CNS News– Sens. Gary Peters (D-MI) and Debbie Stabenow (D-MI) wrote to the Social Security Administration on Thursday to reduce overpayment errors. The senators wrote that overpayment issues, which can take years to detect, can strain millions of recipients, including seniors and disabled people. Payback is required for overpaid recipients.
“We have heard from numerous Michiganders regarding the impact unexpected overpayments that were sent by the SSA have caused on some of the most vulnerable beneficiaries of Social Security,” the senators said. Beneficiaries who’ve done nothing wrong must repay overpayments, which can be difficult.
Because of their devastating impact, the agency must improve its processes and controls to reduce overpayments for beneficiaries who depend on these benefits.” Senators say the administration overpaid more than $6 billion annually, including a record $11 billion in fiscal 2022.
Social Security overpayment errors of $11 billion in 2022 leave millions of recipients with massive debts https://t.co/EqO8ukUYGM
— Washington Examiner (@dcexaminer) March 1, 2024
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Due to late detection, recipients may owe tens or hundreds of thousands of dollars. Lawmakers said errors can happen in many ways, but the SSA is usually to blame. Errors include miscalculating benefits or not notifying the office of income changes.
Beneficiaries should report payment changes immediately. Overpaid recipients can appeal the bill, set up a repayment plan, or file for bankruptcy if they owe thousands to the agency. “Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis,” explained the SSA last year.
Appealing is especially useful if a person disagrees with being overpaid or thinks the amount is wrong. To avoid paying back the overpayment, they can ask the agency to waive collection. Waivers are submitted without deadlines.” Lawmakers say 2 million people are overpaid annually.
Senators also asked how the agency would fix issues and improve payment accuracy. The SSA pays over $1.4 trillion to 71 million people, including 2 million in Michigan. Disability payments can be made earlier than 62, but retirement payments start at 62. Top earners retire at 70 and receive $4,873 a month.