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Protecting Beneficiaries from the Harm of Improper Payments — Hearing (October 18, 2023)

Summary

Hearing record Protecting Beneficiaries from the Harm of Improper Payments, before the Subcommittee on Social Security of the Committee on Ways and Means, House of Representatives, on October 18, 2023 (Serial No. 118–SS03). Opening statements are listed for Hon. Drew Ferguson, Georgia, Chairman, and Hon. John Larson, Connecticut, Ranking Member. Witnesses were Kilolo Kijakazi, Ph.D., Acting Commissioner, Social Security Administration; Tony Eickman of the Social Security Administration Office of the Inspector General; and Elizabeth Curda, Director, Education, Workforce, and Income Security, U.S. Government Accountability Office. The record also contains member questions for the record with responses from each witness and public submissions.

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Cite this document

“Protecting Beneficiaries from the Harm of Improper Payments — Hearing (October 18, 2023).” Original at www.govinfo.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/chrg-118hhrg55064-protecting-beneficiaries-from-the-harm-of-improper-p-000f8031d3/, SHA-256 50b94104ef3991600c360d7c5332a0bf60a416804a4c4a8d7b8e6da84b74b64c.

Full text

                                                                                       PROTECTING BENEFICIARIES FROM THE HARM
                                                                                                OF IMPROPER PAYMENTS




                                                                                                                       HEARING
                                                                                                                               BEFORE THE


                                                                                       SUBCOMMITTEE ON SOCIAL SECURITY
                                                                                                                                  OF THE


                                                                                           COMMITTEE ON WAYS AND MEANS
                                                                                             HOUSE OF REPRESENTATIVES
                                                                                                    ONE HUNDRED EIGHTEENTH CONGRESS
                                                                                                                             FIRST SESSION


                                                                                                                            OCTOBER 18, 2023



                                                                                                                Serial No. 118–SS03

                                                                                                    Printed for the use of the Committee on Ways and Means




                                                                                                                                  (

                                                                                                                U.S. GOVERNMENT PUBLISHING OFFICE
                                                                                        55–064                              WASHINGTON : 2024




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                                                                                                               COMMITTEE ON WAYS AND MEANS
                                                                                                           JASON SMITH, Missouri, Chairman
                                                                                  VERN BUCHANAN, Florida                  RICHARD E. NEAL, Massachusetts
                                                                                  ADRIAN SMITH, Nebraska                  LLOYD DOGGETT, Texas
                                                                                  MIKE KELLY, Pennsylvania                MIKE THOMPSON, California
                                                                                  DAVID SCHWEIKERT, Arizona               JOHN B. LARSON, Connecticut
                                                                                  DARIN LAHOOD, Illinois                  EARL BLUMENAUER, Oregon
                                                                                  BRAD WENSTRUP, Ohio                     BILL PASCRELL, JR., New Jersey
                                                                                  JODEY ARRINGTON, Texas                  DANNY DAVIS, Illinois
                                                                                  DREW FERGUSON, Georgia                  LINDA SÁNCHEZ, California
                                                                                  RON ESTES, Kansas                       BRIAN HIGGINS, New York
                                                                                  LLOYD SMUCKER, Pennsylvania             TERRI SEWELL, Alabama
                                                                                  KEVIN HERN, Oklahoma                    SUZAN DELBENE, Washington
                                                                                  CAROL MILLER, West Virginia             JUDY CHU, California
                                                                                  GREG MURPHY, North Carolina             GWEN MOORE, Wisconsin
                                                                                  DAVID KUSTOFF, Tennessee                DAN KILDEE, Michigan
                                                                                  BRIAN FITZPATRICK, Pennsylvania         DON BEYER, Virginia
                                                                                  GREG STEUBE, Florida                    DWIGHT EVANS, Pennsylvania
                                                                                  CLAUDIA TENNEY, New York                BRAD SCHNEIDER, Illinois
                                                                                  MICHELLE FISCHBACH, Minnesota           JIMMY PANETTA, California
                                                                                  BLAKE MOORE, Utah
                                                                                  MICHELLE STEEL, California
                                                                                  BETH VAN DUYNE, Texas
                                                                                  RANDY FEENSTRA, Iowa
                                                                                  NICOLE MALLIOTAKIS, New York
                                                                                  MIKE CAREY, Ohio
                                                                                                             MARK ROMAN, Staff Director
                                                                                                        BRANDON CASEY, Minority Chief Counsel

                                                                                                         SUBCOMMITTEE ON SOCIAL SECURITY
                                                                                                       DREW FERGUSON, Georgia, Chairman
                                                                                  MIKE CAREY, Ohio                    JOHN LARSON, Connecticut
                                                                                  DAVID SCHWEIKERT, Arizona           BILL PASCRELL, New Jersey
                                                                                  RON ESTES, Kansas                   LINDA SÁNCHEZ, California
                                                                                  BLAKE MOORE, Utah                   DAN KILDEE, Michigan
                                                                                  RANDY FEENSTRA, Iowa
                                                                                  GREG STEUBE, Florida
                                                                                  DAVID KUSTOFF, Tennessee




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                                                                                                                                CONTENTS

                                                                                                                              OPENING STATEMENTS
                                                                                                                                                                                                              Page
                                                                                  Hon. Drew Ferguson, Georgia, Chairman .............................................................                           1
                                                                                  Hon. John Larson, Connecticut, Ranking Member ...............................................                                13
                                                                                  Advisory of October 18, 2023 announcing the hearing .........................................                                 V

                                                                                                                                        WITNESSES
                                                                                  Kilolo Kijakazi, Ph.D., Acting Commissioner, Social Security Administration ..                                               15
                                                                                  Tony Eickman, Program Audit Dvision Director, Social Security Administra-
                                                                                    tion Office of the Inspector General ...................................................................                   24
                                                                                  Elizabeth Curda, Director, Education, Workforce, and Income Security, U.S.
                                                                                    Government Accountability Office ......................................................................                    34

                                                                                                               MEMBER QUESTIONS FOR THE RECORD
                                                                                  Member Questions for the Record to and Responses from Kilolo Kijakazi,
                                                                                   Ph.D., Acting Commissioner, Social Security Administration ..........................                                       85
                                                                                  Member Questions for the Record to and Responses from Tony Eickman,
                                                                                   Program Audit Division Director, Social Security Administration Office of
                                                                                   the Inspector General ..........................................................................................            90
                                                                                  Member Questions for the Record to and Responses from Elizabeth Curda,
                                                                                   Director, Education, Workforce, and Income Security, U.S. Government Ac-
                                                                                   countability ...........................................................................................................    91

                                                                                                               PUBLIC SUBMISSIONS FOR THE RECORD
                                                                                  Public Submissions ..................................................................................................        94




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                                                                                         PROTECTING BENEFICIARIES FROM THE
                                                                                            HARM OF IMPROPER PAYMENTS

                                                                                                           WEDNESDAY, OCTOBER 18, 2023

                                                                                                           HOUSE OF REPRESENTATIVES,
                                                                                                        SUBCOMMITTEE ON SOCIAL SECURITY,
                                                                                                                COMMITTEE ON WAYS AND MEANS,
                                                                                                                                    Washington, DC.
                                                                                     The subcommittee met, pursuant to call, at 2:12 p.m., in Room
                                                                                  2020, Rayburn House Office Building, Hon. Drew Ferguson [chair-
                                                                                  man of the subcommittee] presiding.
                                                                                     Chairman FERGUSON. This is a crazy time on Capitol Hill right
                                                                                  now. But wanted to welcome you, thank you for taking time to join
                                                                                  us today.
                                                                                     We have got a lot of work to do on improper payments. That is
                                                                                  what we are here to discuss today. One thing that I would like to
                                                                                  say is one thing that I think that we all agree on, and I want to
                                                                                  go ahead and put this out there right now, is that way too many
                                                                                  Americans now have the burden of having to deal with an overpay-
                                                                                  ment.
                                                                                     And I believe that we come together in a way to make sure that
                                                                                  those people are not caused additional harm or suffering. And we
                                                                                  will get to that conversation, because I know whether you are Re-
                                                                                  publican, whether you are Democrat, no matter what district you
                                                                                  are from, the last thing you want to see are your constituents bur-
                                                                                  dened by mistakes that have been made by the administration.
                                                                                     So we will get to that point. But today it is about making sure
                                                                                  that we focus in on how to stop the improper payments, underpay-
                                                                                  ments or overpayments, improper payments.
                                                                                     And we have a—Social Security is so vitally important to all of
                                                                                  us, and there are about 65 million Americans who rely on the So-
                                                                                  cial Security Administration to provide them with timely and accu-
                                                                                  rate benefits each and every month. To the roughly 180 million tax-
                                                                                  payers who contribute a portion of their paychecks to fund the pro-
                                                                                  gram, it is important to them too. With a program this size, which
                                                                                  pays out more than $1.2 trillion a year, even a small percentage
                                                                                  of errors can have a big impact, and every error can affect a bene-
                                                                                  ficiary’s livelihood.
                                                                                     Let’s all agree—let’s all, again, agree that we shouldn’t be going
                                                                                  after beneficiaries who receive payments improperly. Let’s focus
                                                                                  first on stopping the improper payments. Whether it is—whether
                                                                                  we are talking about an overpayment or whether we are talking
                                                                                  about an underpayment, we have to get this right.
                                                                                     We have major issues, and we have insolvency coming with So-
                                                                                  cial Security in less than 10 years, something that we all—we all




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                                                                                  share a concern about and are committed to finding a pathway for-
                                                                                  ward in a bipartisan way. But we cannot continue to go down the
                                                                                  road of turning a blind eye to inefficiencies and improper payments
                                                                                  in the administration.
                                                                                     So I believe that, as we go forward, we can figure out better proc-
                                                                                  esses. I think that we can figure out more efficient ways of dealing
                                                                                  with this.
                                                                                     Just to give you an example. The old process took way too long,
                                                                                  and now the improved process has a 10-page form that the bene-
                                                                                  ficiary has to navigate. It is still really complicated, and we are
                                                                                  putting a tremendous burden on the beneficiary when, in fact,
                                                                                  there are ways that we can address this, and we can be more
                                                                                  proactive in dealing with the improper payments.
                                                                                     And I understand, and what I would like to do is enter into the
                                                                                  record, without objection, the request waiver for the overpayment
                                                                                  recovery.
                                                                                     This is it. Many of you have seen this. It is not the easiest thing
                                                                                  in the world, particularly if we are talking about someone that may
                                                                                  not have the means and the resources around them to hire profes-
                                                                                  sionals to help them with this.
                                                                                     [The information follows:]




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                                                                                                                                      13

                                                                                     Chairman FERGUSON. Even when a beneficiary follows the
                                                                                  rules, the SSA services outages, errors, and processing delays can
                                                                                  result in the need to contact SSA multiple times. Improper pay-
                                                                                  ments, many of which—many of which occur by no fault of those
                                                                                  who have been improperly paid, do, in fact, place a heavy burden
                                                                                  on the recipients. And that is why we have got to do more to help
                                                                                  prevent this before they happen.
                                                                                     And it is no mystery what is causing these improper payments.
                                                                                  As each of today’s witnesses can tell you, a major driver of overpay-
                                                                                  ments is SSA’s continued reliance on manual processes to report
                                                                                  earnings in a timely manner.
                                                                                     This is why Congress gave the Social Security Administration
                                                                                  new authority to enter into information exchanges with payroll
                                                                                  data providers to reduce SSA’s dependence on beneficiaries self-re-
                                                                                  porting their earnings and to prevent improper payments. This was
                                                                                  done 8 years ago, 8 years ago. SSA still has not put this authority
                                                                                  into use, and one of the things that we are going to want to find
                                                                                  out today is why that is.
                                                                                     Earlier this year, I wrote a letter to the SSA, along with the
                                                                                  Ways and Means chairman, Jason Smith, and Work and Welfare
                                                                                  Chairman Darin LaHood, to ask why SSA had taken so long to use
                                                                                  this important tool and to press SSA and to put that production—
                                                                                  to put it into production as soon as possible. And I—again, I intend
                                                                                  to follow up with questions today to that effect.
                                                                                     I also look forward to hearing from the Government Account-
                                                                                  ability Office and the SSA Office Inspector General, both of which
                                                                                  have dedicated significant time to analyzing SSA’s payment accu-
                                                                                  racy and recommending improvements. And, while I understand
                                                                                  that the SSA has made progress on some of them, there is a lot
                                                                                  more that could be done.
                                                                                     I want to thank our witnesses for being here today. Again, my
                                                                                  apologies for starting this late.
                                                                                     With that, I yield to my good friend and ranking member, Mr.
                                                                                  Larson.
                                                                                     Mr. LARSON. Thank you, Mr. Chairman.
                                                                                     And I especially want to thank our witnesses for being here as
                                                                                  well.
                                                                                     Commissioner, I want to thank you especially for visiting our dis-
                                                                                  tricts, et cetera, and the care and concern that I know you have
                                                                                  as leader of this great institution.
                                                                                     Let me say that I share some of the concerns that have been put
                                                                                  forward by the chairman, but I want to put it in perspective.
                                                                                     Let’s start with this year’s budget which is flat funded, and then
                                                                                  add on top of that the proposal by our colleagues to cut that by 30
                                                                                  percent. When there are 10,000 baby boomers a day who become
                                                                                  eligible for Social Security, when there is close to 70 million Ameri-
                                                                                  cans who receive Social Security payments, this is not the time to
                                                                                  be cutting.
                                                                                     The thing that I hear most in my district from individuals when
                                                                                  I call and go home is that they can’t get in touch with a human
                                                                                  being or a voice on the other side that can answer a question for
                                                                                  them. And the reason they can’t is because the agency has been cut




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                                                                                  and understaffed, something that people in Congress seem to be ob-
                                                                                  livious to.




