SSA Benefit Estimate Statements: Additional Data Needed to Improve
Workload Management (Letter Report, 05/20/97, GAO/HEHS-97-101).

Pursuant to a congressional request, GAO reviewed the Personal Earnings
and Benefits Estimate Statements (PEBES) impact on Social Security
Administration's (SSA) work, focusing on how well SSA has prepared for
the increasing workload resulting from implementing the PEBES
requirements and whether SSA's PEBES management and performance could be
improved.

GAO noted that: (1) SSA officials believe they will be able to handle
the increasing work expected to result from the PEBES initiative;
however, they lack enough information upon which to base this
conclusion; (2) even though SSA has made two test mailings to estimate
the effects of sending mandated statements and has more than 2 years'
experience in mailing the PEBES, the agency has not collected reliable
data on either the number of people who call or visit SSA with PEBES
questions or the number of earnings corrections resulting from the PEBES
mailings; (3) SSA could better manage the potential workload resulting
from the PEBES initiative if it began now to collect more complete and
accurate data on the effects of mailing the mandated statements; (4)
with these data, the agency could monitor the volume of work, assess the
adequacy of its implementation plans, and have an early warning of
problems so that it could adjust its plans before service to the public
would be impeded; (5) for example, if SSA would find that it needs
additional staff to answer telephone calls, it may need lead time to
install more telephones and train additional staff; (6) without adequate
advance warning to complete these activities, callers may have to endure
longer waiting times; and (7) moreover, better data on the reasons
people call and the problems they are having with their PEBES would
provide SSA with valuable information to help improve the statement.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  HEHS-97-101
     TITLE:  SSA Benefit Estimate Statements: Additional Data Needed to 
             Improve Workload Management
      DATE:  05/20/97
   SUBJECT:  Social security benefits
             Written communication
             Federal social security programs
             Public relations
             Customer service
             Telephone
             Retirement benefits

             
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Cover
================================================================ COVER


Report to the Chairman, Subcommittee on Social Security, Committee on
Ways and Means, House of Representatives

May 1997

SSA BENEFIT ESTIMATE STATEMENTS -
ADDITIONAL DATA NEEDED TO IMPROVE
WORKLOAD MANAGEMENT

GAO/HEHS-97-101

SSA Needs More Data About PEBES

(105940)


Abbreviations
=============================================================== ABBREV

  DCC - Division of Certification and Coverage
  OCRO - Office of Central Records Operations
  PEBES - Personal Earnings and Benefit Estimate Statement
  SSA - Social Security Administration

Letter
=============================================================== LETTER


B-266284

May 20, 1997

The Honorable Jim Bunning
Chairman, Subcommittee on Social Security
Committee on Ways and Means
House of Representatives

Dear Mr.  Chairman: 

The Congress enacted legislation in 1990 requiring that the Social
Security Administration (SSA) begin providing the public with annual
statements about its Social Security earnings records and estimates
of the amount of benefits individuals may receive.  These statements,
called Personal Earnings and Benefit Estimate Statements (PEBES),
have been available to the public upon request since 1988; however,
the legislation required SSA to start sending these statements
automatically in fiscal year 1995 to workers reaching age 60 and
older.  Starting in fiscal year 2000, SSA must mail the PEBES
annually to nearly every U.S.  worker aged 25 and older--an estimated
123 million people.  SSA projects that this effort will cost almost
$77 million in fiscal year 2000 alone, including $48 million for
production costs, such as printing and mailing the statement, and $29
million for personnel costs. 

The PEBES supplies workers with information about their earnings as
recorded by SSA and their eligibility for Social Security retirement,
survivors, and disability benefits.  In addition, the statement
provides estimates of these benefits and explains Social Security
programs, instructing individuals to call SSA if they have questions
or believe their earnings information is incorrect.  The public
depends on SSA to maintain accurate earnings records because
individuals' benefits are based on these records.  Most of SSA's
PEBES work involves handling the public's questions and making
necessary corrections to individual earnings records. 

