Latest news with #LelandDudek
Yahoo
26-05-2025
- Business
- Yahoo
Former Social Security head says media ‘hysteria' false, Trump team paid $14.8B in long-delayed benefits
As Americans got increasingly uneasy about the future of the Social Security program, former acting commissioner Leland Dudek wrote an opinion piece in the New York Post in an attempt to soothe some of these concerns. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'In these first 100 days, we paid over $14.8 billion in long-delayed retroactive benefits to 2.2 million Americans under the Social Security Fairness Act,' Dudek wrote in his department's defense, in the piece published May 6. The new head of the organization, Frank Bisignano, was sworn in the following day and said, 'President Trump has been clear about Social Security. We will protect it.' Taking a page out of the commander-in-chief's playbook, Dudek also took aim at journalists. 'Some in the media have erroneously reported that our optimization effort includes terminating 12% or more of our workforce,' he said in the piece, titled 'Don't trust the media's Social Security hysteria.' 'Not true: In fact, the number of SSA employees involuntarily removed from federal service so far this fiscal year amounts to one-tenth of one percent of our total employees, in line with the prior year, under the previous administration.' He also said no local SSA field offices are being permanently closed and listed other accomplishments like identifying over $1 billion in savings. However, earlier statements from the administration itself contradict some of Dudek's op-ed. The agency's incoherent communication may exacerbate fears about the future of America's retirement safety net. During a March meeting, officials revealed that panicked Americans were claiming benefits earlier, paying the SSA $100 for certified copies of earnings records, and making more visits to field offices and calls to the agency. This came after news of multiple changes at the agency and President Trump and Elon Musk claiming there was widespread fraud. The SSA is also expected to run out of funds by 2035, at which point only around 80% of full benefits will be paid. Action from Congress will be needed to avoid this. It should be noted that the 'Social Security Fairness Act' which Dudek takes credit for was passed into law on January 5 — roughly 15 days before President Donald Trump took office and more than a month before Dudek was appointed as acting commissioner. The bill was first introduced in 2023. In other words, billions of dollars in retroactive benefits were put into motion by the previous administration. On February 28, the SSA published a statement on its website stating that it plans to reduce the workforce from 57,000 to 50,000 — which would imply a 12% reduction. It should be noted that this statement is focused on future plans. Dudek's statement about the workforce is backward looking since the federal government's fiscal year runs from October 1 to September 30. While the SSA has said no field offices are being permanently closed, a report from Government Executive says, a draft plan for service delivery includes 'field office consolidation" as a goal for next year. "The scope of the envisioned 'consolidations' is unclear, though the document singles out field offices as on the chopping block next year," it said. Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Meanwhile, American taxpayers looking ahead see a bleak future for this program. According to a March Gallup poll, public concern about Social Security has hit a 15-year high. Another survey by the Employee Benefit Research Institute (EBRI) and Greenwald Research found that 8 in 10 workers (79%) and 7 in 10 retirees (71%) are at least somewhat about the U.S. government making significant changes to the American retirement system. Sixty percent of workers and 80% of the retirees who are concerned worry that changes could reduce their Social Security benefit. If you're worried about the future of this program, here's how you can protect yourself. The future of the public safety net is uncertain, and if you haven't already, this could be a good time to start weaving your own safety net for retirement. Lean on tax-advantaged accounts such as the 401(k) and Roth IRA to accumulate a retirement nest egg in the most tax efficient way. You could also consider a Health Savings Account, which has a triple tax advantage, to prepare for the costs of medical care in your senior years. Speak to an expert financial advisor to create the best portfolio for your goals. Create an emergency fund so that you don't have to raid your 401(k) if something unexpected takes place. Picking the right age to retire and minimizing your spending could go a long way towards protecting your family's finances. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Americans are rushing to claim Social Security early. Should you?
