It’s never good when the Inspector General comes knocking.
A new report from the Office of the IG found that the Social Security Administration delivered incorrect claiming information to a number of widows and widowers, resulting in fewer benefits for receipts than the amount to which they were entitled.
The mistakes involved the widows and widowers’ option to delay their retirement benefits, thereby increasing their annual income.
“Based on our random sample of 50 beneficiaries, we estimate 11,123 would have been eligible for a higher monthly benefit amount had they delayed their retirement application until age 70,” the IG’s report stated. “Of these, we estimate SSA underpaid about $131.8 million to 9,224 beneficiaries who were age 70 and older. In addition, we estimate SSA will underpay an additional 1,899 beneficiaries who were under age 70 about $9.8 million, annually, beginning in the year they attain age 70.”
The report added that it found no evidence SSA “had informed claimants of the option to delay their retirement application when they applied for benefits, as required.”
It also found that SSA did not have systems controls in place to alert its employees when they should inform recipients of their option to delay their applications for retirement benefits.
For example, the IG noted in January 2011, an individual applied for retirement and widow’s benefits.
“She was eligible for a $1,403 widow’s and $1,140 retirement monthly benefit. SSA paid a combined widow’s and retirement monthly benefit amount of $1,403, consisting of $263 as a widow and $1,140 as a retiree.”
By limiting the scope of her application, it found, she would have received the widow’s $1,403 monthly benefit and retained the option to apply for higher retirement benefits at a later date. The widow attained age 70 in August 2015. SSA paid her the combined retirement and widows’ benefits totaling $39,708 for the period August 2015 to September 2017.”
Had the widow delayed filing for retirement benefits until age 70, she would have received $52,708 during this period. As a result, SSA underpaid the widow $13,000