Your Tax Dollars Are Paying Dead People Social Security

On Saturday, Just the News posted an article about a final audit report of the Social Security Agency by the agency’s Office of Inspector General.

The article reports:

This week’s Golden Horseshoe goes to the Social Security Administration, which paid an estimated $79 million to the deceased in just three states over a 10-year period, according to a final audit report by the agency’s Office of Inspector General. 

“We estimate SSA issued approximately $79 million in payments after death to 1,127 beneficiaries and four representative payees who died in Alabama, Georgia, or Illinois between January 1978 and December 2018,” the report found.

The watchdog identified an additional 53,486 deceased non-beneficiaries in those states whose death information was not in the SSA’s Numerical Identification System.

Please follow the link above to read the entire article. It includes examples of payments made to people who have been dead for years.

The article notes:

“In October and November of 2020, we referred to SSA all identified beneficiaries and representative payees who may have received improper payments after death,” the IG reported. “Identifying and correcting these discrepancies will prevent approximately $14 million in additional improper payments after death over a 12-month period.”

The audit was conducted from April to November 2020. As of April 2021, the SSA terminated payments to 832 deceased beneficiaries and four deceased representative payees. 

The agency has initiated the recovery of $35 million in improper payments it sent out, the IG reported.

The SSA established the Electronic Death Registration for states to electronically submit death reports to the agency to prevent payments after death. Once states submit through the EDR, if the deceased data matches the agency’s records, then SSA posts the information to its Numident file and terminates payments. SSA also receives death information from other sources aside from EDR, including family members and funeral directors.

It is time for the government to stop wasting taxpayers’ money. If the people who work for the government cannot do a better job of keeping track of who is receiving payments, they should either get a new computer system or new employees. No private company would tolerate that kind of wasteful spending.

Wasteful Spending In Washington

On Saturday, Just the News awarded its Golden Horseshoe award to the Pension Benefit Guaranty Corp. This is the organization that was created by the Employee Retirement Income Security Act of 1974 to protect pension benefits and is responsible for more than 34 million workers and retiree pension plans.

The article reports:

This week’s Golden Horseshoe award goes to the Pension Benefit Guaranty Corp. (PBGC), the nation’s pension bailout agency that is still reeling from revelations its chief of contracting engaged in a bribery scheme that steered $4.8 million in fraudulent business to a vendor in return for more than $1 million in personal benefits.

The bribery scheme involving the now convicted director of PBGC’s Procurement Department was possible because the agency suffered from several vulnerabilities, including reduced competition among vendors, missing legal reviews and sole-source contracts that evaded bidding designed to get taxpayers the best bargain, the PBGC’s inspector general reported.

“His actions were enabled by internal control weaknesses; specifically, inadequate oversight of PD procurements and a lack of a control mechanism to ensure that PD sent all requisite contract actions for legal review,” the inspector general reported. “Although PBGC began requiring that more contract actions receive legal review after the PD Director resigned in February 2020, it does not have a mechanism to ensure PD complies with this requirement.”

The internal watchdog said it also found “internal control deficiencies allowed PD to avoid competition requirements when awarding five other contracts, three of which were for PD support. Four of the contracts were awarded on a sole-source basis, including three using small business set-aside programs.”

The weaknesses are particularly concerning because PBGC, which normal funds itself through insurance payments from employer pension plans, just received its first ever infusion of tax dollars to replenish coffers that were on track to be insolvent by 2026, the IG noted. 

Please follow the link above to read the details. This is disgusting. The amount of fraud is disgusting and the fact that our tax dollars were used to fund this agency to allow further fraud is even worse. Our tax dollars at work.

Where Do Our Taxpayer Dollars Go?

Citizens Against Government Waste defines baseline budgeting as follows:

“Baseline budgeting” is one of those Washington terms that sounds very dry and boring. In reality, baseline budgeting is one of the most sinister ways that politicians claim to cut spending when they are actually increasing spending. The Congressional Budget Office defines the baseline as a benchmark for measuring the budgetary effects of proposed changes in federal revenue or spending, with the assumption that current budgetary policies or current services are continued without change. The baseline includes automatic adjustments for inflation and anticipated increases in program participation. Baseline, or current services, budgeting, therefore builds automatic, future spending increases into Congress’s budgetary forecasts.

Baseline budgeting tilts the budget process in favor of increased spending and taxes. For example, if an agency’s budget is projected to grow by $100 million, but only grows by $75 million, according to baseline budgeting, that agency sustained a $25 million cut. That is analogous to a person who expects to gain 100 pounds only gaining 75 pounds, and taking credit for losing 25 pounds. The federal government is the only place this absurd logic is employed.

Just the News posted an article (updated today) about one result of this practice.

The article reports:

The Golden Horseshoe is a weekly designation from Just the News intended to highlight egregious examples of wasteful taxpayer spending by the government. The award is named for the horseshoe-shaped toilet seats for military airplanes that cost the Pentagon a whopping $640 each back in the 1980s. 

This week, in honor of pending federal budget negotiations, our award is going to the entire U.S. government for spending a total of $91 billion taxpayer dollars this month last year, in order to ensure their individual agency and organization budgets would not shrink, as Congress negotiated a new deal.

Every year, in corporate offices around the country, departments coming up on the end of their fiscal term rush to spend any additional funds that might be left on hand, lest they be left with a surplus of cash that would lead their corporate overlords to believe they could do just as much work during the next year, with fewer dollars. Parts of the federal government face the same problem every year, as Congress spends each September renegotiating the federal budget to keep the government funded.

The article concludes with some specifics:

While all parts of the government should assume appropriate responsibility for their year-ending spending sprees, it is worth noting that in 2019, 81% of all contract spending occurred across just five departments of government. Of the $91 billion spree, the Pentagon spent $57.5 billion, Health and Human Services spent $5.7 billion, Veterans Affairs spent $3.8 billion, the General Services Administration spent $3.6 billion, and Homeland Security spend $3.5 billion.

In 2019, the federal government spent $575 billion in total on contracts. So, about one sixth, or just under 16%, of those dollars were spent during the last month of the fiscal calendar. By a long shot, September typically sees the highest annual monthly rate of spending from the federal government.

The federal government is once again entering the period of the year when, despite massive coronavirus relief spending, agencies will throw caution to the wind and spend like there’s no fiscal tomorrow.

And that, my friends, is why the deficit is growing and the value of our money is shrinking.