Difficult times force some to bend the rules
By: K. Michael Deltona, FL (February 14, 2010) -Social Security Disability Insurance fraud seems to be an increasing problem as tough economic conditions are causing many recipients to look outward to supplement their government household income. Working while receiving SSDI is not the problem, however, all income received needs to be reported to the Social Security Administration. Currently the Administration has programs such as “Back to Work” and “Work Incentive” programs that will allow recipients to re-enter the workforce without any loss of benefits for a limited time.
Because a person is no longer able to perform the work they did prior to their disability, does not mean they are entirely disabled and unable to work. If they are capable of performing other gainful work, they will be expected to do so, and will not receive benefits if they can earn above the Substantial Gainful Activity threshold, which was $970 per month in 2009. Currently the Federal minimum wage is $7.25 per hour. Working a 34-hour week at $7.25 per hour equals $246.50 per week, or $986.00 per month.
The purpose of Social Security Disability is to provide financial support to working individuals who have paid into the Social Security system, but have become seriously disabled and can no longer work.
“We need to do more to make sure those who are able to work are not gaming the money that is set aside for those who truly are disabled,” U.S. Rep. Kevin Brady said in a written statement in 2009 in response to an investigative series that an Oregon newspaper published. The newspaper found that the agency was behind in reviewing the medical conditions of 1.7 million Americans now collecting benefits. Estimated savings of $10 billion to $11 billion could be achieved if benefits were halted to recipients that are no longer disabled. The Administration would then “claw back”, or recover, benefits paid from past years.
Most fraud cases involve recipients receiving payments through the use of bogus social security numbers along with questionable eligibility. Some recipients are able to have a home based business such as computer repair for cash, but are unable to work at a 7/11, collecting $20 worth of gas on pump 5, for minimum wage or perform call center or other non physically taxing work.
A spokesperson from the Office of Inspector General of the Social Security Administration explained the majority of the reported fraud cases stem from personal vendettas with individuals using the fraud hotline to report abuse, as the computer systems cross check social security numbers automatically.
