Social Security Watchdog Finds $291 Million in Unpaid Disability Benefits

A recent Social Security Administration (SSA) audit uncovered an estimated $291 million in unpaid Supplemental Security Income (SSI) disability benefits, according to a report by the SSA Office of the Inspector General (OIG). The OIG found that SSA employees often failed to follow the proper procedures to address underpayments recorded on recipients' files.

The $291 million figure represents a statistical sample of unpaid underpayments, meaning a single recipient could account for more than one payment. SSI provides monthly payments to individuals with limited income and resources who are disabled, blind, or aged 65 and older. The OIG identified approximately 2.5 million SSI underpayments on SSA records as of September 2024, with about 1.14 million related to living recipients and roughly 1.37 million to deceased recipients.

Of the 160 sampled underpayments, SSA employees failed to take required steps to pay 69 of them. Some unresolved underpayments dated back 18 to 22 years. In one case, a recipient was underpaid by $1,549, but the SSA terminated their SSI record without releasing the money. The OIG highlighted several reasons for the underpayments, including limited system notifications, manual processing requirements for terminated or deceased recipients, and changes in eligibility and payment amounts due to recipients' income, resources, and living arrangements.

The OIG recommended that SSA address the individual underpayments and identify the causes of employee errors, as well as implement corrective measures to ensure accurate records and proper documentation of required reviews. The SSA acknowledged all three recommendations. SSA officials cited limited system notifications and challenges with resolving underpayments attached to terminated or deceased recipients as factors contributing to the underpayments.