New Restrictions Now Prevent Payment of Benefits to Noncitizens Unauthorized to Work in the United States

While SSA previously paid benefits to all individuals who met Social  Security entitlement requirements, without regard to their work  authorization status, the Social Security Protection Act (SSPA) now  prevents payment of benefits to noncitizens who lack authorization. SSA Provided Guidance and Training to Its Staff to Implement Section 211, but Lacked Internal Controls for Assuring Proper Determinations

SSA has issued guidance and provided training to assist staff in processing  benefit claims covered by Section 211; however, we found some improper  determinations by staff and a lack of internal controls for detecting such  errors. The claims with improper determinations consisted of 17 claims  involving workers who were assigned nonwork SSNs after 2003, which  should not have been approved, and 1 claim that was improperly  disapproved. In August 2004, SSA issued detailed  guidance through its Program Operations Manual System (POMS). In 17 of the 19 approved cases we reviewed in which the primary workers  had been assigned a nonwork SSN after 2003, we found that the  determinations were erroneous because the workers lacked the work  authorization or past qualifying work experience required under Section  211. In reviewing the 41 letters sent to claimants to inform them of disapproval  decisions based on Section 211, we found that SSA staff did not always  provide the claimants with information on their appeals rights and other  required information. 1). Although SSA has disallowed only 41 claims as a result of Section 211  requirements, the number will increase in future years as more  unauthorized workers reach retirement age or become disabled. While SSA data for the approximately 105,000 claims approved during 2004  and 2005 shows that 97 percent of the workers assigned SSNs before 2004  had work authorized SSNs, there are millions of noncitizens assigned  nonwork SSNs before 2004 who may qualify for benefits in the coming   years because Section 211 does not affect them. Section 211 May Not Restrict Benefits to Certain Noncitizen Temporary Workers Who Engage in Unauthorized Work

Even with Section 211 restrictions, opportunities may still exist for certain  noncitizens assigned SSNs after 2003 to collect benefits without current  work authorization. As demonstrated by the Office of the  Inspector General report, however, temporary visa holders do, in many  instances, continue working after their visas expire. Also, if temporary visa  holders accrue sufficient work credits and meet other eligibility  requirements, they may be able receive benefits without meeting the  lawful presence requirement under certain conditions. Conclusions

Section 211 has imposed new restrictions on the payment of Social  Security benefits to noncitizens who work without authorization, but, not  surprisingly, few have been denied benefits thus far. Additionally, we discussed with managers and staff in the four  SSA field offices we visited the claims that they had disapproved based on  Section 211. We compared SSA’s data to the number of temporary  work visas that the Department of State had issued for the 23 visa types  between 2000 and 2004 and found that SSA’s overall numbers were  reasonable.
Why GAO Did This Study

Continued high levels of unauthorized immigrant workers in the United States have fostered concerns about whether they should be eligible for Social Security benefits. Until recently, the Social Security Administration (SSA) allowed noncitizens to collect benefits, regardless of their work authorization status, provided that they met certain legal presence requirements. However, in March 2004, Congress passed the Social Security Protection Act, which under Section 211, requires that noncitizens assigned a Social Security number (SSN) after 2003 have work authorization from current or past qualifying work to collect benefits. This report describes (1) the steps SSA has taken to implement Section 211 and how effective SSA's policies and procedures are in preventing improper benefit decisions, and (2) how Section 211 has affected the payment of benefits to unauthorized workers.

What GAO Found

SSA has issued guidance and provided training to assist staff in processing benefit claims under Section 211, but the absence of certain internal controls has allowed some errors to go undetected. SSA issued detailed guidance in August 2004 and subsequently provided staff with training on the law, which some SSA field offices supplemented with additional training. Although SSA's policies and procedures were fairly detailed, GAO found several incorrect claims determinations and a lack of internal review for preventing them. With regard to the provisions of Section 211, GAO found that SSA improperly approved 17 of the 19 claims that involved noncitizen workers who had been issued SSNs after 2003 and who lacked required work authorization. GAO also found that 1 of the 41 claims that SSA disapproved was improper. SSA officials stated that the improper determinations were likely due to staff's unfamiliarity with the new requirements. In addition, GAO found that letters sent to claimants informing them of disapproval decisions did not always contain all required information. Because Section 211 does not apply to noncitizens who were assigned SSNs before 2004, few noncitizens have been affected by the law thus far. Only 41 (less than 1 percent) of the approximately 72,000 noncitizen-related claims SSA disapproved during 2004 and 2005 were due to Section 211. It is likely that the number of disapprovals based on the law will grow as more unauthorized workers file for benefits in coming years. However, opportunities may exist for certain noncitizens who receive their SSNs after 2003 to collect benefits without current work authorization. For example, noncitizens who are issued SSNs under temporary work visas may be able to engage in work not authorized under their visas and subsequently claim benefits based on that work. Although SSA officials told GAO the likelihood of this occurring was low, the SSA Inspector General reported in 2005 that a significant number of temporary visa holders overstayed their visas.