Notes from 2025 WIP-C Webinar 8: Social Security Overpayments

Introduction

• Organization Involved: Work Incentive Support Center (WISC) under Yang-Tan Institute, Cornell University.
• Purpose: Training and support in work incentive planning.

Topics Covered in Today's Class

1. Overpayment Basics
2. Handling an Overpayment
   • Delinquency status
   • Appeal possibilities
   • Waiver options
   • Reasonable repayment agreements

Overpayment Basics

• Occurs when beneficiaries receive more benefits than entitled.
• Defined legally in POMS GN 02201.001 and 20 C.F.R. 416.537.
• Common Reasons:
  • SSDI or SSI work-related cessations
  • Medical cessations
  • Excess resources or income not reported

Overpayments and Work

• Work re-entry often involves overpayments.
• Reporting wages to SSA can minimize overpayments.

Liability for Overpayments

• Liable parties include:
  • Beneficiaries
  • Eligible spouses
  • Auxiliary beneficiaries
  • Estates of deceased individuals
  • Sponsors and representative payees

Handling an Overpayment

• Delinquency: A debt over 2 years may be written off unless the individual is currently paying.
• Appeals:
  • Must be filed within 60 days.
  • Use SSA-561-U2 form.
  • Appeals pause collection efforts until resolved.
• Waivers:
  • No fault and inability to pay can warrant a waiver.
  • Form SSA-632-BK needed for waiver requests.
• Repayment Agreements:
  • Request a change in recovery rate using SSA-634 form.
  • Collection can be adjusted based on financial circumstances.

Requirements for Waivers

• Fault:
  • Determined by knowledge of reporting requirements and inaccurate information.
• Ability to Pay:
  • Consideration of household income and resources.

Special Collection Rules

• Fraud: No limit on recovery if fraud is involved.
• Underpayments: Can offset overpayments without 10% limit.
• Other Options: Tax refunds seizure, wage garnishment, lump-sum settlements.

Key Takeaways

• Overpayments are common and manageable.
• Various options (appeal, waiver, repayment agreement) are available to address overpayments.

Homework

• Available on the Moodle platform.
• Not mandatory but helps instructors understand student difficulties.

Contact Information

• Institute: Yang-Tan Institute, Cornell University
• Contact Email: [email protected]

This summary provides an overview of handling Social Security overpayments, highlighting key methods such as appeals, waivers, and repayment agreements.