If you are a recipient of Social Security benefits, you may have heard the term “equity and good conscience” in relation to overpayments.
But what does it mean, and how does it affect you? Let’s take a closer look.
According to Section 404.509 of the Social Security Administration’s regulations, recovery of an overpayment is against equity and good conscience if an individual meets certain criteria. These criteria include changing their position for the worse or relinquishing a valuable right because of reliance on a notice that a payment would be made, or because of the overpayment itself. Additionally, if an individual was living in a separate household from the overpaid person at the time of the overpayment and did not receive the overpayment, recovery may also be considered against equity and good conscience.
It’s important to note that an individual’s financial circumstances are not a factor in determining whether recovery of an overpayment is against equity and good conscience. Instead, the focus is on whether the individual has been negatively impacted by the overpayment in a way that would make recovery unfair or unjust.
To better understand this concept, let’s take a look at some examples provided by the Social Security Administration. In Example 1, a widow entered her daughter into private school based on the assumption that she would receive monthly benefits. After almost a year of receiving benefits, it was discovered that the deceased worker was not insured and all payments were incorrect. The widow has no other funds to pay for her daughter’s education, so recovering the overpayment would be against equity and good conscience.
In Example 2, an individual resigned from employment based on the assumption that he would receive regular monthly benefits, only to discover three years later that his award was erroneous. Due to his age, he was unable to get his job back and could not get any other employment. Recovery of the overpayment would be against equity and good conscience because the individual gave up a valuable right.
Examples 3 and 4 deal with situations where an overpayment was made to someone other than the individual requesting waiver. In these cases, if the individual requesting waiver did not receive the overpayment and was living in a separate household at the time, recovery may be considered against equity and good conscience.
Let’s say you received Social Security disability benefits for a few years due to a severe medical condition that prevented you from working. During this time, you also received some income from a part-time job, but you reported it as required to the Social Security Administration (SSA), and your benefits were adjusted accordingly.
However, a few years later, the SSA discovers that they made an error and that you were actually not entitled to some of the benefits you received. They send you a notice of overpayment, stating that you owe them a significant sum of money.
You are now in a difficult situation because you relied on those benefits to cover your living expenses, and you used the money in good faith. You did not know that you were not entitled to some of the benefits, and you reported all of your income as required.
In this case, you may be able to request a waiver of the overpayment, arguing that recovery would be against equity and good conscience. You can explain that you relied on the benefits to pay for your basic needs and that you used the money in good faith, without knowing that you were not entitled to all of it. If the SSA agrees that recovery would be unfair or unjust in your case, they may grant your request for a waiver.
In summary, “against equity and good conscience” is a legal term used by the Social Security Administration to determine whether recovery of an overpayment is fair and just. If you believe that recovery of an overpayment would be against equity and good conscience, you may be able to request a waiver. It’s important to note that each case is unique, and the decision to grant a waiver is made on a case-by-case basis.
https://www.ssa.gov/OP_Home/cfr20/404/404-0509.htm
At Hugo Fierro & Michael Perez, we comprise a team of diligent professionals who possess an extensive comprehension of the intricacies entailed in Social Security disability claims. Our team takes pride in utilizing our proficiency to furnish tailor-made guidance and support to our clients. We possess a skilled team that is proficient at navigating the multifaceted nuances of each case, thereby providing you with valuable insights and bespoke assistance that addresses your individualized requirements.