Income Security Issues Issue Area Plan--Fiscal Years 1997 and 1998
(Letter Report, 04/01/97, GAO/IAP-97-8).
GAO presented its Income Security Issues issue area plan for fiscal
years 1997 and 1998.
GAO plans to focus on the following pivotal areas: (1) ensuring that
public funds for income security programs are spent efficiently and
protected from fraud and abuse; (2) improving the Social Security
Administration's service to the public at reduced cost; (3) evaluating
the adequacy of Social Security, and public and private pension systems
for future retirees; (4) redesigning the nation's disability programs to
ensure the validity of the determination process and encourage work; (5)
monitoring implementation of the 1996 welfare legislation; and (6)
assessing government efforts to protect children's welfare.
--------------------------- Indexing Terms -----------------------------
REPORTNUM: IAP-97-8
TITLE: Income Security Issues Issue Area Plan--Fiscal Years 1997
and 1998
DATE: 04/01/97
SUBJECT: Income maintenance programs
Welfare benefits
Social security benefits
Disability benefits
Disadvantaged persons
Fraud
Cost control
Retirement pensions
Program abuses
IDENTIFIER: Supplemental Security Income Program
Aid to Families with Dependent Children Program
AFDC
**************************************************************************
* This file contains an ASCII representation of the text of a GAO *
* report. Delineations within the text indicating chapter titles, *
* headings, and bullets are preserved. Major divisions and subdivisions *
* of the text, such as Chapters, Sections, and Appendixes, are *
* identified by double and single lines. The numbers on the right end *
* of these lines indicate the position of each of the subsections in the *
* document outline. These numbers do NOT correspond with the page *
* numbers of the printed product. *
* *
* No attempt has been made to display graphic images, although figure *
* captions are reproduced. Tables are included, but may not resemble *
* those in the printed version. *
* *
* A printed copy of this report may be obtained from the GAO Document *
* Distribution Facility by calling (202) 512-6000, by faxing your *
* request to (301) 258-4066, or by writing to P.O. Box 6015, *
* Gaithersburg, MD 20884-6015. We are unable to accept electronic orders *
* for printed documents at this time. *
**************************************************************************
Cover
================================================================ COVER
Health, Education, and Human Services Division
April 1997
INCOME SECURITY ISSUES
ISSUE AREA PLAN FOR FISCAL YEARS
1997 AND 1998
GAO/IAP-97-8
Abbreviations
=============================================================== ABBREV
FOREWORD
============================================================ Chapter 0
As the investigative arm of the Congress and the nation's auditor,
the General Accounting Office is charged with following the federal
dollar wherever it goes. Reflecting stringent standards of
objectivity and independence, GAO's audits, evaluations, and
investigations promote a more efficient and cost-effective
government; expose fraud, waste, abuse, and mismanagement in federal
programs; help the Congress target budget reductions; assess
financial and information management; and alert the Congress to
developing trends that may have significant fiscal or budgetary
consequences. In fulfilling its responsibilities, GAO performs
original research and uses hundreds of databases, or creates its own
when information is unavailable elsewhere. To ensure that GAO's
resources are directed toward the most important issues facing the
Congress, each of GAO's 32 issue areas develops a strategic plan that
describes the significance of the issues it addresses, its
objectives, and the focus of its work. Each issue area relies
heavily on input from congressional committees, agency officials, and
subject-matter experts in developing its strategic plan. Income
Security Issues focus on programs and policies at the Social Security
Administration (SSA), all non-health programs and policies at the
Department of Health and Human Services (HHS), and pension programs
and policies at the Department of Labor (DOL). Together, these
programs account for nearly 40 percent of all federal spending.
Millions of Americans rely on income security programs for financial
support. However, concerns about the high costs and rising caseloads
of the nation's two largest welfare programs--Aid to Families With
Dependent Children and Supplemental Security Income--led to major
legislative changes in these programs in 1996. Moreover, the
nation's Social Security and disability programs face continued
financial pressures and are the subject of current public debate
about their purpose and structure. On the pages that follow, we
outline Income Security's most significant planned work in the
following pivotal areas:
ensuring that public funds for income security programs are spent
efficiently and protected from fraud and abuse;
improving SSA's service to the public at reduced cost;
evaluating the adequacy of Social Security, and public and private
pension systems for future retirees;
redesigning the nation's disability programs to ensure the validity
of the determination process and encourage work;
monitoring implementation of the 1996 welfare legislation; and
assessing government efforts to protect children's welfare.
