AN elderly mother was held responsible for paying $43,000 back to the Social Security Administration over an error that took place nearly two decades ago.
As the federal agency worked to claw back the overpayment, the New York woman was left struggling and strapped for cash.
The Social Security Administration has made billions of dollars in overpayments over the past few years, paying beneficiaries more money than they are due.
These mistakes, which come back to bite Americans in the form of overpayment notices asking for up to six figures, can stem from mistakes on the beneficiary’s behalf or that of the SSA.
Overpayment notices are frequently handed to people living in poverty, the elderly, or those with disabilities, with the costly errors capable of draining an individual’s already bleak finances.
To make matters worse, there is currently no general statute of limitations on how far back the agency can go to collect a recipient’s debt.
The SSA can attempt to collect an overpayment regardless of how many years have passed, meaning that many Americans are hit with pay back requests that are decades old.
This was the case for an elderly woman who was presented with an overpayment notice that went back 19 years.
Barbara Hubbell from Watkins Glen, New York – 80 miles from Rochester – called the lack of a statute of limitations “despicable.”
She said that her mother was forced to pay back $43,000 due to a Social Security error from nearly two decades ago.
“In what universe is that even legal?” questioned Hubbell.
Paying back the tens of thousands of dollars left her mother “essentially penniless,” she said.
Hubbell’s mother, unfortunately, is just one of millions who have been targeted by the SSA to repay their debts.
For example, another woman was sent a shocking overpayment notice for $88,734 in 2021 because she was not entitled to her husband’s benefits due to her pension.
The 73-year-old’s situation was further complicated due to her health, as she had experienced a heart attack and a triple bypass surgery, sparking fear that the financial burden would cause her to lose her home.
SOCIAL SECURITY OVERPAYMENTS
Overpayments can stem from a beneficiary’s failure to accurately or promptly report changes in their income, employment, resources, family, or living arrangements.
Filing a waiver with the SSA
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office. “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website. It also lists multiple repayment options. Recipients with additional questions are urged to call 1-800-772-1213.On the SSA’s behalf, the agency may not process the information changes promptly or may commit errors in data entry, policy application, or the administrative process.
The new Social Security chief Martin O’Malley called out the “unjust” practices surrounding overpayments, arguing in March that they “shock our shared sense of equity and good conscience as Americans.”
“Innocent people can be badly hurt,” O’Malley said at the time, promising to restructure the Social Security system’s approach to overpayments.
One of the policy changes that the new chief has implemented is no longer withholding 100% of beneficiaries’ monthly Social Security checks to recoup overpayments.
While the SSA does not charge interest on overpayments, the agency will withhold a portion of your ongoing benefit payments to recover the overpayment.
Those in debt to the government may see their Social Security benefits slashed beginning later this month, announced in an “emergency” message in April.
The SSA revealed it would begin sending overpayment letters on April 25, 2025, and would withhold 50% of a recipient’s benefits starting after roughly 90 days – or July 24 at the earliest – until the overpayment is collected.
The new rate marks a U-turn from the SSA’s announcement in March that 100% of an American’s monthly payment would be withheld until their overpayment was recouped.
As the SSA switches up its overpayment withholding rate, millions of Americans received a “misleading” email from Social Security chiefs after an “unprecedented” law passed.
Plus, certain Social Security beneficiaries will have their income slashed under a Social Security switch – they’ll have to wait longer to retire, an expert said.
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