Breaking: New SSA scandal – $1 billion lost without a trail

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Social Security gets smacked with another huge scandal in the face and it portrays the huge inability of the Obama administration.

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As reported by the Washington Free Beacon, a new analysis recently discovered that under former president Obama’s leadership, the Social Security Administration paid $1 billion in benefits to individuals who didn’t have a Social Security Number. This glitch was discovered by the SSA inspector general, who narrowed down some mistakes in the government’s documentation for representative payees, also known as individuals who receive retirement or disability payments on behalf of another person who is incapable of managing the benefits themselves.

This investigation has found thousands of cases in which there was no SSN on file. During this past decade, the agency paid $1 billion to 22,426 representative payees who “did not have an SSN, and SSA had not followed its policy to retain the paper application.”

“Furthermore, unless it takes corrective action, we estimate SSA will pay about $182.5 million in benefits, annually, to representative payees who do not have an SSN or paper application supporting their selection,” the inspector general added.

Furthermore, the inspector general discovered that the SSA compensated $853.1 million in benefits since 2004 to individuals who had been terminated as representative payees by the agency.

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“Representative payees play a significant role in many beneficiaries’ lives,” stated the SSA. “We have approximately 5.7 million representative payees managing annual benefits for approximately 8 million beneficiaries. When appointing representative payees, we adhere to guidance in the Social Security Act (the Act).”

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“Specific to this audit, the Act permits us to appoint, in certain circumstances, an undocumented alien, or applicant who resides outside the United States without a Social Security number (SSN) to serve as payee,” the agency said. “Specifically, the Act states we should verify a person’s SSN (or employer identification number) in our investigation of the payee applicant. However, the Act does not state that the applicant must have an SSN to serve as a payee.”

 

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