SSA  projects that the benefit payments and number of beneficiaries for the  three programs will increase in fiscal years 2008 and 2009 (see tables 1 and  2). Field offices, which served approximately 42 million customers in fiscal  year 2007, are a vital component for delivering SSA services to the public. Figure 1 shows the various options by which  customers may conduct their business with SSA. Field Offices Largely Met Work Demands with Fewer Staff, but Staffing Reductions May Have Contributed to Some Adverse Effects

Despite operating with fewer staff from fiscal year 2005 to 2007 and an  increased demand for services, field offices largely met work demands;  however, staffing reductions may have contributed to some adverse  effects. SSA and its field offices used various strategies to manage work  demands, such as sharing work among offices, redirecting staff to serve  critical needs outside of their usual responsibilities, encouraging customer  use of the internet and telephone services, and deferring certain work. In addition, staff are experiencing high  stress levels, lacking sufficient time for training, and facing other adverse  effects according to field office managers and staff. As a result, the average amount of work produced by field office staff  increased by 4.9 percent between fiscal years 2005 and 2007 (see table 4). SSA Used Various Strategies to Manage Staffing Declines

SSA is shifting work among field offices based on their workloads in an  effort to increase overall efficiency. SSA is encouraging customers to use automated services to help field  offices accomplish their work. When reviews of benefits are delayed, some beneficiaries may  continue to receive benefits when they no longer qualify. Staffing Reductions May Have Contributed to a Buildup of Certain Work, Longer Customer Waiting Times, More Unanswered Customer Calls, and Other Adverse Effects

According to SSA officials, staffing imbalances resulted in a buildup of  1,000 workyears, for work that SSA was not able to complete by the end  of fiscal year 2007. Growth in Work Demands and an Employee Retirement Wave May Pose Serious Challenges for Service Delivery in the Future without a Clear Plan

Retirement and disability filings by the nation’s approximately 80 million  baby boomers are projected to significantly increase SSA’s workload,  providing additional stress on the field office workforce. SSA’s ability to meet its growing workload challenges will be more  difficult with the anticipated retirements of many of the agency’s most  experienced field office workers. Based on the agency’s projections, 44 percent of today’s SSA  workforce will retire by 2016. Field office managers and staff at many of the locations we visited stated  that it typically takes 2 to 3 years for new employees to become fully  proficient. This will include 2,350 new hires for regional  and field office operations, almost all of whom will go to field offices. SSA currently lacks a plan to address the mounting service delivery  challenges that it faces, though officials told us that they are currently  working to finalize the agency’s Annual Strategic Plan, which is expected  to address these issues. Projected  increases in claims for benefits from the nation’s approximately 80 million  baby boomers and a large retirement wave among SSA’s most experienced  staff will place additional pressure on field offices, and SSA may find it  increasingly difficult to manage without a clear plan for addressing these  challenges. Contact  points for our Offices of Congressional Relations and Public Affairs may  be found on the last page of this statement. In their  response, SSA said that the testimony understated the connection between  the stress that field offices are under from increased work demands and  the agency’s funding shortfalls. Social Security Administration: Effective Leadership Needed to Meet  Daunting Challenges (GAO/HEHS-96-196, Sept. 12, 1996).
Why GAO Did This Study

Millions of people rely on the services of Social Security Administration (SSA) field offices. In fiscal year 2007, SSA's approximately 1,300 field offices provided service to about 42 million customers. People use these offices to apply for Social Security cards, apply for retirement and disability benefits, establish direct deposit, and a host of other services. While customers may conduct their business using SSA's online, telephone, or other service options, many prefer the personalized contact provided in field offices. Over the last several years, staffing reductions have challenged field offices' ability to manage work, while continuing to deliver quality customer service. To assess how field offices are managing these challenges, GAO was asked to determine (1) the effect that reduced staffing levels may be having on field office operations and (2) the challenges that SSA faces in meeting future service delivery needs. This statement is drawn from GAO's ongoing study on field offices for the committee, which is expected to be issued later this year. To conduct this work, GAO interviewed SSA officials in headquarters, and other components, and analyzed various data on SSA's workloads and other data. In commenting on a draft of this testimony, SSA said that GAO understated the connection between staffing stresses from increased work demands and the agency's funding shortfalls.

What GAO Found

SSA field offices largely met work demands between fiscal years 2005 and 2007 despite operating with fewer staff and an increased demand for services, but staffing reductions may have had some adverse effects. Field offices were able to minimize the impact of staffing reductions on work because staff productivity increased by 4.9 percent. SSA and its field offices used various strategies to manage its work with fewer staff. Field offices shared work among offices and redirected staff to meet critical needs. SSA also encouraged customers to make greater use of Internet and other electronic services. Additionally, SSA deferred work that it deemed a relatively low priority, such as conducting reviews of beneficiaries' continuing eligibility. Deferring these reviews, means that beneficiaries who no longer qualify for benefits may still receive payments--which may decrease SSA's chances of recovering the erroneous payments. Despite SSA efforts to manage the staffing reductions, customers experienced longer waiting times and more unanswered calls to field offices, according to SSA data. Also, staff reported experiencing high stress levels and insufficient time for training. Growth in claims from the nation's baby boomers and a retirement wave of its most experienced staff may pose serious challenges for SSA if the agency does not have a clear plan. The first wave of approximately 80 million baby boomers is reaching the age of retirement eligibility, and SSA estimates that retirement and disability filings will increase the agency's work by approximately 1 million annual claims by 2017. To further compound this challenge, SSA projects that 44 percent of its workforce will retire by 2016. Because retirements will occur among the agency's most experienced staff, this will have a serious impact on field offices' institutional knowledge. SSA is planning on hiring an additional 2,350 new employees this fiscal year for regional and field office operations, almost all of whom will go to the field offices. Agency officials stated, however, that it typically takes 2 to 3 years for staff to gain the experience they need to function independently. SSA is using various strategies to recruit new employees to fill knowledge gaps. SSA is finalizing its Annual Strategic Plan which will describe the agency's strategies for addressing these issues.