Every month, the Social Security Administration (SSA) pays you your Supplemental Security Income (SSI), or retirement, or survivor benefits… the deposit or check always arrives on time and there is no complaint. One day, suddenly, extra money arrives that exceeds the usual amount you receive every month. What was that? Why is the SSA sending you more money than you should?
Those are the infamous and very dangerous overpayments that happen for various reasons and that, if you do not take the right actions, could cause serious problems in the future. The SSA overpays when the benefit amount cannot be calculated correctly because the information the entity has is incorrect, or incomplete.
It can happen, for example, if you do not share updates with the Social Security about changes in your life, such as improvements in earned income, marital status, or other life situations that are considered when paying beneficiaries.
Why Do SSA Overpayments Happen?
When the SSA has sent you an overpayment, the situation becomes complicated and daunting, but it is easy to solve with the right actions, just in time. The first thing is that you will receive a notification that says that you have received more funds than the corresponding ones, and it is explained that it was an error.
Then, the SSA is going to vehemently demand that the money be returned, as soon as possible. Most likely, the notice note explains exactly why this error has occurred, so the window of possibilities is also opened for the beneficiary, to claim in case it is considered that the SSA is making a mistake in claiming this money.
Also, said note indicates how much the exact amount of the overpayment will be, including any accrued interest if applicable, and information is provided on how this amount was calculated.
Social Security Overpayments: How to Return the Money to the SSA?
First of all, keep in mind that you will have 30 calendar days, after receiving the overpayment notice, to return the money to the SSA. They will wait at least 30 days (plus 5 extra for mail times) to start collection actions. If you submit a request for exemption or reconsideration before 30 days have passed, the overpayment will not start to be collected until a decision is made on your request.
If you are ready to pay, you can contact the SSA by phone at the service available 24 hours a day, every day of the week, (in English and Spanish), at +1 855-807-8807.
Follow the prompts to set up payments for the amount you owe. If you have any hearing problem, call TTY at +1 800-325-0778.
If you are eligible, you will be informed that you can pay online. This will be duly indicated in the notice letter, and it will also come with a remittance identification to make the shipment. If you prefer, and you are authorized, you can pay through the website pay.gov.
New Rules to Change Social Security Repayments Procedures
SAN Commissioner Martin O’Malley announced on March 20, 2024, a four-step plan to modify the procedure for refunding overpayments to claimants.
- Effective March 25, the Social Security Administration will reduce withholding from 100% to 10% when a claimant fails to respond to a payment notice.
- Claimants will not need to prove fault for overpayments; this responsibility falls on the agency if it deems the beneficiary at fault.
- The repayment period will be extended from 36 to 60 months, allowing recipients more time to pay without affecting their monthly checks.
- The agency will simplify the waiver application process for those blameless or unable to repay the money.