Social Security card and money
The Social Security Administration plans to reduce its staffing to 50,000 from its current level of 57,000 employees and reduce its 10 regional offices to four.
"Rumor of a 50% reduction is false," SSA said Friday.
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Former SSA Commissioner Martin O'Malley told CNBC that recent actions at SSA by Elon Musk’s so-called Department of Government Efficiency are putting monthly benefit checks for more than 72.5 million Americans at risk.
“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said in an article published Saturday. “I believe you will see that within the next 30 to 90 days.”
Job Cuts and Reorganization
Consistent with recent executive orders issued by the White House, the agency "plans to reduce the size of its bloated workforce and organizational structure, with a significant focus on functions and employees who do not directly provide mission critical services," SSA said.
"Social Security anticipates that much of the staff reductions needed to reach the target of 50,000 will come from retirement, [voluntary separation incentive payments], and resignation," the agency said.
The agency sent a letter to employees Thursday detailing their employment options and warned that it would soon implement "massive reorganizations" that will include "significant" workforce reductions. Acting SSA Commissioner Leland Dudek instructed employees interested in being voluntarily reassigned to fill out a questionnaire by March 14.
"Offices that perform functions not mandated by statute may be prioritized for reduction-in-force actions that could include abolishment of organizations and positions, directed reassignments, and reductions in staffing," Dudek said in the announcement sent to SSA employees.
Initial steps to reduce the workforce included offering a limited number of employees the opportunity to leave the agency under the Deferred Resignation Program and Voluntary Early Retirement, or VERA.
Agencies are required to submit their RIF plans to the Office of Personnel Management by March 13. No date has been set when a layoff might begin after OPM approves the plan, according to SSA.
SSA states that it "has operated with a regional structure consisting of 10 offices, which is no longer sustainable. The agency will reduce the regional structure in all agency components down to four regions."
The "organizational structure at Headquarters also is outdated and inefficient," the agency said. "SSA will now have seven Deputy Commissioner level organizations."
Service Delays
Social Security beneficiaries "already have had to contend with delays accessing service, both on the agency's 1-800 line and in person at SSA field offices, thanks to chronic underfunding from the U.S. Congress," Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, told ThinkAdvisor Monday.
"Former Commissioner Martin O'Malley led a concerted effort to improve customer service and made admirable strides in this direction," Richtman continued. "But Congress' refusal to properly fund the agency, along with needless interference by Donald Trump, Elon Musk, and DOGE, have resulted in the closure of field offices that service the public. Many seniors and people with disabilities need access to in-person help at these field offices; closing them only causes additional delays, inconvenience, and financial stress for claimants and beneficiaries."
Added Richtman: "We agree with former Commissioner O'Malley that the radical interference of Trump, Musk, and DOGE in the workings of SSA could break the system, putting the delivery of benefits to 70 million Americans in jeopardy."
Democrats Respond
Top Democratic senators plan to hold a briefing Monday afternoon responding to the Trump administration’s efforts "to destroy the Social Security Administration."
"The Trump administration’s plans to gut the Social Security Administration come just as Elon Musk calls Social Security 'the biggest Ponzi scheme of all time,'" said Sens. Patty Murray, D-Wash.; Chuck Schumer, D-N.Y.; and Ron Wyden, D-Ore.
In 2023, SSA field offices had nearly 120,000 Americans visit per day, the senators said. "Elon Musk and DOGE are eager to close SSA field offices across the country that Americans count on."
The lawmakers point out that "DOGE’s 'Wall of Receipts' lists dozens of SSA field offices they have or will terminate leases for."
Murray said during the briefing that SSA's 57,000 workforce “is already at its lowest level of staffing in fifty years! That’s why fewer than 40% of people who call to talk to a Social Security agent can get through to talk to someone. That’s why it takes on average 240 days to process a disability claim. That’s why, last year, an estimated thirty thousand Americans died while waiting on a decision for their disability benefits."
Trump and Musk "are loudly declaring they want to significantly reduce staff further," Murray continued. "They told SSA to draw up plans to cut staff by 50% and their hand-picked Acting Commissioner is proudly declaring he wants to cut at least 7,000 Social Security Administration workers."
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