State Insurance Fund

Detecting the Unreported Deaths of Extended Payment Recipients (Follow-Up Review)

The State Insurance Fund provides workers' compensation and disability benefit insurance coverage to many of the employers in New York State. When workers covered by the Fund die or are permanently disabled as a result of on-the-job injuries, the biweekly payments made by the Fund generally continue until the death of either the permanently disabled worker or the beneficiary of the deceased worker. In our prior audit report 95-S-86, we examined the procedures used by the Fund to detect the deaths of such extended payment recipients and concluded that the procedures would be greatly improved if the Fund periodically used computer matching techniques to compare its record of extended payment recipients to the records of reported deaths maintained by other government agencies, such as the Social Security Administration. When we performed such a computer match, we identified many biweekly checks that had been sent to individuals after they were dead. In our follow-up review, we found that Fund officials have implemented most of the recommendations contained in our prior report.

For a complete copy of Report 97-F-9 click here.