Title: 2025 WIP-C Webinar 8
URL Source: blob://pdf/9f5fea4a-dfd5-4ef8-b496-180094035cd3
Markdown Content:
Social Security Overpayments
2025 WIP-C TM Session 8
Work Incentive Support Center
Disability, Workplace, and Employment Support Practice Online Professional Programs 2
Information Screen
The Work Incentive Support Center (WISC) provides training, credentialing, and support to practitioners in the field of work incentive planning.
WISC is housed in the K. Lisa Yang and Hock E. Tan Institute on Employment and Disability. The institute, which is also known as the Yang-Tan Institute or YTI, is part of Cornell Universitys ILR School.
> Copyright 2025 Cornell ILR. All rights reserved. 3
## The WISC Team 4
## Todays Class
Overpayment Basics
Handling an Overpayment
Is the overpayment at least 2 years delinquent?
Can the overpayment be appealed?
Can the overpayment be waived?
Can there be a reasonable repayment agreement? 5
## Overpayment Basics
Whats going on? 6
## Overpayments
Overpayments occur when a beneficiary has received more benefits than they were entitled to receive.
An overpayment is the total amount an individual received for any period which exceeds the total amount which should have been paid for that period.
POMS GN 02201.001, 20 C.F.R. 416.537 7
## Common Reasons for Overpayments
SSDI work-related cessations
Medical cessations
SSI excess resources
SSI excess earned income
Failure to report income or resources 8
## Overpayments and Work
For many reasons, our customers who return to work, or enter the workforce for the first time, will be assessed an overpayment.
Preparing customers for this will encourage their work effort.
Reporting wages with the SSA call in system, cellphone app, or My Social Security Account may minimize overpayments. 9
## Who Can Be Held Liable for an Overpayment?
The beneficiary
The eligible spouse
Auxiliary beneficiaries
The estate of a deceased beneficiary or spouse
An immigrants sponsor
A representative payee 10
## Handling an Overpayment
Understanding the process
Is the overpayment at least 2 years delinquent?
Can the overpayment be appealed?
Can the overpayment be waived?
Can there be a reasonable repayment agreement? 11
> A write-off can be requested
## Is the overpayment at least 2 years delinquent? 12
## Requesting a Write-Off
SSA must write off a debt that is at least 2 years delinquent. POMS GN 02215.235(C)(2)(d)
SSA will not discharge delinquent debts if the individual is in current pay status. POMS GN 02215.235(B)(3)(b) 13
## Two Years Delinquent Means
No voluntary payment has been made 25 months after the latest of the following:
The date the debt was established on the Recovery of Overpayments, Accounting and Reporting System (ROAR) system (Title 2 debts)
The date of the initial overpayment notice for a debt established on the Supplemental Security Record (SSR) (Title 16 debts)
The date of the last voluntary payment
The date of an installment or periodic payment arrangement (if no payment is received)
The date of an affirmation decision on a reconsideration request
The date of a denial decision on a waiver request 14
## How to Request a Write-Off
The beneficiary should send a written request to the local Social Security office.
The request should include:
The date of the latest triggering event (see previous slide)
A mention of the relevant POMS section (see earlier slide)
A request that the debt be written off 15
## Can the overpayment be appealed?
Disputing the existence or amount 16
## Appeal Basics
Used to challenge the fact of and/or amount of an overpayment.
A Request for Reconsideration must be filed within 60 days of receipt of the notice.
The 5-day mailing assumption applies. 17
## More about Appeal
Use the standard Request for Reconsideration form (SSA-561-U2) or submit a letter challenging the amount or the existence of overpayment to SSA.
A work-related appeal may challenge an SSA decision that did not apply work incentives.
A Request for Reconsideration is often necessary for work-related overpayments. SSA local offices do not always know about or process all possible work-related deductions from earned income, such as subsidies and IRWEs. 18
## Even More about Appeal
Collection efforts may begin 30 days after the notice of overpayment is received, but they must cease once a Request for Reconsideration has been filed and must not be reinstated until SSA issues a decision.
After a reconsideration, a challenge to the fact of and/or amount of the overpayment should follow the standard administrative appeal process discussed earlier. 19
## Use of Appeal
An appeal should be used to correct any errors in the amount of an assessed overpayment and to apply subsidies, IRWEs, etc. It can also be used to correct wage information.
SSA should be seen as a creditor, and your efforts should be like any other effort to correct an error on a bill! 20
## Can the overpayment be waived?
Checking on fault and affordability 21
## Waiver of Recovery
Used when an overpayment exists but the consumer states that it was not their fault and they cannot afford to pay it back. Also used after an overpayment amount has been corrected.
There is no 60-day limitation to consider when filing a request for waiver of recovery of an overpayment.
As a result, the beneficiary can feel comfortable processing a Request for Reconsideration to correct the debt before requesting a waiver. 22
## An Important Form
SSA-632-BK (09-2023) is the form for requesting a waiver of an overpayment.
Tell beneficiaries to answer the questions truthfully. 23
## Request for Waiver
Filing a waiver request will also prevent all collection efforts by SSA if filed within 30 days of the notice of overpayment. If filed later, collection will also stop, and no further adjustment can occur until a decision is issued.
Once the waiver request has been filed, collection can begin only after the beneficiary has been given an opportunity for a personal conference and the waiver request has been denied.
