The Social Security Administration (SSA) has introduced a significant update to its benefits application process, which is likely to affect a large number of people. In an announcement made last week, the SSA revealed that physical signatures will no longer be required on over 30 of its forms. Digital signatures will now be accepted in their place, and 13 of these forms will not require a signature at all.
Kevin Thompson, a financial expert and the CEO of 9i Capital Group, explained “The SSA is trying to feel its way into this digital world without compromising security. The need for digital signatures should speed up the processing times and automate processes that should have been automated years ago.”
The overarching goal of this change is to streamline the application process and address common issues that have previously resulted in claims being delayed or denied. Martin O’Malley, the Commissioner of Social Security, elaborated on the significance of the change, stating that the agency is committed to removing as many hurdles as possible from the application process. “Across forms that Americans use most often, we’re eliminating as many pain points as possible, from helping people sign at the click of a button to reducing the need to drive or mail something in whenever possible This means faster and more error-free processing and better service for our customers, who deserve a government that meets their needs efficiently and effectively.”
Previously, around 90 percent of the forms most commonly used in SSA field offices required a physical signature. These forms, approximately 14 million of which are submitted each year, have historically contributed to delays in processing due to signature-related issues. With the introduction of digital signatures, the process is expected to become more efficient for both the SSA and its applicants.
The benefits of these changes for Social Security beneficiaries
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, also weighed in on the SSA’s new policy, describing it as a positive step forward. “There are many other industries that deal with sensitive personal information that have made the leap to being mostly or all digital in signature attainment, and it’s worked very well. Having more forms available for digital signature fulfillment makes the process easier on the part of the customer and the administration, especially considering how SSA has had to deal with significant cuts to their workforce over the last decade.”
The 13 forms that no longer require a signature at all account for about one million submissions annually. These include important documents like the Medical Source Opinion of Patient’s Capability to Manage Benefits, the Letter to Employer Requesting Wage Information, and the Request for Reconsideration/Disability Cessation Right to Appear. By removing the signature requirement for these forms, the SSA aims to further streamline the submission process and reduce delays.
Looking ahead, there is potential for additional forms to also lose their signature requirements. The SSA has already expanded its paperless communications for users of its “my Social Security” platform. This includes features such as access to online statements, the ability to track claims, and tools for calculating retirement benefits. These digital services are part of the agency’s broader effort to modernize and make its operations more efficient.
However, not everyone is without concern. Drew Powers, the founder of Powers Financial Group in Illinois, raised a potential drawback of this shift towards digital and signature-free forms. “Seniors will have to be even more vigilant to protect their online identities to avoid fraudulent activity by scammers and hackers,”
Another key reason for the SSA’s modernization efforts is the agency’s ongoing struggles with underfunding and outdated technology, as noted by Thompson. These issues have contributed to delays in processing times in the past. Thompson believes that the move to digital signatures and paperless forms should have a positive impact on processing times and the overall efficiency of the benefits system. He also pointed out that many of the new beneficiaries are more familiar with digital platforms than previous generations, which may ease the transition.
He also emphasized the importance of streamlining and automating the SSA’s operations to create a more efficient and accessible program. “The bottom line, the SSA has to become more streamlined and automated to allow for a more effective program.”
