SSA Faces Dire Staffing Situation, Requests Consistent Funding
New Social Security Administration (SSA) Commissioner Martin O’Malley pleaded with members of two House Ways and Means Subcommittees for more funding for the agency, as the subcommittee considers SSA’s fiscal year (FY) 2025 budget request.
Commissioner O’Malley, who took office on December 20, 2023, said the agency is serving more customers than ever before, with fewer staff than ever before, with staffing levels at their lowest in 27 years, and current staff “overwhelmed.”
“The situation is dire, and the public we serve is paying the price as they attempt to access the benefits that they have already worked their whole lives to earn,” said Commissioner O’Malley to the joint hearing of the Social Security and Work & Welfare Subcommittees.
The Commissioner described how SSA received a much needed $785 million funding boost in FY 2023, allowing it to start restaffing. However, the commissioner blamed the extended continuing resolution in FY 2024 for another hiring slowdown.
“We have stopped all hiring, and our staffing levels have already fallen below where they were in April of last year. If we continue this path of no hiring, we will fall to a new all-time low of around 55,000 full-time permanent staff by the end of this fiscal year,” said Commissioner O’Malley.
While Americans payroll taxes fund Social Security, Congress must prove how much of that money goes to administrative costs each year. In the FY 2025 budget request, SSA is asking for an increase to $16.4 billion. It’s receiving $14.2 billion in FY 2024.
Efficiency
Despite the challenges with hiring, the commissioner cited efficiency in SSA when compared to private insurance carriers.
“Allstate operates on 19% of annual benefits payments, Liberty [Mutual] operates on 24% of its annual benefits payments, and Social Security—at least before 2018—operated on 1.2%. We’re down now to less than 1%. What’s the result of that? Today, customers wait on average 39 minutes when they call the 800 number. That’s an average, so sometimes it can be north of an hour,” said Commissioner O’Malley.
The commissioner also touted changes he made since assuming his post, including implementing analytics initiatives to improve customer service, and convening a series of biweekly meetings with agency leaders to discuss service issues.
Hiring
Hiring is a big focus in the administration’s budget request. $269 million would go toward the hiring and training of new field office employees; $79 million would pay for teleservice center hires; $85 million for processing centers, $89 million for hearing offices, and $2.8 billion to help rebuild the workforces of state disability offices.
As for hiring strategy, commissioner told lawmakers that SSA is planning to focus on hiring veterans as well as partnering with universities and other institutions. That includes pivoting to high school and community college graduates in addition to those with a four-year college degree.
