The Social Security Administration has filed with the White House's Office of Management and Budget to expand use of personal identification numbers created online to access telephone services that did not previously require them.

"It's Groundhog Day at the Social Security Administration," Nancy Altman, president of Social Security Works, told ThinkAdvisor Wednesday in an email. "Earlier this year, the Trump administration abruptly announced a plan to force millions more Americans into overcrowded, overburdened field offices. Faced with negative press coverage and public outrage, they said they would reverse course. But now, this terrible policy is back."

The latest version of the policy "would harm beneficiaries who want to do basic tasks, such as changing their address," Altman said. "They would no longer be allowed to do these tasks over the phone. Instead, they would have to either complete a complicated, multi-step process on the Social Security website, or travel to a field office."

SSA notes in the filing that it will require beneficiaries to use a Security Authentication PIN for these additional telephone services:

  • Generating a benefit verification letter
  • Obtaining a tax statement or replacement Form 1099
  • Change of address
  • Request for claims status

Due to the need "to mitigate fraud for further telephone transactions," the agency told OMB that it's planning to increase the use of the SAP process by Aug. 18, and requests OMB approval by Aug. 15.

The new requirements would result in 3.4 million more people visiting Social Security field offices each year, AARP reported, citing an SSA filing.

The change comes "at a time when field office appointments can take weeks to schedule," added Nancy LeaMond, AARP's executive vice president and chief advocacy officer.

LeaMond sent a letter to SSA Tuesday detailing AARP's concerns and posed further questions about how the policy would be implemented.

"AARP supports efforts to strengthen fraud prevention and identity verification," LeaMond said.

However, AARP is concerned that SSA’s new Security Authentication PIN process, "particularly its expansion to additional telephone services, could create new barriers for older adults who rely on telephone access to manage their Social Security benefits. Our experience shows that the option to verify identity online will be a challenge for the one in four older adults who report never going online," LeaMond said.

"Creating an online my Social Security account can be a complicated process for people who are uncomfortable with online systems or do not have reliable internet access," LeaMond continued. "The in-person option is particularly difficult for seniors living in rural areas or with mobility challenges, as well as those who lack reliable transportation. One recent study found nearly a quarter of seniors live more than an hour’s drive round-trip from their nearest field office."

No Opportunity for Public Comment

The new policy "is yet another example of the leadership at Trump's Social Security Administration making critical changes to its operations in the dead of the night with no regard for the needs and capabilities of its customers," added Dan Adcock, director of government relations and policy at the National Committee to Preserve Social Security and Medicare, in an email.

"Earlier this year, when SSA proposed virtually eliminating the use of its phone system for financial transactions, the outcry from the public forced the agency to pull back," Adcock said. "Unfortunately, those misguided policy changes are back again, but this time the agency is using a procedure that allows it to make the changes without an opportunity for the public to weigh in or object, by declaring an emergency need to fight 'fraud,' with absolutely no evidence that significant fraud exists." 

The actual fraud rate on SSA's phone lines "is statistically infinitesimal," Adcock continued. SSA "is creating an insurmountable obstacle for millions of older Americans and people with disabilities who lack internet access (or competency navigating online) by requiring them to have a 'Security Authentication PIN.' This PIN now will be needed to make simple transactions, such as generating a benefit verification letter, requesting a tax statement, changing an address or inquiring about the status of a claim — all of which can currently be done by phone."

Field Offices Hours Away

In many cases, added Altman, "these field offices are hours away. The beneficiaries likely to have the most trouble with the website — those who are oldest, have severe disabilities, or lack a support system — are also those who will have the most trouble traveling to a field office."

Further, "those who are able to use the website will be more at risk of fraud (which largely occurs online) than they are over the phones (where it is extremely rare)," Altman said.

There are only two explanations for this newly proposed policy, Altman continued. "Either the Trump administration is utterly incompetent and lacks any understanding of the population Social Security serves. Or, they are doing this intentionally, and trying to cause the whole Social Security system to collapse."

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