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                                                                                     When we add that to the fact that Congress, whose responsibility
                                                                                  it is to fund Social Security, hasn’t enhanced the program in 52
                                                                                  years—52 years—has anything happened with inflation or in the
                                                                                  economy in 52 years that would require the United States Congress
                                                                                  to actually look at the benefits that people receive and adjust
                                                                                  them? Nobody gets wealthy on Social Security. On average, $18,000
                                                                                  per male, $14,000 per female, and, in the United States of America,
                                                                                  with our vast budget, 5 million of our fellow Americans get below-
                                                                                  poverty-level checks.
                                                                                     Is there any conversation about adjusting them? No. And they
                                                                                  need to be brought up so that they are able to survive and subsist,
                                                                                  because more than 40 percent of all Social Security recipients, the
                                                                                  only thing they have to rely on is Social Security.
                                                                                     Morality demands that this committee and the Congress act es-
                                                                                  pecially in these times, in this time, in the aftermath, and the
                                                                                  aftermath of the epidemic that took over this country, and globally,
                                                                                  people are still recovering from that. And who was hurt by that the
                                                                                  most? People over the age of 65. And, in a time of global inflation,
                                                                                  who is the group that is hit hardest by that? People on fixed in-
                                                                                  come. Those are people on Social Security.
                                                                                     And so here we have our fellow Americans that are in the great-
                                                                                  est need, and Congress, it is great that we are looking, and we
                                                                                  hope to get answers in terms of making Social Security and every
                                                                                  governmental agency more efficient, but we could start by having
                                                                                  them, with the appropriate personnel, to make sure they are an-
                                                                                  swering the questions.
                                                                                     And even more startling and beyond that is we could actually
                                                                                  give our fellow citizens and constituents—I have a card for every-
                                                                                  body on this committee and everybody in Congress that details in
                                                                                  your district how many recipients you have, what they receive, how
                                                                                  much money comes into your district on a monthly basis for Social
                                                                                  Security recipients.
                                                                                     Why Republicans are not embracing a—23 million Americans re-
                                                                                  ceiving a tax cut and raising 5 million people out of poverty and
                                                                                  then that money going right back into their communities that they
                                                                                  represent. If you can point to me any better economic development
                                                                                  plan in the country, I would be glad to take a look at it, but there
                                                                                  isn’t. And this goes to the people that need it the most. And where
                                                                                  do they spend that money? Right back in their community.
                                                                                     And until we address and face up to these glaring inequities, this
                                                                                  may be great conversation, but it is not going to fix what is wrong
                                                                                  with Social Security. What is wrong with Social Security is Con-
                                                                                  gress inaction, not doing anything.
                                                                                     Thirty years ago—excuse me—40 years ago, in 1983, they took
                                                                                  a look at solvency and said, well, you know what we are going do?
                                                                                  We are going to raise the age. What they found out in the process
                                                                                  is that for every year you raise the age, it is a 7 percent cut in ben-
                                                                                  efits. And my friends and colleagues on the other side are pro-
                                                                                  posing raising the age to 70, which would be a 21 percent across-
                                                                                  the-board cut, going along with the inaction by Congress that in
                                                                                  2033 would mean a 20 percent cut. That is a 43 percent cut to peo-
                                                                                  ple on average who are getting $18,000 a year if you are a male,




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                                                                                  $14,000. It is long overdue for Congress to step up and take action.
                                                                                     Sorry I ran over, Mr. Chairman.




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                                                                                    Chairman FERGUSON. Thank you, Mr. Larson.
                                                                                    Next, I have the pleasure of formally introducing our witnesses,
                                                                                  Dr. Kilolo Kijakazi—I am going to say this wrong—Kija——
                                                                                    Ms. KIJAKAZI. Kijakazi.
                                                                                    Chairman FERGUSON. Thank you for coming to my district.
                                                                                  You said it then, and I still had trouble getting it out. But, Doctor,
                                                                                  thank you for being here today, and thank you for being the acting
                                                                                  commissioner of the Social Security Administration. Again, I want
                                                                                  to thank you for coming to my district, having a very good con-
                                                                                  versation there and look forward to the discussion today.
                                                                                    Ms. Tonya Eickman, Program Audit Division for the Director of
                                                                                  Social Security Administration’s Office of Inspector General, wel-
                                                                                  come.
                                                                                    And lastly, Ms. Elizabeth Curda, director of Education, Work-
                                                                                  force, and Income Security of the U.S. Government Accountability
                                                                                  Office.
                                                                                    Thank you all for joining us today.
                                                                                    Again, your written statements will be made part of the record,
                                                                                  and you will each have 5 minutes to deliver your remarks.
                                                                                    Doctor, you may begin.
                                                                                          STATEMENT OF DR. KILOLO KIJAKAZI, PH.D., ACTING
                                                                                          COMMISSIONER, SOCIAL SECURITY ADMINISTRATION
                                                                                    Ms. KIJAKAZI. Thank you for inviting us, SSA, to participate in
                                                                                  this hearing. I am Kilolo Kijakazi, acting commissioner of the So-
                                                                                  cial Security Administration, or SSA.
                                                                                    I have not testified or provided interviews for the media during
                                                                                  my tenure because I have been laser-focused on the work of suc-
                                                                                  cessfully resuming walk-in traffic in our local offices after the pan-
                                                                                  demic. We had lines in less than 5 percent of our 1,230 offices, even
                                                                                  at the peak of demand.
                                                                                    I also focused on the crisis that SSA faced after years of inad-
                                                                                  equate funding that led to the agency’s lowest level of staffing in
                                                                                  25 years, and I focused on conducting a hiring surge with the in-
                                                                                  crease in funds we received in fiscal year 2023. This resulted in the
                                                                                  onboarding of 7,800 new employees for a net gain of 3,200 employ-
                                                                                  ees. And this brought our total number of employees up to nearly
                                                                                  60,000 by the end of the fiscal year 2023.
                                                                                    Both the pandemic and the staffing shortage contributed to the
                                                                                  subject of this hearing: overpayments. Therefore, I wanted to be
                                                                                  here to address this issue.
                                                                                    During the balance of my time, I will address three points. First,
                                                                                  SSA’s employees work assiduously to pay the right person the right
                                                                                  amount at the right time. And, as a result, we have achieved low
                                                                                  overpayment rates. Next, I will walk through the overpayment
                                                                                  process. And lastly, I will discuss SSA’s commitment to continuous
                                                                                  improvement.
                                                                                    SSA pays approximately $1.4 trillion in benefits to more than 71
                                                                                  million people each year. Our overpayment rates are low, about one
                                                                                  half of 1 percent for Social Security and about 8 percent for Supple-
                                                                                  mental Security Income, or SSI.
                                                                                    Overpayments can occur, given the large number of people we




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                                                                                  serve, the frequent changes in their circumstances, and the statu-
                                                                                  tory complexity of the programs. And our staffing shortages abso-




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                                                                                  lutely contribute to overpayments. Last year, we had the lowest
                                                                                  level of staffing in 25 years. At the same time, we had the highest
                                                                                  number of beneficiaries ever.
                                                                                     If we could show the chart on the monitors or here. Yes.
                                                                                     The blue line represents the precipitous decline in staffing over
                                                                                  the last several years. And the red line shows the increase in bene-
                                                                                  ficiaries as baby boomers retire or become disabled.
                                                                                     SSA cannot continue to do more with less. To achieve the high-
                                                                                  quality service that our beneficiaries deserve, we need sufficient,
                                                                                  sustained funding from Congress. We have not had that for the
                                                                                  better part of the last decade.
                                                                                     The current continuing resolution through November 17 returned
                                                                                  us to a full freeze on our hiring and our overtime until we have
                                                                                  our annual fiscal year 2024 funding.
                                                                                     Next, I will discuss the overpayment process. If we determine
                                                                                  that a beneficiary has been paid more than they should have re-
                                                                                  ceived, we are required by law to seek recovery of the overpayment
                                                                                  amounts. First, we issue a notice to the beneficiary to explain that
                                                                                  they were overpaid, the reason for the overpayment, and the
                                                                                  amount. The notice generally requests a full and immediate refund
                                                                                  and describes a proposed rate of benefit withholding. However, the
                                                                                  notice to SSI beneficiaries indicates that they can repay the
                                                                                  amount that they can afford monthly. The notice also explains the
                                                                                  right to request an appeal, a waiver, or a different rate of with-
                                                                                  holding.
                                                                                     I understand that receiving an overpayment notice can be dis-
                                                                                  tressing for beneficiaries. We seek to balance compassion with our
                                                                                  statutory obligation to—and to seek recovery and carefully review
                                                                                  Social Security trust funds.
                                                                                     I am running over. So I am—I will answer questions. But in clos-
                                                                                  ing, I want to share that I have been concerned by the widespread
                                                                                  misunderstanding of the overpayments process and how this mis-
                                                                                  understanding has influenced the public discourse. It is critical
                                                                                  that, in the public’s trust, we be factual when discussing challenges
                                                                                  facing SSA.
                                                                                     I appreciate your support for our agency’s important work, serv-
                                                                                  ing your constituents. And I look forward to answering your ques-
                                                                                  tions.
                                                                                     [The statement of Ms. Kijakazi follows:]




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                                                                                    Chairman FERGUSON. Thank you, Dr. Kijakazi. Thank you. We
                                                                                  appreciate that.
                                                                                    Ms. Eickman, you are—it is now your time.
                                                                                  STATEMENT OF MS. TONYA EICKMAN, PROGRAM AUDIT DIVI-
                                                                                   SION DIRECTOR, SOCIAL SECURITY ADMINISTRATION OF-
                                                                                   FICE OF THE INSPECTOR GENERAL
                                                                                     Ms. EICKMAN. Chairman Ferguson, Ranking Member Larson,
                                                                                  and members of the Subcommittee on Social Security, I commend
                                                                                  you for holding this important hearing today on Social Security Ad-
                                                                                  ministration improper payments.
                                                                                     Improper payments can have a devastating effect on bene-
                                                                                  ficiaries, particularly when the improper payment is the result of
                                                                                  an agency error. Simply put, an overpayment occurs when SSA
                                                                                  states an individual received more Social Security or SSI benefits
                                                                                  than they were supposed to receive.
                                                                                     Many overpayments can accumulate over several years until SSA
                                                                                  realizes payments to the beneficiaries have been inaccurate. In
                                                                                  some instances, individuals are sent bills stating they owe thou-
                                                                                  sands of dollars they cannot afford.
                                                                                     The other side of this improper payments coin can be just as
                                                                                  harmful to beneficiaries. When an agency error results in under-
                                                                                  payments, beneficiaries are not receiving their full monthly bene-
                                                                                  fits, sometimes for months or even years.
                                                                                     Improper payments can occur for many reasons, including when
                                                                                  SSA does not obtain necessary information from beneficiaries or
                                                                                  fails to act on that information once received. Improper payments
                                                                                  also occur when SSA makes mistakes in computing payments due
                                                                                  to the complexity of calculations and reliance on manual processes.
                                                                                     Since fiscal year 2002, SSA’s Office of the Inspector General has
                                                                                  identified improper payments as a major management challenge.
                                                                                  SSA’s OIG is committed to identifying ways for SSA to prevent im-
                                                                                  proper payments to the millions of beneficiaries who rely on the
                                                                                  agency to send them their correct monthly benefit amount.
                                                                                     One of the most common reasons for improper payments is re-
                                                                                  lated to SSA’s reliance on beneficiaries to report any change in cir-
                                                                                  cumstances that may affect their benefits. Wages and income, re-
                                                                                  sources, and living arrangements are a few of the factors that af-
                                                                                  fect OASDI and/or SSI eligibility and payment amounts.
                                                                                     Improper payments also occur when SSA does not act timely
                                                                                  once it receives information from the individual. In one audit, OIG
                                                                                  estimated SSA incorrectly paid over $40 million because it did not
                                                                                  timely process work reviews for beneficiaries who had reported
                                                                                  their earnings.
                                                                                     SSA employees must take manual actions to make calculations
                                                                                  or establish records when systems cannot fully process them. Some
                                                                                  of the calculations that must be completed manually are based on
                                                                                  complex provisions written into Federal statutes. Employees have
                                                                                  tools to assist with the calculations, and there are alerts to prompt
                                                                                  manual actions for some workloads, but OIG audits have found
                                                                                  that controls around these manual processes are not always effec-
                                                                                  tive.