As SSA implements the PEBES requirements, it is facing increasing
responsibilities in many other areas as well.  By the year 2015, when
baby boomers begin entering their mid-60s, the number of individuals
receiving benefits will reach an estimated 50.4 million, a much
larger number than the 37.4 million individuals receiving Social
Security retirement and survivors benefits in 1995.  Meanwhile, the
Congress and SSA have begun to emphasize providing the public with
service that is timely, accurate, and courteous.  In the current
fiscal environment, SSA is struggling to manage its growing workloads
and responsibilities with fewer resources. 

Concerned about the success of the PEBES initiative, you asked us to
examine SSA's progress in implementing the PEBES requirements.  In
our previous PEBES testimony and report, we addressed how effectively
the PEBES conveys information to the public and the reasonableness of
its benefit estimates.\1 This report addresses the PEBES's impact on
SSA's work--specifically, how well SSA has prepared for the
increasing workload resulting from implementing the PEBES
requirements and whether SSA's PEBES management and performance could
be improved.  To perform our review, we examined the results of the
tests SSA used to estimate its future work requirements, SSA's PEBES
budget, and workload statistics from 1995 and 1996.  In addition, we
met with SSA officials from the PEBES project and retirement benefits
experts.  We also met with SSA staff who respond to public inquiries
and observed them as they answered almost 100 telephone calls.  We
conducted our work from October 1996 to March 1997 in accordance with
generally accepted government auditing standards. 


--------------------
\1 SSA Benefit Statements:  Statements Are Well Received by the
Public but Difficult to Comprehend (GAO/T-HEHS-96-210, Sept.  12,
1996) and SSA Benefit Statements:  Well Received by the Public but
Difficult to Comprehend (GAO/HEHS-97-19, Dec.  5, 1996). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

SSA officials believe they will be able to handle the increasing work
expected to result from the PEBES initiative; however, they lack
enough information upon which to base this conclusion.  Even though
SSA has made two test mailings to estimate the effects of sending
mandated statements and has more than 2 years' experience in mailing
the PEBES, the agency has not collected reliable data on either the
number of people who call or visit SSA with PEBES questions or the
number of earnings corrections resulting from the PEBES mailings. 

SSA could better manage the potential workload resulting from the
PEBES initiative if it began now to collect more complete and
accurate data on the effects of mailing the mandated statements. 
With these data, the agency could monitor the volume of work, assess
the adequacy of its implementation plans, and have an early warning
of problems so that it could adjust its plans before service to the
public would be impeded.  For example, if SSA would find that it
needs additional staff to answer telephone calls, it may need lead
time to install more telephones and train additional staff.  Without
adequate advance warning to complete these activities, callers may
have to endure longer waiting times.  Moreover, better data on the
reasons people call and the problems they are having with their PEBES
would provide SSA with valuable information to help improve the
statement. 


   BACKGROUND
------------------------------------------------------------ Letter :2

The Omnibus Budget and Reconciliation Acts of 1989 and 1990 require
SSA to provide most workers aged 25 and older with annual unsolicited
PEBES statements starting in fiscal year 2000.\2 The PEBES supplies
information to workers on their year-by-year earnings as recorded by
SSA, their eligibility for Social Security retirement, survivors, and
disability benefits, and the estimated dollar amount of these
benefits.\3 The statement also describes Social Security programs and
benefits.\4 The legislation requires that SSA mail the PEBES
according to the schedule shown in table 1. 



                                Table 1
                
                PEBES Mandated Mailing Requirements and
                                Schedule

                        Individuals to receive
Fiscal year             PEBES\                  SSA's volume estimates
----------------------  ----------------------  ----------------------
1995                    Age 60 and over         6.7 million\a

1996-1999               Turning 60 during the   1.6 to 1.8 million
                        year                    annually

2000 and beyond         Age 25 and older        123 million annually
----------------------------------------------------------------------
\a This is SSA's total of mandated statements actually mailed in
fiscal year 1995. 

SSA officials have, however, modified this schedule to better manage
the impending workload.  SSA assumes that individuals are most likely
to contact the agency with questions or earnings corrections when
they receive their first mandated PEBES because in many cases this
will be the first time they have received a notice from SSA. 
Therefore, SSA officials decided to mail a larger number of
statements earlier than fiscal year 2000 to distribute the work
involved in first-time mailings over several years.  Under SSA's
accelerated schedule, more than 70 million individuals will receive
their first PEBES before fiscal year 2000, leaving just over 50
million to receive their first PEBES in fiscal year 2000.  Table 2
compares the volume of statements to be mailed according to SSA's
accelerated mailing schedule with that to be mailed according to the
mandated mailing schedule as required by the PEBES legislation. 



