Social Security Reorganization Act of 1989

Social Security Reorganization Act of 1989 - Title I: Establishment of the Social Security Administration - Amends title VII (Administration) of the Social Security Act to establish as an independent executive agency a Social Security Administration, headed by a Social Security Board. Provides that it shall be the duty of the Administration to administer the programs established by titles II (Old Age, Survivors and Disability Insurance) and XVI (Supplemental Security Income) of the Social Security Act. Requires the Board to study and make recommendations as to the most effective methods of providing economic security through social insurance and as to legislation and matters of administrative policy.

Establishes in the Administration: (1) a Commissioner of Social Security; (2) an Office of Hearings and Appeals, to be headed by a Chief Administrative Law Judge; (3) a Deputy Commissioner of Social Security; (4) a General Counsel; (5) a Chief Actuary; (6) an Office of Policy and Legislation, to be headed by a Director of Policy and Legislation; (7) an Inspector General; and (8) an Office of the Ombudsman, to be headed by a Social Security Ombudsman who shall represent the concerns of the public regarding the OASDI and SSI programs to the Commissioner, the Board, and the President, and conduct studies and surveys of the administrative effectiveness and program policy goals of the agency. Establishes a Citizens' Advisory Committee within the Office of the Ombudsman to prepare and transmit to the Congress a biennial report assessing the administration and objectives of the OASDI and SSI programs. Authorizes the Committee to request, and assist in the preparation of, ombudsman studies and surveys of the agency's administration of the OASDI and SSI programs.

Requires the Board to make annual budgetary recommendations relating to the Administration. Requires that appropriations requests by the Administration for staffing and personnel be based upon a comprehensive workforce plan established by the Board. Provides for the apportionment of administrative costs. Requires the annual report of the Board to include a section reflecting the use of budget authority provided to the Administration. Requires that authority for automated data processing procurement and facilities construction be provided in the form of contract authority covering the total cost of such acquisitions. Makes amounts needed for the liquidation of contract authority so provided available from the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund to the extent that such amounts are not needed to meet current obligations for benefit payments. Requires the Board to cause a seal of office to be made and judicial notice taken thereof.

Transfers to the Administration functions carried out by the Secretary of Health and Human Services with respect to the programs and activities to be carried out by the Administration under this Act.

Abolishes the position of Commissioner of Social Security in the Department of Health and Human Services.

Sets forth a beneficiary bill of rights under which: (1) all individuals are required to be treated fairly by the Board, the Commissioner, and the Secretary; (2) the Board, the Commissioner, and the Secretary are prohibited from discriminating on the basis of age, sex, race, creed, color, handicap, national origin, or economic condition; (3) the Commissioner and the Secretary should maintain prompt, professional, and effective service which is accessible and responsive to the community; (4) benefit payments are to be timely and proper; (5) a personal conference with an official or employee of the agency or Department of Health and Human Services is to be accorded to a beneficiary adversely affected by a determination of the Commissioner or the Secretary; and (6) a beneficiary is to receive, with respect to appealable administrative matters, a full, fair, and impartial evidentiary hearing before an administrative law judge.

Sets forth effective date and transitional rule provisions.

Title II: Conforming Amendments and Rules of Construction - Requires the Secretary and the Board to report to the Congress within 120 days after the beginning of each regular session on their administration under this Act.

Requires the Secretary to study and make recommendations on the most effective methods of providing economic security and on the administrative policy for the programs.

Directs the Board to appoint, quadrennially, an Advisory Council on the Old-Age, Survivors and Disability Insurance Program and an Advisory Council on Health and Supplementary Medical Insurance to review the relation of the trust funds supporting the OASDI program and the Medicare program and the long-term commitments of those programs. Requires each council to submit a report to the Board for transmittal to the Congress and the Board of Trustees of each trust fund.

Title III: Management of the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund and the Federal Hospital Insurance Trust Fund - Amends the OASDI and Medicare (title XVIII of the Act) programs to direct the Managing Trustees of the Federal Old-Age and Survivors Insurance Trust Fund, Federal Disability Insurance Trust Fund, and Federal Hospital Insurance Trust Fund (trust funds) to immediately invest that portion of the trust funds which is not required for current withdrawals. Requires the investment of amounts in the OASDI trust funds to be made in accordance with policies established by the Social Security Board. Prohibits the sale and redemption of trust fund assets or the expenditure of trust fund amounts for purposes other than those specified in titles II and XVIII of the Act.