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                                                                                     Once SSA makes overpayments, it must provide due process to
                                                                                  the overpaid individuals. SSA notifies them of information, such as




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                                                                                  the amount of the overpayment, how and when the overpayment
                                                                                  occurred, and options to request reconsideration or waiver.
                                                                                     After SSA notifies the overpaid individuals, it has numerous op-
                                                                                  tions for recovering overpayment. The preferred method is to with-
                                                                                  hold benefits if the overpaid individual is receiving a monthly pay-
                                                                                  ment. Otherwise, SSA has other options as discussed in my written
                                                                                  testimony.
                                                                                     SSA OIG’s work demonstrates a commitment to assisting SSA in
                                                                                  addressing its improper payments challenge. In the last 5 years,
                                                                                  the OIG issued 101 reports with 299 recommendations related to
                                                                                  improper payments. These reports identified over $7 billion in
                                                                                  questioned costs. Of these, 76 recommendations aimed at address-
                                                                                  ing $1.8 billion in questioned costs remain unimplemented.
                                                                                     OIG acknowledges SSA has taken some steps to improve preven-
                                                                                  tion, detection, and recovery of overpayments. However, there is
                                                                                  much more SSA can do. Specifically, SSA needs to identify and pre-
                                                                                  vent improper payments through automation and data analytics,
                                                                                  expand efforts to collect data from reliable third-party sources, and
                                                                                  address the root causes of improper payments to prevent their oc-
                                                                                  currence.
                                                                                     Improper payments are a major challenge for SSA. Without bet-
                                                                                  ter access to data, increased automation, systems modernization,
                                                                                  and policy or legislative changes, it will continue to be an issue into
                                                                                  the future.
                                                                                     Thank you for inviting the Office of the Inspector General to dis-
                                                                                  cuss issues concerning improper payments at SSA. I would be
                                                                                  pleased to address any questions.
                                                                                     [The statement of Ms. Eickman follows:]




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                                                                                       Chairman FERGUSON. Thank you, Ms. Eickman.
                                                                                       Ms. Curda, it is now your time.

                                                                                  STATEMENT OF MS. ELIZABETH CURDA, DIRECTOR, EDU-
                                                                                   CATION, WORKFORCE, AND INCOME SECURITY, U.S. GOV-
                                                                                   ERNMENT ACCOUNTABILITY OFFICE
                                                                                     Ms. CURDA. Chairman Ferguson, Ranking Member Larson, and
                                                                                  members of the subcommittee, I am pleased to be here today to dis-
                                                                                  cuss our work on overpayments in the Disability Insurance pro-
                                                                                  gram.
                                                                                     DI serves as a critical safety net by providing benefits to individ-
                                                                                  uals who can no longer work because of physical or mental impair-
                                                                                  ments. In fiscal year 2022, about 8.95 million DI beneficiaries re-
                                                                                  ceived approximately $146 billion in benefits.
                                                                                     DI overpayments have been a long-standing challenge for SSA.
                                                                                  They can pose a financial hardship for beneficiaries responsible for
                                                                                  repaying the debt. They can also result in the loss of taxpayer dol-
                                                                                  lars either because beneficiaries do not repay their debts or be-
                                                                                  cause they are eligible to have their overpayment debts waived.
                                                                                     In light of these issues, past GAO work has highlighted the im-
                                                                                  portance of preventing, detecting, and recovering overpayments to
                                                                                  DI beneficiaries.
                                                                                     This testimony describes, one, the impact of overpayments on DI
                                                                                  beneficiaries and taxpayers; and SSA’s challenges with preventing,
                                                                                  detecting, and recovering improper payments; and related GAO rec-
                                                                                  ommendations.
                                                                                     GAO in past research have consistently found that the majority
                                                                                  of DI beneficiaries who have earnings above the limit called sub-
                                                                                  stantial gainful activity, or SGA, will receive an overpayment and
                                                                                  that the financial burden of these overpayments can be high.
                                                                                     In 2015, we reported that more than one-half of all DI overpay-
                                                                                  ments were paid to beneficiaries earning above SGA. Further, a
                                                                                  2019 study by Mathematica and SSA estimated that 71 percent of
                                                                                  DI beneficiaries with earnings above SGA received overpayments.
                                                                                  These overpayments lasted about 9 months and accrued about
                                                                                  $9,000.
                                                                                     In our 2021 study of the work incentive program called Ticket to
                                                                                  Work, we estimated that participants were twice as likely to re-
                                                                                  ceive overpayments than beneficiaries who were not participating
                                                                                  in the program. This is because Ticket participants are more likely
                                                                                  to earn above SGA than nonparticipants.
                                                                                     According to experts and SSA officials we interviewed, the fear
                                                                                  of an overpayment is a disincentive to participating in Ticket and
                                                                                  an ongoing issue for participants. We recommended that SSA iden-
                                                                                  tify the root causes of overpayments to Ticket participants and take
                                                                                  appropriate actions to address them.
                                                                                     In response, SSA conducted a study comparing the sources of
                                                                                  overpayments between Ticket participants and nonparticipants.
                                                                                  They found that the root causes of overpayments resulting from
                                                                                  work for Ticket participants were similar to other beneficiaries who
                                                                                  work. They included failure of beneficiaries to report work, failure




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                                                                                  of SSA to take timely actions to process work reports, and the com-
                                                                                  plexity of policies governing work activity and SGA.




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                                                                                     In addition to the burden on beneficiaries, overpayments impose
                                                                                  a toll on taxpayers. According to SSA’s OIG, overpayments attrib-
                                                                                  uted to disabled beneficiaries engaging in SGA have been a leading
                                                                                  cause of improper payments to the DI program, amounting to $755
                                                                                  million in taxpayer funds at risk in 2021.
                                                                                     Further, overpayments cost SSA in administrative expenses to
                                                                                  recover overpayments. And some overpayments are not recovered
                                                                                  at all. In each fiscal year, from 2018 to 2022, SSA collected an av-
                                                                                  erage of 18.5 percent of debts owed to it annually across its pro-
                                                                                  grams.
                                                                                     GAO has made a number of recommendations related to address-
                                                                                  ing overpayments. While SSA has made progress toward imple-
                                                                                  menting several of these recommendations, others remain
                                                                                  unimplemented. Of the 31 open recommendations, five pertain to
                                                                                  overpayments, and two of the five are priority recommendations.
                                                                                     The first has to do with preventing potential overpayments to in-
                                                                                  dividuals receiving concurrent Federal workers’ compensation bene-
                                                                                  fits. SSA and Labor have agreed to share workers’ compensation
                                                                                  data to prevent overpayments, but it is still a work in progress.
                                                                                     The second has to do with shifting from a minimum withholding
                                                                                  amount for repayments from $10 per month to 10 percent of bene-
                                                                                  fits, which could increase the size and speed of recovery. However,
                                                                                  as of February 2023, those plans were put on hold.
                                                                                     In summary, overpayments negatively affect DI beneficiaries and
                                                                                  taxpayers in several ways. Overpayments may place undue hard-
                                                                                  ship on conscientious DI beneficiaries who reported work yet faced
                                                                                  repaying large sums due to SSA delays. They also create a dis-
                                                                                  incentive for beneficiaries to pursue further work, and they place
                                                                                  a burden on taxpayers through overpayments that are waived or
                                                                                  never recover and the cost of recovering the debt.
                                                                                     While SSA has made efforts in recent years to prevent and detect
                                                                                  overpayments resulting from work, more remains to be done.
                                                                                     This concludes my prepared statement, and I would be happy to
                                                                                  answer any questions you may have at this time.
                                                                                     [The statement of Ms. Curda follows:]




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                                                                                                                                      49

                                                                                     Chairman FERGUSON. Thank you, Ms. Curda.
                                                                                     So now we will move to the question-and-answer section of this.
                                                                                     And, Commissioner, I would like to first talk about that chart
                                                                                  that you held up. And look, I get it. Most of—we are seeing a
                                                                                  growth in the program. We know we are going to see a growth in
                                                                                  the number of beneficiaries, but one of the things, I don’t think
                                                                                  that chart tells the whole picture of where we are. Okay.
                                                                                     I think—if I could, I think—do you all have the charts available
                                                                                  to put up?
                                                                                     I think it is important to note that the vast majority of the new
                                                                                  beneficiaries are retirees, correct? And the actual number of Social
                                                                                  Security disability claimants and those beneficiaries is going down.
                                                                                  Okay. And so I think—I think that is good. Obviously, we don’t
                                                                                  want our fellow Americans doing that.
                                                                                     But the reason this is important is to talk about how much it
                                                                                  costs to process a retirement claim versus a disability claim. How
                                                                                  much does it cost to process each one of those?
                                                                                     Ms. KIJAKAZI. I will have to take that back. I don’t have the
                                                                                  dollar amount to process each one of those.
                                                                                     I would also add that, while disability claims were going down,
                                                                                  particularly during the pandemic, they have begun—the applica-
                                                                                  tions have begun to increase.
                                                                                     Chairman FERGUSON. So, based on our estimates, it costs
                                                                                  about $255 to process a retirement claim, and it costs about $1,600
                                                                                  to process a disability claim. So there is a big difference.
                                                                                     And the—obviously, the work on the retiree benefit side has
                                                                                  great results, but we are seeing—we are still seeing this take too
                                                                                  long on the disability side.
                                                                                     So I think the, you know, the workload, if you, again, look over
                                                                                  at the chart that is up there, you will see that the disability side
                                                                                  of this is going—is—the curve is starting to bend down. Now, you
                                                                                  say it is going to go up, but we are not seeing significant growth
                                                                                  there, right?
                                                                                     I think the other thing that is important to point out is that it
                                                                                  takes—and this is based on you all’s numbers—it takes about $60
                                                                                  per year to—for a retiree benefit. Okay? But for disability, it is
                                                                                  about $271.
                                                                                     So I think our focus right now needs to be on how to eliminate—
                                                                                  really, how do we reduce these improper payments and make this
                                                                                  disability process go more smoothly.
                                                                                     So, without objection, I would like to have these charts entered
                                                                                  into the record.
                                                                                     [The information follows:]




