THE Social Security Administration has spoken out amid the ongoing government shutdown that started earlier this week.
Lawmakers from the Democratic and Republican parties have yet to agree on funding for some specific legislation.
The Social Security Administration has spoken out about the government shutdown (stock image)[/caption]
Since a consensus was not reached by the October 1 deadline, the shutdown has begun until the situation is resolved.
This is the first time the federal government has shut down since 2018, when the 115th Congress and President Trump couldn’t agree on bill appropriations for the 2019 tax year.
Government shutdowns have significant impact on federal agencies and their workers, including the Social Security Administration (SSA).
Still, it assured recipients in a statement that payments would be made on time this week and as the shutdown continues.
“We want you to know that during the federal government shutdown, payments to all people who currently receive Social Security benefits and Supplemental Security Income (SSI) will continue with no change in payment dates,” the SSA wrote.
“You will still receive your payments on time.”
NOT TO WORRY
That means the SSI distribution on October 1 and and upcoming Social Security distribution on October 8 will be sent as normal.
The SSA further encouraged its over 74 million recipients to create a “my Social Security” online account on the federal agency’s website to access essential materials.
This includes benefits estimates, proof of income letters, applications for benefits, requests for replacement Social Security cards, Medicare cards, and more.
While payments from the SSA remain on-time and unaffected by the federal government shutdown, local offices will have “reduced services” still.
“Please be aware that we may not be able to assist with all in-person service requests at this time,” the statement continued.
“For example, we cannot provide proof of benefits letters, or update or correct earnings records. These in-person services will resume when the federal government is operating normally.”
There are still a number of other services that SSA offices are able to help recipients with during the shutdown.
They include applying for benefits, requesting an appeal, changing addresses or direct deposit information, reporting a death, verifying or changing citizenship status, replacing lost or missing Social Security payments, obtaining a critical payment, changing a representative payee, making a change to living arrangement status or income status (SSI recipients), or obtaining a new Social Security card.
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.
But, why does the SSA stay open during a government shutdown, even though it’s a federal agency?
CRUCIAL CASH
The SSA is considered an essential service to Americans, and is funded through mandatory government spending as a result.
Medicare, Medicaid, and Veterans Affairs distributions are still going out along with Social Security, for example, because they’re considered mandatory spending.
Other programs require renewals for more discretionary money.
It is true, however, that SSA staffing is reduced, as the federal agency reported in a document from the Office of Finance and Management that it would furlough around 6,100 of its 52,000 staff, per The Hill.
That means they’re suspended from their job without pay during the federal government shutdown.
According to a recent memo from the White House’s Office of Management and Budget (OMB), the furloughed staff could be suspended indefinitely, as it encouraged agencies like the SSA to “use this as an opportunity to consider reduction in force (RIF) notices for all employees in programs, projects, or activities.”
Americans should also remain aware of other ongoing changes with Social Security.
As of September 30, paper checks have been discontinued, meaning recipients must sign up for a form of electronic payment to avoid delays.
There’s currently a bipartisan effort happening from two senators to prevent the SSA from running out of money in the coming years.
