Social Security Overpayment Recoveries Begin,Impacting Over a Million Americans
Washington D.C. – July 26, 2024 – The Social Security Administration (SSA) began garnishing benefits from over a million recipients today, July 26th, as part of a renewed effort to recover $23 billion in overpayments issued through the end of fiscal year 2023 (September 30, 2023). This marks a important shift from the more lenient recovery policies enacted during the COVID-19 pandemic and follows a period of public debate regarding the appropriate recovery rate.
The resumption of more aggressive recovery efforts highlights a long-standing issue within the Social Security system: the occurrence of overpayments.Data from the Kaiser Family Foundation (KFF) and Cox Media Group indicates that approximately 2 million beneficiaries have received excess funds at some point. These overpayments can stem from errors made by the SSA itself, or from beneficiaries failing to report changes in income or other relevant circumstances.
Understanding Social Security Overpayments: A ancient Context
Social Security overpayments aren’t a new phenomenon. Prior to 2020, under the Trump administration, the SSA consistently recovered 100% of overpayments through benefit reductions until the full amount was repaid. This meant beneficiaries could see their entire monthly check withheld until the debt was settled.
The onset of the COVID-19 pandemic prompted a change in policy.During the Biden administration, the recovery rate was reduced to 10% of the monthly benefit, offering significant relief to those affected. Though, this temporary measure was slated to end. In March 2024, the SSA initially announced a return to the 100% garnishment rate, sparking considerable criticism from beneficiary advocacy groups like the National Committee to Preserve Social Security and medicare (NCPSSM), based in Washington D.C.
Responding to the outcry, the SSA revised its plan in April, settling on a 50% garnishment rate. Beneficiaries were notified of potential overpayments with 90-day warning notices beginning April 25th,leading to today’s widespread implementation of the 50% recovery rate.
What can beneficiaries Do? Legal Options for Relief
While the recovery process is now underway, beneficiaries facing garnishment aren’t without recourse.The SSA offers several avenues to potentially waive or reduce the amount owed. These options require proactive engagement and documentation.
SSA-632BK (“Request for Waiver of Overpayment Recovery”): This form is designed for situations where the overpayment was not the beneficiary’s fault and repayment would cause significant financial hardship. Successful waivers typically require demonstrating that the overpayment resulted from an SSA error or that paying it back would prevent covering essential living expenses. SSA-561 (“Request for Reconsideration”): Beneficiaries who believe they were not overpaid, or dispute the amount of the overpayment, can utilize Form SSA-561. This allows for a review of the SSA’s determination and the submission of supporting evidence.
* SSA-634 (“Request for Change in Overpayment Recovery Rate”): For those who acknowledge the overpayment but face financial difficulties,Form SSA-634 allows for a request to lower the garnishment rate or establish an extended payment plan. This requires providing detailed documentation of qualified expenses, such as medical bills or housing costs.
Resources and Further Information:
Beneficiaries can access these forms and further information on the SSA website: https://www.ssa.gov/. The SSA also offers assistance via phone at 1-800-772-1213.
The resumption of more ample overpayment recoveries underscores the importance of beneficiaries regularly reviewing their Social Security statements and promptly reporting any changes in circumstances to the SSA. Failure to do so could result in a significant and potentially disruptive reduction in monthly benefits.
