The effects of COVID-19 are still being felt, and five years after the pandemic began, many services are returning to normal. One such service is the Social Security Administration (SSA), which has gradually returned to pre-pandemic levels and will now resume debt collection procedures that were suspended during the difficult times.
The SSA is prone to fraud, the majority of which is unintentional and resulted from government errors. However, this does not imply that affected individuals retain the money they received illegally or owe the government directly.
To avoid these errors and ensure timely collection, the SSA has numerous safeguards and protocols in place. However, sometimes money is lost, and the Treasury Offset Program (TOP) assists the government in recovering these losses.
The Social Security Treasury Compensation Program
TOP, managed by the Department of the Treasury’s Bureau of Fiscal Services, is a centralized program designed to collect delinquent debts owed to federal and state agencies by intercepting federal and state payments.
These could include past-due child support or, in the case of Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental Security Income (SSI) debts from the Social Security Administration.
Collection of these outstanding debts was halted during COVID to avoid exacerbating the economic hardship of those who rely on federal benefits or income.
Because the pandemic’s aftermath lingered long after it had officially ended, a grace period was established to allow the economy to recover. However, the excuses have run out, and those who owe money to the federal government must pay.
The TOP program for collecting Social Security debt is not a new initiative; it has been in place since 1992 and has proven to be successful. Prior to its suspension in March 2020, the SSA collected nearly $2 billion in previously uncollectible delinquent debt through the program.
Although it may appear insignificant, these services are chronically underfunded, and every penny counts in maximizing the benefits of these programs. As a result, recovering this amount, while appearing insignificant in the context of the federal budget, helps improve the situation of other program participants.
Furthermore, it allows the SSA to maintain the OASDI and SSI programs’ integrity by demonstrating its commitment to financial transparency and accountability.
Acting Social Security Commissioner Lee Dudek explained the successful program’s return: “Resuming collections through the Treasury Offset Program is an important step in our commitment to properly managing taxpayer funds and ensuring program integrity.
We are committed to recovering overpayments while also providing people with the information and options they require to manage their debts.”
Again, in the grand scheme of things, the amounts may appear insignificant, but as a matter of principle, especially given that these programs are funded by taxpayers, it is critical to take every possible precaution to ensure that misplaced funds are returned to their rightful owners.
To that end, the Treasury Department has begun collecting debts that the SSA remitted to the Treasury prior to March 2020. These debts are estimated to have been accumulated by approximately 280,000 individuals, totaling $2.7 billion.
If this money can be returned to the SSA’s coffers in a timely manner, it may help improve the program in ways that cannot be measured solely in monetary terms.
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