1.3: Benefits and Protections
Benefits and Protections for Workers, Families, and Children Other Information:
The shift to a more global economy, technological advances, changing workforce demographics, and the growing federal deficit
are challenging customary federal approaches to providing benefits to the needy—low-income workers, the indigent, at-risk
children, and people with disabilities—and protecting workers and their families. While globalization will likely fuel economic
growth, it is also likely to create a more fluid job market where workers move from job to job throughout their working lives.
Some of this movement will be voluntary; but some workers and their families may find the transition more challenging and
will require income support, nutrition assistance, and other social services at some point in their lives. In order to reach
these beneficiaries and improve services, federal assistance programs must adapt to these market changes, and they must do
so within very tight budget constraints. While enrollment and costs for the largest federal disability programs are growing
and are poised to grow even more rapidly in the future, we have found that many of these programs are poorly positioned to
provide meaningful and timely support for people with disabilities. Many of the same forces creating challenges for these
programs will create new challenges for worker protection programs as well. Federal efforts to protect workers must account
for changes in the nature of work: membership in organized labor has declined, traditional work arrangements are giving way
to alternatives such as temporary employment and teleworking, and lifelong service with a single employer is becoming much
less common. Finally, identity theft has emerged as a growing concern for many. The Social Security number has long been used
primarily as a means to record workers’ contributions and benefits. Now, the Social Security number is a universal identifier
used by public agencies at all levels of government and the private sector. Efforts to address the terrorism threat have underscored
both the weaknesses and strengths of current efforts to protect individuals’ identities. As the labor market tightens over
the next two decades, tapping into new sources of workers will be important. The nation will need to look outside the traditional
workforce to find ways to bring people who have long remained on the sidelines into the job market. Specifically, a modern
labor force should include at-risk populations, people with disabilities, and people with weak attachments to the labor force.
Federal policies for providing income supports for the low-income population have increasingly focused on promoting work in
exchange for government assistance. For example, the federal government invested about $260 billion in fiscal year 2003 to
help those who have been laid off from their jobs and assist them in becoming reemployed, assist and rehabilitate workers
with injuries or disabilities, and encourage people on welfare to work. As the nation reconsiders key aspects of its immigration
policies, it will be important to balance future workforce needs against other national and homeland security needs and adequate
protections for the current workforce. Also, work alone cannot meet some social needs. Federal programs to feed people and
educate them on the benefits of a nutritious diet have long focused on helping low-income individuals, families, and children
avoid hunger and make healthy food choices. New nutrition concerns are being raised as the nation seeks to protect itself
against the health hazards brought on by obesity. In schools across the country, concerns have been raised about the nutritional
content of the meals served and the ready availability of nonnutritious foods. Likewise, a key federal nutrition program is
updating its recommended foods to respond to the changing nutritional needs of its participants. There are also a number of
federal programs targeted to at-risk children to help ensure that they get a healthy start. Each year, an estimated 900,000
children are the victims of abuse and neglect by their parents, relatives, or other caregivers. Tragically, approximately
1,300 children die each year from abuse and neglect. The federal government supports states’ efforts to care for these children
and invests almost $8 billion annually to provide care for children who need placement outside their homes, services to help
keep families together or to reunite them, and training and research activities to improve child welfare services nationwide.
Many of the nation’s benefits programs are vulnerable to fraud, waste, and abuse. The Department of Labor estimates a 10.6
percent error rate, including $3.4 billion in overpayments, in unemployment insurance benefits paid in 2004. Likewise, the
Department of Agriculture reports that there were about $1.4 billion in payment errors in the Food Stamp Program in 2004.
While the federal government and the states are taking steps to reduce these errors, more needs to be done. The mounting federal
deficit will make it difficult to maintain funding for these benefit programs, and program officials will have to ensure that
benefits are paid correctly and reach those with the greatest need. The federal government also plays a vital role in assisting
people with disabilities by providing employment-related services, medical care, and income support. Public concern and congressional
action have produced a broad array of federal programs designed to help people with disabilities, but many of these programs
have not evolved in line with economic, medical, technological, and social changes. These changes have increased the opportunities
for individuals with disabilities to live with greater independence and more fully participate in the workforce; however,
the rate of return to work for individuals with disabilities receiving cash and medical benefits is very low. Furthermore,
program enrollment and costs for the largest federal disability programs have been growing and are poised to grow even more
rapidly in the future, further contributing to the federal government’s large and growing long-term structural deficit. Federal
employment and worker protection programs must deal with new challenges as technology, changes in the organization of work,
and increasing global interdependence are redefining the labor market for workers and employers. These changes raise concerns
about the adequacy of efforts to ensure that workers have safe, healthy, and productive workplaces. Regulations and activities
designed to ensure workplace safety and health must be revised to accurately reflect the technological changes of the recent
past. The Congress and the administration face challenges as they redefine the role of public policies to help employers and
workers enhance productivity and increase earnings while also protecting workers’ rights. Identity theft is a growing concern
for many Americans. Efforts to address the terrorism threat have underscored both the weaknesses and strengths of current
efforts to protect individuals’ identities. In particular, the Social Security number, once an internal marker for the agency
to record contributions and pay benefits, is now virtually a universal identifier, used by public agencies at all levels of
government and private business entities of all sizes and from many different economic sectors. The Social Security number’s
wide use, besides raising many serious privacy issues, has also put citizens throughout the nation at risk of identity theft,
fraud, and other types of illegal activity. How to use the Social Security number in a way that ensures effective agency operations,
prevents its illegal use, and protects the privacy of U.S. citizens is a formidable challenge facing the Social Security Administration.
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