Apr 18, 2020

Time To Raise The LSDB?

     David Weaver argues in The Hill that the Covid-19 pandemic is good reason to update Social Security’s Lump Sum Death Benefit (LSDB). Weaver thinks it should be increased from the absurdly low amount that is now paid, $255, to something that comes closer to the costs of a funeral, $2,500 and that it should be available not only to surviving spouses, as it mostly is now, but to any survivor handling the disposition of the earthly remains. I don’t think he goes far enough. I think the LSDB should be raised to $5,000 or even $10,000. There’s little point in the current LSDB. It probably costs more to administer than is paid out as benefits.

10 comments:

Anonymous said...

Do you advocate lowering benefits a small percentage to pay for this increase? A very minor uptick in the death rate and you want to make radical changes with no provision on how to pay for it.

It used to be paid out to just about anyone, including funeral homes, at one time.

Anonymous said...

Eliminate this completely if you are looking for some savings on something with limited impact. We need to take better care of people while they are alive.

Anonymous said...

Truth of the matter is that the only thing protecting the LSDP as it exists is 3rd rail politics. The agency would have eliminated it years ago (and has had plans to do so multiple times) but has never had leadership with the will to follow through on the political side to get it done.

Anonymous said...


COVID19 is already costing SSA millions of dollars. We have instructions not to process most adverse actions which would cause overpayments, , to put them on hold for 6 months. It will take years to straighten out those cases and much of the deferred money will never be collected.
SSA could not afford to increase the LSDP now, certainly not to increase it by many multiples of what it is.

Anonymous said...

It should be raised and reauthorize paying to funeral homes, which will save some $ for the times people hide the death from SSA.

Anonymous said...

Eliminating the LSDP would lead to fewer reports of death from the public and an increase in payments to deceased individuals.

Anonymous said...

Death is usually reported by the funeral homes, so no real risk there. Just get rid of it.

Anonymous said...

7:24am is right, when funeral homes could get the LSDP they filed a report of death with SSA. Now, they have no reason to report deaths to SSA. That's why there is so much fraud from relatives not reporting deaths to SSA and continuing to collect the deceased' SSA. To extend the LSDP to funeral homes, as it used to be, would save much more than SSA would pay out. The LSDP of $255 originally was supposed to be equivalent to about 3 months' social security benefits. So $2,500 would be in line with that.

Anonymous said...

$255 is a small amount to pay in order to get death information. How many overpayments have occurred because death was not reported?

But why should Social Security add payment of funeral costs to its already unsustainable payout of benefits? You want it to go insolvent more quickly? Or raise taxes?

And why don't people buy life insurance? Why is this the government's responsibility?

Anonymous said...

Get rid of it. Most death reports are electronic now.