Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, April 10, 1995 TAG: 9504110071
SECTION: NATIONAL/INTERNATIONAL PAGE: A1 EDITION: METRO
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium
Some critics say the blueprint overlooks Social Security's most pressing problem: looming insolvency for the national retirement system. Others say giving for-profit companies a piece of Social Security's $381 billion budget is a privacy risk.
The proposed reforms are part of the Clinton administration's push to ``reinvent government.'' The changes, which could save as much as $1 billion over five years, are to be announced Wednesday.
According to documents obtained by The Associated Press, the Social Security Administration is considering letting large employers file a retiring worker's claims for benefits directly with the agency, by computer. However, an employee of a participating company could still choose to file for benefits directly with Social Security.
The agency acknowledges that several privacy issues must be resolved, but says the changes would reduce its workload.
Social Security keeps records on the earnings of almost 140 million working Americans, and the information is coveted by collection agencies, private investigators and information brokers.
H&R Block Tax Services Inc., the nation's largest income tax return preparation service, is already trying to get in on the action.
Social Security has promised to consider using the company and others like it to assist people with filing for all types of benefits, according to correspondence between H&R Block and the agency.
Discussions with specific companies, however, are beyond the scope of the overall policy changes being pushed as part of White House streamlining efforts.
Another proposed change involves staggering the sending of checks to retired and disabled recipients. The change would apply only to future retirees, and current beneficiaries who volunteer to switch payment dates.
Staggering the distribution of checks could even out the impact on financial institutions as well as Social Security's workload.
Among the other proposals being considered: closing five of the agency's 10 regional offices and assigning half of the 700 employees who would be affected to front-line operations dealing with the public. The rest of the jobs would be lost as the agency cuts its work force by 4,500 over the next four years.
Some Social Security experts say the agency should be focusing its efforts instead on the system's long-range solvency.
David M. Walker, who was one of two public trustees overseeing Social Security's funds for the past five years, said it appears that the agency has ``got the cart before the horse.''
``This might be looked on as a smokescreen, when the real problem is how do you protect the financial integrity of the trust funds,'' added Warren Fretwell, executive vice president of an American Federation of Government Employees local in New York.
``We should be paying more attention to that, instead of tinkering with service delivery when the majority of people are very satisfied with the service,'' Fretwell said.
John Rother, legislative director for the American Association of Retired Persons, said the steps being outlined by Social Security ``are designed to make the agency run better. Clearly, Congress' job is to figure out long-term solvency. That's not the commissioner's job.''
by CNB