Because events may significantly affect even the best of plans and
because periodic measurement of success against any plan is
essential, our planning process allows for updating the plan and
responding quickly to emerging issues. If you have any questions or
suggestions about this plan, please call me, or Diana Eisenstat or
Mark Nadel, Associate Directors, at (202) 512-7215.
Jane L. Ross
Director
Income Security Issues
CONTENTS
============================================================ Chapter 1
TABLE I: KEY ISSUES
---------------------------------------------------------- Chapter 1:1
4
TABLE II: PLANNED MAJOR WORK
---------------------------------------------------------- Chapter 1:2
8
TABLE III: GAO CONTACTS
---------------------------------------------------------- Chapter 1:3
10
TABLE I: KEY ISSUES
============================================================ Chapter 2
Issue Significance Objectives Focus of work
----------------------------- ---------------------------------------------------------- -------------------------------------- -------------------------------------------------
Promoting efficiency, cost- Concerned about waste, abuse, and mismanagement in the 1. Identify waste, abuse, --Evaluate SSA efforts to ensure integrity of SSI
effectiveness: How adequate Supplemental Security Income (SSI) program, GAO designated mismanagement, and internal control program.
are efforts to ensure that SSI as a high-risk program area in 1997. GAO has also problems in SSI and welfare programs. --Identify potential improvements to SSA's
funds for income security identified weaknesses in SSA's efforts to ensure the overpayment collection practices.
programs are integrity of Social Security programs. In addition, 2. Assess how well SSA controls its --Identify means to improve initial and
efficiently spent? because of recent changes in the nation's welfare system, payments to recipients. continuing eligibility decisions.
accountability for more than $16.4 billion in block grants --Examine SSA's controls over payments to benefit
under the Personal Responsibility and Work Opportunity 3. Identify opportunities to manage recipients.
Reconciliation Act of 1996 will become an increasingly welfare, disability, Social Security, --Evaluate HHS' implementation of its welfare
important issue. The agencies involved also need to ensure and child support programs more reform responsibilities.
that they identify and pursue less expensive ways to effectively and at lower costs. --Examine efficiency of alternative means of
provide services, such as through contracting out and delivering welfare and other social services.
privatization. --Identify effective child support enforcement
practices.
Improving SSA service and SSA administers retirement, survivor, disability, and 1. Assess SSA's efforts to improve --Assess steps SSA has taken to improve
operations: welfare programs that annually provide over $367 billion agency performance. performance under the Government Performance and
How can SSA improve service in benefits to about 50 million recipients. The agency is Results Act.
to the public with fewer grappling with difficult policy and program challenges, 2. Provide information to the Congress --Evaluate SSA's reengineering implementation
resources? and at the same time it needs to meet customer on SSA's efforts efforts.
expectations in the face of growing workloads and reduced to reengineer its disability claims --Examine SSA's efforts to identify customer
resources. SSA expects to redesign inefficient work process. needs and develop cost-effective approaches to
processes and modernize its information systems to meeting its service delivery challenges.
increase productivity, knowing that its customer service 3. Assess how effectively SSA balances --Monitor SSA's efforts to modernize its
will deteriorate to unacceptable levels if it continues to serving the public and managing its information systems and technology.
conduct business as in the past. SSA will also need to limited resources.
effectively manage its workforce and consider what service
delivery structure will work best in the future. 4. Assess SSA's systems modernization
efforts.
Ensuring adequate retirement The prospective retirement of the "baby boom" generation 1. Study proposed solutions to Social --Examine options for addressing Social
benefits: raises questions about the ability of Social Security, Security's long- Security's funding problems.
