Latest news with #MartinO'Malley
Business Mayor
10-05-2025
- Business
- Business Mayor
Bitcoin vs. Social Security: Former Maryland Governor's Ponzi Scheme Remark Sparks Fury
Former Maryland Gov. Martin O'Malley recently compared bitcoin to a Ponzi scheme while defending the U.S. Social Security Administration. The comparison drew criticism from bitcoin supporters, who countered by asserting that Social Security itself resembles a Ponzi scheme. O'Malley: Trump Administration After Social Security's $2.6 Trillion Surplus In a recent speech defending the U.S. Social […] READ SOURCE
Yahoo
06-05-2025
- Business
- Yahoo
The 170,000 Beneficiaries the Social Security Administration May Cut
Key Points A proposal to ban payments to people without a Social Security number is likely to impact beneficiaries who are retired, disabled, widowed, or low income. 'Representative payees' who accept benefits on behalf of eligible beneficiaries don't always have a Social Security number. There are concerns that finding new representative payees to take over current payees' duties will be challenging. A proposal floating around the Social Security Administration (SSA) would bar anyone without a Social Security number from collecting benefits on behalf of retired, disabled, widowed, and low-income individuals. Whether the beneficiary currently collects benefits after a lifetime of working or SSDI for a disability, the new proposal would require their representative payee to provide proof that they have a Social Security number. Representative payees Let's say a child of immigrants is a U.S. citizen and disabled. If that child is eligible for Social Security, they would need a representative payee to accept their monthly benefit check and determine the best way to spend it based on their needs. Given that a parent is usually in the best position to know what their child requires, they typically act as the representative payee. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » If a parent can't produce a Social Security number, no matter where they are in the immigration process, the new proposal would make it impossible for them to act as a representative payee. The same is true for those representative payees looking out for the best interest of disabled adults, retired Social Security recipients, those receiving low-income benefits, and foreign payees who've worked legally long enough to become entitled to benefits. Widows and other beneficiaries (of Americans who have died) living overseas could also be affected by losing access to a trusted representative payee. This brings the total number of beneficiaries at risk of missed or postponed payments to 170,000. It's easy to understand how disabled children, as well as elderly or disabled adults, benefit from a payee who ensures checks are received and their immediate needs are met. It is less clear who would take over representative payee duties. Image source: Getty Images. Why make a change? It's impossible to know precisely why the proposal was floated, but Martin O'Malley, former commissioner of the SSA, told the website Government Executive that it may be rooted in misinformation. Some claim that undocumented immigrants receive benefits, and this misinformation spread during the last election cycle. According to O'Malley, the SSA received so many calls asking why it was giving money to illegal immigrants that the SSA had to post a disclaimer message on the top of its website, explaining that the story is false. By cutting payments to 170,000 representative payees, those who've spread the misinformation will be able to say they "stopped paying illegal immigrants." The change may be jarring for American citizens who currently count on their representative payee to collect checks and pay expenses. According to the SSA, if the proposal becomes policy, the SSA will need to contact 170,000 representative payees. The task is sure to be challenging. Knowing where individual payees are at all times has always been difficult, so much so that the SSA has counted on institutional payees like child welfare agencies for help in the past. If a switch takes place Currently, the person who acts as a representative payee tends to be the best person for the job. For example, the parent of a child with a disability or the spouse of an Alzheimer's patient may be the ideal representative due to their commitment to doing the right thing on behalf of the beneficiary. Kathleen Romig, the director of Social Security and disability policy at the Center on Budget and Policy Priorities, told Government Executive that it will likely be more difficult for SSA to identify suitable representatives for certain beneficiaries. There may be a higher risk of fraud or misuse of funds if SSA chooses a friend or organization as payee rather than a parent or spouse. As of today, nothing is set in stone. The SSA still needs to ensure it has the authority to change the policy. If the proposal moves forward, it's safe to assume it will be unsettling for all parties involved. The $ 22,924 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies. View the "Social Security secrets" » The Motley Fool has a disclosure policy. The 170,000 Beneficiaries the Social Security Administration May Cut was originally published by The Motley Fool
Yahoo
05-05-2025
- Business
- Yahoo
Social Security reverses overpayment clawback rules — again
