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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Carise B.
I hope they can find a quicker process for handling SSA overpayments, help beneficiaries not lose their homes and/or cause financial stress for beneficiaries and their family members. My brother has been without benefits since June 2023, due to an overpayment in July 2021. The notice didn’t come until April 2023 and gave only 10 days to respond. as payee representative I submitted all required documents directly to local branch and sent faxes before deadline. They did not log those files until August 2023. They made decision to cut benefits May 15, 2023. As of December, they said he still qualifies for disability benefits, but now it’s March 2024 and still no benefits or information about overpayment waiver or payment plan.
Scott F.
He might qualify to have the Overpayment waived, removed and CLEARED. Overpayments that occurred FROM 2020 and so on due to their reasons and erroneous conduct are eligible for forgiveness. Some people didn’t even receive any benefits and were still placed on that list. I can’t attach links to your reply but do a web search and see that “2020 Overpayments are being wiped out.
Lynda
Thanks Scott!
Lynda
Carise,
I got an overpayment letter on Feb 26, 2024.
There reason in their owned typed words was due to Covid being the reason for overpayment. An overpayment from back in 2020.
Just pathetic!
Vicki G.
What can we do to check if we are indeed being overpaid?
I would hope I never have a need to pay back but this blog has we worried. These people were doing what they thought was right until the rug was pulled out from under them!!
Lori L.
Some over payments are social security’s fault…Why should we pay back what we didn’t ask for
Scott F.
You might qualify to have the Overpayment waived, removed and CLEARED. Overpayments that occurred FROM 2020 and so on due to their reasons and erroneous conduct are eligible for forgiveness. Some people didn’t even receive any benefits and were still placed on that list. I can’t attach links to your reply but do a web search and see that “2020 Overpayments are being wiped out.
CLT
There is no way that we can check to see if we were really overpaid. I have been trying to get an answer and explanation from Social Security for the so-called overpayment they claim I owe. NO ONE will provide me with an explanation verbally or in writing about how or why I supposedly owe an overpayment. In fact, a year or so ago, I was able to actually reach a helpful, kind social security representative at my local office. She spent about an hour on the phone with me researching what I told her about the so-called overpayment. She determined that she did not believe I owed anything. However, since she could not officially review my case, she had to forward it to someone else that deals with the overpayments. Months later, once again, I received a mailing stating I owed an overpayment in a different amount (previously, I had been given about 6-8 different amounts). with no explanation, again. They do what they want to do, and people are continually victimized by their carelessness.
Crystal B.
Hi, Vicki. Thanks for reading our blog and for your question. If you were overpaid, you’d receive an overpayment notice that explains why you were overpaid, your overpayment amount, your repayment options, and your appeal and waiver rights. Overpayments can occur for many reasons, like when someone does not timely report work or other changes that can affect benefits or when an individual chooses to continue receiving payments during an appeal. Each person’s situation is unique, and we handle overpayments on a case-by-case basis. You can learn more about overpayments and our process here. We hope this information is helpful.
D s.
dont work while you get benefits and lie about it or go over sGA
Constance J.
I’m the responsible party for my Grandson. He’s on the ticket to work program. Everything went smoothly from 2017 to 2019 receiving the correct amount of SSI monthly until a new agent took over his account. She added, subtracted wrong, she told me not to include mileage or work clothes to be deducted in the monthly calculation. She was rude and condescending when I tried to explain the procedure to her. When sending the monthly payroll stubs to her I included the monthly calculation to her on paper she still sent the wrong amount of money. During COVID the same amount was sent monthly it was wrong. I tried to explain it to her and she told me it could me worse. She deducted over $300 payment and said she sent it to his over payment it never was received I called and talked to the SSA collection agency. They told me Fort Myers, FL SSA is a mess. I talked to other SSA government agencies and they also told me Fort Myers FL SSA is a disaster. He owes over $2k and it’s not his fault. I sent letters to everyone I could think of in government up to the Inspector General. I also called Governor DeSantis office and sent copies of all communication with thenSSI Agent. She has suspended his SSI account. She’s incompetent to be working for SSA. Never had a problem for the first 2 years my Grandson worked for Publix until she took over his account in 2019. I have kept all of Evans letters from SSI since 2017. This problem with the Agent has been going on for over 4 years. Out of control. There’s more to this story and I have proof. Thank you, Constance Jackson
Steff W.
That agency is intentionally causing despair, Poverty, homeless, illnesses and worse. I recommend to cut ties with it.
Gloria A.
