Letter to the Hon. Carolyn Colvin, Acting Commissioner, Social Security Administration - Regarding GAO Report on Infirmation Accessability for In-person Claimants

Letter

Dear Acting Commissioner Colvin,

I am writing in response to the Government Accountability Office (GAO)'s recent study, which found that the Social Security Administration (SSA) does not consistently provide enough information to in-person claimants during the claims process to allow them to make well-informed decisions about their retirement.

As you know, many eligible individuals claim Social Security retirement benefits at the earliest possible age, even though they could receive higher benefits by waiting to claim benefits at an older age. GAO reviewed several surveys and academic studies and found that many individuals do not fully understand how Social Security rules can potentially affect their retirement benefits.

While SSA makes information related to claiming retirement benefits available through its publications, website and personalized benefits statements, GAO observed that claimants were not consistently given enough information in person to make well-informed decisions. For example, GAO found that claims specialists sometimes failed to discuss the advantages and disadvantages of delaying claims. GAO also found that claims specialists did not provide some claimants with complete information about how the retirement earnings test could potentially impact their benefits. SSA's Program Operations Manual System specifically states that claims specialists should explain the advantages and disadvantages of filing a retirement benefits claim so claimants can make an informed filing decision.

Without understanding important information - including that retirement benefits are based on the highest 35 years of earnings or that life expectancy is an important fact to consider in determining when to claim retirement benefits - I am concerned that some claimants are making choices that will impact the rest of their lives without having the knowledge necessary to make a well-informed decision.

I therefore respectfully request a response to the following questions:

1. What steps will SSA take to ensure that claims specialists provide information on delayed benefits, consistent with the Program Operations Manual System, to in-person claimants?

2. Do in-person claimants currently receive an estimate of benefits that compares benefits received if the claimant files a benefits claim at the earliest possible age versus benefits received for delaying their claim?

3. What steps will SSA take to ensure that claims specialists clearly explain the retirement earnings test and inform claimants that any benefits withheld because of earnings above the earnings limit will result in higher monthly benefits starting at full retirement age?

4. What steps will SSA take to ensure that the claims process include basic information on how life expectancy and longevity risk may affect the decision to claim benefits?

While claims specialists are not financial advisors, SSA has a duty to ensure that all claimants - no matter what platform they use to file a claim - are given important information so that claimants are able to make well-informed decisions regarding their retirement benefits.

Thank you for your prompt attention to this issue and I look forward to your timely response.

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