New policy of Social Security Administration (SSA) – Now decision to stop the entire pension!
The Social Security Administration (SSA) of America has announced the implementation of a new and strict rule from March 27, 2024. Under this new rule, if a beneficiary receives a notice of overpayment, the SSA can stop their entire Social Security pension until the entire dues are paid.
This decision is in stark contrast to the decision taken last year, when the compensation for overpayment was fixed only on the basis of 10% monthly deduction. This new decision of SSA has raised concerns among senior citizens, disabled and persons dependent on Social Security.
Who will be affected?
If you receive an overpayment notice after March 27, the SSA can stop your entire pension and no payment will be made until the dues are fully refunded.
Some important points:
| Group | Repayment Rate Before March 27 | Repayment Rate After March 27 |
|---|---|---|
| Social Security recipients with overpayment notices | 10% per month | 100% per month (full withholding) |
| SSI recipients (low-income seniors, disabled individuals) | Exempt | Exempt |
- If you received the notice before March 27, then the old rule will apply to you, that is, only 10% will be deducted from you every month.
- If you are receiving SSI (Supplemental Security Income), then this new rule will not apply to you.
Why is there controversy over this policy?
Many social workers and affected people are strongly criticizing this new rule of SSA. The main reasons are:
Overpayment due to SSA’s own mistakes:
Most beneficiaries did not know that they had received more money, as it was due to administrative errors of SSA.
Sudden demand to repay thousands of dollars:
Many beneficiaries received notices to return thousands of dollars within 30 days, which could put them in serious financial trouble.
Investigation Revealed:
An investigation by “60 Minutes” and KFF Health News found that fraud contributed very little to the overpayment cases, while most of the cases were caused by SSA’s irregularities.
Despite this, SSA’s acting commissioner Lee Dudek justified this decision, saying that it is necessary to protect the Social Security Trust Fund.
What to do if you get an overpayment notice?
If you get an overpayment notice from SSA, there is no need to panic. You have three main options:
Apply for a waiver
If the overpayment was not your fault and paying it may worsen your financial situation, then you can ask for a waiver from SSA, so that you will not have to return the money.
Appeal
If you think SSA has made a mistake, you can appeal against this decision. For this, you have to contact SSA immediately after receiving the overpayment notice.
Ask for payment plan in installments
If you cannot pay the entire amount at once, you can ask SSA for permission to pay in lower monthly installments. This will not put much pressure on your financial situation.
- Important: As soon as you get the notice, contact SSA immediately and get information about your rights.
What will be the effect of this decision of SSA?
This new rule of SSA can put thousands of senior citizens, disabled people and people dependent on social security in financial crisis. Because:
- Many beneficiaries do not have any other income source.
- By stopping the entire payment, people will not be able to meet their essential expenses.
- Innocent people will be troubled if they receive a wrong overpayment notice.
The purpose of social security benefits in the US is to provide financial security to the people, but this new decision can cause more trouble to the people. Therefore, if you are also a beneficiary of Social Security, keep your information updated, stay connected with SSA and take immediate action if you receive an overpayment notice.
FAQs – Frequently Asked Questions
When will this new rule come into effect?
From March 27, 2024.
Whose entire pension can be stopped?
Those who will receive an overpayment notice after March 27. SSI beneficiaries are exempt from this.
If I get an overpayment notice from SSA, what can I do?
You can request a waiver, appeal or payment plan.
Can I appeal against the overpayment?
Yes, if you think SSA has taken out a wrong overpayment, you can appeal against it.
If I cannot pay the full amount, what are the options?
You can ask SSA for a payment plan in installments, so that your payment will be made in the form of a lower monthly deduction.
Will this new rule apply to SSI (Supplemental Security Income) beneficiaries?
No, SSI beneficiaries will still have to pay under the old rule of 10% deduction.
Conclusion
This new rule of SSA has become a matter of concern for millions of senior citizens and Divyang beneficiaries. If you are also a Social Security beneficiary, then make your financial plan in advance and keep getting updates from the official website of SSA.
- Important: If you receive an overpayment notice, don’t panic! Contact the SSA immediately and get information about your options.