Social Security Publishes Proposed Rule for Payroll Information Exchange to Reduce Improper Payments
Reading Time: 2 MinutesLast Updated: February 15, 2024
Today, the Social Security Administration published a proposed rule, “Use of Electronic Payroll Data to Improve Program Administration,” describing the agency’s plans for accessing and using information from payroll data providers to reduce improper payments, including overpayments, which improves service to customers.
Unreported, late reported, and incorrectly reported earnings are often a cause of overpayments for people who receive Social Security Disability Insurance (SSDI) benefits and Supplemental Security Income (SSI) payments. When a person has been overpaid, the law requires the agency to ask for repayment, which can create financial difficulties for beneficiaries.
“Social Security is taking a critically important step to reduce improper payments, including overpayments, by ensuring we receive timely and accurate wage data. These automated payroll information exchanges will address the inefficiencies associated with self-reporting and manual verification by introducing a more streamlined approach,” said Martin O’Malley, Commissioner of Social Security. “These exchanges will prevent inequities caused by improper payments by enabling Social Security employees to adjust SSI payments before they are issued and help us more efficiently administer SSDI.”
Social Security is working to reduce wage-related improper payments by using its legal authority to establish information exchanges with payroll data providers. These exchanges will help ensure the agency receives timely and accurate wage data. These exchanges and the agency’s planned business process is called the Payroll Information Exchange (PIE).
PIE will help reduce manual reporting errors as well as the reporting burden for individuals who authorize Social Security to obtain their wage and employment information through these information exchanges and work for employers whose payroll data is available through the exchange. PIE will also help to more quickly identify wages that often go unreported or undetected and which can lead to improper payments.
People may read the notice of proposed rulemaking (NPRM) here. Public comment is an important part of this process and people may provide comments on the NPRM by April 15, 2024.
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Kathy B.
Settlement Comes After Class Action Lawsuit Filed by NYLAG, Justice in Aging, and Arnold & Porter Alleged that Pandemic-Related Administrative Errors and Shutdowns led the Social Security Administration to Charge LowIncome Recipients with Overpayments Millions of lowincome older adults and people with disabilities who receive Supplemental Security Income (SSI) and who had their benefits reduced or discontinued during the pandemic are entitled to millions in overpayment waivers and other relief as a result of a settlement finally approved on November 20, 2023 in the United States District Court for the Eastern District of New York in a nationwide class action lawsuit filed by New York Legal Assistance Group and Arnold & Porter.
Administrative shutdowns and other factors during the height of the COVID-19 pandemic shut out millions of people with low incomes from accessing the Social Security Administration (SSA) during a time of nationwide economic hardship. SSA reduced or discontinued millions of individuals SSI benefits, deepening stress and financial strain for those most harmed by the pandemic.
Specifically, in March 2020, the Social Security Administration (SSA) closed its field offices in response to the COVID-19 pandemic and halted its manual processes for reducing or discontinuing benefits for SSI recipients. As a result, many recipients struggled to report changes to their finances that could impact the amount of benefits they received, and others had bigger overpayments accrue due to this delay in processing.such as eighty-three-year-old plaintiff B. Rodnyanskya, were unable to withdraw funds from their bank accounts due to health concerns and stay-at-home orders during the pandemic, leading them to accrue funds that affected their eligibility.
