**A Message from the Commissioner**

![](media/image1.jpeg){width="1.625in" height="2.071527777777778in"}**I
am pleased to present the Social Security Administration's *Fiscal Year
2007 Annual Performance Plan* (APP) *and Revised Final Plan for FY
2006.* This APP represents our priorities in SSA's strategic goals for
Service, Stewardship, Solvency, and Staff as set forth in *SSA's
Strategic Plan* updated for**

**FYs 2006-2011.**

**This document integrates the Agency's *Strategic Plan* with the
President's FY 2007 budget, establishes specific levels of performance
the Agency is committed to achieve, and satisfies the statutory
requirements of the *Government Performance and Results Act*. The APP
states the Agency's responsibility for achieving the objectives of the
*President's Management Agenda* and describes our commitment to meeting
the goals of the Office of Management and Budget's *Performance
Assessment Rating Tool*.**

**Social Security continues to face great challenges ahead: providing
the level of Service the public expects and deserves, particularly as
the baby boomers age; providing program integrity through sound fiscal
Stewardship; ensuring that the public is educated and knowledgeable
about the Solvency of the Social Security trust funds; and employing and
retaining a diverse Staff committed to public service.**

**Even with these challenges and substantial resource constraints, I am
confident that the Agency will meet its strategic goals and objectives
and continue to improve our performance, paying particular attention to
program areas that the Agency determines require immediate
improvement.**

**The Agency's staff is deeply committed to meeting the needs of
claimants and beneficiaries who depend on SSA for excellent service and
the taxpayers who fund our programs and expect sound fiscal stewardship.
I believe that by working together, we will continue to improve our
performance.**

![](media/image2.png){width="2.75in" height="0.9645833333333333in"}

**Jo Anne B. Barnhart**

**Commissioner**

Table

of

Contents

**Introduction**

*Social Security's Results-*

*Oriented Performance* 1

**Summary**

*FY 2007 and Revised Final FY 2006*

*Annual Performance Plan* (APP) *Performance*

*Measures* 7

**Summary**

*Program Assessment Rating Tool*

(PART) Measures 13

***Federal Information***

***Security Management***

***Act* (FISMA)**

*Certification* 14

**Introduction --**

**Social Security's**

**Results-Oriented**

**Performance**

***To advance the economic security of the nation's people through
compassionate and vigilant leadership in shaping and managing America's
Social Security programs***

*The Social Security Administration's Mission*

As described in the July 2004 *OMB Circular No. A-11*, a performance
budget is organized as a hierarchy of goals, with strategic goals at the
top of the pyramid and related performance measures and performance
goals following. To help achieve the Social Security Administration's
mission, this *Annual Performance Plan* (APP), which is included in the
Agency's performance budget, lays out such an approach and describes how
Social Security will strategically achieve better performance and
accountability in FY 2006 and FY 2007.

At the top of the Agency's pyramid are four strategic goals---Service,
Stewardship, Solvency, and Staff. This APP is arranged by strategic goal
and strategic objective, along with long-term outcomes, related
performance measures and performance targets. The environmental factors
that may affect accomplishment of a strategic objective are also
included.

**Service**

***To deliver high-quality, citizen-centered Service***

Social Security is committed to delivering the service the public
expects from the Agency. This includes providing a measure of economic
security and financial stability. Service to the public also includes
consideration of accuracy, productivity, cost, timeliness, and service
satisfaction. Changes in demographics, medical and technological
advances, and other related environmental factors affect service
delivery, particularly with respect to Social Security's disability
programs. The Agency is responsible for continually assessing these
programs in the context of societal trends and supporting reforms to
ensure the programs meet the needs of current and future generations.

Social Security provides services through more than 1,500 Field Offices,
Regional Offices, Teleservice Centers (toll-free 800-number), Program
Service Centers, State Disability Determination Services, and Hearing
Offices, in addition to the Social Security website
([www.socialsecurity.gov](http://www.socialsecurity.gov/)).

###### *Environmental Factors*

Social Security faces substantial challenges in providing the public the
service they expect and deserve, particularly as the number of
beneficiaries increases each year. The number of Social Security
retirement, survivor, disability and Supplemental Security Income (SSI)
claims will grow significantly over the next decade with the aging of
the Nation's baby boomers. In addition, the Agency's "Retirement Wave"
analysis, updated in 2005, shows that

22 percent of Agency employees are currently eligible for retirement. By
2014, it also shows 56 percent of the Agency's current employees will be
eligible for retirement, and almost 42 percent are projected to retire.

