Social Security Announces Four Key Updates to Address Improper Payments
Reading Time: 3 MinutesLast Updated: March 20, 2024
Social Security Commissioner Martin O’Malley today announced he is taking four vital steps to immediately address overpayment issues customers and the agency have experienced. Commissioner O’Malley testified before the U.S. Senate Special Committee on Aging and the U.S. Senate Committee on Finance (excerpt):
“For 88 years, the hard-working employees of the Social Security Administration have strived to pay the right amount, to the right person, at the right time. And the agency has done this with a high degree of accuracy over a massive scale of beneficiaries. But despite our best efforts, we sometimes get it wrong and pay beneficiaries more than they are due, creating an overpayment.
When that happens, Congress requires that we make every effort to recover those overpaid benefits. But doing so without regard to the larger purpose of the program can result in grave injustices to individuals, as we see from the stories of people losing their homes or being put in dire financial straits when they suddenly see their benefits cut off to recover a decades-old overpayment, or disability beneficiaries attempting to work and finding their efforts rewarded with large overpayments. Innocent people can be badly hurt. And these injustices shock our shared sense of equity and good conscience as Americans.
We are continually improving how we serve the millions of people who depend on our programs, although we have room for improvement, as media reports last fall revealed. We have also embarked upon a deep dive into the extent of the overpayment problem at Social Security, the root causes of these administrative errors, and the steps we can take as an agency to address these individual injustices.
Our deeper understanding of the complexities of this problem has set us on the following course of action:
- Starting next Monday, March 25, we will be ceasing the heavy-handed practice of intercepting 100 percent of an overpaid beneficiary’s monthly Social Security benefit by default if they fail to respond to our demand for repayment. Moving forward, we will now use a much more reasonable default withholding rate of 10 percent of monthly benefits — similar to the current rate in the Supplemental Security Income (SSI) program.
- We will be reframing our guidance and procedures so that the burden of proof shifts away from the claimant in determining whether there is any evidence that the claimant was at fault in causing the overpayment.
- For the vast majority of beneficiaries who request to work out a repayment plan, we recently changed our policy so that we will approve repayment plans of up to 60 months. To qualify, Social Security beneficiaries would only need to provide a verbal summary of their income, resources, and expenses, and recipients of the means-tested SSI program would not need to provide even this summary. This change extended this easier repayment option by an additional two years (from 36 to 60 months).
- And finally, we will be making it much easier for overpaid beneficiaries to request a waiver of repayment, in the event they believe themselves to have been without any fault and/or without the ability to repay.
Implementing these policy changes — with proper education and training across the people, policies, and systems of the agency — is an important but complex shift. And we are undertaking that shift with urgency, diligence, and speed.
I look forward to working with Members to discuss ideas that could address the root causes of overpayments.”
Social Security launched a comprehensive review in October 2023 of agency overpayment policies and procedures to address payment accuracy systematically. Learn about Overpayments and Our Process on our website. These changes are a direct result of the ongoing review. Additionally, the agency recently announced it is working to reduce wage-related improper payments by using its legal authority to establish information exchanges with payroll data providers that will significantly reduce the number of improper payments, once implemented. The agency will continue examining programmatic policy and making regulatory and sub-regulatory changes to improve the overpayment process. More details on these updates will be shared as they become available.
To watch the testimony and read Commissioner O’Malley Statement for the Record, visit Keeping Our Promise to Older Adults and | Senate Committee On Aging.
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Tags: overpayments, Payments
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Bill O.
I’m currently having all,of my monthly benefits withheld for an overpayment. Will I receive a check in April with only 10% deducted? I applied for a repayment plan in January, but I haven’t received an update yet.
Crystal B.
Hi, Bill. Thanks for using our blog and for your question. For your security, we do not have access to information about your overpayment or repayment plan in this venue. We encourage you to continue to work with your local Social Security office.
Bill O.
Hi Crystal,
Thank you for your reply. My question was more general in nature. When will people who currently are having 100% of benefits withheld begin receiving payments with only 10% deducted for recovery of overpayments? The press release says holding back 100% of monthly payments ends as of 3/25, so will people receive a payment in April with 10% deducted, or will that take longer to put into effect? Thanks!
