Major changes to how the Social Security Administration handles overpayments were announced recently
The Social Security Administration is capping clawbacks of benefit overpayments at 10% of benefits checks instead of 100% after being criticized for draconian repayment plans that left some beneficiaries destitute.Social Security Commissioner Martin O'Malley said in a statement that the agency would cease "the heavy-handed practice of intercepting 100% of an overpaid beneficiary's monthly Social Security benefit" if they failed to respond to a demand for repayment.
The agency also wants to make it easier for people to request a repayment waiver in case they believe they weren't at fault or are unable to pay. To qualify, Social Security beneficiaries would only need to provide a verbal summary of their income, resources and expenses, and recipients of the means-tested SSI program would not need to provide even this summary.
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