Many changes in law, medicine, technology, and society have transpired
since Title II (Social Security) and Title XVI (SSI) disability programs
were established. The workplace has been made more accessible through
advances in technology and legislation. Impairments, which in the past
may have been permanently or completely disabling, can now be treated.
These and other changes have altered the concept of disability.

Improving technology also affects the way the Agency delivers service by
phone and in-person. The satisfaction levels of the people who do
business with Social Security by these channels continue to be very
important, and the Agency has devoted significant resources to ensuring
that its web services rank among the best in business. Fourth quarter
2005 *American Customer Satisfaction Index* (ACSI) scores were released
on December 15. Social Security's *Application for Help with Medicare
Prescription Drug Plan Costs* (i1020) and the *Internet Social Security
Benefit Application* (ISBA)\--both with scores of 88\--took the top
place among all Federal ACSI sites. In addition, the Agency's aggregate
ACSI score (79 for 7 surveys) was highest among all Federal agencies
running multiple surveys, and its SSA\'s Main Site survey scored 73.
Although Social Security has made great strides to improve service
through technology, there are significant external factors that may
affect the Agency's ability to improve the satisfaction levels of the
people who do business with it, e.g., some public concerns about
security and confidentiality, lack of access to the Internet,
incompatibility of hardware/software, etc. 

Increased use of the Internet and advances in electronic communication
technology provide the public with greater access to services and allows
the Agency to more efficiently reach them. However, this increased use
of new technology also raises far-reaching questions about security,
safety, and privacy.

The Agency considers the processing capabilities and the information
produced at its National Computer Center (NCC) to be one of its most
valuable assets, and the Agency is dedicated to ensuring the security of
these critical assets and related infrastructure. The Agency regularly
conducts risk and vulnerability assessments to determine the threats
posed to its identified critical assets. In addition, a recovery plan is
exercised annually to assure the Agency's ability to recover critical
Information Technology (IT) workloads at an offsite facility. The Agency
also maintains and exercises its *Continuity of Operations Plan*. To
further reduce the risks to critical assets, systems are monitored to
identify and remediate known security vulnerabilities to the Agency's IT
infrastructure. Finally, additional ways to better protect the Agency's
IT infrastructure are currently being investigated.

Social Security also will have new challenges and responsibilities as
the Agency helps to implement the *Medicare Prescription Drug
Improvement and Modernization Act of 2003*. In 2004 and 2005, the Agency
answered general inquiries, made referrals, and sent correspondence to
individuals identified as low-income who may be eligible for the new
prescription drug discount card. In 2005, the Agency mailed over 18
million subsidy applications to Title II Medicare beneficiaries who
appear to qualify for the subsidy. Additionally, the Agency is
conducting outreach activities nationwide to inform low-income Medicare
beneficiaries of the availability of Medicare Part D subsidies and
encouraging these individuals to file for subsidies. Subsidy
applications will be filed with and processed by the Agency, as well as
Part D

subsidy appeals and redeterminations. The Agency will also withhold Part
D premium payments for those enrollees choosing to have premiums
withheld from their monthly Social Security payments. Additionally,
beginning in January 2007, the Agency will determine and compute Part B
premium amounts based on individual's having incomes above certain
limits specified in law.

**Stewardship**

***To protect the integrity of Social Security programs***

***through superior Stewardship***

Individuals who contribute through payroll deductions, self-employment
taxes, or income taxes to fund the Social Security and Supplemental
Security Income (SSI) programs need to be confident their tax dollars
are properly managed. Beneficiaries must be guaranteed their benefits
are accurate and received timely.

Good stewardship goes beyond good money management. It includes ensuring
the security of Social Security's information systems and the integrity
and privacy of the personal information that the Agency maintains. It
also includes an obligation to provide safe and secure environments in
which employees can work and the public can transact business.

Good stewardship also includes strengthening the integrity of the Social
Security Number (SSN). The original purpose of the SSN was to enable the
Agency to keep an accurate record of earnings covered under Social
Security and to pay benefits based on these earnings. Over time, the SSN
has become a primary means of identification in both the public and
private sectors. Many initiatives are underway to protect the integrity
of the SSN and to ensure that SSNs are assigned appropriately, thereby
supporting efforts to increase domestic safety and protect Americans
from incidents of identity fraud.

