Social Security makes $1.3 billion in overpayments

[Girl from Celebes 588]

NEW YORK (CNNMoney)

The Social Security Administration has paid an estimated $1.3 billion in disability insurance payments to thousands of people who weren't eligible for the benefits, a government watchdog report finds.

Since the beginning of the year, about 36,000 people have received "potential overpayments" from the agency, the Government Accountability Office reported.

Disability insurance benefits are generally available to Americans who have been determined to be physically or mentally impaired by a long-term condition that prevents them from being able to work.

To become eligible, you must go through a five-month waiting period during which your earnings must not exceed $1,000 during any given month. But the GAO found that thousands of the people who were receiving benefits had incomes exceeding this limit.

Related: The Social Security mistake that costs retirees thousands

One recipient, a physician, raked in $90,000 in overpayments over three years, even though he had earnings of as much as $22,000 per month during the five-month waiting period. Two other people have received overpayments of more than $20,000 so far this year, despite the fact they held jobs that paid substantial income during the waiting period.

Little help for the long-term unemployed

Once you qualify for disability benefits, you're able to enter a trial work period, where you can return to work and continue to receive benefits -- but only for up to nine months. The GAO found, however, that some people were receiving benefits long after that nine-month trial period had ended.

In one case, a woman was given $74,000 in payments after she had been working for more than nine months, and a man was paid $57,000 in benefits following the nine-month grace period.

Related: Federal disability trust fund on the brink

While the 36,000 people the GAO determined to have received overpayments represents less than 1% of all disability insurance recipients, the watchdog said the true number of improper payments could be higher. Only the Social Security Administration can determine precise numbers by conducting detailed investigations into specific cases.

The Social Security Administration said its accuracy rate for paying disability benefits exceeds 99%, but it will look into any potential overpayments.

"While our payment accuracy rates are very high, we recognize that even small payment errors cost taxpayers," a spokesperson said. "We are planning to do an investigation and we will recoup any improper payments from beneficiaries. It is too soon to tell what caused these overpayments, but if we determine that fraud is involved, we will refer these cases to our Office of the Inspector General for investigation."

source: CNN

[I AM NOT THAT GUY 5,715]

Less than a 1% error rate - not bad for government specs.

[RGinWA 816]

My ex is soaking up some of that dough. Supposedly her addiction caused her to get PTSD and at 49 she can no longer work. Which is a crock of freaking s#it.

These rules need to be changed.

[Harpa Timsah 13,258]

What is that photo about? Those people are waiting for a bus, not waiting for unemployment. I walk by that spot often.

They just wanted a photo of people waiting in line?

[Girl from Celebes 588]

What is that photo about? Those people are waiting for a bus, not waiting for unemployment. I walk by that spot often.

They just wanted a photo of people waiting in line?

The editor must have a reason why "the picture" is chosen.

[Harpa Timsah 13,258]

The editor must have a reason why "the picture" is chosen.

I think the reason is "find a photo of people standing in line! No matter what for! Make people think it's for unemployment when it's not! Make people assume all these people are on the dole!"

[Girl from Celebes 588]

I think the reason is "find a photo of people standing in line! No matter what for! Make people think it's for unemployment when it's not! Make people assume all these people are on the dole!"

I agree. I find really disturbing that many journalists have less competency in these days. If you did not tell, people would assume these people are waiting for jobs not for a bus.

Edited September 14, 2013 by Girl from Celebes

[Darnell 8,479]

I think those folk are in line, waiting to buy soup, from the soup nazi.

[RGinWA 816]

I think those folk are in line, waiting to buy soup, from the soup nazi.

No soup for you!

[Harpa Timsah 13,258]

I think those folk are in line, waiting to buy soup, from the soup nazi.

Actually, it's right around the corner from K-town (Korea-town). Maybe they are waiting for some bim bim bap. Maybe they are waiting to do some karaoke! Or maybe they are waiting for a custard bun or something fresh from the bakery!

( I know they are waiting for a bus, but we can dream!)

[The Nature Boy 4,224]

My ex is soaking up some of that dough. Supposedly her addiction caused her to get PTSD and at 49 she can no longer work. Which is a crock of freaking s#it.

These rules need to be changed.

I think I might try the PTSD route.

Not sure if i want to try the VA or the SSA

I think my VJ addiction has ruined my life

The SSA has become another free money program

[RGinWA 816]

I think I might try the PTSD route.

Not sure if i want to try the VA or the SSA

I think my VJ addiction has ruined my life

The SSA has become another free money program

I'm sure you qualify.

My ex blew through $87,000 in cash in 6 months (Her retirement) and then claimed poverty at the custody hearing. Before she stopped going to work she made 62K a year and was ordered to pay a whopping $100 a month for both kids. Of course I've never seen a dime. But the kids are great so I can't complain.

PTSD is all the rage now...and the soldiers who really have it get screwed. That's America...

[The Nature Boy 4,224]

I'm sure you qualify.

My ex blew through $87,000 in cash in 6 months (Her retirement) and then claimed poverty at the custody hearing. Before she stopped going to work she made 62K a year and was ordered to pay a whopping $100 a month for both kids. Of course I've never seen a dime. But the kids are great so I can't complain.

PTSD is all the rage now...and the soldiers who really have it get screwed. That's America...

Of course I was joking..I did have a veterans advocate try to urge me to seek some service connected..I said for what, gaining 10lbs eating MRE's in the Calif desert during desert storm.LOL