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                                                                                     Chairman FERGUSON. But, again, I just—I don’t want to—I
                                                                                  don’t want us to just look at the one chart that you brought, be-
                                                                                  cause I don’t think it tells—I don’t think it tells the entire picture.
                                                                                     I think probably the biggest question that I have is that, you
                                                                                  know, in your written responses back to the questions that we had
                                                                                  earlier, when we talk about implementing the Payroll Information
                                                                                  Exchange, you said it is more reliable and accurate than the cur-
                                                                                  rent manual process, and it will improve payment accuracy and re-
                                                                                  duce reporting burdens.
                                                                                     If there is a better process, then I guess after 8 years, the ques-
                                                                                  tion is: Why have you all not implemented this program? I mean,
                                                                                  this is something that is—you know, even you all—you all acknowl-
                                                                                  edge that this is a better way of doing it. You are the commis-
                                                                                  sioner. You have got a great team around you that cares about
                                                                                  beneficiaries. Why not implement the program? Why not move
                                                                                  away from the manual processes and really engage in the Payroll
                                                                                  Information Exchange program?
                                                                                     Ms. KIJAKAZI. Mr. Ferguson, thank you for your question. We
                                                                                  have been working steadily to implement this important initiative.
                                                                                  Several factors require time. We had to obtain a payroll data pro-
                                                                                  vider that had the capacity to conduct the exchange. That took
                                                                                  some time. We had to obtain approval from beneficiaries to have
                                                                                  their earnings reported to SSA by the data provider. We have ob-
                                                                                  tained approval from over 10 million beneficiaries thus far. That
                                                                                  has taken time.
                                                                                     We had to conduct an accuracy test, which recently we were able
                                                                                  to complete, and we found that, as you indicated, successful results.
                                                                                     We published the Federal Register notice in January 2021. We
                                                                                  are finalizing the Notice of Proposed Rulemaking, and it will have
                                                                                  a timeline for implementation. So we are just about there.
                                                                                     Chairman FERGUSON. What do you think that timeline is? I
                                                                                  mean, it just seems—8 years seems like—on something as impor-
                                                                                  tant as this program, 8 years just seems like it is—something is
                                                                                  broken in the system to get—to go from start to 8 years and we
                                                                                  still don’t have the program.
                                                                                     So how much longer is this going to take?
                                                                                     Ms. KIJAKAZI. So we anticipate by the end of the year we
                                                                                  should have the publication of the Notice of Proposed Rulemaking.
                                                                                  And, during my tenure, I asked that we expedite this process for
                                                                                  getting the PIE in place.
                                                                                     Chairman FERGUSON. Okay. So, by the end of the year, we will
                                                                                  have the proposal for the rulemaking.
                                                                                     How long do you anticipate the rulemaking process to take?
                                                                                     Ms. KIJAKAZI. I will have to take that back, but I think that
                                                                                  we are nearly there.
                                                                                     Chairman FERGUSON. Nearly—and I don’t mean to—I am not
                                                                                  trying to—I am not trying to be—beat you up here, Doctor. But
                                                                                  ‘‘nearly there’’ meaning a year? Twelve months?
                                                                                     Ms. KIJAKAZI. Finalizing the Notice of Proposed Rulemaking is
                                                                                  about the last hurdle that we have, and I anticipate that we should
                                                                                  be able to do that by the end of the year.
                                                                                     Chairman FERGUSON. So you think this program could be oper-




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                                                                                  ational by the end of the year, or you just got the rule by the end
                                                                                  of the year.




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                                                                                     Ms. KIJAKAZI. The rule.
                                                                                     Chairman FERGUSON. Okay.
                                                                                     Ms. KIJAKAZI. And I can come back to you with more specifics
                                                                                  in terms of the timeline. We can provide you with a written re-
                                                                                  sponse on that.
                                                                                     Chairman FERGUSON. I think that would be helpful.
                                                                                     So I have also got a couple of letters here that I would like to
                                                                                  enter into the record that have your responses to the written ques-
                                                                                  tions that we have done earlier.
                                                                                     So I would like to enter those in as well.
                                                                                     [The information follows:]




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                                                                                     Chairman FERGUSON. And, again, I want to encourage you to
                                                                                  get this implemented as quickly as possible. I just think that we
                                                                                  have got too many Americans that this has a potential to burden
                                                                                  either from an overpayment or an underpayment. And getting a
                                                                                  better process in place than this manual system, which also should
                                                                                  reduce the need for personnel potentially, all of those things mat-
                                                                                  ter.
                                                                                     So I am going to encourage you. We can—you know, I don’t think
                                                                                  the answer can always be more money and more people. We have
                                                                                  got to work smarter with, you know, with better resource—with the
                                                                                  resources that we have.
                                                                                     So, with that, at this point I would like to yield to the ranking
                                                                                  member, Mr. Larson, for your questions.
                                                                                     Mr. LARSON. Thank you, Mr. Chairman. And thank you, Mr.
                                                                                  Chairman, for your line of questioning as well.
                                                                                     Let me say that I share a lot of the concerns that have been
                                                                                  raised by the chairman, especially with regard to an 8-year period
                                                                                  and being able to address these issues in a timely fashion. And,
                                                                                  certainly, everyone in Congress wants to see all of our agencies op-
                                                                                  erate as efficiently as they possibly can.
                                                                                     But my question to you, Dr. Kijakazi, is that if—I appreciate
                                                                                  your agency working to fix this problem. What is the top thing SSA
                                                                                  needs from Congress in order to provide better customer service to
                                                                                  beneficiaries trying to resolve these overpayments?
                                                                                     Ms. KIJAKAZI. We do need sustained, sufficient funding so that
                                                                                  we can hire the number of staff we need to cover all of the work-
                                                                                  loads, including the overpayment workload.
                                                                                     Mr. LARSON. What would that staff load be? And instead, you
                                                                                  are operating at flat-level funding. Is that not correct?
                                                                                     Ms. KIJAKAZI. That is what is in the legislation that addressed
                                                                                  the debt ceiling. It provided for level funding for fiscal year 2024,
                                                                                  which is actually a budget cut for Social Security because we have
                                                                                  fixed costs of about $700 million for fiscal year 2024, because we
                                                                                  have—we face increase—for example, increases in the rent on the
                                                                                  1,230 field offices across the country and the approximately 300
                                                                                  hearings offices. So we would be entering into 2024 with a substan-
                                                                                  tial cut.
                                                                                     We were able—with the increase in fiscal year 2023 funds, we
                                                                                  had the hiring surge. We brought on, I believe, more new hires
                                                                                  than we have ever done in SSA’s history within that limited period
                                                                                  of time, and we are up to about 60,000.
                                                                                     But, given attrition over the course of the year, if we have level
                                                                                  funding, we will have a hiring freeze, which means we cannot re-
                                                                                  place the people who leave. And so we will begin that decline in
                                                                                  our staffing once again and not have sufficient staff to handle the
                                                                                  workloads.
                                                                                     Mr. LARSON. The point of my question is that you don’t have
                                                                                  sufficient staff. And as we look going forward, and as much as we
                                                                                  would all like to see efficiencies out of the program, et cetera, is
                                                                                  there a more efficient program in the United States Government
                                                                                  than Social Security? What is your operating cost? I believe in in-
                                                                                  surance language, and I happen to be from an insurance area of




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                                                                                  the world, but you have like a 99 percent loss ratio.
                                                                                     Ms. KIJAKAZI. Right.




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                                                                                     Mr. LARSON. What does that mean, Commissioner?
                                                                                     Ms. KIJAKAZI. It means administrative costs of less than 1 per-
                                                                                  cent.
                                                                                     Mr. LARSON. So, you operate the largest insurance company—
                                                                                  the largest insurance operation in the country for 70 million people
                                                                                  at under 1 percent, and we are cutting you?
                                                                                     Of course, we would all like to see everything be more efficient
                                                                                  and as effective as it can be. But this is something that should be
                                                                                  highlighted. I am surprised that my colleagues on the other side of
                                                                                  the aisle aren’t glorifying the fact that, why, why don’t we look at
                                                                                  all of our agencies and see if they can operate at the same kind
                                                                                  of efficiency that you have?
                                                                                     And, yes, there is always room for improvement. But we are talk-
                                                                                  ing about human beings here, too, that are going to have questions.
                                                                                  And, as the form that the chairman raised earlier points out,
                                                                                  things can get pretty complicated. And so we need the staffing level
                                                                                  and we need the humanization in the process to make sure that
                                                                                  the public is getting these answers.
                                                                                     So, we want to make sure that you have the dollars that are
                                                                                  needed to invest in the personnel who can serve the public and con-
                                                                                  tinue to provide the Nation with the number one anti-poverty pro-
                                                                                  gram for the elderly and the number one economic development
                                                                                  program we have in every one of our districts. And instead, it is
                                                                                  flat funded and cut, and Congress hasn’t increased any benefit in
                                                                                  more than 52 years. How is that responsible?
                                                                                     Chairman FERGUSON. I would like to thank the ranking mem-
                                                                                  ber. But I also would just like to point out that in fiscal year 2023,
                                                                                  the administration’s budget was $14.13 billion. And that was an in-
                                                                                  crease of $785 million over fiscal year 2022. So there has been an
                                                                                  increase in funding.
                                                                                     With that, next I would like to yield to Mr. Estes from Kansas.
                                                                                     Mr. ESTES. Thank you, Mr. Chairman.
                                                                                     And thank you to our witnesses for joining us today.
                                                                                     You know, holding a hearing on Social Security is critical, as this
                                                                                  Federal program impacts all of our districts and constituents so
                                                                                  personally. In Kansas, there is more than 45,000 Social Security re-
                                                                                  cipients. So the discussions we have here today will certainly make
                                                                                  a difference in the lives of many Kansans and Americans.
                                                                                     With such a massive program, it is not hard to imagine that
                                                                                  there would be some small errors and potential mismanagement at
                                                                                  the Social Security Administration. However, the massive number
                                                                                  of improper payments is unacceptable, and it harms the Americans
                                                                                  we represent.
                                                                                     In fiscal year 2021, Social Security Administration made around
                                                                                  $2.5 billion in improper Old-Age and Survivors’ Insurance and Dis-
                                                                                  ability Insurance payments—$2.5 billion that weren’t managed cor-
                                                                                  rectly.
                                                                                     And here is the truth that we all know in the room, on both sides
                                                                                  of the aisle. The Social Security trust fund is already in danger of
                                                                                  insolvency, and overpayments in the amount of $2 billion a year
                                                                                  only threatens that insolvency even more.
                                                                                     Beneficiaries are largely not responsible for the improper pay-




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                                                                                  ments, yet they bear the brunt of their overpayments of which the
                                                                                  fiscal year 2021 number was about $2 billion, caused hardships as




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                                                                                  unknowing beneficiaries are forced to pay back the overpayments,
                                                                                  sometimes decades after the improper payments are made.
                                                                                     And the $518 million in underpayments from fiscal year 2021
                                                                                  prevents beneficiaries like seniors in Wichita or Pratt or Newton in
                                                                                  my district on a fixed income from being able to buy medicine or
                                                                                  put food on their table.
                                                                                     And high prices from Bidenflation are already causing seniors to
                                                                                  stretch their dollars, even after a larger-than-average cost of living
                                                                                  increase in Social Security to try to compensate for that increased
                                                                                  inflation. They shouldn’t be asked to make an even greater sacrifice
                                                                                  due to bureaucratic blunders at SSA.
                                                                                     The solutions to proactively prevent improper payments and
                                                                                  over—over and underpayments, instead of placing the burden on
                                                                                  American taxpayers by making them repay overpayments or wait
                                                                                  on the disbursements of underpayments, the fix should come out of
                                                                                  the Social Security Administration.
                                                                                     And the Administration already has some tools. Even before I
                                                                                  began my service in Congress, the 2015 law authorized entry into
                                                                                  payment information exchanges—Payroll Information Exchanges,
                                                                                  as our chairman mentioned earlier. Even the SSA said this will im-
                                                                                  prove accuracy. Yet 7 years later, as noted, it has not been imple-
                                                                                  mented. Then there are some recommendations from GAO and the
                                                                                  OIG. Again, some of these recommendations have not been imple-
                                                                                  mented.
                                                                                     And the fact of the matter is that Social Security Administration,
                                                                                  like all of our Federal agencies, should be in the business of help-
                                                                                  ing the American people, not looking for ways to make it easier to
                                                                                  do their jobs here in Washington, D.C.
                                                                                     The burden of improper payments should rest on the SSA, even
                                                                                  before such mismanagement can detrimentally impact American
                                                                                  citizens.
                                                                                     Ms. Curda, you mentioned a recommendation from SSA’s use of
                                                                                  computer matching to help reduce overpayments from the current
                                                                                  receipt of Federal workers’ compensation benefits and DI benefits.
                                                                                  Why did the GAO make this recommendation? What is the status
                                                                                  of the recommendation?
                                                                                     Ms. CURDA. Thank you for that question. Yes, back in 2015, we
                                                                                  found that SSA’s internal controls for helping prevent DI overpay-
                                                                                  ments due to the concurrent receipt of those worker compensation
                                                                                  benefits relies on beneficiaries’ self-reporting any of those benefits,
                                                                                  you know, the workers’ compensation benefits.
                                                                                     So what we found was that SSA could do more to leverage exist-
                                                                                  ing data to prevent overpayments to beneficiaries who are concur-
                                                                                  rently receiving those workers’ compensation benefits. So we rec-
                                                                                  ommended SSA strengthen its internal controls, and SSA has
                                                                                  taken steps toward implementing that recommendation. They have
                                                                                  been working with Department of Labor on a plan to establish com-
                                                                                  puter matching to exchange data with the Department of Labor.
                                                                                     However, as of February 2023, the plan is still a work in
                                                                                  progress. And we understand that systems would need to be put in