###### *Environmental Factors*

Information technology has altered the way the public interacts with
government and the way government agencies interact with each other. The
widespread interconnectivity of computer systems and the critical
operations and infrastructures they support create new security-related
vulnerabilities. Social Security's ability to obtain, verify and match
information and data electronically with other governmental agencies and
organizations helps prevent and detect improper payments in the Old-Age,
Survivors, and Disability Insurance (OASDI) and SSI programs.

A high priority for all Federal agencies is homeland security, which
includes vigilance against identity theft. The Government Accountability
Office (GAO) and Social Security's Office of the Inspector General (OIG)
identified *SSN Integrity and Protection* as a Major Management
Challenge. The Social Security Advisory Board has expressed concern that
the fraudulent use of the SSN has become a significant public policy
issue that is expected to grow as the number of SSN-related crimes
escalates. Strengthening the enumeration and verification process is a
top Agency priority.

Because of limited resources in FY 2006, in order to maintain service
levels for initial claims, the Agency has had to make adjustments in
program integrity workloads. Specifically, the Agency was not able to
perform as many continuing disability reviews (CDRs) or SSI
non-disability redeterminations as was planned. The reduction in CDRs
has potentially allowed some individuals to continue being eligible for
benefits when they may no longer qualify. For FY 2007, legislation has
been introduced to earmark funds for conducting increased numbers of
CDRs. CDRs have proven to be cost-effective, returning more than \$10
for each \$1 spent on this workload.

**Solvency**

***To achieve sustainable Solvency and ensure Social Security programs
meet the needs of current and future generations***

The nation's population is growing older, with profound, long-term
effects on the sustainable solvency of Social Security programs. In a
summary of the Social Security and Medicare 2005 annual reports, which
includes 75-year projections, the Trustees state, "We do not believe the
currently projected long run growth rates of Social Security and
Medicare are sustainable under current financing arrangements."
Additionally, the Comptroller General of the United States and the
Chairman of the Federal Reserve also have testified that Social Security
is unsustainable over the long term.

New patterns of work and earnings, marriage, divorce, and childbearing
are changing the characteristics of families. Individuals are living
longer and healthier lives. The large baby-boom generation (persons born
between 1946 and 1964) is nearing retirement and most will have retired
by 2030. Without changes to the program there will not be enough workers
to generate sufficient taxable income to support the Social Security
benefits needed for the baby-boom generation. Social Security must
respond to these developments. One way is to educate the public about
the program's financing challenges and the effect on future
beneficiaries. Social Security also must serve as a resource for
analysis within the Administration, as well as for Congress and
interested groups. Through these actions, the Agency will be better able
to support program and legislative changes in what are arguably the
Nation's most important domestic programs, and ensure that the program
remains secure and meets the needs of current and future generations.

***Environmental Factors***

As *The 2005 Annual Report of the Board of Trustees of the Federal
Old-Age and Survivors Insurance and Disability Insurance Trust Funds*
points out, solvency is affected by a multitude of demographic,
socio-economic, and program-specific factors, e.g., the size and
characteristics of the population receiving benefits, the level of
monthly benefit amounts, the size of the work force, the level of
workers' earnings, future birth rates, death rates, immigration,
marriage and divorce rates, retirement age patterns, disability
incidence and termination rates, productivity gains, wage increases, and
inflation.

Beginning in 2017, the cost of Social Security will begin to exceed the
program's tax income. Whereas today, about 3.3 people pay for every
OASDI beneficiary, the projected ratio of workers to beneficiaries will
be only 2.2 for every OASDI beneficiary by 2030.

**Staff**

***To strategically manage and align Staff to support the mission of the
Agency***

Social Security will strive to maintain a high-performing workforce and
enhance productivity through automation, job enrichment opportunities
and training, succession planning, leadership development, new
performance management systems, and other service enhancements while
dealing with significant workload growth and increasing numbers of
retirements. Through this goal, the Agency addresses each dimension of
the *President's Management Agenda* (PMA) *Human Capital Initiative.*
The Staff goal differs from the other three strategic goals. It is
actually considered an enabling goal because the corresponding human
capital performance measures support the ability to deliver high-quality
service, ensure stewardship of Social Security programs, and address
issues surrounding solvency of the Trust Funds.

