During 2023, the Social Security Administration (SSA) was required to reimburse its elderly beneficiaries for overpayments that had been made to them.
We are talking about the money that was given to them in excess and with the full responsibility of the agency, therefore, returning it leads to dissatisfaction.
It turns out that, regardless of this, SSA must recover overpaid benefits And this resulted in a wave of criticism. Now, the agency has announced a new step to refund the money.
The truth is, during the past year, some beneficiaries received surprise letters demanding huge refunds within 30 days.
Many reported that they didn’t have the statistics, felt it was unfair, or they feared the government might retaliate.
There were also cases in which it was claimed The agency cut off all monthly Social Security payments.
For this reason, Social Security Commissioner Martin O’Malley said the agency will discontinue this previously implemented practice.
What will happen from now on?
Now, the agency will limit recoveries to 10% of an overpaid beneficiary’s monthly benefit, O’Malley said.
This means they will deduct $10.00 USD for every $100.00 USD in benefits from past Social Security overpayments.
On the other hand, the administration will extend the payment plan to 60 months as against its earlier limit of 36 months. But, in addition, the agency said it is making two additional changes.
Therefore, beneficiaries who were overpaid will no longer need to prove that they are not at fault for this payment.
Likewise, it will be easier for people to request a payment exemption if they believe they are not at fault or unable to pay.
CuriouslyAfter describing him as “cruel at heart”. for Overpayment recovery system, O’Malley became commissioner of the SSA.
