Audit highlights challenges in South Carolina’s disability determination system

COLUMBIA, S.C. (WIS) - A new state audit is raising questions about South Carolina’s ability to address delays in the disability benefits process, highlighting the complicated relationship between state and federal agencies that share responsibility for reviewing disability claims.

Disability determinations in South Carolina are handled by South Carolina Disability Determination Services, a division housed within the South Carolina Vocational Rehabilitation Department. While the employees making disability decisions are state workers, the program is funded by the federal Social Security Administration, which also maintains significant control over hiring and operational decisions.

According to a report released by the Legislative Audit Council, the agency responsible for reviewing disability claims has lost more than a third of its disability examiners since 2021. Auditors found a 35% reduction in examiner staffing between January 2021 and June 2026, with workforce shortages likely contributing to processing delays. The report also cites employee turnover, pay concerns and the loss of telework opportunities as factors making recruitment and retention more difficult.

Disability rights advocate Sue Berkowitz of the Appleseed Legal Justice Center said the findings are not surprising.

“We need to be replacing people faster than we’re losing them because what we do see is real harm to the people who are in such desperate need and not getting the services they need,” Berkowitz said.

The audit was commissioned after state lawmakers sought answers about lengthy disability claim delays and growing backlogs. However, auditors say they were unable to fully determine how long applicants are waiting or identify the primary causes of delays because the Social Security Administration denied access to key claims-processing data requested during the review.

The report states the federal agency denied requests for claimant-level data, backlog information and processing metrics, citing federal privacy laws and other restrictions. Auditors also said they were prevented from interviewing agency employees for more than a month while the requests underwent review by SSA officials.

“It resulted in a significant scope impairment,” said Jordan Kneece, audit manager for the Legislative Audit Council. “It really prevented us from digging in and finding parts of the process that were taking longer, any sort of commonality between claimants that were resulting in longer wait times, and we weren’t really able to verify any of the data they were presenting us.”

Despite those limitations, auditors identified staffing shortages as a significant challenge. The report found the agency lost 114 examiners between 2021 and mid-2026, including many experienced employees. Auditors also noted that disability determination services cannot hire new employees without approval from the Social Security Administration, giving the federal government substantial influence over staffing levels.

The audit comes after a South Carolina House Government Efficiency and Legislative Oversight Committee subcommittee spent months examining the disability determination system. Lawmakers heard testimony that some applicants have waited more than a year for a decision and later issued recommendations aimed at improving the process.

Berkowitz said delays can create serious hardships for people who are unable to work and are relying on disability benefits.

“Obviously they’re not able to work. They’re not getting the healthcare they need. If somebody’s applying for disability, it’s a bit ironic that what’s being held up is getting the healthcare that they desperately need,” she said.

Among its recommendations, the audit calls for greater transparency in reporting processing times and a review of telework policies to improve recruitment and retention. But auditors noted that many of the factors affecting the system, including hiring authority and access to data, remain under federal control.

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