[Senate Hearing 115-840]
[From the U.S. Government Publishing Office]
S. Hrg. 115-840
NOMINATION OF ANDREW M. SAUL
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HEARING
BEFORE THE
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED FIFTEENTH CONGRESS
SECOND SESSION
ON THE
NOMINATION OF
ANDREW M. SAUL, TO BE COMMISSIONER,
SOCIAL SECURITY ADMINISTRATION
__________
OCTOBER 2, 2018
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Finance
__________
U.S. GOVERNMENT PUBLISHING OFFICE
40-924-PDF WASHINGTON : 2020
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COMMITTEE ON FINANCE
ORRIN G. HATCH, Utah, Chairman
CHUCK GRASSLEY, Iowa RON WYDEN, Oregon
MIKE CRAPO, Idaho DEBBIE STABENOW, Michigan
PAT ROBERTS, Kansas MARIA CANTWELL, Washington
MICHAEL B. ENZI, Wyoming BILL NELSON, Florida
JOHN CORNYN, Texas ROBERT MENENDEZ, New Jersey
JOHN THUNE, South Dakota THOMAS R. CARPER, Delaware
RICHARD BURR, North Carolina BENJAMIN L. CARDIN, Maryland
JOHNNY ISAKSON, Georgia SHERROD BROWN, Ohio
ROB PORTMAN, Ohio MICHAEL F. BENNET, Colorado
PATRICK J. TOOMEY, Pennsylvania ROBERT P. CASEY, Jr., Pennsylvania
DEAN HELLER, Nevada MARK R. WARNER, Virginia
TIM SCOTT, South Carolina CLAIRE McCASKILL, Missouri
BILL CASSIDY, Louisiana SHELDON WHITEHOUSE, Rhode Island
Jeffrey Wrase, Staff Director and Chief Economist
Joshua Sheinkman, Democratic Staff Director
(ii)
C O N T E N T S
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OPENING STATEMENTS
Page
Hatch, Hon. Orrin G., a U.S. Senator from Utah, chairman,
Committee on Finance........................................... 1
Wyden, Hon. Ron, a U.S. Senator from Oregon...................... 2
ADMINISTRATION NOMINEE
Saul, Hon. Andrew M., nominated to be Commissioner, Social
Security Administration, Baltimore, MD......................... 5
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Hatch, Hon. Orrin G.:
Opening statement............................................ 1
Prepared statement........................................... 23
Saul, Hon. Andrew M.:
Testimony.................................................... 5
Prepared statement........................................... 24
Biographical information..................................... 25
Responses to questions from committee members................ 36
Wyden, Hon. Ron:
Opening statement............................................ 2
Prepared statement........................................... 57
Communication
Consumer First Coalition......................................... 59
(iii)
NOMINATION OF ANDREW M. SAUL,
TO BE COMMISSIONER,
SOCIAL SECURITY ADMINISTRATION
----------
TUESDAY, OCTOBER 2, 2018
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 10:34
a.m., in room SD-215, Dirksen Senate Office Building, Hon.
Orrin G. Hatch (chairman of the committee) presiding.
Present: Senators Thune, Toomey, Scott, Wyden, Menendez,
Carper, Bennet, Casey, McCaskill, and Whitehouse.
Also present: Republican staff: Jeffrey Wrase, Staff
Director and Chief Economist; Nicholas Wyatt, Nominations and
Tax Professional Staff Member; and David Timmons, Detailee.
Democratic staff: Joshua Sheinkman, Staff Director; Michael
Evans, Chief Counsel; Tom Klouda, Senior Domestic Policy
Advisor; Ian Nicholson, Investigator; Sam Conchuratt, Assistant
to the Staff Director; and Hyacinth Hinojosa, Policy Advisor.
OPENING STATEMENT OF HON. ORRIN G. HATCH, A U.S. SENATOR FROM
UTAH, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. Good morning. I would like to welcome
everyone to today's hearing.
This morning we are meeting to discuss the nomination of
Andrew Saul to be Commissioner of Social Security. This is a
long-overdue nomination.
Mr. Saul, if confirmed, you will become the first confirmed
Commissioner at the Social Security Administration since 2013.
I believe that most, if not all, of my colleagues here agree
that having a confirmed Commissioner and sustained leadership
will benefit the Social Security Administration, its
operations, its employees, and the American people who rely
upon the Social Security checks arriving on time.
Now, Mr. Saul, if confirmed, you will be taking charge of
an agency facing many challenges, including persistent
information technology modernization issues and large work
backlogs. Last week I laid out some of these challenges at a
nomination hearing for another important position at the
agency.
This agency needs someone in charge to help reduce
disability determination backlogs and workload backlogs. Those
backlogs at the Social Security Administration are unacceptable
to many, if not most of us, here in the Senate, and are not
fair for the American people and Social Security beneficiaries.
Operational issues at the agency need your immediate attention.
And we look forward to your leadership in addressing them.
I am pleased to see in your background, Mr. Saul, that you
have decades of experience in both financial decision-making
and in successfully managing and growing organizations. I
believe that this experience helped you understand that you
cannot run the Social Security Administration by spending all
of your time in Woodlawn, MD and DC. Understanding what is
happening in the field and regional offices is critical in the
role of executive leader of this particular agency.
Before turning to my friend, Ranking Member Wyden, let me
briefly address the fact that the President has nominated Mr.
Saul to serve the remainder of the 6-year term that expires
January 19, 2019, and also to serve the following 6-year term
that expires January 19, 2025.
We will be considering the first nomination today to serve
the remainder of the 6-year term that expires January 19, 2019.
Today's hearing will not consider the second nomination, which
involves service for the following 6-year term that expires
January 19, 2025.
Let me be clear that we are not considering the second
nomination with respect to Senate procedure and not with
respect to your qualifications to serve, which we all admire
and acknowledge. In particular, the second nomination would
involve the Senate acting on a nomination which strictly
speaking would be properly before the next Senate.
Setting a Senate precedent that we could consider a
possible sequence of future terms could bind future Senators
improperly. Therefore, we will not be setting such a precedent
today. Once again, to be clear, the issue is Senate procedure
and precedent. The issue is not whether you would be qualified
to serve as Social Security Commissioner for both the duration
of this term and the following 6-year term.
I am confident and I expect that, if you are confirmed
today for the first nomination, your nomination before the
116th Congress will be taken up as promptly as possible next
year.
[The prepared statement of Chairman Hatch appears in the
appendix.]
The Chairman. With that, I am going to turn to my partner
on this committee as ranking member, Senator Wyden, for his
opening remarks.
OPENING STATEMENT OF HON. RON WYDEN,
A U.S. SENATOR FROM OREGON
Senator Wyden. Thank you very much, Mr. Chairman. I look
forward to working with you, and, noting that you are retiring
at the end of this term, I hope we can find a way to proceed in
a bipartisan fashion on some important issues the way we did on
CHIP and foster care and chronic care and other issues.
Now today, the Finance Committee is going to consider the
nomination of Andrew Saul to serve as Commissioner of the
Social Security Administration. It goes without saying that
this position is one of the most important posts in the Federal
Government.
It is responsible for administering benefits to over 69
million seniors, people with disabilities, and other Americans
who earned their Social Security after working for years and
paying into the program with every paycheck.
Mr. Saul's nomination comes before the committee at a
critical moment. Middle-class paychecks are not keeping up with
rising living expenses and health-care costs, making saving for
retirement even tougher for many workers.
That means Social Security is more important than ever when
it comes to ensuring all Americans have a secure retirement
without having to worry about financial destitution. That is
especially true for women who, in many circumstances, are
working multiple jobs while also raising children, sometimes on
their own.
A recent study showed that women have an average of half
the retirement savings that men do. That gap means hard times
for women in their later years: women aged 65 and older are 80
percent more likely than men to be in poverty.
My own parents were divorced when I was young and, to a
great extent, my mother raised my late brother and I. Despite
having a master's degree, she always seemed to take home less
pay than men doing the same job. She was not alone. That is
another reason why it is so important that women get a fair
shake when it comes to retirement and Social Security.
When it comes to the future of Social Security, the program
can pay full benefits through 2034 and 79 percent of benefits
after 2034. There has been an effort from some of the
President's top economic advisors to portray this as a crisis
and insist that drastic changes are needed and benefits need to
be cut.
So let me be clear to colleagues today: cuts to Social
Security are the exact opposite of what is needed now.
Increasing the retirement age, transforming Social Security
from a secured defined benefit to a privatized scheme that puts
vital benefits at risk--these are harmful ideas that are going
to make it harder for seniors and vulnerable Americans to live
full lives after years of hard work.
I am going to go to the mat to prevent harmful attacks on
Social Security. Instead, the Congress ought to focus on ways
to improve the program and ensure that all Americans can enjoy
a secure retirement.
If Mr. Saul is confirmed to a full 6-year term, he will be
managing the nuts and bolts of Social Security as this
important debate takes place. But there is also work to be done
now to ensure Social Security works for Americans who count on
its benefits right now.
Today, too many who seek benefits are stuck in a kind of
bureaucratic La La Land. Nearly a million Americans are waiting
as the Social Security Administration considers appeals of
their eligibility. This backlog of disability cases means
people often wait more than a year or longer for a decision.
This is unacceptable. Recently the Congress has done better
when it comes to funding the agency, and the backlog has
improved.
I want to thank Senator Brown and others for pushing hard
for these resources in recent appropriations bills. It is going
to be important to see results, though, before anybody declares
``mission accomplished.'' Too many Americans wait for help
instead of getting the service they paid for and deserve.
The Commissioner--and we talked about this--needs to make
it very clear, perhaps with a weekly update on the front page
of the agency's website, about the average waiting time that
faces those we have the honor to represent.
Now, Social Security has made real progress to modernize
its information technology. Earlier this year, the Government
Accountability Office said that the agency had made the most
progress of any agency when it came to managing information
technology.
This is the critical task for every Federal agency at a
time when data theft is rampant. More vulnerabilities and
opportunities for cyber-crime crop up every day. Americans have
made it clear that privacy is paramount, and Social Security
cannot fall short when it comes to protecting personal
information.
On a positive note, the agency's disability case processing
system has received positive reviews from the employees that
use the system each day to help people. But to paraphrase
President Lincoln--and Senator Brown, who tells us this often
at these hearings--the ``public opinion bath'' is needed to
verify that it is leading to better service and less waiting.
Finally, if confirmed, Mr. Saul will be the first confirmed
head of Social Security since 2013. It is unfortunate there has
been such a delay, and that delay has taken a real toll.
Without a confirmed leader, the agency cannot create and
execute a long-term vision of how to improve the program.
On a practical level, an acting leader cannot hire
qualified people from outside the agency into senior executive
service positions, such as the person who would be in charge of
information technology, security, or the head of the agency's
more than 1,200 field offices. Our country deserves the best
talent at Social Security. This barrier needs to be removed.
I also want to conclude by touching on the issue the
chairman raised about taking up only the first nomination. The
White House nominated Mr. Saul for two consecutive terms: one
for the remainder of the current term ending on January 19,
2019, and one for the succeeding term beginning the next day.
If the Finance Committee were to vote on the second
nomination, it would be acting during this Congress to fill a
vacancy that does not occur until the next Congress. That would
up-end the whole notion of Senators' advise and consent on a
contemporaneous nomination of officials who are running key
parts of the government. It would be unprecedented. I think it
could also expose the Commissioner to legal challenges.
So, the chairman and I have reached an agreement to wait on
that future term until the next Congress. For my part, Mr.
Saul, if confirmed this year, I will support taking up the
second nomination without delay in the next Congress.
I want to thank Mr. Saul for the conversations that we had
privately and for coming today.
Mr. Chairman, I look forward to working with you.
[The prepared statement of Senator Wyden appears in the
appendix.]
The Chairman. Well, thank you, Senator.
I would now like to introduce our nominee, Mr. Andrew Saul.
Mr. Saul is currently a partner with Saul Partners LP. He
has had over 30 years of experience in the private sector
leading organizations such as Brooks Fashion Stores and Cache.
Mr. Saul also served as Chairman of the Federal Retirement
Thrift Investment Board for almost 10 years, including 3 years
under President Obama.
While Chairman of the Federal Thrift Board, my
understanding is that you cleaned up a lot of messes, fixed
some IT issues, and improved the financial position of the
Thrift Savings Plan, which led to greater retirement security
for many savers.
In addition to your private-sector experience, you have
dedicated much of your life to community service, including at
the Icahn School of Medicine at Mount Sinai Medical Center, the
Metropolitan Museum of Art, the National Gallery of Art, the
United Jewish Appeal Federation of New York, and the Sarah
Neuman Nursing Home. You earned your bachelor's degree from the
Wharton School of Finance at the University of Pennsylvania.
Mr. Saul, I believe you are well-qualified to serve as
Commissioner of the Social Security Administration. I
personally look forward to hearing more from you here today. So
we are looking forward to listening to you and hopefully
getting your confirmation through as quickly as possible.
So with that, we will turn the time over to you, Mr. Saul.
STATEMENT OF HON. ANDREW M. SAUL, NOMINATED TO BE COMMISSIONER,
SOCIAL SECURITY ADMINISTRATION, BALTIMORE, MD
Mr. Saul. Well, thank you very much. Chairman Hatch,
Ranking Member Wyden, members of the committee, thank you for
the opportunity to appear before you today.
My name is Andrew Saul, and I am honored to be here. I want
to thank the President for nominating me to serve as
Commissioner of the Social Security Administration.
The Social Security programs touch the lives of almost
every American. Being nominated to this position is a
tremendous privilege and an awesome responsibility. I am
humbled by the opportunity to help the agency deliver critical
service to the American people.
I would like to introduce my wife of 50 years, my two
daughters, and my two sons-in-law, who are sitting right behind
me.
I am fortunate to have had a long, successful career, both
in public service and in the private sector, and to have been
able to serve in non-profit organizations. My experience will
serve me well, should I be confirmed.
I have worked as Vice Chairman and Chairman of the Finance
Committee of the Metropolitan Transportation Authority, New
York's regional transportation system and our Nation's largest
public transportation network. As Chairman, I have been
intimately involved in the budget, procurement, and public
financing issues related to running a $20-billion operation.
I have also served as vice chairman of the Mount Sinai
Health System and long-time chairman of the Audit and
Compliance Committee. Mount Sinai, located in New York City, is
one of our Nation's largest health systems. In addition, I have
served as trustee and chairman of the Audit Committee of the
National Gallery of Art.
In these roles, I have learned a great deal about how to
audit and monitor large institutions to ensure that operations
are transparent and dollars well-spent. My work at Mount Sinai
has also afforded an up-close view of health-care institutions,
systems, and delivery of services.
I started my career in the private sector. I worked for 20
years growing and managing two large publicly traded apparel
chains. Under my management, these chains grew into national
retailers, including hundreds of stores employing thousands of
workers.
The operational challenges I faced there are similar to
those facing SSA. I understand the importance of having modern
systems that allow these retail locations to be connected to a
national center. I worked hard to build a senior executive core
from within and train our employees from the ground up.
Servicing the consumer is the key to success in the retail
business.
But I am most proud of my work with the Federal Thrift
Investment Board. President Bush nominated me, and I was
confirmed by the Senate to be Chairman of the Federal Thrift
Investment Board. The Board administers the Thrift Savings
Plan, which provides military and Federal employees the
opportunity to save for additional retirement security.
When I took over as Chairman, the systems of the Board were
in bad shape. I worked hard to lead the Board to modernize its
systems and technologies and to restructure the executive staff
and personnel functions.
During my chairmanship, the FTIB introduced the popular
life cycle funds, which provide automatic, professionally
designed asset allocation. In addition to increasing investment
offerings, we increased TSP participation and simultaneously
and substantially reduced participants' costs.
We improved the TSP website and made it, along with toll-
free telephone service centers, user-friendly options for
service and up-to-date information.
Today the TSP is a very different plan than it was in 2002.
It is considered one of the most successful 401(k) plans in the
Nation.
I consider my work there to be one of my greatest life-time
accomplishments. When President Bush left office, President
Obama asked me to continue as Chairman. I did not hesitate to
agree.
I am grateful for the opportunity to serve as Commissioner
of Social Security. I know the SSA is filled with people who
are dedicated to the mission of serving millions of Americans,
but I know that the agency also needs leadership and increased
executive accountability. If confirmed, I will work to help the
SSA to have the right organization to serve and be responsive
to the American public and millions of beneficiaries.
I will work to improve the disability adjudication process
to reduce both the appeals backlog and wait times, which are
unacceptable. And finally, I will make sure the SSA systems are
modern and updated, as I did with the Thrift Investment Board.
Thank you for the opportunity to talk to you, and I look
forward to working with you. I am happy now to take your
questions.
The Chairman. Well, thank you so much. We are so happy to
have you here and happy you are willing to do this very
important work.
[The prepared statement of Mr. Saul appears in the
appendix.]
The Chairman. Now I have some obligatory questions that I
ask all nominees.
First, is there anything in your background that might
present a conflict of interest with the duties of the office to
which you have been nominated?
Mr. Saul. No, sir.
The Chairman. Okay.
Do you know of any reason, personal or otherwise, that
would in any way prevent you from fully and honorably
discharging the responsibilities of the office to which you
have been nominated?
Mr. Saul. No, sir.
The Chairman. Do you agree, without reservation, to respond
to any reasonable summons to appear and testify before any duly
constituted committee of the Congress, if you are confirmed?
Mr. Saul. Yes, sir.
The Chairman. Finally, do you commit to provide a proper
response in writing to any questions addressed to you by any
Senator of this committee?
Mr. Saul. Yes, sir.
The Chairman. Well, thank you.
Mr. Saul, in some of your private-sector work, you ran some
companies that likely had main headquarter offices, but also
had numerous stores or outlets. Similarly, and considering
being Commissioner of Social Security, you will be working at a
headquarters office in Woodlawn, MD, as well as in DC, but you
would also have to attend to operations of numerous regional
and field offices.
Drawing from your experiences in the private sector, do you
believe that it will be a value to have regular contacts with
the ``boots on the ground'' field office workers and the
beneficiaries they serve?
Mr. Saul. Well, Senator, if I am confirmed as Commissioner,
my motto at the SSA will be to bring service to the
beneficiaries. As you said, I have been in the retail business
most of my life, and the lifeblood of the retail business is to
serve the consumer. And it is very similar to the situation
that we have at SSA.
In the retail business, we had thousands--at one time--
outlets spread around the United States, in almost all 50
States, and the ability to service the customer in all these
far-flung locations was crucial to the success of any retailer.
And I believe, if I am confirmed as Commissioner of Social
Security, my primary job will be to service the beneficiaries.
And that means the people who are out in the district offices
as well as on the Internet, the website.
The Chairman. Well, thank you.
Mr. Saul, during budget discussions over agency funding
during the Obama administration, political appointees at the
Social Security Administration or SSA had manipulated and
cherry-picked data about SSA's budget to the authorizing
committees, appropriators, and various advocacy groups. Numbers
were put out that I spent literally years trying to corroborate
yet could not, even using data supplied by SSA itself.
Eventually SSA essentially conceded that some unnamed
political appointee or appointees had likely misstated budget
data, and I believe politics drove the misstatements. Now, make
no mistakes, when it comes to Social Security, there is plenty
of politicking that takes place.
Mr. Saul, if confirmed, will you work with the Congress to
ensure that we can believe the numbers that come out of the
Social Security Administration and that your focus will be on
delivering the best service possible to beneficiaries and
program participants?
Mr. Saul. If I am confirmed, Mr. Chairman, the most
important thing, as I said, will be to provide efficient and
transparent services to all the beneficiaries. And I assure you
that the transparency that I talked about will be evident in my
relationship with all the legislative oversight committees.
The Chairman. Well, thank you.
Mr. Saul, for many years there has been concern about
efforts at SSA to update information, and information
technology or IT. In the not-distant past, SSA essentially
wasted hundreds of millions of dollars on projects that went
nowhere.
