New rules proposed on garnishing federal benefits
Posted by webmaster on April 19, 2010 · Leave a Comment
From the Associated Press
“The Obama administration on Wednesday proposed rules aimed at closing a legal loophole that debt collectors have used to seize Social Security and veterans’ benefits from bank accounts. …
Federal law has long protected Social Security and veterans benefits from most creditors, with a few exceptions for child support, alimony, unpaid federal taxes and debts to other federal agencies. But creditors have been seizing the payments anyway by getting court orders to freeze and garnish bank accounts that receive the federal benefits through direct deposit. …
Under the proposed rules, banks that receive garnishment orders for their customers’ accounts would be required to review the accounts to determine whether they received deposits of federal benefits in the past 60 days, and in what amount.
The goal is to give financial institutions clear rules concerning garnishment orders and a safe harbor against liability, a Treasury official said Wednesday.”
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Social Security Adds 38 New Compassionate Allowance Conditions
Posted by webmaster on March 26, 2010 · Leave a Comment
This article is a press release of the Social Security Administration from March 11, 2010. The Compassionate Allowances are diseases and conditions that easily identify you as being disabled, and enable your attorney to apply for critical case status. In this way, the amount of time that your case has to go through the administrative process can be shortened drastically.
“Michael J. Astrue, Commissioner of Social Security, today announced that the agency is adding 38 more conditions to its list of Compassionate Allowances. This is the first expansion since the original list of 50 conditions – 25 rare diseases and 25 cancers – was announced in October 2008. The new conditions range from adult brain disorders to rare diseases that primarily affect children.
‘The addition of these new conditions expands the scope of Compassionate Allowances to a broader subgroup of conditions like early-onset Alzheimer’s disease,’ Commissioner Astrue said. ‘The expansion we are announcing today means tens of thousands of Americans with devastating disabilities will now get approved for benefits in a matter of days rather than months and years.’
Compassionate Allowances are a way of quickly identifying diseases and other medical conditions that clearly qualify for Social Security and Supplemental Security Income disability benefits. It allows the agency to electronically target and make speedy decisions for the most obviously disabled individuals. In developing the expanded list of conditions, Social Security held public hearings and worked closely with the National Institutes of Health, the Alzheimer’s Association, the National Organization for Rare Disorders, and other groups.
‘The diagnosis of Alzheimer’s indicates significant cognitive impairment that interferes with daily living activities, including the ability to work,’ said Harry Johns, President and CEO of the Alzheimer’s Association. ‘Now, individuals who are dealing with the enormous challenges of Alzheimer’s won’t also have to endure the financial and emotional toll of a long disability decision process.’
‘We will continue to hold hearings and look for other diseases and conditions that can be added to our list of Compassionate Allowances,’ Commissioner Astrue said. ‘There can be no higher priority than getting disability benefits quickly to those Americans with these severe and life-threatening conditions.’
Social Security will begin electronically identifying these 38 new conditions March 1.”
For a list of Compassionate Allowances disorders and conditions see http://www.ssa.gov/pressoffice/pr/cal021110-pr.html.
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Social Security Hearings Backlog Falls to Lowest Level Since 2005
Posted by webmaster on March 19, 2010 · Leave a Comment
The Commissioner of Social Security announced in a news release from the Social Security Administration on March 2, 2010 that the number of pending disability hearings has dropped almost 71,000 cases from December 2008 to 697, 437, the lowest amount of cases pending since 2005. The good news that comes along with this announcement is that the average processing time has also decreased to 442 days from 514 days at the end of 2008.
“We have decreased the number of hearings pending by almost 10 percent over the last 14 months and cut the time it takes to make a decision by nearly two and a half months. This remarkable progress shows our backlog reduction plan is working,” Commissioner Michael J. Astrue said. “With ongoing support from the President and Congress as well as the efforts of our hardworking employees, I am confident the hearings backlog will continue to diminish.”
Hiring more support staff and more Administrative Law Judges to oversee cases, has increased the number of cases that can be seen each year. The charts below show a national ranking from September of 2009 with the amount of average processing time for most major cities. Nashville is 97th on this list with an average processing time of 501 days, just above the national average. On behalf of our clients in need we can only hope that the Social Security Administration continues in these efforts.

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Social Security Sending Corrected Benefit Notices
Posted by webmaster on December 30, 2009 · Leave a Comment
The Social Security Administration earlier this month mailed notices that contained incorrect January 2010 payment dates. These erroneous notices went to about 6 million beneficiaries who receive their payments on either the second, third, or fourth Wednesday of each month, and are part of the annual benefit notices that go to 52 million Social Security beneficiaries. In the notice the payment date is incorrectly shown as one week before what the actual date of payment will be. The other information in the notice, including the payment amount, is correct. Social Security is sending a letter explaining the error to beneficiaries who received the incorrect one as soon as possible.
“We apologize for the inconvenience and confusion these incorrect notices will cause,” said Michael J. Astrue, Commissioner of Social Security. “The problem was caused by an unfortunate human error. We are correcting the misinformation as quickly as possible, and we are reviewing our processes closely to prevent this type of mistake from happening in the future. People receiving Social Security benefits in January 2010 should know that their payment will arrive on the same payment day that it has arrived in the past.”
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Social Security and Supplemental Security Income Benefits Won’t Automatically Increase in 2010.
Posted by webmaster on December 30, 2009 · Leave a Comment
With consumer prices down over the past year, monthly Social Security and Supplemental Security Income benefits for more than 57 million Americans will not automatically increase in 2010. This will be the first year without an automatic Cost-of-Living Adjustment (COLA) since they went into effect in 1975.
“Social Security is doing its job helping Americans maintain their standard of living,” Michael J. Astrue, Commissioner of Social Security said. “Last year when consumer prices spiked, largely as a result of higher gas prices, beneficiaries received a 5.8 percent COLA, the largest increase since 1982. This year, in light of the human need, we need to support President Obama’s call for us to make another $250 recovery payment for 57 million Americans.”
The Social Security Act provides that Social Security and Supplemental Security Income benefits increase automatically each year if there is an increase in the Bureau of Labor Statistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year to the third quarter of the current year. This year there was no increase in the CPI-W from the third quarter of 2008 to the third quarter of 2009. In addition, because there was no increase in the CPI-W this year, under the law the starting point for determinations regarding a possible 2011 COLA will remain the third quarter of 2008.
Some other changes that would normally take effect in January 2010 based on the increase in average wages also will not take effect, even though average wages did increase. Since there is no COLA, the statute prohibits an increase in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2010. The attached fact sheet provides more information on 2010 Social Security changes.
Information about Medicare changes for 2010, when available, will be found at www.Medicare.gov. The Department of Health and Human Services has not yet announced if there will be any Medicare premium changes for 2010. Should there be an increase in the Medicare Part B premium, the law contains a “hold harmless” provision that protects about 93 percent of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries newly entitled to Part B in 2010. On September 24th, the House passed legislation by 406-18 that would, on a fully paid-for basis, prevent abnormally large premium increases. The President is calling on the Senate to enact this legislation before it becomes too late for the Social Security Administration to update its computer systems to implement this needed change.
For additional information about the 2010 COLA, go to www.socialsecurity.gov/cola.
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