Social Security Overpayment 2024 The Social Security Administration’s overpayment policy is being modified. A four-step plan to assist beneficiaries who get overpayments without realizing their benefits haven’t increased was outlined by SSA Commissioner Martin O’Malley in March.
What is a Social Security overpayment?
When the Social Security Administration overpays a beneficiary, it is known as an overpayment. Overpayments can occur for a number of reasons, including the SSA computing an incorrect amount or a recipient failing to update their employment status, marital status, or income.
Beneficiaries who receive overpayments from the Social Security Administration are typically required to repay the money, regardless of fault. Social Security benefits are paid for by taxpayer cash, so the SSA is legally obligated to recoup overpayments.
How will Social Security repayments be affected by the new regulations?
Commissioner O’Malley unveiled a four-step plan on March 20, 2024, to alter the repayment process for claimants who receive overpayments.
First, in the event that a claimant fails to reply to a demand for repayment notice, the Social Security office will no longer withhold 100% of payments as of March 25. 10% will now be the default withholding amount.
Second, there will be no requirement for claimants to provide evidence of their guilt about overpayments. Instead, if the agency determines that the beneficiary was not at fault for receiving the overpayment, then it will bear that liability.