Toward the end of the Obama administration, some new
approaches were tried, and those trials continue to this day.
It remains to be seen if they will prove successful. Yet when
it comes to sometimes complex systems such as the IT systems at
SSA, a great deal of technological sophistication is necessary.
And that is where specialization comes in.
In looking at changes to IT systems--and given that you
will likely hear from people internal to SSA about what the
best solutions are, and you will hear from outside companies--
how would you go about evaluating these companies or those
company claims and deciding on what would be the best way for
an IT project at SSA to go?
Mr. Saul. Well, as I said, Mr. Chairman, in my previous
experience at the Federal Retirement Board, I inherited a
completely failed system that basically was not functional at
the time I took over as Chairman. We had major lawsuits, and we
had to clean up a failed system with over a $100-million loss
to the taxpayers with nothing to show.
I am very aware what can go wrong in a big government
agency if these systems are not well thought-out.
So one of my primary tasks in the first 6 months or a year
will be to sit down and review the modernization plan that is
in place at the Social Security Administration from top to
bottom. I want to be sure that what we are doing is going to
work for the present and for the future, in the interests of
the beneficiaries.
I consider this to be one of the most important parts of my
job, if I am successfully confirmed.
The Chairman. Well, thank you.
My time is up. I will turn to my partner, Senator Wyden.
Senator Wyden. Thank you, Mr. Chairman.
Mr. Saul, for 7 years I was director of the Oregon Gray
Panthers before I was elected to Congress. So I have been in a
lot of Social Security offices over the years.
What I saw a few weeks ago really bothered me. I arrived
before the office opened. There was a line of people that
stretched around the building.
And we followed up, and people all came back and said these
long waits are common. Of course, face-to-face in a field
office is one of the key ways to secure your rights, in
addition to online and by mobile.
And here is my question. On the backlog, the previous two
Commissioners promised to fix the problem, and it has not been
fixed. So what are you going to do differently to actually fix
it so we will not see what I saw just a couple of weeks ago
when I visited a field office?
Mr. Saul. Well, the first thing I would like to comment on
is the field offices, Senator, if I might. As I said, I
understand that the field office is where the rubber meets the
road.
When you talk about service to the beneficiaries, there is
nothing more important than the personal contact in these
1,200-plus offices spread throughout our Nation. So I will,
number one, as I promised you, get out not only to Oregon, but
into many locations around the country. Before I know what I
can do, I believe I am going to have to really get out there
and see what the problems are, as you experienced in Oregon.
I seriously mean that. And I did that at the retail
business. I spent so much of my time out in the stores seeing
the interplay with the customers. And that is what I think is
going to be paramount to deliver the service.
Senator Wyden. So will you commit this morning to
maintaining the field office option for the many seniors and
many Americans who need or want to meet with an actual person?
Mr. Saul. If I am confirmed, I will be very careful how we
deal with the existing field offices.
I can----
Senator Wyden. That is different than saying, as I hoped,
``On my watch, we are not going to lose these critical
opportunities for serving our constituents.''
Mr. Saul. I can promise you, Senator, that I will go out
there, and before any decisions are made in any of the field
offices, I will understand what the conditions are there in
that locale, and nothing will be done without my okay.
Senator Wyden. I told you also that I hoped that you would
visit the hearing office in Eugene, OR, which has one of the
worst backlogs in the country, days and days longer than the
national average. So I hope that you will do that.
Mr. Saul. I made a commitment, Senator, and I hope you will
join me there. But we will be out, and we will be in Eugene.
Senator Wyden. Count on it.
Okay. I want to get your position on Social Security
privatization, because you were a board member of a very
prominent think tank that was all gung-ho for President George
W. Bush's effort to privatize Social Security.
Did you support efforts to privatize Social Security during
the Bush administration?
Mr. Saul. Senator, I became involved in the Manhattan
Institute when I was Vice Chairman and the Westchester County
Commissioner at the MTA.
The Manhattan Institute was dedicated to efficient local
and State government. And that is what interests me being so--
--
Senator Wyden. But you did not support efforts to privatize
Social Security during the Bush administration?
Mr. Saul. No, sir.
Senator Wyden. Great. Do you support efforts to privatize
Social Security now?
Mr. Saul. My job, if I am confirmed as Commissioner,
Senator, is to deliver services to the beneficiary.
I believe something like privatization should be left for
the Treasury Department and for the legislative branch. I am
the manager of the agency, and that is what I will dedicate my
time to.
Senator Wyden. I want to ask just one other quick question,
and that is about the agency's independent nonpartisan status.
Do you pledge this morning that you will run the Social
Security Administration in a nonpartisan way? Because you are
going to see lots of politics. I mean we saw Larry Kudlow, the
head of the National Economic Council, making comments about
how, beginning in the next Congress, this was going to be one
of his targets.
So I want to make sure we are going to get a Commissioner
who is going to be independent and nonpartisan. Will you pledge
to that?
Mr. Saul. Yes, sir.
And may I just say one thing in answer to that?
Senator Wyden. Of course.
Mr. Saul. I think if you look at my record at the Federal
Retirement Board, I ran that agency in a totally nonpartisan
way. Again, I was there to serve the participants at the
Retirement Board.
And when President Bush's term was over, I was very proud
that all 14 Federal unions had written a letter to President
Obama and Senator Schumer--which I know has been distributed to
you--requesting that I remain as Chairman. And I was called by
the Obama personnel department and the Obama White House and
asked to stay on.
And in fact, after President Bush left, I stayed for 3\1/2\
years under the Obama administration, which to me is a
testament to the fact that I ran a nonpartisan--totally
nonpartisan--operation.
Senator Wyden. Thank you, Mr. Chairman.
The Chairman. Thank you.
Senator Scott?
Senator Scott. Thank you, Mr. Chairman.
Thank you, Mr. Saul, for being here this morning, and thank
you for your time in my office last week. I truly appreciate
that.
Last May in a quiet neighborhood, the FBI arrested a man
who was running a synthetic ID fraud farm. He had stolen over
500 identities, mostly from children, to open over 750 credit
card accounts.
Synthetic ID fraud, during which a criminal steals a
person's Social Security number and creates a new identity, is
an $8-billion a year scam. That is why a bipartisan group of
colleagues from this committee and I pushed my Protecting
Children From Identity Theft Act.
The legislation directs the SSA to make technology upgrades
that will make it easier to stop synthetic ID fraud. The best
part is that the taxpayers will not have to pick up the check.
Mr. Saul, can you speak to the growing problem of synthetic
ID fraud and how this legislation could be helpful? And will
you commit to prioritizing enactment of such law?
Mr. Saul. Well, Senator, as we discussed, I am aware of
this very important part of the banking bill. I will support
this totally. I think it is a win-win for everybody.
As you said, in your remarks, this is being financed by the
private sector.
Senator Scott. Yes.
Mr. Saul. And we are currently, as you know, doing this on
a manual basis for select institutions. And I think to go
nationwide with this thing is a terrific thing, and I am all in
on this. You have my assurance.
Senator Scott. Thank you, Mr. Saul.
And thank you for understanding and appreciating the
severity and the challenge that we face from an ID theft
perspective.
On the Social Security disability backlog, I am sure you
will hear a lot of thoughts and comments and perhaps many
questions on the importance of figuring out a better way for us
to move forward. More than a million Americans are waiting for
their hearing to see whether or not they qualify for disability
benefits through Social Security.
The average wait is around 2 years. For those folks who
really need the benefit and are qualified for the benefit, we
have to find a way to do it better.
I would love to hear any ideas that you may have or that
you are thinking about that would help shorten wait times. That
is my first question.
My second question is that it is nearly impossible for an
organization the size of SSA to not fall victim to waste,
fraud, and abuse. How can we figure out safeguards to protect
taxpayers?
Mr. Saul. Well, on the second question, I think in the long
run, the only way you are going to be able to do this in such a
large organization is through modern systems. That is why
technology modernization is going to be so important for this
agency.
As I said to Senator Wyden, I expect to spend a tremendous
amount of my time reviewing the whole systems that are
currently in force. As far as the disability problem, nobody
here, including myself--I do not think anybody is happy with
the way this thing has been running. There are a lot of
problems there. I do not claim to know the problems now. I have
to get in there, Senator, and see what the problems are.
And I take this very seriously--people having to wait 2
years, people who really are in bad shape and need this help.
So, one of my priorities along with the systems, and obviously
the management, is going to be reviewing top to bottom the
whole disability situation.
And I cannot answer you that now, and I do not think you
would expect me to. But I commit to this committee to spend the
time necessary to get to the bottom of what is going on here.
And we will fix the problem.
Senator Scott. Thank you.
My final question is based on the fact that we at some
point have to have an honest conversation about the Social
Security Trust Fund and how we keep kicking the can down the
road as it relates to funding the challenges around its lack of
liquidity and its ability to meet the obligations beyond 2032
or 2037 or whenever the date is. We keep moving the date when
the benefits could see a shortfall or have to be reduced.
I would love to hear, after you have had some time on the
job, about ways that we can avoid that cliff and perhaps even
extend the health and the life of Social Security for those
folks who have become very dependent on the benefit. I think it
is incumbent upon us to start thinking about the future beyond
2-year, or 4-year, or 6-year increments, but thinking about it
from a generational perspective, and maybe even one day
returning to an actuarially sound Social Security.
Thank you.
The Chairman. Okay.
Senator Menendez?
Senator Menendez. Thank you, Mr. Chairman.
Mr. Saul, congratulations on your nomination. Over 67
million Americans rely on Social Security. Do you support the
ideas and goals of Social Security?
Mr. Saul. Absolutely. Totally.
Senator Menendez. Okay.
Now, I heard your response to Senator Wyden before with
reference to the field offices, but if confirmed, will you
commit to working with this committee to clear the Social
Security backlog?
Mr. Saul. Absolutely.
Senator Menendez. In order to meet the growing number of
recipients who will interact with the Social Security
Administration--an estimated 10,000 baby boomers each day hit
retirement age--will you ensure that the employees under your
office are adequately supported?
Mr. Saul. Yes. Well, one of the things, Senator, that we
have not talked about yet is the whole personnel situation.
As the chairman and the ranking member have stated, this is
an agency that has not had confirmed management for a long
time. And one of the other key items besides technology, which
we talked about--and the whole disability problem--is the
management structure of the organization. That is the other
piece that I will be spending a tremendous amount of time on
over the next, hopefully year, if I am confirmed, to ensure
that the organization table that is currently in existence is
correct for a modern and large organization such as SSA.
I also want to be sure that we have the right people in the
proper positions there. Then, the most important thing after
that is to be sure that these people have a responsibility when
they are given a job to be accountable to get it done. And that
accountability is the service to the beneficiaries.
Senator Menendez. I appreciate that answer. I appreciate
management structure and accountability. I also understand that
when you have 10,000 baby boomers a day who are moving into
retirement age, that the demands on the Administration, the
Social Security Administration, will be greater.
So, after you do all of your management reviews, if you
need to be properly resourced, I hope that you will pursue that
as well.
Mr. Saul. Senator, before I ask for any money, I want to
make sure that we are spending the money that we have wisely.
And I did that at the Retirement Board.
But you can be sure if we need money after we have done
this, I will be back here.
Senator Menendez. Well, as a baby boomer who spent his
entire life in public service, I am looking forward to, when it
comes time, being efficiently treated.
So you sat on the board of a think tank that has some
troubling views of Social Security, blaming it for spiraling
deficits, while ignoring the harm of deficit-busting tax plans
that had a deficit as well. Do you share the same views as that
think tank about Social Security?
Mr. Saul. I joined the Manhattan Institute because I was
very interested in the efficiency of State and local
government. In 2002, when I became Chairman of the Federal
Retirement Board, I basically terminated my involvement with
the Manhattan Institute.
I did not even realize at that time or now that they had
done this much work on Social Security, because my interest
there was State and local government and efficiency because of
my activities, which was very important to me at the
Metropolitan Transit Authority.
Senator Menendez. So now knowing that they did, do you
share those views?
Mr. Saul. No. I believe that my job is to run this
organization efficiently. I will leave those kind of issues to
the legislative branch and to the Treasury Department, sir.
Senator Menendez. Now, you mentioned in your statement that
you will improve the disability adjudication process. Could you
give me, for example, two quick bullets of what you think can
be done to achieve that?
Mr. Saul. I would rather not, because I really want to get
in there and understand what is going on. It is not working
well. There is no question about that. I realize the
seriousness of it.
As I said to Senator Scott, I realize there are a lot of
problems there. But I want the opportunity, Senator, to get in,
get out into the field--which we talked about--see what is
going on, and then we will see what we have to do----
Senator Menendez. Well, the processing time for these
claims keeps increasing, even as the number of applications
decreases each year.
Mr. Saul. Right.
Senator Menendez. That delta is certainly something that
needs to be bridged.
Mr. Saul. No, it is troubling. And I say nobody--I am going
to repeat again--nobody is happy, including myself. I am not an
expert in it, but I will be by the time we talk again.
Senator Menendez. I will just close by saying this is an
incredibly important position, because the well-being of
millions of people who actually rely upon Social Security as
part of their retirement security--who may not have all the
other benefits at the end of the day that others have--is
critical. So I look forward to continuing to hear where you are
going in this regard.
The Chairman. Thank you, Senator.
Senator Carper?
Senator Carper. Mr. Saul, thanks so much for being here
with us today. Thanks for visiting with my staff and me in our
office.
You mentioned that your wife is here today, and there are
several women sitting in the front row. I am not sure which one
is your wife.
Mr. Saul. Right behind me. That is simple.
Senator Carper. All right, 50 years. Okay.
Mr. Saul. Fifty years, proudly so.
Senator Carper. Thanks for sharing him in a number of
roles.
Why have you been successful as a leader of a variety of
different organizations? What are your keys to success? How
might they apply to this challenge before you?
Mr. Saul. Well, Senator, I think you have to understand the
mission. And when you understand the mission, then you have to
be focused on that mission. And I think that goes for anything
you do, whether it is running for office or managing an
organization. You have to be a focused individual with a goal
in mind.
Senator Carper. Joe Biden likes to say that all diplomacy
is personal. He also says that all politics is personal. I
think he is right.
I would suggest one of the things you have done well so far
is, you have gone around and met a number of my colleagues for
us to get a chance to take measure of you and to learn a bit
more about who you are and what you have done. I just want to
mention a couple of names that might be helpful for you to call
on when you have some time.
One of them is the guy who runs GAO, the Government
Accountability Office. His name is Gene Dodaro, and the folks
who are your sherpas can help you track him down. But should
you get confirmed--I think you just might--Gene Dodaro and the
people at GAO spend a whole lot of time focusing on the Social
Security Administration. He could be a great friend and ally. I
urge you to get to know him, and soon.
You have an Inspector General in the Inspector General's
office within Social Security. They can be a bit of a pain
sometimes, but I think for the most part they can do a lot more
good and help you than would otherwise be the case. I urge you
to get to know your Inspector General and his or her team too.
Your Finance Committee is your oversight committee. And
from time to time you will have the opportunity to come and
testify before us, give us an update, or ask us for things that
we can do, should do.
What I find is always helpful when you come before us is to
say, these are things that are going well, these are the things
that are not, and these are the things that you could do that
would help me, help us serve the people across this country
better.
Also, there is an Appropriations subcommittee--I think it
is called the Labor, Health, and Education Subcommittee, that
is the Appropriations subcommittee for the Social Security
Administration. And I would urge you to get to know especially
the members, Democrat and Republican members of that
subcommittee, so they will know you just as we are getting to
know you here today.
I want to talk with you briefly about a problem my staff
and I, along with a number of our colleagues, have been working
on for some time that is called curbing improper payments. Last
year GAO tells us that improper payments to deceased
individuals were incredibly high. Improper payments throughout
the Federal Government last year came in at about $144
billion--billion with a ``b.''
And as you may know, the Social Security Administration
maintains the Nation's most complete database of deceased
persons. It is known as the full death file. I call it the
``master death file.''
People say, what is the ``master death file''? I say it is
a file you do not want your name to appear on because, if it
does, you are dead. [Laughter.]
But this is the only complete database of deceased
individuals currently available in the Federal Government.
This list of death data is simply not shared with the
agencies that need it to combat improper payments. Again,
improper payments totaled $144 billion last year.
For quite a while, years in fact, I worked with a number of
my Democratic and Republican colleagues to address this issue
through legislation that would mandate the Social Security
Administration more closely share the death information that it
is responsible for. The latest official--as I said--improper
payment estimate is about $144 billion.
There is also a story that was in the news, I think earlier
this year, about how many people whom the Social Security
Administration has on file who are, I think, about the age of
112. The number was 5 million--5 million people at the age of
112.
I thought that was pretty interesting. There might be 12 of
that age, but there are not 5 million. I just want to put that
in front of you.
But any thoughts that you have about legislation that would
mandate the Social Security Administration more widely share
the death information that it is responsible for--are there any
thoughts that you have on that? You may have never thought
about this at all.
Mr. Saul. No, I have. I know now that I believe the Social
Security Administration does provide this information to other
agencies of our government, when it is legal.
I know we are restricted in certain cases because of
privacy and so forth, so that we cannot provide all this
information. But I do support the transparency and the
communication with other agencies.
Senator Carper. I think there is a shared responsibility--
and I will close with this--a shared responsibility for us to
make sure that what I call the ``master death file'' is
actually as accurate--more accurate than it is already. And to
the extent that we make it ever more accurate, we should be
able to provide and share that with other relevant Federal
agencies so that they can reduce some of this $144 billion in
improper payments.
Thank you.
The Chairman. Senator McCaskill?
Senator McCaskill. Thank you, Mr. Chairman. I certainly
want to echo Senator Carper's comments about sharing data.
There is way too much territorial stuff going on in government,
and there are all kinds of ways that we can protect people's
privacy. There are a lot of taxpayer dollars wasted because
information is not shared real-time in a way that is efficient
and effective. And the death data is, frankly, one of the most
obvious examples that I would hope you would put on your top
three priority list for getting that fixed so other parts of
government can make sure we are not sending payments to people
who are no longer with us.
On the bill that Senator Scott mentioned, he and I, along
with Senator Cassidy, worked on that bill on synthetic ID
fraud. What I wanted to bring to your attention is, this is an
opportunity that we have to upgrade the existing IT
infrastructure at SSA.
But I am concerned, because the Social Security
Administration has told us that it is more likely to build a
whole new system. Now, I have seen this over and over again at
the Pentagon, where things get siloed, and well, this is not
exactly what this is so, therefore, let us go out and let us
scope new requirements.
And inevitably, government has a tendency to ask the IT
experts what they need, and no wonder that the IT experts that
are going to build the system tell them they need a lot, or
maybe more than they do, because it is in their best interests
to make it large and complex and, therefore, very expensive. So
I am concerned when Federal agencies start from scratch,
especially in 2018.
I know that you are not yet in this, but I would like your
commitment on the record that you will take a look, a long
look, at whether or not it is a much better use of this money--
and the great thing is, this is the private sector that is
paying for most of this--if it is better used upgrading the
current IT system rather than building another one from
scratch.
Mr. Saul. Well, Senator, you are right on, because that
was--just what you describe--the downfall of the system, if you
remember, at the Federal Retirement Board. Why the thing failed
is exactly what you said.
The system got out of control. There were bells and
whistles for every possible thing. We were building a
rocketship to go to Mars instead of a functional working
system.
So I saw under my own--well, it was not under my watch,
because I took over, unfortunately, as this whole mess
transpired. I am scared to death of this, and I am very aware
of this. That is why I said in my opening remarks that we have
to go through the whole modernization plan, a to z, and be sure
that what is there makes sense, is workable, as you say, and
will satisfy the needs of the SSA.
And you have my commitment to do that.
Senator McCaskill. And there is off-the-shelf stuff
available.