The Social Security Administration revised — again — its policy for clawing back overpayments in benefits, this time saying it would deduct 50% of benefit checks until an overpayment is recovered, a reversal from the 100% previously stipulated. The new policy, which went into effect April 25, was announced in an emergency message to agency employees. 'We are the most privileged': My husband and I are tired of paying for our friends. How do we get them to pay their way? What 100 years of stock-market crashes tells us about the S&P 500's stunning tariff comeback My eldest son refused to share his father's $500K inheritance with his siblings. Should I cut him off? Investing legend Warren Buffett to step down as head of Berkshire Hathaway after 6 momentous decades 'Retirement is within my grasp': I'm 57, my 401(k) is dropping and I'm feeling anxious about a recession. What can I do? Once a beneficiary is notified of an overpayment, according to the Social Security Administration, it allows a 90-day period in which the beneficiary can request a lower rate of withholding, a reconsideration or a waiver. After those 90 days pass, the clawback kicks in, lasting until the agency collects all of the overpaid funds. For years, the Social Security Administration has erroneously overpaid some beneficiaries. Once an error has been discovered, the SSA would withhold money from the beneficiary's check until the amount was repaid, sometimes affecting 100% of the benefit. Many of those impacted were elderly, disabled and low-income people who didn't realize they were being overpaid, and for whom losing their full monthly benefit following such an overpayment finding was a hardship. In early 2024, under then–Social Security Commissioner Martin O'Malley, the repayment requirements were changed and withholding was reduced to 10% from 100%. In March, after the change of presidential administrations, the agency said it was reverting to 100% in most cases. Now, under the latest rule change, the clawback amount will be 50% until a debt is repaid. At the time of March 7 announcement, Leland Dudek, acting commissioner of Social Security, said: 'We have the significant responsibility to be good stewards of the trust funds for the American people.' 'It is our 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,' Dudek said in March. The SSA did not respond to requests for comment on the reason for the late-April policy change. 'It was always very cruel that — through no fault of their own — that Social Security would claw back their mistakes. Fifty percent still seems very cruel,' said Richard Fiesta, executive director for the Alliance for Retired Americans. 'Having half of their benefits taken away could put people into great economic peril.' Citing the Office of the Chief Actuary, the SSA in March said the 100% clawback provision would lead to overpayment recoveries, or a program savings, of roughly $7 billion over the next 10 years. According to the SSA's inspector general, about $71.8 billion, or less than 1%, of the total $8.6 trillion in benefits paid between fiscal 2015 and fiscal 2022 were improper payments. Most of those improper payments were overpayments, the SSA said. 'The Senior Citizens League believes overpayments should be recouped but remains concerned about the impact of any recovery rate on the less financially stable retirees. For some retirees, it won't matter if it's 1% or 100%. Any amount of clawback could be catastrophic for the less financially stable retirees,' said Shannon Benton, executive director of the seniors advocacy group. About 40% of all Americans 65 and older rely on Social Security for half or more of their income, according to AARP. Additionally, about 14% of recipients 65 and older depend on it for 90% or more of their income. The average Social Security check is about $1,980 as of March 2025, according to the SSA. Social Security has been under attack by Elon Musk's so-called Department of Government Efficiency, or 'DOGE,' which says it is looking for waste, fraud and abuse in the federal government. The Social Security Administration, which was already at a 50-year low in staffing, has said it will cut 12% of its workforce, or 7,000 jobs, and close some regional offices. Opinion: A flat $1,660 monthly Social Security benefit for everyone? It's one proposed CBO remedy. Social Security is facing an insolvency crisis. The trust funds that back Social Security are forecast to be depleted in 2035, at which point beneficiaries would receive only 83% of promised benefits. 'The Trump administration is beginning to retreat in the face of public outrage, but 50% is still way too high. Imagine losing half your income overnight. When the overpayment is through no fault of the beneficiary, the government should absorb the cost,' said Nancy Altman, president of advocacy group Social Security Works. 'There is so much focus on overpayments but no effort at all to correct underpayments, when beneficiaries get less than the amount for which they are eligible. Both underpayments and overpayments are now far harder for beneficiaries to correct, since Elon Musk's DOGE has hollowed out Social Security,' Altman said. 'No one should be satisfied by this change.' This is not the first time the SSA has reversed a new policy. The agency recently reversed its rules regarding beneficiaries' ability to verify their identities by phone. Read on: Social Security rule reversals, office closures, cost cuts: here's what's happening now. Social Security's COLA expected to be lower in 2026, as market turmoil leaves seniors in limbo Student-loan borrowers plead with policymakers to end 'nightmare' as Republicans plot major changes to repayment plans My ailing father's house burned down in the California fires. Will our brother, who took care of them, lose his inheritance? 'In their last days, our parents changed their will': They left me $250,000, but gave my sister $1 million. What should I do? The S&P 500 is headed for its longest winning streak in more than 20 years. That doesn't mean the worst is over for stocks. 'She's kept him afloat': I'm 78 and leaving my daughter, 41, my life savings, but her partner is a mooch. How can I protect her? Warren Buffett gave this timely investment advice at Berkshire's annual meeting
Epoch Times
30-04-2025
- Business
- Epoch Times
Social Security Cuts Overpayment Withholding Rate to 50 Percent Down From 100 Percent