Can Social Security and federal, state, and local government employee pension term funding problems. --Evaluate characteristics of 401(k) pension
pensions ensure adequate plans, and private pension systems to provide all promised plans.
retirement income as the retirement benefits. As baby boomers retire and live 2. Determine the effectiveness of --Examine the effectiveness of selected pension
population ages? longer, Social Security program expenditures are expected 401(k) plans in providing retirement regulations.
to exceed tax income beginning in 2012. Experts project income.
that the Social Security trust funds will be depleted by
2029, leaving insufficient funds to pay all expected 3. Assess the effectiveness of private
benefits. The Advisory Council on Social Security has pension
recently put forth three different proposals to ensure regulations.
long-term solvency. These proposals are likely to be hotly
debated over the next few years. In addition to
questioning the adequacy of funding for Social Security
benefits, many are concerned with the effectiveness of
some pension plan regulations and with recent changes in
plan characteristics.
Redesigning disability The Disability Insurance (DI) and SSI programs have faced 1. Identify better ways to promote the --Examine alternative ways to meet the needs of
programs: significant increases in both caseloads and expenditures. productive children with disabilities.
How can these programs best In 1995, almost 7.5 million individuals received these capacity of disabled beneficiaries. --Study factors that help disabled beneficiaries
ensure the cash benefits at a cost of $57 billion. SSA reports that work.
validity of the determination fewer than 1 out of every 500 beneficiaries on the 2. Monitor SSA's efforts to manage --Assess alternative ways to improve return-to-
process and disability rolls ever returns to work. However, promising disability work outcomes.
encourage work? disability management progress in the private sector and caseloads. --Assess SSA's progress in conducting continuing
recent medical, technological, social, and legal changes disability reviews.
suggest that more people with disabilities can work. In --Examine alternative means of making disability
addition, new ways to assess the ability of applicants to determinations.
function in the work place could improve the validity of --Monitor quality assurance changes under SSA's
the determination process. Significant legislative and redesign.
programmatic changes would be necessary for SSA to assist
beneficiaries to develop their return-to-work potential.
Promoting responsibility and The Personal Responsibility and Work Opportunity 1. Report on implementation and early --Monitor implementation of the new temporary
work: Reconciliation Act of 1996 ended the entitlement to results of the assistance for needy families block grant
What progress is being made assistance under the Aid to Families With Dependent block grants for temporary assistance requirements, including state approaches and
in Children program and replaced it with capped block grants for needy families in moving families issues, funding levels and allocations, and
implementing the 1996 to the states for temporary assistance for needy families. from welfare to work and in reducing program outcomes.
welfare The act gives states broad discretion over program design, welfare dependence. --Evaluate the adequacy of state and county
legislation? but conditions individual benefit receipt on participation information management systems and data for
in work or work-related activity and imposes a 5-year 2. Assess progress toward meeting evaluation and program management.
lifetime limit on benefits. The act also sets out personal other personal responsibility goals of --Evaluate child care needs of families under
responsibility goals, including enhancing child support the act. temporary assistance for needy families block
enforcement, reducing out-of-wedlock births, and grants and the availability of child care for
strengthening families; and restricts children's and 3. Evaluate effects of welfare reform low-income workers.
immigrants' eligibility for SSI benefits. The on select SSI populations. --Review implementation of child support
implementation of these changes will need to be studied to changes.
determine their effects on families, children, and welfare --Monitor implementation of welfare reform
caseloads and to ensure that they meet congressional changes on SSI program beneficiaries.
intent.
Protecting children's Dramatic increases in child abuse and neglect, and the 1. Assess the impact on child welfare --Identify the impact of recent reforms on foster
welfare: resulting increases in foster care caseloads, have of the 1996 overhaul of the welfare care and other child welfare programs' funding
How adequate are government stressed the entire child welfare system to the breaking system. and caseload size.
efforts to point. At the same time, families increasingly enter the --Evaluate efforts to better manage children's
protect vulnerable children? system with complex social problems that are difficult to 2. Examine innovative service delivery length of stay in foster care.
rectify, such as poverty, substance abuse, and domestic approaches to child welfare services. --Evaluate efforts to privatize foster care
violence. All levels of government will face challenges in services.
the years ahead as they attempt jointly to increase 3. Examine options for caring for --Examine the expanded role of kinship care.
positive outcomes for abused and neglected children within abused and neglected children who have --Examine the implications of foster care
greater budgetary constraints and while overhauling been removed from their homes. policies and practices for cases involving
welfare programs. parental drug abuse.