At a recent internal meeting, a Social Security administrator projected some numbers on a screen to illustrate a remarkable trend: New benefit claims were up by more than 15% in March, compared with the same month a year ago. Leland Dudek, the acting Social Security commissioner, chimed in to ask the presenter if the chart showed what he thought it did: that Americans are rushing to claim Social Security now because they're worried about the stability of the retirement trust fund in the future. 'Fearmongering has driven people to claim benefits earlier, 'cause they're afraid they're not going to claim benefits at all,' he said. 'Yes,' the staffer replied. 'You're exactly right.' The new Trump administration has thrown Social Security into upheaval, with a cascade of staff cuts, rule changes, website outages and leadership shuffles, a routine that has played out across the federal bureaucracy under the cost-cutting eye of Elon Musk's Department of Government Efficiency. Instability at Social Security could spell trouble for millions of Americans who receive the benefits, and for millions more who are counting on them in the future. As a result of that fear, thousands of Americans seem to be claiming Social Security benefits early. Pending Social Security claims totaled 580,887 in March 2025, up from 500,527 in March 2024. An administrator shared the data at a March 28 operational meeting, which the agency posted on YouTube in a gesture of transparency. The spike in claims was first reported by The Wall Street Journal. The rise in claims is unusual, the unidentified administrator told his colleagues, because claims usually tick down in the early months of the year, not up. Fear about the future of Social Security may be only one of several reasons why claims are rising. In an April 29 email to USA TODAY, Social Security officials listed other 'key reasons' people are filing claims now. Among them: ◾A large wave of baby boomers is entering retirement, sparking a surge of new claims. ◾The Social Security Fairness Act triggered a separate wave of claims from public workers in 2025. Yet, clearly, fear has gripped many Americans over the stability of Social Security. At the March 28 meeting, administrators talked of fearful beneficiaries flooding field offices with questions about benefits. Some visitors asked for certified copies of earnings records, even though the information is readily available online. 'Why are they coming? They're nervous,' one administrator said. At one point in the meeting, summing up what he had heard, Dudek said, 'I think we have a lot of customers that, right now, a lot of Americans that are very uneasy.' President Donald Trump has repeatedly pledged not to harm Social Security, a program so sacred to the American public that most politicians consider it untouchable. But Musk and DOGE have turned the agency on its ear, program advocates say, ostensibly searching for evidence of waste and fraud. In an April 29 release, the agency said it had identified over $1 billion in cost savings through 'new, common-sense approaches' to payroll, contracts and grants, travel and purchase-card policies, among other areas. The release said the agency has modernized its telephone network, enhanced fraud prevention, updated death records and improved payment accuracy. Officials stressed that no field office has been permanently closed, although leaked agency plans suggested office closures were contemplated. In recent weeks, news of the turmoil at Social Security mobilized fretful Americans to telephone or visit the agency, seeding further chaos. In the end, rumors of long wait times and swamped field offices became self-fulfilling prophecies. A Reddit community devoted to Social Security features recent conversation threads with such titles as '2 ½ hours on hold, no answer,' and, 'Advice for people now mistakenly classified as dead?' Even some seasoned Social Security observers worry that, amid the tumult of revolving-door agency leadership and DOGE cost-cutting, vital records might be lost. 'The DOGE attack on Social Security was so unprecedented and, frankly, so weird, that it freaked everybody out,' said Elaine Kamarck, founding director of the Center for Effective Public Management at the Brookings Institution. 'I think people are nervous that things might disappear.' Kamarck has been advising her own friends to download a copy of their Social Security earnings record, a document that shows how much you have earned in your lifetime. At the first sign of trouble in reaching the agency or resolving a benefits problem, she said, 'make sure to involve your congressman.' Members of Congress, she said, are highly sensitive to constituent complaints about Social Security. If thousands of Americans are claiming Social Security earlier than they had planned, as the rise in claims suggests, then claimants could be missing out on thousands of dollars in potential benefits. You can claim Social Security retirement benefits as early as age 62. But the longer you wait to claim, the larger your monthly check. The monthly sum rises annually until age 70. For most Americans who live past 80, financial experts say, you're better off claiming the benefit later. 