Mr. Saul. I agree.
Senator McCaskill. That is the other thing.
Mr. Saul. Absolutely.
Senator McCaskill. When you do not do it off-the-shelf,
then you can indulge this idea that we are going to have all
these bells and whistles and we can just push this button and
get to know all this even though that is not the central reason
that the system is being built.
So I have seen a number of companies that have finally--
finally the army gave up on DCGS and went to a private
contractor, because the people in the field were using the
system that already existed, the software that already existed,
as opposed to the bells and whistles, from-scratch software
system. And if people in America knew the billions and billions
and billions of dollars wasted on IT acquisitions in the
Federal Government, they would be even madder than they are
now, which is hard.
The last question I have for you, briefly, is, you had
mentioned to me when we visited before the hearing how proud
you were of your relationship with the unions, the hardworking
people in the Federal Government who have chosen to
collectively bargain. I am very concerned at what appears to me
this administration's proclivity to run over the law as it
relates to collective bargaining agreements.
Can I get your commitment on the record that you will
follow the law as to the rights and responsibilities of both
the management of Federal agencies and the people who are
represented in the collective bargaining agreements?
Mr. Saul. Absolutely, Senator.
Senator McCaskill. Thank you, Mr. Chairman.
The Chairman. Senator Whitehouse?
Senator Whitehouse. Thank you, Mr. Chairman.
Welcome, Mr. Saul. I appreciate your willingness to take
this on. I think my questions are probably going to be a bit
redundant with some of the ones you have already received on
our side, but as you know, Social Security has become a bit of
a political battleground between those who want to cut it or
privatize it and those who try to defend it for the folks who
rely on it.
I simply want to make--let me start by defining my terms.
You know what a Fifth Column is?
Mr. Saul. Yes.
Senator Whitehouse. Yes. It goes back to the Spanish Civil
War, and the Fifth Column was the people inside the city
prepared to sabotage on behalf of the attackers. I just want
your assurance that you will not be a part of or party to any
Fifth Column within Social Security out to try to affect the
fight that we may have to have in Congress over defending
Social Security.
Mr. Saul. I can just state again, Senator, as I stated
quite a few times here, my job--and I believe this is what I
did at the Retirement Board, and that is why I was so
successful--is to deliver the service for the beneficiaries.
And I am going to leave the policy and these changes that you
are referring to to the legislative branch and the Treasury
Department. I am going to run the place in an efficient,
transparent manner.
Senator Whitehouse. Perfect. Thank you.
And I guess I would ask a similar question as it relates to
efforts to privatize Social Security. There are obviously very
big financial interests that would love to get their hands on
the amount of revenue and assets that are associated with
Social Security.
I think it would be a terrible mistake to let that happen
because of all the potential conflicts of interest and added
costs and so forth. But without litigating that point between
us, I simply want your assurance that you do not intend to go
in to take sides in favor of the forces of privatization and
that you will let us fight that and give us whatever
information we need that will be straight-up, legit, factual,
real information and not canted or tilted to one side or
another.
Mr. Saul. Again, I do not think what you are referring to
is the Commissioner's job. And I will pledge to you to be the
support person, to make sure that all parties, interested
parties, have accurate, transparent information.
Senator Whitehouse. Great.
From the large-scale issues, now I will go to a very, very
small one that I am sure you are not even familiar with. And my
point in this question is to flag it for you.
As you probably know, Social Security Disability Insurance
ordinarily requires a 5-month waiting period for somebody who
claims a medical disability. The fundamental reason for that is
that it provides a period in which somebody can get better,
basically. So you do not want to put somebody on disability and
go through all that rigmarole, and 5 months later they are
better. And that has been, I think, the convention for why
there is that 5-month delay.
With the support of Chairman Hatch, which I appreciate very
much, we have a proposal to suspend the 5-month waiting period
for people who are diagnosed with ALS, with Lou Gehrig's
disease. Nobody, historically speaking, has ever gotten better.
And the physical decline that takes place is best prepared for
and addressed from the earliest stages of the diagnosis.
As you know, it is a particularly heart-breaking disease. I
am hoping very much that if I ask you for information relative
to administration, or relative to costs, or relative to our
efforts to try to exempt people diagnosed with ALS from that 5-
month waiting period, that you will give this some attention or
at least hand it off to somebody we can work with so that, in
the conversations that we are having across the aisle on this
subject, we are working off good, effective, proper
information.
Mr. Saul. Well, Senator, I saw a very good friend of mine
pass away last year from ALS, and I realize what a deadly
disease it is. Again, I think I would like the opportunity to
get in here, take a look at the whole disability process.
I do not think there is anybody sitting in this room who is
completely happy with the way the process is working, including
myself. I realize how serious it is, because there are a lot of
people who really need this. And the 2-year wait is just an
unacceptable thing.
So just give me a chance to get in there--I told you this
is one of the key things that has to be focused on.
Senator Whitehouse. Good. Well, expect to be hearing from
me on that minor, but I think important point.
And again, I thank the chairman for the very helpful and
productive conversations we have had about trying to find a
remedy for this predicament. Thank you.
The Chairman. Well, thank you. I appreciate those comments.
Senator Thune?
Senator Thune. Thank you, Mr. Chairman.
Mr. Saul, thank you for being here, and congratulations on
your nomination.
As you know--and you have probably been asked these
questions in different ways today--but as you know, Social
Security is critical to millions of Americans and more than
175,000 South Dakotans. During your time as Chairman of the
Federal Retirement Thrift Investment Board, you have shared
that you were able to successfully reduce the costs to
participants, and it sounds like run the Thrift Savings Plan
efficiently.
So my question is, what actions or principles can you take
from your work there and apply to reducing administrative costs
and to promoting greater efficiency at the Social Security
Administration?
Mr. Saul. Well, I think it is a lot of the things we talked
about, Senator. Obviously the whole personnel and organization
structure, having the right people in the right place to be
able to deliver the services to the beneficiary, is number one.
And we talked about it in the field offices, and we talked
about it throughout the organization. That is number one.
Number two, we have to go back to the technology part of
this thing, because I do not believe you can ever really be
happy with what is going on there without modern, up-to-date
systems that work and are able to deliver those services. So I
think those are two of the things that are really important.
And really, I do not think it made much difference whether
it was in the retail business, where we had these multiple
locations that I have described before, or if it was at the
Retirement Board. I think the Retirement Board and the SSA are
very similar in a lot of ways. The organizations deliver
services to the beneficiary or deliver services to the
participant, as it was at the Retirement Board.
Senator Thune. And you mentioned sort of modernizing those
systems, the technology, in the same position that you held. I
understand that you oversaw the implementation of the record-
keeping computer system that, before your time, had faced years
of setbacks and ultimately cost plan participants.
Knowing that the Social Security Administration currently
relies on an outdated IT infrastructure and that modernization
is needed, if confirmed, what is your approach to ensuring that
IT projects are completed in a timely fashion and within
budget?
Mr. Saul. The first thing we have to do is analyze the
modernization plan that is in place now, be sure it is right
for the short term, be sure it is right for the long term. The
second thing we have to do is be sure that the personnel are
there to manage the systems today and to build the new systems
for the future.
This is going to be crucial to the success of the Social
Security Administration in the future. And I realize this.
You know, on one hand we have to run it day to day and be
sure we are providing the services that we talked about in the
offices, but on the other hand we have to be sure we are
building something for the future that is going to work. And I
had the experience at the Retirement Board, as I said before,
of seeing what happens when the train goes off the track. And
it was a heck of a mess. A tremendous amount of money was
wasted.
So I am very concerned. I am scared to death of the
systems, I have to tell you that. And I intend to be sure what
we are doing is well thought-out.
Senator Thune. Well, I hope you can draw on your previous
experience in bringing about some of those reforms and changes
and modernization, because obviously it is heavily depended
upon by millions of people across this country.
Mr. Chairman, I would just say too, and I think this issue
has been raised about solvency of the Social Security programs
in this country, and I realize that the job to which Mr. Saul
has been nominated is to run the agency and make sure it is run
efficiently. But I do think we have to address the issue of
solvency--and sooner rather than later.
As I mentioned earlier, we have 175,000 South Dakotans who
depend upon Social Security, but a whole lot more who are going
to be retiring in the years ahead. As we all know, on its
current trajectory that program will not be there for a lot of
those people, at least in its current form, it is not going to
be sustainable.
So it is high time for us to do the hard work up here and
to bring about the necessary reforms that will enable future
Americans who also have paid into that system to be able to
benefit from it when that time comes. So I hope that our
committee will begin that important work in the very near
future.
Thank you.
The Chairman. Thank you, Senator.
Senator Wyden?
Senator Wyden. Thank you very much, Mr. Chairman.
I have two additional questions and one closing comment,
with respect to where we go from here.
Let me talk to you about privacy and cybersecurity for a
moment, Mr. Saul. I know Senator Thune is here, and he has a
great interest in this as well.
We had the hack, of course, at OPM, at IRS, and it is
pretty clear that Social Security would be a prime target for
the people who were interested in these hacks. The agency is
trying to phase out these archaic legacy systems. Some of what
is there is in code older than many of my staff people.
I am really a privacy hawk as it relates to protecting
people's personal data in situations like this, their identity,
particularly securing it and protecting it throughout your
business process. In the last year, I have really been pushing
the agency to follow the guidelines on passwords, password
guidance, as it is called, from the National Institutes of
Standards and Technology, and also to promote multi-factor
authentication, which again is another kind of process for
protecting people's data.
What are you going to do, if you are confirmed, to protect
the data of millions of Americans from cyber-attacks?
Mr. Saul. Well, Senator, this is the kind of nightmare that
keeps you awake at night. I understand that everybody's
identification, every person who lives in this Nation, who
works, is held within the systems of the Social Security
Administration. So cybersecurity is going to be a priority in
reviewing the whole systems operation there.
We have to make sure--look, nothing is infallible, and as
we know, the most sophisticated companies and systems can fall
prey to this--but I will assure you that I will do whatever we
possibly, humanly can to protect this data. And I agree with
you 100-
percent; I take this very seriously.
Senator Wyden. In the questions I am going to give you for
the record that I need answers on before we vote, there are
going to be two areas. One, specifics with respect to the
backlog--and I want to know what you are going to do
differently than the two people who sat where you did and were
confirmed and said they were going to deal with the backlog. So
that is number one.
Number two, I want you to tell me what you are going to do
with respect to the letters that I have sent to the agency
saying you need to do password guidance in line with state-of-
the-art approaches and multi-factor technology, which is a way
to beef up the authentication of people's data.
So those are going to be the two areas where I need
specifics with respect to what you are going to do, if
confirmed.
The other area I would just like to ask about is, we have
been contacted by the disability advocates. There has been a
tradition of the Commissioner meeting with the disability
advocates quarterly. Here we are talking about Arc, the
Consortium for Citizens With Disabilities, legal aid folks--
which are my roots, so people are not surprised that I mention
them.
Will you reinstitute that quarterly practice of meeting
with those folks?
Mr. Saul. Senator, I would like to have the ability to meet
with the senior staff to talk to them and to see what has been
the past practice at the agency.
Senator Wyden. I just told you what the past practice was.
Mr. Saul. I assure you that you have my support, but I want
the opportunity just to be able to see what has been done.
Senator Wyden. Okay.
That is the third area where I am going to need a written
answer, because what has been done is, there have been regular
meetings with those folks. And of course people understand why
they are exasperated. These are the people who do not have
power, they do not have clout, they do not have big political
action committees, and they are vulnerable and want to be
heard.
So I look forward to your written answers. I have told the
chairman that I am going to work with him on this. I do need
answers to those questions before we go ahead.
I thought you were candid in the office, and I need some
candor in those three areas that I will be submitting to you
with respect to written questions. I think there may be some
other areas that we have gotten questions over the transom, but
I look forward to working with you, Mr. Chairman, on this.
The Chairman. Thank you, Senator Wyden.
Mr. Saul, as you are aware, SSA is mandated to provide
support for a large number of other Federal programs, including
the death master file, Medicare, Medicaid, E-Verify, Help
America Vote Act, et cetera, some veterans benefits, and so on.
Some of this work comes at significant cost to the agency and
the taxpayer. If confirmed, would you work with Congress to
assess agency effectiveness providing these services and
ensuring that, when SSA is effectively working for another
agency or program, the SSA gets adequate reimbursement?
Mr. Saul. Yes, Mr. Chairman, I give you that assurance.
The Chairman. That is great.
You know, I am really impressed with you and your
willingness to serve the people of this country in a very, very
important position that we all rely on. So I just want to
personally compliment you, your wife, your family, for being
willing to give this kind of time to our government and to the
American people. You are a good guy, and we want to get you
through as quickly as we can.
Senator Wyden. Mr. Chairman, I am sorry; there is a matter
that Senator Casey brought up----
The Chairman. Okay.
Senator Wyden [continuing]. With respect to a procedural
process as it relates to disability rights. It is called the
reconsideration step that Senator Casey is concerned about. He
would like to have a question about ensuring protection for
folks who are dealing with disability claims. I would just ask
unanimous consent that the question that Senator Casey feels
strongly about, which I do as well, also be something you
respond to as well, Mr. Saul.
Thank you for that courtesy, Mr. Chairman.
The Chairman. Thank you. I want to thank everybody for
attending this and their participation in this hearing today.
I would once more like to thank Mr. Saul for his
willingness to serve. We really appreciate you and your
willingness.
I ask that any member who wishes to submit questions for
the record, please do so by the close of business Thursday,
October 4th.
Mr. Saul, you have acquitted yourself very, very well. I am
proud of you.
And with that, the hearing is adjourned.
Mr. Saul. Thank you, Mr. Chairman.
[Whereupon, at 11:48 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Prepared Statement of Hon. Orrin G. Hatch,
a U.S. Senator From Utah
WASHINGTON--Senate Finance Committee Chairman Orrin Hatch (R-Utah)
today delivered the following opening statement at a hearing to
consider the nomination of Andrew Saul to be Commissioner of the Social
Security Administration.
This morning we are meeting to discuss the nomination of Andrew
Saul to be Commissioner of Social Security. This is a long-overdue
nomination. Mr. Saul, if confirmed, will become the first confirmed
Commissioner at the Social Security Administration since 2013. I
believe that most, if not all, of my colleagues here agree that having
a confirmed Commissioner, and sustained leadership, will benefit the
Social Security Administration, its operations, its employees, and the
American people who rely on their checks arriving on time.
Mr. Saul, if confirmed, you will be taking charge of an agency
facing many challenges, including persistent information technology
modernization issues and large work backlogs. Last week, I laid out
some of these challenges at a nomination hearing for another important
position at the agency. This agency needs someone in charge to help
reduce disability-determination backlogs and workload backlogs. Those
backlogs at the Social Security Administration are unacceptable to
many, if not most, of us here in the Senate, and are not fair for the
American people and Social Security beneficiaries. Operational issues
at the agency need your immediate attention, and we look forward to
your leadership in addressing them.
I am pleased to see in your background, Mr. Saul, that you have
decades of experience in both financial decision-making and in
successfully managing and growing organizations. I believe that this
experience helped you understand that you cannot run the Social
Security Administration by spending all of your time in Woodlawn, MD
and DC. Understanding what is happening in field and regional offices
is critical in the role of executive leader of the agency.
Before turning to my friend, Ranking Member Wyden, let me briefly
address the fact that the President has nominated Mr. Saul to serve the
remainder of the 6-year term that expires January 19, 2019. Today's
hearing will not consider the second nomination, which involves service
for the following 6-year term that expires January 19, 2025. Let me be
clear that we are not considering the second nomination with respect to
Senate procedure, and not with respect to your qualifications to serve.
In particular, the second nomination would involve the Senate
acting on a nomination which, strictly speaking, would be properly
before the next Senate. Setting a Senate precedent that we could
consider a possible sequence of future terms could bind future Senates
improperly. Therefore, we will not be setting such a precedent today.
Once again, to be clear, the issue is Senate procedure and
precedent. The issue is not whether you would be qualified to serve as
Social Security Commissioner for both the duration of this term and the
following 6-year term. I am confident, and I expect, that if you are
confirmed today for the first nomination, your nomination before the
116th Congress will be taken up as promptly as possible next year.
______
Additional Statement From Chairman Orrin G. Hatch
It is disappointing the ranking member feels a need to question a
statement that I made during the hearing to consider the nomination of
Andrew Saul to be Commissioner of the Social Security Administration
(SSA). I stand by everything I said during my questioning of Mr. Saul,
including concerns about budget summary data that SSA put out,
purportedly supported by underlying data, during the Obama
administration that could not be corroborated using SAA's own
underlying data. If budget data from any agency are not supportable by
underlying facts in the agency's own accounting data, there is every
reason to be concerned, especially if there is a potential that release
of the unsupportable data has political undertones. The ranking member
cites, in his ``Additional Statement,'' figures related to a 10-percent
decline ``since 2010'' in a relatively new creation by SSA of a ``core
operating budget,'' even though my remarks during Mr. Saul's nomination
hearing said nothing about a 10-percent decline or the ranking member's
identification of the period of such a decline between 2010 and,
presumably, 2017. Moreover, I believe that identification of a similar
finding by the Congressional Research Service of a 10-percent decline
in the ``general LAE,'' which presumably is an analog to the ``core
operating budget,'' is irrelevant.
______
Prepared Statement of Hon. Andrew M. Saul, Nominated to be
Commissioner, Social Security Administration
Chairman Hatch, Ranking Member Wyden, members of the committee,
thank you for the opportunity to appear before you today. My name is
Andrew Saul, and I am honored to be here.
I want to thank the President for nominating me to serve as
Commissioner of the Social Security Administration. The Social Security
programs touch the lives of almost every American. Being nominated to
this position is a tremendous privilege and an awesome responsibility.
I am humbled by the opportunity to help the agency to deliver critical
services to the American people.
I would like to introduce my wife of 50 years, and my daughters and
my son-in-laws.
I am fortunate to have had a long-successful career, both in public
service and in the private sector, and to have been able to serve in
non-profit organizations.
My experience will serve me well, should I be confirmed. I have
worked as Vice Chairman and Chairman of the Finance Committee of the
Metropolitan Transportation Authority, New York's regional
transportation system and our Nation's largest public transportation
network. As Chairman, I have been intimately involved in the budget,
procurement, and public financing issues related to running a $20-
billion operation.
I have also served as vice chairman of the Mount Sinai Health
System, and longtime chairman of the Audit and Compliance Committee.
Mount Sinai is one of our Nation's largest health systems, located in
New York City. In addition, I have served as trustee and chairman of
the Audit Committee of the National Gallery of Art. In these roles, I
have learned a great deal about how to audit and monitor large
institutions to ensure that operations are transparent and dollars
well-spent. My work at Mount Sinai has also afforded an up-close view
of health-care institutions, systems, and delivery of services.
I started my career in the private sector. I worked for 20 years
growing and managing two large publicly traded apparel chains. Under my
management, these chains grew into national retailers, including
hundreds of stores and employing thousands of workers. The operational
challenges I faced there are similar to those facing SSA. I understand
the importance of having a local retail presence to the customer and
the importance of having modern systems that allow these retail
locations to be connected to a national center. I worked hard to build
a senior executive corps from within and train our employees from the
ground up. Servicing the consumer is the key to success in the retail
business.
But I am most proud of my work with the Federal Thrift Investment
Board. President Bush nominated me, and I was confirmed by the Senate,
to be Chairman of the Federal Thrift Investment Board. The Board
administers the Thrift Savings Plan, which provides military and
Federal employees the opportunity to save for additional retirement
security. When I took over as Chairman, the systems of the Board were
in bad shape. I worked hard to lead the Board to modernize its systems
and technologies, and to restructure the executive staff and personnel
functions.
