Social Security announces workforce and organization plans
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Consistent with recent executive orders issued by the White House, the Social Security Administration will continue to implement efficiencies and reduce costs, with a renewed focus on mission critical work for the American people.
The agency plans to reduce the size of its bloated workforce and organizational structure, with a significant focus on functions and employees who do not directly provide mission critical services. Social Security recently set a staffing target of 50,000, down from the current level of approximately 57,000 employees. Rumor of a 50 percent reduction is false.
Initial steps to reduce the workforce included offering a limited number of employees the opportunity to leave the agency under the Deferred Resignation Program and Voluntary Early Retirement (VERA).
The agency announced to all employees that Social Security would soon implement agency-wide organizational restructuring that will include significant workforce reductions. The announcement includes offering Voluntary Separation Incentive Payments (VSIP) to all employees on a first come first serve basis and expanding VERA to all employees. Both VERA and VSIP require employees to opt in and to separate from the agency by specific dates.
Social Security anticipates that much of the staff reductions needed to reach the target of 50,000 will come from retirement, VSIP, and resignation. Additional reductions will come from reduction-in-force (RIF) actions that could include abolishment of organizations and positions. RIF also can include directed reassignments from one position to another position in the agency. Agencies are required to submit their RIF plans to the Office of Personnel Management (OPM) by March 13, 2025. No date has been set when a RIF might begin after OPM approves the plan.
SSA has operated with a regional structure consisting of 10 offices, which is no longer sustainable. The agency will reduce the regional structure in all agency components down to four regions. The organizational structure at Headquarters also is outdated and inefficient. SSA will now have seven Deputy Commissioner level organizations.
These steps prioritize customer service by streamlining redundant layers of management, reducing non-mission critical work, and potential reassignment of employees to customer service positions. Also supporting this priority is looking for efficiencies and other opportunities to reduce costs across all spending categories, including information technology and contractor spending. SSA is committed to ensure this plan has a positive effect on the delivery of Social Security services.
Social Security announces options to its workforce
The Social Security Administration (SSA) will soon implement agency-wide organizational restructuring that will include significant workforce reductions. Through these massive reorganizations, offices that perform functions not mandated by statute may be prioritized for reduction-in-force actions that could include abolishment of organizations and positions, directed reassignments, and reductions in staffing. The agency may reassign employees from non-mission critical positions to mission critical direct service positions (e.g., field offices, teleservice centers, processing centers). Reassignments may be involuntary and may require retraining for new workloads.
Dissolves duplicative office
The Social Security Administration today announced the closing of a component within the agency, the Office of Civil Rights and Equal Opportunity. Employees in this office will be put on administrative leave effective today.
“Our focus is supporting President Trump’s priorities, which include streamlining functions and prioritizing essential work,” said Lee Dudek, Acting Commissioner of Social Security. “Terminating the Office of Civil Rights and Equal Opportunity, and reassigning statutory responsibilities performed by this office, advances the President’s goal to make all of government more efficient in serving the American public.”
SSA will transfer responsibility for processing Equal Employment Opportunity complaints, reasonable accommodation requests, and other statutorily required functions to other SSA components to ensure compliance with existing legal authorities.
Eliminates department
The Social Security Administration today announced the closing of a component within the agency, the Office of Transformation. Employees in this office will be put on administrative leave effective today.
“President Trump has mandated the Federal government eliminate wasteful and inefficient offices and the Office of Transformation was a prime example,” said Lee Dudek, Acting Commissioner of Social Security. “This redundant office was created under the previous administration, and we are righting that wrong.”
Expedited retroactive payments and higher monthly benefits
The Social Security Administration announced it is immediately beginning to pay retroactive benefits and will increase monthly benefit payments to people whose benefits have been affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits for over 3.2 million people who receive a pension based on work that was not covered by Social Security (a “non-covered pension”) because they did not pay Social Security taxes. The Social Security Fairness Act ends WEP and GPO.
“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” said Lee Dudek, Acting Commissioner of Social Security. “The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation. The American people deserve to get their due benefits as quickly as possible.”
People who will benefit from the new law include some teachers, firefighters, and police officers in many states; federal employees covered by the Civil Service Retirement System; and people whose work had been covered by a foreign social security system.
Many beneficiaries will be due a retroactive payment because the WEP and GPO offset no longer apply as of January 2024. Most people will receive their one-time retroactive payment by the end of March, which will be deposited into their bank account on record with Social Security.
Many of these people will also receive higher monthly benefits, which will first be reflected in the benefit payment they receive in April. Depending on factors such as the type of Social Security benefit received and the amount of the person’s pension, the change in payment amount will vary from person to person.
Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment. Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail, because the President understands how important it is to pay people what they are due right away. Social Security is expediting payments using automation and will continue to handle many complex cases that must be done manually, on an individual case-by-case basis. Those complex cases will take additional time to update the beneficiary record and pay the correct benefits.
Social Security urges beneficiaries to wait until April to ask about the status of their retroactive payment, since these payments will process incrementally into March. Since the new monthly payment amount will begin with the April payment, beneficiaries should wait until after receiving their April payment, before contacting Social Security with questions about their monthly benefit amount.
Visit the agency’s Social Security Fairness Act webpage to learn more and stay up to date on its progress. Visitors can subscribe to be alerted when the webpage is updated.