Larson, Davis: Social Security Should Not Expand Use of Commercial Payroll Data Without Rulemaking and Strong Beneficiary Protections
Washington, DC – Today, House Ways and Means Social Security Subcommittee Chairman John B. Larson (D-CT) and Worker and Family Support Subcommittee Chairman Danny K. Davis (D-IL) sent a letter to Acting Commissioner Kilolo Kijakazi urging the Social Security Administration (SSA) to halt any plans to expand its use of commercial electronic payroll data to reduce or cut off benefits without rulemaking and strong beneficiary protections. In 2015, Congress permitted SSA to significantly expand its access to and use of commercial payroll data, to identify earnings that could result in benefits being reduced or cut off. Congress required SSA to issue regulations within one year of enactment. SSA has not yet implemented this expanded use.
“Unfortunately, since 2015 new and serious concerns have come to light about inaccuracies 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,” wrote the chairmen. “We are therefore alarmed to learn that SSA may soon start automatically accessing and using commercial electronic payroll data from Equifax to adjust benefits – without rulemaking as Congress required in law,” the chairmen further explained.
“SSA should halt any plans to automatically access and use electronic payroll data to adjust benefits before final regulations are in place. SSA should instead comply with the statutory requirement for rulemaking, prior to any implementation. We expect that SSA regulations will not presume that information provided by commercial payroll data providers is accurate, and will include review by SSA employees prior to benefit adjustment. We also expect that any regulations will not place the burden on beneficiaries to correct errors with Equifax or other commercial payroll data providers, and will instead ensure that beneficiaries have substantial advance notice of any potential benefit adjustment and ample opportunity to alert SSA to any errors and make corrections with SSA,” the chairmen concluded.
You can find a PDF of the full letter here.
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