Crystal B.
Hi, Bill. Although this new repayment plan will help the vast majority of beneficiaries, each case varies. We cannot determine if people who are currently having 100% of benefits withheld will qualify from this venue. To qualify, Social Security beneficiaries would need to provide a verbal summary of their income, resources, and expenses. Therefore, you will still need to work with your local Social Security office to be approved. Thanks.
Griselda V.
Does the SOCIAL SECURITY ADMINISTRATION know that this is a POVERTY PROGRAM. how do you expect people to pay for things who are on these benefits lists and programs. SSA is a POVERTY PROGRAM, please be mindful of the impoverished individuals on the benefit list.
Lynda
Social Security came about during World War I. People were standing in longs lines to get one free loaf of bread. People were starving.
Social Security came about to give some security. It never came about to fully support a living amount of money.
Amy T.
Social Security Administration, the Courts and Congress AGREED to waive, dismiss and clear the 2020 Overpayment Payment Center Cases. When is the SSA going to start removing and clearing those 2020 Overpayment Payment Center Cases as AGREED by Congress, the Courts and SSA?
David R.
Where can I find information regarding the removing and clearing of 2020 overpayment. And does it only apply to cases in 2020?
Please explain.
Amy T.
Google. And it applies to cases starting FROM THE 2020 all they way up to 2023. It won’t let me attach links in the comments section that’s why I don’t attach any.
Marie S.
After 5 months on SSI I received notice of 1500+ overpayment . It took a year to find out it was from 1976 when as a minor my mother received survivor benefits for her 3 children.
I was told they didn’t need to send any proof as they sent it in 1977. Even though my mother received checks (Again I was 10 when he died ). I am responsible .
It’s a shame this is not retroactive for last few months .
Amanda B.
People with those alleged Overpayments are being hurt, killed and oppressed by the SSA OIG, CDI PROGRAM UNIT, overseers and contractors, just to find out they never received any of those Overpayments. And they are being forced to remain unemployed. God don’t like ugly. Start removing and CLEARING those erroneous alleged Overpayment Payment Center Cases please especially for the NON RECIPIENTS. As the social security administration, The Courts and Congress AGREED to waive them.
David R.
When did the Courts and Congress agree to waive them?
Please let me know where I can research what you are talking about.
Barney B.
I am very glad to see that common sense has been aplied to recovering an overpaument mistake. This is a great help for innocent people. Thank you Commisioner O’Malley.
Cartry M.
What I don’t understand how can someone be overpaid on social security. I’m assuming it was a mistake by the social security administration. If so I feel they should deduct a small amount from their check until repayment, But if they suppose to on disability and working I can understand, the money need to be paid back SAP
darrin s.
people lie and cheat
James T.
This is most welcome news, but when does it go into effect? I just got a notice giving me only 30 days to pay back $5,235.80- I would have to dip into my dwindling IRA funds to get this kind of cash, which would further cause me to get hit with income tax on these funds. I don’t see an “effective as of” date anywhere.
Carol S.
Two separate times my sister had her SSI /SSDI reduced because of separate overpayments. I was the person that drove her to the local Social Security Administration (SSA) Office and was with her when she provided the information about the excess income. We provided SSA copies of necessary checks, letters, etc. within one day of her knowing about them. However, my sister does not manage her checking account well due to severe ADHD. She never recognized that SSA failed to adjust her payments until the notices arrived requiring repayment (by then a much larger amount). The burden was on her for proving that copies of everything were provided to the local office. I was with her. She panics dealing with this stuff. This was a large part of why I am now her Rep Payee.
I applaud any improvements.
I recommend that SSA scans documents brought into the local office in real time for better tracking. Email or provide a physical receipt as confirmation along with either a list of the documents received or a miniature replica of the documents on the receipt. Make a better paper trail for people to be able to prove they dropped things off in person.
Carise B.
I completely agree with your suggestion about scanning real-time, logging all paperwork, and providing a receipt of documents. They need to update the system similar to other local and state government agencies, where documents can be uploaded to the recipients account and can be easily retrieved by SSA Representatives.
Carol S.
Absolutely!
Mary p.
Hey look at the people on ssl focus on them. There should poor they can’t even make ends meat