Larson and Davis Call for Greater Protections for Social Security Beneficiaries as SSA Expands the Use of Payroll Data

Washington, D.C. - Today, House Ways and Means Social Security Subcommittee Ranking Member John B. Larson (CT-01) and Worker and Family Support Subcommittee Ranking Member Danny K. Davis (IL-07) called for stronger protections for beneficiaries in a letter to Commissioner Martin O'Malley on the Social Security Administration's (SSA) proposed rule to expand its use of commercial electronic payroll data to administer the Social Security and Supplemental Security Income (SSI) disability programs.

"We applaud Commissioner O'Malley for moving swiftly to propose long-overdue regulations governing how Social Security will expand its use of commercial payroll data to reduce overpayments to beneficiaries," said Larson and Davis. "We have expressed concern about the potential for erroneous data in commercial electronic payroll databases and the significant challenges workers often face when trying to correct errors with the credit reporting agencies who operate and sell these databases. The potential risk posed by incorrect data puts beneficiaries at risk of having their benefits reduced or cut off, and we expect the final rule to significantly strengthen beneficiary protections to prevent undue harm to disabled Americans who rely on their monthly benefits to make ends meet."

In their letter to the Commissioner, Larson and Davis noted, "The Social Security and SSI disability programs provide vital income for people who can no longer work at a substantial level because of a severe medical condition. Monthly benefits help disabled workers and their families to put food on the table, keep a roof over their heads, pay medical bills, and secure other basics. Social Security and SSI disability benefits are particularly important for people of color and women, who on average have fewer resources to fall back on in the event of a sudden career-ending impairment, and for children. It is impossible to overstate the importance of these SSA programs to the American people - or the dire consequences that can result from loss of benefits… We commend you for taking the necessary steps to have a final rule in place before SSA implements new and expanded use of commercial payroll data under the PIE. We urge you to make needed revisions so that the final rule features stronger beneficiary protections, prevents unintended consequences, and emphasizes transparency."

In 2022, Reps. Larson and Davis wrote to SSA in support of strong beneficiary protections as the agency expands the use of commercial payroll data, citing risks of errors and further inaccuracies that could harm beneficiaries.

Read SSA's 2022 response to Larson and Davis here.

Full text of the members' letter to Commissioner O'Malley is available here.