The Social Security Administration has agreed to pay an estimated $500 million to people whose benefits it suspended or denied between January 2007 and April of this year, under a settlement given preliminary approval by a judge Tuesday.

The government also agreed to change the policy under which it denies or suspends payments for people with outstanding arrest warrants. People whose benefits were denied or suspended between 2000 and 2006 also will have a chance to reinstate their benefits.

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