Home Business New Social Security director disputes allegations of deceased individuals receiving benefits.

New Social Security director disputes allegations of deceased individuals receiving benefits.

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WASHINGTON — The newly appointed head of the Social Security Administration (SSA) clarified on Wednesday that reports suggesting that a vast number of deceased centenarians are still receiving benefits are inaccurate. Lee Dudek, who recently took over as acting SSA commissioner, addressed the misinformation after comments made by former President Donald Trump and billionaire Elon Musk, who claimed via social media and public statements that many deceased individuals over the age of 100 are collecting Social Security payments.

Trump during a press conference on Tuesday in Florida stated, “We have millions and millions of people over 100 years old” receiving benefits, adding that these payments are fraudulent. He also made an extreme claim that the system includes a person listed as 360 years old. Musk, whose efforts focus on eliminating government inefficiencies and fraud, echoed similar sentiments, questioning how so many individuals who could supposedly predate the United States itself could be receiving payments.

However, it is important to clarify the context of these statements. Several factors have contributed to the misunderstanding regarding SSA data. Historically, the agency has operated using a COBOL-based software system with limitations, particularly in how it handles birthdates. Entries lacking complete birthdate information can default to incorrect years, creating the appearance of unrealistic ages in the records. Reports have also indicated that SSA has not yet streamlined its processes to accurately mark deceased individuals, particularly affecting the records of people born in 1920 or earlier.

Despite the large numbers cited, the SSA has determined that these individuals are not necessarily receiving any benefits. Recent audits highlighted that nearly none of those mentioned in the reports are active beneficiaries. Additionally, the agency has policies in place that automatically terminate payments for individuals who are over 115 years old.

In response to the rampant erroneous claims, Dudek expressed the agency’s commitment to transparency in a recent news release, noting that the erroneous data stems from individuals recorded without associated death dates. “These individuals are not necessarily receiving benefits,” he confirmed. Furthermore, he emphasized confidence in the agency’s ability to serve the American public effectively.

Addressing the broader issue of improper payments, a report from the SSA’s inspector general pointed out that from 2015 to 2022, almost $8.6 trillion was paid out in benefits, with only a small fraction, approximately $71.8 billion, classified as improper payments. It was revealed that the majority of erroneous payments were actually overpayments to living beneficiaries, rather than deceased individuals.

Additionally, the U.S. Treasury recently reclaimed over $31 million from various federal payments made to deceased individuals, which one former official referred to as just the “tip of the iceberg.” This recovery stemmed from a pilot program that allowed the Treasury temporary access to the SSA’s comprehensive death records, which could potentially recover over $215 million during this access period.

Experts have weighed in on the dialogue surrounding Social Security payments. Some, like Chuck Blahous, appreciate the intention to root out fraud but caution that widespread inaccuracies may not be the primary financial concern facing the Social Security System, suggesting that larger issues exist within other federal programs, such as Medicaid.

Sita Nataraj Slavov warned that the messages being portrayed might oversimplify the complex financial issues within Social Security, potentially misleading people into thinking easy solutions exist without acknowledging the need for significant policy adjustments.

Responding to criticisms, White House spokesperson Karoline Leavitt pointed out the importance of addressing improper payments and reaffirmed the SSA’s commitment to identifying waste and fraud, reiterating the significance of protecting taxpayer interests.