To amend title II of the Social Security Act to provide that not more than 10 percent of a monthly benefit may be withheld on account of overpayments.
This bill would change how the Social Security Administration recovers overpayments of Title II benefits (retirement, survivors, and disability benefits). Specifically, for overpayments not caused by fraud or similar fault by the recipient, the SSA could not withhold more than 10% of the recipient’s monthly benefit to recover the overpayment. If the recipient wants to repay faster, they may request a higher recovery rate. Overpayments that are due to fraud or similar fault would not be subject to this 10% cap. The rule would take effect on enactment and apply to overpayments outstanding on or after that date. In short, the bill tightens the limit on how much of a monthly benefit can be withheld (to 10%) for non-fraud overpayments, while preserving the ability to recover more quickly if the recipient agrees, and it clarifies that fraud-related overpayments are not bound by this cap.
Key Points
- 1Applies to non-fraud overpayments: If the overpayment is not due to fraud or similar fault, SSA may not withhold more than 10% of the monthly benefit to recover the overpayment.
- 2Voluntary higher recovery: The recipient may request a higher recovery rate if they wish to repay more quickly than the 10% cap.
- 3Fraud exception: Overpayments resulting from fraud or similar fault are not constrained by the 10% cap.
- 4Title II focus: The change targets overpayments under title II of the Social Security Act (retirement, survivor, and disability benefits).
- 5Effective date and scope: The bill takes effect upon enactment and applies to overpayments that are outstanding on or after the date of enactment.