During my chairmanship, the FTIB introduced the popular life cycle
funds, which provide automatic, professionally designed asset
allocation. In addition to increasing investment offerings, we
increased TSP participation and simultaneously and substantially
reduced participant costs. We improved the TSP website and made it and
the toll-free telephone service centers user-friendly options for
service and up-to-date information.
Today, the TSP is a very different plan than it was in 2002; it is
considered one of the most successful 401(k) plans in the Nation. I
consider my work there to be one of my greatest life-time
accomplishments. When President Bush left office and President Obama
asked me to continue as chairman, I did not hesitate to agree.
I am grateful for the opportunity to serve as Commissioner of
Social Security. I know that SSA is filled with people who are
dedicated to the mission of serving millions of Americans. But I know
that the agency also needs leadership and increased executive
accountability. If confirmed, I will work to help SSA to have the right
organization to serve and be responsive to the American public and
millions of beneficiaries. I will work to improve the disability
adjudication process to reduce both the appeals backlog and wait times,
which are unacceptable. And finally, I will make sure that SSA's
systems are modern and updated, as I did with the Thrift Investment
Board.
Thank you for the opportunity to talk to you, and I look forward t
working with you. I am happy to take your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Andrew Marshall Saul.
2. Position to which nominated: Commissioner, Social Security.
3. Date of nomination: April 17, 2018.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: November 6, 1946; New York City, NY.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
George W. Hewlett High School--1960-1964.
Wharton School of Finance, University of Pennsylvania--1964-
1968; bachelor's degree--May 1968.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
Cache, Inc., New York City--1993-2000; chairman of the board.
BR Investors, New York City--1985-1986; president.
Brooks Fashion Stores, New York City--1980-1985; president--
1968-1980; executive vice president.
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
Federal Retirement Thrift Investment Board--2002-2011;
Chairman.
Metropolitan Transportation Authority: Westchester County
Commissioner--2016-present; Vice Chairman--2006-2019; Chairman
of the Finance Committee--2006-2015; Board Member--1996-2005.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partners, non-
voting, etc.), proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, other business enterprise, or
educational or other institution):
Cache, Inc., New York City--1993-2000; chairman of the board.
BR Investors, New York City--1985-1986; president.
Brooks Fashion Stores, New York City--1980-1985; president;
1968-1980; executive vice president.
Mt. Sinai Health System; vice chairman--2007-present; chairman,
audit committee--1975-present; member executive committee--
1975-present; board of directors--1968-present.
Icahn School of Medicine at Mt. Sinai; vice chairman--2007-
present; board of directors--1968-present.
Wharton School of Finance, University of Pennsylvania; board of
overseers--1994-present.
Metropolitan Museum of Art; trustee--1999-present.
National Gallery of Art; trustee and member--2013-present.
UJA Federation of New York; former board member--2009-2014.
Sarah Neuman Nursing Home, Westchester, NY; former board
member--1997 to approximately 2007.
The Manhattan Institute, New York, NY; former board member--
1994-2008.
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships, and offices):
Mt. Sinai Health System; vice chairman--2007-present; chairman,
audit committee--1975-present; member executive committee--
1975-present; board of directors--1968-present.
Icahn School of Medicine at Mt. Sinai; vice chairman--2007-
present; board of directors--1968-present.
Wharton School of Finance, University of Pennsylvania; board of
overseers--1994-present.
Metropolitan Museum of Art; trustee--1999-present.
National Gallery of Art; trustee and member--2013-present.
UJA Federation of New York; former board member--2009-2014.
Sarah Neuman Nursing Home, Westchester, NY; former board
member--1997 to approximately 2007.
The Manhattan Institute, New York, NY; former board member--
1994-2008.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
Ran for Congress, Westchester County 19th District, dropped
candidacy before primary.
b. List all memberships and offices held in and services
rendered to all political parties or election committees
currently and during the last 10 years prior to the date of
your nomination.
Republican National Committee; Republican National Congressional
Committee; Senatorial Trust; New York State Republican Party; Regents
member since 2003.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
------------------------------------------------------------------------
Individual/ Total by
Year RNC NRCC NRSC NYS Party Year
------------------------------------------------------------------------
2008 $57,000 $10,000 $33,500 $101,200
------------------------------------------------------------------------
2009 10,000 42,500 52,500
------------------------------------------------------------------------
2010 $25,000 10,000 121,800 156,800
------------------------------------------------------------------------
2011 75,000 25,000 25,000 94,110 219,110
------------------------------------------------------------------------
2012 25,000 25,000 9,100 90,544 149,644
------------------------------------------------------------------------
2013 50,000 25,000 10,000 88,603 173,603
------------------------------------------------------------------------
2014 50,000 25,000 57,400 91,500 223,900
------------------------------------------------------------------------
2015 70,000 33,400 33,400 94,000 230,800
------------------------------------------------------------------------
2016 75,000 25,000 35,000 68,573 203,573
------------------------------------------------------------------------
2017 135,000 35,000 35,000 267,590 472,590
------------------------------------------------------------------------
2018 25,000 35,000 3,000 63,000
------------------------------------------------------------------------
Total $625,000 $278,400 $249,900 $815,721 $1,969,021
------------------------------------------------------------------------
Itemization of Contributions
Type Date Number Name Memo Amount
Check 01/30/2008 8217 NYS $5,000.00
Republican
Party
Check 02/06/2008 8221 New York 10,000.00
County
Republican
Committee
Check 03/06/2008 8276 R.A.C.C. 5,000.00
Check 03/12/2008 8302 Westchester 1,500.00
Republican
County
Committee
Check 04/29/2008 8396 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 05/05/2008 8403 McCain 57,700.00
Victory
2008
Check 05/20/2008 8440 New York 2,000.00
State
Conservati
ve Party
Check 10/21/2008 8718 Committee 1,000.00
to elect
Caesar
Trunzo
Check 10/21/2008 8719 Committee 2,500.00
to elect
Serphin
Maltese
Check 10/21/2008 8720 Committee 2,500.00
to elect
Michael
Ranzenhoef
er
Check 10/21/2008 8721 Committee 1,000.00
to elect
Joe Robach
Check 10/21/2008 8722 Committee 1,000.00
to elect
Frank
Padavan
Check 10/21/2008 8723 Committee 1,000.00
to elect
Dennis
Delano
Check 10/21/2008 8724 Committee 1,000.00
to elect
Dave Renzi
Check 01/26/2009 8920 Westchester 1,500.00
Republican
County
Committee
Check 03/04/2009 8998 Tedisco for 3,000.00
Congress
Check 04/02/2009 9062 New York 10,000.00
County
Republican
Committee
Check 04/06/2009 9077 Friends of 5,000.00
Rob
Astorino
Check 06/08/2009 9215 Friends of 250.00
Lee
Roberts
Check 07/10/2009 9306 Friends of 5,000.00
Rob
Astorino
Check 07/14/2009 9305 Rob VOID 0.00
Astorino
for County
Executive
Check 10/14/2009 9494 Committee 1,000.00
to Elect
Dan Schorr
Check 10/19/2009 9505 Friends of 5,000.00
Rob
Astorino
Check 10/27/2009 9523 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 11/02/2009 9536 Friends of 5,000.00
Rob
Astorino
Check 12/09/2009 9613 Republican 5,000.00
Assembly
Campaign
Committee
Check 01/04/2010 9665 New York 50,000.00
Republican
State
Committee
Check 01/11/2010 9680 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 02/04/2010 9725 New York 1,000.00
Republican
County
Committee
Check 02/24/2010 9773 Chris Cox 1,000.00
for
Congress
Check 04/21/2010 9902 New York 10,000.00
County
Republican
Committee
Check 06/28/2010 10030 Friends of 4,800.00
Nan
Hayworth
Check 08/17/2010 10136 Committee 500.00
to Elect
Mary Beth
Murphy
Check 08/18/2010 10156 Taxpayers 5,000.00
for Wilson
Check 09/07/2010 10173 Saland for 500.00
Senate
Check 09/21/2010 10208 Westchester 1,500.00
Republican
County
Committee
Check 09/21/2010 10214 Friends of 200.00
Mike
Ramondelli
Check 09/27/2010 10229 Phillips 500.00
for
Congress
Check 09/27/2010 10230 Randy 1,000.00
Altschuler
for
Congress
Check 09/28/2010 10233 Castelli 400.00
2010
Check 09/29/2010 10237 Aiming High Mitch 5,000.00
PAC Daniels
Check 10/04/2010 10241 Richard 1,000.00
Hanna for
Congress
Check 10/04/2010 10242 Republican 25,000.00
National
Congressio
nal
Campaign
Committee
Check 10/19/2010 10281 Quinn for 2,000.00
New York
Check 10/19/2010 10282 Zeldin for 2,000.00
Senate
Check 10/19/2010 10283 Como for 2,000.00
Senator
Check 10/19/2010 10284 Bob Cohen 2,000.00
2010
Check 10/19/2010 10285 Reformers 2,000.00
for Russo
Check 10/19/2010 10286 Friends of 2,000.00
Patricia
Ritchie
Check 10/19/2010 10287 New Yorkers 2,000.00
on the
Ball
Check 10/19/2010 10288 Senate 10,000.00
Republican
Campaign
Committee
Check 10/27/2010 10300 Michel 2,000.00
Faulkner
for
Congress
Check 10/27/2010 10302 Donovan 5,000.00
2010
Check 11/01/2010 10311 Taxpayers 5,000.00
for Wilson
Check 11/10/2010 10322 Randy 2,400.00
Altschuler
for
Congress
Recount
Fund
Check 04/11/2011 343 New York 25,000.00
Republican
State
Committee
Check 05/09/2011 409 Republican 25,000.00
National
Congressio
nal
Campaign
Committee
Check 05/09/2011 419 Westchester 25,000.00
Republican
County
Committee
Check 05/10/2011 424 Friends of 1,500.00
Peter
Michaelis
Check 05/23/2011 445 National 25,000.00
Republican
Senatorial
Committee
Check 06/13/2011 497 Bedford VOID: $300 0.00
Town check
Republican never
Committee cashed
Check 07/06/2011 543 New York 25,000.00
Republican
State
Committee
Check 07/25/2011 567 Republican 25,000.00
National
Committee
Check 09/06/2011 642 Turner for VOID 0.00
Congress
2011
Check 09/06/2011 643 Turner for 500.00
Congress
2011
Check 10/18/2011 747 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 10/20/2011 755 Friends of 1,000.00
Peter
Michaelis
Check 12/07/2011 861 Republican 25,000.00
National
Committee
Check 12/12/2011 873 Cash Waiter 12/8/ 200.00
2011
Check 12/12/2011 874 Cash Waiter 12/8/ 200.00
2011
Check 12/12/2011 875 Waiter 12/8/ 200.00
2011
Check 12/12/2011 876 Cash Waiter 12/8/ 200.00
2011
Check 12/12/2011 877 Cash Waiter 12/8/ 200.00
2011
Check 12/12/2011 878 Cash Coat Check 110.00
P12/8/2011
Check 12/20/2011 906 Republicn 25,000.00
National
Committee
Check 01/17/2012 955 Fifth RNC 4,060.00
Seventy
Seven Inc.
Deposit 01/26/2012 004229 Buffet -1,170.00
Reimb--P12/
8/2011
Check 02/13/2012 1022 Randy 2,500.00
Altschuler
for
Congress
Check 03/02/2012 1064 Friends of 5,000.00
Rob
Astorino
Check 04/18/2012 1174 NYS 25,000.00
Republican
Party
Check 05/03/2012 1205 Romney 25,000.00
Victory,
Inc.
Check 05/22/2012 1240 Republican 25,000.00
National
Congressio
nal
Campaign
Committee
Check 06/05/2012 1269 Knickerbock S045--Funct 4,354.22
er Club ion #1230
Check 06/11/2012 1288 Bedford 300.00
Town
Republican
Committee
Check 06/21/2012 1319 Friends of 5,000.00
Bob Cohen
Check 08/10/2012 1391 Jeff Flake VOID 0.00
for
Congress
Check 08/10/2012 1392 Brown for VOID: Stop 0.00
Senate Payment
12/3/2012
Check 08/10/2012 1393 National Denise 9,100.00
Republican
Senatorial
Committee
Check 08/28/2012 1434 Jeff Flake 10,000.00
for U.S.
Senate
Check 09/10/2012 1469 NYS 25,000.00
Republican
Party
Check 10/11/2012 1540 Saland for 500.00
Senate
Check 10/18/2012 1569 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 05/22/2013 2059 Republican 25,000.00
National
Committee
Check 05/29/2013 2075 NYS 25,000.00
Republican
Party
Check 09/16/2013 2275 Republican 25,000.00
National
Congressio
nal
Campaign
Committee
Check 09/30/2013 2322 NYS 25,000.00
Republican
Party
Check 10/23/2013 2380 Senate 10,000.00
Republican
Campaign
Committee
Check 12/03/2013 2450 McConnell 10,000.00
Senate
Committee
Check 12/20/2013 2513 Republican 25,000.00
National
Committee
Check 02/10/2014 2599 Molinaro 500.00
for
Dutchess
Check 05/19/2014 3191 NYS 25,000.00
Republican
Party
Check 06/16/2014 3243 Republican 25,000.00
National
Congressio
nal
Campaign
Committee
Check 08/01/2014 3337 American National 32,400.00
Express Republican
Senate
Committee-
- 7/14/14
Check 09/15/2014 3417 NYS 25,000.00
Republican
Party
Check 09/29/2014 3447 NYS Senate 10,000.00
Republican
Campaign
Committee
Check 09/29/2014 Friends of VOID 0.00
Nan
Hayworth
Check 09/29/2014 3452 Friends of 5,000.00
Nan
Hayworth
Check 10/06/2014 3457 American Republican 50,000.00
Express National
Committee
9/15/14
Check 10/09/2014 3473 The Thom 2,600.00
Tillis
Committee
Check 10/14/2014 3475 Chase Card Bill 5,200.00
Services Cassidy
Check 11/03/2014 3531 American Ernst, 15,600.00
Express Sullivan,
and
Perdue--$5
,200 each
Check 11/17/2014 3560 Chase Card Targeted 10,000.00
Services State
Victory
Check 11/17/2014 3560 Chase Card Friends of 5,000.00
Services Cahill
Check 12/08/2014 3593 Chase Card Senate 2,600.00
Services Battlegrou
nd Fund
Check 12/08/2014 3596 American NYS Senate 10,000.00
Express Republican
-P10/30/
2014
Check 03/02/2015 3766 American Right to 25,000.00
Express Rise Super
Pac--Jeb
Bush
Check 04/06/2015 3819 American Team Mitch 5,000.00
Express
Check 06/01/2015 3967 American NRSC CMDI 33,400.00
Express
Check 06/08/2015 3982 Bedford 300.00
Town
Republican
Committee
Check 06/15/2015 3994 Chase Card Republican 33,400.00
Services Congressio
nal
Committee
Check 06/15/2015 3994 Chase Card NY 10,000.00
Services Republican
State
Committee
Check 06/15/2015 3994 Chase Card NY 15,000.00
Services Republican
State
Committee
Check 07/02/2015 4020 American Republican 1,600.00
Express National
Committee
Check 07/02/2015 4020 American Republican 33,400.00
Express National
Committee
Check 10/22/2015 4211 Westchester 10,000.00
Republican
Committee
Check 10/22/2015 4219 Friends of 1,000.00
Francis T.
Corcoran
Check 11/02/2015 4231 American Faso for 2,700.00
Express Congress
Check 11/02/2015 4231 American RNC 1,600.00
Express
Check 11/02/2015 4231 American RNC 33,400.00
Express
Check 11/16/2015 4258 Chase Card NY 25,000.00
Services Republican
State
Committee
Check 05/02/2016 4583 American NY 25,000.00
Express Republican
State
Committee
Check 05/09/2016 4589 Chase Card RNC 35,000.00
Services
Deposit 05/09/2016 12163 Refund from -2,927.50
Right to
Rise--J.Bu
sh
Check 07/27/2016 4734 American NY 2,000.00
Express Republican
State
Committee
Check 07/27/2016 4734 American Friends of 5,000.00
Express Rob
Astorino
Check 07/27/2016 4734 American Oliva for 2,700.00
Express Congress
Check 10/03/2016 4830 American NRSC 35,000.00
Express
Check 10/03/2016 4830 American NYGOP 25,000.00
Express
Check 10/11/2016 4848 Chase Card NYS Senate 10,000.00
Services Republican
Campaign
Check 10/31/2016 4892 American NRCC 25,000.00
Express
Check 12/05/2016 4966 American Faso for 1,500.00
Express Congress
Check 01/03/2017 5022 American 58th 180,000.00
Express Presidenti
al
Inaugurati
on
Check 02/23/2017 5139 JPMorgan NRCC 35,000.00
Card
Check 02/27/2017 5152 American NRSC 35,000.00
Express
Check 02/27/2017 5152 American NYGOP 25,000.00
Express
Check 04/03/2017 5212 American RNC 35,000.00
Express
Check 07/24/2017 5430 JPMorgan NYGOP 25,000.00
Card
Check 10/02/2017 5543 American Rob 10,000.00
Express Astorino
Check 10/10/2017 5566 Knickerbock S045--Funct 2,090.39
er Club ion #6255
Check 10/23/2017 5596 Citi Cards Orangetown 500.00
Republican
Committee
Check 11/01/2017 American RNC--Trump 100,000.00
Express Pence
Victory
Check 12/04/2017 5694 American NYGOP 25,000.00
Express
Check 01/03/2018 5744 American Team Graham 1,000.00
Express
Check 01/08/2018 5760 Perdue for 2020 Re- 2,600.00
Senate election
campaign
Deposit 01/08/2018 2033 Perdue for -2,600.00
Senate
refund
2013-2014
campaign
Check 02/20/2018 5833 The 1,000.00
Committee
to Elect
Terrence
Murphy
Check 04/02/2018 5914 American Saccone 1,000.00
Express Victory
Sent Form 2/27/2018 American Protect the 25,000.00
Express House--NRC
C
3/13/2018 Visa Julie 1,000.00
Killian
for State
Senate
4/2/2018 American Chairman's 35,000.00
Express Victory
Fund--NRSC
Total 2,030,021
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
United Hospital Fund, Distinguished Trustee--1999.
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
None.
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
None.
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I have a desire to serve my country. I have extensive
experience with various Federal, State, and private entities.
For 20 years I was in the private sector growing and managing
two large publicly traded mall-based retailing apparel chains.
Brooks Fashion Stores, a New York Stock Exchange-traded
company, grew to over 500 stores under my management until it
was sold in a leveraged buyout to BR Investors in 1984. Brooks
was a national chain operating in over 40 States employing over
5,000 people. As CEO I had to deal with technological
innovations, management decisions, and various crisis
management.
Management of the executive force was a great part of my
responsibilities. Productivity using enhanced technology was
most important to improve the profit performance. During my
tenure, we trained and built within the organization many of
our senior executives. At Brooks, my leadership as CEO was
responsible for the improved profit performance which enabled
the sale of Brooks to BR Investors.
Cache, another mall-based apparel retailer, grew to over 300
stores under my leadership. Cache was a publicly traded NASDAQ-
listed stock. As with Brooks, Cache had similar management and
technological challenges. In 2000 I left my position as
chairman and over the next years exited my ownership position.
In 2002, President Bush nominated me and I was confirmed by the
Senate to the position as Chairman of the Federal Thrift
Investment Board. As Chairman, I presided over the
modernization of all the systems and investment offerings. As
Chairman, my responsibilities included the management of the
executives and employees of the agency. I was responsible for
promotions and restructuring of the executive staff and
personnel functions. When President Bush left office, President
Obama asked me to continue as Chairman, and therefore I have
served both Presidents.
During my chairmanship, we substantially reduced the costs to
the participants while at the same time increased the offerings
and more than doubled the size of the Thrift Savings Plan. I am
most proud of my accomplishments and loved government service.