###### *Environmental Factors*

Social Security projects that its retirement wave will peak between FY
2008 and FY 2010. Also, while the pool of retirement eligible employees
increases, the first wave of baby boomers will be entering their
disability-prone and retirement years. These factors, coupled with an
increase of diverse and multilingual/bilingual Americans, will result in
significant workload growth for the Agency. Absent effective workforce
planning, the Agency's retirement wave will not only affect its ability
to deliver citizen-centered service to the American people, but will
also result in a significant strain on the Agency's institutional
knowledge and expertise.

**Summary \-- FY 2007 and Revised Final FY 2006 Annual Performance Plan
Performance Measures**

The *Agency Strategic Plan* *for FYs 2006 - 2011* is the basis for this
APP**.** The Strategic Plan reflects Social Security's priorities to
deliver the service the public expects and deserves, to improve program
integrity through sound stewardship, to ensure future program solvency,
and to maintain quality staff required to fulfill the first three goals.
The chart below is a complete summary of performance goals for

FYs 2006 -- 2007.

**1 Service**

***To deliver high-quality, citizen-centered Service***

**Strategic Objective 1.1**

**Make the right decision in the disability process as early as
possible**

> **Long - Term Outcomes**

-   Reduce significantly the time it takes for a disability claimant to
    receive a final Agency decision

-   Improve decisional consistency and accuracy

-   Ensure that beneficiaries who are clearly disabled receive
    determinations within

20 calendar days or less

+---+-----------------------------------+-------------+--------------+
| * |                                   | **FY 2006   | **FY 2007    |
| * |                                   | Target**    | Target**     |
| P |                                   |             |              |
| e |                                   |             |              |
| r |                                   |             |              |
| f |                                   |             |              |
| o |                                   |             |              |
| r |                                   |             |              |
| m |                                   |             |              |
| a |                                   |             |              |
| n |                                   |             |              |
| c |                                   |             |              |
| e |                                   |             |              |
| M |                                   |             |              |
| e |                                   |             |              |
| a |                                   |             |              |
| s |                                   |             |              |
| u |                                   |             |              |
| r |                                   |             |              |
| e |                                   |             |              |
| s |                                   |             |              |
| * |                                   |             |              |
| * |                                   |             |              |
+===+===================================+=============+==============+
| 1 | > Number of initial disability    | 2,663,000   | 2,570,000    |
| . | > claims processed by the         |             |              |
| 1 | > Disability Determination        |             |              |
| a | > Services (DDS)                  |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | > Maintain the number of initial  | 577,000     | 577,000      |
| . | > disability claims pending in    |             |              |
| 1 | > the DDS (at/below FY 2006/2007  |             |              |
| b | > goal)                           |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Number of SSA hearings processed  | 560,000     | 577,000      |
| . |                                   |             |              |
| 1 |                                   |             |              |
| c |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Maintain the number of SSA        | 756,000     | 767,000      |
| . | hearings pending                  |             |              |
| 1 |                                   |             |              |
| d | (at or below FY 2006/2007 goal)   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Average processing time for       | 93 days     | 93 days      |
| . | initial disability claims         |             |              |
| 1 |                                   |             |              |
| e |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Average processing time for SSA   | 467 days    | 467 days     |
| . | hearings                          |             |              |
| 1 |                                   |             |              |
| f |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Average processing time for       | 242 days    | 242 days     |
| . | hearings appeals                  |             |              |
| 1 |                                   |             |              |
| g |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | DDS net accuracy rate             | 97%         | 97%          |
| . | (allowances/denials combined)     |             |              |
| 1 |                                   |             |              |
| h |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Disability hearings decision      | 90%         | 90%          |
| . | accuracy rate                     |             |              |
| 1 |                                   |             |              |
| i |                                   |             |              |
+---+-----------------------------------+-------------+--------------+
| 1 | Agency decisional accuracy rate   | 97%         | 97%          |
| . | (ADA)                             |             |              |
| 1 |                                   |             |              |
| j |                                   |             |              |
+---+-----------------------------------+-------------+--------------+

**Strategic Objective 1.2**

**Increase employment for people with disabilities by expanding
opportunities**

> **Long - Term Outcomes**

-   Increase awareness of opportunities to achieve greater financial
    independence through employment

-   Increase participation of beneficiaries and service providers in
    work opportunity initiatives

  --------------- --------------------------------- --------------- -----------------
  **Performance                                     **FY 2006       **FY 2007
  Measures**                                        Target**        Target**

