What Will Happen to my Social Security Disability if the Government Shuts Down?

With the government shutting down twice in under a month in early 2018, many New Orleans-area Social Security Disability claimants and recipients are wondering how a government shutdown affects them and their benefits, application, and/or hearing.

WILL I STILL RECEIVE MY SOCIAL SECURITY DISABILITY BENEFITS IN A GOVERNMENT SHUTDOWN?

Social Security and Government ShutdownWhat happens to Social Security Disability during a government shutdown?

When the government shut down in 1995 and again in 2013, all Social Security payments continued to be sent out on time. This included Social Security Disability.

During the 1995 shutdown, which lasted about a month, the Social Security Administration mailed checks throughout the shutdown. Social Security was able to continue mailing benefits due to the fact that doesn’t need Congress to authorize funds for it each year. Instead, Social Security benefits are considered mandatory spending and are paid from the program’s trust fund, and therefore, the agency has the funds to continue paying benefits. In 1995, Social Security maintained enough employees to continue mailing checks without delay.

Since payments are now direct deposited and/or loaded onto debit cards, Social Security continued processing payments during the 2013 shut down with fewer employees than were needed to mail benefit checks during the 1995 shutdowns.

WHAT HAPPENS TO MY SCHEDULED SOCIAL SECURITY DISABILITY HEARING IN A GOVERNMENT SHUTDOWN?

Most likely, hearing offices will continue to hold Social Security Disability and SSI hearings if a shutdown occurs. During the 2013 government shutdown, the Office of Disability Adjudication and Review (ODAR) still held previously scheduled hearings, but staffing was limited to Administrative Law Judges (ALJs), medical experts, vocational experts, and security personnel. New hearings were not scheduled.  Lack of support personnel caused delays in exhibiting files and decisions were not written during the shutdown.  So, if a claimant was waiting for an already scheduled hearing, it in most cases proceeded and was decided.  But, the writing of the decision did not take place, so if benefits were granted, there was a further delay before benefits were paid since the decision was not actually formally written until the shutdown ended.

WHAT HAPPENS TO MY SOCIAL SECURITY DISABILITY APPLICATION IN A GOVERNMENT SHUTDOWN?

During the Clinton-era shutdown, new Social Security claims were not being processed because the agency furloughed 61,415 employees. As the shutdown wore on, the agency adjusted its plan and recalled workers to start processing new claims. Whether new claims are processed at all or with a delay due to fewer workers will depend on how many employees the SSA decides to maintain and how many they decide to furlough.

The SSA’s 2013 government shutdown contingency plan stated that new and pending Social Security applications would continue to be processed as well as requests for appeals. However, because these functions are carried out by the state Disability Determination Offices, each state will decide whether to continue these operations or stop them.  The most likely scenario is that applications will be processed but with some delay. The delay will be dependent on how many employees are retained and how long the shutdown lasts.

The Takeaway

Whenever a threat of a shutdown looms, I monitor the situation checking Social Security's contingency plan often.  If the government shuts down again, I will be in touch with all of my current clients to advise them on how this situation will affect them depending upon the current status of their claim.  

Loyd J. Bourgeois
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Disability and Personal Injury Attorney