, a Wisconsin Democrat and chairman of the House Appropriations Committee, said he shared that view.
In an interview, Mr. Goss said: “My goal is to maintain the absolute independence and integrity of the actuary’s office. We don’t countenance any influence of any type on our assumptions or our prognostications. Our estimates may not always be right, but they will never be biased.”
Mr. Astrue has expressed reservations about Mr. Goss’s performance in annual evaluations that could be used to justify action against him, lawmakers said.
The commissioner has complained, on occasion, of insubordinate conduct by Mr. Goss, who insists that he is simply trying to preserve the independence and integrity of the actuary’s office.
Mark Lassiter, a spokesman for Social Security, said he could not discuss confidential personnel matters. In a written statement, he said, “Everyone, including the commissioner, appreciates the work Steve and his office do for the agency.”
Like partners in a bad marriage, Mr. Goss and Mr. Astrue may be stuck with each other for a while. Under federal law, the chief actuary has an unusual degree of autonomy. The law says he shall perform his duties “in accordance with professional standards of actuarial independence” and can be removed from office “only for cause.”
The commissioner can be removed before his term ends only if the president finds “neglect of duty or malfeasance in office.”
The guarantees have never been tested. The degree of White House authority over the agency is also unclear, even to some government lawyers.
Actuaries often run into difficulty because they can deliver an unwelcome analysis that carries great weight.
In 2004, a furor erupted when lawmakers learned that a Bush administration official had threatened to fire the chief Medicare actuary if he provided Democrats with details of his cost estimates for a new prescription drug benefit.
Besides measuring the solvency of Social Security, Mr. Goss analyzes the cost of regulations developed by the Social Security Administration and legislative proposals drafted by the White House and members of Congress.
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