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                                                                                     Mr. ESTES. All right. Well, thank you. I am a big advocate of
                                                                                  let’s do it right the first time, and then we don’t have to go back
                                                                                  and fix those errors.
                                                                                     Acting Commissioner Kijakazi, I know that SSA is making hun-
                                                                                  dreds of millions of dollars in overpayments to some of the DI bene-
                                                                                  ficiaries who are also receiving the Federal workers’ compensation.
                                                                                     Do you have updates on where SSA stands on the data matching
                                                                                  with the Department of Labor to prevent these improper pay-
                                                                                  ments?
                                                                                     Ms. KIJAKAZI. As my co-witness indicated, we are making
                                                                                  progress with DOL on this, and she also indicated that it requires
                                                                                  systems improvements.
                                                                                     Systems improvements require sufficient funding to make those
                                                                                  improvements. So we are working with what we have and making
                                                                                  as much progress as we can.
                                                                                     Mr. ESTES. So, again, following along with her, is it—are you
                                                                                  going to be done by the end of the year? Is it next year?
                                                                                     Ms. KIJAKAZI. I will take that back, and we will provide you a
                                                                                  response in writing about the timeline for the completion.
                                                                                     Mr. ESTES. All right. Thank you very much. My time has ex-
                                                                                  pired.
                                                                                     I yield back.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     Next, the gentleman from New Jersey, Mr. Pascrell.
                                                                                     Mr. PASCRELL. Good morning, Mr. Chairman, afternoon, what-
                                                                                  ever it is. Been a long day so far.
                                                                                     And we already had a meeting this morning, which was a good
                                                                                  meeting. So we are still working, thanks to the chairman and the
                                                                                  ranking member.
                                                                                     You could almost predict what I am going to say, Mr. Chairman.
                                                                                  But let me have the chance to say it anyway.
                                                                                     Let’s set the record straight. Mr. Chairman, Chairman Ferguson,
                                                                                  who I respect tremendously, this hearing to me is another smoke
                                                                                  screen. It serves as a coverup for an extremist agenda to gut Social
                                                                                  Security. That is how I perceive it, when I look at the numbers,
                                                                                  when I look at all the suggestions.
                                                                                     And don’t forget. We go back a little ways. There is—we were
                                                                                  going to cut Social Security when I got into the Congress in the
                                                                                  late nineties. And the suggestion was from the President at that
                                                                                  time—I won’t mention his name. He is not important here. We are
                                                                                  looking at principle. Let’s increase the age where you are eligible.
                                                                                     Chairman FERGUSON. Was his name Eisenhower? Is that
                                                                                  about the time you got here, my dear friend?
                                                                                     Mr. PASCRELL. I will make believe I didn’t hear that.
                                                                                     Chairman FERGUSON. I am just teasing.
                                                                                     Mr. PASCRELL. The second way was to privatize Social Secu-
                                                                                  rity.
                                                                                     Now, when I was running for office in 1996 against an incum-
                                                                                  bent, when I was running, I went to my first campaign stop of sen-
                                                                                  ior citizens. And I thought they were going to ask me about all
                                                                                  things other than Social Security. Really. I didn’t really think it
                                                                                  was an issue at that time until I got to the Congress. I was fortu-




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                                                                                  nate enough to be elected. And then I saw the raising of age of eli-
                                                                                  gibility.




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                                                                                     And when you looked at the number, Madam Director, I mean,
                                                                                  you were blown away by what it did to Social Security in terms of
                                                                                  its bottom line, because that is what we are really talking about
                                                                                  here.
                                                                                     And so, cutting Social Security has a history. How you do it has
                                                                                  a history. How you camouflage it has a history. We thought in cut-
                                                                                  ting—in adding the age limit, going up to 97—or 67—you are lis-
                                                                                  tening—going up to 67, you know, wasn’t really supposed to affect
                                                                                  the bottom line of Social Security. It did. It did.
                                                                                     And isn’t it true, Madam Director, isn’t it true, correct me if I
                                                                                  am wrong, that every year we raise the retirement age, it is a 7
                                                                                  percent cut in the benefits of Social Security? Is that true or false?
                                                                                     Ms. KIJAKAZI. True. Our actuary, our chief actuary at the So-
                                                                                  cial Security Administration has reviewed the effects of raising the
                                                                                  retirement age. And, yes, it is about 7 percent a year.
                                                                                     Mr. PASCRELL. Thank you.
                                                                                     So I don’t question that we should be looking at it to see if oper-
                                                                                  ations cost more than they should. In fact, that is what we were
                                                                                  talking about this morning. See, it just happened we were talking
                                                                                  about the same thing on the same day.
                                                                                     It is one of our Nation’s greatest success stories. You have heard
                                                                                  the chairman. You have said it yourself. You have said it, Ranking
                                                                                  Member.
                                                                                     It has lifted more Americans out of poverty than any other Fed-
                                                                                  eral program. In fact, I believe that if we were to get the principles
                                                                                  that we—how Social Security was laid out, we wouldn’t have as
                                                                                  many problems in Federal programs as we do right now.
                                                                                     So, there is 90 years here. After 90 years, Social Security still
                                                                                  stands as a monument to decency, dignity, and hardworking Amer-
                                                                                  icans. We are proud of this program. Republicans are proud. Demo-
                                                                                  crats are proud.
                                                                                     Yet through that storied history, Social Security has been under
                                                                                  attack. We always want to make it cheaper, if possible. How you
                                                                                  do that, no one has really figured out, except that we have put in
                                                                                  these alternatives and it doesn’t work.
                                                                                     Chairman FERGUSON. Will my dear friend——
                                                                                     Mr. PASCRELL. Yes, sir.
                                                                                     Chairman FERGUSON [continuing]. Acknowledge that he is 29
                                                                                  seconds over his time?
                                                                                     Mr. PASCRELL. Well, I know that you would give me a little bit
                                                                                  more time——
                                                                                     Chairman FERGUSON. I will give you——
                                                                                     Mr. PASCRELL [continuing]. If I asked.
                                                                                     Chairman FERGUSON. Okay. You didn’t even have to ask, and
                                                                                  I gave it to you.
                                                                                     Mr. PASCRELL. Thank you.
                                                                                     Chairman FERGUSON. So——
                                                                                     Mr. PASCRELL. I am almost done.
                                                                                     Chairman FERGUSON. Well, I believe—because we got a lot to
                                                                                  do today and I know your passion for this, Billy, I really do. And




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                                                                                  we do share the same—the same view that cutting benefits is not—
                                                                                  is not the right path. So we share that.




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                                                                                     Mr. PASCRELL. Well, don’t—don’t say that, Mr. Chairman, be-
                                                                                  cause your own study committee came up with a report that does
                                                                                  exactly that now.
                                                                                     Chairman FERGUSON. Well——
                                                                                     Mr. PASCRELL. I am trying to be kind and charitable here
                                                                                  today.
                                                                                     Chairman FERGUSON. And—but this committee has not, and
                                                                                  nothing will go through this committee that does. So with that——
                                                                                     Mr. PASCRELL. Thank you. I am glad to hear that.
                                                                                     Chairman FERGUSON. So with that, I will yield now to the gen-
                                                                                  tleman from Utah, Mr. Moore.
                                                                                     Mr. MOORE. Thank you, Chairman.
                                                                                     And I echo my colleague from New Jersey appreciation for keep-
                                                                                  ing us working. So thank you.
                                                                                     Thank you to the witnesses for being here today.
                                                                                     So what have we established? I have heard that you all have a
                                                                                  big job to do. And I appreciate you, and I thank you for the work
                                                                                  that you do to implement the largest budget item that we have. It
                                                                                  is a huge responsibility, and you do a lot of good.
                                                                                     And so I wanted to highlight something that I have started with
                                                                                  in a bipartisan fashion. It is called the What Works Caucus. This
                                                                                  group is on the—it is in its infancy, but it kind of—going in from
                                                                                  my previous experience in management consulting, coming to Con-
                                                                                  gress, two vastly different experiences, I will say, as far as produc-
                                                                                  tivity goes, I actually still want to bring some of that to here.
                                                                                     And I think there is a real desire for members on both sides of
                                                                                  the aisle to identify what programs work well, what—what best
                                                                                  practices do we have. And I would offer that the Social Security
                                                                                  Administration has experienced a long history of doing a very im-
                                                                                  portant job. And with that, there, you know, totaling upwards to
                                                                                  $16 billion in the last 4 or 5 years, that is still a big number as
                                                                                  well.
                                                                                     So I can recognize when things are good. I can recognize when
                                                                                  we have got areas to improve, and that is what I want to focus my
                                                                                  questions on.
                                                                                     So this caucus, it is a sincere group of individuals that want to
                                                                                  use data to find ways to improve some of the things that we have
                                                                                  implemented. We cannot be a body that implements something and
                                                                                  then just lets it exist for too long, and we have got to be able to
                                                                                  introspectively look and take a look. So I welcome you and your
                                                                                  thoughts and identify that our office is open to finding ways to do
                                                                                  this.
                                                                                     The question I want to at least highlight—and I would love to
                                                                                  hear some perspective, first, from Ms. Eickman and then Dr.
                                                                                  Kijakazi—automation, right? I know that it is not the—you can’t
                                                                                  automate everything, and I know that workforce requires—work-
                                                                                  force is important. But there—you know, as the demand is—is put
                                                                                  on you for the job to do, for the next 20, 30 years, what areas can
                                                                                  we—can we embrace automation?
                                                                                     Robotics was mentioned in your testimony actually. SSA began
                                                                                  using robotic process automation, which involves the use of soft-
                                                                                  ware to automate high-volume, labor-intensive, or repeatable tasks.




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                                                                                  This allows employees to focus their efforts on more complex ac-
                                                                                  tions.