'Many Americans are rightly alarmed by the chaos that Elon Musk and Donald Trump have manufactured at the Social Security Administration,' said Nancy Altman, president of Social Security Works, a nonprofit dedicated to protecting and expanding Social Security. 'The correct response is not to claim benefits before you're ready,' she said, 'but to contact your members of Congress and make sure they do their jobs, including conducting oversight so that benefits are not disrupted.' This article originally appeared on USA TODAY: Americans are claiming Social Security early, fearing instability
Forbes
20-05-2025
- Business
- Forbes
What To Know About The Social Security News And Rumors
Social Security's been in the news a lot lately. Changes definitely are afoot in the program, and more are likely to come. But there have been many rumors and allegations that aren't accurate. Early this year the Department of Government Efficiency announced that 10 Social Security offices would be closed and some employees would be laid off. Former Commissioner Martin O'Malley responded by stating that there would be a 'total system collapse' and the Trump administration was 'taking a wrecking ball to Social Security.' He also forecast that there would be interruptions in benefit payments. These were O'Malley's opinions and forecasts, not facts. It's worth mentioning that O'Malley is a former governor of Maryland, ran for President in 2015-2016 and ran to be chairman of the Democratic National Committee after the 2024 election. In other words, he's a partisan politician who probably still has national aspirations. Matters also weren't helped when then-Acting Social Security Commissioner, Leland Dudek, initially said there would be significant layoffs and office closures. He quickly retracted the comments. Dudek also stated that a court decision would require him to close the entire agency. The court had to issue a letter stating the interpretation was incorrect. The Social Security Administration issued a notice that there have been no permanent closings of local field offices and none are planned. At times, some local offices close temporarily because of weather or facilities issues, but they reopen after the issues are resolved. A hearing office (where beneficiaries appeal SSA decisions) in White Plains, N.Y. was closed. SSA also closed several small hearing rooms which had no employees assigned to them and weren't used. There have been staff reductions. In addition, more people are contacting SSA because of all the rumors and reports. SSA says call volume is up about 19%. That's led to significant waiting times on the main SSA telephone number and difficulty obtaining appointments at local offices. Because of the staffing and telephone issues, when possible take any action regarding Social Security online. There are some actions that can't be taken online, such as applying for survivor's benefits or changing personal information. For these actions, it's best to contact the local office directly instead of going through the main SSA number. DOGE required SSA to change how a person's identity is verified in certain situations, such as when a person applies for benefits or changes direct-deposit information. In those cases, a photo ID now is required, but a visit to an SSA office isn't. An alternative is to upload a photo of the ID through or a 'my Social Security' account on the Social Security website. An unfortunate consequence of all the rumors and news is that many people are applying for Social Security benefits earlier than previously planned, according to The Wall Street Journal. I continue to recommend not to accelerate benefit claims because of the stories that have come out this year or estimates of the demise of the Social Security trust fund. I think it's unlikely benefits will be reduced for anyone at or near retirement age. But even if benefits are reduced, it's better to have them cut from the higher level than at the lower level paid to those who claim early. In other Social Security news, SSN announced that this summer people with online Social Security accounts will have digital access to their Social Security numbers. This effectively is a digital Social Security card that can be used when people need to look up or prove their Social Security numbers. Those who have lost their cards won't have to apply for and wait to receive a physical card. The digital access to a Social Security card also means people won't have to carry physical cards and risk theft of the cards and their numbers.
