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HRD-79-89 1 (1979-07-02)

handle is hein.gao/gaobaazlb0001 and id is 1 raw text is: 



    *. n -        UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548


HUMAN RESOURCES
   DLVIS;ON

   B-164031(4)                                   JULY 2, 1979



   The Honorable Joseph A. Califano, Jr.
   The Secretary of Health, Education,
      and Welfare

    Dear Mr. Secretary:

         This report summarizes the results of our analysis of
    the Social Security Administration's (SSA's) procedures for
    adjusting the benefits of persons who earn more than the
    allowable amount. We determined that, over a 3-year period,
    SSA did not take appropriate action to identify and collect
    an estimated $48 million in overpayments or pay $5 million
    in underpayments. The overpayments were made to benefici-
    aries who had excess earnings, and these overpayments gen-
    erally can be recovered.

    BACKGROUND AND SCOPE

         The Social Security Act, section 203(b), (f), as
    amended, requires that persons under age 72 1/ receiving
    social security benefits have their benefits reduced if
    they work and have earnings that exceed an annual exempt
    amount. Certain types of income, however, such as interest,
    pensions, and dividends, are excluded. 2/

         The Social Security Act also requires that $1 of bene-
    fits be withheld for every $2 of earnings above the exempt
    amount. Annual exempt amounts increased from $2,400 to
    $3,000 from 1974 to 1977.


    l/Lowered to age 70 beginning 1982.

    2/For self-employed persons, a substantial services
      test, based on number of hours worked, is used.


                                                    HRD-79-89
                     (105061111111111111111           1 0   )

                        109782

            6G4;               -Z7

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