SSA Steps Ahead With Customer Service Focus and Results-Oriented Management

At this time of heightened attention to the costs and effectiveness of all federal programs, the Congress and the administration have supported efforts to promote a more efficient federal government that is responsive and accountable to the public. In addition, SSA is a leader among federal agencies in producing complete, accurate, and timely financial statements that promote accountability to taxpayers. Meanwhile, the ratio of contributing workers to beneficiaries will decline. Given the magnitude of the financial problems facing the Social Security system and the nature of the proposals for changing the system, we can expect the debate over the financing and structure of the Social Security system to continue and intensify in the coming years. Disability Caseloads Continue to Grow

During the past decade, SSA has faced significant increases in caseloads and expenditures for its two disability programs—DI and SSI. In a recent report on the implementation challenges SSA faces as it redesigns its disability claims process, we concluded that SSA’s disability redesign is proving to be overly ambitious. Although SSA has begun many of its planned initiatives, none are complete and many are behind schedule. Consequently, SSA has not progressed as intended in determining whether specific initiatives will achieve their desired results. Although the main reason for emphasizing returning to work is so that people maximize their productive potential, it is also true that an estimated $3 billion could be saved in subsequent years if only an additional 1 percent of the 6.6 million working-age people receiving disability benefits in 1995 were to leave the rolls by returning to work. SSA Faces Difficult Challenges in Preparing for Future Workloads

While SSA is grappling with policy and program challenges, it will also need to meet customer expectations in the face of growing workloads and reduced resources. As the baby boom generation ages, more and more people will be applying for and receiving SSA program benefits. SSA now has plans to review the status of more than 8 million beneficiaries in the next 7 years. Although SSA has begun to take steps to better position itself to successfully develop and maintain its software, it faces many challenges as it works to develop software in its new computer network environment. However, it has been nearly 5 years since SSA has conducted an executive-level management development program. Observations on Leadership Needed to Manage Challenges

As the 21st century approaches, SSA faces dramatic challenges: funding future retirement benefits, rethinking disability processes and programs, combating fraud and abuse, and restructuring how work is performed and services are delivered. First, SSA must step up to its role as the nation’s expert on Social Security issues; it is uniquely positioned to inform the public policy debate on the future financing and structure of Social Security. Finally, SSA must manage technology investments and its workforce and make difficult decisions about handling increasing workloads with reduced resources. SSA’s success in meeting these challenges is critical. Supplemental Security Income: Administrative and Program Savings Possible by Directly Accessing State Data (GAO/HEHS-96-163, Aug. 29, 1996). 14, 1994).
Why GAO Did This Study

GAO reviewed the challenges facing the new Commissioner of the Social Security Administration (SSA).

What GAO Found

GAO found that: (1) SSA is ahead of many federal agencies in developing strategic plans, measuring its service to the public, and producing complete, accurate, and timely financial statements; (2) this gives SSA a sound base from which to manage significant current and future challenges; (3) these challenges include the aging of the baby boom generation, coupled with increasing life expectancy and the declining ratio of contributing workers to beneficiaries, which will place unprecedented strains on the Social Security program in the next century; (4) unless Congress acts, Social Security funds will be inadequate to pay all benefits by 2029; (5) SSA, however, has not preformed the research, analysis, and evaluation needed to inform the public debate on the future financing of Social Security, the most critical long-term issue facing SSA; (6) SSA has recently taken initial steps to more actively participate in the financing debate by reorganizing and strengthening its research, policy analysis, and evaluation activities; (7) also challenging SSA have been disability caseloads that have grown by nearly 70 percent in the past decade; (8) to its credit, SSA has undertaken an important effort to fundamentally redesign its inefficient disability claims process, however, while SSA has begun many of its planned initiatives, none is far enough along for SSA to know whether specific proposed process changes will achieve the desired results; (9) SSA has not sufficiently promoted return-to-work efforts in the administration and design of its disability programs; (10) if even an additional 1 percent of the 6.6 million working-age people receiving disability benefits were to leave SSA's disability rolls by returning to work, lifetime cash benefits would be reduced by an estimated $3 billion; (11) in its Supplemental Security Income program, SSA has not done enough to combat fraud and abuse and address program weaknesses; (12) SSA faces increasing responsibilities in the future and must manage its growing workloads with reduced resources; (13) to successfully meet its workload challenges, SSA knows that it must increasingly rely on technology and build a workforce with the flexibility and skills to operate in a changing environment; (14) SSA faces significant challenges, however, in modernizing its information systems, a complex, multiyear effort that could easily cost billions of dollars; (15) compounding this challenge will be the possible loss of many senior managers and executives; and (16) at this critical juncture, effective leadership is needed so SSA can take actions to better ensure its success in the 21st century.