The U.S. Treasury Department has recently recovered $31 million in Social Security payments that were mistakenly sent to people who had already passed away.
This effort was part of a five-month pilot program that began after Congress allowed the Treasury to access the Social Security Administration’s (SSA) Complete Death Master File.
This was made possible by an omnibus appropriations bill passed in 2021. The Death Master File is a database containing records of over 142 million deceased individuals, with data going back to 1899.
According to the Treasury, this recovery is just the beginning. They plan to recover over $215 million more from similar mistaken payments.
David Lebryk, the Fiscal Assistant Secretary of the Treasury, said the amount they’ve recovered so far is “just the tip of the iceberg,” showing the potential for further financial recovery.
He also called on Congress to allow full access to the Death Master File. He believes this would help reduce fraud, improve the system’s integrity, and protect taxpayer money.
While payments being made to deceased people are rare, they still happen. This occurs due to administrative mistakes or delays in updating records.
These errors emphasize the need for better data management and faster reporting of deaths to the SSA.
The recent actions taken by the Treasury highlight the importance of addressing these issues to avoid financial losses and ensure Social Security funds are distributed properly.
One of the main reasons these payments are made is due to delays in notifying the SSA about a person’s death.
Family members, healthcare providers, or funeral homes sometimes fail to report deaths quickly.
As a result, payments continue to be made. Another cause is errors in updating the records in the SSA’s Death Master File. This can lead to Social Security benefits being mistakenly sent to deceased individuals.
Additionally, Social Security payments are automatically deposited into bank accounts. If the SSA does not receive a death notification before the payment is processed, the funds are still deposited.
This makes it easier for overpayments to happen. These factors show the need for better communication and quicker updates to prevent such errors from occurring.
Once the SSA identifies that a payment has been made to a deceased person, they take action to recover the funds.
Banks are required to return any payments that were directly deposited into the deceased person’s account. If the money has already been withdrawn, the SSA contacts the deceased’s family or heirs and asks them to return the overpaid amount.
The Treasury’s recent success in recovering $31 million demonstrates the effectiveness of this new pilot program.
It also shows the potential for recovering even more funds.
By focusing on the reasons these overpayments happen and improving data accuracy, both the SSA and Treasury can work together to protect taxpayer money and keep the Social Security program working properly.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
