The "Social Security Overpayment Relief Act" limits the Social Security Administration from recovering overpayments made more than 10 years prior to the discovery of the error.
Kristen McDonald Rivet
Representative
MI-8
The "Social Security Overpayment Relief Act" amends the Social Security Act to limit the recovery of overpayments under Title II (Social Security) and Title XVI (Supplemental Security Income) to a ten-year period. The government is restricted from recovering funds from individuals who received overpayments more than 10 years before the error was discovered.
Bill Sets 10-Year Clock on Social Security Overpayment Clawbacks
This bill, the "Social Security Overpayment Relief Act," puts a time limit on how far back the Social Security Administration (SSA) can go to recover money it accidentally paid out. Specifically, it proposes a 10-year cutoff: if the SSA discovers an overpayment under Social Security (Title II) or Supplemental Security Income (SSI, Title XVI) more than 10 years after the payment error occurred, the agency generally couldn't try to get that money back from the individual.
Decoding the Decade Deadline
So, how does this work in practice? The key is the timing of discovery. If the SSA identifies an overpayment within that 10-year window following the incorrect payment, they can still pursue recovery actions like adjusting future benefits or seeking repayment. But if the discovery happens after that 10-year mark has passed since the overpayment was made, this bill would block the recovery attempt. It essentially creates a statute of limitations for the agency finding these specific errors.
Breathing Room for Recipients
For individuals receiving Social Security or SSI, this could mean significant peace of mind. Imagine getting a government notice today demanding repayment for an extra check you supposedly received back in, say, 2013, which you might not even remember or have records for. This legislation aims to prevent that kind of scenario. It offers protection against unexpected financial hardship caused by very old administrative errors, particularly crucial for those relying on fixed incomes who might struggle to repay debts they weren't aware existed.
The Balancing Act
While providing relief for recipients, the bill also affects the SSA's operations. The agency is tasked with safeguarding program funds, which includes recovering improper payments. This 10-year limitation could mean that some funds overpaid more than a decade ago might not be recouped. It represents a policy choice, balancing the need for individual financial stability against the government's efforts to correct past payment errors and maintain the integrity of the Social Security and SSI funds.