Legal Definitions - Computer Matching and Privacy Protection Act of 1988

The Computer Matching and Privacy Protection Act of 1988 is a federal law that governs how U.S. government agencies can compare computerized records containing personal information. This process, known as "computer matching," allows agencies to cross-reference databases primarily to:

• Establish or verify an individual's eligibility for federal benefits or services.
• Identify and recover any overpayments of federal benefits.

The Act also includes important provisions and limitations designed to protect individuals' privacy when their data is being matched across different government systems.

Examples:

• Verifying Eligibility for Federal Student Aid: Imagine a federal agency responsible for distributing student financial aid. To ensure that applicants truly meet the income requirements for grants, the agency might use the provisions of the Computer Matching and Privacy Protection Act. This allows them to securely compare the income information provided by student applicants with tax records held by the Internal Revenue Service (IRS). This computer matching helps to accurately verify eligibility, ensuring that financial assistance is directed to those who qualify, while adhering to strict privacy safeguards.

• Recovering Overpaid Disability Benefits: Consider a government agency that administers federal disability benefits. If a recipient returns to work but there's a delay in updating their status, they might inadvertently continue to receive benefits they are no longer entitled to. Under the Computer Matching and Privacy Protection Act, the agency could compare its list of benefit recipients with employment records from another federal or state agency. If a match indicates a recipient has returned to work, the Act provides the framework for the agency to initiate procedures to recover the overpaid benefits, all while maintaining the required privacy protections for individuals' data.