The opportunity for a personal conference is normally provided only when SSA plans to deny the waiver application. 24
## Requirements for a Waiver
The beneficiary must be without fault and
It will defeat the program purposes to collect the overpayment because the beneficiary cannot afford to repay without risking the ability to provide for basic needs 25
## Fault
The first part of the two-part waiver test involves a determination of fault.
If the beneficiary is determined to be at fault, the overpayment must be repaid. The ability to repay becomes irrelevant. 26
## More about Fault
The regulations, at 20 C.F.R. 404.507 & 416.552, state that fault will be found if the beneficiary:
Failed to furnish information which s/he knew or should have known was material; or
Made incorrect statements which s/he knew or should have known were incorrect; or
Did not return a payment which s/he knew or could have been expected to know was incorrect. 27
## Determining Fault
When evaluating without fault, SSA must consider all circumstances, including the beneficiarys:
Disability
Age
Education
Comprehension of reporting requirements 28
## Before Moving to the Ability to Pay
For Title 2 overpayments, consider if:
The original amount of the overpayment is $2,000 or less.
It would be unfair to collect the overpayment.
Any household member gets needs-based public assistance.
For SSI overpayments, consider if:
The original amount of the overpayment is $1,000 or less.
It would be unfair to collect the overpayment.
The overpaid person gets SSI.
The overpayment was caused by excess resources. 29
## Ability to Pay
The ability to repay is the second part of the waiver eligibility test.
This test is required only if none of the special circumstances on the previous slide apply. 30
## More about Ability to Pay: Income
Social Security will deduct all household expenses plus $55 from all household income to see if the person has any money left over.
If they have money left over at the end of the month, then SSA will deny the waiver request.
If they do not have money left over, then SSA will consider resources. 31
## More about Ability to Pay: Resources
SSA will grant the waiver if the person does not have sufficient resources to repay the overpayment. SSA will disregard:
$3,000 in resources for an individual
$5,000 resources for a household of two people plus an additional $600 for each additional household member
If the persons resources exceed these amounts, then SSA will deny the waiver request.
If the person does not have the income or resources to repay the overpayment, then SSA will grant the waiver. 32
## Inability to Repay and Returning Overpayments
If the person has kept any of the overpayment, then SSA will find that the beneficiary has the ability to pay that money back.
These funds must be returned to the local office and will be used to reduce the outstanding balance. 33
## Requirement for a Personal Conference
A person seeking a waiver has the right to a personal conference prior to SSA denying the waiver request.
The meeting can be in person, by telephone, or by video conference.
20 C.F.R. 404.506 & 416.557 34
## Can there be a reasonable repayment agreement?
> If the final decision is unfavorable 35
## Collecting SSI Overpayments
Social Security can take only 10% of total monthly income (wages and adjusted SSI) to collect on an overpayment.
If the overpaid person cannot meet current and ordinary living expenses, the adjustment can be reduced to less than 10% per month. 36
## Collecting Title 2 Overpayments
Social Security can take only 10% of the benefit amount to collect on a Title 2 overpayment.
To reduce the amount being collected, use the form SSA-634 (12-2023). 37
## Collecting Overpayments from Concurrent Beneficiaries of SSI and Title 2
Cross-program collection is now an option if there is an SSI overpayment. The SSI overpayment can be collected from Title 2.
However, cross-program collection does not allow a Title 2 overpayment to be collected from SSI benefits. 38
## Request for a Change in the Overpayment Recovery Rate
Social Security wants to collect overpayments within 60 months.
If the person cannot afford to repay within 60 months, then they can request a change in the overpayment recovery rate.
SSA-634 (12-2023) is the form used to request a change in the overpayment recovery rate.
This form can be used at the start of the process in lieu of requesting a waiver. It can also be used after recovery has begun if financial circumstances change. 39
## More on Requesting a Change in Recovery Rate
When this new form is filed, collection remains the same until the new form and change in circumstances are considered and a decision is made.
Work incentive planners should nudge the Claims Specialist at the local office to resolve the matter quickly. 40
## Special Collection Rules for Fraud
If the individual is found to have willfully misrepresented or concealed material information, there is no 10% limit on recovery and other federal benefits may be at risk of collection. 41
## Special Collection Rule for Underpayments
An underpayment collection can satisfy an overpayment:
The 10% limit will not apply to past-due payments owed to the individual.
100% of these underpayments may be collected. 42
## Other Collection Options
Seizure of tax refunds
Administrative Wage Garnishment
Lump-sum settlements
A second waiver application??? 43
## Summary of Social Security Overpayments
Overpayments are common for workers.
Delinquent debts can be written off.
Appeal an overpayment if you think the amount is wrong or there was no overpayment.
SSA can waive an overpayment if the person was not at fault and cannot afford to repay the overpayment.
If all else fails, a repayment agreement can give the person extra time to repay the money to SSA. 44
## Homework
Included in the Moodle platform
Covered at the beginning of the next class
Tip
Homework is neither corrected nor required, but it is a way to let your instructors know if anything is unclear. 45
## Contact Us
K. Lisa Yang and Hock E. Tan Institute on Employment and Disability
Cornell University
ILR School
201 Dolgen Hall
Ithaca, New York 14853
[email protected] Work Incentive Support Center Disability, Workplace, and Employment Support Practice Online Professional Programs