If your last Social Security check was a little more generous, the Social Security Administration may not require you to pay back the extra money recently. This because of a series of new rules governing overpayments of Social Security, which SSA Commissioner Martin O’Malley introduced in March, you may be able to pocket the extra money.
The rules are all laid out in a four-step plan that was created to provide for beneficiaries who receive overpayments without realizing it, thinking they may have had their benefits increased.
Generally, when a Social Security beneficiary receives more money than he should, he is required to pay it back in full, either in reduced monthly payments or in a lump sum, even when it is an error. of the SSA. These refunds can negatively impact people who rely on their monthly Social Security payments to pay their house and other bills.
How Does an Overpayment of Social Security Occur?
There are several reasons why there may be overpayments, according to the Social Security Administration: for example, you start a new job and do not report work in a timely manner, or you continue receiving payments during an appeal.
The SSA says it monitors overpayments on a case-by-case basis, so if you’re notified, it’s best to contact the agency, especially if you think it might be an error. If it is a mistake, you can appeal.
How Will the New Rules Change Social Security Refunds?
On March 20, 2024, Commissioner O’Malley presented a four-step plan to transform how claimants who receive an overpayment can repay it.
First, as of March 25, the Social Security Administration no longer withholds 100% of Social Security benefits when an applicant fails to respond to a claim notice. The default withholding amount will now be 10%.
Second, applicants will no longer have to prove whether or not they were guilty of causing the overpayments. Instead, that responsibility falls on the agency if it believes that the beneficiary was at fault for receiving the excessive payment.
Third, the repayment period will be extended from 36 to 60 months. This longer repayment period will give beneficiaries more time to pay, so less money will be taken out of their monthly checks.
Lastly, the agency will make it easier for beneficiaries to apply for an exemption if they are not guilty or unable to pay the money.
How to Make a Social Security Overpayment Waiver or File an Appeal
If you believe you are not at fault for the Social Security overpayments you received, you can apply for a waiver or file an appeal.
How to request an exemption:
If you agree that you have been overpaid money on your benefits, but you do not believe you should pay it back because the overpayment was not your fault or you cannot pay it back, you can apply for a waiver. There is no time limit on applying for an exemption as long as you can prove that it was not your fault or that paying the money would cause complications.
To apply for the exemption, you must submit Form SSA-632. When you have completed it, you can mail it or drop it off at the nearest Social Security office.
Do not use this form if you believe you are not at fault and the overpayment is $1,000 or less. In that case, apply by calling 1-800-772-1213 or your local Social Security office. Your request may be made over the phone.
