Overlapping benefits
In 2010, more than 117,000 people in the United States collected Social Security Disability payments and unemployment benefits at the same time. The total: $850 million.
According to the Government Accountability Office, one person collected $62,000 in overlapping benefits in 2010. Another person collected $107,000 in overlapping payments in a 36-month period while also working for construction companies in four different states.
Existing rules can allow for the overlapping payments, though there is also potential for improper payments being made, the GAO found. Both the disability and unemployment programs are in financial straits, the GAO said, and reducing or eliminating the overlap could result in substantial savings.
Last week, Sen. Tom Coburn, RMuskogee, introduced bipartisan legislation to reduce the overlap. It would require the Social Security Administration to suspend disability payments for any month a recipient receives unemployment benefits.
“In order to protect safety-net programs for those who truly need them most, Congress must act to reduce wasteful and overlapping payments,” Coburn said.
“Absent new legislation, there is no way to prevent beneficiaries from essentially doubledipping and receiving disability insurance while also obtaining unemployment insurance.”