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.
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):
“… 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!
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):
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.
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):
Report to the President and Congress:
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?
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
"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.