                                Table 2
                
                   Comparison of SSA's Mailing Volume
                     Estimates for the Mandated and
                         Accelerated Schedules


                                                                  2000
                                                                   and
                        1995\a    1996    1997    1998    1999  beyond
----------------------  ------  ------  ------  ------  ------  ------
Mandated                   6.7     1.6     1.7     1.8     1.8   123.0
Accelerated\b              6.7     5.0    10.0    20.0    30.0   123.0
----------------------------------------------------------------------
\a For fiscal year 1995, SSA mailed a PEBES only to those required by
the mandated schedule, individuals turning age 60 or older. 

\b The accelerated schedule began in fiscal year 1996, when SSA
mailed a PEBES to individuals turning age 60, as mandated, as well as
those turning age 58 and 59 during the year.  As SSA continues the
accelerated schedule in subsequent years, it will mail a PEBES to
increasingly younger people until people as young as 25 receive a
PEBES in fiscal year 2000. 

SSA's goals for the PEBES include to (1) better inform the public of
potential benefits under SSA's programs, (2) help individuals plan
for their financial futures, and (3) help individuals ensure that
their Social Security earnings records are complete and accurate. 
Accurate records are important because both an individual's
eligibility for benefits and the amount of benefits are based on the
earnings recorded by SSA.  Without the PEBES, individuals would most
likely learn of inaccuracies in their earnings records\5 only when
they file a claim for benefits.  By reviewing their PEBES, however,
individuals can identify problems with their earnings records
earlier.  This early identification is thought to be less time
consuming for SSA and the public because the information needed to
correct the problem, such as a copy of the W-2 form showing the
earnings in question, is more likely to be readily available closer
to the time earnings are reported to SSA. 


--------------------
\2 The 1989 act required SSA to send a PEBES every 2 years to those
who have a Social Security number, have wages or net earnings from
self-employment, are not currently receiving Social Security
benefits, and have a current address obtainable by SSA.  The act was
amended in 1990 to require annual mailing of these statements. 

\3 The legislation requires estimates of retirement benefits only for
individuals aged 50 and older.  SSA, however, has chosen to provide
retirement benefit estimates to individuals of all ages to simplify
the preparation of the statements. 

\4 App.  I contains a copy of a 1996 PEBES, which has been slightly
reduced to fit on the page. 

\5 Overall, the chance of SSA's incorrectly recording a wage is
slight.  According to SSA's Accountability Report for Fiscal Year
1996, 99 percent of reported earnings are posted accurately to
individuals' records.  This accuracy rate, however, still results in
more than 2 million in earnings items each year that cannot be linked
to specific individuals' records. 


      THE PEBES PROCESS
---------------------------------------------------------- Letter :2.1

Individuals have been able to request a PEBES from SSA since 1988,
and about four million people have done so each year.\6 Therefore, as
SSA began its preparations for the unsolicited mailings, it had some
experience with issuing relatively small numbers of the PEBES to
serve as a basis for the larger mailings.  The work of mailing the
PEBES falls into two categories:  (1) steps taken before the
statements are mailed and (2) steps resulting from mailing the
statements.  Figure 1 depicts the process SSA uses to issue the
PEBES. 

   Figure 1:  The PEBES Work
   Process

   (See figure in printed
   edition.)

Most of the work done before mailing the PEBES is computerized or
contracted out.  For example, SSA uses its computers to compile
information from each individual's earnings record and calculate the
benefit estimate.  SSA then electronically transmits this information
to a contractor for printing and mailing the statements.  After
individuals receive the statements, those who have questions or
discover problems with their earnings as recorded may contact SSA. 
Unlike the work required before mailing the PEBES, responding to
these questions and earnings problems can be time consuming and labor
intensive. 

