After the feedback that was received the previous year, for the way the overpayments to Social Security beneficiaries were handled, the Social Security Administration (SSA) recently modified the rules. Now there are three ways the agency is going to simplify the issue of overpayments and help Social Security recipients save their money.
Now a lower amortization is handled, as of last March 25, the SSA began to make the collection of whatever is greater between $10 or 10% of the monthly benefit of the entire Social Security of the beneficiary in order to recover an overpayment, that is by far, below the previous 100%, some exceptions are presented, for example, when an overpayment was the product of fraud.
The longest recovery period is when a beneficiary makes the request for a rate lower than 10%, the SSA will make the approval of said request, while the new rate makes the refund of the overpayment in the period of 60 months, compared to the 36 months before the changes.
There is a simpler appeal process, if a Social Security beneficiary thinks that the overpayment was not his fault and he cannot afford the payment, he can make the appeal of the decision about the overpayment or the amount and make the request to the SSA to skip the collection. “The agency does not seek recoveries while an initial appeal or waiver is pending,” they stated in the press release. The SSA has also created new, more affordable payment options.
Why do overpayments happen in Social Security?
The issue of overpayments in Social Security in the United States has various reasons and harms both the beneficiaries and the system. Here you have a detailed explanation of the different scenarios:
- Administrative errors: Many times, there are many human errors in the administration of benefits. Incorrect calculations, incorrectly entered data or problems with updating records can be highlighted in these errors.
- Changes in circumstances: Changes such as, new jobs, marriage, divorce or moving, are grounds for affecting your eligibility or the amount of benefits you should receive, if a timely update is not made, overpayments may be generated.
- Delayed notifications: Sometimes beneficiaries are not notified in time about changes in their benefits or regarding the need for reimbursement of excessive payments, this happens due to communication problems or the delay in the process of updating information.
- Unreported Income: When a beneficiary starts a new job or has another source of income, it is their duty to report it to Social Security. If they don’t, they run the risk of continuing to receive benefits without knowing what an overpayment is generating.
- Errors when estimating income: For Supplemental Security Income (SSI) beneficiaries, income calculations can be difficult. If an incorrect calculation of the amount of income is made, it can lead to overpayments.
- Changes in laws or regulations: Laws and regulations related to benefits may have variations over time. Sometimes, changes could affect payments and lead to overpayments.
In the event of an overpayment, Social Security will notify the beneficiary by mail. The beneficiary has the right to appeal and to be exempted. You can make the appeal if you do not agree with the overpayment.
