Social Security update: SSA says billions owed in overpayments to beneficiaries
Misty Severi
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Participants of the Social Security Administration’s various programs have received letters in the mail claiming that they owe thousands of dollars because they were admittedly overpaid by the administration.
Some recipients have reported that they were told to return $67,000 over the next 30 days or submit a partial refund with a letter explaining their circumstances, the beneficiaries told Newsweek. Beneficiaries can also appeal the refund.
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During the last fiscal year, the administration said it regained $4.7 billion of overpayments, but another $21.6 billion remained outstanding, according to a report by SSA’s inspector general.
“We continually strive to improve stewardship of our programs and reduce improper payments,” an SSA spokesperson told Newsweek. “While staffing losses and resource constraints have challenged our service delivery, our payment accuracy rates remain very high.”
The letters affect those on the Supplemental Security Income program, who have disabilities, and those on regular Social Security. The highest a retiree can receive through the program is up to $4,555 per month for people who retire at 70, according to the Social Security Administration. Those on SSI receive up to $914 each month for individual filers.
In some cases, the overpayments can last for years. One unnamed person said it took the administration seven years to realize she was being overpaid. Another woman said she tried to tell the SSA that she was returning to work after being disabled, but she received a letter demanding $27,000 be returned anyway.
“I kept being told I did not have to do anything more on my end. I would receive paperwork asking about my return to work and how much I am making; all to no avail. They kept sending me payments, but they also increased that pay twice,” the woman said. “I feel that those of us affected by overpayments did nothing wrong; why didn’t the SSA already have systems in place to help determine whether payments needed adjusting instead of now stating they don’t have enough staff?”
“It’s not right that myself and a significant amount of other citizens are now being demanded to pay back what the SSA admits they made in error,” she said.
One way that the administration can receive the funds back is by reducing the monthly installments for those who owe money. But the money can account for nearly all of what the seniors and recipients live off of, and about 66 million residents receive benefits as of June 2022, according to the SSA.
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The future of the program is uncertain, and Social Security payments could become lower in 2034 unless Congress agrees on actions to prevent it. Analysts estimate that the SSA will no longer be able to give out full payments to recipients as early as 2034 due to a rising number of retirees and a shrinking number of workers.
Another change to the program could include restructuring how the payments go out, but people already on Social Security would not be affected by these changes.