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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Robyn C.
My son was also denied his SSI. Now they say I owe 45,000 in back pay. I just got out of a coma and idk what to do. I have to learn to walk and everything again. I am lost.
S.S.
Hi Robyn, thank you for using our blog. For security reasons, we do not have access to personal information in this venue. It may be best for you to visit your local Social Security office to discuss your overpayment. Hope this helps!
Jennifer W.
I was recently sent a letter stating my payment would go down to $56 for the month of August due to income received in June. The income they are referring to was survivor benefits for taking care of my minor child after my husband died, which stopped when my child turned 16 in June. (I’m on ssi disability) The letter stated if I wanted my payment to remain the same during the appeal process to appeal within 10days. I appealed in 1day but yet I still only received $56 for the month. I’ve been to my local office and spoke with different workers and was told to speak to supervisor. When speaking with supervisor I asked about the letter and if they were going to honor my appeal. Her response was that I was told there’s nothing they can do and that she was going to have security escort me out of the office. Wow for asking a question. So now here we are the 11th of the month and I sit with an eviction notice and an overdrawn bank account. My daughter is about to start school and we’re going to be homeless. I don’t know who else to talk to about them honoring the letter they sent me in which I followed everything it asked on time.
Judy C.
I am losing my mind with this overpayment issue. If you have an overpayment, file for a waiver, waiver is approved saying you dont have to repay it, why does the local ssa office think they are supposed to recover said overpayment regardless of approved waiver?
#1 I read in POMS that you can file a waiver when you receive notice of overpayment which for me was November 2023 yet the local office told me i had to wait until February when I was due to turn in last pay stubs.
#2 I also understood it to say all efforts to recover said overpayment were to stop until there was a decision on waiver. however the local office says since I received the approval letter the beginning of march, SSI goes for previous 2 months they werent required to stop recovery until end of May. I never read where it said anything about a delay, on my laptop it said ASAP and any monies recovered were to be returned to individual as of date waiver was received???? The individual did not have to pay any of it back.
#3 if you have a recovery (repayment) agreement with SSA and never missed a payment does that agreement change without notice or does it remain the same until the overpayment is recovered?
#4 When your local SSA office employees treat you as if you are 2yrs. old and gives you answers to totally different questions than what was asked like your too dumb to know they are avoiding the answer because they know it will show their error and prove youre not an idiot, who can you contact other than the local office, or online at SSA.gov (which isnt worth the time of logging onto) or calling the so called customer support line who leave you on hold after a 30 min. recording or offer to give you a call back where the person hangs up on you as soon as you answer and say hello, or wants to know the basis of your call, you tell them then they start telling you the local office is right w/o knowing exactly what the situation is so couldnt possibly know whos right, who do you turn to? who outside of the SSA, or if they are truly an advocate of justice inside the SSA, will help you and actually stand up for the right interpretation of the situation. ive been trying to find that someone for 7 months now and am about to lose my mind if something isnt straightened out. Isnt there an ombudsman for SSA or some impartial representative that will not only listen but actually hear us little people out here who have been so horribly wronged and mistreated just because someone at local office made a mistake? Please help!!!!!
Miranda
I am on the same situation . My waiver was approved and I was told by the head office that conducted my review that no repayment was due to me . My local office said otherwise . I was so stressed out that I decided to write my offer to reduce the amount of overpayment but until now, no response from SSA. My offer letter was submitted way back in June of 2023. I also tried to appeal my case before a judge but my local ssa office said that I didn’t ask for it , therefore I am to pay all of the 183,000 .00 overpayment. I believe that ssa is so unjust about this whole overpayment issue ! 15 years ago and they just decided I needed to repay the benefits they paid !
kevin o.
Not Exactly, I was a victim of this system. For 10 years i have fought an overpayment, According to Social Security system. I was able to go to work the day after a 12 hour neck surgery. 2 disks fused and a steel plate installed. I have been homeless for 3 1/2 years because ssa took 100 percent of my retirement income to pay back an alleged 186,000.00 debt. I contacted social security about the new program. I was assured that benefits would start, under new program Aug. 3. Thus the V.A. did extra ordinary help in securing me a place to live. As i would now qualify to get an apt. As usual with SSA, it did not happen. Now i am informed that benefits may begin in December, All the retirement benefits from aug to dec. will still go to repayment, I have serious doubt this will even happen. I will probably be looking at another Minnesota winter homeless. The issues is that you communicate with the local SSA people. They make an agreement. Then 6 weeks later you get a new decision from some unnamed clerk in Kansas city that overrides the ssa people. I have had this happen 6 times in my case. There is no value in visiting to local office as they cannot make a decision. Any decision the local office make is overridden by an unknown person in distant office. People you cannot communicate with. Imagine the trauma of a homeless vet that finally get a place to live. Then some unknown clerk takes it away after you promised a resolution. Now i have to fight the system to get back all the money i had to secure apt. Plus deal with a very pissed off Veterans Service officer. Who did extraordinary work. People, please dont get on comments and recommend an attorney. I have 22 pages of referrals for legal help. there is no help available. SSA will tell you to write them with you complaint. My last letter took 1 1/2 years to get a response. The response was, ssa will not respond as you had your appeal. !5 minute hearing with ssa judge to review 1019 pages of medical records.
