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MILLION WIDOW MARCH
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MILLION WIDOW MARCH

Mwm hat

Whistleblower of the year pic **************************

Hi, I’m John McAdams, retired Social Security Administration (SSA) Claims Specialist.  In my 20 year career with SSA I came across three cases where SSA accidentally cheated large classes of claimants.  After failing to get any resolution with SSA management, I brought each case to the Office of Special Counsel (OSC).  They investigated each case and agreed with me.  They in turn sent each case to the Office of the Inspector General (OIG).  OIG did full audits that verified the extent of problems.  They also instructed SSA to remedy the situations.  SSA did not.

Case I:  Simultaneously Dually Entitled Widows

SYNOPSIS:  

Claimants were erroneously signed up for both Retirement and Survivor (“Widow’s”) benefits.  This gave them ZERO additional benefit instead of just entitling them to only the Survivor benefit.  Worse, this precludes them from earning Delayed Retirement Credits (DRCs) which may have enabled them to switch to a higher benefit on their own record at a later date.  OIG estimated some 11,000+ victims were cheated out of upwards of $130,000,000 ($130M).  OIG recommended that SSA remedy the situation for all the victims.  SSA refused to take any action.

DISCUSSIONS:

Office of the Inspector General Report (2/2018):

Higher Benefits for Dually Entitled Widow(er)s Had They Delayed Applying for Retirement Benefits (ssa.gov)

“… We estimate that 11,123 beneficiaries would have been eligible for a higher monthly benefit amount had they delayed their retirement application until age 70.  Of these, we estimate SSA underpaid about $131.8 million to 9,224 beneficiaries who were age 70 and older.  In addition, we estimate SSA will underpay an additional 1,899 beneficiaries who were under age 70 about $9.8 million, annually, beginning in the year they attain age 70.”

PBS News Hour:

Social Security whistleblower claims widows losing thousands due to agency mistakes | PBS News

“The problem: A person files for benefits. The claims taker accidentally signs them up for both WIB (survivor benefits) and RIB (retirement benefits). For most people it doesn’t have any effect – their PIA (primary insurance amount) was so low that their RIB would never have grown past their WIB. But for an unknown number of widows, having lost the ability to file for DRC’s (Delayed Retirement Credits), has already cost them tens of thousands of dollars — and will continue to cost them hundreds of dollars per month for the rest of their lives.”

Case discussed by Laurence Kotlikoff of Economics Matters:

Is Social Security the Biggest Perpetrator of Social Security Fraud? (substack.com)

“Social Security has, to date, done nothing to compensate its victims, let alone stop its practice.”

Case discussed with Sharyl Attkisson:

Shorting Seniors | Full Measure

“... almost a decade ago, McAdams discovered some of his colleagues at the Social Security Administration doing something that hurts their customers: dual-enrolling widows for survivor benefits and their own Social Security, which froze the value of their Social Security.

Unbelievably, says [Special Counsel Henry] Kerner, the Social Security Administration has now closed the case without paying any of the widows…. that was pretty disappointing, because that's approximately 13,500 people that could be entitled to damages up to $140 million, and there had been a commitment that they would look into those cases, and then we learned that actually, they're not going to revisit those beneficiaries.”

ACTUAL EXAMPLE:

Note:

        MBA = Monthly Benefit Amount

        RIB = Retirement Benefit Amount

        WIB = Survivor Benefit Amount

Claimant was erroneously simultaneously entitled to both Retirement (RIB)

and Survivor (WIB) benefits:

Start        RIB        WIB        Total MBA

0210        600        192        793

1210        600        192        793

1211        622        199        821

1212        632        202        835

1213        642        206        848

1214        652        209        862

1215        652        209        862

1216        654        210        864

0117        675        189        864

1217        688        193        882

0118        691        191        882

1218        710        196        906

1219        721        199        921

1220        731        202        933

1221        774        214        988

1222        841        232        1074

1223        868        240        1108

1224        890        246        1136

If instead she had first received just survivor benefits, THE TOTAL PAID WOULD HAVE BEEN EXACTLY THE SAME!

