Social Security Robbed of $50 Million Annually by Tax Cheats
Posted: Thursday, July 29, 2010
Social Security is paying roughly $50 million a year too much to people who collect state pensions but fail to declare that income, according to the system’s inspector general. The overpayments go to retirees who have held state jobs and also worked in the private sector — teachers who worked on their summer breaks, for instance, or police officers who retired young enough to form their own companies. If the workers do not declare their state pension income, they appear to be low lifetime earners in the Social Security system. That produces windfalls because Social Security is intended to give the poorest Americans assistance in retirement. State workers often complain that they are being penalized for working two jobs if they report their full income. But in fact, they are otherwise gaming the system in a way that no one else can, claiming bigger benefits than other retirees with the same income history.
Source: New York Times Global (July 21, 2010)
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From the NAELA eBulletin July 20, 2010 -- A weekly newsletter by Professor Kim Dayton, David McGuffey, CELA, and Rajiv Nagaich. The eBulletin is published by the National Academy of Elder Law Attorneys and is a benefit of NAELA membership.