Today, the Thrift Savings Plan, which I had a major impact on,
is considered to be one of the foremost and successful 401(k)
plans in the Nation. I consider this to be one of my greatest
life-time accomplishments.
As Vice Chairman and Chairman of the Finance Committee of the
Metropolitan Transportation Authority, our Nation's largest
public transportation system, I have gained a great amount of
experience in budgeting, procurement, and public financing
issues. As long-time Finance Chairman, I was intimately
involved in all the financial issues of running a $20-billion-
plus entity.
I have served as long-time chairman of the audit and compliance
committee of the Mount Sinai Health System. I have experience
in all the efforts that one might expect in chairing the
committee of one of the major not-for-profit hospital systems.
I also serve as chairman of the audit committees of the
National Gallery of Art and Metropolitan Museum of Art, which
experiences have furthered my financial acumen.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
No; however, I have consulted with representatives from the
U.S. Office of Government Ethics and the Designated Agency
Ethics Official for the Social Security Administration
regarding potential conflicts of interest. I have signed an
ethics agreement that details the actions I will take to avoid
any potential conflicts of interest. I have provided a copy of
the agreement with this questionnaire.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
I have consulted with representatives from the U.S. Office of
Government Ethics and the Designated Agency Ethics Official for
the Social Security Administration regarding potential
conflicts of interest regarding my investments and the position
to which I have been nominated. I have signed an ethics
agreement that details the actions I will take to avoid any
potential conflicts of interest. I have provided a copy of the
agreement with this questionnaire.
2. Describe any business relationship, dealing or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
None.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
government need not be listed.
None.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
I have consulted with representatives from the U.S. Office of
Government Ethics and the Designated Agency Ethics Official for
the Social Security Administration regarding potential
conflicts of interest regarding my investments and the position
to which I have been nominated. I have signed an ethics
agreement that details the actions I will take to avoid any
potential conflicts of interest. I have provided a copy of the
agreement with this questionnaire.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
Copies provided.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
In 2012 I had a biking incident at a New York City reservoir
roadway across from my home in Westchester. I was briefly
detained by the Department of Environmental Protection Officer
for riding a bike on a questionably controlled roadway. I was
not charged nor issued a summons.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
Roger W. Mehle vs. Andrew M. Saul, et al. Civil Action 03--
0111. While I was Chairman of the Federal Retirement Board the
former chairman sued myself and my fellow board members in
Civil Court in Washington, claiming that we acted improperly in
settling a contract dispute involving a failed computer system.
The contract was executed prior to our joining the agency. The
suit was eventually dropped in its entirety. The Board was
represented by the U.S. Justice Department.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Hon. Andrew M. Saul
Questions Submitted by Hon. Orrin G. Hatch
Question. Like any agency, SSA is always on the lookout for
increased funding. I suspect you will, if confirmed, act no
differently. Given resource constraints that we all face, I'd like to
note that the SSA has been spending millions of dollars on various
research activities, the utility of which is questionable. For example,
last year SSA spend $10 million on the Retirement Disability
Consortium, and 72 percent of their total output was working papers
that likely would be published even if SSA wasn't the funding source.
Let me recall that in 2015, some of us in Congress were looking for
ways to improve the Disability Insurance program as part of the Social
Security reforms that President Obama signed into law in that year.
During debates running up to that law, I asked SSA what we had learned,
and what their research has shown, that can help guide reform efforts.
The answer I got was simply a list of past working papers. And while I
am sure that professors and other researchers enjoy having their papers
funded, if there is little to no return on investment for SSA, perhaps
all the research money that SSA doles out could be used instead to help
beneficiaries of Social Security.
If confirmed, will you commit to taking a serious look at the
efficacy of research funding that SSA doles out?
Answer. I agree that the taxpayers' dollars should be spent wisely.
If confirmed, I will look at the Social Security Administration's (SSA)
research funding.
Question. Millions of applicants for Social Security Disability
Insurance have endured significant wait times given large backlogs of
processed cases. According to SSA's own projections, it will be years
before existing backlogs are resolved. I think it is fair to say that
there is bipartisan concern about the backlogs, and bipartisan interest
in seeing them reduced. So, Mr. Saul, I wonder if you have any thoughts
on the backlogs, which I am sure you have studied, and whether you'll
be willing to work hard to resolve today's outsized backlogs?
Answer. As I said during the hearing, improving the disability
adjudication process, including reducing wait times and hearings
backlogs, is one of my top priorities, and I am committed to reviewing
the entire disability adjudication process from start to finish. I will
devote my attention to this critical issue, if confirmed.
Question. According to a recent SSA-funded survey, only about 1 in
6 non-retirees had ever heard of My Social Security and only half of
those had set up an online account. Also, when Social Statements
stopped being mailed back in 2011, reported earning corrections
decreased dramatically.
Do you have any thoughts on how the agency could help Americans
check their reported earnings for corrections, understand the benefits
and better prepare for retirement, without becoming a fiduciary?
Would you be willing to look into testing the communications with
respect to earnings and possible future benefits?
Answer. I understand that accurate earnings records are key to
ensuring proper payment of Social Security benefits. It is critical
that Americans can check and correct their earnings easily, and better
understand their benefits. If confirmed, I will be briefed on the
current communications strategy and see how it can be improved.
Question. SSA has a variety of ``demonstration projects'' going on,
to test possible programmatic changes for effectiveness. Too often,
however, it seems as though the projects do not have an end date or
sometimes continue beyond specified end dates. So they effectively
become back-door public policymaking. Will you look into SSA's
demonstration project activities to ensure that there are appropriate
objectives, metrics with which to measure progress or lack of progress,
and end dates?
Answer. Yes.
Question. Social Security Disability Insurance determinations rely
on an official jobs listing to determine whether or not individuals can
perform any job that exists in the national economy. Yet, that official
job listing has not been updated for decades. While the listings
include jobs such as ``seal killer'' and ``telegram messenger,'' there
is no mention of the Internet. Do you believe it is important to update
this job listing?
Answer. I agree that the disability program should reflect today's
job market, as well as technological changes and medical advances. All
three will be part of my review of the entire disability adjudication
process.
Question. In 2014, a whistleblower notified Congress that SSA spent
$300 million developing a failing in-house program. To date, SSA has
spent $449 million dollars on this failed project even though a
Commercial Off-The-Shelf (COTS) program has existed for decades and
reportedly is being fully modernized at private expense. As incoming
Commissioner with the opportunity to reverse any wasteful spending
practices, what would you do to prevent this continued waste of
taxpayer funding?
Answer. I understand SSA is developing an in-house system and that
it is fairly far along. If confirmed, I will review the progress of the
development and report back to you. Regarding IT as a whole, as I
indicated during my hearing, IT modernization will be one of my top
priorities, and I am committed to ensuring that taxpayer dollars are
used wisely.
Question. SSA has stated, for the record, throughout the lengthy
history of the Disability Case Processing System (DCPS) that the States
have the option not to accept DCPS. Further, Congress has expressly
reminded SSA through appropriations language that the States have the
right to choose an alternative Commercial Off-The-Shelf (COTS) solution
with Congress also directing SSA to support this right of choice. As
incoming Commissioner, how will you view this congressional directive
and support the States right to choose an alternative COTS solution?
Answer. I am aware of the appropriations language. If confirmed, I
will look into this project and be transparent with Congress about its
progress.
______
Questions Submitted by Hon. Chuck Grassley
Question. The Office of Inspector General has identified seven
issues they consider the most serious management and performance
challenges facing SSA. These include a need to improve customer
service, modernize information technology, increase the security of
information systems, reduce improper payments, improve the
administration of the disability programs, strengthen transparency and
accountability, and enhance the integrity and protection of Social
Security Numbers. If confirmed, how would you go about prioritizing
these serious management issues? Are there any other challenges, not
identified by the Inspector General, that you believe should be a high
priority for the next Commissioner?
Answer. The Office of Inspector General (OIG) identified several
challenges facing the agency, including the three that I identified as
priorities during the hearing: improving the disability adjudication
process, including reducing wait times and appeals backlogs;
modernizing the IT infrastructure; and increasing executive and
management accountability. If confirmed, I plan to address these three
issues, and will work to review and address the others.
Question. In your written testimony you commit to working to reduce
the backlog and wait times for Social Security Disability cases. The
disability backlog has long been a concern of Congress and a stated
priority of SSA. Earlier this year, Congress even appropriated an
additional $100 million for SSA to help address the backlog. Yet, there
still doesn't appear to be much progress. In your view, what must be
done to address the backlog? Is the answer more money, or is this an
issue that must be addressed through administrative and program
efficiencies?
Answer. I find that the backlogs and wait times are unacceptable.
If confirmed, I plan to review the disability adjudication process from
start to finish, and will work with agency experts and other
stakeholders to explore options for improving the entire process. If I
find that additional resources are warranted, I will say so.
Question. In recent years, the Social Security Administration has
sought to expand the number of online services that it offers to
beneficiaries. This includes allowing beneficiaries to create free
personal online account where they can manage their benefits, check
benefits statements, and request a replacement Social Security Card
among other options. It's good to see SSA using technology to better
serve their customers. However, I know for some elderly Iowans,
particularly those that may have limited access to rural broadband,
online services are no substitute for a physical local Social Security
office. Do you agree that it remains critical for SSA to maintain well-
staffed local offices where beneficiaries can access face-to-face
services?
Answer. I understand the important role local Social Security
offices play in delivering service and maintaining personal contact
with the public. That said, I also understand the important role that
online services play for many beneficiaries. To provide the best
service to the public, we have to have the right balance of services.
If confirmed, one of my priorities will be a review of the agency's
customer service plans.
Question. According to reports in The Des Moines Register and other
news outlets, Cristhian Bahena Rivera, an undocumented immigrant who is
currently on trial for murder in Iowa, began using a fraudulently
obtained Social Security number in 2014 through the time of his arrest
this summer. Reports indicate that the SSN he used belonged to an Ohio
man, John Budd, and that the same number was receiving wages in three
different States all at the same time.
To your knowledge, did the Social Security Administration know that
this SSN was being used in three different States at the same time? If
you don't know, will you find out?
To your knowledge, did the SSA know that this SSN was being used
fraudulently? If you don't know, will you find out?
What mechanisms does the SSA have in place to flag when and whether
SSNs have been or are being used fraudulently?
Will you commit to combatting SSN fraud if confirmed to the
position of Commissioner?
Does the SSA know when an SSN is being used in multiple
jurisdictions--even across State lines?
If so, what does the SSA do when that occurs?
Answer. I share your concern about SSN misuse and fraud. At this
time, I am not able to provide specific answers to your questions about
SSA policies and practices as I have had limited interactions with the
agency, pending the Senate's consideration of my nomination. However,
if confirmed, I will certainly commit to working with the OIG to combat
SSN fraud and look at the other issues you raise.
Question. In 2016, the IRS determined that more than 1 million
Americans' SSNs were stolen by undocumented immigrants. On July 11,
2017, I sent a letter to then-IRS Commissioner Koskinen, demanding
answers about undocumented immigrants fraudulently using another's SSN
to gain employment.
Do you know right now how many Americans' SSNs are being used
fraudulently by undocumented immigrant workers?
To your knowledge, does the SSA keep an account, or accounting, for
all earnings associated with incorrect or fictitious SSNs? This has at
times been referred to as the ``earnings suspense file.''
Do you know what fraction of the earnings suspense file corresponds
to the earnings of undocumented immigrants?
In the name of transparency, will you commit to alerting Congress
and the American people of how many SSNs are currently being used by
undocumented immigrants? And will you commit to informing the American
people how much money the SSA receives from those undocumented
immigrants?
Answer. I am not able to provide answers to your specific questions
regarding SSA policies and practices, or the exact data SSA maintains
regarding workers and earnings. If confirmed, I will work with the OIG
and reach out to the Internal Revenue Service (IRS) to look at the
totality of the issues you raise.
Question. Is the SSA legally or statutorily barred from sharing
information about suspect SSN usage with law enforcement, including
Federal immigration authorities? If not, which section in the U.S.
Code, or which law, would you or the SSA cite for this prohibition of
information sharing?
Answer. If confirmed, I will work with you and SSA's General
Counsel to provide the appropriate statutory citations regarding
information sharing.
______
Questions Submitted by Hon. Patrick J. Toomey
Question. Since the passage of tax reform, there has been an
increased demand for workers throughout the country. However, some
individuals are still left on the sidelines. While not all disability
beneficiaries can return to work, over 40 percent of beneficiaries said
they were interested in working in a 2015 survey conducted by the
Social Security Administration. However, in a given year, fewer than
one half of one percent of disability beneficiaries leave the rolls due
to earnings from work. Beneficiaries who want to return to work face
complicated rules and work incentives that discourage re-entering the
workforce.
If confirmed, how would you, as Commissioner, work to make it
easier for Disability Insurance beneficiaries who want to go back to
work to do so?
Answer. If confirmed, I will review the agency's current strategies
for promoting awareness of work incentives and collaborate with
Congress to seek solutions to support beneficiaries' efforts to return
to work. In addition, I understand that the President's budgets include
proposals to test alternative program designs to help individuals with
disabilities stay in the labor force and assist individuals with
temporary disabilities return to work.
Question. State and local government workers who participate in
separate pension systems and then transition to jobs that are covered
by Social Security are subject to the Windfall Elimination Provision--
an arbitrary, one-size-fits-all formula that is not representative of
what they pay into Social Security. Often, workers do not even realize
they are subject to this reduction because it is not shown on their
Social Security benefits statement and is only shown once the worker
files for Social Security. I have a bill that would resolve this issue
for first responders, who can be hit harder by this reduction because
they tend to retire earlier.
If confirmed, how would you, as Commissioner, work to address these
issues and provide fair treatment to these State and local government
workers?
Answer. If confirmed, I would provide assistance regarding the
technical aspects of the statutory requirements related to Social
Security coverage for State and local government workers, as well as
SSA's administration of those requirements.
______
Questions Submitted by Hon. Dean Heller
Question. Social Security is the bedrock of financial security for
many retired Americans. In my home State, over 500,000 Nevadans today
rely on Social Security. For many Nevadans, these benefits mean the
ability to retire with dignity or the security of knowing that if they
become disabled, they will be protected. This program has served as a
vital safety net for retirees and disabled workers for over 75 years.
In order to ensure that Nevada's current and future retirees
receive the benefits they were promised and deserve, Congress has a
responsibility to protect and preserve Social Security. If you are
confirmed, you will be responsible for overseeing one of the Nation's
largest and most important domestic programs.
If confirmed, how do you intend to strengthen and preserve Social
Security for current and future beneficiaries?
Answer. I believe in protecting taxpayers' hard-earned dollars
through the effective management of the Social Security programs. If
confirmed as Commissioner, my focus will be on managing the agency and
tackling the three key challenges I believe the agency faces: improving
the disability adjudication process, including reducing wait times and
appeals backlogs; modernizing the IT infrastructure; and increasing
executive and management accountability.
I also believe strongly in transparency and will work with you and
Congress to ensure we act as good stewards of the programs. That said,
I believe issues related to reforming the programs should be left to
the Treasury Department and the legislative branch.
Question. Last week, this committee had the Social Security
Administration (SSA) Inspector General nominee before it to discuss the
importance of detecting and combating waste, fraud, and abuse to ensure
that those who qualify for Social Security receive their benefits
without delay or error.
If confirmed, how will you prioritize combating waste, fraud, and
abuse to ensure that Nevada's seniors receive the benefits they have
earned and deserve?
Answer. I strongly believe that the agency must spend taxpayer
dollars in an efficient manner. If confirmed, I will certainly work to
combat waste, fraud, and abuse, and I will work closely and
collaboratively with the Inspector General (IG) on these issues.
Question. In your testimony, you cite several challenges facing the
SSA--issues ranging from disability-determination backlogs to an aging
IT infrastructure.
If confirmed, how will you prioritize addressing these challenges
and others facing the SSA? Specifically, how will you ensure those
waiting for a determination on disability benefits are not left waiting
months or years on end to get an answer?
Answer. I share your concern about wait times, and I know the
agency and Congress have been dealing with this issue for some time.
Improving the disability adjudication process is one of my top
priorities. If confirmed, I plan to take a close and thorough look at
the entire process from start to finish, and review the agency's
current plans. If changes need to be made, I will make them. I will
also work with you and Congress in a transparent way to ensure we serve
claimants and beneficiaries as best we can.
______
Questions Submitted by Hon. Tim Scott
Question. I greatly appreciate your public and private commitment
to prioritizing the enactment of the Protecting Children From Identity
Theft Act, which comprises section 215 of S. 2155. Doing so will save
countless Americans from becoming victims of synthetic ID fraud and the
financial and emotional toll that comes with having your Social
Security number stolen.
Please answer the following with specificity.
SSA staff has suggested the administration is more likely to build
a whole new system to comply with this law versus simply upgrading
existing technology resources. I'm concerned about the impact such a
move will have on the ultimate cost for database users. What is your
opinion on the best path forward?
Answer. I am aware of the legislation and am committed to
implementing it. I do not yet know the details of SSA's plans regarding
construction of the system. If confirmed, I will look into this to
determine if the current system could meet the statutory requirements
and the needs of the end users, or if a new system is needed.
Question. It was not my intention to make SSA a bank regulator. The
administration has enough on its plate. Are you willing to work with
the Federal banking agencies to find a simple way to verify that the
entities accessing the system are, in fact, chartered and insured
depository institutions or their intermediaries? And can you confirm
that SSA will not develop or impose other requirements not authorized
in section 215 of S. 2155, or otherwise re-interpret other existing
regulations, precedents, or laws in relation to enactment of section
215 of S. 2155?
Answer. I agree that SSA is not and should not be a bank regulator.
That is not the agency's mission. If confirmed, I will look into these
issues to ensure SSA meets its statutory obligations under section 215
of S. 2155 and other applicable laws.
______
Questions Submitted by Hon. Bill Cassidy
Question. I asked a similar question to another nominee a few
months ago. I'd like to reiterate it here and get your thoughts.
I am very concerned about Social Security and Medicare, and I'm
committed to protecting these benefits for workers. If we do nothing,
benefits will be subject to harsh cuts. And this is not some problem
for years down the road, it is at our doorstep.
To address the Social Security shortfall today, we will be looking
at a 17-percent across-the-board benefit cut. If we limit cuts to
future retirees, the cut for them would be 21 percent. If we wait until
2034 to address Social Security, the across-the-board cut would be 23
percent. Trying to limit cuts to future retirees becomes unfeasible at
that point.
Also, we're told the Medicare Hospital Trust Fund has an insolvency
date of 2026. A key problem on the Medicare side is skyrocketing
health-care costs. I'm working with colleagues to address the cost side
to help put these health benefits on a better path. Inaction on these
issues is not an option as it means benefits will be subject to harsh
cuts.
What are your thoughts on how to begin to address this issue?
Answer. The Social Security programs touch the lives of almost
every American, and your question gets to the heart of a critical
issue. That said, I believe issues related to solvency and reforming
the programs should be left to the Treasury Department and the
legislative branch. I stand ready to assist in providing technical
information. However, as I mentioned at my hearing, if I am confirmed
as Commissioner, my focus will be on managing the agency and
administering the programs as designed by Congress.
Question. Another point I'd like to highlight. The Social Security
budget window is generally given a longer time horizon than our typical
10-year period. The 75-year actuarial balance is a key metric that
experts use.
But this 75-year actuarial balance must be thoughtfully considered.
For example, the metric could be applied to show tax increases as a
more efficient way to shore up the trust funds. This is misplaced. What
really matters is the actuarial balance in the 75th year--otherwise we
are counting a generation's tax contributions to the trust fund, but
not the benefits that generation will draw down.
Do you have any thoughts on getting the correct methodology and
data as we look at policy options to preserve workers' benefits?
Answer. I appreciate the question. That said, I do not have an
opinion regarding the correct methodology. I would defer to the Office
of the Chief Actuary regarding the correct measure of actuarial
balance.
