Social Security brings retirees back

WASHINGTON -- The Social Security Administration, which helps millions plan their retirements, underestimated the number of its own retiring workers and rehired 308 of them with both a salary and a pension.

The Bush administration approved and encouraged rehirings across the government to give agencies more flexibility, drawing criticism from Democratic Sens. Byron Dorgan of North Dakota and Ron Wyden of Oregon.

Based on a breakdown of salaries, the senators estimated that Social Security's actions cost more than $37 million in combined pay and pensions going back to Nov. 1, 2000. They asked Congress' General Accounting Office to investigate the program.

Administration officials said they promoted the program after the Sept. 11, 2001, attacks, in part to help with possible personnel shortages due to military activation of National Guard and reserve units.

The U.S. Marshals Service said it could only find two rehired workers, but the Department of Homeland Security brought back about 400 federal employees since since its March 2003 creation by consolidating agencies.

Homeland Security spokeswoman Valerie Smith said most of the retirees were rehired to train law enforcement officers, although some are air marshals assigned to commercial flights.

In a response to the senators, a Social Security document obtained by The Associated Press did not cite a military call up or Sept. 11 in explaining the rehirings. The document acknowledged the agency "did not factor in such variables as early out retirements, changes in employees' benefits or financial situations which affect retirement decisions."

The agency said the most critical needs were claims representatives who serve the public and administrative law judges.

"Why are agencies unable to properly predict retirements, and finding themselves short-handed?" the lawmakers wrote the head of the GAO, Comptroller General David Walker.

Mike Orenstein, a spokesman for the government's Office of Personnel Management, said federal agencies receive permission to pay dual compensation when they need the workers for critical positions. He said no agency-by-agency records were immediately available.

Dr. Reginald Wells, Social Security's deputy commissioner for human resources, defended the retirement agency's projections.

"Even though you may have data showing the number of employees eligible (for retirement), it doesn't mean they'll retire," he said. "You can't always predict when people will walk out the door."

Wells said 22 judges were rehired to help reduce a backlog of 600,000 disability appeals. An additional 146 retired employees were called back to handle benefit claims, the majority of them working directly with the public.

Employees rehired for full-time work are limited to two years, and those called back intermittently can't exceed 1,040 hours annually, Wells said.

The Social Security Administration has 65,000 employees and hires about 4,500 workers a year, although the number exceeded 4,900 in 2003.

"We hire new employees whenever possible," Social Security said in its response to the senators. "However, in some instances, we believe it is more efficient and practical to retain a specially or uniquely qualified individual for a short period to complete a special project, reduce work backlogs or mentor a new employee."

Of the 173 retirees re-employed in 2003:

--105 worked in field offices providing direct service to the public and to train replacement workers.

--39 helped prepare cases for hearings and in writing decisions on benefits.

--15 worked on projects where they had special expertise.