Social Security to Pay More Than $500 Million in
Back Benefits; Stop Unlawful Suspensions
More than 200,000 people eligible for benefits
again through court settlement
Aug. 12, 2009 - The Social Security Administration
has agreed to repay more than $500 million in benefits that were
unlawfully withheld from 80,000 people since January 2007, according to
the National Senior Citizens Law Center.
The agreement is part of a class action settlement
preliminarily approved yesterday by U.S. District Court Judge Claudia
Wilken .
In addition, people whose benefits were suspended
or denied between 2000 and 2006 will be notified of the new policy and
invited to re-establish eligibility. All told, more than 200,000 people
may have benefits reinstated and/or receive back payments through the
settlement. All beneficiaries must continue to be eligible to receive
payments.
The settlement resolves a lawsuit, Martinez v.
Astrue, challenging SSA's method of implementing a provision of the
Social Security Act. The law seeks to prevent people from using
government benefits to flee from arrest.
Rather than trying to determine which Social
Security recipients were actually fleeing prosecution, SSA used an
automated system that matched names in warrant databases to those at SSA.
Many of the automatic benefit suspensions involved false or unproven
allegations, minor infractions or long-dormant arrest warrants.
Although regulations provide for an appeal process,
individuals losing benefits were routinely informed by SSA staff that
they could not appeal.
Under the agreement, SSA has stopped, as of April
1, 2009, suspending or denying benefits due to the mere existence of a
warrant - unless the warrant is issued in a criminal proceeding on a
charge such as flight or escape.
"The vast majority of class members were not
fleeing at all; many never knew that criminal charges were pending
against them, let alone that a warrant had been issued," Gerald
McIntyre, attorney with the National Senior Citizens Law Center, said.
In addition to granting preliminary approval of the
settlement agreement, Judge Wilken ordered a final fairness hearing to
be held on September 24. At that hearing, Judge Wilken will hear any
objections from class members and determine whether to approve the
agreement, which will not take full effect until the appeal time has
run.
The plaintiffs in the case are represented by the
National Senior Citizens Law Center, pro bono counsel from the law firm
of Munger, Tolles & Olson, the Mental Health Project of the Urban
Justice Center, Disability Rights California, and the Legal Aid Society
of San Mateo County.
The National Senior Citizens Law Center advocates
before the courts, Congress and federal agencies to promote the
independence and well-being of low-income elderly and disabled
Americans.
National Senior Citizens Law Center
Keep up with the latest news for senior citizens, baby
boomers
Aug. 12, 2009 - The Social Security Administration
has agreed to repay more than $500 million in benefits that were
unlawfully withheld from 80,000 people since January 2007, according to
the National Senior Citizens Law Center. 
