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Social Security — the agency over 75 million Americans rely on for monthly checks — is forcing a recipient to pay back $35,000 stemming from four years of overpayment.
The woman, who spoke with CBS News on the condition of anonymity, is in her mid-70s and now on the hook for the exorbitant bill.
According to CBS News — which reviewed a letter the agency sent the woman — the SSA cut her monthly payment “to correct [her] benefit amount.” The office gave her no other explanation.
A senior was told she owed the Social Security Administration $35,000 within 30 days. Getty Images Social Security informed the beneficiary last month in a letter that she had just 30 days to repay the balance — in full. The agency told her if she failed to do so, her benefits would be slashed by 50% for the next two years starting in December.
This would recoup the government’s money but leave the recipient with around $1,350 a month.
“I’m alarmed,” she told CBS. “I’m trying to sort out what I should do next at this point because I was already underway with a plan.”
The woman first realized she was responsible for the cash after her monthly benefit check was abruptly cut in February by about $600. The reduction brought her check down to roughly $2,700 per month after all the deductions, like taxes and Medicare.
“I started calling Social Security to figure out what happened and [to share] why I was upset about it,” she told the outlet.
Social Security told the site it aims to cause no additional harm in cases of overpayment.
The Social Security Administration sends overpayment notices to around two million people a year Getty Images “The Social Security Administration is committed to ensuring that beneficiaries are treated fairly when an overpayment occurs — especially in situations where they may not have caused the error,” the spokesperson said in an email to CBS News.
Regardless, the woman is still held responsible for the high bill and faces losing even more money until the SSA recovers its green.
Overpayments are not uncommon. Just two years ago, the agency told CBS News’ “60 Minutes” that it sends overpayment notices to around two million people a year across all of its benefit programs.
The Social Security website says the reason for the errors typically occurs because of missing or wrong information.
“This can happen if you don’t tell us about changes in your life, like your ability to work, where you live, your marital status, or your income. If you receive an overpayment notice from us, it will explain the specific reason your overpayment occurred,” the website reads.
For folks who can’t afford the repayments or feel the error is unfair, waivers can be requested online. Recipients may also appeal a repayment figure if there’s a dispute with the overpayment amount.
The website says that if recipients request a waiver or appeal within 30 days, the agency will not attempt to collect the money until it has made a decision on their request. However, those who fail to repay within 30 days of the notice date will automatically lose 50% of their benefit or 10% of their SSI payment each month until the overpayment is repaid.
