Social Security changes may affect service, benefits: experts

Experts are raising concerns that recent changes within the Social Security Administration could lead to disruptions in customer service and potential delays in benefit payments. These adjustments, which may include staffing shifts, policy updates, or administrative restructuring, could affect how quickly and efficiently services are delivered to the public. Beneficiaries are advised to stay informed and prepared for possible impacts as the agency navigates these transitions, which may influence overall service quality and payment timelines.

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Rapid changes initiated by the Trump administration’s Department of Government Efficiency at the Social Security Administration have sparked concerns about reduced accessibility for beneficiaries. Some analysts fear that modernizing the agency’s infrastructure may disrupt the flow of benefit payments.

Jason Fichtner, a former deputy commissioner appointed under President George W. Bush, expressed concern that these updates might interfere with benefit delivery. Fichtner and other specialists have voiced alarm over the agency's recent announcements. Although President Trump has repeatedly promised to safeguard Social Security benefits, the latest developments may make it harder for eligible individuals to obtain them.

Under Trump’s leadership, the SSA has reportedly cut 7,000 jobs and shut down six regional offices, according to an op-ed by Fichtner and Kathleen Romig, a former senior official at the agency who now leads Social Security and disability policy at the Center on Budget and Policy Priorities.

They warned that these reductions could hinder service across multiple channels, including the glitch-prone website, long wait times on the 800 number, and overcrowded field offices. This could create added difficulty for people trying to claim benefits - especially those with disabilities - who might tragically pass away before receiving their entitled support.

In their article, Fichtner and Romig cautioned that the agency is facing a crisis that could jeopardize people’s access to benefits. Fichtner’s concerns grew after hearing that the SSA, under DOGE, intends to migrate tens of millions of lines of COBOL code on a compressed timeline. He warned that altering the software code in haste could negatively impact current benefit recipients, describing it as a serious new concern. Though he agrees the system needs modernization, Fichtner said such large projects usually span years and begin with small-scale pilots to identify potential problems before going nationwide.

He emphasized that the process can’t simply be rushed overnight and must reflect the intricacy of the agency’s responsibilities. Fichtner said his earlier worries focused more on potential service slowdowns rather than interruptions to benefits, but recent developments have changed that. In response to these reports, a spokesperson for the Social Security Administration denied their validity in an email to CNBC.

The White House also issued a statement rejecting the accuracy of the reports. Some policy experts believe DOGE’s emphasis on rooting out fraud may be misdirected. They argue that the agency’s administrative adjustments divert attention from more pressing concerns, such as the looming insolvency of the trust funds that sustain benefit payments.

Romina Boccia of the Cato Institute noted that while DOGE’s aim to improve efficiency is commendable, the measures may not significantly improve the program’s long-term stability. She warned that if DOGE’s changes are reversed later, it could delay much-needed reforms from Congress before the trust fund’s expected depletion in 2033. Boccia described the current unpredictable changes as potentially harmful to broader, more crucial reforms, particularly given the small scale of fraud involved.

The 2024 trustees' report estimates the combined retirement and disability trust funds could run out by 2035, leaving only 83% of benefits payable unless legislative action is taken. They also projected that the retirement trust fund alone may be depleted by 2033, with only 79% of benefits payable, and a new law increasing certain public pension benefits could push these dates forward.

Charles Blahous, a former trustee for Social Security and Medicare, stated that since administrative spending is under 1% of the total budget, it's not the right area to target for meaningful cost savings or efficiency gains. According to Blahous, there simply isn’t enough funding in administration to make a significant fiscal impact.

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Source: cnbc‍