The Social Security Administration's Office of the Inspector General released an audit on Oct. 6 about disabled beneficiaries who may qualify for higher retirement benefits. It looked at people whose disability payments the Social Security Act requires SSA to reduce because they also receive workers' compensation or public disability benefits.
Auditors estimated SSA did not notify 8,726 of these beneficiaries that they could file for higher retirement benefits. It notified another 3,659 but did not properly record their decisions not to file or their reasons. The inspector general estimated these groups could have been entitled to about $84 million in additional benefits.
The report adds that statutory limits prevent SSA employees from issuing those payments, so the amount is an estimate of what was at stake, not money on its way to anyone. Auditors also found SSA may be able to pay an estimated $41 million to 4,785 other beneficiaries who already filed for retirement benefits but did not get the correct, higher amount.
The problem is not new. A 2015 audit flagged the same gap, and SSA agreed to fix it and automated part of its notice process. The new follow-up found that notification and documentation problems persisted. If you receive disability benefits that are reduced because of workers' compensation or a public disability payment, ask SSA directly whether a retirement benefit would pay more, and keep a record of the answer.