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                                                                                    I love that. That is a great—that is a great initiative, and I
                                                                                  would just love to give you a moment to sort of give us your per-
                                                                                  spective on how is it going, what areas need to work on that.
                                                                                    And then, Dr. Kijakazi, if you could add your perspective to that
                                                                                  when she finishes, please.
                                                                                    Ms. EICKMAN. Thank you for the question. Yes, the audit
                                                                                  looked at a few areas where the agency is using those robotics proc-
                                                                                  ess automation and has found time savings in using those tools.
                                                                                    And so, as part of our audit, we recommended that SSA further
                                                                                  investigate the use of those tools, the cost effectiveness, and wheth-
                                                                                  er they can be used for additional workloads.
                                                                                    With the tools that are in use, however, we found that it is a
                                                                                  very—only about half of the licensed users are actually using the
                                                                                  tools. And so we also recommended that the agency require its em-
                                                                                  ployees to use those tools whenever possible.
                                                                                    Mr. MOORE. Excellent.
                                                                                    Ma’am, anything to add about your—any recommendations, find-
                                                                                  ing either greater efficiencies and accuracy to reduce improper pay-
                                                                                  ments particularly but in general?
                                                                                    Ms. KIJAKAZI. Yes. So in my site visits across the country, we
                                                                                  have learned about the robotics and the effectiveness of them, and
                                                                                  we are encouraging them to continue with the innovation of this
                                                                                  and implementation to the extent that we can within our budget.
                                                                                    In addition, I would like to add—didn’t have time to cover this
                                                                                  in my testimony—that we have worked steadily to reduce overpay-
                                                                                  ments. And we—as a result, we have the low overpayment rate of
                                                                                  one half of 1 percent for Social Security and 8 percent for SSI. And
                                                                                  the way that we have been able to do this is by doing just as you
                                                                                  said, using data to make improvements.
                                                                                    We have our annual payment accuracy reviews to identify over-
                                                                                  payments and the reasons for them. And then the results of these
                                                                                  reviews are used by our improper payment board to conduct root
                                                                                  cause analysis and to identify policies and processes that need im-
                                                                                  provement.
                                                                                    Over the last year, we have taken additional steps. We simplified
                                                                                  the waiver request form that was referred to earlier. And we—as
                                                                                  I indicated before, I asked our staff to expedite the Payroll Infor-
                                                                                  mation Exchange, and we are nearing the end of that and doing
                                                                                  the implementation.
                                                                                    And I recently established a comprehensive review of overpay-
                                                                                  ments. It will be led by an experienced SSA executive and will
                                                                                  cover everything from factors contributing to overpayments, to the
                                                                                  notices that we send to beneficiaries and how those can be made
                                                                                  clear, and the policies and procedures and the systems that can
                                                                                  make this a more efficient process.
                                                                                    Mr. MOORE. Is this group part of the Improper Payments Pre-
                                                                                  vention Team? Is that a different group that you have—that you
                                                                                  have implemented or working with?
                                                                                    Ms. KIJAKAZI. So the team that I just mentioned is a newly es-
                                                                                  tablished team, just got underway last week.




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                                                                                    Mr. MOORE. Will that move away from IPPT or will they be
                                                                                  working in conjunction?




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                                                                                    Ms. KIJAKAZI. The team that I put in place is taking a com-
                                                                                  prehensive look. So they will look at IPPT, as well as other work
                                                                                  that is being done. So it is a top-to-bottom comprehensive review.
                                                                                    Mr. MOORE. Thank you.
                                                                                    I yield back. Appreciate it.
                                                                                    Chairman FERGUSON. Thank you.
                                                                                    Next, the gentlelady from California, Ms. Sánchez.
                                                                                    Ms. SÁNCHEZ. Thank you, Chairman and Ranking Member
                                                                                  Larson.
                                                                                    I think everybody up here can agree that overpayments that we
                                                                                  are discussing today can be confusing and sometimes even dev-
                                                                                  astating for American seniors and people with severe disabilities
                                                                                  who rely on those benefits to survive and can be shocked that they
                                                                                  have been receiving overpayments.
                                                                                    Just a few weeks ago, I had a constituent reach out to my office
                                                                                  about that very issue. Her son had been receiving these overpay-
                                                                                  ments. And it was quite distressing to them to realize that, you
                                                                                  know, they were essentially on the hook for the overpayments that
                                                                                  he had been receiving.
                                                                                    But it doesn’t escape my notice that years of underfunding has
                                                                                  severely eroded the Social Security Administration’s customer serv-
                                                                                  ice. And you guys have a big job to do. And I think, given the vol-
                                                                                  ume of work that you have to do and the fact that you use 1 per-
                                                                                  cent of revenue to service millions of people effectively, is not lost
                                                                                  on me. That is a very efficiently run organization, and I would
                                                                                  struggle to think of any, you know, Fortune 500 company who has
                                                                                  as good a track record in terms of what they are given to work with
                                                                                  and what they are able to accomplish with what they are given.
                                                                                    Just last year, SSA testified in front of this very subcommittee
                                                                                  that the agency staffing had reached a 25-year low. That means
                                                                                  fewer staff to assist beneficiaries like my constituent’s son who had
                                                                                  been receiving, again, those overpayments beyond the allocated
                                                                                  amount that he was supposed to receive.
                                                                                    Now, we often hear from my colleagues on the other side of the
                                                                                  aisle demanding that Social Security cuts, you know, be made.
                                                                                  And, in my opinion, that would just further undermine the eco-
                                                                                  nomic security of, oh, 66 million Americans who rely, many of
                                                                                  them, solely on those benefits for their retirement.
                                                                                    And, in addition, those, you know, budget cuts would slash fund-
                                                                                  ing for an agency that is clearly already underfunded, creating,
                                                                                  again, a bigger stress in their ability to provide the kind of cus-
                                                                                  tomer service that all of our constituents need and deserve.
                                                                                    Because SSA is understaffed and under resourced, it makes it
                                                                                  more difficult to correct issues like overpayments when they actu-
                                                                                  ally occur. So, it is pretty clear to me that, you know, slashing
                                                                                  funding isn’t the—you know, isn’t the solution to the problem that
                                                                                  we are seeing here.
                                                                                    It is clear that perhaps more resources need to be focused on
                                                                                  those, you know, error points in order to try to have the staff and
                                                                                  have the resources necessary to correct those problems or prevent
                                                                                  those problems from happening in the first place. But, you know,




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                                                                                  this demand, this continual demand to cut, cut, deep cuts, deep
                                                                                  cuts to our budget, you know, isn’t going to help anything.




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                                                                                     House Republicans have proposed to slash funding for Social Se-
                                                                                  curity by 30 percent. And just 3 weeks ago, as a matter of fact,
                                                                                  every Republican member on the Committee on Ways and Means
                                                                                  voted for that 30 percent cut to Social Security.
                                                                                     Commissioner Kijakazi—and I hope I pronounce that correctly—
                                                                                  what would happen to SSA’s customer service if the agency’s budg-
                                                                                  et was slashed by 30 percent? Specifically, how would that affect
                                                                                  SSA’s ability to improve customer service for seniors and people
                                                                                  with disabilities who might be trying to resolve an issue of overpay-
                                                                                  ment?
                                                                                     Ms. KIJAKAZI. It would be more of a crisis than what we are
                                                                                  experiencing now.
                                                                                     This gap between staffing and increased beneficiaries, that is a
                                                                                  crisis that we have been working through. And, this year—yes, Mr.
                                                                                  Ferguson—with the increase in funds that we received for fiscal
                                                                                  year 2023, we pushed that money into hiring, and we brought on
                                                                                  7,800 new hires to get us back up to about 60,000.
                                                                                     But, if we receive a cut of that magnitude, 30,000, what would
                                                                                  happen is that many of the offices in your districts would have to
                                                                                  close. We would not have the staff to be able to operate those of-
                                                                                  fices or the funds available to pay for the rent for those offices.
                                                                                     Ms. SÁNCHEZ. Do you control the rent that you pay in those
                                                                                  field offices?
                                                                                     Ms. KIJAKAZI. We work with—so the field offices, some we work
                                                                                  with GSA on; others we are working with the private sector. But
                                                                                  there are increases in rent that we have to cover for those field of-
                                                                                  fices.
                                                                                     Ms. SÁNCHEZ. I imagine that rent is probably not the only
                                                                                  thing that you have seen increase in cost over time that your agen-
                                                                                  cy has to deal with.
                                                                                     Ms. KIJAKAZI. No.
                                                                                     Ms. SÁNCHEZ. Could you maybe elaborate on some of the other
                                                                                  costs that have gone up?
                                                                                     Ms. KIJAKAZI. The increases in salaries for our employees and
                                                                                  the increases in benefits that we provide for them so that they will
                                                                                  be economically secure when they retire.
                                                                                     Ms. SÁNCHEZ. I appreciate your testimony today.
                                                                                     And I yield back, Mr. Chairman.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     I would like to enter into the record now a letter that I wrote
                                                                                  to the GAO Office of Inspector General looking at the IT budget
                                                                                  and how you all implement it, who is responsible for it.
                                                                                     You have got about a $2-billion-a-year IT budget. And, you know,
                                                                                  we have spent roughly $18 billion over the last 10 years. So that
                                                                                  is a lot of money, and, you know, we, quite candidly, just want to
                                                                                  see the accountability for that so we can understand, when you say
                                                                                  that you need additional funding, you know, that you can’t—you
                                                                                  know, quite candidly, I mean, that is a lot of money coming in just
                                                                                  on the IT side every year.
                                                                                     So I would like to enter that letter in, without objection.




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                                                                                     Chairman FERGUSON. And, as we go through this, again, there
                                                                                  is going to be a lot of debate, you know, on the importance of this
                                                                                  program, but, again, today, our focus is on how do we prevent im-
                                                                                  proper payments.
                                                                                     Because I think what is getting lost in it—and, again, we all ap-
                                                                                  plaud the good work that so many do in the agency, in the adminis-
                                                                                  tration. But we are talking about $2.5 billion a year in improper
                                                                                  payments on Social Security and about $7.5 billion, you know, if
                                                                                  you add in disability. So it is still a massive amount of money. And
                                                                                  we have to get that piece right. And we have to cut that—we have
                                                                                  to cut down on that.
                                                                                     So, with that, I will now yield to the gentleman from Iowa, Mr.
                                                                                  Feenstra.
                                                                                     Mr. FEENSTRA. Thank you so much, Chairman Ferguson and
                                                                                  Ranking Member Larson.
                                                                                     And I think Chairman Ferguson nailed it on the head, is that,
                                                                                  you know, the bottom line is, we have to find solutions to improper
                                                                                  payments. And this could be overpayment and it could be under-
                                                                                  payment; it can be both.
                                                                                     And I don’t think it helps anybody in this room when we politi-
                                                                                  cize this. It just seems like I hear that in several discussions that
                                                                                  have been created in here. It is like, let’s get to solutions.
                                                                                     So that is what I want to talk about.
                                                                                     Ms. Curda, I am thinking about my district, and I am thinking
                                                                                  about my constituents and the calls that I get, right? So I am a
                                                                                  frontline person. The constituent innocently says, hey, I got this
                                                                                  letter, blah, blah, blah, I need help.
                                                                                     So our next step is calling the administration. And I am just try-
                                                                                  ing to figure out what solutions can we have. You know, there are
                                                                                  extra steps. My district handles these casework loads, and it seems
                                                                                  like we have extra delays based on these mix-ups, correct?
                                                                                     Can you explain what processes should be improved that would
                                                                                  improve rectifying improper payment errors in a timely fashion
                                                                                  after they have been found?
                                                                                     And this can be the error on the person too. I mean, it goes both
                                                                                  ways.
                                                                                     But do you have any solutions to trying to create a shorter time-
                                                                                  frame when these things happen?
                                                                                     Ms. CURDA. Our work has focused on things like prevention and
                                                                                  recovery and so forth. We haven’t looked at the timeliness, that
                                                                                  piece of it, the timeliness of getting that resolved. And it might be
                                                                                  better directed at the OIG or SSA, that question.
                                                                                     Mr. FEENSTRA. Okay.
                                                                                     Would you have any—can you answer that question?
                                                                                     Ms. EICKMAN. Could you rephrase the question, please?
                                                                                     Mr. FEENSTRA. Yeah. So my question is, what solutions do we
                                                                                  have?
                                                                                     So we have a massive time delay. When a constituent often gets
                                                                                  a letter and says I have overpaid, underpaid, whatever it might be,
                                                                                  and we try to do our constituent work, and it takes months to try
                                                                                  to rectify that problem, there has to be a solution here.




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                                                                                     I mean, what can we do to, you know—total quality management
                                                                                  here—to shorten that timeframe?




