Social Security Owes Kentucky Woman $500,000: 'They Have Stolen From Me'

A Kentucky woman said she is owed more than $500,000 after the Social Security Administration began underpaying her in the 1990s.

Wyonia Butler, 65, worked as a nurse in the 1990s, but at the young age of 32, she was injured on the job and wound up unable to work.

It was 1994, and Butler was asked by her employer to lift some boxes and furniture. While not in her job description, the employer was relocating and asked the employees to assist in the process.

"I had always been told you never say, 'That is not my job,'" Butler told Newsweek. "Perhaps in hindsight I should have."

After two weeks, Butler told her supervisor her back was sore from the lifting, but she said her concerns were overlooked.

"He left the room saying, 'I don't want to hear that,'" Butler said. "I now know why he said this. But I was around 32 years old, in my prime and naive as most are."

Suddenly, even sitting at her computer to do desk work became overwhelmingly painful, and Butler soon found herself unable to get out of bed.

When she finally went to the hospital, she was placed on morphine for her pain. Injection after injection, she said, but no help.

A year and a half later, she finally got a full back MRI, which revealed a herniation that had deteriorated down to the T 11-12 disc, blocking blood flow to her spine and left leg. In 1996, Butler had the surgeries required to allow her to walk again.

While Butler said she initially received workers' compensation, the payments ceased after just seven months.

"Who knew I would end up on Medicare at such a young age?" Butler said. "I applied for SSDI and on the form I told them I was receiving workers' comp, but it had stopped."

In June of 1997, Butler received a letter saying she would get only 80 percent of her earnings due to the workers' compensation, despite the payments having stopped. That totaled $1,620 taken out of her benefits, which has easily surpassed $500,000 in lost money today.

While Butler immediately went to correct the error, confirming that she did not receive any workers' compensation anymore, the past 27 years have left her without answers and a heavy hit to her financial situation.

She initially received a letter saying they needed to secure more information and she needed to complete a few forms. She mailed them out and followed up but was told the forms were in backlog. The SSA representatives she spoke to said they weren't sure why her account still said she receives workers' compensation.

"I did as I was asked," Butler said. "However, to this date, it's never been done or addressed. They are still withholding $1,625 out of my check every month. I called, of course, and was told each time to be patient, it's being worked up."

After five years of failing to get answers, Butler said she stopped. It was affecting her health, but 27 years later, she still is unsure where a half-million dollars is and why it's been withheld from her.

"I think 27 years is plenty of time to address this issue," Butler said.

She has called senators, other lawmakers and even former Kentucky Governor Paul Patton, but no one has been able to help Butler restore her lost payments. She thinks maybe her claim was denied because of the delay in her diagnosis or that her attorney failed to send a fax she sent her company informing them of the injury.

In the meantime, Butler said she has been deprived of at least $500,000 in payments and lost her farm.

"If you do the math, you see how much they have stolen from me," she said.

She became homeless, and her husband of 25 years divorced her after a long period of financial strife. They had to file for bankruptcy, and now Butler finds herself living in an old run-down house her father had as a rental property.

After turning 65, Butler decided to look into the situation again, contacting several senators and departments of the SSA, but so far, it's been to no avail.

"I should have continued every day until I got an answer," Butler said. "I should have called more. Due to health reasons, I had to stop. I did call last year and this year. The line just rings and rings."

She received a denial of reconsideration after five months despite having immediately corrected the Social Security error.

"I sent them info and the three letters from their own employees, and they just sent them back saying we don't need any documents, do not send anymore," Butler said. "'Be patient.' So, they are not taking this seriously or investigating the situation at all."

After 337 months of lost payments, Butler is tired of being patient, she said. The lost $1,625 doesn't even include the cost-of-living adjustments over the past 27 years.

"I started working at age 16 and worked all my life when able," Butler said. "I went to college to better myself, only taking three years off, then back to the workforce. I don't know what else to do."

Newsweek reached out to the SSA for comment via email.

"Disability payments from private sources, such as private pensions or insurance benefits, don't affect your Social Security disability benefits. Workers' compensation and other public disability benefits, however, may reduce what you receive from Social Security," the SSA wrote in a blog post on its website.

"If there is a change in the amount of your other disability payment, or if those benefits stop, please notify us right away. Tell us if the amount of your workers' compensation or public disability payment increases or decreases. Any change in the amount or frequency of these benefits is likely to affect the amount of your Social Security benefits."

For many, Butler's story reflects their own experiences when navigating Social Security.

According to Kevin Thompson, a finance expert and founder of 9i Capital Group, the SSA faces understaffing, which can lead to mistakes. Still, a $500,000 blunder is relatively unheard of.

"The reason recipients may receive inadequate payments is due to the information provided to the SSA system," Thompson told Newsweek. "We often suggest people check their Social Security statements to make sure their income is being presented accurately. In some cases, the information may be incorrect and need to be corrected."

After 27 years, Thompson said Butler might not end up receiving full payback for the lost payments, but there's still a chance the SSA will recognize their mistake.

"It may be unlikely that SSA provides a lump sum payment back to that individual," Thompson said. "However, there may be some sort of remuneration."