  1.2a            Number of DI and SSI              22,483          Establish a new
                  beneficiaries, with tickets                       baseline
                  assigned, who work (over Calendar                 
                  Year \[CY\] 2003 baseline of                      
                  14,052)                                           

  1.2b            Number of SSI disabled            268,419         281,840
                  beneficiaries earning at least                    
                  \$100 per month                                   
  --------------- --------------------------------- --------------- -----------------

**Strategic Objective 1.3**

**Improve service through technology, focusing on accuracy, security,
and efficiency**

> **Long - Term Outcomes**

-   Allow the public to more easily interact with SSA by increasing
    partnerships with government and non-governmental organizations to
    share data and processes

-   Improve and expand service capabilities by making optimal use of
    technology, including telephone and other electronic processes

-   Protect all sensitive data by ensuring that appropriate systems
    security and privacy safeguards continue to be in place

-   Eliminate backlogs for postentitlement work

+---+----------------------------------+--------------+---------------+
| * |                                  | **FY 2006    | **FY 2007     |
| * |                                  | Target**     | Target**      |
| P |                                  |              |               |
| e |                                  |              |               |
| r |                                  |              |               |
| f |                                  |              |               |
| o |                                  |              |               |
| r |                                  |              |               |
| m |                                  |              |               |
| a |                                  |              |               |
| n |                                  |              |               |
| c |                                  |              |               |
| e |                                  |              |               |
| M |                                  |              |               |
| e |                                  |              |               |
| a |                                  |              |               |
| s |                                  |              |               |
| u |                                  |              |               |
| r |                                  |              |               |
| e |                                  |              |               |
| s |                                  |              |               |
| * |                                  |              |               |
| * |                                  |              |               |
+===+==================================+==============+===============+
| 1 | Retirement and Survivor          | 3,911,000    | 3,919,000     |
| . | Insurance (RSI) claims processed |              |               |
| 3 |                                  |              |               |
| a |                                  |              |               |
+---+----------------------------------+--------------+---------------+
| 1 | Optimize the speed in answering  | 330 seconds  | 330 seconds   |
| . | 800-number calls                 |              |               |
| 3 |                                  |              |               |
| b |                                  |              |               |
+---+----------------------------------+--------------+---------------+
| 1 | Optimize the 800-number busy     | 10%          | 10%           |
| . | rate for calls offered to Agents |              |               |
| 3 |                                  |              |               |
| c |                                  |              |               |
+---+----------------------------------+--------------+---------------+
| 1 | Increase the usage of electronic | 300% growth  | 475% growth   |
| . | entitlement and supporting       | over FY 2004 | over          |
| 3 | actions                          | baseline     |               |
| d |                                  |              | FY 2004       |
|   |                                  | (2,211,200)  | baseline      |
|   |                                  |              |               |
|   |                                  |              | (3,170,000)   |
+---+----------------------------------+--------------+---------------+
| 1 | Increase the percent of employee | 70%          | 80%           |
| . | reports                          |              |               |
| 3 |                                  |              |               |
| e | (*W-2* forms) filed              |              |               |
|   | electronically                   |              |               |
+---+----------------------------------+--------------+---------------+
| 1 | Percent of individuals who do    | 83%          | 83%           |
| . | business with SSA rating the     |              |               |
| 3 | overall service as "excellent,"  |              |               |
| f | "very good," or "good"           |              |               |
+---+----------------------------------+--------------+---------------+
| 1 | Improve workload information     | Complete 66% | Complete 84%  |
| . | using *Social Security Unified   | of SUMS      | of SUMS       |
| 3 | Measurement System* (SUMS)       | projects     | projects      |
| g |                                  |              |               |
+---+----------------------------------+--------------+---------------+

**2 Stewardship**

***To protect the integrity of Social Security programs through superior
Stewardship***

**Strategic Objective 2.1**

**Detect and prevent fraudulent and improper payments and improve**

**debt management**

> **Long - Term Outcomes**

-   Increase the Agency's stewardship accuracy rate for Supplemental
    Security Income payments

-   Maintain the Agency's stewardship accuracy rates for Old-Age,
    Survivors, and Disability Insurance payments

-   Increase the percent of outstanding debt that is in a collection
    arrangement

-   Remain current with Disability Insurance and Supplemental Security
    Income continuing disability reviews (if dedicated funding is
    available)

