SSA Changes in Overpayment Process
Social Security disability and other Social Security benefits are often the recipient’s main–or only–source of support. Both types of benefits are protected from most creditors, meaning that your Social Security disability or retirement benefits won’t be disrupted by garnishment to pay debts like credit card bills and medical collection accounts. But, there are exceptions.
One important exception is that the Social Security Administration (SSA) can recoup (take back) money that was overpaid to a recipient. They’re required by law to try to collect that money. In the past, that’s created crises for some who rely on disability benefits, because the SSA could take a recipient’s full disability check to pay themselves back. Fortunately, that’s changed in 2024.
Default Social Security Recoupment Rates Drop Dramatically
Until recently, the default for collecting over paid money from a Social Security recipient was for the SSA to keep 100% of the recipient’s benefits until the overpayment was repaid in full. Suddenly losing benefits entirely for a month or more could be catastrophic for someone reliant on disability payments.
Now, the default recoupment rate is 10%. That means that in most overpayment cases, the SSA will withhold 10% from each benefit check instead of recouping the overpayment as fast as possible by withholding full benefits. Note, though, that this new rule doesn’t apply in every case. For instance, if the overpayment resulted from fraud on the recipient’s part, the SSA can recoup more aggressively.
The SSA has also made other changes that will make it easier for disability recipients and others who rely on Social Security payments to repay overpayments over time, or even to avoid repayment.
What to Do When You Get an Overpayment Letter
When the SSA determines that you’ve received an overpayment, the first thing you should do is check to see whether you believe you have been overpaid. If you think the overpayment notice is an error, you can request reconsideration.
If you believe you received an overpayment but it wasn’t your fault and you can’t afford to pay the SSA back, you can request a waiver.
If you agree that you received an overpayment and you can afford to repay it over time, but can’t afford the amount the SSA is taking out of your benefit each month, you can request a change in the recovery rate. This option is only available if you show that you can’t afford your basic living expenses with the current rate of recoupment.
Need help? At Disability Help Group, we know the SSA’s processes can be complicated and daunting. Whether you’re facing issues with an overpayment, are just starting your disability application, or have been denied benefits, our experienced advocates are here for you. To learn more about how we can help, call 800-800-3332 right now, or fill out our contact form here.
