[Congressional Record Volume 161, Number 125 (Tuesday, August 4, 2015)]
[Senate]
[Pages S6297-S6299]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. HATCH (for himself, Mr. Coats, Mr. Lankford, and Mr.
Blunt):
S. 1922. A bill to amend titles II and XVI of the Social Security Act
to provide for quality reviews of benefit decisions, and for other
purposes; to the Committee on Finance.
Mr. HATCH. Mr. President, I rise to speak once again on the Social
Security Disability Insurance--or DI--Program. As everyone in this
Chamber should know, the DI trust fund is projected to be exhausted
next year. That means, absent any change in law, we will be seeing
across-the-board benefit cuts of close to 20 percent for DI
beneficiaries. Over the last several months, I have come to the floor
on a handful of occasions to talk about this program and the imminent
depreciation of its trust fund.
I have called on my colleagues on both sides of the aisle to work
with me to address these issues. I will repeat that call today.
In addition, today I have introduced three separate bills that are
designed to help update and improve the administration of the DI
program. As we talk about solutions to address the depletion of the DI
trust fund, we should also be talking about ways to update the DI
program, ways to make it easier for beneficiaries who can and who
desire to return to work to be able to explore those opportunities and
ways to improve efforts to deter and prevent waste and fraud.
The first bill I introduced today would update and expand the Social
Security Administration's tools to deter and punish fraudsters who
cheat the system. The second bill would authorize the Commissioner of
SSA to provide denied DI applicants with information about employment
support services that are provided by both public agencies and private
nonprofit organizations.
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That information will help denied applicants find opportunities to
reenter the workforce, instead of continually cycling through the DI
application process. The third bill would require SSA to review hearing
decisions by administrative law judges to ensure that they are
following the law as well as Social Security regulations and policy.
All three of these bills are designed to improve the administration of
this disability program and make it work better for beneficiaries and
taxpayers. They will not, by themselves, solve all of the program's
fiscal problems, but they will improve the DI system.
More work will need to go into this effort, and as chairman of the
committee with jurisdiction over the DI program, I am committed to
solving these problems and preventing the massive benefit cuts we will
see under current law. I would like to point out three things about my
stated approach to dealing with the DI program.
First, you will note I have not used the word ``crisis'' to describe
what is happening with the DI trust fund. Second, you would be hard-
pressed to find any proposal I have submitted that could credibly be
characterized as ``slashing'' DI benefits. Third, nothing I have put
forward either today or in the past could conceivably be thought of as
``privatizing'' disability insurance.
I have to point this out because a number of people, including some
of my friends on the other side of the aisle, have described the
Republican efforts to address the DI trust fund depletion using some of
those very same words.
These individuals are currently more interested in turning this issue
and the coming benefit cuts into a political football than in actually
solving the problem. My question is, What good will that do for the DI
program or its beneficiaries? It is not just the DI program that has
problems. Social Security, in general, faces a number of significant
fiscal and policy challenges.
In their most recent report, the Social Security board of trustees,
which includes several members of President Obama's Cabinet,
recommended ``that lawmakers address the projected trust fund
shortfalls in a timely way in order to phase in necessary changes
gradually and give workers and beneficiaries time to adjust to them.''
That says to me the sooner we act to put Social Security on a
sustainable fiscal path the better it is for Americans and their
security. It clearly does not mean we should ignore the financial
problems facing Social Security or kick the can down the road, hoping
some future Congress will get its act together and solve the problems.
Of course, providing financial sustainability to Social Security is
easier said than done. There are reasonable disagreements over how best
to address Social Security's fiscal shortfalls, including different
views on payroll tax revenues that fund the program and how quickly
promised benefits will grow in the future. Yet we should not limit the
discussion to taxes and outlays.
We also should look at how the program can be improved and brought
up-to-date. For example, the vocational grids and medical guidelines
that SSA uses in the disability program are woefully out of date, and
much of the existing structure of Social Security's retirement program
was developed long ago, when labor markets and work patterns were much
different than they are today.
We should be working to address all of these challenges, both the
fiscal and policy challenges now, instead of putting them off for later
days. With respect to the DI program in particular, I have been working
for some time now to obtain input from experts and stakeholders across
the spectrum to figure out how we can make the program work better.