-   Finish processing special disability cases

-   Reduce the backlog of workers' compensation cases

+---+------------------------------------+--------------+-------------+
| * |                                    | **FY 2006    | **FY 2007   |
| * |                                    | Target**     | Target**    |
| P |                                    |              |             |
| e |                                    |              |             |
| r |                                    |              |             |
| f |                                    |              |             |
| o |                                    |              |             |
| r |                                    |              |             |
| m |                                    |              |             |
| a |                                    |              |             |
| n |                                    |              |             |
| c |                                    |              |             |
| e |                                    |              |             |
| M |                                    |              |             |
| e |                                    |              |             |
| a |                                    |              |             |
| s |                                    |              |             |
| u |                                    |              |             |
| r |                                    |              |             |
| e |                                    |              |             |
| s |                                    |              |             |
| * |                                    |              |             |
| * |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | SSI non-disability                 | 1,244,000    | 1,026,000   |
| . | redeterminations processed         |              |             |
| 1 |                                    |              |             |
| a |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | Number of periodic CDRs processed  | 1,242,000    | 1,558,000   |
| . | to determine continuing            |              |             |
| 1 | entitlement based on disability    |              |             |
| b |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | Percent of SSI payments free of    | 95.4% O/P    | 95.7% O/P   |
| . | overpayments (O/P) and             |              |             |
| 1 | underpayments (U/P)                | 98.8% U/P    | 98.8% U/P   |
| c |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | Percent of outstanding SSI debt in | 55%          | 56%         |
| . | a collection arrangement           |              |             |
| 1 |                                    |              |             |
| d |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | Percent of OASDI payments free of  | 99.8% O/P    | 99.8% O/P   |
| . | O/P and U/P                        |              |             |
| 1 |                                    | and U/P      | and U/P     |
| e |                                    |              |             |
+---+------------------------------------+--------------+-------------+
| 2 | Percent of outstanding OASDI debt  | 43%          | 44%         |
| . | in a collection arrangement        |              |             |
| 1 |                                    |              |             |
| f |                                    |              |             |
+---+------------------------------------+--------------+-------------+

> **Strategic Objective 2.2**

**Strengthen the integrity of the Social Security Number (SSN) issuance
process to help prevent misuse and fraud of the SSN and card**

> **Long - Term Outcomes**

-   Strengthen the integrity of the SSN issuance process by engaging in
    ongoing policy development in partnership with other government
    entities

-   Assign SSNs and issue cards accurately and safeguard
    Agency-maintained identity information

-   Provide legally required SSN record verification services to aid in
    the prevention of SSN misuse

[]{.mark}

  --------------- ---------------------------------- ---------------- ---------------
  **Performance                                      **FY 2006        **FY 2007
  Measures**                                         Target**         Target**

  2.2a            Percent of original SSNs issued    98%              98%
                  that are free of critical error                     

  2.2b            Number of SSNs processed           18,000,000       18,000,000
  --------------- ---------------------------------- ---------------- ---------------

**Strategic Objective 2.3**

**Ensure the accuracy of earnings records so that eligible individuals
can receive the proper benefits due them**

> **Long - Term Outcomes**

-   Facilitate more accurate earnings reports by encouraging the use of
    electronic wage reporting

-   Reduce the number of annual earnings items posted to the *Earnings
    Suspense File* (ESF)

[]{.mark}

  --------------- ------------------------------------ -------------- ---------------
  **Performance                                        **FY 2006      **FY 2007
  Measures**                                           Target**       Target**

  2.3a            Remove 3 percent of the earnings     3%             3%
                  items remaining in the ESF for a new                
                  tax year and post the earnings to                   
                  the correct earnings record                         
  --------------- ------------------------------------ -------------- ---------------

**Strategic Objective 2.4**

**Manage Agency finances and assets to link resources effectively to
performance outcomes**

> **Long - Term Outcomes**

-   Demonstrate the Agency's commitment to sound financial management by
    creating a strong internal control structure and producing relevant
    and reliable accounting information, including receiving an
    "unqualified opinion" on the Agency's financial statement audit

-   Maximize the ability of the Agency's financial, performance, and
    management information systems to fulfill its mission by improving
    existing automated tools and developing new ones

-   Ensure the most effective use of limited Agency resources by
    continuing to achieve 2 percent, on average, annual productivity
    improvements