The ability to do something vile and foul and then play the victim is a true form of mental illness (SSA does this). The reason SSA is asking to put down race and ethnicity is to see who they ELIMINATE first. Those intentionally alleged erroneous Overpayments are not due to any “errors because someone moved or something changed”, it’s clearly to eliminate and downsizing the recipient benefits lists and save themselves some money. It’s been clearly and directly said by persons affiliated with the SSA. Many recipients/Overpayment recipients have life insurance policies on them unknowingly. Downsizing and saving money. Disabled Individuals and SSI are the number one targets
Sue
We’re sorry to hear about your grandson’s situation, Constance. For his security, we don’t have access to private information in this venue. We have forwarded your comments to our colleagues in the Atlanta region. Please request an explanation of your grandson’s overpayment from his local Social Security office. You can ask to speak with a supervisor during your next call or visit. You’ll find information about appeal and waiver options in our Overpayments fact sheet. In the future, you may want to consider using one of our electronic tools for reporting wages. Your grandson (or his representative payee) can report his wages using a personal my Social Security account or our SSI Telephone Wage Reporting service. We also have an app that allows you to report SSI wages from an Android or Apple smartphone. To learn more about our wage reporting options, visit our Frequently Asked Questions. We hope this is resolved soon.
d s.
they hire 3rd party reps who are NOT with SSA
Wilma C.
Us it a true statement that President Biden stated for all on SSI, Disability, drawing social security from retirement to be getting $5200.00 in the end of February 2024 if so I didn’t receive it.
Bill
Not true.
Lori L.
Me either
Joseph H.
He never said that.
darrin s.
biden going to kill us all with war, open borders high gas. VOTE TRUMP to save your life
Milton s.
Why would you come on here telling lies when you see we all in a state of disbelief that the government is doing this to us so please if you don’t have nothing true or positive to say don’t say nothing
Ann B.
SOCIAL SECURITY ADMINISTRATION is being RANSACKED FROM WITHIN by their very own OIG, CDI PROGRAM UNIT, overseers, contractors and affiliates. They are intentionally causing financial hardships, blocking all types of income so you can’t progress, poisoning people by giving them unknown substance without their knowledge by threatening an paying someone who usually would have access to your nutrition to put these things into your food and beverages. Finding and USING (doppelgangers) people that look like you to report or say that you been places that you never actually been or at that moment. They intentionally block all opportunities for income and also online sources of income so don’t think being an online trader will work. All these while they threaten and pay people “to not say anything” it’s a secret” “they’re not suppose to know” ” don’t tell them” meanwhile they threaten people to make FALSE statements about the individual and force them to believe conspiracies and many FALSE theories of the reasons why this is OCCURING. SSA is a POVERTY PROGRAM is what they claim to keep you unemployed and isolated. The SSA OIG routinely deal in RACKETEERING, CONSPIRACY AND FRAUD. RANSACKING THE ADMINISTRATION FROM WITHIN.
Tobi S.
My ssa has been screwed up from start last March 2023 somebody said I wasn’t disabled anymore. Stopped my benefits worker told me she was requesting a reconsideration and putting me back in pay. Ok come December I spoke to a lady over the phone expressed I’m in school online to try and re enter the workforce. Every job I had before I worked on my feet now I can’t I figured out something else. The worker manually cut off my check for January and cut me off period mind I had no clue what was going on till 1-5-24. No clue how I was going to pay my rent or bills it was suggested to file for reconsideration or hearing before judge ask to be in pay. No response to nothing go in office they tell me reapply there’s nun they can do. Leaving me and my family homeless. But who actually cares because social security doesn’t seem to.
Not E.
For 12 months now I have been working to get SSA to STOP deducting my Medicare premium from my monthly SSDI benefit and reimburse me for what they’ve taken including from the backpayment.
Because of my disability, my premiums are paid by the state so SSA is double dipping. Although they agree the deductions should stop and I am entitled to the reimbursement, every month it’s a different story on why this is still not corrected. If the roles were reversed and this was an overpayment we all know SSA wouldn’t be so cavalier.
Tim W.
regarding SSI overpayments due to being over the $2k resource limit, the problem is obviously the decades out of date resource limit.
The resource limit seems to originally be to reimburse SSA when someone ‘wins the lottery’ or ‘inherits’. However, if someone does win the lotter or inherit they will just have a lawyer put together a trust and ‘hide’ the money. So it really only catches poor people who were trying to save up a little.
Sheila M.
I am being told I was overpaid when I retired in 2021, I did what the government said, apply within 3 months of my retirement date, I did just that, I said I was working until a certain date, I never lied or hid anything, I got a couple months while I was still working, I called 2 different months, I was told it was good, I don’t have that money to pay back, now they want to take payments from my monthly payments which I really cannot afford, I did not make the mistakes, nor did I do anything wrong
REALLY UPSET
Gogo T.
My name is Gogo Tshibwabwa
thank you very much and I also thank you for this new program that will help us feel that we are valued by you, I was saddened and disappointed when they told me to start paying (Aver-payment) a lot of money that I have never received since I was born, because of checking my wife’s income they mistakenly wrote a lot of money to her than the money she gets from her is employer, it caused me the problem of paying SSA a lot of money, in fact, so much that I asked the weaver’s they did not accept my request
That thing hurt me until today
Thank you very much for that stepes