📋 Social Security Retreats on Plan to Claw Back Overpayments (AARP Article)

[SpringIsHereVA]

FROM THE ARTICLE:

Social Security Retreats on Plan to Claw Back 100% of Benefits for Overpayments.

SSA will now withhold up to half of benefits from those who owe for past payment errors.

By Andy Markowitz, AARP. Published April 30, 2025.

Social Security Administration (SSA) is scaling back a policy shift that would have cut off benefits to people whom the agency overpaid in the past until the debt is repaid.

In an “emergency message” to employees dated April 25, the SSA set a default withholding rate of 50 percent of benefits to recoup money from beneficiaries who were paid more than they were eligible to receive.

USE LINK BELOW TO READ THE ARTICLE: https://www.aarp.org/social-security/ssa-overpayment-clawback/

[SpringIsHereVA]

This reminds me of times before I retired when my employer OVERPAID me. To protect myself from being accused of fraud on my timecard/electronic clock in, I would NOTIFY my boss & payroll IMMEDIATELY via email. I would have a copy coming to me as "proof" it was sent. Also attached a copy of direct deposit to my bank. Lol, then NOT SPEND the over payment. That way it was there for them to TAKE BACK whenever they got around to it.

So far, Social Security has NOT overpaid my retirement benefits. But IF they did, SAME routine. Seen too many stories of folks TRYING to return the Social Security overpayment and having NO success.

Take care,

Nicole  👵

[GailL1]

If it was that easy, it would be great.  Most of these are Supplemental Security Income (SSI) rather than a Social Security benefit.  The Social Security Administration is the government entity that administers the SSI program.

Problem is with many of these overpayment, the beneficiary or their representative payee (RP) don’t realize it has occurred or they don’t realize that the benefits should be stopped for some reason and then it may just snowball into a higher and higher amount.  Or they don’t care because they are the RP and are suppose to be using it for the good of the beneficiary.  In fact, many times, the SSA is coming after people (adults) for their overpayments which occurred when they were kids and they may not even realize they were getting a benefit.  

The SSA may lose track of the beneficiary and then they may find out they owe for this overpayment when they don’t get back their tax refund because it has been taken to pay off some or all of it.  

For a long time, this type of collection was not pursued mainly because of the situation that it puts these low income folks into - the same reason why they are now modifying this repay plan.  

A pure mess - 

[SpringIsHereVA]

@GailL1 , all good points, but I agree with Social Security - overpayments need to be returned. Folks know about them and IF they choose to spend it = they have created an issue. There is NO free ride in life. In regards to low income, way too many are choosing to stay low income to continue to NOT being responsible. The way 2025 is going with MORE coming, these folks better cut back. Folks made it through the Great Depression, so can they. There is NO excuse for NOT returning these funds. Just my 1/2 cent. Take care, Nicole  👵

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➡️[*** Gail wrote on Thursday 5/1/25: If it was that easy, it would be great.  Most of these are Supplemental Security Income (SSI) rather than a Social Security benefit.  The Social Security Administration is the government entity that administers the SSI program.

Problem is with many of these overpayment, the beneficiary or their representative payee (RP) don’t realize it has occurred or they don’t realize that the benefits should be stopped for some reason and then it may just snowball into a higher and higher amount.  Or they don’t care because they are the RP and are suppose to be using it for the good of the beneficiary.  In fact, many times, the SSA is coming after people (adults) for their overpayments which occurred when they were kids and they may not even realize they were getting a benefit.  

The SSA may lose track of the beneficiary and then they may find out they owe for this overpayment when they don’t get back their tax refund because it has been taken to pay off some or all of it.  

For a long time, this type of collection was not pursued mainly because of the situation that it puts these low income folks into - the same reason why they are now modifying this repay plan.  

A pure mess - ***]

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[GailL1]

@SpringIsHereVA 

Never said that they should not pay it back but there is still problems - if it was as simple as a person getting what the SSA has deemed to be an overpayment and then asking for it back with an explanation of what happened, there probably would not be a problem.  If it was as easy as you outlined, it would be a great relief.

Here is the whole history of the problem and what actions or non-actions have happened thru the almost 20 year time period.

KFFHealth News - SSA Overpayments Outrage 

Yes, it is a good thing that at least people can pay it back according to a schedule and not all at once especially since these are mostly vulnerable people of the lowest income - the elderly, the blind and the disabled.

Like this lady who is one in the investigation:

Justina Worrell, 47, works part time as a kitchen helper in an Ohio nursing home. She has cerebral palsy, an intellectual disability, and a cardiac condition that required she get an artificial heart valve at age 20.

A year ago, she was earning $862 a month and receiving about $1,065 in monthly Social Security disability benefits when a letter arrived from the federal government. The Social Security Administration had been overpaying her, the letter said, and wanted money back. Within 30 days, it said, she should mail the government a check or money order.

For $60,175.90

The Social Security Administration is trying to reclaim billions of dollars from many of the nation’s poorest and most vulnerable — payments it sent them but now says they never should have received.

During the 2022 fiscal year, the agency clawed back $4.7 billion of overpayments, while another $21.6 billion remained outstanding,

Much more complicated than just send back the overpayment - 

Should the SSA send at least an itemization of how it happened?  Should SSA have a time limit on recognizing and attempting to collect these [alleged] overpayment?

Jo Vaughn, a disabled 63-year-old in New Mexico, received $3,200 in federal covid relief. Then came a letter from the Social Security Administration dated Aug. 25, 2023, saying she owed the government $14,026. 