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                                                                                     Ms. EICKMAN. The OIG hasn’t done any audit work to look at
                                                                                  the timeframe from when a beneficiary is notified of the overpay-
                                                                                  ment to when any further action has been taken. That is something
                                                                                  that we can consider for future audit work.
                                                                                     Mr. FEENSTRA. Yeah.
                                                                                     Could I talk to Acting Administrator Kijakazi?
                                                                                     Ms. KIJAKAZI. ‘‘Kijakazi.’’
                                                                                     Mr. FEENSTRA. There you go.
                                                                                     Ms. KIJAKAZI. You got it.
                                                                                     Mr. FEENSTRA. Yes. What are your thoughts on that?
                                                                                     Ms. KIJAKAZI. So the intent of the Payroll Information Ex-
                                                                                  change is just that, to have the earnings of beneficiaries reported
                                                                                  automatically, and so then the adjustment to benefits can be made
                                                                                  timely, automatically.
                                                                                     So that is what we are trying to put in place. And, yes, it has
                                                                                  taken time, but it is important that it is done right so that we are
                                                                                  not creating additional errors. And so we have taken the steps to
                                                                                  do this right, and we have expedited it.
                                                                                     But this is one way to reduce that timeline between when a
                                                                                  change occurs and when an adjustment is made.
                                                                                     Mr. FEENSTRA. Yeah. I would urge you, if possible, to audit and
                                                                                  try to figure out how you can narrow that timeframe. Because on
                                                                                  the other end is somebody that is worried about that over- or un-
                                                                                  derpayment, whatever they are owed or not owed. And as me,
                                                                                  being on the front lines with that constituent, you know, there is
                                                                                  a lot of uncertainty and angst, and we are trying to resolve that
                                                                                  if possible.
                                                                                     Ms. KIJAKAZI. I understand.
                                                                                     Mr. FEENSTRA. Yep.
                                                                                     And, then, if I could ask: On the Ticket to Work program, sort
                                                                                  of the same situation.
                                                                                     So, on the Ticket to Work program, Administrator, why is the
                                                                                  SSA limiting the Employment Network’s, the EN’s, role in assist-
                                                                                  ing ticket-holders in reporting wages? Is this an official policy of
                                                                                  the SSA and included in the Program Operations Manual System?
                                                                                     Ms. KIJAKAZI. So I would like to take that question back. We
                                                                                  have a component that works specifically on Ticket to Work and
                                                                                  does research on that. So I would like to be able to provide you
                                                                                  with a specific response to your question, so I will take that back.
                                                                                     Mr. FEENSTRA. Yeah, I would like that. I just think that there
                                                                                  is so much on that employee network, what can be done. I think
                                                                                  there are efficiencies that can be made there also, but we have to
                                                                                  allow that to play out.
                                                                                     So, with that, thank you for being here.
                                                                                     And I yield back.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     Next, we will go to the gentleman from Florida, Mr. Steube.
                                                                                     Mr. STEUBE. Thank you, Mr. Chairman.
                                                                                     We are here today because of the failure of the Social Security
                                                                                  Administration to administer payments to beneficiaries. Over the
                                                                                  last 5 years, the Social Security Administration made roughly
                                                                                  $13.9 billion in overpayments and $2.5 billion in underpayments.




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                                                                                     According to an investigation by KFF Health News and Cox
                                                                                  Media Group that was published last month, lower-income Ameri-




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                                                                                  cans across the country, including individuals receiving disability
                                                                                  benefits, are being called on to repay the government in amounts
                                                                                  that are in the tens of thousands of dollars.
                                                                                     In a disclosure covering some of the programs involved—Old-Age,
                                                                                  Survivors, and Disability Insurance, what we refer to as Social Se-
                                                                                  curity and Disability Insurance—the agency reported issuing about
                                                                                  $2 billion of overpayments in the 2022 fiscal year, of which about
                                                                                  $1.5 billion was, and I quote, ‘‘within agency control.’’
                                                                                     The process to resolve these issues is difficult and time-demand-
                                                                                  ing. And the victims of this failure from the government are vir-
                                                                                  tually all senior citizens or individuals with significant disabilities.
                                                                                     Ordinary citizens are being punished for government failure and
                                                                                  distracting them from living their basic life, which for many is
                                                                                  overcoming and battling the disabilities that cause them to need
                                                                                  assistance in the first place.
                                                                                     Imagine living paycheck to paycheck with no savings as a result
                                                                                  of an injury preventing you from working again and receiving a
                                                                                  message from the Federal Government saying you owe them tens
                                                                                  of thousands of dollars because of the government’s mistake, not
                                                                                  your mistake.
                                                                                     The Biden administration’s Social Security Administration has
                                                                                  failed the American people, and the result of their failure is to de-
                                                                                  mand the American people pay for the mistakes of the Biden ad-
                                                                                  ministration.
                                                                                     I am still waiting for the day when someone in the administra-
                                                                                  tion will be held accountable. No one in the Department of Defense
                                                                                  has been held accountable for our Afghan withdrawal. No one at
                                                                                  Department of Homeland Security has been held responsible for
                                                                                  our immigration crisis. No one at Department of Justice has been
                                                                                  held responsible for weaponizing law enforcement against political
                                                                                  opponents. No one at the Department of Energy has been held re-
                                                                                  sponsible for crippling our domestic energy. And it is my guess,
                                                                                  based on seeing a thing or two in the Biden administration, that
                                                                                  no one in the Social Security Administration will be held respon-
                                                                                  sible for these over- and underpayments.
                                                                                     The Social Security Administration affects almost 67 million
                                                                                  Americans that receive benefits each year. Improper payments
                                                                                  made by the SSA have affected millions of Americans, according to
                                                                                  the Urban Institute, where the Commissioner was previously a fel-
                                                                                  low.
                                                                                     Again, we are talking about senior citizens and Americans with
                                                                                  significant disabilities, and we have an administration that is pun-
                                                                                  ishing them for their mistakes.
                                                                                     Commissioner, referring to the $2 billion in overpayments in
                                                                                  2022, of which 75 percent of that was, quote, ‘‘within the agency’s
                                                                                  control,’’ the Social Security Administration said, and I quote, ‘‘The
                                                                                  beneficiary or third party provided the information we requested,
                                                                                  but we failed to use the data or information to validate accuracy
                                                                                  prior to making a payment.’’
                                                                                     So I ask, who in the Social Security Administration is failing the
                                                                                  American people?




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                                                                                     Ms. KIJAKAZI. I disagree with your assumption that someone in
                                                                                  the Social Security Administration is failing the American people.




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                                                                                     Mr. STEUBE. So who made those mistakes, then? Because there
                                                                                  is $2 billion in overpayment in 2022 that was not the fault of the
                                                                                  taxpayer, correct? It was not the fault of the taxpayer in the over-
                                                                                  payment, correct?
                                                                                     Ms. KIJAKAZI. I will take a look at the numbers that you are
                                                                                  providing——
                                                                                     Mr. STEUBE. Well, that is the whole purpose of this hearing, is
                                                                                  the overpayments.
                                                                                     So the overpayments for my—what is being reported that I just
                                                                                  cited from your own agency is not due to the fault of the taxpayer.
                                                                                  Is that correct?
                                                                                     Ms. KIJAKAZI. There are overpayments that are not due to the
                                                                                  fault of the taxpayer.
                                                                                     Mr. STEUBE. Okay. So those that are not due to the fault of the
                                                                                  taxpayer, regardless of what the number is—we are talking billions
                                                                                  of dollars—who within the administration is being held accountable
                                                                                  for the mistakes that the Social Security Administration is mak-
                                                                                  ing?
                                                                                     Ms. KIJAKAZI. We are holding ourselves accountable by——
                                                                                     Mr. STEUBE. How are you doing that?
                                                                                     Ms. KIJAKAZI. By assiduously working to reduce the overpay-
                                                                                  ments through the steps that I just told you about, which I will re-
                                                                                  iterate and start out first with: Our overpayment rates are low, at
                                                                                  one-half of 1 percent for Social Security and 8 percent for SSA. And
                                                                                  we were able to reduce them to that amount by taking steps such
                                                                                  as annual payment accuracy reviews to identify overpayments and
                                                                                  the reason for them. And then the results of these reviews are used
                                                                                  by our improper payment boards to conduct root-cause analysis and
                                                                                  to identify policies and process enhancements.
                                                                                     And, over the past year, as I indicated, we have simplified the
                                                                                  waiver request form——
                                                                                     Mr. STEUBE. All right. Well, I have only got 30 seconds left, so
                                                                                  I don’t mean to interrupt you, but my time is limited.
                                                                                     So I want to go to page 5 of your testimony. And you state, and
                                                                                  I quote, ‘‘Our goal is to ensure that overpayment recovery does not
                                                                                  unduly burden those in underserved, vulnerable, or marginalized
                                                                                  communities.’’
                                                                                     Are you referring to minority communities in that statement?
                                                                                     Ms. KIJAKAZI. We are referring to very low-income communities
                                                                                  as well as communities of color or who are facing other barriers.
                                                                                     Mr. STEUBE. So are you going to be treating someone of a dif-
                                                                                  ferent race differently based on the law just because they are in a
                                                                                  marginalized or a racial different community?
                                                                                     Ms. KIJAKAZI. What we do is work with whoever has an over-
                                                                                  payment who is going to have difficulty repaying that. And that is
                                                                                  not based on race or gender or anything else that you just indi-
                                                                                  cated. That’s——
                                                                                     Mr. STEUBE. Well, I am using your words, not mine. You said
                                                                                  ‘‘underserved, vulnerable, or marginalized communities.’’ I am try-
                                                                                  ing to understand what that is.
                                                                                     Ms. KIJAKAZI. And I am clarifying——




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                                                                                     Mr. STEUBE. The role of the Social Security Administration is
                                                                                  to administer payments to beneficiaries fairly. And that statement




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                                                                                  of yours is inconsistent with that mission. We should be treating
                                                                                  all Americans the same.
                                                                                     I yield back.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     Next, my friend from Michigan, Mr. Kildee, you are recognized.
                                                                                     Mr. KILDEE. Thank you, Mr. Chairman. And thanks for holding
                                                                                  this very important hearing.
                                                                                     I do agree with some of the comments made by my colleagues,
                                                                                  particularly those concerned about the Social Security Administra-
                                                                                  tion not having adequate resources in order to prevent all sorts of
                                                                                  problems, including overpayments. Because, at the end of the day,
                                                                                  no senior struggling to make ends meet should be pushed further
                                                                                  into poverty because of any mistake in overpayment or anything
                                                                                  else.
                                                                                     And just following up on my colleague who just finished, Con-
                                                                                  gress has some responsibility, if we really want to take this to who
                                                                                  is responsible, if Congress continues to fail to provide the Social Se-
                                                                                  curity Administration the resources it needs to address the whole
                                                                                  range of problems that you are charged with.
                                                                                     It is an easy thing to do, to sit up on this dais and blame the
                                                                                  people who are being under-resourced to do a job that is difficult
                                                                                  for them to do because Congress isn’t doing its job.
                                                                                     So, I am not asking you to comment on that. I just would like
                                                                                  to make that a part of the record.
                                                                                     But I would like to take this opportunity to just address an unre-
                                                                                  lated issue, and it is the impact of the declining value of Supple-
                                                                                  mental Security Income personal needs allowances.
                                                                                     This is an issue that has come to my attention over the years,
                                                                                  but, most recently, an older gentleman in my district, who is se-
                                                                                  verely disabled, lives in a nursing home—he has for about 6 years
                                                                                  now, and he relies on the personal needs allowance, PNA, for the
                                                                                  basics—a new pair of socks when the old ones wear out, toiletries
                                                                                  that he doesn’t get from the nursing home, something as simple as
                                                                                  a birthday card for his grandchildren. It has gotten harder for him
                                                                                  to do those very simple things because of the lack of support
                                                                                  through the personal needs allowance.
                                                                                     And this is not just a problem in my district. We have it all
                                                                                  across the country in every one of the States and districts rep-
                                                                                  resented on this dais. Over 100,000 people in this country rely on
                                                                                  those payments.
                                                                                     When we last updated PNAs, we set a floor at $30 a month for
                                                                                  an individual, but without any mechanism to accommodate the ris-
                                                                                  ing cost of basic goods and services, like we do with the Social Se-
                                                                                  curity Supplemental Security Income payments themselves. Unlike
                                                                                  that, the value of PNAs has, in real dollars, dropped.
                                                                                     That means that the most vulnerable seniors with severe disabil-
                                                                                  ities living out their later days in a nursing home find it harder
                                                                                  and harder to take care of themselves. And that is just unaccept-
                                                                                  able. It is something we need to address.
                                                                                     And I wonder if you know—and if not, I can maybe offer a
                                                                                  thought on—how long it has been since we increased that number




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                                                                                  for the PNAs for people who rely on those.
                                                                                     Ms. KIJAKAZI. 1987.




