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Saturday, September 24, 2011

U.S. government pays $120million a year to employees who are DECEASED - 24th Sept 2011

The federal government has doled out $120million over the last five years in benefit payments to dead people over the past five years, a watchdog report says.

Such payments are meant for retired or disabled federal workers, but sometimes the checks keep going out even after the former employees pass away and the deaths are not reported, according to the report this week from the Office of Personnel Management's inspector general, Patrick McFarland.

In one case, the son of a beneficiary continued receiving payments for 37 years after his father's death in 1971. The payments - totalling more than $515,000 - were only discovered when the son died in 2008.

The government has been aware of the problem since a 2005 inspector general's report revealed defects in the Civil Service Retirement and Disability Fund. Yet the improper payments have continued, despite more than a half dozen attempts to develop a system that can figure out which beneficiaries are still alive and which are dead, the report said.

'It is time to stop, once and for all, this waste of taxpayer money,' it said. Read More