Newsweek
01-05-2025
- Business
- Newsweek
Social Security Issues 'Emergency Message': What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Social Security Administration (SSA) has rolled back a recently announced policy on benefit overpayments. Newsweek has contacted the SSA for comment via email. Why It Matters Benefit overpayments can result from the SSA's mistake or from beneficiaries failing to comply with requirements, intentionally or otherwise. The federal agency has lost billions due to overpayments in recent years. From fiscal years 2015 through 2022, the SSA is estimated to have made nearly $72 billion in improper payments, the majority of which were overpayments. By the end of FY 2023, the SSA had an uncollected overpayment balance of $23 billion. What To Know On March 7, the federal agency announced it would reinstate the 100 percent withholding rate when attempting to clawback incorrectly paid benefits, beginning on March 27 this year. This meant that any overpayment made by the SSA would see the recipient's benefits withheld entirely to pay off the balance. But now, the SSA will default to withholding 50 percent of old-age, survivors, and disability insurance benefits, according an "emergency message" to staff on April 25. This means that if a beneficiary is found to have overpaid, half of their benefits will be withheld to pay down the balance. Stock image/file photo: Social Security cards with U.S. Dollars. Stock image/file photo: Social Security cards with U.S. Dollars. GETTY At the time of the original announcement, acting commissioner Leland Dudek said the SSA has a "significant responsibility to be good stewards of the trust funds for the American people" and that it has a "duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds." The SSA did not issue a press release for the most recent policy change. The SSA and Overpayments The March 7 announcement undid a Biden-era policy, introduced under former commissioner Martin O'Malley, that decreased the default overpayment withholding rate for Social Security beneficiaries to ten percent, or $10, whichever is greater, down from 100 percent. That policy has been in place for a year until the current acting commissioner, Dudek, changed it. The change came after significant reporting on overpayments from a number of news outlets, including Newsweek, who spoke to seniors and disabled Americans who had been asked to pay back thousands of dollars with little notice after being overpaid by the SSA. One woman told Newsweek she was hit with a $62,000 bill for overpayments relating to Social Security survivor payments she received after her father died while she was just a child. Another, a disabled veteran with bipolar disorder, told Newsweek he had received a letter from the SSA requesting he pay back $67,000. What People Are Saying Martin O'Malley, SSA commissioner under Biden, said on April 28: "I think that we had the policy right before. We looked at the various break points, and if you would depend entirely on your Social Security check, having half of it interrupted means what? That means you go without paying your heating bill for the month; that means you'd go without your medicine instead of buying medicine and food." What Happens Next The new policy went into effect on April 25.
Yahoo
01-05-2025
- Business
- Yahoo
Uncertainty due to DOGE leads more seniors to claim Social Security early
More retirees are looking to start collecting Social Security benefits early because of uncertainty over the future of the program. Though President Donald Trump has long said he would 'protect' Social Security benefits, his baseless claims about widespread fraud, his staffing cuts and his policy changes that make it harder to claim benefits have put some older adults on edge. According to The Wall Street Journal, the number of pending Social Security claims for retirement, survivor and health insurance benefits in March was 580,887, up from 500,527 a year earlier. At an internal meeting, acting Social Security Commissioner Leland Dudek blamed the increase on 'fearmongering,' saying retirees were 'afraid they're not going to claim benefits at all,' according to a video posted by the agency on YouTube. Searches for 'how to claim Social Security' on Google in March were also at the highest level that they have been since tracking began in 2004. But the decision will have long-term costs for recipients. Workers eligible for Social Security can begin receiving benefits at age 62, known as the early eligibility age, but their benefits will be 25% less than if they waited until the full retirement age of 66. And those who wait beyond that can get 8% more in benefits each year until age 70. Financial planners recommend waiting as long as possible to begin receiving benefits and collecting early only if you do not expect to live past 80 or need the monthly checks immediately because of financial circumstances. Still, the Congressional Research Service found that the majority of Americans claim their benefits before age 66, although the proportion has gone down in recent years. Nancy Altman, president of the Social Security Works advocacy group, told USA Today that worried retirees should wait to collect benefits and instead get involved. 'The correct response is not to claim benefits before you're ready,' she said, 'but to contact your members of Congress and make sure they do their jobs, including conducting oversight so that benefits are not disrupted.' Subscribe here to receive weekly updates on and expert insight into the key issues and figures defining Trump's second term. This article was originally published on
