Social Security Eases Overpayment Strain for Beneficiaries

The Social Security Administration has announced a significant reduction in the default overpayment withholding rate for Social Security beneficiaries, dropping it from 100% to just 10%, or a minimum of $10. This move aims to alleviate the burden on individuals who may have unintentionally received more benefits than they were entitled to.

What to Do in Case of Overpayment

It's crucial for clients to understand what steps to take if they receive a notice of overpayment from Social Security. An overpayment occurs when an individual receives more benefits than they should have. The overpayment amount is calculated as the difference between what was received and what was actually owed.

By law, the Social Security Administration must take action to adjust benefits or recover debts in the event of an overpayment. When clients are notified of an overpayment, the notice provides an explanation for the overpayment, details the amount owed, outlines repayment options, and explains their rights to appeal or request a waiver.

Options After Receiving an Overpayment Notice

Upon receiving an overpayment notice, clients have several options:

• Repayment: Clients can choose to repay the overpayment in full or set up a repayment plan. Payment can be made by check, money order, credit card, or through monthly deductions from their Social Security benefits. Flexible repayment plans are available, including options for payments as low as $10 per month. Additionally, clients may be able to make payments via Pay.gov or their bank's online bill pay service, with instructions provided in the overpayment notice.
• Appeal: If clients disagree with the overpayment or believe the amount is incorrect, they have the right to appeal. They can request a non-medical reconsideration online or submit a completed form SSA-561, Request for Reconsideration, to their local Social Security office.
• Waiver Request: Clients who believe they are not at fault for the overpayment and cannot afford to repay the money, or if repayment would be unfair for some other reason, can request a waiver. This is done by submitting a completed form SSA-632, Request for Waiver of Overpayment Recovery, to their local office.

For overpayments of $1,000 or less, a waiver request may be processed over the phone without a completed SSA-632 form. Clients can call 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m., or contact their local Social Security office for assistance.

Adjustments for Financial Hardship

Beneficiaries experiencing financial hardship due to repayment may request a change in the repayment amount, provided it is not less than $10 per month. This adjustment aims to ensure that individuals can meet their essential living expenses while fulfilling their repayment obligations.