Cross-Program Recovery: When Will It Begin? § 404.545

In this blog post, we’ll discuss the process and timeline of cross-program recovery from current monthly benefits as outlined in § 404.545.

Cross-program recovery is a method used by the Social Security Administration to collect overpayment balances from beneficiaries receiving Title VIII or Title XVI benefits.

Key Points:

1. 30-Day Grace Period: The cross-program recovery process will start no sooner than 30 calendar days after the date of the notice described in § 404.540. If the full overpayment balance is paid within this 30-day period, cross-program recovery will not commence.
2. Request for Review: If a beneficiary requests a review of the overpayment balance determination within the 30-day period, cross-program recovery will be put on hold. The recovery process will not begin until the matter has been reviewed and a decision has been made in writing.
3. Withholding a Different Amount: If a request is made within the 30-day period to withhold a different amount than stated in the notice, cross-program recovery will not begin until a new withholding amount is determined. This provision does not apply when § 404.535(d) is in effect.
4. Waiver of Recovery: If a beneficiary requests a waiver of the overpayment balance within the 30-day period, cross-program recovery will be paused. The process will not resume until the waiver request has been reviewed and a decision has been made in writing. The waiver process can be found in §§ 404.506 through 404.512.

Example Scenario: John, a recipient of Title XVI benefits, receives a notice from the Social Security Administration (SSA) stating that he has been overpaid by $2,000. The notice explains that the SSA will begin cross-program recovery from his current monthly benefits after 30 calendar days.

John has a few options during this 30-day grace period:

1. If John pays the full $2,000 overpayment balance within the 30-day period, the SSA will not proceed with cross-program recovery.
2. Suppose John disagrees with the overpayment balance determination. In that case, he can request a review within the 30-day period, and the SSA will not initiate cross-program recovery until they review the matter and notify John of their decision in writing.
3. If John agrees that he has been overpaid but cannot afford the proposed withholding amount, he can request a different amount to be withheld within the 30-day period. The SSA will not start cross-program recovery until they determine a new withholding amount.
4. Finally, if John believes that the recovery of the overpayment balance would cause financial hardship or that the overpayment was not his fault, he can request a waiver within the 30-day period. The SSA will not begin cross-program recovery until they review the waiver request and notify John of their decision in writing.

Understanding these provisions can help John make an informed decision about how to respond to the overpayment notice and navigate the cross-program recovery process.

Conclusion: The cross-program recovery process aims to recover overpayment balances from Title VIII or Title XVI beneficiaries. However, there are provisions in place to ensure fairness and provide beneficiaries with the opportunity to contest or modify the recovery process. Understanding these guidelines can help beneficiaries navigate the process and safeguard their rights.

https://www.ssa.gov/OP_Home/cfr20/404/404-0545.htm