I don't see how you are blaming the government for this. Why not just give out the same social security benefit any old time to anyone who asks? That's what you're going to do when you formalize this as a loophole for getting benefits.

When someone is discovered alive, obviously that should automatically reverse their 'death status' - not to mention that they do not forfeit rights as a citizen because they were thought dead.

Instead of even thinking about the legal issues you are making this about your own emotional reaction to what a bad man he is and how bad the government supposedly is.