'It's been truly surreal': Seattle man has benefits clawed back after Social Security declares him dead

While Elon Musk has claimed that millions of dead people are fraudulently receiving Social Security benefits — an assertion that has been debunked by experts — one Seattle man experienced the opposite problem.

“You wake up one day and discover you’re dead,” Ned Johnson told The Seattle Times in an article published March 15. “It’s been truly surreal.”

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But Johnson, 82, is still very much alive. For reasons unbeknownst to him, he ended up on the Social Security Administration’s (SSA) “death master file,” according to the Times, and had his benefits clawed back to November — the month he supposedly died.

Funds were deducted from his bank account for retirement benefits received in December and January, for a total of $5,201. And he hadn’t yet received his February or March checks. His Medicare insurance had also been canceled and his credit report marked him as deceased and ineligible for a loan.

It took nearly two weeks and multiple calls per day to Social Security before he was able to make an appointment. But the appointment was then delayed, which prompted him to make a spontaneous trip to the agency’s downtown office. He described it as a “Depression-era scene” with a long queue and only two tellers.

Once in front of a human, he was able to prove he is, in fact, alive. The agency pledged to fix his predicament.

“When I was in that line, I was thinking that if I was living solely off Social Security, I could be close to dumpster diving,” he recalled.

Social Security mistakes

It’s unclear what led to Johnson being considered deceased by the SSA, however, the agency notes that among the millions of death reports it receives each year, “less than one-third of 1% of are erroneously reported deaths” that require correction. Death reports often come from family, friends or funeral homes and are considered “first-hand” accounts.

But the agency has also been prone to other mistakes. The SSA’s Office of the Inspector General reported last year nearly $72 billion in improper Social Security payments were made from fiscal years 2015 through 2022. That amount represents less than 1% of the benefits paid over that seven-year — and most of those were overpayments.

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If you’ve been receiving overpayments — even through no fault of your own — you’re on the hook for them. Under Trump-appointed acting commissioner Leland Dudek, the SSA is reinstating the default overpayment withholding rate to 100% of a person’s monthly benefit until reimbursement is complete. This only applies to new overpayments as of March 27. The withholding rate was previously capped at 10% due to potential financial hardship of beneficiaries. This latest move is expected to save about $7 billion over the next 10 years.

In an article published by the Center on Budget and Policy Priorities, Directory of Social Security and Disability Policy Kathleen Romig insisted that, despite these errors, the agency’s overall payment accuracy rate is well over 99%.

“Only 0.3 percent of Social Security benefits are improper payments, which are typically caused by mistakes or delays,” she wrote.

What to do if it happens to you

Mistakes will always happen, whether from a data entry error or administrative delay in updating a beneficiary’s information. And that can result in delayed benefits, clawbacks or overpayments that require repayment — regardless of who’s to blame for the error.

If you or a loved one are affected by a Social Security error, you’ll want to report it as soon as possible. In Johnson’s case, the error became glaringly obvious when money disappeared out of his bank account. But in other cases it may not be so obvious, so it’s good practice to regularly review your earnings statement for each calendar year to look for any discrepancies.

Contact the SSA as soon as possible to request a correction, either through your Social Security account, by calling 1-800-772-1213 or by visiting a local field office. Make sure you can provide them with the necessary documentation, such as pay stubs or W-2s.

If your request for correction is denied, you can file an appeal. For complex matters, you may want to seek assistance from a financial adviser or attorney. And, as in Johnson’s case, it may require an in-person visit to speed up the process.

Additionally, if your benefits are being withheld in order to reimburse any overpayments, you can make an appeal to the SSA to adjust the amount or waive the collection if you believe the error wasn’t your fault and you can’t pay it back.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.