TN 23 (01-17)

A. Background

Section 207 of the Foster Care Independence Act of 1999 (P.L. 106-169) amended Title XI of the Social Security Act by adding section 1129A to provide for the imposition of administrative sanctions to help prevent and respond to fraud and abuse in the Social Security Administration’s (SSA) programs and operations.

Section 201 of the Social Security Protection Act of 2004 (P.L. 108-203) broadened the range of actions that cause a sanction to include failure to report an event that is material to eligibility or benefit amount if the person knows or should know that failure to report is misleading.

B. Definition of administrative sanction

An administrative sanction is a penalty, which allows us to withhold a person’s current or future Title II benefits and Title XVI payments. A sanction is in addition to any other penalty that may result from false or misleading statements or late or incomplete reporting.