(LAKELAND, Fla.) — The Social Security Administration, the independent federal agency overseeing Social Security payments, announced a new series of reforms to address concerns regarding overpayments to beneficiaries.
The agency's announcement comes after facing scrunity over its handling of overpayment recovery, which included requests for billions of dollars from beneficiaries, including some of the most vulnerable Americans.
Under previous policies, beneficiaries faced surprise bills demanding immediate repayment of overpaid benefits, often totaling tens of thousands of dollars. This led to dire financial consequences for some individuals, with the agency deducting entire monthly Social Security payments, leaving them in financial distress.
In a statement, Social Security Commissioner Martin O'Malley emphasized the significance of the reforms, including ending the collection of 100 percent of an overpaid beneficiary's monthly benefit if they fail to respond to a demand for repayment.
Instead, the agency will limit collection to 10 percent of a beneficiary's monthly benefit.
Additionally, repayment plans will be extended from the previous limit of 36 months to 60 months, providing recipients with more time to repay overpaid amounts. Furthermore, beneficiaries will no longer be required to prove fault for causing the overpayment, simplifying the repayment process.
These reforms aim to alleviate the burden on Social Security recipients impacted by overpayment demands, striking a balance between fulfilling the agency's obligation to collect overpaid benefits and ensuring recipients are not unduly burdened.
The announcement underscores the importance of responsive and equitable policies in safeguarding the financial well-being of Social Security beneficiaries.
For individuals facing Social Security overpayments:
For individuals facing Social Security overpayments, seeking legal advice is recommended. Florida Rural Legal Services (FRLS) can provide guidance and free assistance to qualified people in navigating the overpayment process, ensuring beneficiaries understand their rights and options for recourse.
Call 1-888-582-3410 from 8:30 a.m. to 5:00 p.m. to see if you qualify for FREE help.