Changes are being implemented to the way the Social Security Administration handles overpayments. Commissioner Martin O’Malley introduced a four-step plan in March to assist beneficiaries who receive overpayments without being aware that their benefits did not actually increase. Typically, when a beneficiary receives more money than they are supposed to, they are required to pay it all back, either through reduced monthly payments or as a lump sum, even if it was a mistake made by the SSA. These repayments can have a negative impact on individuals who rely on their monthly Social Security payments to cover expenses such as housing and bills.
There are various reasons why overpayments may occur, according to the Social Security Administration. For example, failing to report a new job in a timely manner or continuing to receive payments during an appeal process. The SSA handles overpayments on a case-by-case basis, so it is advised to contact the agency if a notice is received, especially if it is believed to be a mistake. In cases of error, an appeal can be submitted.
The new rules regarding Social Security repayments introduced by Commissioner O’Malley include several changes to the repayment process. Previously, the SSA would take back 100% of Social Security benefits if a claimant did not respond to a repayment notice, but the new default withholding amount will now be 10%. Claimants will no longer have to prove fault in causing overpayments, as that responsibility will now lie with the agency if they believe the beneficiary was at fault. The repayment period will be extended from 36 months to 60 months, allowing beneficiaries more time to pay back the overpayment. Additionally, it will be easier for beneficiaries to request a waiver if they are not at fault or unable to afford repayment.
If a beneficiary believes they are not at fault for the Social Security overpayments they have received, they have the option to request a waiver or file an appeal. To request a waiver, form SSA-632 must be completed and submitted either by mail or in person at a Social Security office. There is no time limit to request a waiver as long as it can be proven that the overpayment was not the beneficiary’s fault or that repaying it would cause hardship. For appeals, the beneficiary must have their notice from the SSA and any supporting documents on hand before going to the SSA website and following the instructions to file an appeal within 60 days of receiving the original overpayment notice.
These changes in how the SSA handles overpayments aim to provide more flexibility and assistance to beneficiaries who may be impacted by repayment demands. By implementing a longer repayment period, a lower default withholding amount, and simplifying the process for requesting a waiver, the SSA seeks to alleviate financial burdens for individuals who rely on their monthly Social Security payments. It is important for beneficiaries to be aware of these changes and understand their options for addressing overpayments to ensure a fair and manageable resolution.
