Because of public concern over prisoners receiving cash benefits from Social Security Administration (SSA) and Veterans' Administration (VA) programs, the General Accounting Office (GAO) conducted a study to estimate the number of prisoners currently receiving cash, social security, other federal retirement, disability, and educational benefits. After analyzing testimony given at congressional hearings, reviewing a random sample of prison systems in 20 states, and constructing estimates of payments to prisoners from SSA, VA, and other similar federal programs, GAO staff estimated that over 4 percent of incarcerated felons (over 13,000 prisoners) were receiving such cash benefits in 1980. Another 4 percent of incarcerated felons received postsecondary education funded through Pell Grants. Because of the numerous instances of fraudulent and/or improper receipt of such benefits discovered by GAO staff, the GAO recommended that the SSA and VA encourage state prison systems to give the SSA periodic lists of prisoners, incarceration dates, and accurate social security numbers and to share all such corrected information with the VA and with state prisons. In addition, the GAO recommended that Pell Grant program regulations be amended so that students' attendance costs are calculated after any tuition waivers have been granted. (MN)