        Start         MBA

        0210        793

        1211        821

        1212        835

        1213        848

        1214        862

        1216        864

Then, at age 70 she could have switched to her own retirement benefits, with Delayed Retirement Credits (DRCs) and received:

        Start         MBA

        0117        1106

        1217        1128

        0118        1132

        1218        1164

        1219        1182

        1220        1198

        1221        1268

        1222        1379

        1223        1423

        1224        1458

She was cheated out of $26,510 *PLUS* $644/month for the rest of her life!

Case II:  Benefits Payable to Widow(er)s Subject to Government Pension Offset Had They Delayed Their Application

SYNOPSIS:  

Claimants were erroneously signed up for Survivor (“Widow’s”) benefits with a Month of Entitlement (MOE) for which no cash benefits were payable because of their Government Pension Offset (GPO).  Had they been advised to wait and apply later (but certainly at or before their Full Retirement Age (FRA)), some would have eventually been eligible for cash benefits.

OIG estimated almost 2,000 victims were cheated out of $12,800,000 ($12.8M).  OIG recommended that SSA remedy the situation for all the victims.  SSA’s action was totally unacceptable (See Problem below).

DISCUSSIONS:

Office of the Inspector General Report (11/2020):

Benefits Payable to Widow(er)s Subject to Government Pension Offset Had They Delayed Their Application | Office of the Inspector General (ssa.gov)

OIG Conclusion:  Wwe estimate 1,938 widow(er)s would have been eligible for approximately $12.8 million had they delayed their widow(er)’s application up to FRA. We also estimate 1,615 widow(er)s could receive approximately $42.6 million in additional benefits over their remaining life expectancies.  

OIG Recommendation: Evaluate the results for the 18 beneficiaries in our sample and take appropriate action to notify the remaining population of beneficiaries of their option to withdraw their application and reapply for widow(er)’s benefits.

Problem:  SSA’s decision to allow victims to withdraw their original claim and re-apply, but only grant them 6 months of retroactivity (despite the fact that some have been cheated out of DECADES of benefits) is totally inadequate.

To withdraw, a claimant would need to pay back all the less-than-they-should-have-been benefits they’ve received over the years or even DECADES.  Then they could re-apply but SSA will only grant them six months of retroactivity.  This means it will take years if not DECADES to just break even.  And they’ll forever have been cheated out of all the benefits they should have gotten between the original month of entitlement (MOE) and the new MOE.

ACTUAL EXAMPLE:

Note:

        MBA = Monthly Benefit Amount

        GP = Government Pension

GPO = Government Pension Offset

Claimant received:

             Date        Original MBA         GP                 ⅔ GP  Offset                MBA after GPO

             0615         2489                         3842                 2489                         0

             0616         2499                         3842                 2499                         0

             1216         2507                         3842                 2507                         0

             1217         2557                         3842                 2557                         0

             1218        2628                         3842                 2561                         67

             1219        2670                         3842                 2561                         109

             1220        2705                         3842                 2561                         143

             1221         2864                         3842                 2561                         303

             1222        3114                         3842                 2561                         552

             1223        3213                         3842                 2561                         652

So she received a total of $21,260

She should've gotten:

             Date        Original MBA         GP                 ⅔ GP  Offset                MBA after GPO

             0616         2613                         3842                 2561                         51.80

             1216         2621                         3842                 2561                         59.60

             1217         2673                         3842                 2561                         112.00

             1218         2748                         3842                 2561                         186.80

             1219         2792                         3842                 2561                         230.70

             1220         2828                         3842                 2561                         266.90

             1221         2995                         3842                 2561                         433.70

             1222         3255                         3842                 2561                         694.20

             1223         3359                         3842                 2561                         798.30

So she should have gotten a total of $32,844

She was cheated out of $11,584 ($32,844 - $21,260).

Plus, she’ll continue to be cheated out of $146 ($798-$652) every month for the rest of her life.

Social Security's idea of "fixing" the situation?

