A recent change in the way in which the Social Security Administration Too long payment rounds can offer partial relief – but it still has serious consequences. As of April 25, the SSA began to retain up to 50% of title II's monthly services, such as retirement, disability or survivors' payments, from those who received overpayers.
Although it is a step back compared to the previously announced 100% ClawbackExperts say that the new policy can still leave retirees and other beneficiaries in financial distress.
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Trop-Payés occur when the SSA sends more money than a person is actually due. This can happen for several reasons, including agency errors or delays in the processing of information – such as changes in income, the life situation of a beneficiary or the matrimonial state.
When the SSA determines that an overpayment has occurred, it sends a notice requesting a full and immediate refund. If the beneficiary does not respond in approximately 90 days – by asking for a derogation, a review or a lower reimbursement rate – the SSa automatically begins to remember the funds.
According to a emergency message From the SSA, the new policy establishes a default reservoir rate of 50% for all the new opinions of overpayes from April 25. This means that half of a beneficiary's monthly check can be retained until the debt is reimbursed – unless they take measures.
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SSA's decision follows a counter coupling against a previous plan aimed at retaining 100% of the advantages for overpaid beneficiaries. This plan, announcement Earlier this year, would have left some people without any income. Critics, including defenders' defense organizations and legislators, have described the complete clawback “draconian”.
Although the reduced rate is considered progress, it is far from a complete solution.
“If you are counting on your services to pay your rent or mortgage and buy food, lose half this income will be devastating and can always make people become homeless,” said Kate Lang, director of federal income in aging, said CNBC.
