Dysfunction Junction

Office of the Inspector General Windfall Offset Audit

The purpose of the Office of the Inspector General’s audit was to determine whether the Social Security Administration (SSA) had adequate controls to ensure Old-Age, Survivors and Disability Insurance (OASDI) benefits that had been withheld pending a Supplemental Security Income (SSI) windfall offset determination were paid accurately and timely.

Based on their random sample, they estimate that:

35,398 beneficiaries had SSI windfall offset actions that were not processed. As a result, SSA withheld about $306 million in OASDI benefits, of which we estimate approximately $232 million is payable to these beneficiaries.

17,067 beneficiaries had SSI windfall offset actions that were incorrectly processed. As a result, SSA improperly withheld or overpaid about $51.5 million in OASDI benefits for these beneficiaries.

60,051 beneficiaries had SSI windfall offset actions that were correctly processed but not in a timely manner. As a result, these beneficiaries did not promptly receive about $725.9 million in OASDI benefits

The audit indicated that the Social Security Administration has consistently failed to pay past-due Social Security Disability benefits in a timely manner because of their failure to properly administer Windfal Offset procedures.

Read the report here:   Windfall Offset

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