Have her pay back everything she received - i.e. $21,260

Then start her correct benefits, but only as of 6 months ago - i.e. 4/2024

so going forward she'll get $798/month instead of $652 - a gain of $146/month.

Gaining $146/month, how long will it take her to recover the $21,260 she repaid?

145 months!  12 years!

She's 74 years old now.

In 12 years, if she lives that long, she'll be 86.

Only then will she have recovered the $21,260 she paid back and begin to actually gain the $146/month.

But she will FOREVER be out the $11,584 she should have received from 6/16 thru 4/2024

Some "fix," eh?

In OSC’s press release “celebrating” this fix: SSA to Allow Widowed Spouses to Refile Survivor Benefits Claims, Seek Millions in Reimbursement, after Failing to Inform Them of Options, Special Counsel Henry J. Kerner says, “Thanks to the whistleblower's vigilance in identifying and disclosing these matters to OSC, thousands of widowed spouses will be able to enjoy increased economic well-being, support, and peace of mind." Hardly!

Case discussed by Laurence Kotlikoff of Forbes Magazine:

Can You Sue Social Security for Swindling You Out of Lifetime Benefits?

I brought the issue to my management. They sent it up the chain and I received the following response:

"She would be out of luck unless she was somehow misinformed. I do not think there is a policy or some kind of duty to compel SSA employees to give this kind of advice to claimants….I am sure that it often does not occur to the claims taker that benefits may be available with a later filing and Month of Entitlement."

She was quite obviously misinformed!  By taking the application now, the claimant got nothing. If we had told her to check again in the future, she would have gotten cash benefits. There was absolutely no reason to take the application at the current time.

So the claimant is "out of luck" because "it does not occur to the claims taker" to understand the basics of Month of Entitlement? This is another entire class of cheated widows we need to identify and make right.

Case III:  GPO spouses who could have delayed

SYNOPSIS:  

Basically the same as Case II except here the spouses are both still alive.  Claimants were erroneously signed up for Spouse benefits with a Month of Entitlement (MOE) for which no cash benefits were payable because of their Government Pension Offset (GPO).  Had they been advised to wait and apply later (but certainly at or before their Full Retirement Age (FRA)), some would have eventually been eligible for cash benefits.

DISCUSSIONS:

Special Counsel Press Release (12/2024):

Special Counsel Urges SSA to Allow Claimants Misinformed of Spousal Benefits to Refile for Full Relief

Report to the President and Congress:

https://osc.gov/Documents/Public%20Files/FY25/DI-24-000154/Redacted%20President%20Letter%20-%20DI-24-000154.pdf

ACTUAL EXAMPLE:

Note:

        MBA = Monthly Benefit Amount

        GP = Government Pension

GPO = Government Pension Offset

Claimant received:

             Date        Original MBA         GP                 ⅔ GP  Offset                MBA after GPO

             0595     413                           753                   413                           0

             1295     423                           753                   423                           0          

             1296     436                           753                   436                           0          

             1297     445                           753                   445                           0

             1298     451                           753                   451                           0          

             1299     461                           753                   461                           0          

             1200     478                           753                   478                           0

             0701     478                           753                   478                            0          

             1201     490                           753                   490                            0

             1202     497                           753                   497                            0          

             1203     508                           753                   502                            5          

             0104     508                           799                   508                            0          

             1204     521                           799                   521                           0          

             1205     543                           799                   533                            10        

             1206     561                           799                   533                            28        

             0707     561                           823                   549                            12        

             1207     574                           823                   549                            24        

             1208     607                           823                   549                            58

             1209     607                           823                   549                            58

             0710     607                           848                   565                            41

             1210     607                           848                   565                            41

             1211     629                           848                   565                            63

             1212     639                           848                   565                            74

             1213     649                           848                   565                            83

             1214     660                           848                   565                            94

             1215     660                           848                   565                            94

             1216     662                           848                   565                            96

             1217     675                           848                   565                            110

             1218     694                           848                   565                            128

             1219     705                           848                   565                            140

             1220     714                           848                   565                            149

             1221     756                                   848                   565                            191

             1222     822                           848                   565                            257

             1223     849                           848                   565                            283