Joined by House Ways and Means Committee Chairman Ryan and Social
Security Subcommittee Chairman Johnson, I have solicited input from
stakeholders in various venues and continue to welcome ideas or
proposals from anyone who wants to submit them.
The bills I have dropped today are just the latest in a series of
bills I have introduced to help jump-start the discussion of DI
reforms. We should not sit idly by and wait for another financing cliff
to appear around the end of next year. As the Social Security trustees
made clear, the sooner Congress acts to address these shortcomings, the
better. Neither DI beneficiaries nor taxpayers benefit from lingering
uncertainty about how the impending trust fund depletion will be
resolved.
As I have said many times, I am ready and willing to have this
conversation. Sadly, up to now, I have heard nothing in response from
the Obama administration and very little from my colleagues on the
other side of the aisle. Anyone familiar with the current state of the
DI trust fund would likely acknowledge that we are going to have to
reallocate resources into the fund if we are going to prevent the
impending benefit cuts from happening next year.
Most proposals I have seen, including those from the President's
budget, involve a shuffling of money from Social Security's retirement
fund to the DI trust fund, but even if we have to reallocate resources
to shore up the DI program, we should not delay confronting the obvious
need for reform. On this point, I will once again quote the most recent
report from the Social Security trustees, which says, ``Reallocation of
resources in the absence of substantive relief might serve to delay DI
reforms and much-needed corrections for Social Security as a whole.''
It is true that as many of my colleagues have noted, there have been
bipartisan agreements to reallocate resources within Social Security in
the past. However, in virtually every case, the reallocations were
accompanied by substantive policy changes. This time should be no
different. The last time we reallocated resources from the retirement
to the DI trust fund, DI awards were increasing unexpectedly and
Congress needed to examine the reasons for this increase before acting
to change the way the DI system worked.
At the time, most people agreed that reforms were necessary and that
the reallocation would buy the time Congress needed to come up with
those reforms, get them enacted, and put the trust fund on sound fiscal
footing. That was more than 20 years ago. Sadly, though not
surprisingly, Congress did not follow through with the reforms, and we
now face another reserve depletion in the trust fund.
Needless to say, doubling down on the same strategy, a strategy that
has already failed to produce the needed policy changes, is not a
prudent course of action. In my view, any resource reallocation that
gets enacted must be accompanied by changes in the DI program. However,
the President does not seem to share this view. The administration has
called for a stand-alone reallocation of payroll tax receipts away from
the retirement and survivor's trust fund and into the DI trust fund.
This proposal would, depending on the estimate, extend the life of
the DI program to the early 2030s, at which point both Social Security
trust funds, disability and retirement, will be exhausted at the same
time, triggering massive benefit cuts for all beneficiaries. In fact,
there are those who would argue that the Social Security retirement
fund is already exhausted and deeply in debt.
That is their idea of a responsible approach to a widely acknowledged
fiscal problem. Outside of the stand-alone reallocation scheme, the
President's budget offers precious little in the way of reforms to the
DI program or Social Security in general. In other words, the Obama
administration's entire answer to all of Social Security's many fiscal
problems is literally to just let future Congress's and administrations
deal with those problems.
This, to me, would be the height of irresponsibility. While it may
not be possible, absent some kind of resource allocation, to keep the
DI program's current promises between now and the end of the year, we
can and should take meaningful steps now to improve the program. That
is my goal. I hope enough of my colleagues share this goal to make it a
reality.
If we are going to get there, it is going to require bipartisan
cooperation on both ends of Pennsylvania Avenue. In other words, we are
going to need to see more from the administration than we have seen
thus far. It is already August. Despite my repeated requests to the
administration and my friends on the other side of the aisle to engage
[[Page S6299]]
with me to work on this issue, I have yet to hear a meaningful
response. I hope that will change.
There is no harm in discussing options. I am willing to discuss any
and all options to fix these problems. There is, on the other hand, a
great deal of potential harm to DI beneficiaries if we continue to
ignore the problem while waiting for a financial cliff to force
people's hands. Once again, I urge my friends on both sides of the
aisle to engage on this issue now, and do not wait until it is too late
to take meaningful action.
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