Individuals who have questions or problems about their PEBES have
options for contacting SSA:  calling SSA's national 800 number, which
is answered at 1 of the 37 teleservice centers; calling or visiting
one of SSA's 1,300 field offices; or calling a PEBES-specific 800
number, which is answered by staff in the Division of Certification
and Coverage (DCC) of the Office of Central Records Operations
(OCRO).  OCRO maintains records of individuals' earnings and prepares
benefit computations.  The PEBES-
specific 800 number appears in the statement to encourage PEBES
recipients to contact SSA through DCC; however, individuals also can
and do contact the teleservice centers and field offices\7 with PEBES
questions. 

Workers in all of these offices can answer public inquiries, which
range from simple questions about the reason SSA sends out the
statement to detailed questions about SSA's programs and benefits. 
In addition, when individuals identify earnings problems, workers can
sometimes resolve them during the initial contact with the
individual.  Other earnings problems, however, are more time
consuming.  For example, if the earnings occurred before 1978, SSA
staff may have to manually search through older records on microfiche
to identify the problem, or SSA may have to wait for the individual
to document the earnings in question to correct the problem. 


--------------------
\6 To enable individuals who request a PEBES to more easily obtain
one, SSA began providing the statement through the Internet in March
1997.  This immediately raised privacy and security concerns,
prompting SSA to suspend the service.  For more information on this
issue, see Social Security Administration:  Internet Access to
Personal Earnings and Benefits Information (GAO/T-AIMD/HEHS-97-123,
May 6, 1997). 

\7 As required by the Congress, many of the field office numbers are
listed in the telephone book. 


   SSA LACKS INFORMATION NEEDED TO
   EFFECTIVELY PREPARE FOR FUTURE
   PEBES WORKLOAD
------------------------------------------------------------ Letter :3

Although SSA officials believe the agency will be able to handle the
increasing work likely to result from the PEBES initiative, they lack
sufficient information to ensure that SSA is fully prepared for this
workload.  Specifically, SSA has not collected reliable data on
either the number of people who contact SSA with questions about the
PEBES or the number of earnings corrections resulting from the PEBES
mailings. 


      SSA LACKS INFORMATION ON THE
      RESULTS OF THE PEBES
      MAILINGS
---------------------------------------------------------- Letter :3.1

SSA officials believe they will be able to handle the work expected
from future PEBES mailings; however, in making this assessment, SSA
has relied on information that is less complete and useful than it
could be.  To estimate the effects of the mandated PEBES mailings on
its staffing and operations, SSA conducted two tests.  The first
test, completed in 1994, tracked the work resulting from mailing the
PEBES to a sample of more than half a million individuals aged 26
through 65.  In conducting this test, however, SSA did not collect
reliable data on the number of people who contacted SSA with
questions about the PEBES or the reasons for these inquiries.  SSA
asked workers in the field offices and teleservice centers to
manually tally the inquiries resulting from the test mailings, but
some SSA officials expressed doubt about the accuracy of data
collected using this approach.  They said that manual tallies often
do not provide SSA with dependable information.  For example,
officials told us that they believed these staff did not consistently
record all PEBES-related contacts and some staff included other types
of contacts in their tallies.  SSA collected data on the volume of
calls DCC handled through its telephone system; however, it could not
identify how many of these inquiries were related to the test
mailings. 

The second test was designed, in part, to estimate the effect on the
volume of inquiries of mailing the PEBES to the same individuals 2
years in a row.  This information should help SSA test its assumption
that people are most likely to contact the agency about their PEBES
the first time they receive a statement.  On the basis of this
assumption, SSA believes that the PEBES workload will peak in fiscal
year 2000 and quickly plateau at a lower level.  If SSA's assumption
is correct, then its strategy of mailing a PEBES to more than half
the individuals targeted to receive a PEBES before fiscal year 2000
will indeed help distribute the work over the next few years, and the
PEBES workload will decrease quickly after fiscal year 2000.  On the
other hand, if SSA's assumption is incorrect, it will be harder to
predict when the volume of PEBES work will level off or begin to
decrease.  Consequently, staff that SSA assumes will be available for
other work after fiscal year 2000 would still be needed to do the
PEBES work.  Although the test was conducted in 1995, SSA has yet to
complete its analysis--nearly 2 years after collecting the needed
data. 

