A recent report of Social Security's Office of Inspector General (OIG) indicates that there may be serious problems with benefits not being paid to claimants for extended periods of time while Social Security investigates whether a representative payee should be appointed to handle the claimants' benefits for them. The report states that:
As of September 2004, we estimate there were approximately 10,780 beneficiaries in suspended status pending the selection of a representative payee (see Appendix C). Based on a review of 539 of these beneficiaries, we estimate that approximately
• $4.6 million in benefits was improperly suspended and should have been paid directly to about 1,700 beneficiaries;
• $5.2 million in benefits payable to about 1,580 beneficiaries was not reinstated, as required, after 1 month; and
• $5.7 million in benefits was withheld from about 2,220 children under age 15 for an average of 252 days.
In addition, SSA could not locate 11 of the 539 beneficiaries who remained in suspended status pending the selection of a representative payee.
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