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U.S. retirees owed $$$
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October 4, 1996: 2:29 p.m. ET
Report: Glitch shortchanged some 700,000 Social Security recipients
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NEW YORK (CNNfn) - The Social Security Administration admits that a computer glitch shortchanged about 700,000 Americans out of more than $850 million in retirement benefits -- $1,500 apiece on average -- since 1972.
Agency spokesman Phil Gambino told CNNfn on Friday that Social Security discovered the malfunction in 1994.
The problem involved a mathematical formula used to calculate benefits for people who continued to work after they started receiving Social Security benefits.
The agency said some recipients did not receive proper credit for their post-retirement income.
Since discovering the problem, Social Security has given some 400,000 people back payments totaling $402 million.
However, the agency still owes another 300,000 people some $450 million.
Still, Social Security is having a difficult time locating those recipients.
For instance, the agency believes about 57,500 of those owed money are already dead.
Nonetheless, officials point out that those owed money represent just a fraction of the 44 million Americans who receive Social Security benefits.
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