The Social Security Administration has been abolished.
The agency is undergoing a massive reorganization that will result in “significant workforce reductions,” according to a release from SSA. It warned that offices and employees who do work that is not specifically mandated by law could be the first to go.
It’s unclear how the 72.5 million Social Security beneficiaries, including retirees and children receiving retirement and disability benefits, will be affected, but some politicians, policy experts, and Social Security consultants say Americans may see a slowdown in benefit application processing and longer wait times for SSA assistance.
“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 stated that it has set a 50,000-person staffing target, down from the agency’s current workforce of approximately 57,000. “Rumor of a 50% reduction is false,” it said, referring to previous reports that up to half of the staff could be cut.
The agency anticipates that the majority of the reduction will be due to retirements, buyouts, and resignations. The rest could come from layoffs, which could include the abolition of organizations and positions, as well as reassignments to different jobs within the agency, according to the report.
Agencies must submit their layoff plans to the Office of Personnel Management (OPM) by March 13. No date has been set for when job cuts may begin after OPM approves the plan.
The number of regional offices will be reduced to four from a “no longer sustainable” ten, according to SSA. Seven Deputy Commissioner-level organizations will be established at headquarters, according to the statement.
Before the SSA announced its reorganization on Friday, office leases for Social Security sites across the country were already being terminated, according to the Department of Government Efficiency’s website.
The website shows that rental agreements for dozens of Social Security locations in Arkansas, Texas, Louisiana, Florida, Kentucky, North Carolina, and other states have been or will be terminated.
What’s SSA saying to employees?
According to the agency, workers may be involuntarily reassigned from non-mission critical positions to mission critical direct service positions (e.g., field offices, teleservice centers, processing centers) and will need to re-train.
If employees prefer to leave, the Social Security Administration is offering early retirement and voluntary buyouts worth $15,000 to $25,000. Those who want a voluntary separation must opt in by March 14, while those who want to retire early must do so between March 1 and December 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 pledge to shrink the federal government. Other agencies that have already been cut include the IRS, the Centers for Disease Control, the Department of Health and Human Services, and the 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,” according to the SSA.
More reductions may be on the way. The Social Security Administration announced that it is “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.