Now that SSA has begun mailing the PEBES under its mandated and
accelerated schedules, it can monitor the actual impact of the PEBES
mailings on its operations.  As with the test mailings, however, SSA
is not collecting sufficient data on the volume of and reasons for
the PEBES inquiries from the workers who deal directly with the
public.  As with the first test, SSA has collected data on the volume
of calls handled through DCC's telephone system, but it cannot
identify the number of such calls that relate to the mandated PEBES. 
In addition, neither the 800-number teleservice representatives nor
field office personnel track the volume of PEBES-related inquiries
they receive. 

Moreover, SSA cannot determine the number of earnings corrections
resulting from the PEBES mailings.  SSA staff at teleservice centers,
field offices, and DCC may make earnings corrections for different
reasons, some of which do not relate to the PEBES mailings.  For
example, when the computer records new earnings in individual
earnings records, the program used to enter the data also identifies
potential problems.  SSA staff then review these potential problems
in the earnings records and make corrections if needed.  Although SSA
collects data on the total number of earnings corrections made
agencywide, it cannot differentiate PEBES-related corrections from
corrections made for other reasons. 


      SSA CANNOT BE SURE IT IS
      PREPARED FOR FUTURE PEBES
      WORK
---------------------------------------------------------- Letter :3.2

Because SSA has not fully tested or monitored the PEBES's impact, the
agency does not know whether it will be able to effectively manage
the impending PEBES work.  According to its fiscal year 1998 budget,
SSA would continue to direct most--an estimated 80 percent--of the
PEBES work to DCC through fiscal year 2001.  The budget projects that
the number of DCC employees needed to complete this work will grow
from 88 of its current 830 employees in fiscal year 1997 to an
estimated 560 in fiscal year 2000, when SSA begins mailing 123
million mandated statements per year.\8 SSA officials told us,
however, that they recognize that DCC, as early as fiscal year 1999,
will not be able to absorb all of the future PEBES work while also
performing all of its other duties. 

In response to this situation, agency officials plan to shift some of
the PEBES work to other units; however, they have not developed an
explicit time table for this nor have they decided where to shift
this work.  To make this decision, SSA officials would have to
compare the demands of the PEBES work with the ongoing work of other
units.  For example, SSA is considering directing the PEBES work to
the teleservice centers by changing the telephone number listed on
the PEBES to the national 800 number.  Yet, as we have found in our
ongoing work, staff answering the national 800 number have struggled
to keep pace with the rapidly growing call volumes, and SSA has
initiated steps to improve callers' access and reduce waiting
times.\9 If SSA directs the PEBES calls to the national 800 number
without better data on the actual volume of PEBES-related calls it
anticipates, it may overburden the teleservice centers and diminish
the national 800 number's level of service. 

Moreover, SSA needs to begin collecting complete data on the volume
of PEBES inquiries now to allow sufficient lead time to prepare for
any shift in handling the PEBES work.  For example, if additional
staff are needed to answer telephone calls, these staff may need
training on the PEBES requirements or on answering PEBES-related
questions.  In addition, SSA may need to install more telephones or
related support equipment.  If lead time to complete these activities
is insufficient, callers may have to endure longer waiting times and
poor service once they reach a telephone representative. 

Finally, the option of shifting work to other units does not account
for the possible need for additional help for the field offices.  If
field offices receive more calls or visitors due to the PEBES than
they can handle, their levels of service may suffer.  Several field
office managers told us that relatively few PEBES recipients have
contacted their office with questions to date, but some expressed
concern about what they believe will be a likely increase in calls
and visits to their offices in fiscal year 2000. 


--------------------
\8 The budget refers to work-years, which in this context equals
roughly the number of SSA employees required to complete this work. 

\9 Social Security Administration:  More Cost-Effective Approaches
Exist to Further Improve 800- Number Service (GAO/HEHS-97-79,
forthcoming report). 


   COLLECTING AND USING KEY DATA
   COULD IMPROVE PEBES'S WORKLOAD
   MANAGEMENT
------------------------------------------------------------ Letter :4

SSA could improve implementation of the PEBES initiative by
collecting more complete data on the volume of and reasons for work
resulting from the PEBES mailings.  Better data on the reasons for
inquiries resulting from PEBES mailings could also help SSA improve
the statement by identifying parts of the statement that do not
communicate clearly. 


