Social Security Makes $24,000 Mistake

A Buffalo woman has an interesting story about a mistake with her Social Security disability monthly benefits. According to WIVB.com:

Cheryl Smeal's monthly disability benefit is about $400. So when Social Security sent a letter saying her next month's benefit would be more than $24,000... it got her attention. So did another letter she received the same day, saying it was a mistake.

"I'm like, 'Oh my God! I've got some moolah coming to me and things will be a little bit better.' But I opened the next letter and it said that, 'we overpaid you $24,760,'" Smeal recalled.

And the correspondence says Smeal would have to pay the money back. But the money is electronically transferred to her government debit card and Social Security won't take it back.

It's important to always pay attention to how much Social Security has sent you and compare that to what you are supposed to be receiving. In this instance it was obvious with the huge amount of money involved that it was a mistake. However, there are times when the mistakes are much smaller amounts of money but over a period of months the money can add up. If Social Security notices the error, which they likely will, they will be asking to be reimbursed for the overpayment.

Trust me, it's better to let Social Security know as soon as you are aware that there's a mistake. If they pay you $100 per month more than you are supposed to get and they don't notice for three years, you're going to owe them $3,600.  That's a headache you'll want to avoid if at all possible.

I Receive A Social Security Check, Why Must I Sign Up For Direct Deposit?

Truthfully, you do not have to sign up for direct deposit. But, you also will not have the option of receiving a paper check beyond March 1, 2013. If you do not want to set up direct deposit then you can elect to receive your monthly Social Security benefits via the Direct Express prepaid debit card.

Social Security is moving to an entirely electronic payment system because they claim it will save them $1 billion over the next ten years. According to the Social Security Administration, it costs 92 cents more to issue a payment by paper check then it does by direct deposit.

Read more about the change in the Senior Journal.

Montclair, NJ Social Security Office Closing

According to The Bergen Record:

As part of its belt-tightening, the U.S. Social Security Administration will be closing its walk-in office on Bloomfield Avenue, consolidating that facility with its office in Clifton, officials said Friday.

The closing of the 7,100-square-foot facility will take place in early March, Shallman said. At that point, employees and operations from Montclair will be shifted to the Social Security office at 935 Allwood Road, Clifton, which is within five miles of the Montclair facility.

Payroll Tax Cuts Not Good For People With Disabilities

You may have recently heard about the payroll tax cuts that were extended for an additional two months by Congress. Many Americans, especially the lower and middle class, have viewed this as a good thing. Anytime less money is taken out of  your pay check it's got to be a good thing, right?

Not necessarily, unfortunately. You see the problem is that the tax cut comes at the cost of not adding funds into the Social Security Trust Fund. Typically, 6.2% of your salary is taxed and added to the Social Security Trust Fund. Additionally, your employer contributes 6.2% of your salary to the same fund. In 2011, many Americans were pleased when it was announced that their contribution would be reduced to 4.2%. Multiply that 2% deduction being paid into the Social Security Trust Fund by every working American's contribution and that's a huge chunk of change (estimated to cost over $33 billion).

Money was taken from the United States general revenue to offset the reduction of money being contributed into the Social Security Trust Fund. But, there is no guarantee that Congress will continue to allow that deficit to be made up by just taking funds from the general revenue or charging fees to banks and mortgage companies and placing it into Social Security. Instead of the Social Security program depending on itself to fund retirement and disability benefits, the program now relies on Congress to direct funds from other places into the Social Security Trust Fund.

This may not seem like a huge problem now. But, there is no doubt the Social Security program is currently under attack by many politicians.

The overwhelming majority of Americans live pay check to pay check and the only income they expect to have when they retire will be their Social Security check. If Social Security disappears, or the funds available are greatly reduced, where will retirees or disabled individuals turn for financial assistance?

Read more about the problems this poses for disabled individuals here.

American workers usually pay a tax of 6.2 percent on their earnings to build the Social Security Trust Fund.

Read more here: http://www.bellinghamherald.com/2011/12/28/2327482/why-the-payroll-tax-deal-is-bad.html#storylink=cpy

American workers usually pay a tax of 6.2 percent on their earnings to build the Social Security Trust Fund.

Read more here: http://www.bellinghamherald.com/2011/12/28/2327482/why-the-payroll-tax-deal-is-bad.html#storylink=cpy

NOSSCR Responds To New Social Security Policy To Hide Judge's Identity Until Day Of Hearing

The National Organization of Social Security Claimants' Representatives (NOSSCR) has sent a detailed response to the Social Security Administration regarding the new policy which has been implemented which keeps the identity of judges anonymous until the day of the hearing.

To view the letter click here


Related Post:
I've Been Scheduled For A Hearing, Can I Look Up The Judge's Decision Record?