Question. I have concerns with the Social Security Windfall
Elimination Provision (WEP) and the Government Pension Offset (GPO).
This is of utmost importance to public-sector workers in my home State
of Louisiana, who may be whipsawed by outdated formulas and uneven
application of the rules.
What are your thoughts on this issue and how can Congress and the
SSA work together to address a broader formula fix, and to ensure WEP
and GPO determinations are made consistently and fairly for all
beneficiaries?
Answer. I understand that SSA administers the Social Security
programs under the Social Security Act. If confirmed, I would provide
assistance regarding the technical aspects of statutory requirements
related to Social Security coverage for State and local government
workers, as well as SSA's administration of those requirements.
______
Questions Submitted by Hon. Ron Wyden
Question. What do you see as the greatest challenges facing SSA?
Answer. In my view, the Social Security Administration faces three
key challenges: improving the disability adjudication process,
including reducing wait times and appeals backlogs; modernizing the IT
infrastructure; and increasing executive and management accountability.
Question. What will be your top priorities if confirmed as
Commissioner?
Answer. My top priorities will be addressing the key challenges
mentioned above--improving the disability adjudication process,
modernizing IT, and improving accountability--to ensure the agency
provides accurate, efficient, and timely service to Social Security
beneficiaries and the American public.
Question. Why do you believe you are the right person to eliminate
the backlog of cases in the disability program, and what is your plan
to improve customer service?
Answer. Based on my particular experience in both the public and
private sector, I have a deep appreciation for serving the public--
whether it's a customer at a local apparel store or a Federal employee
seeking to improve his or her retirement security. Serving the public
has always been, and will continue to be, my primary focus. The decades
I spent managing national retail chains have helped prepare me for the
operational and technological challenges SSA faces in administering
national programs through local offices. My work modernizing IT at the
Federal Retirement Thrift Investment Board (FRTIB) will also be
valuable. Today, the Thrift Savings Plan (TSP) is much different than
it was when I joined the Board. At that time, its systems were in bad
shape; today, the TSP's website and customer service delivery are
vastly improved and the TSP itself is considered one of the most
successful 401(k) plans in the country.
I share your concerns regarding the disability program and customer
service, and, if confirmed, I will devote my attention to these issues.
Question. Will you commit to maintain the field office option for
our constituents who need or prefer to meet fact-to-face with a real
person?
Answer. I appreciate that your question raises an issue of great
importance to the public and to Congress. I strongly believe in
efficient, timely and accurate service, and in providing that service
through the right balance of service delivery. If I am confirmed, I
pledge to be transparent in dealing with the agency's field office
structure.
Question. What was your involvement with the Manhattan Institute?
Please be specific regarding the dates and the level of your
involvement as a board member.
Answer. In the 1990s, the Manhattan Institute was focused on
efficient local and State government in New York State, and that is
what interested me, as I was Vice Chairman of the MTA as a Commissioner
from Westchester County. I was a contributor, and board member of the
Manhattan Institute from 1994 to 2008. However, when I became Chair of
the FRTIB in 2002, I did not actively follow the activities of the
Manhattan Institute. I was not involved in, or familiar with, any work
related to privatizing Social Security.
Question. Did you support efforts to privatize Social Security
during the Bush administration?
Answer. I was not involved in efforts to privatize Social Security
during the Bush administration.
Question. Do you support efforts to privatize Social Security now?
Answer. If confirmed as Commissioner, my focus will be on managing
the agency, serving the millions of Social Security beneficiaries and
the American public, and administering the programs as designed by
Congress. I believe issues related to privatization or reforming the
programs should be left to the Treasury Department and the legislative
branch.
Question. During the campaign, what did candidate Trump say about
Social Security?
Answer. As I recall, candidate Trump said he would not cut Social
Security.
Question. How do you explain that the Trump budgets call for more
than $70 billion in cuts to Social Security?
Answer. My understanding is that individuals with disabilities have
relatively lower rates of labor force participation. As I understand,
the President's budgets are proposing the testing of alternative
program designs to help individuals with disabilities stay in the labor
force and assist individuals with temporary disabilities return to
work. I understand that the budgets envision that these alternative
program designs could lead to a reduction in Social Security Disability
Insurance (SSDI) and Supplemental Security Income (SSI) projected
outlays over a 10-year period. My understanding is that the budgets are
not proposing a change in the benefit formula or eligibility criteria,
but rather envision that through these program designs more individuals
with disabilities would remain in the labor force and would not seek
benefits under SSDI or SSI.
* If you answered the above question by stating that Trump was
referring to the retirement program and not the disability program, I
believe that is very misleading. Social Security is one program, two
trust funds, and three types of protection: life insurance, retirement
insurance, and disability insurance. All three protections use the same
work history, the same benefit formula, and receive the same COLA. All
are earned benefits. Please be very clear about that, if you are
confirmed.
Question. If confirmed, do you pledge to this committee and to the
American public that you will run the Social Security Administration in
an independent and non-partisan manner?
Answer. If confirmed, I pledge to serve Social Security
beneficiaries and the American public in a non-partisan manner.
Question. In 2014, I chaired a Finance Committee hearing titled
``Social Security: A Fresh Look at Workers' Disability Insurance.''
That hearing debunked many myths regarding the disability program, such
as it is easy to get benefits or that the program had unexplained
growth. Recently, we have seen a decline in the applications for the
program. Part of the decline is due to the country finally escaping the
biggest financial collapse since the Great Depression, and better
access to health care through the ACA has played a significant role.
Rather than racing to the ER and racking up a colossal hospital bill,
newly insured Americans, either through Medicaid or health insurance
they purchased on the exchange, are finally able to go to a doctor's
office and receive treatment sooner.
Do you think access to health-care services would reduce the chance
that a person would need to apply for disability benefits?
Answer. You raise an interesting question, but I am not in a
position to provide an opinion at this time. I am aware that the
President's budgets for the past 2 years have had proposals to test
reforms to the disability program to increase workforce participation,
and that such proposals included certain interventions to assist
individuals with disabilities. This may be a potential area of future
focus for SSA.
Question. The National Council on Disability stated: ``Receipt of
Social Security disability benefits is merely the last stop on a long
journey that many people with disabilities make from the point of
disability onset to the moment at which disability is so severe that
work is not possible. All along this journey, individuals encounter the
policies and practices of the other systems involved in disability and
employment issues.''
This quote points out that we could reduce the number of people who
need disability benefits by improving and expanding the other systems
that should help workers before they apply for disability benefits.
There are many pushing radical and complex changes to the
disability program, but most, if not all, of these changes do not
address the factors that lead to a disability in the first place. My
view is real improvement will come from universal health care, boosting
the minimum wage and the Earned Income Tax Credit, improving
transportation options, and proving meaningful paid leave for all
American workers.
That is where my focus will be, and I ask you to keep those issues
in mind when thinking about any proposed changes to the disability
programs at SSA.
Answer. I appreciate hearing your views and will certainly keep
these issues in mind.
Question. I think you will soon learn--if you do not know it
already--that SSA has an extremely dedicated workforce who believe in
SSA's mission wholeheartedly. It is not unusual to meet an employee who
started at SSA while in high school and has been with SSA for their
entire career, often progressing through various roles and
responsibilities.
I think you also know that many of the groups that represent
employees often meet with members of Congress to discuss the labor-
management relationship at the agency. The reports have not been good,
and got worse since the Trump administration issued its three executive
orders eviscerating the role of Federal labor unions. The executive
orders undermine the decades-old rights of Federal employees to fair
representation in the workplace by imposing arbitrary limits on
official time, official travel, and even the use of office space and
equipment. While the Federal District Court judge in DC struck down
most provisions of the executive orders, the Trump administration
decided last week to take a second crack at it and appealed the ruling.
It seems to me that the Trump administration seeks to demoralize the
Federal workforce and make it harder for the Federal Government to hire
and retain quality employees. Without a highly engaged and motivated
workforce, SSA's service to the public will suffer.
Putting aside the administration's executive order and the lawsuit,
what steps do you plan to take to improve the communication and
relationships with the various organizations that represent the
employees at SSA?
AAnswer. At the FRTIB, I found the vast majority of employees to be
diligent, hardworking, and concerned about the success of the programs.
In fact, many senior staff and employees were there since the inception
of the Board. My record at the Board demonstrates my dedication to
transparency with organizations that represent Federal employees. I am
very proud that all 14 Federal unions wrote to then President-elect
Obama to request that I remain at the Board as Chairman after President
Bush's term expired. If confirmed, I would similarly look to establish
such relationships with the various organizations that represent SSA
employees.
Question. If you are confirmed, how will you ensure that Americans'
data and personal information are protected and safe from cyber-attacks
at every stage of SSA's business operations?
Answer. Your question touches upon a critical issue. I share your
concern about cybersecurity and the potential for cyber-attacks, and
will work to make sure we have the experts we need at the agency to
improve the security of its IT systems and protect the vital data
maintained by SSA. Cyber-threats are constantly evolving and the
agency's security systems and processes must be able to evolve as well.
Question. Please tell me why SSA has not implemented NIST's
guidance regarding passwords and the use of Universal Second Factor
(U2F) technology, as I suggested in two separate letters to SSA?
Answer. I am not familiar with details of this particular request,
as I have had limited interactions with the agency, pending the
Senate's consideration of my nomination. If confirmed, I will review
the National Institute of Standards and Technology guidance and your
correspondence.
Question. In July, SSA informed Congress that it was reinstating
the reconsideration appeals step in the 10 prototype States. SSA is
making this major change despite bipartisan opposition from members of
Congress and without providing any significant data or study showing
the impact of eliminating the reconsideration step. Further, the
reconsideration step is widely considered to be a ``rubber stamp''
appeals step because DDS staff often make no effort to further develop
the claimant's record. Yet, SSA plans to reinstate the reconsideration
step without any proposal or plan to improve the reconsideration step,
despite having nearly 50 years of reconsideration redesigns.
What will you do to respond to concerns made by members of
Congress?
Answer. I am aware of the issues regarding reinstating
reconsideration in the 10 prototype States. The disability wait times
and backlogs are unacceptable, and I know the agency and Congress has
been dealing with these issues for some time. If I am confirmed, one of
my top priorities will be to review the disability adjudication process
at all levels, from start to finish, and to work with agency experts
and other stakeholders to explore options for improving the process
while being mindful of agency resources and taxpayer dollars.
Question. Will you commit to meeting personally with the advocacy
community on a quarterly basis, as was done for many years prior to
2017?
Answer. I think transparency is an important aspect of effective
agency management and program administration. If confirmed, I will
assess the frequency with which meetings with the advocacy community
and other stakeholders should take place.
Question. How will you use information gained from the quarterly
meetings with the advocacy community to make informed decisions about
SSA's programs and other responsibilities?
Answer. I am committed to reviewing the entire disability
adjudication process and workloads from start to finish. Feedback from
the advocacy community, as well as from other stakeholders, will inform
my review of the current process, options for potential improvements,
and evaluations of policy and process changes.
Question. In 2010, SSA projected that the pending level on initial
disability claims would exceed 1 million cases. In response, the agency
created Extended Service Teams (ESTs) in four DDSs and hired additional
staff for the Federal disability units. Today, initial disability claim
receipts are much lower and SSA is confronted with a 1 million case
backlog of pending disability hearings. What will you do to redirect
and train staff in these units to support the reduction of the hearings
backlog?
Answer. Resources should be spent where they are needed. My goal is
to serve beneficiaries and the American public. To do that, I believe
we must monitor workloads carefully, and be flexible and responsive in
our deployment of resources to ensure we meet emerging needs.
Question. What are your views on staffing front-line positions,
including management, in SSA's field offices and teleservice centers?
Answer. In my 20 years in the retail industry, I learned that
serving the consumer is the key to success. The government's service to
the public is similar in principle. I understand the important role
field offices and teleservice centers play in delivering service and
maintaining personal contact with the public throughout the Nation. In
recognition of their importance, and as I committed to you during the
hearing, I will visit, not just Oregon, but other locations around the
country so I can fully understand how services are delivered.
Question. SSA has restricted the number of managers and supervisors
in many field offices and teleservice centers. SSA workloads continue
to grow and management in many offices are sometimes challenged to
oversee all the workloads and complete necessary administrative duties.
What is your view regarding the number of managers and supervisors in
SSA field offices and teleservice centers relative to the number of
non-management staff?
Answer. I do not yet have enough information to have a specific
view on the appropriate number of managers and supervisors in field
offices and teleservice centers, but I think this is an important
question that should be reviewed. I also think one size does not fit
all.
Question. What is your plan for ensuring SSA provides a quality
workforce in terms of hiring, training and retaining staff when the
yearly increase in SSA's administrative budgets often do not cover the
yearly increased fixed costs facing the agency?
Answer. As I have had limited interactions with the agency, I do
not yet have sufficient details to put forward a plan regarding hiring,
training, and retaining staff. If I am confirmed, I will look at the
agency's budget and personnel. I want to ensure we use taxpayer dollars
efficiently and effectively, and will shift resources as appropriate.
If I find that additional resources are warranted, I will say so.
Question. What is your plan for building and maintaining
relationships with the National Council of Social Security Management
Associations, the American Federation of Government Employees, and the
Social Security Advisory Board?
Answer. I believe the position to which I have been nominated
dictates that I work with many partners--Congress, the public, unions,
and the Social Security Advisory Board--in a non-partisan fashion. My
record at the FRTIB demonstrates my dedication to non-partisanship and
the public I serve. I am very proud that all 14 Federal unions wrote to
then President-elect Obama to request that I remain at the Board as
Chairman after President Bush's term expired.
Question. What actions will you take to increase awareness of the
SSDI and SSI work incentives?
Answer. If confirmed, I will review the agency's current strategies
for increasing awareness of work incentives. I am aware of proposals in
the last two President's budgets to test new approaches to promote
greater workforce participation of people with disabilities.
Question. What are your plans for reviewing, supporting, and
adjusting the work incentives in SSDI and SSI?
IAnswer. If confirmed, I will review the existing work incentives
and assess to what extent they could be improved through regulation or
other means to help support beneficiaries who seek to return to work.
Question. What is your view on the role of field offices as a part
of SSA's service delivery operations?
Answer. I understand the important role field offices and
teleservice centers play in delivering service and maintaining personal
contact with the public throughout the Nation. As I mentioned earlier,
I plan to visit locations around the country so I can understand fully
how service is delivered. I also understand the important role that
online services play. To provide the best service to the public, we
have to have the right balance of services. If confirmed, I plan to
review our customer service strategies.
Question. What are your priorities for customer-facing service at
SSA field offices?
Answer. I believe in efficient, timely, and accurate service. In my
experience, it's critical to give front-line employees the tools they
need to do the job right. That means listening to what employees need
and then pairing it with the right technology. I understand the agency
has a 5-year IT modernization plan, which focuses on meeting the needs
of the public and employees. If confirmed, I will spend some time
reviewing the plan, in addition to visiting local offices to hear from
front-line employees, and make changes as needed.
Question. What will you do to make sure claimants are better
informed about the SSDI claims process?
Answer. This is an interesting question, and one I will pose to
front-line employees as I visit local offices. As the agency's ``boots-
on the ground,'' they will have unique insight into the processes and
policies that seem the most difficult for the public to understand. If
confirmed, I will also look at our entire communications strategy on
the SSDI claims process.
Question. Would SSA benefit from a ``National Claimant Advocate''
similar to the ``National Taxpayer Advocate'' at the IRS?
Answer. I will assess the reasons for such an advocate at the IRS
and whether such an advocate could play a similar role at SSA.
Question. My office has been contacted with concerns about
Continuing Disability Reviews (CDRs). There are disability cases from
all parts of the United States that were not properly developed and the
evidence that lead to the initial award of benefits is not included in
the record, per existing regulations. Without this Comparison Point
Decision (CPD), it would be difficult or impossible to make a finding
of medical improvement, which is necessary under the medical
improvement review standard (MIRS) for CDRs. The allegation is that
instead of acknowledging that cases were not property developed and the
relevant evidence is not in the case, SSA adjudicators are making new
findings, and then conclude that there must be improvement.
Are you aware of this problem with CDRs, and what steps will SSA
take under your leadership to improve this issue?
Answer. This is not an issue I am familiar with, but, if confirmed,
I will certainly learn more about it and determine the appropriate
course of action.
Question. I am very interested in SSA's work on Targeted Denial
Reviews (TDR), which are a part of the CARES plan to improve service in
disability case processing. Under your leadership, will SSA consider
expanding the use of TDRs? Will SSA review an equal number of
allowances and denials of initial disability determinations?
Answer. One of my top priorities will be to review the disability
adjudication process at all levels and work to improve it to better
serve claimants and beneficiaries. As part of my review, I will look at
how the agency selects cases for TDRs and whether expansion of the
initiative is warranted.
Question. SSA uses more administrative law judges (ALJs) than any
other Federal agency. The President issued an executive order that
calls for new ALJ appointments to be made under the excepted service,
rather than the competitive service eliminating the Office of Personnel
Management (OPM) qualification exam and appointment process. OPM has
issued guidance confirming that all ALJs must be appointed by the
agency head to positions in the excepted service, but left the criteria
and procedures for ALJ qualification, probationary periods, and removal
for agency heads to clarify. For example, while OPM directs that
agencies ``follow the principle of veterans' preference as far as
administratively feasible,'' it is unclear how such guidance will be
applied by individual agencies. SSA has informed me that they have not
yet developed their criteria and procedures to appoint ALJs. If
confirmed, how will you guide the Social Security Administration's
(SSA) development of a new excepted service hiring process for
prospective ALJ appointees and what will you do to ensure that the new
process leads to well-qualified, impartial ALJs with subject matter
expertise?
Answer. I appreciate your concerns about the recent executive order
on administrative law judges. I will always follow merit-based
principles in hiring all employees including ALJs. I also want to note
that I believe ALJs should maintain their decisional independence. If
confirmed, my focus will be on hiring the best people to do the job.
Question. In 2017, the U.S. Commission on Evidence-Based
Policymaking presented Congress and the President with a unanimous set
of recommendations to make better use of government data to inform
policy decisions. If confirmed, will you commit to taking steps at SSA
to implement the commission's recommendations? Specifically, will you
commit to direct SSA to develop a learning agenda to identify evidence
priorities and to designate a chief evaluation officer to facilitate
the use of evidence at SSA?
Answer. I agree that the government should make better use of data
when deciding policy. If confirmed, I will look at the commission's
recommendations on how the agency can better use data and what steps
should be made administratively to facilitate the use of evidence at
SSA.
Question. In 2003, the New York State Comptroller investigated the
MTA's 2002 financial plan, which projected a $951-million deficit and
included fare hikes to offset the deficit. However, the Comptroller's
office found that the MTA had two versions of its financial plan: a
public version and a private version, the latter showing a $537.1-
million surplus. At the time, you were reportedly the Chairman of the
MTA Audit Committee. While you have explained this situation to the
committee in staff interviews, those responses have not been made
public. Please explain your involvement in developing the MTA's 2002
financial report as an MTA board member, and your involvement in its
review process as Chairman of the MTA Audit Committee. Please also
explain the 2003 State Comptroller's report findings and how those
findings were resolved by the MTA and your role in that resolution if
any.
Answer. There was only one financial plan for the MTA, and any
allegation to the contrary was simply false. As Chairman of the Audit
Committee, I strived to ensure full transparency with the MTA's
financial reporting. During my tenure, we changed procedures so that
all financial reporting was timely presented and made publicly
available on MTA's website. In addition, MTA's annual financial
statements were audited, reviewed, and certified by Deloitte and
Touche, and were made publicly available.
Question. The committee has received a letter from outside
organizations implying that in 2007 you accepted Federal campaign
contributions from entities seeking to do business before the MTA,
contrary to New York law. Please explain whether or not you received
such contributions and whether or not such contributions violated New
York law.
