Social Security Administration to Pay SSI and Social Security Recipients and Applicants $500 Million under Settlement

On August 11, U.S. District Court Judge Claudia Wilken tentatively approved a settlement that ends SSA’s policy of denying or suspending benefits based on an arrest warrant alone. As of April 1, 2009, no one applying for benefits will be denied benefits because of a felony warrant unless the applicant is in fact “fleeing.” SSA will pay $500 million in back benefits withheld from 80,000 people since January 1, 2007. Those whose benefits were denied or suspended between 2000 and 2006 and who are not receiving benefits will be notified so that they can re-establish eligibility.

Read the Notice to Class Members about the settlement and about the Fairness Hearing on September 24 before Judge Wilken.