Social Security withholds $500,000 from 65-year-old woman: could you be next?
By
Aubrey Razon
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Wyonia Butler, a 65-year-old former nurse, is facing a financial nightmare after a major Social Security error. Her shocking story highlights the dangers of relying on government benefits without double-checking for potential mistakes.
Could this happen to you?
Wyonia Butler's life took an unexpected turn in 1994 when a workplace injury severely damaged her spine.
At just 32 years old, she faced a future of health complications that would eventually require multiple surgeries to enable her to walk again.
The injury not only robbed her of her health but also her career, marriage, and home.

After her injury, Butler received worker's compensation for seven months.
When it was time to apply for Social Security Disability Insurance (SSDI), she dutifully informed the Social Security Administration (SSA) that her worker's compensation had ceased.
However, a bureaucratic blunder ensued. The SSA's response in June 1997 stated that her Social Security checks would be reduced to account for the worker's compensation she was no longer receiving.
This error resulted in a staggering $1,625 being deducted from Butler's monthly payments, a sum that over 27 years has accumulated to over half a million dollars.
Butler's frustration is palpable as she recounts her efforts to rectify the situation, only to be met with the same advice: “be patient, it's being worked up.”
Yet, nearly three decades later, the issue remains unresolved, and the deductions continue unabated.
Kevin Thompson, a finance expert from 9i Capital Group, characterizes the magnitude of Butler's predicament as “unheard of.”
He suggests that while the chances of Butler receiving a lump sum reimbursement are slim, there may be some form of remuneration available.
The underlying issue, according to Thompson, often lies in the accuracy of the information provided to the SSA.
Wyonia Butler's ordeal serves as a stark warning to all who depend on Social Security.
It underscores the critical need for individuals to meticulously review their benefit statements and promptly report any discrepancies to the SSA.
In an era where many Americans over 60 rely on Social Security for a significant portion of their income, the consequences of such errors can be devastating.
To prevent a similar scenario from unfolding in your life, consider the following steps:
1. Regularly Review Your Statements: Ensure that all information on your Social Security statements is accurate and up-to-date.
2. Report Changes Immediately: If your circumstances change, such as the cessation of worker's compensation, inform the SSA right away.
3. Document Everything: Keep detailed records of all communications with the SSA, including dates, times, and the names of representatives you speak with.
4. Seek Assistance: If you encounter issues with your benefits, don't hesitate to reach out to financial advisors, legal aid, or your elected representatives for help.
5. Stay Informed: Educate yourself on your rights and the workings of the Social Security system to better advocate for yourself.
Have you faced challenges with Social Security? Do you have tips for navigating the system or stories of triumph over bureaucratic hurdles? Share your experiences and advice in the comments below.
Could this happen to you?
Wyonia Butler's life took an unexpected turn in 1994 when a workplace injury severely damaged her spine.
At just 32 years old, she faced a future of health complications that would eventually require multiple surgeries to enable her to walk again.
The injury not only robbed her of her health but also her career, marriage, and home.

Wyonia Butler from Kentucky claims Social Security owes her $500,000. Image source: Wyonia Butler/Facebook.
After her injury, Butler received worker's compensation for seven months.
When it was time to apply for Social Security Disability Insurance (SSDI), she dutifully informed the Social Security Administration (SSA) that her worker's compensation had ceased.
However, a bureaucratic blunder ensued. The SSA's response in June 1997 stated that her Social Security checks would be reduced to account for the worker's compensation she was no longer receiving.
This error resulted in a staggering $1,625 being deducted from Butler's monthly payments, a sum that over 27 years has accumulated to over half a million dollars.
Butler's frustration is palpable as she recounts her efforts to rectify the situation, only to be met with the same advice: “be patient, it's being worked up.”
Yet, nearly three decades later, the issue remains unresolved, and the deductions continue unabated.
Kevin Thompson, a finance expert from 9i Capital Group, characterizes the magnitude of Butler's predicament as “unheard of.”
He suggests that while the chances of Butler receiving a lump sum reimbursement are slim, there may be some form of remuneration available.
The underlying issue, according to Thompson, often lies in the accuracy of the information provided to the SSA.
Wyonia Butler's ordeal serves as a stark warning to all who depend on Social Security.
It underscores the critical need for individuals to meticulously review their benefit statements and promptly report any discrepancies to the SSA.
In an era where many Americans over 60 rely on Social Security for a significant portion of their income, the consequences of such errors can be devastating.
To prevent a similar scenario from unfolding in your life, consider the following steps:
1. Regularly Review Your Statements: Ensure that all information on your Social Security statements is accurate and up-to-date.
2. Report Changes Immediately: If your circumstances change, such as the cessation of worker's compensation, inform the SSA right away.
3. Document Everything: Keep detailed records of all communications with the SSA, including dates, times, and the names of representatives you speak with.
4. Seek Assistance: If you encounter issues with your benefits, don't hesitate to reach out to financial advisors, legal aid, or your elected representatives for help.
5. Stay Informed: Educate yourself on your rights and the workings of the Social Security system to better advocate for yourself.
Key Takeaways
- Wyonia Butler from Kentucky claims Social Security owes her $500,000 in lost payments over 27 years.
- She suffered a severe spinal injury in 1994 which ended her nursing career and led to her receiving worker's compensation for a short period.
- Butler has contested the Social Security Administration’s deduction of $1,625 per month from her payments, a calculation based on her no longer receiving worker's compensation.
- Despite her efforts and contacting officials including senators, the issue has remained unresolved, with an expert suggesting it’s unlikely she will receive a lump sum reimbursement.