The Social Security Administration (SSA) is undergoing significant changes under the new leadership of Commissioner Frank Bisignano and the influence of the Department of Government Efficiency (DOGE), formerly led by Elon Musk. These changes include office closures, staff reductions, and the introduction of new anti-fraud measures. Bisignano, who was sworn in last month, has focused on making the SSA more digitally based, allowing beneficiaries to complete tasks online without requiring office visits.
He plans to update the agency’s customer service by employing more technology and artificial intelligence. However, these changes have raised concerns among SSA employees and the public. Earlier this year, tension arose between SSA employees and DOGE due to its access to personal data about beneficiaries.
A Supreme Court ruling allowed access to non-anonymized Social Security records to support the initiative to improve government efficiency, sparking concerns about privacy.
Social Security amid leadership shift
Legal and privacy experts have expressed concern about the increased access to personal data.
The SSA has reduced its staffing numbers from roughly 57,000 at the start of the year to just 52,000. Despite assurances from President Trump and Bisignano that there are no plans to cut Social Security benefits, analysts estimate that the SSA might not have sufficient funds for full payments by 2035 if no changes are made. Alex Beene, a financial literacy instructor, commented on the skepticism surrounding these technological advancements, stating, “For older Americans who have paid into the system for years, they don’t want to see access to in-person and over-the-phone assistance drift away from what is such a pivotal source of income.”
The new team has also targeted overpayments at the SSA, which resulted in $8.9 billion being mistakenly paid out in 2023, including $97 million in fraudulent claims for retirement benefits.
As the administration implemented staffing and service cuts, nearly 2 million additional annual trips to field offices are now expected for seniors and beneficiaries seeking in-person support. Kevin Thompson, the CEO of 9i Capital Group, noted that while the new department will play an instrumental role in moving the SSA forward in terms of technology and innovation, the technological shifts may not be immediately felt by Social Security recipients. He highlighted the challenge of modernizing a legacy system, as the technology might already be outdated by the time new systems are fully implemented.
As the trajectory of reforms remains open-ended following Musk’s exit, Bisignano has committed to the new principles and aims to continue modernizing the SSA, despite the challenges faced by the agency and its beneficiaries.
