Improper Social Security payments totaling $1.1 billion resulted from a record-breaking backlog, according to a report.

• An estimated $1.1 billion in improper beneficiary payments has resulted from a "record-breaking backlog" of pending actions, as stated in a new report.
• The Social Security Administration requires additional funding in its budget to effectively handle the current "customer service crisis," according to experts.

The Social Security Administration Office of the Inspector General reports that the agency is facing a "record-breaking backlog" of open cases, resulting in approximately $1.1 billion in projected improper payments to beneficiaries.

As of February, the SSA OIG discovered that the agency's pending actions backlog reached a record high of 5.2 million.

According to a sample evaluated by SSA OIG, the average processing time for improper payment cases was 698 days.

Erroneous payments to beneficiaries can occur in the form of overpayments or underpayments.

If the pending cases had been resolved promptly, approximately 528,000 beneficiaries would have received $534 million in incorrect payments, according to the report.

The improper payment amount for SSA beneficiaries increased to $756 million after 12 months, according to the SSA OIG's review.

Some overpayments may be preventable

The Social Security Administration has relaxed its policies on resolving overpayment issues with beneficiaries, allowing for more lenient rules that no longer require the full repayment of funds received.

Despite the agency's workflow, it remains susceptible to incorrect payments due to processing delays.

The SSA OIG report's findings are contingent on actions taken at the SSA's processing centers, which handle appeal decisions, collect debt, correct records, and process benefit decisions.

According to the SSA OIG report, the longer it takes SSA to process pending actions at the processing center, the longer beneficiaries have to wait for underpayments or receive larger overpayments that they must pay back.

Overpayments to beneficiaries may be preventable if they promptly provide necessary information to the Social Security Administration, according to Paul Van de Water, senior fellow at the Center on Budget and Policy Priorities.

He stated that other cases are simply due to slow processing times by the agency.

Van de Water stated that expediting the processing of claims and adjustments, regardless of their source, would be beneficial.

Improvements depend on 'sustained adequate funding'

The Social Security Administration achieved its performance measure goals for pending processing center actions in four out of six fiscal years from 2018 to 2023, as per the report.

According to the Social Security Administration, the agency was unable to achieve its goals in two fiscal years due to unforeseen staff cuts, increased workloads, and insufficient overtime funding.

Dustin Brown, acting chief of staff at the Social Security Administration, wrote in a letter that despite the growing number of beneficiaries, the agency has the lowest staffing levels in 25 years.

The number of beneficiaries who rely on Social Security benefits has increased to almost 72 million, up from about 64 million, while the Social Security Administration has more than 650 fewer employees working on processing center workloads than it did eight years ago, Brown stated.

The presidential election could have implications for Social Security and Medicare. Kamala Harris' running mate Tim Walz could influence the child tax credit. Experts say Kamala Harris' tax records show a "fairly basic" approach.

The Social Security Administration concurred with the suggestions from the SSA OIG report to establish a workload and staffing plan, set performance benchmarks for outstanding actions, and establish deadlines to manage those workloads.

The success of the agency in implementing recommendations will depend on sustained adequate funding for hiring, overtime, and technology, according to Brown's letter.

The Social Security Administration is currently facing a "customer service crisis" that has resulted in extended phone hold times, delays in disability determinations, and incorrect payment distributions, according to Van de Water.

If the agency does not receive sufficient funding in its budget, the crisis could deteriorate, predicts Van de Water.

The Senate and House have different proposals for funding the agency in the upcoming fiscal year. While the Senate wants to increase funding, the House suggests cutting it.

Van de Water stated that although everyone wants to eliminate long processing delays, it will be challenging to achieve this due to the tight budget constraints.