Connie H.
Hello,
Is there an address for Martin O’Malley in Baltimore or Washington?
I want to write him and copy our local Social Security Office regarding the experience I’ve had trying to get my grandson’s SSI restored. He has Sickle Cell Disease. Was first diagnosed in 2004 and has been told by the agency that he is no longer disabled,
S.D.
We’re sorry to hear about your experience, Connie. You can mail correspondence to Commissioner Martin J. O’Malley at the mailing address shown here. Regarding your grandson’s SSI, we’re required by law to review the cases of people receiving disability benefits to make sure they’re still disabled. If you disagree with a decision we’ve made, you can appeal online. If you are unable to file your appeal online, you can call us at 1-800-772-1213, Monday through Friday, between 8:00 a.m. and 7:00 p.m. If you want us to continue paying your grandson’s SSI payments while we review his appeal, contact us right away. For information about how to request payment continuation, watch our YouTube video. To learn more about disability reviews, read our blog and visit Your Continuing Eligibility. We hope this helps.
VOTE O.
VOTE 🚫UT
ALL MAGAs💩👎,
ESPECIALLY
👉 TRUMP💩👎 / JD VANCE 💩👎 !!!
THEY HAVE PLANS TO
CUT ✂️☠️ SSA BENEFITS AND THE USUAL CUTS TO PROGRAMS PEOPLE DEPEND ON ( MEDICARE ,MEDICAID, SNAP / EBT, ETC…, WHILE GIVING MORE TAX CUT$ TO BILLIONAIRE$ THAT DON’T PAY 💩 – AS IS !!!
barbara a.
no that is not true – get your facts right
james D.
Illegal immigrants have no right to American benefits.
Speak english you mutt.
Tina L.
I received a letter that my SSi was going to change and my amount would be lowered due to increase in income and that they planed on taking 10% . to pay on an over payment. I was already paying 10% on a overpayment SSA started taking over 400.00 out of my 733.00 SSi witch was my only source of income lowering it to 302.00 a month for me and my minor son to live on said I owed 26,404.00 in overpayment I filed an appeal it was overturned in my favor said they had found numerous errors on my account but they never honored the appeal and continued to takeover400.amonth some times more this went on for yrs. . till covid shut everything down now its 2024 and it stars again this time they closed my account stated they found me to no longer be disabled .with out seeing or speaking with me no doctors nothing I don’t know how they came to this decision nor was i notified about any of this . They wouldn’t say either only that they did the end.Ive contacted over63 different attorneys ;Legal people ,firms and no one will even look at this due to theirs no big money involved so its almost impossible to get help when a government agency makes mistakes . it saddens me of how our most vulnerable are treated buy our society
Carmen B.
They claim they’re only taking 10%, but yet they took my whole check for last month and it’s showing that they’re going to do it again in August. Which is put me so far behind in my bills already. And I have called numerous times and still have gotten no help.
S.D.
We’re sorry to hear about your situation, Carmen. For your security, we do not have access to private information in this venue. Our new policy allows us to collect 10% of your total monthly Social Security benefit to recover most overpayments. We encourage you to continue to work with your local Social Security office. You can ask to speak with a supervisor during your next call or visit. For more information about the overpayment process, check out our blog. We hope this is resolved soon.
Merrianne L.
Both local office and national phone line have given me wrong information for 4 months. Now they say I must appeal.
My entire benefit is being withheld, contrary to your statement above. I have made 3 separate payment arrangements, but still no benefit.
I have used all of my savings and accrued $4000 in Credit
Card debt.
I will now have to break my
lease and give up all of my belongings.
There is a problem here, I’ve tried repeatedly to fix it. Is there anything I can do?
Obviously, none of the traditional contacts can help.
Very U.