Answer. In 2007, I sent a letter to family and longstanding friends
seeking financial support for my campaign. I did receive contributions
from some family and longstanding friends. For personal reasons, I
withdrew from the campaign well before the primary, and all the funds
raised were returned. As far as I am aware, there was no inquiry
relating to these contributions. Subsequent to this, I was re-nominated
to serve with the MTA several times, including most recently by
Governor Cuomo (and confirmed by the N.Y. Senate) in 2016.
Question. In the same letter mentioned above, the allegation is
made that in 2007 you established a campaign for a seat in Congress and
accepted political contributions in possible violation of the Hatch Act
due to your position as Chairman of the Federal Retirement Thrift
Investment Board.
Please explain whether or not you engaged in these campaign
activities and the extent to which they were subject to the Hatch Act.
Did you consult with your agency's ethics officer about these
activities and what advice did you receive?
Answer. As Chair of the FRTIB, I was classified as a special
government employee. As I understand, a special government employee is
subject to the Hatch Act only at the time such employee works on agency
matters (5 CFR 734.601). To the extent I engaged in campaign
activities, I did so at times I was not subject to the Hatch Act.
I believe I did consult with the ethics office at the FRTIB. It was
my practice to consult with the ethics office on possible ethics
issues, and I would continue such practice at SSA, if confirmed.
Question. In the same letter cited above, the allegation is made
that in 2012 you failed to cooperate with a local law enforcement
officer. While you have explained this situation to the committee in
response to the committee's questionnaire and due diligence review,
those responses have not been made public. Please explain the 2012
incident.
Answer. In 2012 I had a biking incident at a New Yok City reservoir
roadway across from my home in Westchester. I was briefly detained by
the Department of Environmental Protection Office for riding a bike on
a questionably controlled roadway. I was not charged nor issued a
summons.
______
Question Submitted by Hon. Debbie Stabenow
Question. For the past 2 decades, Michigan has been one of 10
States involved in a prototype project that eliminated the
reconsideration level, the second step in the Social Security appeals
process. In July 2018, the Social Security Administration informed
Congress of its intention to reinstate reconsideration in the 10
affected States. In just Michigan alone, approximately 3,200 claimants
would receive their benefits quicker if the reconsideration level was
reinstated. However, 21,288 claimants would experience longer wait
times and 5,307 would drop out of the process completely due to the
extra step. For over 85 percent of applicants, reinstatement of
reconsideration would increase the decision making process from the
current 600 days to over 700 days.
If confirmed as SSA Commissioner, what steps will you take to
address and alleviate the longer wait times applicants will experience
as a result of this decision?
Answer. I am aware of the agency's plan to reinstate
reconsideration. As I said during the hearing, improving the disability
adjudication process, including reducing wait times and appeals
backlogs, is one of my top priorities. The wait times and appeals
backlogs are unacceptable, and I am committed to reviewing the entire
disability adjudication process from start to finish. I will devote my
attention to this critical issue, if confirmed.
______
Questions Submitted by Hon. Maria Cantwell
Question. Administrative law judges (ALJs) perform adjudication of
Social Security benefit cases, such as appeals. It is essential that
they remain independent and not politically influenced in making
decisions about earned benefits. However, in July the President issued
an executive order to reclassify ALJs so they can be selected based on
their political views. That is why I introduced a bipartisan bill--S.
3387--to restore the ALJs to the competitive service.
If confirmed, will you commit to respecting the independence of
ALJs at the Social Security Administration?
What steps would you take to restore them to the ``competitive
service'' system?
Answer. If confirmed, I will commit to respecting the decisional
independence of ALJs at SSA. In addition, I will always follow merit-
based principles in hiring all employees including ALJs. My focus will
be on hiring the best people to do the job.
Question. Washington seniors need in-person help with their earned
Social Security benefits, whether that is applying for benefits or
speaking to someone face to face. But nearly 1 in 10 Social Security
field offices has closed since 2000, according to a Washington Post
article, while wait times have increased. In 2012, Social Security
benefits offices in the Belltown and International District
neighborhoods of Seattle were merged into the Jackson Federal Building,
forcing beneficiaries to make a trip to downtown Seattle, often
requiring complicated public transportation logistics. This is
happening as 10,000 baby boomers reach retirement age each day.
If confirmed, will you commit to reviewing how these field office
closures are affecting access and wait times?
How would you prioritize in-person services for beneficiaries?
Given that many beneficiaries are elderly and lack easy online
access, how would you balance in-person and online services?
Answer. I believe in efficient, timely and accurate service, and in
providing that service through the right balance of service delivery. I
will certainly commit to reviewing the agency's service delivery plans,
including field office closures and their effect on access and wait
times, if confirmed.
Question. I understand that from 1994-2008, you were a board member
of the Manhattan Institute, a policy organization that has promoted the
privatization of Social Security, during the same time frame in which
the Bush administration proposed partial Social Security privatization.
In 2008, the Great Recession ensued, greatly reducing the savings of
retirees and pensions investments while Wall Street got bailed out.
As a policy matter, what do you think about proposals to divert
Americans' Social Security into the stock market, i.e., privatization
proposals?
If confirmed, I assume you would play a role in advising the
Treasury and the White House on policy changes to Social Security,
including the President's budget proposal. How would you exercise that
role? How would you advise them on proposals to reform Social Security?
Answer. If confirmed as Commissioner, my focus will be on managing
the agency, serving the millions of Social Security beneficiaries and
the American public, and administering the programs as designed by
Congress. I believe issues related to privatization or reforming the
programs should be left to the Treasury Department and the legislative
branch. I would provide assistance regarding the technical aspects of
proposals, if confirmed.
Question. Unionized Federal employees in Washington State who work
for the Social Security Administration have expressed deep concerns to
my office about their legal rights in the workplace, specifically as it
relates to official time and collective bargaining. This is especially
true after the President's executive orders issued earlier this year,
which would undermine collective bargaining rights of Federal
employees. Despite a recent court ruling reversing the executive
orders' collective bargaining proposal, some Washington State Federal
employees report that the agency is not respecting this ruling.
How specifically would you ensure that unionized agency employees
can exercise their legal rights, including collective bargaining?
If confirmed, will you commit to following the court ruling on
collective bargaining rights for Federal workers?
Answer. Please be assured that if I am confirmed as Commissioner, I
will follow the law and act transparently and in good faith when
working with the public-sector unions at the agency.
My record at the FRTIB demonstrates my dedication to transparency
with organizations that represent Federal employees. I am very proud
that all 14 Federal unions wrote to then President-elect Obama to
request that I remain at the Board as Chairman after President Bush's
term expired.
______
Questions Submitted by Hon. Robert Menendez
Question. During the hearing, you stated that you terminated your
association with the Manhattan Institute when you were appointed to the
Federal Retirement Thrift Investment Board, but your questionnaire
lists the end date of your association with the Manhattan Institute in
2008. Could you clarify your statements from the hearing?
Answer. In the 1990s, the Manhattan Institute was focused on
efficient local and State government in New York State, and that is
what interested me, as I was Vice Chairman of the MTA as a Commissioner
from Westchester County. I was a contributor and board member of the
Manhattan Institute from 1994 to 2008. However, when I became Chair of
the FRTIB in 2002, I did not actively follow the activities of the
Manhattan Institute. I was not involved in, or familiar with, any work
related to privatizing Social Security.
Question. What your involvement was with the Manhattan Institute
while you were on the Thrift Board?
Answer. As stated above, when I became Chair of the FRTIB in 2002,
I became inactive at the Institute and remained so throughout my tenure
as Chair.
Question. During the hearing, you mentioned you would be
undertaking a review of the management structure of the Social Security
Administration (SSA) to ensure the organization has the management
structure necessary to run well as a modern and large organization.
However, we already know that since 2010, there have been staff cuts of
12 percent and that claims have been backing up.
What is your understanding of the negative impact staff cuts have
had on front-line service?
Answer. If confirmed, I will look at the agency's budget,
personnel, and delivery of service. I want to ensure that we use
taxpayer dollars efficiently and effectively. If I find that additional
resources are warranted, I will say so.
Question. Will you commit to working with this committee to improve
security of sensitive information at the SSA?
Answer. Yes. I share your concern about ensuring the security of
the sensitive data SSA collects and maintains. If confirmed, I will
work to make sure we have the experts we need at the agency to improve
the security of the agency's IT systems and protect the vital data
maintained by SSA. Cyber-threats are constantly evolving and the
agency's security systems and processes must be able to evolve as well.
______
Questions Submitted by Hon. Benjamin L. Cardin
Question. This August, SSA was slow to comply with Judge Ketanji
Brown Jackson's decision to reverse the executive orders relating to
union collective bargaining agreements. Additionally, SSA had been
particularly harsh among Federal agencies in its enforcement of these
executive orders, having reduced official time, confiscated union
equipment, and locked union members from their spaces.
Should you be confirmed, how will you ensure that SSA will be fair
and balanced in its relations with its Federal employee unions?
Answer. If confirmed as Commissioner, I will follow the law and act
transparently and in good faith when working with the public sector
unions at the agency. My past history as Chair of the FRTIB highlights
this.
Question. What actions will you take to ensure that the next
collective bargaining agreement is in compliance with Judge Jackson's
ruling?
Answer. If confirmed as Commissioner, I would abide by judicial
opinions that affect the SSA.
Question. Telework is a well-established and accepted practice
within the Federal Government. SSA management has used telework to
discipline SAA employees by threatening to take away employees' right
to telework.
If confirmed, will you review SSA telework practices and strive to
stop the current practice of using the ability to telework as a way to
discipline employees?
Answer. I understand that telework is governed through a framework
of laws and regulations. If confirmed, I will review SSA's telework
practices to ensure they are consistent with these laws and
regulations.
Question. I have been paying close attention to the issue of field
office closures, and particularly that of the Baltimore North office,
which occurred in June 2018. SSA has planned to consolidate its
employees and workloads from both the Baltimore North as well as its
Arlington field offices into others in the area. Many beneficiaries
are, however, in a poor physical or mental condition for traveling long
distances, do not possess vehicles, and/or live alone without any
family, friends, or caretakers to assist them.
If confirmed, how would you analyze the impact of each field office
closure?
Answer. I recognize that this issue is one of great importance to
the public and to Congress. I believe in efficient, timely and accurate
service, and in providing that service through the right balance of
service delivery. If I am confirmed, I pledge to be transparent in
dealing with the agency's field office structure.
Question. What steps would you take to ensure that SSA does not
overburden certain field offices that have to now double their
workloads due to closures?
Answer. If confirmed, one of my top priorities will be to look at
SSA's structure, including its management, to ensure that the agency is
properly positioned to provide quality service to beneficiaries.
Question. How would you ensure that beneficiaries receive
sufficient notice of any closure or disruption to field office service,
as well as recommendations from SSA?
Answer. If confirmed, I will look into the issues surrounding
communications to communities served by field offices. Specifically, I
will consider recommendations made by the OIG, as well as input from
key stakeholders.
Question. How would you ensure that program beneficiaries who may
not be able to travel longer distances to other offices receive the
support and service they need?
Answer. I understand the important role local offices play in
delivering service and maintaining personal contact with the public. I
also understand the important role that online services play. To
provide the best service to the public, we have to have the right
balance of services, which includes considering the needs of
beneficiaries. If confirmed, I plan to review the agency's customer
service delivery to ensure we have that balance. I also plan to be
transparent in dealing with the agency's field office structure.
Question. SSA has emphasized its vision for expanded online
services, perhaps as a substitute for field offices. Polling
consistently shows that program beneficiaries, who are often not
technologically savvy, prefer applying for benefits and raising
questions and claims at field offices with staff representatives, or by
voice over the phone. The amount of people entering field offices in
2018 is at a level similar to that of 2000, suggesting that field
offices continue to provide essential services to the public.
What steps would you take to balance SSA's need for IT
modernization and an improved online presence with its field office
activities?
Answer. As I said during the hearing, one of my top priorities will
be to look at IT modernization. I believe improved IT would serve to
both improve online presence and to help local offices deliver services
to beneficiaries.
Question. You have noted in your earlier responses to this
committee that you will be sure to make a serious and thorough
consideration of all the factors at play before making a decision to
close a field office.
What would such a review on your part look like?
Which parties and interests would you be considering?
Answer. As I said during the hearing, local Social Security offices
provide important services to the beneficiaries and the agency has to
be deliberate in making changes. As I have had limited interactions
with the agency, pending Senate confirmation of my nomination, I do not
currently have criteria that would be considered in such a review. If
confirmed, I look forward to discussing this area with the agency.
Question. The Social Security Administration has endured years of
budget cuts and freezes that have taken their toll on the agency's
service capabilities. Since 2010, the staff has been reduced by 12
percent, approximately 70 field offices have been shuttered, hours of
public operation have been reduced, and there is a record high backlog
in disability appeals. SSA's service delivery has also dipped in
quality. A significant number of callers to SSA's national 1-800 number
do not get their questions resolved. As hold times have risen, nearly
half of callers hang up before connecting and a growing number get busy
signals. Meanwhile, the average wait for a disability appeal has
stretched to 20 months. Further cuts would force the agency to freeze
hiring, furlough employees, shutter more field offices, or further
restrict field office hours, causing yet longer wait times for
taxpayers and beneficiaries. Although the agency received a notable
increase in its budget in FY18, much of those funds went to IT
improvement and reducing the backlog, not front-line service.
How would you prioritize service at field offices and teleservice
centers to ensure that SSA is able to respond to the needs of a growing
beneficiary population?
Answer. I understand the important role field offices and
teleservice centers play in delivering service and maintaining personal
contact with the public. That said, I also understand the important
role that online services play. To provide the best service to the
public, we have to have the right balance of services. If confirmed, I
plan to review our customer service strategy to ensure we have that
balance for our beneficiaries.
Question. How do you plan to ensure the levels of staffing needed
for quality service?
What budgetary needs do you anticipate SSA requiring in your term?
Further, what steps would you take to secure those needs?
Answer. I do not yet have sufficient details to put forward a plan
regarding hiring, training, and retaining staff. If confirmed, I will
look at the agency's budget and personnel. I want to ensure we use
taxpayer dollars efficiently and effectively, and will shift resources
as appropriate. If I find that additional resources are warranted, I
will say so.
Question. Earlier this summer, President Trump signed an executive
order that removed administrative law judges (ALJs) from the
competitive civil service, to be selected by agency leadership rather
than being independently vetted by the Office of Personnel Management.
I have written to you earlier this year about my concerns about the
ALJs, who are very critical to the operations and services of Social
Security.
How will you ensure that the independence and integrity of SSA's
ALJs are protected and free from any political influence?
Answer. I will always follow merit-based principles in hiring all
employees, including ALJs. I also want to note that I believe ALJs
should maintain their decisional independence. If confirmed, my focus
will be on hiring the best people to do the job.
Question. I am very concerned about the disability backlog and the
de facto SSA quota of 500-700 cases per year per ALJ. A judge handling
500 cases per year would take approximately 2.5 hours to adjudicate a
case--2.5 hours to read a file, hold a hearing, make a decision, and
then draft the decision. The ALJs have done the only case time study we
are aware of, and that study indicates it takes an ALJ an average of
7.5 hours to decide a case. My concern is SSA is putting quantity ahead
of quality.
If confirmed, will you work with Congress and other stakeholders to
determine the time required for an SSA ALJ to adjudicate a case and
abandon arbitrary quotas?
Answer. I understand that the ALJs play a critical role in making
sure claimants get the public service they deserve. As I said during
the hearing, improving the disability adjudication process, including
reducing wait times and appeals backlogs, is one of my top priorities,
and I am committed to reviewing the entire disability adjudication
process from start to finish. An important part of this review will be
to look at increasing efficiencies in the hearings process.
Question. The Social Security Act created the SSA as an independent
agency within the Federal Government charged with providing critical
benefits to recipients. Projected solvency and trust fund issues have
prompted many to advocate for privatization, reduction of benefits, and
delayed eligibility. Notable proponents of such ideas include the Bush
White House and the Manhattan Institute, both of which you have been
affiliated with. In your responses to the committee's concerns, you
indicated that you would leave policymaking to the legislators and the
Treasury Department.
What does the independence of the agency mean to you?
Answer. As I mentioned at the hearing, I will put the agency's
mission and those we serve ahead of all other interests. The
independence of the agency means I will not allow politics to interfere
with the fundamental mission of the agency, which is to serve the
public.
Question. How do you envision your responsibilities with regards to
Congress?
Answer. As I said during the hearing, if confirmed, my focus will
be on improving service to the beneficiaries. To that end, I am
committed to working in a transparent manner with Congress.
Question. Can you commit to not taking any actions that, while
within the scope of your authority, would seek to build a case for
privatization and similar policies?
If confirmed as Commissioner, my focus will be on managing the
agency, serving the millions of Social Security beneficiaries and the
American public, and administering the programs as designed by
Congress. I believe issues related to privatization or reforming the
programs should be left to the Treasury Department and the legislative
branch.
Question. While provisions in specific retirement security bills do
not always impact the SSA's mission, I believe that we need to consider
retirement policy holistically. Social Security is a critical pillar of
many American's financial security in retirement. It's my hope that we
will be able to agree on helpful changes to retirement policy both in
this Congress and going forward.
Should you be confirmed, will you commit to working with Congress
to help provide expertise and move bipartisan retirement security
legislation?
Answer. If confirmed, I will focus on improving the services
provided to the beneficiaries. I believe that policy issues such as
legislation on retirement security should be left to the legislative
branch. However, I would provide assistance regarding the technical
aspects of proposals, if I am confirmed.
Question. Federal law requires agencies to bargain in good faith
with the unions representing their workforce--an obligation that the
President cannot overturn by executive order. If confirmed, the Senate
expects you to follow the law. In your response to the letter Senator
Van Hollen and I sent you voicing our concerns, you noted that the
executive orders had been struck down. I would like to stress however
that the administration is appealing.
Will you hold SSA to honor its collective bargaining agreements by
rescinding the unilateral changes SSA has made, and not make further
unilateral changes?
Will you hold SSA to honor the terms of expired collective
bargaining agreements until reaching a new agreement, by rescinding
unilateral changes and not making further unilateral changes?
If SSA and its workforce seek to negotiate a new collective
bargaining agreement, will you commit to bargaining in good faith with
the unions representing SSA's workforce, and do everything in your
power to reach an agreement without resorting to the Federal Service?
Answer. If confirmed, I will follow the law and act transparently
and in good faith when working with the public sector unions at the
agency.
My record at the FRTIB demonstrates my dedication to transparency
with organizations that represent Federal employees. I am very proud
that all 14 Federal unions wrote to then President-elect Obama to
request that I remain at the Board as Chairman after President Bush's
term expired.
______
Questions Submitted by Hon. Robert P. Casey, Jr.
Question. The proposal by SSA to reinstitute the reconsideration
step in 10 States' disability appeals processes, including
Pennsylvania's, will add an average of 100 days to many applicants'
already unacceptably long wait times. In Pennsylvania alone, SSA's own
analysis shows that roughly 20,000 individuals will see their wait
times increased. All seven field processing offices in Pennsylvania
already average more than 600 days to make a final determination
regarding a disability claim. One office in Philadelphia already takes
an average of 700 days, or nearly 2 years, to make a final
determination.
Will you commit to delaying the reinstitution of the
reconsideration step in the disability appeals process until SSA has
identified a process to do so that will not harm any claimants in
Pennsylvania or any other State by lengthening applicants' decision
wait times?
