Checks likely will be mailed in shutdown

WASHINGTON, Feb. 24 (UPI) -- Democrats may be fudging when claiming Social Security checks wouldn't be mailed if the U.S. government shuts down next month, observers say.

When the government shut down for a month in late 1995, the Social Security Administration mailed checks throughout the work stoppage, and a reading of the law states the agency has the legal authority to do so again, CNNMoney reported Thursday. A shutdown is possible if a funding resolution isn't in effect by March 4, when the current continuing resolution expires.

"I am absolutely sure the checks would be sent out," said John F. Cooney, a lawyer who designed shutdown plans for the government when he worked for the Office of Management and Budget.

Robert Reischauer, president of the Urban Institute and a trustee of the Social Security and Medicare trust funds, said Democrats' claims that benefits won't be paid are "not true."

"The shutdown refers to discretionary spending, and Social Security is mandatory spending. It doesn't need an appropriations bill to go forward," Reischauer said.

Because Social Security benefits are paid through the trust fund, the agency has the implied legal authority to keep paying staffers who administer them, he told CNNMoney.

Each government agency is required to develop a plan to implement in case of a shutdown and must file it with the OMB.