Untangling Social Security Benefits for Mistaken Fugitives

After a heart attack rendered L.J. Crawford, 69, unable to work more than 15 years ago, he relied on monthly Social Security disability to get by. But in January 2006, the Union City, Tenn., man’s payments stopped.

The reason: a 1988 warrant for unlawfully receiving unemployment benefits. But Crawford never received unemployment and didn’t know about a warrant.

More than 200,000 Americans have been erroneously denied Social Security benefits because they were flagged through a program designed to prevent benefit payments to fugitives.

Now a settlement in a class action suit ensures that Social Security will restart payments and repay benefits totaling more than $500 million due since January 2007. Further, the agency won’t try to collect back payment for benefits paid before a warrant was discovered.

In the future, Social Security will suspend benefits only when warrants are issued for flight or escape, says Emilia Sicilia, an attorney with the Urban Justice Center in New York.

Michelle Diament is a frequent contributor to the AARP Bulletin and Bulletin Today.