Cape News

After years of oversight from the Ways and Means Committee, the Social Security Administration (SSA) has begun using a payroll information exchange (PIE) to reduce overpayments. This move is aimed at addressing issues stemming from inaccurate or untimely wage reporting, which have been major contributors to improper payments within Social Security and Supplemental Security Income programs.

Ways and Means Committee Chairman Jason Smith expressed his views on this development: "It is unfortunate it took the Social Security Administration close to a decade to implement what is clearly a commonsense measure to utilize data that can prevent costly errors, reduce the wage reporting burden on beneficiaries, and increase the accuracy of Social Security payments. Improper payments not only drain valuable resources from the Social Security programs, they also plague beneficiaries with unplanned expenses and the undue stress of resolving the issue with the SSA."

He added that while it's positive that SSA has taken this step, ongoing oversight will be necessary: "For years, the Ways and Means Committee has demanded that the agency act on the authority and swift timeline that the SSA received from Congress. While it is good that the SSA has taken this first step, the Committee will continue to exercise its oversight authorities to ensure that the important tool is used effectively and hold the bureaucracy accountable to protect American taxpayers and working families."

The Bipartisan Budget Act of 2015 gave SSA authority for such an exchange, requiring regulation proposals within one year. However, significant delays occurred before a proposed rule was published in February 2024. The Old-Age, Survivors, and Disability Insurance (OASDI) programs reportedly made over $8.3 billion in improper payments in Fiscal Year 2022—more than three times as much as FY 2021—including nearly $6.5 billion in overpayments. The Supplemental Security Insurance (SSI) program reported $4.6 billion in overpayments for FY 2022.

SSA's Chief Actuary estimates PIE implementation will result in net reductions of $1.1 billion in OASDI payments and $1.8 billion in SSI payments over ten years.