Answer. I am aware of the issues regarding reinstating
reconsideration in the 10 prototype States. The disability wait times
and backlogs are unacceptable, and I know the agency and Congress has
been dealing with these issues for some time. If I am confirmed, one of
my top priorities will be to review the disability adjudication process
at all levels, from start to finish, and to work with agency experts
and other stakeholders to explore options for improving the process
while being mindful of agency resources and taxpayer dollars
Question. As SSA has proceeded with its plan to reinstitute
reconsideration into the disability appeals process, it has repeatedly
avoided providing Congress with complete information regarding the full
effects of this change. Specifically, at multiple briefings with
congressional staff, SSA representatives avoided providing information
on claimants that will have to wait longer to receive an eligibility
decision due to the reintroduction of reconsideration. SSA
representatives presented projections illustrating what they view as
the benefits of this change, but did not present information from the
same projections showing its negative effects until questioned about
these projections by congressional staff.
Will you confirm that SSA's planned reinstitution of the
reconsideration step in 10 States' disability appeals process will
immediately result in longer decision wait times for the majority of
impacted applicants, causing them harm?
Will you commit, if approved to be Commissioner, to briefings to
congressional offices from SSA staff that provide full information
regarding policy decisions proposed by the SSA?
Answer. Pending the outcome of the Senate's consideration of my
nomination, I have had limited interaction with the agency and cannot
provide specific information regarding the effects of reinstating the
reconsideration step in the ten prototype States. If confirmed, I will
commit to working with you and Congress in a transparent way to ensure
we serve claimants and beneficiaries as best we can.
Question. During our meeting, I asked about working with my office
and other Senate offices. Making major administrative decisions about
benefits has an immediate impact on the constituents I and other
Senators serve.
Will you commit to working with my office when you plan to
implement administrative changes that will have an effect on claimants
of any SSA program, including contacting my staff about plans for new
procedures and briefing them at the outset so we can work
collaboratively to support processes that will benefit all
constituents?
Answer. Serving the public will be my primary focus, if confirmed.
I believe that a critical element to such service is working with
Congress in a transparent way. I will be transparent with Congress,
including through briefings, on administrative changes that are likely
to have a significant effect on programs.
Question. For the past 2 decades, there has been an extensive
history of the SSA Commissioner and senior staff meeting, on a regular
basis, with constituent and advocacy groups of the title XVI (SSI) and
title II (SSDI) claimants. When held, these meetings have been very
productive and have led to program efficiencies and reforms. For the
past 18 months, these meetings have been discontinued.
Will you commit to reinstituting these meetings on a regular basis?
Answer. I think transparency is an important aspect of effective
agency management and program administration. If confirmed, I will
assess the frequency with which meetings with the advocacy community
and other stakeholders should take place.
Question. At the Finance Committee hearing held on October 2, 2018,
you indicated that, if confirmed, you intend on reviewing the entire
disability application and appeals process.
What specifically do you view as the central problems with this
process that need to be addressed?
What criteria would you use to evaluate the steps in this process
and any potential changes to this process?
Can you commit to not making any changes to the disability
application and appeals process that would reduce the number of
individuals that are eligible for disability benefits that receive
them?
In working to reduce hearing backlogs and wait times, what specific
goals and deadlines would you put in place and how would you ensure SSA
meets these goals and deadlines?
Do you have any intention of making changes to SSA operations that
would impact individuals who have already been deemed eligible for
disability benefits and have already begun receiving them, and if so,
what would those be?
Answer. If confirmed, I do plan to review the entire disability
adjudication process from start to finish, to address the longstanding
problems of disability wait times and backlogs. My goal is to improve
service and to make the right decision as early as possible in the
process. I believe the disability program and disability determination
processes should be modern and should reflect today's job market, as
well as technological changes and medical advances. I intend to make
the program more efficient.
I am aware that Congress provided funding for the agency to reduce
the hearings backlog. If confirmed, I will review the agency's backlog
reduction plan to ensure these additional resources are being used
wisely, and will make adjustments as needed.
Question. In-person services at Social Security field offices are
essential to many seniors and people with disabilities living in
Pennsylvania and throughout the Nation. In many rural areas of
Pennsylvania, in particular, access to broadband Internet is limited
and in-person services cannot be easily replaced by online services.
Will you commit to working to keep Social Security field offices
open and to maintaining the critical in-person services provided by
these field offices?
Will you commit to having SSA keep members of Congress informed
about any potential field office closures or relocations that would
impact their constituents and to do so before SSA finalizes any
decision on the future of a field office?
How will you ensure that, as SSA expands the services it provides
online, it continues to provide essential services and information to
individuals who may not have reliable Internet access or who may not
use the Internet?
Answer. I understand the important role local offices play in
delivering service and maintaining personal contact with the public. I
also understand the important role that online services play. To
provide the best service to the public, we have to have the right
balance of services. If confirmed, I plan to review the agency's
customer service strategies to ensure we have that balance.
Question. SSA's workload is increasing rapidly as the Baby Boomer
generation moves into retirement, and the agency's services are more
important than ever. I have repeatedly pushed to provide SSA with the
additional administrative funding it needs to maintain and improve
critical services and eliminate unacceptable backlogs.
Will you commit to being transparent and forthcoming with Congress
about the level of administrative funding SSA needs to meet all of its
statutory obligations and eliminate backlogs?
If you believe SSA needs additional resources to fulfill its
mission and maintain essential services, will you communicate that need
to Congress?
Answer. Yes, I will be transparent and forthcoming about the
agency's funding needs. I believe in efficient, timely and accurate
service, and protecting taxpayers' hard-earned dollars through the
effective management of Social Security programs. If confirmed, I will
look at the agency's budget and its workloads to ensure resources are
spent wisely. If I find that additional resources are warranted, I will
inform Congress.
Question. At the Finance Committee hearing held on October 2, 2018,
you indicated that, if confirmed, you would review the management
structure and management practices at SSA.
What criteria would you use to evaluate whether management
structures and practices are operating successfully?
What specific changes, if any, are you considering making to these
management structures and practices?
Will you commit to working with and consulting with the employees
of SSA and the unions that represent them?
Answer. If confirmed, I will review the management structure in
detail. While I cannot outline specific criteria at this time, my
primary focus will be on serving beneficiaries and tackling the three
key challenges the agency faces: improving the disability adjudication
process, including reducing wait times and appeals backlogs;
modernizing the IT infrastructure; and increasing executive and
management accountability. Any changes made to the management structure
will be transparent and in service of meeting these challenges.
Regarding the unions and employees at SSA, I am committed to
working with all stakeholders to ensure we serve the public as best we
can.
Question. In addition to processing Social Security disability and
retirement benefits, SSA is responsible for several key Medicare
functions, including providing basic education about when and how to
sign up for Medicare and processing Medicare enrollment.
Increasingly, people new to Medicare are delaying retirement beyond
age 65. Without adequate, advance notification, these individuals often
lack sufficient information on when and how to sign up for Medicare.
The consequences of enrollment missteps, particularly in Medicare Part
B, can be significant and may include lifetime late enrollment
penalties as well as lengthy gaps in coverage.
Will you commit to an evaluation of SSA's processes and procedures
for educating individuals approaching Medicare eligibility about basic
Medicare enrollment rules, including how Medicare benefits coordinate
with other forms of insurance, Part B enrollment periods and coverage
start dates and eligibility for and enrollment in Medicare low-income
support programs?
Will you commit to working with my office to identify opportunities
to strengthen notification and resources for individuals nearing
Medicare eligibility?
How will you ensure that SSA will appropriately balance online
educational initiatives pertaining to Medicare enrollment with both
paper mailings and in-person assistance?
Will you provide information to my office about the resources made
available by the Centers for Medicare and Medicaid Services to SSA to
carry out the agency's functions related to Medicare, including those
related to enrollment and the administration of low-income programs?
And, will you provide information on any additional resources the
agency might need to improve upon those functions?
Answer. I appreciate your questions, which illustrate the
historical relationship between Social Security and health care, and
specifically between SSA and the Centers for Medicare and Medicaid
Services (CMS). If confirmed, I will work with Congress and the
Administrator of CMS on ways to better educate the public about
Medicare enrollment.
Question. Created through Federal law, equitable relief is an
administrative process that allows people with Medicare to request
relief from SSA in the form of immediate or retroactive enrollment into
Part B and/or the elimination of a Medicare Part B Late Enrollment
Penalty (LEP). It is my understanding that SSA does not currently
collect or retain information on equitable relief cases, including the
number of cases processed, the outcomes of these requests or
information on the basis for these requests.
Will you commit to collecting basic, State-by-State data on
equitable relief cases (including the number requested, the outcome of
the requests, and the basis for requests) and ensure that data is made
available to my office?
Will you ensure this data collection process includes information
on current and former Marketplace enrollees who seek time-limited
equitable relief, a process recently extended by CMS through September
30, 2019?
Will you provide my office with information on how SSA manages,
processes and decides equitable relief requests?
Will you provide information to my office on the extent to which
SSA trains field office staff regarding cases of equitable relief and
special enrollment periods?
Answer. I cannot provide answers to your specific questions
regarding equitable relief policies and practices, or the exact data
SSA maintains regarding equitable relief requests. If confirmed, I will
review the data SSA collects and maintains to determine whether it
addresses your data requests.
______
Questions Submitted by Hon. Mark R. Warner
Question. Key provisions in the President's three executive orders
undermining Federal worker protections were struck down by a Federal
court. At the Social Security Administration, how do you intend to
comply with the court's decision finding that the President's EOs were
unlawful? Will you work with the Federal employee unions to ensure that
their collective bargaining rights are being respected?
Answer. If I am confirmed as Commissioner, I will follow the law
and the court order, and act transparently and in good faith when
working with the public-sector unions at the agency.
My record at the FRTIB demonstrates my dedication to transparency
with organizations that represent Federal employees. I am very proud
that all 14 Federal unions wrote to then President-elect Obama to
request that I remain at the Board as Chairman after President Bush's
term expired.
Question. The Social Security Administration recently closed many
field offices, making it harder for older and disabled Americans to get
the assistance they need. This includes an SSA field office in
Arlington, and Senator Kaine and I have asked the inspector general at
SSA to look into whether all appropriate laws and procedures were
followed. How do you intend to ensure that people who need in-person
assistance, but are limited in their ability to travel long distances
to far-off field office, are able to access these resources?
Answer. Serving the public has always been, and will continue to
be, my primary focus. I plan to review the agency's service delivery
strategies and how they affect access to in-person services.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
The Finance Committee meets this morning to consider the nomination
of Andrew Saul to serve as Commissioner of the Social Security
Administration. It goes without saying that this position is one of the
most important posts in the Federal Government. It's responsible for
administering benefits to over 69 million seniors, people with
disabilities, and other Americans who earned their Social Security
after working for years and paying into the program with each paycheck.
Mr. Saul's nomination comes before the committee at a critical
moment. Middle-class paychecks aren't keeping up with rising living
expenses and health-care costs, making saving for retirement even
harder for many workers. That means Social Security is more important
than ever when it comes to guaranteeing all Americans a secure
retirement without worrying about financial destitution.
That's especially true for women, who in many circumstances are
working multiple jobs while also raising children, sometimes on their
own. A recent study showed that women have an average of half the
retirement savings as men. That gap means hard times for women in their
later years: women aged 65 and older are 80 percent more likely than
men to be in poverty.
My parents were divorced when I was young, and to a great extent my
mother raised my late brother and I. Despite having a master's degree,
she always seemed to take home less pay than men doing the same job.
She wasn't alone. That's another reason why it is so important that
women get a fair shake when it comes to retirement.
When it comes to the future of Social Security, the program can pay
full benefits through 2034 and 79 percent of benefits after 2034. There
has been an effort from Trump's top economic advisers on down to
portray this as a ``crisis'' and insist that drastic changes are needed
and benefits have to be cut.
Let me be clear colleagues: cuts to Social Security are the exact
opposite of what's needed now. Increasing the retirement age,
transforming Social Security from a secure defined benefit to a
privatized scheme that puts vital benefits at risk, and more--these
harmful ideas will make it harder for seniors and vulnerable Americans
to live full lives after years of work. I will go to the mat to prevent
these harmful attacks on Social Security. Instead, Congress should
focus on ways to improve the program and ensure all Americans can enjoy
a secure retirement.
If Mr. Saul is confirmed to a full 6-year term next Congress, he
will be managing the nuts and bolts of Social Security as this
important debate takes place. But there is already work to be done
today to ensure Social Security works for Americans who count on its
benefits right now.
Today, too many who are seeking benefits are stuck in bureaucratic
purgatory--nearly a million Americans are waiting as Social Security
considers appeals of their eligibility. This backlog of disability
cases means people often wait more than a year or longer for a
decision. That is unacceptable.
Recently Congress has done better when it comes to funding the
agency, and the backlog has improved. I want to thank Senator Brown and
others for pushing hard for these resources in the recent
appropriations bills, but it will be important to see results before
anybody declares ``mission accomplished.'' Too many Americans are
waiting for help instead of getting the service they paid for and
deserve. The Commissioner should make it very clear--perhaps with a
weekly update on the front page of SSA's website--about the average
wait time for our constituents.
The Social Security Administration has made great strides to
modernize its information technology. Earlier this year the Government
Accountability Office said SSA had made the most progress of any agency
when it comes to improving and managing its IT.
This is the critical task for every Federal agency at a time when
data theft is rampant--more vulnerabilities and opportunities for
cyber-crime are cropping up every day. Americans have made it clear
that privacy is paramount, and Social Security can't fall short when it
comes to protecting personal information. On a positive note, the
agency's Disability Case Processing System has received great reviews
from the employees that use the system every day to help people. But to
paraphrase President Lincoln, a ``bath of public opinion'' is needed to
verify that it is leading to better service and less waiting.
If confirmed, Mr. Saul will be the first confirmed head of Social
Security since 2013. It's a shame there has been such a delay, and that
delay has taken its toll. Without a confirmed leader, the agency cannot
create and execute a long-term vision of how to improve the program for
beneficiaries. On a more practical level, an acting leader cannot hire
qualified people from outside the agency into Senior Executive Service
positions, such as the person in charge of SSA's IT security or the
head of the agency's 1,245 field offices. Americans deserve the best
talent at the Social Security Administration, and this artificial
barrier should be removed as soon as possible.
Before I conclude, I want to address the issue the chairman raised
about taking up only the first nomination. The White House nominated
Mr. Saul for two consecutive terms, one for the remainder of the
current term ending on January 19, 2019, and one for the succeeding
term beginning the next day. If the Finance Committee were to vote on
the second nomination, it would be acting during this Congress to fill
a vacancy that does not occur until next Congress. That would upend the
notion that Senators advise and consent on the contemporaneous
nominations of officials who will be running key parts of the Federal
Government. It also would be unprecedented in this committee, and could
expose the actions of the Commissioner to legal challenge.
Given these concerns, Chairman Hatch and I have reached an
agreement to wait to vote on that future term until next Congress. For
my part, if Mr. Saul is confirmed this year, I will support taking up
the second nomination without delay in the next Congress. I want to
thank Mr. Saul for appearing before the committee today and for his
willingness to serve.
______
Additional Statement From Hon. Ron Wyden
During the hearing on the nomination of Andrew Saul, Chairman Hatch
said that, under the Obama administration, SSA had, during budget
discussions, ``manipulated and cherry-picked data about SSA's budget to
the authorizing committees, appropriators, and various advocacy
groups.''
I understand that the chairman feels strongly about this issue,
but, respectfully, I do not share his view. For many years, I and other
members of the Finance Committee have relied on accurate data from SSA
to understand the agency's needs. In this case, I am comfortable with
the data that was provided to support the proposition that SSA's core
operating budget has shrunk by 10 percent since 2010 after adjusting
for inflation. Further, the Congressional Research Service has reached
a similar conclusion, writing, ``When adjusted for price and wage
growth over this period (Fiscal Year 2010 through Fiscal Year 2017),
general LAE funding fell by 10 percent and 19 percent, respectively.''
______
Communication
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Consumer First Coalition
2550 M Street, NW, 8th Floor
Washington, DC 20037
https://www.consumerfirstcoalition.org/
October 2, 2018
The Honorable Orrin Hatch The Honorable Ron Wyden
Chairman Ranking Member
U.S. Senate U.S. Senate
Committee on Finance Committee on Finance
Washington, DC 20510 Washington, DC 20510
Dear Chairman Hatch and Ranking Member Wyden:
On behalf of the members of the Consumer First Coalition (CFC), I am
pleased to submit this letter for the record for your Committee hearing
to consider the nomination of Andrew M. Saul, of New York, to be
Commissioner of Social Security for the term expiring January 19, 2019.
CFC represents a group of leading financial services companies
committed to combating new forms of fraud, protecting identities, and
upholding the privacy protections that are a hallmark of the financial
services industry. To meet these objectives and ensure consumer data
and accounts are kept safe, the financial sector is constantly evolving
and adapting to meet the dynamic challenges posed by sophisticated
cyber-criminals. Often, the best solution requires close collaboration
among public and private stakeholders.
Such is the case with efforts to combat synthetic identity fraud, a
particularly egregious form of identity theft that most often
victimizes children. Earlier this year, legislation was introduced to
address this type of fraud--the Protecting Children From Identity Theft
Act, S. 2498, sponsored by Senators Tim Scott (R-SC), Claire McCaskill
(D-MO), Bill Cassidy (R-LA) and Gary Peters (D-MI)--and a similar
version was signed into law as Section 215 of S. 2155, the Economic
Growth, Regulatory Relief, and Consumer Protection Act. This new law
directs the Social Security Administration (SSA) to modernize its
system that provides the financial industry the ability to verify
whether a given name, date of birth, and Social Security number (SSN)
match with what the SSA has on file. As part of a creditor's
underwriting and fraud review of a new applicant, this piece of
information can help prevent synthetic identities--which pair valid
SSNs with fabricated personal information in order to create a
``synthetic'' credit history--from getting off the ground and harming
the consumers whose SSNs were compromised.
Enacting this measure was a significant victory for consumers. Congress
and the new SSA Commissioner must now ensure implementation is a
success as well. CFC and other industry stakeholders are actively
engaged with SSA in positive discussions to drive the implementation
process forward. For example, while Congress specifically addressed the
importance of privacy and data security for users of the SSA's
verification system, it did not intend to deputize the SSA to regulate
financial institutions. Those regulators already exist (e.g., Office of
the Comptroller of the Currency, Federal Deposit Insurance Corporation,
Board of Governors of the Federal Reserve System), and we are working
with them to ensure that the legal protections afforded to the SSN
itself are applied to SSA's confirmation of the SSN's validity.
Financial institutions are regulated and examined for compliance to the
highest standards of privacy and cybersecurity. We are hopeful the
outcome will address the important concerns of Congress and the SSA,
but not create duplicative compliance burdens for financial
institutions.
Also, as you know, the new law gives the Commissioner of SSA broad
latitude to set fees and determine costs for users of the system on
both an ongoing basis to sustain the system, and to meet any system
build or expansion demands placed on SSA by the new law. Without
question, meeting the requirements of the law will result in
significantly increased volume and a greater need for reliability and
system up-time, which will require an investment by users of the system
to achieve.
While the financial industry recognizes the importance of implementing
a functional system that achieves Congress's goal of combating
synthetic identity fraud, I would stress the importance to the
Committee of ensuring costs to users are not so high as to derail both
the utility of the system and Congress's goal of protecting consumers
from fraud. Modern technologies such as scalable system architecture
and the increasingly common use of robust application programming
interfaces (APIs) to facilitate real-time data exchange are just some
of the methods and tools at SSA's disposal that can lead to a cost-
effective yet highly sophisticated system that achieves all of
Congress's goals.
In conclusion, thank you for holding this hearing today and taking an
important step toward confirming a new leader of the SSA. While
developing this verification system is just a small piece of the
broader SSA IT modernization effort the Commissioner will need to see
through to completion, it is one that has the potential to benefit
millions of Americans--especially children--who might otherwise become
victims of synthetic identity fraud. CFC is committed to working with
SSA to successfully implement this new law by leveraging member firms'
deep knowledge of privacy and data security compliance, as well as
technological expertise that comes from building the most cutting-edge
financial services platforms in the country.
Sincerely,
Jason Kratovil
Executive Director
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