Retirement Relief: Social Security Chief Takes Action to Fix the Crisis!

Retirement Relief: Social Security Chief Takes Action to Fix the Crisis!

The Social Security program, which supports millions of retirees and disabled people, is facing a lot of challenges. Budget cuts and more people claiming benefits have led to poor customer service.

Martin O’Malley, the head of the Social Security Administration (SSA), called it the worst service level in the program’s 89-year history.

At a hearing on November 20, O’Malley revealed shocking facts: in 2023, 30,000 people died while waiting for their disability benefits to be approved.

He said the issue is mainly because of underfunding. Despite repeated warnings, no action has been taken to improve the budget for hiring staff or upgrading outdated technology.

The situation worsened this July when the SSA’s budget was slashed by half a billion dollars—the biggest cut ever. This reduced staffing to its lowest in 50 years, even as the number of people relying on Social Security hit an all-time high.

O’Malley stressed that this affects retirees who have worked hard all their lives, saying, “We cannot stand back and watch this agency collapse. Social Security is a sacred promise to the people of the United States.”

Budget Challenges and Proposed Fixes

The SSA has a $2.7 trillion reserve, but only 0.3% of it is allowed for administrative costs, and most of that goes toward paying staff.

O’Malley proposed increasing this to 1.2% to address the growing workload. He also requested a one-time investment of $5 billion to modernize outdated technology and an additional $600 million yearly for operating expenses.

Rep. Rosa DeLauro supported O’Malley, saying that budget cuts to SSA indirectly reduce Social Security benefits. She explained that without enough staff, people face long delays or cannot access their benefits at all.

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Some Republican lawmakers opposed increasing the SSA budget, pointing out that many staff work from home for two days a week. O’Malley countered this by highlighting a 6% rise in productivity and noting that many claimants prefer handling their cases over the phone.

The Bigger Problem: Future Solvency

Retirement Relief: Social Security Chief Takes Action to Fix the Crisis!

Experts warn that Social Security faces an even bigger issue: its trust fund may run out by 2035. If this happens, benefits could be cut by 20%. Karl Polzer from the Center on Capital and Social Equity explained that since 2021, the program has been paying out more money than it collects.

The SSA has set a target to reduce the average waiting time for disability claims from 243 days to 215 days. However, in states like Georgia, claimants wait as long as 14 months, showing that more action is needed.

O’Malley’s Final Plea

As O’Malley stepped down from his position to pursue a role in the Democratic National Convention, he expressed deep concern about the future of the agency. He warned about the risk of outdated IT systems failing or being hacked.

In his final appeal to lawmakers, he urged them to restore funding, saying, “I know you’ve heard the cries of people waiting for help. It’s time to act.”

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