A productivity increase of 3.7 percent in 1971 over 1970 is budgeted and reflects savings of 2,030 man-years and $19.5 million. These savings will be achieved through continued efforts to automate the claims and benefit payment processes, other extensions of the use of computers and other machinery and completion of the changes initiated in the preceding year. The following chart shows the trend in productivity in the Administration since fiscal year 1960. The work output index used in computing the productivity index is composed of units of program workloads processed, adjusted for changes in workload mix and substance, and non-recurring work involving the use of SSA manpower. The manpower index covers total manpower paid directly from the Salaries and Expenses appropriation, including overtime. Work performed by State agencies and intermediaries and the manpower for them are excluded. Work performed by State agencies and intermediaries and the manpower for them are excluded. and benefits 1/.....32,009 $321,357,195 33,034 $323,570,404 Payments to States.... - Other expenses.. +1,025 +$2,213,209 Funds requested for the conduct of the old-age and survivors insurance program provide for: (1) Making the initial determination of eligibility of workers, wives, widows, children and dependent parents for old-age and survivors benefits; (2) reevaluating the initial determination when requested by the claimant; (3) making changes in the beneficiary rolls to assure proper and correct payment of benefits; and (4) investigating the beneficiary's continuing entitlement to benefits, including the evaluation of performance of representative payees. This activity, along with the disability and health insurance activities, includes a distributive share of functions which support all social security porgrams: The maintenance of records of earnings of workers covered by the social security program, the overall direction of the program, and administrative services. Workloads A. Workload Trends The number of persons on the beneficiary roll is expected to continue to increase each year for many years into the future. The size of the roll and the volume of work required to maintain it accurately and timely are to a large extent dependent on the growth of the population, the economy and demographic changes. For instance, work received which results in changes to the beneficiary rolls in 1971 increases 3.9 percent. Also, the number of claims applications to be received is expected to increase at a rate of nearly two percent, reflecting a normal growth in this program. The number of OASI beneficiaries and the amounts of OASI benefits paid for representative past years and estimates for 1970-1971 are shown below. The higher benefit rate which became effective January 1, 1970 is reflected in the amounts shown for fiscal year 1970 and 1971. Work units in this activity are expected to increase by 3.5 percent in 1971. This reflects an estimate of growth in the number of aged persons in the population, and in the proportion of those who are insured for retirement benefits, as well as the growth in the population insured for survivors benefits. Some of the major workloads of this program are listed below: In addition to the work units scheduled for processing, the Social Security Administration plans to continue to make improvements in its systems and operations designed to improve service to the public. They include the expansion of the case control system which provides electronic control of folder movement through the various work stations of the payment centers. This system was installed in 1968 and became fully operative during 1969. During 1971 the Social Security Administration plans to continue to improve the system by linking it to other computer operations in order to provide better control of work in process. These system improvements along with an increase in the quality controls used in our post-entitlement functions will require 78 manyears in 1971. During 1970 the Social Security Administration expects to use 341 manyears in this activity in order to implement the 15 percent benefit increase authorized by the Tax Reform Act of 1969. This is a non-recurring cost in 1970. Budget Estimate Of the total $14,428,536 increase budgeted for 1971 in the costs of administering the OASI program, $287,000 is in the costs of State agencies under contract to make determinations of disability; and $14,141,536 is in the costs of the components of the Social Security Administration. A. State Agencies B. State agencies make disability determinations on claims of disabled widows and widowers and disabled children of retired or deceased workers. The cost for this service increases by $287,000 in 1971. This increase is principally for: (1) A 3.0 percent increase in work output. $132,000; (2) increases in average salary costs of $96,000, primarily due to statutory salary increases for State employees; and (3) increases in the unit cost for purchasing consultative medical examinations for disabled widows and children of $63,000. Other changes result in a decrease of $4,000. Social Security Administration The Social Security Administration's share of the total increase is $14,141,536. The major increases are: (1) A 2.6 percent increase in the work output, $12,997,077; (2) built-in salary changes, such as within-grade promotions, promotions to journeyman levels, reclassifications, and the fullyear effect of the 1969 pay raise, $6,289,779; (3) this activity's share of the purchase of computer systems to handle increased workloads, $7,068,323; (4) annualization of space and communications changes in 1970 and additional changes expected in 1971, $1,330,697; (5) annualization of increase in per diem rates, $428,001; and (6) added rental costs for computer equipment which will be utilized to establish a six-day work week in computer operations rather than a seven-day work week, $1,418,200. Budgeted decreases are: (1) Projected increase in productivity which reduces costs, $10,108,154; (2) rental savings resulting from the purchase of computer equipment, $1,688,156; (3) the lower cost resulting from a decrease in use of overtime in 1971, $3,125,234; and (4) other changes in cost including replacement of equipment, price changes and intermittent costs, $468,997. 45-140 O 70 pt. IV 44 |