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Ask Lane Your Own Question
Category: Social Security
Satisfied Customers: 12701
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial, Social Security & Tax advice since 1986
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Do Social Security Admin. employees receive extra pay or a

Customer Question

Do Social Security Admin. employees receive extra pay or a bonus for recovering overpayments?
Submitted: 1 year ago.
Category: Social Security
Expert:  Lane replied 1 year ago.
No. There IS a special process when Fraud is suspected (referral to the OIG - Office if Inspector General)....See this from the POMS (internal Social Security Program Operations Manual)..."To avoid weakening any future court case, the FO/PSC must refer a Title II overpayment case involving possible fraud to the Office of the Inspector General (OIG), as explained in Reporting Program Violations – General GN 04111.005....This referral is to be done via the e8551 process discussed in GN 04111.010 (FO) and in GN 04111.025 (PSC) before the debtor is notified of the overpayment....The OIG reviews the case and decides, within 60 days of the referral, whether to seek prosecution. During the 60-day review period, or if OIG accepts the case for prosecution, SSA does not take any recovery action, including releasing an overpayment notice. After 60 days, if OIG has not notified SSA of a decision, SSA begins the overpayment recovery process by releasing the overpayment notice."...Now, are the personnel of the OIG and the managers and others that WORK on these case more highly compensated, generally, than front lines field office workers and coordinators? Yes....And although this information is not made public, I know anecdotally, from clients that have acquaintances, that those that do well in the OIG are more likely to be promoted from within, just s with bank personnel, etc....But to pay bonuses, directly connected to collections, would be the kind of conflict of interest frowned upon by government agencies....The real world answer here is that there's just no way to know just how much nexus exists between collections and compensation...Hope this helps