First Year payments

[mitchden]

I retired effictive April 2, 2017 at age 62. I started receiveing social security checks. 

After retiring, I worked per diem for same employer and received a W-2 for my total 2017 earnings, including my accrued vacation and sick-time. I received the same amount every month. 

I received a letter from social security saying they overpaid me. The amount of the overpayment is for 5 months. 

The basis of their calculation is that they get $1.00 for every $2.00 earned above $1690. ($1410 for 12 months). They include the earnings before I retired. 

They told me that because I earned $1500. in1 month after I retired, they look at the total yearly earnings. I haven’t been able to confirm this. Are they correct?

[cat0w]

@mitchden  Have you visited the Social Security web site?

https://www.ssa.gov/ 

Have you created an account?

Look at the FAQs, this one may answer your question.

https://faq.ssa.gov/en-US/topic/?id=CAT-01090

[mitchden]

Yes, I’ve looked at the site and the social security representatives haven’t been real helpful. I will appeal their decision. I will meet with a representative to discuss the appeal. 

[Doho]

@mitchden ,

Below are useful links that may help. I have gone through similar problems as you. I have been trying to get my account corrected for over 3 years, although my case is more complicated as I went back to full time work after retirement. If you are going to pursue a Request for Consideration you will need to file Form SSA-561-U2 with your local SSA Office to appeal  their decision.

I urge you to keep meticulous records of names, dates, your conversations, copies of any correspondence, and any SSA Office visits as I have found the SSA Bureaucracy can get complicated. I interpret these rules differently than SSA agents and I may be wrong so use my advice for what it's worth.

You are entitled to a Grace Year Special Monthly Earnings Limit Rule where only the months over the$1410 limit are subject to being withheld. Any " Earned Wages" the months before your retirement do not count in your Grace Year. After the Grace Year the annual limit of $1 for every $2 over the annual limit is in effect. When you reach you Full Retirement year another Special Rule is in effect.

All links attached should be SSA.gov sites. Please verify before clicking on them for your own safety. The

Social Security Handbook:

https://www.ssa.gov/OP_Home/handbook/handbook-toc.html

Chapter 18Reduction or Nonpayment of Social Security Benefits:

https://www.ssa.gov/OP_Home/handbook/handbook.18/handbook-toc18.html

Pay special attention to 1807. Grace Year and Non-Service Month Defined

                1807.6What is your benefit amount when the monthly earnings test applies?

When the monthly earnings test applies, regardless of the amount of annual earnings, you receive full benefits for any month that:

    Your earnings do not exceed the monthly exempt amount; and

    You do not perform substantial services in self-employment.

Note: Earnings for the entire year, i.e., January through December, are always used to determine the maximum amount we withhold from benefits if you are under FRA. However, the monthly test prevents us from withholding benefits for months that meet the above rules.

Here are other resources:

(What You Need to Know When You Get Retirement or Survivors Benefits):

05-10077

Getting Benefits While Working:

https://www.ssa.gov/planners/retire/whileworking.html

The Program Operations Manual System (POMS) is supposedly what SSA personnel use:

https://secure.ssa.gov/poms.nsf/lnx/0302501000

RS 02501.030 Applying the Monthly Earnings Test (MET):

https://secure.ssa.gov/poms.nsf/lnx/0302501030