Fairfax Social Security Disability Attorney, Sheri Abrams, reveals why most people will no longer receive paper earnings statements from the Social Security Administration.
In January, the Social Security Administration (SSA) announced that they would greatly reduce the number of paper statements that are mailed out. Paper statements will only be sent to people who are 60 and over who are not getting benefits and do not have an online (My Social Security) account.
This change is estimated to save the SSA approximately $11.3 million in 2017. This change was necessary due to the administration receiving less funding for the management of services than last year.
The funds distributed by the SSA are collected through Federal Insurance Contributions Act (FICA) and Self-Employed Contributions Act (SECA) taxes that are deducted from U.S. employee’s paychecks. The funds collected are used to pay Social Security benefits to more than 60 million retired, disabled and widowed workers and their children.
A small amount of the taxes collected go toward the management of the SSA for services such as taking applications, answering questions, verifying benefit amounts and reviewing appeals. Each year the congress decides how much money the administration can use to manage the programs and pay their staff. This issue has not been settled yet, so the administration is operating on a continued resolution (CR) with less funding than in past years. Therefore, they made the decision to eliminate the cost of producing and mailing paper statements.
Congress has until April 28, 2017 to pass a spending bill for the full year or pass another CR. The budget is unknown until then, but even if the budget remains the same or is increased, it is unlikely that the paper statements will be reinstated.
All of the information related to your benefits can be found using the online system My Social Security and that is the best way to ensure that you have the most current information related to your account.