I applied in November 2023. My application was for ssdi I had enough work credits and the local office in Port Angeles refused to process it until February of 2024. It was changed to an ssi application due to lack of work credits. Somehow I lost 7 credits. Fast forward to July, I was scheduled for a telehealth CE. I attended and the doctor was verbally abusive due to becoming irritated at my wifi speed. She requested that I go sit in my car in a parking lot to use public wifi. Mind you it was 90 degrees that day. I reported her to the state and called the case adjudicator to let her know what happened. Fast forward another week, I get a letter telling me to attend another telehealth consultation with the same doctor. This is a disgusting example of how people with mental disabilities are treated when they don’t have resources or a support system.
Very U.
This right here is why the suicide rate is so high for people with post traumatic stress. They don’t want to die, they just want life to change but can’t figure out how. Being treated like this repeatedly makes a person see how worthless they truly are in this sick world.
S.D.
We’re sorry to hear about your experience. You can submit feedback by visiting our How can we help? webpage. From there, select the “Email Us” link. This will take you to the “Email Our Support Team” form where you can submit a complaint, compliment, or suggestion. Thank you.
Gary B.
How does this 10% option work, if there is no actual overpayment? Would this affect my appeal which has not been resolved in over 7 months? As of October 2023, I have continued to send an overabundance of documentation to prove that there was a massive error on SSA’s part in incorrectly determining that an overpayment exists in my case. I have also filed an appeal and have yet to receive a decision or a direct answer as to the status of my case, as every time I call, someone tells me something different. There is no excuse for the blatant avoidance in fixing my case and answering multiple requests for information from my senator, when you have all of the information in my file which I have provided multiple times now. There is no overpayment for my particular case and the documents that prove this are sitting on somebody’s desk in the processing center for over 6 months; as of my most recent phone call today, nothing has been addressed or rectified. I also continue to have my requests to speak with a supervisor both in person at my local office and on phone calls rejected. Meanwhile, my four minor children are suffering for this error every day. Cases where there is concrete proof that SSA made an error need to be expedited and I need to have someone with supervisor status contact me immediately, since nobody will ever allow me to speak with a supervisor when requested. Any help with getting this resolved is massively appreciated.
greg c.
My issue is I repaid the overpayment 40 years ago, but they have no record of that, but they claim to have record of the over pmt. I was a teenager collecting on my deceased father’s SSI and I was required to go to school. As well a required 3.0 GPA. I failed, left school stopped collecting, but the last few pmts were considered “over” I repaid in mid 80’s but now I get a bill.
S.S.
Thanks for reading our blog and for your question, Greg. Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis. We encourage you to contact your local Social Security office. For more information about the overpayment process, check out our Frequently Asked Questions. We hope this is resolved soon.
Jimmy
Hello, I am in the same situation where when I filed this paperwork for my retirement at age 63 and still working. It never says that I have to meet a certain income to be approved for SS retirement. So when I emailed someone about that from SSA, that person told me that I qualified for it. Now they said that I have been overpaid and they want their money back. This is a bait, hook and switch tactic and needs to be addressed. Someone in your dept does not know what they are doing and probably accepts a ,out of people to get them enrolled in this program. Now I am cash strapped and have bills to pay which without my SSA I am stuck. This is wrong and immoral to us.
Barb
I agree why should we have to pay for someone else’s mistakes ? I have found that communication and knowledge is lacking with social security employees. It needs to be investigated!
Bill R.
Have been assisting a friend who is dealing with this “over payment fiasco”.
She has repeatedly requested information on “how over payment calculation was performed”; after 4-6 months she has yet to receive that info. This is a travesty to the millions of citizens of this country to navigate thru this morass of bureaucracy. SSA is an abysmal albatross around the neck of these individuals.
Please cease utilizing these funky “robot” exercises they are a nuisance. Looking forward to your reply
S.D.
We’re sorry to hear about your friend’s situation, Bill. Your friend can ask for an explanation and for options to resolve the overpayment by calling us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. Or she can contact her local Social Security office and ask to speak with a supervisor during her next call or visit. Her appeal and waiver options are explained in our Overpayments factsheet. For more information, check out our Frequently Asked Questions. We hope this is resolved soon.
S.D.
We’re sorry to hear about your situation, Jimmy. If you were overpaid due to your earnings from work, our new policy allows us to collect 10% of your total monthly Social Security benefit to recover most overpayments. You’ll find more information about repaying overpaid benefits and how to ask us for help here.
You can work and receive retirement benefits but there are earnings limits set by law. For this reason, we asked you about your expected earnings in your retirement application. If you’re working and are younger than your full retirement age during all of 2024, we must deduct $1 from your benefits for each $2 you earn above $22,320. The year you reach your full retirement age, we will deduct $1 from your benefits for each $3 you earn above a higher earnings limit up until the month you reach full retirement age. There is no earnings limit once you reach full retirement age. For more information about working and getting benefits, visit our Frequently Asked Questions. We hope this helps.