According to a report issued by the Senate Appropriations Committee the possible sequester cuts would have significant impact on the Social Security Administration (SSA) and the processing of disability claims. The sequestration is set to occur in seven days if Congress does not act. Across the federal government, $85 million in automatic spending cuts will begin.
The Senate report states that the SSA would be forced to reduce its staff by about 5,000 employees. The SSA would also need to furlough their entire staff, 65,000 employees, for a six week period of time to absorb the drastic budget cuts. A furlough is an unpaid leave.
It is also expected that 15,000 state employees at the Disability Determination Services (DDS) agencies will also be furloughed. The DDS agencies process disability applications and Request for Reconsideration appeals for the SSA.
Due to the decreased SSA and DDS staff, average processing times of claims will increase. Currently the average processing time for an initial application is 111 days. This is expected to climb to 180 days which will increase the number of backlogged claims these offices are already experiencing.
For more information on the how the pending sequestration will affect the federal government and the SSA, check out the Federal Times article “Report: Federal furloughs, downsizing if sequestration cuts happen.”