      IMPROVING PEBES
      IMPLEMENTATION
---------------------------------------------------------- Letter :4.1

More complete data on the effects of mandatory PEBES mailings would
help SSA determine these mailings' potential impact on its
operations, monitor its ability to manage this growing workload, and
make timely adjustments to its implementation plans if needed.  These
data would help SSA decide when and where to shift the PEBES work as
it becomes too much for DCC to handle.  Specifically, SSA could
collect more complete data on the number of people who contact the
agency with PEBES questions, the reasons for their calls and visits,
and the number of corrections made to earnings records as a result of
the PEBES mailings.  For example, SSA could systematically collect
more detailed data from the DCC telephone staff who have regular
contact with the public.  By making minor revisions to the types of
data staff collect for each telephone call, SSA could identify both
the number of calls that relate to the mandated mailings and the
number that result in earnings corrections.  In addition, SSA could
begin to collect data on the number of PEBES-related calls to the
national 800-number representatives.\10 SSA could also consider
collecting more detailed data on earnings corrections to allow it to
differentiate PEBES-related corrections from corrections made for
other reasons. 

Information on the workload effects of the mandatory mailings could
also indicate the need for more fundamental changes.  For example, if
SSA finds it has underestimated the volume of work resulting from
PEBES mailings and it cannot handle this work without diminishing
other services to the public, one option would be to pursue actions
to permit mailing the statements less often.  This would, however,
require congressional action.  Although most private pension programs
mail yearly statements to their participants, none mails to 123
million people.  We asked several benefit experts for their opinions
on how often the PEBES should be mailed to individuals, but we found
no consensus.  Some believe that the PEBES should be mailed annually,
while others believe that a less frequent mailing schedule would be
adequate.  SSA received more consensus from the public on this
subject.  The majority of those responding to two public opinion
surveys conducted by SSA replied that they would be satisfied with
less frequent than annual PEBES mailings.  For example, if SSA
adopted a 3-year staggered cycle, it would mail approximately 41
million statements a year in fiscal year 2000 and beyond rather than
the projected 123 million annual statements currently planned.  This
approach would also reduce the estimated annual $48 million of
production costs by one-third. 


--------------------
\10 The number of PEBES-related calls could be obtained as part of a
larger effort to gather detailed information on the reasons people
call the national 800 number.  In our forthcoming report on SSA's
national 800-number service, we discuss the benefits of collecting
more detailed data, which SSA could use to better and more
cost-effectively serve the public. 


      IMPROVING PEBES REDESIGN
      EFFORT
---------------------------------------------------------- Letter :4.2

In addition to aiding SSA by providing early warnings of future
problems, more detailed and complete information on the volume of and
reasons for inquiries resulting from PEBES mailings could be used to
help SSA ensure that the PEBES communicates information to the public
clearly and effectively.  We concluded in our December 1996 PEBES
report that the current statement does not clearly convey some of the
complex benefit and program information it contains.  For example,
PEBES 800-number telephone representatives told us that the public
often asks questions about the PEBES's explanation of family
benefits.\11 These benefits are hard to explain because their amounts
depend on several factors.  We recommended that SSA revise the PEBES
to improve its layout and design and to simplify explanations.  We
also concluded that SSA can ensure that its current redesign project
targets the most significant weaknesses by systematically obtaining
more detailed information on the volume of and reasons for PEBES
inquiries being handled by the workers who deal directly with the
public.  Information on the reasons for these inquiries could help
SSA better determine which parts of the statement pose problems for
recipients.  Clarifying the PEBES could help to prevent unnecessary
inquiries, reducing some of the future PEBES work.  In response to
our findings, SSA has recently begun collecting more detailed
information on the reasons for calls DCC handles.  SSA's current
redesign effort is expected to produce a new PEBES for the 1999
mailings. 


--------------------
\11 SSA uses the term "family benefits" to refer to benefits paid to
a worker's spouse or young children when the worker is retired or
disabled. 


