It’s hard to escape hearing about the Social Security Administration nowadays. From concerns about Department of Government Efficiency staffers accessing administration files to plans for the closure of offices around the country, the SSA has been a topic of intense discussion in recent months.
Some remain optimistic that changes to the SSA will be positive. That’s the hope of Chris Kampitsis, a certified financial planner and partner with the SKG Team at Barnum Financial Group in Elmsford, New York. It’s his belief that government leaders will strive to make decisions intended to help beneficiaries.
Not everyone is convinced, though.
“There’s been an idea of the privatization of Social Security going back to the Reagan Administration,” says Chris Orestis, president of Retirement Genius, an online resource for seniors and their families. He worries that proposed changes to the Social Security Administration are intended to create enough disruption to make privatization more palatable.
While time will tell which view is correct, here’s what you should know about the Social Security Administration to contextualize current events.
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What Does the Social Security Administration Do?
The SSA was created when the Social Security Act was enacted in 1935. It was originally known as the Social Security Board, and its initial function was to oversee the country’s Social Security benefit program for retirees.
“This is equivalent to a retirement insurance plan,” says Martha Shedden, co-founder and president of the National Association of Registered Social Security Analysts. “It’s one leg of that three-legged stool that was available to retirees.”
The other two legs were pensions and retirement savings. Pensions have largely disappeared in the private sector, and some worry Social Security may be in danger, too. The Social Security retirement trust fund is expected to run dry in 2033, according to the program’s 2024 Trustees Report.
Over the years, the Social Security program evolved to add new components and beneficiaries. Today, the Social Security Administration manages the following benefit programs, which rely on the program’s trust funds.
— Retirement benefits for eligible workers
— Spousal benefits for current and divorced spouses of retired workers
— Survivor benefits for current and divorced spouses, minor children and some parents of deceased workers
— Children’s benefits for minor children of retired workers
— Disability benefits for workers with a qualifying employment history
The Social Security Administration has also been entrusted with the following tasks:
— Issuing Social Security numbers and cards
— Enrolling people in Medicare
— Administering the SSI program, which uses general fund dollars from the U.S. Treasury to provide benefits to certain low-income individuals
Who Runs the Social Security Administration?
At various times, the Social Security Administration fell under the jurisdiction of different government departments. However, Congress passed legislation that made it an independent agency in 1995.
President Donald Trump has nominated businessman Frank Bisignano to lead the Social Security Administration. He’ll need to be approved by the Senate, and in the meantime, Leland Dudek is serving as the acting commissioner. Described as a seasoned information technology and security leader in his online biography, Dudek leads a workforce of approximately 57,000 employees.
“The staff is relatively small in relationship to what they are doing,” according to Shedden.
Social Security Administration employees staff offices, answer phones and maintain the internal systems of programs that served 73.2 million people in February 2025.
Their numbers are set to shrink, however. The SSA said in an online statement that it has a “bloated workforce” and plans to reduce its number to 50,000 employees.
Reducing its workforce is one of only several changes proposed or in progress for the Social Security Administration. While some are championing these as needed reforms, Orestis believes, “We have a definite state of disruption, chaos and uncertainty.”
[Read: This Is How Trump’s Social Security Layoffs Could Affect Your Benefits]
How the Social Security Administration May Be Changing
Along with a smaller workforce, the SSA has announced that it is consolidating its regional structure of 10 offices down to four. Individual offices are also slated for closure.
The Department of Government Efficiency, known as DOGE, has posted a list of real estate lease terminations on its website, including more than two dozen Social Security offices. Some see these closures as antithetical to the department’s stated purpose.
“If your quest is to create efficiencies, you are doing the opposite of that,” Orestis says. “If you’re closing offices and eliminating staff, you’re putting up barriers to get answers.”
So far this fiscal year, the Social Security Administration has an answer rate of only 47% for its 800 number, and only 44% of those making an appointment receive one within 28 days. That’s according to SSA performance data.
Republican Rep. Mike Lawler of New York is among those who are unhappy with the plan to reduce the number of SSA service locations. The Social Security office in White Plains, New York, is scheduled for closure, with Dudek saying that mold in the building is to blame. Lawler, who represents White Plains, says the administration turned down an offer from Westchester County for an alternate space.
“The decision to close the only Social Security Hearing Office in the Hudson Valley is a slap in the face to thousands of my constituents who rely on these services,” Lawler said in a press release. “This office handles over 2,000 backlogged cases and conducts hundreds of in-person hearings every year.”
Closing offices and reducing staff isn’t likely to solve the bigger problem with Social Security, which is its rapidly depleting trust funds.
“Figuring out how to fund Social Security is going to be a challenge in the future,” Kampitsis says.
Options include pushing back the retirement age for younger workers, increasing Social Security taxes or reducing benefit amounts, but all those changes would need to be approved by Congress.
[Read: Trump Proposed Eliminating Social Security Taxes. Here’s the Bill That Could Make It Happen]
What Workers and Retirees Should Know About the Social Security Administration
Workers and retirees must understand that while SSA workers can answer basic questions about the program, they can’t provide advice. Sometimes, even the information they provide may be incorrect.
“Historically, the experience with the Social Security Administration has been hit or miss,” Kampitsis says.
He’s had clients call the administration more than once with the same question and receive a different answer every time. That’s one reason why working with a financial planner who is well-versed in the Social Security program can be important.
Starting in April, people will no longer be able to complete an application for benefits or change their direct deposit details over the phone. Instead, that will require a trip to a local Social Security office to prove your identity.
To circumvent this in-person requirement, sign up for a my Social Security account. This account will verify a person’s identity and allow them to apply for benefits or change direct deposit information online.
Another perk of having a my Social Security account, according to Orestis, is access to a personalized report. This document details your earnings history and what your work record entitles you and your family to regarding retirement, disability and survivor benefits.
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What Is the Social Security Administration? originally appeared on usnews.com
Update 03/26/25: This story was published at an earlier date and has been updated with new information.
