Social Security Administration Warns of Massive Layoffs: What It Means to You
The Social Security Administration is gearing up to layoff thousands of workers. Here’s how it can impact you.
The Social Security Administration (SSA) is gearing up for massive layoffs as part of the Department of Government Efficiency(DOGE)'s efforts to cut waste in the federal government.
In a memo sent to employees, the SSA said it will soon implement agency-wide organizational restructuring that will include significant reductions in staff.
“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,” wrote the SSA.
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The job cuts could be as high as 50% of the SSA’s workforce of 60,000, reported the Associated Press.
This is the latest salvo in DOGE’s overhaul of SSA. The SSA just closed around ten Social Security offices located across the country.
Social Security layoffs: how it could impact beneficiaries
A workforce reduction of this magnitude at the Social Security Administration could adversely impact Social Security recipients.
After all, the agency is responsible for processing new applications, managing SS accounts and handling in-person or on-the-phone inquiries.
If they have less employees it may create bottlenecks in providing support and services.
“The Social Security Administration is already chronically understaffed. Now, the Trump Administration wants to demolish it.” says Nancy Altman, President of Social Security Works, the non-profit focused on protecting and expanding Social Security, Medicare and Medicaid.
“If Musk's plan goes through, it will deny many Americans access to their hard-earned Social Security benefits," she said. "Field offices around the country will close. Wait times for the 1-800 number will soar."
What you may encounter
If you have a problem with your benefits it may be harder to resolve your issue. Longer wait times on the phone and delayed resolutions may become common.
If you're planning on collecting Social Security benefits be prepared to wait longer for benefits to kick in.
“For new applications, being able to process those claims depends on the SSA maintaining accurate earnings history for individuals,” says Jack Smalligan, senior policy fellow at the Urban Institute, the D.C. non-profit think tank. "Maintaining that system requires non-frontline staff."
People filing for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) disability benefits could be particularly hurt by this.
As it stands there is a nearly 2 million backlog of claims for benefits. It takes seven months on average for an initial eligibility determination, according to data from the Urban Institute. Further staffing cuts would exacerbate backlogs and lengthen wait times, the Urban Institute warned.
What happens to SSA staffers?
SSA employees have a few options: apply for reassignment, resign with incentive pay, retire early or ride it out and hope they survive.
Employees opting to apply for reassignment must fill out a "Reassignment Questionnaire" no later than March 14.
Employees opting to resign with incentive pay must opt in by March 14 and "separate from the agency" no later than April 19. Any employee who agrees to this will be placed on administrative leave during the time between when they opt in and April 19.
These employees will be given a lump sum based on the grade level within the federal government. Payouts are as follows:
Up to GS 8: $15,000
GS 9 – 12: $20,000
GS 13 and up $25,000
Employees who resign also get paid out for their annual leave and may be eligible for a deferred retirement when they reach their minimum retirement age.
For employees who are eligible for early retirement, they have until December 31, 2025. The SSA warned that during the time they are employed they could be subject to restructuring activities.
What you can do
Much of what happens is out of your control, especially if you haven't filed for Social Security benefits yet. But there are steps you can take to prevent any issues.
If you don’t have an online account you can and should set it up at my Social Security account. If you have an existing account, make sure all the information is accurate and up-to-date.
Obtain and save a copy of your Social Security earnings. Typically the SSA will send a copy in the mail or you can access it through online services. If you don't have an online account call SSA or visit a field office.
If you have business you need to conduct with the SSA, it's best to schedule an appointment online or by phone. If possible, don't delay!
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