Social Security Administration Failed to Protect Disability and SSI Payments, Judge Rules

On Thursday, July 24th, a US District Court Judge ordered the Social Security Administration to pay $42,000 in attorneys’ fees to a group of residents in Multnomah County, Oregon, who sued the federal agency after it failed to protect the social security insurance and disability benefits of residents when the company managing the money abruptly closed.

In March, Safety Net of Oregon closed suddenly. The company was a “payee” that distributed Social Security benefits and disability payments to beneficiaries who otherwise cannot manage their own funds. Safety Net had around 1,000 clients, and although 400 slowly regained access to their Social Security benefits, about 20 residents still cannot get their payments from the government agency.

The Social Security Administration spent time informing Safety Net’s clients through phone calls and letters that they would need to find a new payee company for their benefits by March 21st. Benefits recipients were told that they would lose access to their Social Security benefits if they did not find a new payee; however, many of the payees were homeless, and so could not receive the message. By the March deadline, nearly 450 people lost access to their benefits because they did not find a new payee.

Federal authorities are investigating Safety Net on allegations of fraud, which may have caused the agency to close. According to Kathy Wilde, a legal director with Disability Rights of Oregon who represented the lawsuit’s plaintiffs, Safety Net’s records prevented many Social Security beneficiaries from receiving their money, even after their information was transferred to a new payee.

“Safety Net’s records were so bad that nobody knew how to contact a lot of these people,” Wilde said, “so they dropped off the radar.”

What types of Social Security Benefits are Available?

Depending upon the facts of your case, You, your kids, and/or your spouse may be eligible for a range of disability benefits under the Social Security Act. If you suffer from a disability and are unable to work, you may be eligible for Social Security disability benefits that include:

• Social Security Disability benefits
• Supplemental Security Income or SSI
• Widow/Widower’s benefits
• Retirement Benefits
• Medicare/Medicaid benefits
• Children and Dependent’s benefits

The type of benefits to which you may be entitled depends upon your income and how long you have worked.

The standard of disability that must be shown is the same for both programs.

You must have a physical or mental problem (or a combination of problems) severe enough to prevent you from working in any regular paying job (“substantial gainful activity”) for at least 12 months.

Disability due to drug or alcohol addiction is not covered, but certain physical or mental conditions as a result of a prior addiction may be covered.

In determining disability, the test is not whether you would be offered a job, but whether there are jobs which you could perform. For those over 55 years old, new regulations allow a more realistic look at age, education, and experience in making this analysis.

The Strom Law Firm Can Help with Social Security Benefits Claims

Applying for Social Security Disability or Retirement Insurance can be complex.  However, we understand that you need your benefits and we will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. Call the experienced attorneys at the Strom Law Firm at (803)252-4800.