When an individual receives more Social Security benefits than they are eligible for, the Social Security Administration (SSA) may seek to adjust or recover the overpayment.
However, there are certain circumstances where the SSA may waive the adjustment or recovery, as it would be deemed against equity and good conscience or would defeat the purpose of Title II. This blog post aims to help you understand these circumstances and the conditions under which an overpayment can be waived.
A. Circumstances Deemed “Against Equity and Good Conscience”
The SSA will waive adjustment or recovery in the following situations, as they are considered against equity and good conscience:
- When a person is not at fault for the overpayment, and recovery would cause financial hardship (§ 404.510(a)).
- When a person is not at fault for the overpayment, and recovery would be unfair or unjust (§ 404.510(b)).
- When a person is not at fault for the overpayment, and recovery would impede the purpose of the Social Security program (§ 404.510(c)).
- In cases involving work deductions, adjustment or recovery will be waived for any month where the individual’s earnings from wages do not exceed the total monthly benefits affected for that month (§ 404.510(e)).
B. Circumstances Requiring Financial Hardship or Inequity
In the following situations, adjustment or recovery will be waived only if the evidence demonstrates that it would work a financial hardship or would otherwise be inequitable:
- In cases involving work deductions (except when the individual’s monthly earnings from wages in employment do not exceed the total monthly benefits affected for a particular month) (§ 404.510(e)).
- Situations described in § 404.510 (f) through (n).
Example: Susan’s Overpayment Waiver
Susan, a 67-year-old retiree, receives Social Security benefits. Due to an administrative error, she was overpaid by $2,000 over the course of 4 months. Susan was not aware of the overpayment and spent the extra funds on necessary medical expenses.
Once the Social Security Administration (SSA) discovers the error, they initially seek to recover the overpaid amount from Susan. However, Susan provides evidence that she was not at fault for the overpayment and that recovering the funds would cause her significant financial hardship, as she is on a fixed income and barely making ends meet.
After reviewing Susan’s situation, the SSA determines that it would be against equity and good conscience to recover the overpaid amount, as per § 404.510(a). Consequently, they waive the adjustment or recovery of the overpayment, allowing Susan to continue receiving her regular Social Security benefits without facing undue financial stress.
Conclusion: It is essential for individuals receiving Social Security benefits to understand the circumstances under which an overpayment can be waived. By being aware of these situations and the relevant regulations, individuals can ensure that they are treated fairly by the SSA and can avoid unnecessary financial hardships.
https://www.ssa.gov/OP_Home/cfr20/404/404-0512.htm
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