THE Social Security Administration has made a u-turn decision on a policy change set to take effect later this month.
It comes after mass backlash from recipients, many of whom would’ve been inconvenienced if the policy was left unadjusted.
Social Security recipients will not have to abide by an August policy (stock image)[/caption]
Originally, the SSA confirmed in a regulatory filing that, starting August 18, millions of Social Security recipients would either have to go online or travel to their nearest field office to get a personal identification number (PIN) for security purposes.
Whether it’s to make address changes, checking claim statuses, or obtaining tax forms, the PIN would then be a required step moving forward, according to the filing.
The SSA even estimated about 3.4 million additional visits to SSA field offices annually to manage and create PINs.
Concerns were immediately noted last month by experts like Kathleen Romig, director of Social Security and disability policy at the Center on Budget and Policy Priorities (CBPP).
“This will create a significant burden, particularly for those who live in rural areas or have transportation or mobility difficulties,” Romig argued in a blog post.
“The Trump administration is rushing these changes with almost no public notice or feedback.”
CBPP findings also showed that most Social Security recipients live at least an hour’s drive round-trip from a SSA field office.
On Tuesday, the American Association of Retired Persons (AARP) sent a formal letter to SSA Commissioner Frank Bisignano, making a similar argument.
AARP noted in the letter that seniors and those with disabilities would have a challenging time, and that many lack access to a computer or internet, making an in-person visit required.
Now, the SSA has said that Social Security recipients are not required to visit a field office and can choose not to use a PIN.
“The intention of the expanded SAP feature in the filing was always to be optional,” an SSA spokesperson told Axios.
“The purpose of the feature is to improve the customer experience by providing a convenient and secure method for callers to verify their identity.”
“If a caller does not have a ‘my Social Security account’ or chooses not to use the SAP feature, the customer experience will be no different than it is today, and they will continue to use the existing authentication methods to verify their identity,” they added.
Still, the regulatory filing has not yet been amended to note this, but the SSA spokesperson confirmed to the publication that it would be making that action so the “optional” aspect is clear.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here’s how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
- 401(k) Plans
- A 401(k) is a retirement account offered through employers, where contributions are tax-deferred.
- Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings.
- Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority.
- IRAs
- An Individual Retirement Account (IRA) offers another avenue for retirement savings.
- Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices.
- Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.
FRAUD FOCUS
With the PIN, the SSA is attempting to crack down on fraud, even though organizations like the CBPP argue the federal agency has yet to provide substantial evidence of the fraud it seeks to combat.
This spring, the SSA also rolled out anti-fraud software to help flag potential cases over the phone, per CBS News.
About 4.5 million phone-based claims come in yearly to the SSA, with about only about 70,000 cited for possible fraudulent activity.
Should an original proposed policy taking away identity verification over the phone that the federal agency also u-turned on in April have been put in place, about six million seniors would’ve had to go into field offices.
MONEY MOVE
The theme of fraud prevention also continues through the direct deposit change taking effect starting September 30.
It comes out of an executive order from The White House this summer that confirmed the US Department of the Treasury would no longer be sending out paper checks to Social Security recipients.
The White House said the mandate was not only a way to prevent fraud but also save money, as about $750 million is spent on paper checks each year.
Social Security recipients must sign up for direct deposit or another form of electronic payment by the deadline or they risk delaying distributions.
About 1.9 million additional SSA field office visits are expected with the direct deposit change.
The SSA commissioner also fired back at Democratic senators who recently criticized the federal agency over alleged “mismanagement” and “record backlogs.”
Americans are also at risk of having Social Security checks cut by more than $18,000.
