A Recent OIG Audit Report Reveals Some Widows Are Being Underpaid - OIG SSA
The Office of Inspector General (OIG) of the Social Security Administration (SSA) conducts audits from time to time of different beneficiary groups. This audit was conducted on Widow(er) benefits to determine if recipients were receiving the correct amount.
Normally, the SSA uses the primary insurance amount (PIA) that is determined in someone’s year of eligibility. This is the year someone turns 62, becomes disabled, or dies. The PIA is usually equivalent to the full retirement age (FRA) amount. However, an alternative PIA computation may apply when a wage earner dies before attaining age 62. This is known as the widow(er)’s indexing – WINDEXING.
“The 1983 amendments provided for an alternative WIB computation in certain cases. This alternative computation (Windexing) must be considered when a widow(er) becomes first eligible in 1985 or later, and the worker dies before age 62. This method allows the widow(er) to benefit from the higher indexing factors and bend points that occur after the worker’s death. Windexing is a monthly benefit computation used only for the eligible widow(er). It is not a true survivor PIA computation and is not used for determining benefits for any other survivor on the record. Windexing is used only when it results in a higher benefit than the regular method described in RS 00615.301.”1
They also found that some survivors were not informed at the time of their application when they also had a retirement benefit, and that they had the option to take the smaller benefit first and allow the larger benefit to grow until it reached its maximum amount. A survivor benefit reaches its maximum amount at your FRA, and your own retirement reaches its maximum amount at 70.
Click here… to read the complete report from the OIG.
1 This information was obtained from the SSA Website. https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615302
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When a spouse passes away, you have enough to deal with; having to decide which Social Security benefits you may be entitled to shouldn’t have to be one of them. Make survivor benefits part of your retirement plan, so you know your options when that time comes. AMAC Foundation has a team of NSSA-accredited Social Security Advisors ready to assist you. Email your questions to ssadvisor.org or call and speak with an advisor at (888) 750-2622