Social Security recently released its proposed budget for 2016. Part of the budget discusses certain legislative proposals in 2016. A closer look at some of these more interesting proposals may give us some indication of what changes may be coming for Social Security in the near future.
Social Security benefits to same-sex couples:
Currently, Social Security provides marriage-related benefits to same-sex couples that reside in a state where same-sex marriage is legal as indicated by the Social Security Act, but is prevented from paying benefits to a same-sex couple that is legally married in one state, but lives in another state. There are some ideas about changing these current rules.
More Reviews Of Those On Disability to Occur:
Social Security has increased its effort to do more continuing disability reviews (CDRs) and SSI re-determinations. This is a practice where Social Security takes a second look at those who are already receiving disability benefits to ensure these people are still disabled and are deserving of benefits. Social Security was given additional appropriations for such matters through 2021, but the funding has not kept up with the agency’s goals to attempt to limit the amount of improper payments that are issued to people who are no longer disabled. This proposal is sure to get a closer look as Social Security estimated that it can recoup up to $9 for every $1 spent on conducting CDRs.
Go After Fraudsters With A Vengeance:
You may have heard of more stories where people have been tried, convicted and sentenced to prison time for their attempts to defraud Social Security in collecting unwarranted Social Security disability payments. In addition to more enforcement, Social Security is proposing fraud facilitators to be liable for overpayments and allow the agency to collect these overpayments that were improperly paid to third parties such as representatives.
Worker’s Compensation Reporting:
When a Social Security disability applicant is proven to be disabled and has also received worker’s compensation payments, Social Security needs that information to offset any potential Social Security disability benefits. Because both worker’s compensation and Social Security disability are public disability programs, laws state that a combination of these benefits cannot be more than 80 percent of what the recipient’s average earnings were when they were employed. Currently, Social Security relies on the person receiving benefits to provide this information, which can delay the processing of claims and payments. The proposal would require states, local governments and private insurance companies to provide this information to Social Security.
Reallocating Funds From Retirement Trust Fund:
This is a proposal that Democrats have suggested in Congress to sustain the Disability Insurance trust fund, which could see a shortage that would prevent Social Security from making full payments to disabled workers as early as 2016. This particular proposal recommends a five-year reallocation of payroll taxes from the retirement trust fund to the disability trust fund. The retirement trust fund is in a bit better shape right now than the disability trust fund and similar types of transfers have occurred many times in the past to sustain the two programs. Unfortunately, the Republicans in Congress have already blocked any proposal to complete these transfers and it remains to be seen if they will eventually come to their senses before it becomes too late.
As you can see, Social Security has a lot of proposals on the table for Congress to consider as part of its 2016 budget. Obviously not all of these proposals will be enacted or even considered, but some should get some strong consideration and even possibly garner some bipartisan support – dare we say it.
All those with an ambitious nature may click here to learn all of Social Security’s proposals in 2016.
