SSD Overpayment Claim Updates April 2024

Important policy updates

  • claimants can now request a change in the recovery rate if they are unable to repay the debt within 60 months (it was previously 36 months).
  • As of Monday, March 25, SSA will be ceasing the practice of intercepting 100 percent of an overpaid beneficiary’s monthly Social Security benefit by default if they fail to respond to a demand for repayment. Moving forward, SSA will now use a default withholding rate of 10 percent of monthly benefits
  • SSA will be reframing their guidance and procedures so that the burden of proof shifts away from the claimant in determining whether there is any evidence that the claimant was at fault in causing the overpayment

If you are unfamiliar with SSD Overpayments, here is a quick overview of what it is and how the process works:

  • Definition of Overpayment:
    • Overpayment occurs when you receive more money than entitled for one or more months.
    • It’s a legal requirement to adjust benefits or recover debts if overpayment is established.
  • Actions Upon Receiving Overpayment Notice:
    • Read the notice carefully as each situation is unique.
    • Notice includes overpaid amount, reason, and options for repayment, appeal, or waiver.
    • Contact SSA for appeal or waiver within 60 days to avoid reduction in benefit payments.
  • Appeal Process:
    • Appeal allows review of overpayment decision if disagreement or incorrect amount.
    • Form SSA-561-U2 (Request for Reconsideration) must be submitted within 60 days of notice.
  • Waiver Process:
    • Waiver request excuses some or all overpayment if not at fault or unable to repay.
    • Form SSA-632-BK (Request for Waiver of Overpayment Recovery) can be submitted without time limit.
  • Repayment Options:
    • SSA examines if debt cause and ability to repay for waiver.
    • Flexible repayment options available, with minimum repayment as low as $10/month.
    • Form SSA-634-BK (Request for Change in Overpayment Recovery Rate) can be submitted for lower repayment rate without requesting waiver.
  • Avoiding Overpayment:
    • Timely reporting of life changes is crucial, including work, earnings, and for SSI, income, resources, and living arrangements.

View Overpayment Fact Sheet


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