SSA Plans To Stop Mailing Out Annual Statement Due To Budget Cuts

According to Reuters, Social Security Administration has found a way to save a few millions. The program’s future and possible peril is debatable, but the agency itself is taking steps to save money in the long run. The agency had decided to stop sending out the annual benefit statement that all of us are used to getting in the mail.

Social Security’s statements are usually sent out about three months before your birthday. The statement provides important information about your benefits, such as disability and death benefits. It also includes an estimate of future benefits and a history of taxed social security earnings. In case you would become disabled, the statement provides a monthly payment estimate for disability benefits.

So what will you do without an annual statement from the agency? No worries, the agency will have a plan in place for anyone to obtain their own statement online. Additionally, the agency will continue sending statements to Americans over age 60. The agency’s spokesperson said due to the ongoing Washington budget debates, SSA needed to start making cuts. The agency plans to save $30 million by suspending mailings for the remainder of the current fiscal year, and an additional $60 million next year by only sending to Americans 60 or older.

An online version of your Social Security’s statement will have better information on what you can expect to receive and how benefits are calculated. An additional budget cut includes shelving eight new hearing offices to help handle the backlog of disability claims, which have increased during the bad economic times. Filings of disability claims have jumped from 2.6 million annual claims in fiscal 2005 year to 3.0 million in 2009 and 3.2 million in fiscal 2010 year.


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