THE Social Security Administration (SSA) did not properly provide benefits to thousands of students, according to a recent report from the Social Security office of the Inspector General.
Around 14,470 Social Security beneficiaries were underpaid by about $59.5million, the report detailed.
Each student was unable to collect roughly $4,113 in benefits.
The audit found that the underpayments were a result of SSA employees incorrectly inputting student information on beneficiaries’ records while using the Post Entitlement Online System and Modernized Claims System.
The SSA has agreed to recommendations made by the Inspector General, which will ensure those who are eligible for payments will receive them, as well as improve controls.
Read our Supplemental Security Income live blog for the latest news and updates…
How much money does SSI pay out?
The average SSI benefit is $621 per month in 2022, which is up by $34 per month from 2021.
In 2022, the maximum monthly SSI benefit for an individual is $841 or about $10,092 a year.
How many people receive SSI?
According to the Social Security Administration, about 7.8million people in the United States received SSI payments in July 2021.
The majority, 4.4million people aged eighteen to sixty-four, were seniors, 2.3million were children and teenagers, and 1.1million were children and teens.
Each of these groups’ average monthly benefits differed significantly.
When were SSI payments established?
Supplemental Security Income payments began in January 1974.
In the 50 states and the District of Columbia, SSI superseded the previous federal-state adult assistance programs.
Each person who qualifies for SSI receives a monthly cash payment based on a statutory federal benefit rate.
Since 1975, these rates have risen by the same amount as OASDI benefit cost-of-living adjustments.
How COLA struggles to keep pace
According to the Senior Citizens League, healthcare costs and housing costs have gotten 145 percent and 118 percent more expensive, while COLAs have increased Social Security checks by just 55 percent since 2000.
Social Security claimsants have lost 32 percent of their purchasing power, according to a study by the non-partisan group.
But things could get worse next year, according to Seniors Citizens League analyst Mary Johnson.
She said: “It appears that inflation is not done with us yet, and the buying power of Social Security benefits may continue to erode into 2022.”
SSI benefits for children with disabilities
According to the Clinton Journal, to be deemed medically qualified for SSI, a child must fulfill all of the following disability requirements:
- In 2022, if the kid is not blind, he or she must not be working or earning more than $1,350 per month. In 2022, if the child is blind, they must not work or earn more than $2,260.
- The child must have a medical condition or conditions that cause significant functional difficulties. This indicates that the condition(s) must severely limit the activities of the youngster.
- The condition(s) of the kid must last at least a year or be predicted to cause death.
Delaying too long can hurt you too
You can’t earn delayed retirement credits beyond age 70, so there’s no point to delay your claim further than this.
You can also use the Maximize My Social Security tool by professor and economist Laurence J. Kotlikoff to help you boost your benefit amount as well.
When should you claim Social Security?
You can start claiming at age 62, but this would result in a permanent 30 percent reduction of your benefits.
If your full retirement age is 66, you’ll get 100 percent of your monthly benefit if you start claiming then.
Or if you delay benefits for an additional 12 months, you’ll receive 108 percent while you’ll get 132 percent of the monthly benefit if you wait until 70.
Why does COLA increase?
COLA adjusts for inflation, which has surged 5.4 percent since September due to high consumer demand.
The change in inflation means retired workers can expect to see a boost of $92 on average, bringing their monthly benefit from $1.565 to $1,657.
Furthermore, the maximum Social Security benefit in 2022 will be $4,194.
And the maximum amount of earnings subject to the Social Security tax will increase from $142,800 to $147,000.
How much do you pay toward Social Security?
Workers contributed 6.2 percent of their earnings to Social Security up to $142,800 in 2021 and $147,000 in 2022.
Employers also contribute 6.2 percent.
Self-employed individuals must pay both components of the tax or 12.4 percent.
Some states offer more SSI payments
Some states contribute to the total amount payable to SSI recipients.
That means depending on the state you live in, you may receive a supplemental payment in addition to SSI from the federal government.
The SSI Benefits website shows which states pay a supplement to people who receive SSI.