Changes are coming to how the Social Security Administration handles overpayments, as Commissioner Martin O’Malley introduced a four-step plan in March to help beneficiaries who receive overpayments without realizing their benefits didn’t actually increase. Typically, when beneficiaries receive 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. This can have a negative impact on those who rely on their monthly Social Security payments to cover expenses like housing and bills.
There are various reasons why Social Security overpayments may occur, such as not reporting new employment in a timely manner or continuing to receive payments during an appeal. The SSA handles overpayments on a case-by-case basis, so it is advisable to contact the agency if you receive a notice, especially if you believe it is a mistake. In the case of an error, you can submit an appeal to address the overpayment.
The new rules introduced by Commissioner O’Malley aim to change how claimants who receive an overpayment can repay the amount. The first change is that the Social Security administration will no longer take back 100% of benefits if a claimant does not respond to a demand for repayment notice. The default withholding amount will now be 10%. Claimants will also no longer need to prove fault in causing overpayments, as the responsibility will lie with the agency. The repayment period will be extended from 36 months to 60 months to give beneficiaries more time to repay the money, resulting in less money being taken from their monthly checks. Furthermore, beneficiaries will find it easier to request a waiver if they are not at fault or are unable to afford repayment.
If you believe you are not at fault for Social Security overpayments received, you can request a waiver or file an appeal. To request a waiver, you can submit form SSA-632, which can be mailed or dropped off at your local Social Security office. If you think you are not at fault and the overpayment is $1,000 or less, you can request a waiver by calling 1-800-772-1213 or your local office. If you do not believe you have been overpaid or if the amount is correct, you can file an appeal within 60 days of receiving the original overpayment notice. Ensure you have your notice from the SSA and any supporting documents ready before starting the appeal process.
Overall, the changes to the Social Security overpayment handling process aim to provide more leniency and assistance to beneficiaries who receive overpayments. The new rules introduced by Commissioner O’Malley offer a more flexible repayment plan, reduced withholding amounts, and an easier process for requesting a waiver for those unable to repay the amount. It is important for beneficiaries to be aware of these changes and how they can navigate the process of addressing Social Security overpayments to ensure they are treated fairly and receive the support they need.