In September 2020, even as SSA offices remained closed and inaccessible to recipients, the agency resumed assessing overpayments against SSI recipients meaning that SSA found someone to be ineligible for SSI in one or more of those months and reducing their benefits going forward. Thousands of people who relied on SSI benefits to meet their basic needs lost some or all of their limited income. In states that did not have Medicaid continued coverage during the pandemic, many also lost access to health care in the midst of this deadly health crisis because SSI eligibility is tied to Medicaid eligibility. Settlement will provide automatic remedies to nearly a quarter million SSI recipients, who will have back benefits credited to their accounts without having to take any action. Settlement does what SSA should have done in the first place: make sure that SSI recipients are not penalized or denied benefits essential for their survival, as the result of circumstances that were outside of their control, said M. Spadafore, director of the Disability Advocacy Project at the New York Legal Assistance Group.Settlement provides crucial relief by putting money back into the pockets of SSI recipients who are still recovering from the tremendous challenges they faced during a global pandemic. Settlement will also provide needed relief to nearly 2 million more recipients by clarifying the standards by which they can request that overpayments that arose during the pandemic be forgiven. Settlement agreement is important recognition of the tremendous hardship SSI recipients faced during the early days of the pandemic, and in managing COVID throughout the public health emergency, said R. Bailey, litigation director at Justice in Aging. Overpayments incurred during this time should be reviewed in context with SSA offices closed many government offices closed it was virtually impossible to conduct business with the Agency. Settlement is meaningful for the millions of older adults and people with disabilities whose already vulnerable state was amplified when the Social Security Administration denied them an important safety net during one of the most challenging times in human history. Thus incredibly pleased that this case has been settled and feel blessed to have been able to support the men and women whose income healthcare and lives were disrupted during the pandemic said Arnold & Porter partner Sheila Boston who served as pro bono counsel. SSI is the only option I have to provide for myself and my children. When I stopped receiving benefits I didn’t know how I would pay my bills buy food and make ends meet said T. Adams one of the plaintiffs in the case. It was very stressful especially at the start of the pandemic. Im very happy that with this settlement SSA is now aware of its mistakes and in the future no one else will have to go through what I went through. Justice in Aging, The New York Legal Assistance Group, and the law firm Arnold & Porter filed this nationwide class action lawsuit on behalf of five SSI recipients challenging these unlawful practices. The certified class includes all individuals with an SSI overpayment incurred between March 2020 and April 2023
Denise S.
I’m going to get my backpay back
Laurie S.
Fraudently oppressive activities funded by the SSA. Why allow it?
Listen carefully, when you have a problem that only money can resolve, and they give you a problem that only money can resolve, they benefit from you having a problem that only money can resolve, SO THEY BLOCK ALL TYPES OF INCOME SO YOU CAN’T RESOLVE THAT PROBLEM AND THEY CAN BENEFIT SINCE IT’S THEIR JOB TO GIVE YOU THAT PROBLEM. Remember these individuals don’t think like everyday Americans, because they’re not, these individuals are USA contracted allies from some heinous countries in Eurasia and Europe-South Afrikaner Boers, they scam the American government. That’s what happens when you put your trust in people that look like you simply because they’re white and their skin color looks the same.. but those Eurasians and Europeans-South Afrikaner Boers never liked or respected the USA and are never going to. They ransack every government agency in the USA. Easy… Give them a problem only money can solve… And block the money from coming in, so that way they have a forever contract. Do you get it?
Why is the SSA doing it and allowing it?
Jami
Since it’s such an antiquated system….Commissioner stated 90% of IT was going to COBOL system. Antiquated system must mean easy to knock off. I watched as relative was taken to the cleaners with a so-called Overpayment.
SSA couldn’t substantiate it, there’s nothing to follow now or at any time—on what basis? If thousands of people got the stimulus and lo and behold…they have money under reported.
Would be bait and switch in any business transaction. Now you see it, now you don’t.
I have long suspected theft. Overpayment balance of $3000 draws down to $800….but oh, it jumps up to over $4000. Whackamole.
It’s a matter of time until people get an attorney. Never interested before…things have changed. It will be a money maker for attorneys now.
Pay it all back.
Lots of affected people dead and gone.
Lots of people lost to COVID.
Pay it back, it’s cheaper that way.
Laurie F.
listen carefully, when you have a problem that only money can resolve, and they give you a problem that only money can resolve, they benefit from you having a problem that only money can resolve, SO THEY BLOCK ALL TYPES OF INCOME SO YOU CAN’T RESOLVE THAT PROBLEM AND THEY CAN BENEFIT SINCE IT’S THEIR JOB TO GIVE YOU THAT PROBLEM. Remember these individuals don’t think like everyday Americans, because they’re not, these individuals are USA contracted allies from some heinous countries in Eurasia and Europe-South Afrikaner Boers, they scam the American government. That’s what happens when you put your trust in people that look like you simply because they’re white and their skin color looks the same.. but those Eurasians and Europeans-South Afrikaner Boers never liked or respected the USA and are never going to. They ransack every government agency in the USA. Easy… Give them a problem only money can solve… And block the money from coming in, so that way they have a forever contract. Do you get it?
That’s exactly what the social security administration is doing.
Candace H.
