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Neighborhood
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Social Security and SSI Overpayments
Common Overpayment Causes:
SSI excess resources: SSI benefits paid to an individual during a period when the person possessed excess resources beyond SSI limits.
SSI or SSDI excess income: Benefits paid to an individual who received earned or unearned income that exceeds the SSI and/or SSDI limits.
SSI non-disability eligibility rules: SSI benefits paid to an individual who was ineligible, due to any of numerous possible violations of the SSI eligibility rules.
SSDI substantial gainful activity (SGA) cessations: SSDI benefits paid to an individual who performed SGA after the nine-month trial work period.
Who Does SSA Seek To Hold Liable For An Overpayment:
The eligible individual
The eligible spouse
Other persons receiving benefits on the earnings record of the overpaid individual
The estate of a deceased individual or spouse
An alien’s sponsor
A representative payee if the overpaid money was not used for the needs of the beneficiary.
Challenging An Overpayment:
Reconsideration: Challenging the fact and/or amount of an overpayment, by filing a request for reconsideration.
- Standard appeals process applies
Waiver: Admitting the existence of an overpayment but challenging the agency’s authority to require repayment.
- Criteria: Claimant must be without fault and either recovery would defeat the purpose of the Social Security Act (e.g., recovery would cause undue hardship or recovery would be against equity and good conscience).
Time Periods To File Requests:
Reconsideration: Within 60 days from date of notice
Waiver: At any time, even after the overpayment has been recouped
Adjustment: If claimant requests reconsideration or waiver within 30 days of notification, payment will continue without adjustment until a decision is made.
Preserving Eligibility:
- 10 day rule: When SSA is proposing that benefits be terminated or suspended due to ineligibility, claimant can continue receiving interim benefits while the issue of ineligibility is appealed.
Act promptly to avoid disagreements with SSA about timeliness with respect to recoupments or continuation of benefits or receipt of interim benefits.
Prepared by Neighborhood Legal Services, Inc. - Updated
January 2008
(716) 847-0650 • Work Incentives Hotline: 1-888-224-3272 • www.nls.org
