Social Security announces major shakeup affecting 70 million Americans: Will your benefits go up or down?

The Social Security Administration (SSA) is handling more calls with a faster response time, thanks to technology enhancements and process engineering. The SSA announced a major update to its technological advancements on Wednesday as part of its larger mission, led by new Commissioner Frank Bisignano, to modernize the agency, reports NewsWeek.

"Our vision is centered on providing outstanding service that works for everyone we serve—whether they call, walk into a field office, or choose to manage their benefits online," said Bisignano in a statement. "We are transforming the customer experience, investing in technology to build frontline capacity, and using real-time data to monitor performance across the board. We are delivering higher levels of customer service—and this will continue."

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Social Security issues update on changes

Around 69 million people in the US receive Social Security payments each month and with President Trump returning to the White House, the SSA has been undergoing a period of restructuring. Thousands of employees no longer working for the agency due to the Department of Government Efficiency's (DOGE) cost-saving initiatives.

According to NewsWeek, the SSA announced it has implemented new telephone technology on the national 800 number and in its field offices. The SSA stated that this resulted "in improved service to the American people," according to its release.

Specifically, the SSA is handling more calls with a faster response time. Last week, the agency handled nearly 1.3 million calls on the national 800 number, which was 70 percent more than the same week last fiscal year. The average speed of answer also dropped to 6 minutes from an average of 30 minutes last year- an 80% reduction.

The administration also reported reducing the customer wait time in field offices to 23 minutes, a 23% reduction from the average of 30 minutes last year.

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Online service has also been improved through elimination of regular scheduled downtime of 29 hours a week. The agency reported that this allowed 125,000 more people to access their online accounts during the first week.

The agency also eliminated its longstanding scheduled downtime of 29 hours a week for the my Social Security portal. In the first week alone, the SSA said 125,000 more customers were able to access their online accounts.

SSA faces major funding crisis

Despite these improvements, some experts have sounded the alarm on the tech upgrades while the SSA faces a funding crisis projected to hit as early as the early 2030s.

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"This modernization is happening while Social Security faces its worst funding crisis in decades. The trustees in 2024 projected the program's combined retirement and disability trust funds may last until 2035," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.

"Think about that. The agency is investing millions in new technology while knowing it might only be able to pay 83 cents on the dollar in 10 years. It's like renovating the kitchen while the house is on fire."

Under the Social Security Fairness Act, the SSA said it would be sending 3.1 million payments to eligible recipients. which became law on January 5. Under the new law, the agency identified 2.8 million Social Security beneficiaries whose benefits were reduced because of the Windfall Elimination Provision or Government Pension Offset. Those included police officers, firefighters, teachers, and other public servants. The agency said it completed the task five months ahead of the estimated time of a year or more.

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SSA Commissioner Frank Bisignano said in a statement: "Our strategy is clear: serve customer needs quickly and completely, no matter how they contact us. We will continue to evaluate our tools, technology, and processes to empower our workforce to provide best-in-class customer service to the American people."

The SSA also alerted recipients to another change heading their way in the fall. Starting September 30, the SSA will no longer issue paper checks for benefit payments.