Overpayments are being pursued by Individuals claiming to be with the social security administration and are threatening individuals, companies, employers not to hire or do business with the Individuals the social security administration is pursuing with the alleged secretive debt they’re not suppose to know exists. The social security administration debt collectors tell neighbors, family, acquaintances and anyone their targeted Individual comes across, that they’re intentionally causing poverty because the individual is in a POVERTY PROGRAM which belongs to the SSA. They laugh and smile about the oppression and despair they are causing. They tell people that the Individual has “debt” that they are “not suppose to know about” and the community tells them, then why are y’all after them? If they are not allowed to work or know that a debt exist? And they simply smile and mention all the money they’re making while the government is WASTING money.
Please REMOVE AND CLEAR THE 2020 OVERPAYMENTS FROM THE “PAYMENT CENTER” OF NON RECIPIENTS. IT’S AFFECTING THE NON RECIPIENTS DUE TO TECHNICALLY STILL BEING ENLISTED AND ENROLLED AND IT DOES AFFECT EMPLOYMENT ELIGIBILITY AS THE SSA OVERSEERS AND AFFILIATES BLOCK EMPLOYMENT SINCE THEY ASSUME YOU’RE ALREADY RECEIVING INCOME TO LIVE ON.
social security administration, the Courts and Congress agreed to REMOVE and clear the 2020 Overpayment payment center cases. please start removing the non recipients FIRST.
Karen E.
When someone or an individual has an Overpayment or debt, you should tell them, be clear, transparent and direct about the debt. Not like the SSA is doing, they hide the fact the debt actually exists and spins into conspiracy theories of why you’re being pursued and oppressed by having income BLOCKED from coming your way to pay your alleged unknown debt. When someone has a debt you are not supposed to block income from them, so that way they can pay that debt that they were told they have.
Overpayments are being pursued by Individuals claiming to be with the social security administration and are threatening individuals, companies, employers not to hire or do business with the Individuals the social security administration is pursuing with the alleged secretive debt they’re not suppose to know exists. The social security administration debt collectors tell neighbors, family, acquaintances and anyone their targeted Individual comes across, that they’re intentionally causing poverty because the individual is in a POVERTY PROGRAM which belongs to the SSA. They laugh and smile about the oppression and despair they are causing. They tell people that the Individual has “debt” that they are “not suppose to know about” and the community tells them, then why are y’all after them? If they are not allowed to work or know that a debt exist? And they simply smile and mention all the money they’re making while the government is WASTING money. At least they are clear, direct and transparent about RANSACKING the SSA by oppressing ex recipients and others.
Beth H.
As AGREED to do, When is the social security administration, the Courts and Congress going to start REMOVING and CLEARING the erroneous alleged 2020 Overpayment Payment Center Cases? Please start removing and clearing up the NON RECIPIENTS first please. 2020 Overpayment Payment Center Cases need to be REMOVED AND CLEARED FROM WITHIN the SYSTEM soon.
Rod P.
From what I understand, there is a huge amount of overpayments from internal errors. I base this on the 60 Minutes episode. One person received payments for 4 people, so obviously your internal controls are lacking, internal controls would be the easiest things to fix since you have that information (4 payments to one address/SSN should be flagged). Secondly, you cannot even get a Feedback Form working, looks like it lasted 9 months. Your phone system hangs up on people (6 times today for me) and when you finally reach someone they cannot answer because the system passed the call to another office who can only see their own stuff. A National Organization and the Call Center folks can only see their local office? Sounds more Mom & Pop to me. All of these are very inefficient processes which add to your backlog. I think you can fix plenty of things internally.
Jami
Look at any SSA form….shoptalk, too wordy, hard to follow, too little room in each field for answers. Two-thirds is internal
word gunk that has nothing to do with the User or the Users problem. In any given hour, how many people are in the phone queue who simply want to know if SSA got the request.
Mail out a courtesy postcard. Backlog, understaffed, pandemic…it’s over. No more excuses. Hire SSI people to create mail responses, re-design forms.
Call in, go to field office…..my experiences much different. The representative takes the information and passes it on. Nobody fixes anything.
S.D.
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Alyssa M.
When will the social security administration, the Courts and Congress start removing and CLEARING those 2020 Overpayment Payment Center Cases from the system as they AGREED to do? Please FIRST start with the NON RECIPIENTS, by removing and CLEARING those non recipients first.