-   Ensure the security of the Agency's information systems, physical
    assets, and employees by continuously performing security
    assessments and acquiring state-of-the-art protection systems

  ------------------------------------------------------------------------
         **Performance Measures**        **FY 2006        **FY 2007
                                         Target**         Target**
  ------ ------------------------------- ---------------- ----------------
  2.4a   Continue to achieve 2 percent   2%               2%
         productivity improvement on                      
         average                                          

  2.4b   DDS case production per         262              276
         workyear (PPWY)                                  

  2.4c   SSA hearings case production    104              106
         per workyear (PPWY)                              

  2.4d   Maintain zero outside           0                0
         infiltrations of SSA's                           
         programmatic mainframes                          

  2.4e   Enhance efforts to improve      Complete 29% of  Complete 58% of
         financial performance using     MCAS projects    MCAS projects
         *Managerial Cost Accountability                  
         Systems* (MCAS)                                  

  2.4f   Receive an unqualified opinion  Receive an       
         on SSA's financial statements   unqualified      
         from the auditors               opinion          

  2.4g   Get to "green" on the           Achieve a status Achieve a status
         *President's Management Agenda* score of "green" score of "green"
         (PMA) initiatives status scores on four of five  on five of five
                                         PMA initiatives  PMA initiatives
  ------------------------------------------------------------------------

**3 Solvency**

***To achieve sustainable Solvency and ensure Social Security programs
meet the needs of current and future generations***

**Strategic Objective 3**

**Through education and research efforts, support reforms to ensure
sustainable Solvency and more responsive retirement and disability
programs**

[]{.mark}

> **Long - Term Outcome**

-   Achieve reform that ensures long-term solvency

  --------------- --------------------------------- ---------------- ---------------
  **Performance                                     **FY 2006        **FY 2007
  Measures**                                        Target**         Target**

  3.1a            Provide support to the            Conduct analysis 
                  Administration and Congress in    for the          
                  developing legislative proposals  Administration   
                  and implementing reforms to       and Congress on  
                  achieve sustainable solvency for  key issues       
                  Social Security                   related to       
                                                    implementing     
                                                    Social Security  
                                                    reforms          

  3.1b            Issue annual SSA-initiated        100%             100%
                  *Social Security Statements* to                    
                  eligible individuals age 25 and                    
                  older                                              
  --------------- --------------------------------- ---------------- ---------------

**4 Staff**

***To strategically manage and align Staff to support the mission of***

***the Agency***

**Strategic Objective 4**

**Recruit, develop, and retain a high-performing workforce**

[]{.mark}

> **Long - Term Outcomes**

-   Employ and develop a workforce that is diverse, committed to public
    service, skilled in the use of technology, and flexible in adapting
    to change

-   Continue to use advanced technology and automation that enables
    staff to provide quality service to the American public

-   Provide an environment and culture that encourages employee
    retention and motivates employees to deliver timely, quality,
    citizen-centered service

  -------------------------------------------------------------------------------------
  **Performance                        **FY 2006 Target**        **FY 2007 Target**
  Measures**                                                     
  --------------- -------------------- ------------------------- ----------------------
  4.1a            Minimize skill and   Competency-based          Identify
                  knowledge gaps in    entry-level training      competency-based
                  mission-critical     curriculum will be        leadership training
                  positions            developed for 100% of the for supervisors and
                                       remaining targeted public managers
                                       contact positions --      
                                       Benefit Authorizers,      
                                       Claims Authorizers, and   
                                       Technical Support         
                                       Technicians               

  4.1b            Align employee       Develop a communication   Implement the
                  performance with     and training plan to      multi-tiered
                  Agency mission and   facilitate implementation results-oriented
                  strategic goals      of the new performance    performance assessment
                                       assessment system for     system for General
                                       employees at the GS-14    Schedule (GS) and
                                       and below level and       Federal Wage System
                                       GS-15s who are covered by employees below the
                                       the *Social Security      GS-15 or equivalent
                                       Administration/American   grade, and GS-15
                                       Federation of Government  employees who are
                                       Employees* (AFGE)         covered by the 2005
                                       *National Agreement*      *National Agreement*
  -------------------------------------------------------------------------------------

**Summary --**

**Program Assessment Rating Tool (PART) Measures**

The Program Assessment Rating Tool (PART) was developed by the Office of
Management and Budget (OMB) to assess the effectiveness of federal
programs and helps inform management action, budget requests, and
legislative proposals directed at achieving results. OMB uses the PART
diagnostic tool to identify strengths and weaknesses of programmatic
performance. OMB has used PART to examine the Agency's Disability
Insurance (DI) and SSI programs.