The Social Security Administration (SSA) has announced a new policy that reduces the default withholding rate to 50 percent for recovering Social Security benefit overpayments under Title II, the federal program covering retirement and disability insurance. The change, Under the updated directive, any overpayment notice issued on or after April 25 will automatically carry a 50 percent withholding rate. Beneficiaries will have 90 days to respond—either by contesting the overpayment, requesting a waiver, or negotiating a lower repayment rate. If no action is taken within that window, the SSA will start withholding half the monthly benefit until the overpayment is fully repaid. The updated rules do not apply to Title XVI overpayments, such as those involving Supplemental Security Income (SSI) recipients, who still face the 10 percent withholding rate. The revised policy also excludes cases involving fraud or similar fault, which follow different recovery procedures. The shift marks the third related policy change in just over a year. In March 2024, the agency 'It's unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment,' Martin O'Malley, then Commissioner of Social Security, Related Stories 4/25/2025 4/18/2025 That policy was 'We have the significant responsibility to be good stewards of the trust funds for the American people,' Lee Dudek, Acting Commissioner of Social Security, said in a Rep. John B. Larson (D-Conn.) With its latest decision to cut the withholding rate in half, the SSA appears to be seeking a middle ground between fiscal responsibility and potential beneficiary hardship. The agency disbursed roughly $1.4 trillion in benefits in fiscal year 2023 across its retirement and disability programs, according to the agency's 2024 financial SSA's overpayment recovery practices have come under increasing scrutiny from lawmakers and watchdogs in recent years, particularly for the stress they impose on beneficiaries who may have had little or no role in the errors. In a November 2023 The Government Accountability Office has echoed those concerns, The SSA says it has launched an internal review and is working to expand data-sharing with payroll systems to help reduce payment errors.
Newsweek
29-04-2025
- Business
- Newsweek
Social Security Could Collapse Entirely Under Trump, Former Chief Warns
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 former Social Security commissioner has warned that Department of Government Efficiency (DOGE) actions at the federal agency could lead to the "collapse of the entire system" that pays benefits to 70 million Americans. Newsweek has contacted the Social Security Administration (SSA) for comment via email outside of regular working hours. Why It Matters DOGE, under the helm of Donald Trump adviser and tech billionaire Elon Musk, began working at the SSA in February, shortly after the Trump administration entered the White House. Several DOGE mandated changes have taken place, including staffing being cut from 57,000 down to 50,000, closure of some regional offices, and changes to customer services. What To Know In conversation with Democracy Now's Amy Goodman, Biden-era commissioner Martin O'Malley said that DOGE cutbacks at the agency could "cascade into a collapse" of the entire Social Security system. He said that jobs cuts—first announced by the agency in late February—have resulted in "50 percent reduction in the people that keep the IT systems going." In a press release issued on February 27, the SSA confirmed that it would be undertaking workforce reductions through voluntary early retirement for those over 50 years of age who meet certain service requirements, and resignation for other staff members. Employees who take either of these options would be eligible for voluntary separation incentive payments. Former Social Security Commissioner Martin O'Malley testifies before the Senate Committee on the Budget at the U.S. Capitol on September 11, 2024 in Washington, D.C. Former Social Security Commissioner Martin O'Malley testifies before the Senate Committee on the Budget at the U.S. Capitol on September 11, 2024 in Washington, D.C. Anna Rose Layden/GETTY The SSA said the "massive reorganizations" would lead to "abolishment of organizations and positions, directed reassignments, and reductions in staffing." But O'Malley believes these cuts are to blame for issues plaguing the agency. In recent weeks, there have been reports of SSA website crashes, long waits for phone and in-person services, as well as some recipients being incorrectly declared as dead. "You're in some of the customer-facing aspects of it," O'Malley said. "Those outages are going to become more regular, rather than intermittent. They're going to happen for longer durations." "Ultimately, you're going to see that cascade into a collapse of the entire system and an interruption for some time of benefits," he continued. "I don't see—with the path that they're on, I believe they've taken probably 90 percent of the actions necessary to accomplish that aim." O'Malley has made the same warning on numerous occasions. He told CNBC in March that such a collapse could happen "within the next 30 to 90 days." He also called for legislative action and public pressure, warning that any interruption to payments could lead to political backlash. "I think many people throughout the country are going to start bringing a lot of heat to members of Congress who have been facilitating, supporting, aiding and abetting the breaking of their Social Security and the interruption of benefits that they work their whole lives to earn," O'Malley said. What People Are Saying In a February 28 press release regarding staffing cuts, the SSA said: "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. Also supporting this priority is looking for efficiencies and other opportunities to reduce costs across all spending categories, including information technology and contractor spending. SSA is committed to ensure this plan has a positive effect on the delivery of Social Security services." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "From a customer service standpoint, it does appear the Social Security Administration is feeling pressure at the moment, as layoffs have meant more work to do for a smaller staff of employees. The distribution of benefits has yet to see any negative effects, but with other aspects of the administration falling behind, it's easy to see why there are concerns future payments could be Americans will tolerate missed payments or slower customer service for a program they paid into for decades." What Happens Next No official changes to benefit distributions—which take place monthly—have occurred.