As the nation reeled from covid-19, the federal government sent many Americans a financial lifeline. But this bounty added to their bank account where under the SSI rules can have no more than $ 2000 in the account at the beginning of the month.  Thus each month they were over this limit from whatever the source of the income - their SSI benefit should have been withheld and not paid.

Of course, this was not the way it was suppose to be - but somebody in government forgot about this rule and thus overpayments resulting from this government mistake happened.  

Same problem as it always has been - just a different date- 

AARP.org - 08/29/2018- Government May Have Overpaid $380 Million in SSI Benefits 

IMO, this isn’t about the number of employees that SSA needs to conduct these income reviews for people on SSI - it is the rule itself that needs to be changed.  BUT HOW?  

Perhaps require the beneficiary or their Representative Payee to report any an all income that might come in from any source - even a $ 100 birthday gift to their disabled grandkid from dear ole granny.  

But the government already has so many rules and forms to keep up with especially the SSA plus their instructions are very lacking in explaining how the form is to be completed especially to those who aren’t familiar with government rules and regs.

But a computer program that could be developed to check these differences in what is in the bank account over the limit compared to the reports submitted could at least identify if there was a real problem or not.  

Government seems to rely on employment numbers to cover all the bases where a computer program relies on a limited number of employees and technical knowledge and skills.  

SSA should start placing funds in the tech area rather than the hiring or more and more to enforce antiquated rules and regs.

[SpringIsHereVA]

Gail @GailL1 , I "respect" your comments as usual, but NO, we DO NOT need anymore computers involved in this mess. And moving forward, they need to figure out how to PREVENT the mess while collecting the overpayments. Just my 1/2 cent.

➡️[*** YOU WROTE: But a computer program that could be developed to check these differences in what is in the bank account over the limit compared to the reports submitted could at least identify if there was a real problem or not. Government seems to rely on employment numbers to cover all the bases where a computer program relies on a limited number of employees and technical knowledge and skills. SSA should start placing funds in the tech area rather than the hiring or more and more to enforce antiquated rules and regs.

Take care,

Nicole  👵

[GailL1]

Then tell me how, SSA is suppose to know that a disabled, blind, mentally ill, young or elderly person with or without a representative payee that has more than $ 2000 in their bank account some months or years from their last review is suppose to pay back several hundreds or thousands of dollars to the SSA if they are only getting $ 980 or less per month?  

They are too busy trying to survive on that amount to even realize they are being overpaid.  To them, that extra few bucks they have received from whatever source, sometimes way back when is just some added money to help them get thru the month.   

What about the disabled kid who’s parents have gotten them on the SSI program when they were 1st born because they had low birth weight fails to get them released from the benefit when they, hopefully, grow into a natural rhythm.  Then 20 years later when the parents are dead and gone, SSA come after the kid for for several thousand in overpayments.  Whose fault is this - the kids?  It is the kid’s SS# so that’s who the SSA goes after.

When the overpayments involve criminal action by the beneficiary or their representative payee , we prosecute,  but that also may take years.  

I just think we need to have some different rules and some different computer programs to find these cases faster and take action sooner.  

There is already proposed legislation to up that $ 2000 limit in the bank account of SSI recipients to something more realistic.  

CPBB.org- 09/20/2023 - The Case for Updating SSI Asset Limits 

Although $ 10,000 is quite a jump from $ 2,000 but according to the analysis “Raising or Eliminating Limits Would Reduce Administrative Burdens Without Dramatically Increasing Enrollment”

[SpringIsHereVA]

Gail @GailL1 , I have no idea but the overpayments need to stop. Take care, Nicole  👵

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➡️[*** Gail wrote on Thursday 5/1/25: Then tell me how, SSA is suppose to know that a disabled, blind, mentally ill, young or elderly person with or without a representative payee that has more than $ 2000 in their bank account some months or years from their last review is suppose to pay back several hundreds or thousands of dollars to the SSA if they are only getting $ 980 or less per month?  

They are too busy trying to survive on that amount to even realize they are being overpaid.  To them, that extra few bucks they have received from whatever source, sometimes way back when is just some added money to help them get thru the month.   

What about the disabled kid who’s parents have gotten them on the SSI program when they were 1st born because they had low birth weight fails to get them released from the benefit when they, hopefully, grow into a natural rhythm.  Then 20 years later when the parents are dead and gone, SSA come after the kid for for several thousand in overpayments.  Whose fault is this - the kids?  It is the kid’s SS# so that’s who the SSA goes after.

When the overpayments involve criminal action by the beneficiary or their representative payee , we prosecute,  but that also may take years.  

I just think we need to have some different rules and some different computer programs to find these cases faster and take action sooner.  

There is already proposed legislation to up that $ 2000 limit in the bank account of SSI recipients to something more realistic.  

CPBB.org- 09/20/2023 - The Case for Updating SSI Asset Limits 

Although $ 10,000 is quite a jump from $ 2,000 but according to the analysis “Raising or Eliminating Limits Would Reduce Administrative Burdens Without Dramatically Increasing Enrollment” ***]

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[GailL1]

You see, @SpringIsHereVA, we agree on this premise - but again, Congress has taken no agreed upon stance on this issue because they cannot agree on what to do - so it just keeps going like always - INACTION and the same ole problem remains.

[SpringIsHereVA]

Well Gail @GailL1 , maybe it is time to disband Congress. Take care, Nicole  👵

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➡️[*** Gail wrote on Thursday 5/1/25: You see, @SpringIsHereVA, we agree on this premise - but again, Congress has taken no agreed upon stance on this issue because they cannot agree on what to do - so it just keeps going like always - INACTION and the same ole problem remains. ***]

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