Every aspect of government contains systemic flaws

“Social Security Still Paying the Dead?

By Amanda Geronikos
Wed, 07 Sep 2011 20:54:46 GMT

It seems that everywhere you look, there’s a sad Social Security story to be seen: Social Security on Verge of Insolvency. Is Your Retirement in Jeopardy? How to Retire with No Savings. As it turns out, there’s an even sadder reality to the ongoing crisis: Social Security is still paying the dead.

According to a recent CNNMoney report, the Social Security inspector general estimates that the agency has given $40.3 million to deceased recipients.

Normally, family members or funeral directors are expected to inform the Social Security Administration of a person’s death. The deceased's identifying information is then added to the agency's Death Master File, a database that contains 87 million death records. Those who fail to report this information risk serious fraud charges.

So if the post-death process is that simple, how are millions of dollars still going to the dead? One in every 200 deaths are entered into the database incorrectly – that’s 38 very costly mistakes a day. That means even the healthiest, living Americans can be reported dead because of a simple misspelling. In fact, CNNMoney notes that between May 2007 and April 2010, the Death Master File listed 36,657 death entries for people who were very much alive. And even beneficiaries whose deaths have been properly reported simply continue to receive payments anyway.

Have you ever been affected by a Social Security mistake? Sound off here.

The opinions expressed are solely those of the author and do not necessarily reflect the views of XFINITY.”