Social Security Administration will have 'significant' cuts. What does this mean for you?
The ax has fallen at the Social Security Administration.
A massive reorganization is taking place at the agency that will result in “significant workforce reductions,” SSA said in a release. Offices and employees doing work not specifically mandated by law may be first on the chopping block, it warned.
It’s unclear how the 72.5 million Social Security beneficiaries, which include retirees and children who receive retirement and disability benefits, will be affected, but some politicians, policy experts and Social Security consultants say Americans may face a slowdown in the processing of benefits applications and longer waits for SSA help.
“Firing half of all Social Security workers will guarantee that seniors will stop seeing their earned benefits arrive on time and in full,”said Senate Finance Committee Ranking Member Ron Wyden, (D-Oregon), in a statement. "A plan like this will result in field office closures that will hit seniors in rural communities the hardest."
How massive will Social Security personnel cuts be?
SSA said it set a staffing target of 50,000, down from the approximately 57,000 employees at the agency now. "Rumor of a 50% reduction is false," it said, referring to earlier reports saying up to half the staff could be cut.
The agency expects most of the reduction will result from retirements, buyouts and resignations. The rest may come from layoffs that could include abolishment of organizations and positions, or reassignments to a different job within the agency, it said.
Agencies are required to submit their layoff plans to the Office of Personnel Management (OPM) by March 13. No date has been set for when job reductions might begin after OPM approves the plan.
The number of regional offices will be slashed to four from a "no longer sustainable" 10, SSA said. At headquarters, there will be seven Deputy Commissioner level organizations, it said.
Before SSA's reorganization announcement on Friday, office leases for Social Security sites across the country were already being terminated, according to the Department of Government Efficiency website. The site shows rental agreements for dozens of Social Security locations across Arkansas, Texas, Louisiana, Florida, Kentucky, North Carolina, and other states have been or will be ended.
What’s SSA saying to employees?
The agency said workers may involuntarily be reassigned to mission critical direct service positions (e.g., field offices, teleservice centers, processing centers) from non-mission critical positions and require retraining.
If employees would rather leave, SSA’s offering early retirement and voluntary buyouts, if eligible, ranging from $15,000 to $25,000. Those who want a voluntary separation must opt in by March 14 and those who want to retire early must opt in between March 1 and Dec. 31.
Workers can also take a voluntary reassignment “to a mission critical position” by expressing their interest by March 14.
Why is the Social Security Administration cutting jobs?
The move is part of President Donald Trump’s promise to downsize the federal government. Other agencies that have already seen cutbacks include the IRS, Centers for Disease Control, Department of Health and Human Services, and National Institutes of Health.
"These steps prioritize customer service by streamlining redundant layers of management, reducing non-mission critical work, and potential reassignment of employees to customer service positions," SSA said.
More reductions may be coming, too. SSA said it will keep "looking for efficiencies and other opportunities to reduce costs across all spending categories, including information technology and contractor spending."
How can Americans cope with a downsized agency?
Chuck Czajka, a certified Social Security claiming strategist with Macro Money Concepts in Stuart, Florida says:
- Have patience. With a reduced staff, reaching out to the administration will likely result in longer wait times and delays.
- Create an online profile. If you haven’t yet created an online SSA account, now may be the best time to do so. An online account can help you estimate future benefits, manage benefits you already receive or give you a status update on your application.
- Apply for benefits as early as possible. Cuts to the SSA may impact the amount of time it takes to have your benefits approved. You can apply for benefits up to four months before you expect to receive them. Applying as early as possible can help ensure they’re available when needed.
- Seek assistance from a Social Security expert. If you’re uncomfortable with applying or communicating with the SSA on your own, seek assistance from a Social Security expert who can help you. They should be able to answer many of your questions and limit your need for help from the SSA.
The story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at Paste BN. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.