WSPA in Greenville-Spartanburg, SC is running a story about a man who was approved for Supplemental Security Income but who did not receive his back benefits for more than a year. Social Security blamed the delay on "a rare computer error" but Social Security's Inspector General testified yesterday before a Congressional committee that there were a number of other people in the same boat. My experience is that delays of this sort are vastly more common than what the Inspector General found.
If a back check is over $5,000, it's supposed to be paid in three installments. Recently, the law was changed so that the first two installments are small (one month's benefits, I think) with the third installment (due a year after the award) being the rest of the award. It's possible attorney fees take the first two installments, so that the recipient doesn't see anything for a year.
ReplyDeleteAnon 1 is only partially correct. There is an installment process for SSI benefits but the attorney fee is paid outside the installment process. Installments and dedicated accounts started in 1996 (PL 104) after the Zebley debacle in which parents of disabled children were actually encouraged to quickly spend their lump sums in order to continue to qualify. In the first version of installment regulation, the first installment was 12 times the federal benefit rate plus state supp amount; second installment the same and the last installment the balance. Each installment paid six months apart. A few years ago, the amount of the first installment was reduced from three times the federal benefit rate plus state supp, second installment the same and then the balance paid in the last installment.
ReplyDeleteThere are exceptions to installment payments like prior debt for housing or to purchase a home or no future SSI entitlement.
I find the installment process a perversion of a Big Brother complex. It's either that or the federal government wants to hold on to the SSI recipient's money as long as possible so it can be spent elsewhere. The first version made a little bit more sense than the new version. In California, 3 months of benefits is around $25k, 12 months around $10k. So if retroactive benefits (after attorney fee) are $22,000, the money is sent $2500 now; $2500 in six months and $15,000 in 12 months. If the SSI recipient needs help making responsible decisions about handling money, why does the agency believe they can do a better job in 12 months than they can do now?
As a long time SSI CR, I find the current installment process unconscionable. The claimants have been without funds for a long time and the government doles it out in pieces? WHY?? Claimants come in and beg for their money and we tell them they don't meet the rules. I'd rather be spending time adjudicating claimants who are still waiting for payment. If I can find a half-ass reason for exeception to installments, I use it.
ig needs to audit the accuracy rate of the manual actions taken by ba's and ca's in odio. they would probably recommend shutting the place down.
ReplyDeleteThe SSI installment payments were part of the Medicare Modernization Act, implemented to help fund the new Part D program. It is all about holding onto the money (which comes from general revenue) for as long as possible.
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