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                                                                                     Mr. KILDEE. 1987. So, when you think about the value of $30
                                                                                  in 1987 and what it can purchase today, it is a pretty big dif-
                                                                                  ference. Thirty dollars is worth about $12 in today’s terms. That is
                                                                                  a 60-percent loss of value.
                                                                                     And so, from my perspective, I just wonder if you could com-
                                                                                  ment—because I am sure you hear of more of these cases than we
                                                                                  do—what impact that has on the lives of people who are just trying
                                                                                  to make ends meet.
                                                                                     Ms. KIJAKAZI. Well, it certainly makes their lives much more
                                                                                  difficult, at a time when, as you said, they are very elderly and
                                                                                  they are in nursing homes or what have you. It is already kind of
                                                                                  a tough situation, and to not have sufficient PNA just makes it
                                                                                  harder.
                                                                                     Mr. KILDEE. So, if we were to make the decision as a Congress
                                                                                  that we are going to apply the same principle to personal needs al-
                                                                                  lowance that we do to other aspects of this benefit, something as
                                                                                  simple as a cost-of-living allowance based on the index that is ap-
                                                                                  plied to Social Security Supplemental Security Income payments
                                                                                  themselves, would that make sense to you?
                                                                                     Ms. KIJAKAZI. So I am not able to provide an opinion about a
                                                                                  policy. But what SSA does do is to provide technical assistance,
                                                                                  and also our Office of the Chief Actuary will cost out the impact
                                                                                  of it.
                                                                                     Mr. KILDEE. Well, I appreciate that, and I hope we can work
                                                                                  together on that.
                                                                                     And I know this is—I hope—a concern that is shared across the
                                                                                  dais and across the aisle here. I am sure that it must be. And per-
                                                                                  haps we can work together to make sure we address this really im-
                                                                                  portant question.
                                                                                     Thank you all very much. Thank you all for your testimony and
                                                                                  for the work that you do every single day.
                                                                                     I yield back.
                                                                                     Chairman FERGUSON. I thank the gentleman.
                                                                                     Now, the gentleman from Tennessee, Mr. Kustoff, you are now
                                                                                  recognized.
                                                                                     Mr. KUSTOFF. Thank you, Mr. Chairman.
                                                                                     Thank you to the ranking member.
                                                                                     And thank you to the witnesses for appearing today.
                                                                                     Acting Commissioner Kijakazi, if I could, if I could ask you about
                                                                                  notification, because I think you talked about this in your testi-
                                                                                  mony. And if I could just ask you broadly, when you have deter-
                                                                                  mined, when your agency has determined, the administration has
                                                                                  determined that a recipient has been overpaid, how do you proce-
                                                                                  durally notify them?
                                                                                     Ms. KIJAKAZI. Thank you for your question.
                                                                                     We issue a written notice to the beneficiary, which is mailed out
                                                                                  to them. And we explain that they were overpaid, the reason for
                                                                                  the overpayment, and the amount of the overpayment.
                                                                                     And, generally, the notice requests a full and immediate refund
                                                                                  and describes a proposed rate of benefit withholding. However, the
                                                                                  notice to SSI beneficiaries indicates that they can repay the
                                                                                  amount that they can afford monthly.




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                                                                                     The notice also explains the right to request an appeal, a waiver,
                                                                                  or a different rate of withholding.




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                                                                                     Mr. KUSTOFF. So, if I could—and the way we all get informa-
                                                                                  tion and consume information and receive notices has changed.
                                                                                  And I realize the Social Security Administration may be different.
                                                                                  But are there more efficient ways to notify a recipient that he or
                                                                                  she has been overpaid rather than in the mail?
                                                                                     And I guess the focus of my question is, mail is slow. This is not
                                                                                  your responsibility, but it is not as dependable as it once was. And
                                                                                  fewer and fewer people use the mail.
                                                                                     So is there a more efficient way and maybe, frankly, a way that
                                                                                  is more cost-efficient to the Social Security Administration rather
                                                                                  than using mail?
                                                                                     Ms. KIJAKAZI. This is one of the areas that the review that we
                                                                                  just put in place is going to look at. So what is the most efficient
                                                                                  way to go about this? Are we doing this in the most efficient way,
                                                                                  with respect to our notices? And what are the procedures that we
                                                                                  may want to change? What are the policies we may want to
                                                                                  change? What are the systems improvements that we might want
                                                                                  to make that would be better than what we are doing now?
                                                                                     Mr. KUSTOFF. All right.
                                                                                     So, process-wise, again, you mail a letter. And how long do you
                                                                                  give the recipient to respond in some form or fashion?
                                                                                     Ms. KIJAKAZI. Sixty days from the date on the letter.
                                                                                     Mr. KUSTOFF. And, if he or she does not respond in 60 days,
                                                                                  then what?
                                                                                     Ms. KIJAKAZI. Then we proceed with making the reductions in
                                                                                  benefits.
                                                                                     If we hear from them, then we can work with them. If they want
                                                                                  to request a waiver, there is not a time limit on when they can re-
                                                                                  quest a waiver. They can do that.
                                                                                     Mr. KUSTOFF. All right.
                                                                                     So the statistics that I have show that the recovery rate for fiscal
                                                                                  year 2022 was about 21 percent. Do you know how that recovery
                                                                                  rate compares to pre-pandemic?
                                                                                     Ms. KIJAKAZI. I do not have that information now, but I can
                                                                                  take that back and provide you with that.
                                                                                     Mr. KUSTOFF. Okay. I guess my point is, when I see 21 percent,
                                                                                  if that is the actual number, that is not very impressive. And,
                                                                                  again, I don’t know, pre-pandemic, if the success rate was higher
                                                                                  or lower.
                                                                                     So I guess my question is and if you could respond at some point
                                                                                  after the hearing number one, is that statistic for 2022, is that cor-
                                                                                  rect? And if it is or if it is not, how does that compare to the years
                                                                                  prior to the pandemic?
                                                                                     And maybe, third, since my time is running short, based on the
                                                                                  resources that you have now, how do we improve that rate?
                                                                                     Mr. KUSTOFF. And, with that, Mr. Chairman, I will yield back
                                                                                  the remainder of my time. Thank you.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     Now, the gentleman from Ohio, my dear friend Mr. Carey, is rec-
                                                                                  ognized.
                                                                                     Mr. CAREY. Thank you, Mr. Chairman. I just want to applaud
                                                                                  you and the ranking member for having this hearing.




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                                                                                     You know, one of the things we do as Members of Congress is,
                                                                                  we have our district offices. And many of the times, that is where




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                                                                                  we get the calls that come in. I represent an area of central Ohio,
                                                                                  but I also have the Miami Valley, which goes out towards Dayton,
                                                                                  Ohio. And in one of our weekly meetings, all of a sudden, we start-
                                                                                  ed seeing a number of calls coming in from constituents that were
                                                                                  concerned that they were getting these letters from Social Security
                                                                                  saying that they had been overpaid.
                                                                                     Now, these are people that, you know, they were living by the
                                                                                  rules, they thought they were doing everything fine, and all of a
                                                                                  sudden they get a letter that says they have this overpayment.
                                                                                  And, you know, you can understand how concerning that would be.
                                                                                     So I know we have talked a lot about the numbers and the dol-
                                                                                  lars with the overpayments. I think one of the things that I was
                                                                                  asked by our local media, and I think it is something that we really
                                                                                  need to get to the bottom of, is about—we really just haven’t dis-
                                                                                  cussed how many people have been impacted.
                                                                                     Do we have a number of how many people have been impacted
                                                                                  by these overpayments?
                                                                                     Dr. Kijakazi.
                                                                                     Ms. KIJAKAZI. We do. And I am—I looked at that before I came.
                                                                                  I am sorry, I am not thinking of the number right now, but I can
                                                                                  provide that.
                                                                                     Mr. CAREY. Yeah.
                                                                                     And I guess as a followup on that, I mean, if we don’t know how
                                                                                  many people have received it, how many people are receiving over-
                                                                                  payment notices in a year? Maybe just in a given—do you have any
                                                                                  idea?
                                                                                     Ms. KIJAKAZI. So, for the number of beneficiaries experiencing
                                                                                  an overpayment each year, for fiscal year 2022, 1,028,389; for fiscal
                                                                                  year 2023, 986,912.
                                                                                     Mr. CAREY. So wait a minute. So——
                                                                                     Ms. KIJAKAZI. This is under Social Security.
                                                                                     Mr. CAREY. So 912——
                                                                                     Ms. KIJAKAZI. 986,912.
                                                                                     Mr. CAREY [continuing]. Individuals were getting these letters
                                                                                  in the mail——
                                                                                     Ms. KIJAKAZI. Yes.
                                                                                     Mr. Carey [continuing]. Saying that there was an overpayment
                                                                                  and that they needed to contact you guys and set up a payment
                                                                                  plan.
                                                                                     Ms. KIJAKAZI. That is right.
                                                                                     Mr. CAREY. Seems like an awful lot. You can imagine that is—
                                                                                  you know, when you have all the districts across the country, that
                                                                                  is why we are getting inundated with these calls. And that is why
                                                                                  I want to applaud my colleagues for having this hearing to kind of
                                                                                  understand what we can do better on that.
                                                                                     Along that line, Ms. Eickman, when a beneficiary has this over-
                                                                                  payment, many of them know to call their congressional offices, all
                                                                                  right, but a lot of them don’t. And, you know, we have staff case-
                                                                                  workers that work very well with the constituents, and we work
                                                                                  through the process.
                                                                                     But does SSI apply its waiver policies consistently across the
                                                                                  country, or is it different with the different offices?




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                                                                                     Ms. EICKMAN. We have conducted an audit where we did find
                                                                                  inconsistencies among offices. So we looked at waiver rates among




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                                                                                  field offices, and we found groups of field offices that had very high
                                                                                  waiver rates and other field offices that had very low waiver rates.
                                                                                     Mr. CAREY. Dr. Kijakazi, when you said that the—if—because
                                                                                  I know how often I check my mail, right? I would probably get a
                                                                                  big packet like this.
                                                                                     But, once somebody gets that letter and it is over the 60 days—
                                                                                  maybe they didn’t see it, and 60 days elapses. They get their check.
                                                                                  All of a sudden, the money has been taken out. Now, once they re-
                                                                                  alize, they go through our office, they call you guys directly—which,
                                                                                  I understand the staffing issues, but the 1–800 numbers are very
                                                                                  long. Sometimes they ring busy. Sometimes there is a 36-minute
                                                                                  wait.
                                                                                     But—so they make this call to you guys, and they say, ‘‘Listen,
                                                                                  I can’t afford more than $5, but a lot more was taken out from the
                                                                                  check before.’’ Can they get that reimbursed?
                                                                                     Ms. KIJAKAZI. They can ask to appeal the decision, and they
                                                                                  can ask to not have anything taken out until a decision is made
                                                                                  about the appeal.
                                                                                     And we can work with them on—if they don’t want to appeal, we
                                                                                  can work with them on what is affordable in terms of what is being
                                                                                  taken out for SSI.
                                                                                     Mr. CAREY. Real quick, Dr. Kijakazi. One more time, because I
                                                                                  would like everybody to hear this one more time. How many people
                                                                                  were affected in fiscal year 2022 and fiscal year 2023?
                                                                                     Ms. KIJAKAZI. For Social Security, fiscal year 2022, 1,028,389
                                                                                  people; for fiscal year 2023, 986,912 people.
                                                                                     Mr. CAREY. Thank you.
                                                                                     I thank the witnesses.
                                                                                     And, Mr. Chairman, I yield back.
                                                                                     Chairman FERGUSON. Thank you.
                                                                                     I would now like to thank our witnesses for appearing today. We
                                                                                  appreciate your expert testimony but also the work that you do.
                                                                                  Please know that, you know, this is an important issue to this sub-
                                                                                  committee and to the entire committee. And we appreciate your
                                                                                  diligence on this and your willingness to be here to answer ques-
                                                                                  tions and provide additional answers down the road.
                                                                                     With that, I would like to advise members—please be advised
                                                                                  that members have 2 weeks to submit written questions to be an-
                                                                                  swered later in writing.
                                                                                     Those questions and your answers will be made part of the for-
                                                                                  mal hearing record.
                                                                                     Chairman FERGUSON. And, with that, the subcommittee stands
                                                                                  adjourned.
                                                                                     [Whereupon, at 3:42 p.m., the subcommittee was adjourned.]




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                                                                                          MEMBER QUESTIONS FOR THE RECORD




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                                                                                         PUBLIC SUBMISSIONS FOR THE RECORD




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