The  statement is a key tool for communicating with the public about these  benefits and the long-term financial challenges the system faces. In our 2005 review of the statement’s understandability, we  again found weaknesses in the statement’s design and recommended  that SSA develop a plan for regularly evaluating and revising the  statement. SSA is Preparing to Make the Statement Available Online

Since SSA suspended mailings of the statement in March 2011, the  agency has been assessing the feasibility of making the statement  available online. SSA is developing a new electronic  authentication system and a “MySocialSecurity” Web page to allow  individuals to access personalized SSA information online. Because officials do not know how long the  testing phase will last, they could not provide a date for when the  statement will be available to the public online. While SSA officials reported that upcoming tests of the portal will focus on  its user-friendliness, they do not have plans in place for publicizing the  online statement. In addition, key officials  involved in the online statement project could not provide information on  any other plans SSA is developing to address Internet access issues. Further, SSA officials in charge of  drafting the new contract for mailing statements acknowledged that it is  unknown how many workers will request mailed statements once the  online statement is available, as that number will depend on factors such  as individuals’ willingness and capability to access the statement online. Beyond Format Enhancements, SSA is Taking Only Limited Steps to Improve the Statement’s Usefulness

SSA officials said they expect to improve the usefulness of the statement  for some by moving it to an online format. While SSA is making these limited changes, the project lead said the first  publicly released version of the online statement will be as similar to the  current mailed statement as possible. However, in our prior work, using graphics to replace text and make  information more quickly and easily understandable was a common  theme that emerged in the suggestions made by focus groups and a  benefits consulting firm. However, we and others have previously identified ways in  which SSA could modify the design of the paper statement to improve its  usefulness for recipients. According to a 2009 report from the Social Security Advisory  Board, “information is presented as a laundry list of facts and data, rather  than cogent summaries of things that people need to know to make  informed decisions.”
Furthermore, even though we and others have previously reported that  certain information contained in the statement is confusing, SSA has no  plans at this time to change its content in either the paper or online  version. SSA’s own financial literacy initiative also provides detailed information on  opportunities for improving the statement’s usefulness, particularly to help  people plan for retirement, and SSA considers the statement to be a key  component of this initiative. However, the extent to which staff from the  office in charge of the initiative have been consulted on the design or  content of the online statement, or on decisions about which groups  should continue to receive a print statement, is unclear. Therefore, as SSA considers moving forward with an online statement,  we recommend the following:  the Commissioner of SSA should take steps to ensure access to the  statement for all eligible workers, including those without Internet  access or English proficiency. Doing so will assure that the statement  remains an important tool for communicating with all workers about  the Social Security program. We provided a draft of this testimony to SSA for review and comment.
Why GAO Did This Study

The Social Security Statement (the statement) is the federal government's main document for communicating with more than 150 million workers about their Social Security benefits. Provided annually, it serves as a key financial literacy tool that can educate the public about Social Security Administration (SSA) program benefits, aid in financial planning, and ensure that workers' earnings records are complete and accurate. The statement is also a key tool for communicating with the public about the long-term financial challenges the Social Security system faces. However, due to budget constraints, SSA chose to suspend mailings of the statement in March 2011. GAO examined (1) the current status of the statement and (2) ways SSA plans to improve the usefulness of the statement. To address these issues, GAO interviewed SSA officials and reviewed agency documents and our prior work on the statement's understandability. GAO also provided a draft of this testimony to SSA for review and comment.

What GAO Found

SSA is currently preparing to make the statement available online; however, the agency does not yet know the timeline for implementation and has not finalized its plans for publicizing its availability or addressing access issues. SSA is developing a new Web portal to allow individuals to access personalized SSA information online. However, because the portal and online statement are currently in the initial development phases and thus have not yet been fully tested, agency officials do not know when the online statement will be available to the public. In addition, SSA does not yet have plans in place for publicizing the online statement or ensuring access for individuals without Internet access or English proficiency. Finally, because the agency does not have a total cost estimate for the online statement project, and it is unclear how many workers will request mailed statements after this information is made available online, it is unknown if SSA will realize the budget savings it expects from suspending statement mailings, at least in the short-term. Although SSA expects to improve the usefulness of the statement for some by moving it to an online format, the agency is taking only limited steps to improve the statement's overall content and design. A key agency official said that the first publicly released version of the online statement will be as similar to the mailed paper statement as possible, and SSA has no plans to update the paper statement's content or design at this time. However, over the years, GAO and others have reported that the design of the statement could be modified and certain information contained in the statement could be clarified to improve the statement's usefulness for recipients. For example, focus group participants in our prior study suggested that using graphics to replace text would make information more easily understandable. Furthermore, while SSA's own financial literacy initiative also provides detailed information on ways to improve the statement's usefulness in helping people plan for retirement, the extent to which staff from SSA's office responsible for this initiative have been consulted on the design or content of the online statement is unclear. As SSA considers moving forward with an online statement, we recommend that the Commissioner of SSA ensure access to the statement for all workers, including those without Internet access or English proficiency. In comments, SSA noted that paper statements will continue to be available, on request, in English and Spanish.