  -----------------------------------------------------------------------
  **SSI PART Long - Term Outcomes**

  -----------------------------------------------------------------------

-   Reduce the ratio of SSI beneficiaries below 70% of poverty to 16% by
    2010

-   Reduce the percentage of people dependent on SSI for more than 90%
    of their income to 45% by 2010

+--------------------------------------+---------+---+--------+-----------+
| **PART Performance Measures (SSI and | **FY    |   | **FY   | []{.mark} |
| DI)**                                | 2006**  |   | 2007** |           |
+--------------------------------------+---------+---+--------+-----------+
| Average processing time for initial  | 93 days |   | 93     | []{.mark} |
| disability claims (DI & SSI PARTs)   |         |   | days   |           |
+--------------------------------------+---------+---+--------+-----------+
| Average processing time for SSA      | 467     |   | 467    | []{.mark} |
| hearings (DI PART)                   | days    |   | days   |           |
+--------------------------------------+---------+---+--------+-----------+
| DDS net accuracy rate (allowances    | 97%     | 9 |        | []{.mark} |
| and denials combined) (DI & SSI      |         | 7 |        |           |
| PARTs)                               |         | % |        |           |
+--------------------------------------+---------+---+--------+-----------+
| Number of DI and SSI beneficiaries,  | 22,483  |   | Est    | []{.mark} |
| with tickets assigned, who work      |         |   | ablish |           |
| (over CY 2003 baseline of 14,052)    |         |   | new    |           |
|                                      |         |   | ba     |           |
|                                      |         |   | seline |           |
+--------------------------------------+---------+---+--------+-----------+
| Percent of SSI payments free of      | 95.4%   |   | 95.7%  | []{.mark} |
| overpayments (SSI PART)              |         |   |        |           |
+--------------------------------------+---------+---+--------+-----------+
| Percent of SSI payments free of      | 98.8%   |   | 98.8%  | []{.mark} |
| underpayments (SSI PART)             |         |   |        |           |
+--------------------------------------+---------+---+--------+-----------+
| Disability Determination Services    | 262     |   | 276    | []{.mark} |
| (DDS) case production per workyear   |         |   |        |           |
| (DI PART)                            |         |   |        |           |
+--------------------------------------+---------+---+--------+-----------+
| SSA hearings case production per     | 104     |   | []{    | []{.mark} |
| workyear (DI & SSI PARTs)            |         |   | .mark} |           |
|                                      |         |   |        |           |
|                                      |         |   | 106    |           |
+--------------------------------------+---------+---+--------+-----------+
| Percent of SSI Aged claims processed | 75%     |   | 75%    | []{.mark} |
| by the time the first payment is due |         |   |        |           |
| or within 14 days of the effective   |         |   |        |           |
| filing date (SSI PART) *(Note: Not a |         |   |        |           |
| performance measure for the APP)*    |         |   |        |           |
+--------------------------------------+---------+---+--------+-----------+

***Federal Information Security***

***Management Act* (FISMA)**

The Government Accountability Office (GAO) in its audit of 26 major
agencies, (*GAO-04-49 - Information Technology Management --
Government-wide Strategic Planning, Performance Measurement and
Investment Management Can Be Further Improved*), cited agencies for
failing to include in their *Annual Performance Plan* the resources and
time periods required to implement the Agency\'s information security
program plans as required by the *Federal Information Security
Management Act (*FISMA), Section 3544(d).

**Social Security Administration's FISMA Statement**

The Social Security Administration\'s established *Systems Application
Development Life Cycle* is an institutionalized procedure that
contributes to meeting the requirements of FISMA. This involves human
resources from various Agency components. In FY 2004 over \$45 million
in IT budget funds were spent on the Agency's IT security program. The
Agency implemented all FISMA major program requirements within

18 months after the enactment of the FISMA in December 2002. A
Congressional report card rates Social Security's computer security
efforts as among the best in the Federal Government. The report issued
by the House Government Reform Subcommittee on Technology, Information
Policy, Intergovernmental Relations and Census gave the Agency a grade
of B+, the third highest among Federal agencies, with grading based upon
the FISMA reporting requirements.