The Social Security Administration (SSA) is currently grappling with a “record-breaking backlog” of cases, leading to approximately $1.1 billion in improper payments. This alarming statistic comes from a recent report by the SSA Office of the Inspector General (OIG).
The OIG, dedicated to enhancing the efficiency and effectiveness of the SSA’s programs, delved into both incorrect payments and unresolved pending actions at processing centers between fiscal years 2018 and 2023.
Social Security overpayment Issues and Delayed Actions
As underpayments or overpayments lingered without correction, the errors compounded. The OIG found that the average processing time for an improper payment in their sample was a staggering 698 days.
“Customer satisfaction has been an ongoing concern for SSA. This report continues to highlight the urgency for SSA to reach its pending actions performance goal and to ensure beneficiaries receive their proper payments as promptly as possible,” stated Michelle Anderson, Assistant Inspector General for Audit and Acting Inspector General for SSA.
- Record-breaking backlog of cases at the SSA
- Approximately $1.1 billion in improper payments
- Average processing time for improper payments: 698 days
- Unresolved pending actions between 2018 and 2023
As the SSA continues to navigate these challenges, the focus remains on improving efficiency and ensuring accurate and timely payments for all beneficiaries.
The Social Security Administration (SSA) has been grappling with a significant backlog, primarily due to unexpected staff reductions, increased workloads, and reduced overtime funding at processing centers.
In one notable instance, the Office of the Inspector General (OIG) discovered that the SSA overpaid a disability beneficiary by approximately $62,000. The SSA became aware of this error in June 2021, after the beneficiary had already received an extra $9,000 over a four-month period. However, the administration didn’t take steps to recover the overpayment until May 2023. By that time, the beneficiary had received an additional $53,000.
Performance Goals vs. Growing Backlog
Despite meeting its performance goals in four of the past six years, the SSA’s backlog of pending actions at processing centers has only grown. The backlog increased from 3.2 million in 2018 to an alarming 4.6 million in 2023. As this backlog expanded, the time required to resolve pending cases also lengthened, which in turn, escalated the total value of unresolved payments.
Key Factors Contributing to the Backlog
- Unexpected Staff Reductions: Sudden decreases in staff numbers have impacted processing efficiency.
- Heavier Workloads: The increased volume of cases has strained existing resources.
- Less Overtime Funding: Reduced budget for overtime work has slowed down the resolution process.
The growing backlog at the SSA highlights the urgent need for strategic changes to improve efficiency and reduce delays in processing cases. Addressing these issues is critical to ensuring timely and accurate payments for all beneficiaries.
The Office of the Inspector General (OIG) has revealed some startling figures about the Social Security Administration (SSA). If the SSA had addressed the backlog of pending actions at the earliest possible instance, there would have been around $534 million in improper payments affecting 528,000 beneficiaries. However, due to delays—many lasting over a year—this amount surged to an estimated $1.1 billion, according to the report.
SSA’s Agreed Recommendations
In response to these findings, the SSA has agreed to implement the following recommendations made by the OIG, as stated by Anderson:
- Develop a workload and staffing plan: This plan aims to help the SSA reduce the backlog from year to year.
- Create performance measures with goals: These measures are designed to reduce the number of pending actions at processing centers.
- Establish timeframe targets: These targets will help processing centers keep improper payments from growing and reduce the burden on beneficiaries.
Changes in Overpayment Recovery
In March of 2024, the SSA announced a significant change in its recovery process for overpayments. To ease the financial hardship on beneficiaries, the SSA has reduced the default monthly withholding rate to ten percent (or $10, whichever is greater) from the previous rate of 100 percent.