So she received a total of $23,578

 

She should've gotten:

             Date        Original MBA         GP                 ⅔ GP  Offset                MBA after GPO

             0498     588                           753                   502                           85        

             1298     595                           753                   502                           93        

             1299     610                           753                   502                           107        

             1200     631                           753                   502                           129        

             0701     632                           753                   502                           129        

             1201     648                           753                   502                           146        

             1202     657                           753                   502                           155        

             1203     671                           753                   502                           168        

             0104     671                           799                   533                           138        

             1204     689                           799                   533                           156        

             1205     717                           799                   533                           184        

             1206     741                           799                   533                           208        

             0707           741                           823                   549                           192        

             1207           758                           823                   549                           209        

             1208           802                           823                   549                           253        

             1209           802                           823                   549                           253

             0710           802                           848                   565                           236

             1210           802                           848                   565                           236

             1211           831                           848                   565                           265

             1212           845                           848                   565                           279

             1213           857                           848                   565                           292

             1214    872                           848                   565                           307

             1215    872                           848                   565                           307

             1216    875                           848                   565                           309

             1217    892                           848                   565                           327

             1218    917                           848                   565                           352

             1219    932                           848                   565                           366

             1220    944                           848                   565                           378

             1221    1000                          848                   565                           434

             1222    1087                          848                   565                           521

             1223    1121                          848                   565                           556

So she should have gotten a total of $84,150.

She was cheated out of $60,572 ($84,150 - $23,578).

*PLUS* she'll continue to be cheated out of $273 ($556 - $283) every month for the rest of her life.

 

If Social Security allows her the same withdraw and refile "fix" as they did with the GPO Widows (Case II above):

She'll have to pay back everything she received - i.e. $23,578

Then start her correct benefits, but only as of 6 months ago i.e. 4/2024

So going forward she'll get $556 instead of $283 - a gain of $273/month.

Gaining $273/month, how long will it take her to recover the $23,578 she repaid?

86 months, or 11 years.

She's 91 years old now.

In 11 years, if she lives that long, she'll be 102.

Only then will she have recovered the $23,578 she paid back and begin to actually gain the $273/month.

But she will FOREVER be out the $60,572 she should have received from 4/98 thru 4/24.

Again... some "fix," eh?

Conclusions:

OIG is part of SSA

Is it any wonder they haven’t been objective in …

Serving the needs of the public… or

Reverse of foxes guarding the hen house

Closing Thoughts:

"The Man In Green and Black"

 

Well, you wonder why I dress in green and black,

Why you never see bright colors on my back,

And why does my appearance seem to have a somber tone,

Well, there's a reason for the crap that I have on.

 

I wear green and black for the poor and the beaten down,

Livin' in the hopeless, hungry side of town,

I’m talkin’ ‘bout the widows who’ve been cheated for too long,

To them I dedicate this sorry song.

 

I’m in green and black for those who never read,

The Inspector General report that clearly said

That we’re holding back the cash we should’ve found and quickly sent

The issue long ignored by management.

 

Well, we're doin' mighty fine, I do suppose,

In our streak of lightnin' cars and fancy clothes,

But just so we're reminded of the ones we’re holding back,

Up front there’ll be me in green and black.

 

I wear it for the sick and lonely old,

the ones whose trusted government has left them cold,

I’m wearin’ it in mournin' for the lives that could have been,

Each week we lose too many more of them.

 

I wear it for the thousands who have died,

Believen' Social Security was on their side,

I wear it for the unknown number to whom we’ve lied,

They never thought we’d take them for a ride.

 

Well, there's things that never will be right I know,

And things need changin' everywhere you go,

But 'til we start to make a move to make a few things right,

You'll never see me wear a suit of white.

 

Ah, I'd love to wear a rainbow every day,

And tell the country everything's OK,

But I'll try to carry on with this darkness on my back,

'Till things are brighter, I'm in green and black.

 

And yes, I am indeed an Eagles fan,

A fiercely loyal member of that clan,

When you see me biking home riding underneath the arch,

Please think about this Million Widow March.