The Social Security Administration (SSA) finds itself under scrutiny as concerns arise over improper payments and the verification processes for beneficiaries over 100 years old. A recent report from the Office of the Inspector General found that between fiscal years 2015 and 2022, the SSA made approximately $71.8 billion in improper payments out of nearly $8.6 trillion in benefits disbursed. This revelation has prompted discussions on the integrity of the SSA's systems and their capability to prevent fraud.
The SSA utilizes various tools to manage its records, including Numident, an electronic file containing personally identifiable information for every individual with a Social Security number. It is from this file that the Death Master File is created, which is shared with other agencies to help prevent and detect fraud. Despite these mechanisms, the SSA faces a significant challenge with its records of individuals aged 100 or older. As of 2022, around 18.9 million Social Security number holders born in 1920 or earlier reportedly have no death information on their Numident records.
"The reported data are people in our records with a Social Security number who do not have a date of death associated with their record," – Lee Dudek
"These individuals are not necessarily receiving benefits." – Lee Dudek
The accuracy of these records is crucial, as they impact the SSA's ability to manage its trust funds effectively. These funds are running low, with projections indicating that only 83% of both retirement and disability benefits may be payable starting in 2035. The SSA relies heavily on ongoing payroll taxes to pay benefits, making it imperative to ensure the integrity of its payment systems.
In recent years, the SSA has reached out to beneficiaries over 100 years old to verify their identities. This step aims to mitigate potential improper payments, particularly those resulting from deceased beneficiaries. The agency has also been criticized for its handling of payroll data, which showed that from tax years 2016 to 2020, employers and individuals reported approximately $8.5 billion in wages, tips, and self-employment income from Social Security numbers attributed to individuals aged 100 and older. This figure starkly contrasts with Census Bureau estimates, which suggest only about 86,000 individuals in the U.S. were age 100 or older during the review period.
"The payment records that send 70 million checks payments a month aren't driven by the Numident," – Former Social Security Administration employee
"To correlate the two is just manipulative." – Former Social Security Administration employee
The discrepancy raises questions about the SSA's capacity to accurately track and manage its beneficiary records. Critics argue that the reported data may not paint a complete picture of the situation. Alex Nowrasteh highlighted that immigrants tend to consume fewer welfare and entitlement benefits per capita than native-born Americans, partly due to their limited access to benefits upon retirement.
"The amount of fraud is likely miniscule," – Alex Nowrasteh
"Because they're illegal immigrants, they don't have access to the benefits on the back end when they retire," – Alex Nowrasteh
Despite these challenges, the SSA remains committed to addressing potential issues within its operations. Acting Commissioner Lee Dudek emphasized the agency's dedication to transparency and protecting benefits and information.
"Keep your hands off our Social Security," – Lawmakers
However, public discourse remains heated, with various stakeholders expressing their concerns about potential mismanagement. Elon Musk, known for his often-controversial remarks, quipped about the situation, adding a touch of humor to an otherwise serious matter.
"Maybe Twilight is real and there are a lot of vampires collecting Social Security," – Elon Musk