The Social Security Administration has implemented new rules regarding overpayments, which may result in beneficiaries not having to pay back the extra money they received. In the past, overpayments had to be repaid either through reduced monthly payments or as a lump sum, even when it was a mistake made by the SSA. This could have a negative impact on individuals who rely on their Social Security benefits to cover expenses such as housing. The SSA handles overpayments on a case-by-case basis, and beneficiaries are encouraged to contact the agency if they receive a notice. If it is determined to be an error, an appeal can be submitted.
On March 20, 2024, Commissioner Martin O’Malley introduced a four-step plan to change how claimants who receive overpayments can repay them. The new rules include reducing the default withholding amount from 100% to 10% if a claimant does not respond to a demand for repayment notice. Claimants will no longer have to provide proof of fault in causing the overpayment, and the repayment period has been extended to 60 months from 36 months. Additionally, beneficiaries can request a waiver if they are not at fault or cannot afford to repay the money.
To request a waiver for Social Security overpayments or file an appeal, beneficiaries have options available to them. Requesting a waiver can be done if the overpayment was not the beneficiary’s fault or if repaying it would cause hardship. Form SSA-632 can be submitted to request a waiver, and there is no time limit as long as it can be proven that the overpayment was not the beneficiary’s fault. Filing an appeal is another option if the beneficiary believes they were not overpaid or if the amount listed is incorrect. An appeal must be filed within 60 days of receiving the original overpayment notice.
Beneficiaries are encouraged to take advantage of these new rules and procedures put in place by the Social Security Administration to address overpayments. By extending the repayment period, reducing the default withholding amount, and making it easier to request a waiver, beneficiaries who receive overpayments now have more options available to them. It is important to follow the proper steps if you believe you have been overpaid or if you cannot afford to repay the money back. Contacting the SSA and submitting the necessary forms is essential in resolving overpayment issues.