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
TABLE II: PLANNED MAJOR WORK
============================================================ Chapter 3
Issue Planned major job starts
----------------------------- -------------------------------------------------
Promoting efficiency, cost- �SSA's management oversight of the SSI program
effectiveness �Effectiveness of reducing SSI benefits when
living arrangements change
�Effectiveness of SSA's fraud referral process
for the SSI program
�Preventing SSI overpayments
�SSA's use of waivers, suspensions, and penalties
for overpayments
�SSA's acquisition of payment control and
eligibility data
�Extent of controls over Social Security pension
offsets
�Adequacy of SSA's quality assurance program for
detecting and correcting errors
�Effectiveness of offsetting disability benefits
for workers' compensation
�Making the Social Security card tamper-
resistant
�States' compliance with requirements under the
Temporary Assistance for Needy Families block
grant
�HHS' implementation of its responsibilities
under welfare reform
�Means-tested program benefits paid to
nonqualified aliens
�Privatization of social services
Improving SSA service and �SSA's efforts to improve agency performance and
operations address major challenges
�SSA's progress in reengineering its disability
claims process
�Opportunities for privatizing SSA services and
operations
�Accuracy of benefit amount calculations
�SSA's efforts to modernize technology (will be
done by Accounting and Information Management
Division)
Ensuring adequate retirement �Examine options for Social Security financing
benefits reform
�Women and pensions: lessons for Social Security
reform
�Examine the impacts of raising the Social
Security retirement age
�Comparing rates of return on Social Security
contributions with equity investments
�Experience with Social Security privatization in
other countries
�Effect of 10-percent rule on 401(k) plan
investments
�Mechanisms for protecting 401(k) plan
participants when employers make investment
decisions
�Effects of investor education programs on
employee investment behavior
�Exemption of state and local pension plans from
nondiscrimination testing
�Options to enhance pension portability
Redesigning disability �Alternatives for assisting disabled children on
programs SSI
�Factors affecting beneficiaries' decisions to
work
�Financial and medical incentives to return to
work
�SSA's strategy for, and progress in, conducting
continuing disability reviews
�Status of conducting mandated continuing
disability reviews for SSI recipients
�Progress in improving disability determination
methodology
�Differences in eligibility and benefits
determination between SSI and other means-tested
programs, and in the treatment of adults and
children on SSI
�Assess SSA's efforts to improve quality
assurance under disability redesign
Promoting responsibility and �Effect of work participation standards and state
work strategies for moving welfare recipients into
employment
�State policies regarding eligibility of
immigrants and effects of benefit cutoffs
�Benefit terminations follow-up
�Assess state progress and federal assistance in
developing information technology needed to
implement welfare programs (will be done by
Accounting and Information Management Division)
�Impact of state welfare policies on child care
�Implications of time-limited welfare for child
support enforcement programs
�Effects of SSI changes on children, immigrants,
drug addicts and alcoholics, and prisoners
Protecting children's welfare �Implications of welfare reform on funding for
foster care and related services
�Extent and effectiveness of concurrent
permanency planning for children entering the
foster care system
�Opportunities to improve the relationship
between child welfare agencies and the judicial
system
�Extent, effect, and outcomes of privatization of
foster care and other child welfare services
�Expanded role of kinship care
�Effects of parental drug abuse on foster care
caseloads and policies
--------------------------------------------------------------------------------
TABLE III: GAO CONTACTS
============================================================ Chapter 4
DIRECTOR
-------------------------------------------------------- Chapter 4:0.1
Jane L. Ross (202) 512-7215
ASSOCIATE DIRECTORS
-------------------------------------------------------- Chapter 4:0.2
Diana S. Eisenstat (202) 512-7215
Mark V. Nadel (202) 512-7215
ASSISTANT DIRECTORS
-------------------------------------------------------- Chapter 4:0.3
Cynthia Bascetta
David Bixler
Kay Brown
Gale Harris
Roland Miller
Frank Mulvey
Michael Packard
James Wright
Fred Yohey
Clarita Mrena (San Francisco Office)
*** End of document. ***