   CONCLUSIONS
------------------------------------------------------------ Letter :5

The PEBES will be sent to nearly every U.S.  worker aged 25 and older
in fiscal year 2000 and beyond; yet SSA has not taken the necessary
steps to ensure that it is fully prepared for the potential workload. 
For SSA to better manage the PEBES initiative and increase the
likelihood of its success, the agency needs to collect more complete
data on the number of people who contact SSA with questions about the
PEBES, the reasons for their calls and visits, and the number of
corrections made to earnings records as a result of the PEBES
mailings.  SSA needs to begin now to collect this information so that
it has enough time to make any adjustments for handling the PEBES
workload without compromising service to the public.  In addition,
SSA needs to begin using these data in its current effort to redesign
the PEBES for its 1999 statement. 


   RECOMMENDATION TO THE
   COMMISSIONER OF SOCIAL SECURITY
------------------------------------------------------------ Letter :6

To better manage the PEBES initiative, we recommend that SSA
systematically collect more detailed feedback from the workers who
deal directly with the public on the number of and reasons for PEBES
inquiries and more detailed information on the number of earnings
corrections specifically linked to the PEBES mailings. 


   AGENCY COMMENTS AND OUR
   EVALUATION
------------------------------------------------------------ Letter :7

In commenting on a draft of this report (see app.  II), SSA said that
it believes its current approach enables it to effectively monitor
the PEBES workload and assess the need for any changes in the
process.  SSA stated that it has had 2 full years of experience with
the PEBES workload and believes that the data it currently collects
on the number of PEBES-related inquiries and earnings corrections are
sufficient to project likely future work. 

We still believe, however, that SSA officials lack sufficient
information to ensure that SSA is fully prepared for the PEBES
workload and that the agency could better manage the potential
workload with more complete and accurate data on the effects of
mailing the mandated statements.  Although SSA does collect data on
certain aspects of the PEBES work, these data are either not detailed
enough or do not accurately reflect work resulting from mandated
PEBES mailings.  For example, SSA officials stated that the data
collected from both the PEBES-specific 800 number and SSA's system
for reviewing a sample of national 800-number calls provide enough
information to project the future PEBES-related inquiry workload. 
SSA cannot identify, however, how many PEBES-specific 800-number
calls relate to the mandated PEBES mailings and how many calls result
in earnings corrections.  SSA officials also stated that the data SSA
collects on the number of earnings corrections completed before a
worker files a claim for benefits can be used to project the impact
of mailing the PEBES by comparing the past volume of earnings
corrections with current and future volumes.  As we reported,
however, the data SSA collects on this type of earnings correction
also include corrections made for other reasons, making it hard to
isolate the effect of the PEBES mailings.  SSA officials stated that
they would be interested in reviewing our suggestions about specific
data elements that could be collected to help estimate future PEBES
work.  We will work with SSA personnel to provide specific
suggestions. 

In addition, SSA stated that its current technology provides the
flexibility to direct the flow of PEBES-related work without
adversely affecting service to the public or burdening any single
operations component.  We agree that SSA can shift the PEBES work by
redirecting the telephone calls resulting from the PEBES mailings. 
Given SSA's emphasis on serving the public and improving its national
800-number service, however, more complete data on the volume of the
PEBES workload will enable SSA to better monitor the impact of the
work on its operating units and make timely and well-
planned shifts to other units before service to the public would be
compromised. 

Finally, SSA agreed that redesigning the PEBES form is necessary and
reported that it has already begun taking steps to improve the
statement. 


---------------------------------------------------------- Letter :7.1

We are sending copies of this report to the Acting Commissioner of
Social Security and other interested parties.  Copies will also be
made available to others on request.  If you or your staff have any
questions about this report, please call me on (202) 512-7215 or
Cynthia Fagnoni, Assistant Director, on (202) 512-7202.  Other major
contributors to this report include Kay Brown, Evaluator-in-Charge;
Hans Bredfeldt, Senior Evaluator; and Nora Landgraf and Elizabeth
Jones, Evaluators. 

Sincerely yours,

Jane L.  Ross
Director, Income Security Issues




(See figure in printed edition.)Appendix I
PERSONAL EARNINGS AND BENEFIT
ESTIMATE STATEMENT
============================================================== Letter 



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)



(See figure in printed edition.)




(See figure in printed edition.)Appendix II
COMMENTS FROM THE SOCIAL SECURITY
ADMINISTRATION
============================================================== Letter 



(See figure in printed edition.)


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