[Congressional Record (Bound Edition), Volume 160 (2014), Part 3]
[Extensions of Remarks]
[Pages 3440-3441]
[From the U.S. Government Publishing Office, www.gpo.gov]




 INTRODUCTION OF THE SOCIAL SECURITY FRAUD AND ERROR PREVENTION ACT OF 
                                  2014

                                 ______
                                 

                          HON. XAVIER BECERRA

                             of california

                    in the house of representatives

                      Wednesday, February 26, 2014

  Mr. BECERRA. Mr. Speaker, for 77 years, Social Security has been the 
bedrock of economic security for American families. Generations of 
Americans have contributed to Social Security with every paycheck, 
knowing that they and their families will be protected if they die, 
become disabled, or retire. As a result of their contributions--$14.6 
trillion over Social Security's lifetime--Social Security currently has 
a $2.7 trillion surplus.
  Social Security benefits are modest--about $15,000 a year for an 
average senior and even less for a disabled worker--but for most 
recipients, their Social Security paycheck is more than half their 
monthly income.
  As a representative of those Americans and the Ranking Democrat on 
the Social Security Subcommittee, I believe we have no more important 
responsibility than to make sure that Americans receive their earned 
Social Security benefits on time, and in full. That means protecting 
Social Security against fraud and errors, and it means doing so in a 
way that does not delay needed benefits for honest, hard-working 
Americans.
  Social Security's overpayment rate is 0.22 percent. Most of these 
overpayments are because of errors, but a small part of it is fraud. 
But Social Security employees believe--and I agree with them--that we 
could do even more to safeguard Social Security.
  Recently the Social Security Administration has uncovered several 
fraud conspiracies where Social Security contributions made by honest 
Americans were stolen to pay benefits to people who didn't earn them. 
In one of the conspiracies, the ringleaders even instructed people to 
pretend they were disabled as a result of the tragic events of 
September 11.
  The good news is, when you invest in developing quality, well-trained 
employees to protect Social Security, it pays off. Social Security's 
front-line employees detected the fraud, and with the help of Social 
Security's trained investigators, the ringleaders have been charged 
with felonies and Social Security has begun the process of recovering 
the money stolen from the trust fund.
  But the bad news is that these conspiracies show that Social Security 
is a tempting target for those willing to break the law, and Social 
Security's hardworking staff need more tools to fight them and to make 
sure Social Security only pays benefits to those who should receive 
them.
  That's why my colleagues and I are introducing the Social Security 
Fraud and Error Prevention Act of 2014. Our bill gives Social Security 
new tools to find fraud and errors, recoup money that should be in the 
trust funds, and throw the book at people who steal from Social 
Security.
  First, our bill makes sure that if you break the law, Social Security 
has the resources to make sure the crime is investigated and 
prosecuted. We would require SSA to have special fraud-busting 
investigative units covering all 50 states, provide the resources 
needed to staff them with the right people, and increase prosecutions 
of people who steal from Social Security.
  Second, our bill makes sure the penalty is equivalent to the crime. 
Because Social Security requires applicants to prove they are eligible 
for benefits by providing extensive medical and vocational evidence, 
cheating Social Security usually requires collusion from trusted people 
like doctors, beneficiary representatives, and judges. Our bill would 
increase the monetary penalties for fraud, but most importantly, as 
Social Security's Inspector General recommends, we would significantly 
increase the penalty for fraud by those who know better. We'd make it a 
felony to conspire to defraud Social Security, so prosecutors can nail 
fraud ringleaders, and we allow prosecutors to ask for a long 
sentence--up to 10 years--against those who violated a position of 
trust to breach Social Security's defenses.

[[Page 3441]]

  Third, our bill makes sure Social Security can afford to use the 
tools that have been effective in detecting and preventing fraud and 
errors before a single penny is paid out of the Trust Funds.
  Over the years, Social Security has developed a number of proven 
techniques that significantly reduce fraud and errors.
  What's holding them back?
  To be frank, money.
  Despite a growing number of Americans applying for and receiving 
Social Security, SSA's budget is lower now than it was four years ago. 
They've lost one out of ten front-line workers to budget cuts. And 
Republicans in Congress blocked hundreds of millions of dollars that 
the Budget Control Act authorized for SSA's most cost-effective methods 
of preventing waste, fraud and abuse.
  Our bill would change that, providing SSA with guaranteed funding for 
their most effective strategies to prevent fraud and errors. The bill 
will also provide additional resources to recoup benefits that 
shouldn't have been paid, along with penalties, if the payments were 
the result of fraud.
  We'd demand something in exchange for the guaranteed money: complete 
transparency and accountability. Social Security could only use the 
dedicated funds for the most important and effective strategies. They 
would have to report annually to Congress how much they spent and what 
savings their efforts generated for Social Security's trust funds. And 
the new funds would only be available for additional fraud and error 
fighting--not to replace what they're already spending out of their 
regular budget.
  Our bill isn't the complete answer to protecting Social Security's 
trust fund. As we consulted Social Security employees, managers, 
experts, and beneficiary advocates, they all told us the same thing: 
The best defense against fraud and errors is a well-staffed, well-
trained SSA. And for that to happen, Republicans in Congress have to 
agree to fund SSA's overall budget.
  But providing guaranteed funding to fight fraud will at least spare 
SSA from having to choose between preventing fraud and processing 
applications so that Americans receive the benefits they earned on time 
and in full.
  I hope we can work together in a bipartisan way to enact this bill 
and protect Social Security.

                          ____________________