US Social Security agency delays, rolls back some service cuts after complaints

By Nathan Layne and Tim Reid

(Reuters) -The U.S. Social Security Administration said on Wednesday it would delay planned phone service cuts to retirees by two weeks and abandon a rule that would have required some disabled and elderly people to travel to an office to claim their benefits.

The abrupt policy shift comes after advocate groups representing retirees and disabled Americans loudly voiced their opposition to the changes, warning of confusion and disruptions to service if they went ahead as planned on Monday.

Democratic lawmakers also grilled President Donald Trump's nominee to oversee the agency, Frank Bisignano, over the plans during a Senate confirmation hearing on Tuesday. Bisignano told the lawmakers that he would review changes enacted by Elon Musk's Department of Government Efficiency, which has targeted the agency for significant staff and service cuts.

"We have listened to our customers, Congress, advocates, and others, and we are updating our policy to provide better customer service to the country's most vulnerable populations,” Lee Dudek, the agency's acting commissioner, said in a release.

Dudek said last week that starting on March 31, anyone applying for benefits or changing bank deposit information would no longer be able to do that over the phone, and would instead need to confirm their identity online or by visiting a field office.

The policy shift sparked anger among advocacy groups, which warned that it would prevent many disabled and elderly people from receiving their benefits, especially with the agency cutting staff and reducing the number of field offices.

The SSA, which pays out $1.4 trillion in benefits to 73 million Americans annually, still plans to mandate an in-person visit to a field office for retirees, widows and children if they are unable to make their application online, starting on April 14, Dudek said in the statement.

But individuals applying for Social Security Disability Insurance, Medicare or Supplemental Security Income, which includes payments to older adults with little or no income, can continue verifying their identity over the phone, Dudek said.

Nancy LeaMond, chief advocacy and engagement officer at AARP, a nonprofit organization that advocates for older Americans, called the announcement a "good first step” by SSA, but added "merely delaying the implementation of this change is not enough."

(Reporting by Nathan Layne in New York and Tim Reid in Washington; Editing by Jamie Freed)