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HRD-84-71 1 (1984-09-13)

handle is hein.gao/gaobabetr0001 and id is 1 raw text is: RELEASED REPORT BY THE U, S. General Accounting Office Delays In Recomputing Social Security Benefits Cause Underpayments For Extended Periods Social Security benefits are based on a worker's prior earn- ings. The Social Security Administration's (SSA's) policy is to review beneficiary earnings records annually because recent earnings not included in previous benefit computa- tions may increase benefits. This review and subsequent payment of corrected benefits is called the Automatic Earn- ings Reappraisal Operation (AERO). The time required for AERO has increased dramatically--from the 16 months it generally took before 1978 to a high of 42 months in 1979 and 1980. GAO estimates, based on available 1979 and 1:980 reported earnings, that SSA underpaid at least 2.5 million beneficiary cases by at least $1.98 billion. For the dases GAO reviewed, an average of 34 months elapsed i.ntil the underpayments were rectified. Difficulties in implementing a newly legislated annual wage reporting system for 1978 earnings, competition from other pro- grams, and the need to implement several new legislative mandates have caused the delays. $SA expects AERO for 1981 and 1982 earnings to be ~ompleted within 32 months. While further improvement is expected, resolution of AERO delays is tied closely to ISA's efforts to comprehensively modernize its data pro- essing systems. This is a complex task, and it is too early or GAO to predict when, and to what extent, systems ondernization will influence processing time. 125199 GAO/HRD-84-71 SEPTEMBER 13,1984 0'1 11 lo IA-J 17 A

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