Just a couple of weeks before Christmas, the Biden administration announced a new initiative that could vastly improve the process of receiving Social Security benefits.
President Joe Biden signed an executive order on Dec. 13 on "transforming federal customer experience and service delivery," an initiative designed to reduce paperwork, alleviate administrative burden, improve efficiency, and streamline and simplify the experience for Americans when interacting with the federal government. The administration called it an effort to eliminate the "time tax" on people, referring to the time wasted navigating government red tape to obtain government services.
The order cuts across 17 agencies within the federal government, including the Social Security Administration (SSA). Here is how it will impact Social Security.
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Going mobile
The order calls for the development of digital and mobile processes that allow people to apply for and receive their Social Security benefits, upload forms, obtain documents, and make inquiries, among other services, online, so they don't have to travel to a field office or conduct their business by mail.
In addition, it removes the requirement to provide physical signatures, in most cases, in favor of electronic signatures. Furthermore, it allows the SSA to share information with other government agencies and help people find other benefits that they are eligible to receive.
Overall, the order calls for a review of all services within the SSA that "require original or physical documentation or in-person appearance as an element of identity or evidence authentication." The goal is to look for policy reforms that modernize customer experiences and reduce some of the backlog that currently exists.
"For millions of people who retire each year, you should be able to apply for Social Security benefits without needing to go to a Social Security office and have Medicare proactively reach out to you with the tools you need to manage your health and save money," Biden said at the Dec. 13 signing ceremony.
Get your money faster
Social Security started moving some of its services online during the pandemic, with field offices only open by appointment. This executive order expands and accelerates that effort, although field offices will remain open for people who don't have online or mobile access.
For beneficiaries, it means that they will get their money faster and with less hassle.
"The bottom line is we're going to make the government work more effectively for the American citizens, so it's not as confusing and it's straightforward. And we're going to -- because I believe this will go a long way to restoring faith in government," Biden added.
The order requires a progress report by the SSA to the Office of Management and Budget within 120 days, which would be right around tax filing time, on the implementation of these mandates.
Another important change for 2022 is a 5.9% increase in Social Security benefits starting this month. It is the largest cost-of-living adjustment (COLA) since 1982. The increase is tied to the jump in the Consumer Price index, which is a gauge used to determine the rate of inflation.
As a result, the average retiree will receive $1,657 per month in Social Security benefits, up $92 per month from 2021.
While many retirees are struggling with higher costs , these measures should help alleviate some of the pain.
