Overpayments in the Social Security Administration’s Programs: In Brief

Overpayments in the Social Security

Administration’s Programs: In Brief

October 31, 2024

Congressional Research Service

https://crsreports.congress.gov

R48251

Overpayments in the Social Security Administration’s Programs: In Brief

Contents

Introduction ..................................................................................................................................... 1

The Amount of Overpayments ........................................................................................................ 1

Major Causes of Overpayments ...................................................................................................... 2

Miscalculation by SSA .............................................................................................................. 3

Pensions Based on Noncovered Employment .................................................................... 4

Earnings .................................................................................................................................... 4

Marital Status and Dependency................................................................................................. 5

Factors Affecting Only SSI ....................................................................................................... 6

Financial Accounts .............................................................................................................. 6

In-Kind Support and Maintenance ...................................................................................... 7

Statutory and Regulatory Requirements .......................................................................................... 7

Liable Individuals...................................................................................................................... 8

Primary and Contingent Liability ....................................................................................... 8

Joint and Several Liability .................................................................................................. 8

Appeal and Waiver Rights ......................................................................................................... 9

Administrative Waiver Tolerances .................................................................................... 10

Recovery Methods .................................................................................................................. 10

Internal Collections ........................................................................................................... 10

External Debt Collection.................................................................................................... 11

Look-Back Period ................................................................................................................... 12

Tables

Table 1. Social Security Administration (SSA) Improper Payments in FY2022............................. 2

Contacts

Author Information........................................................................................................................ 13

Overpayments in the Social Security Administration’s Programs: In Brief

Introduction

An overpayment in Social Security Administration (SSA) programs occurs when the agency pays

a beneficiary more than it should have paid (i.e., more than the beneficiary was entitled to

receive). SSA’s overpayments can occur for a variety of reasons originating from either the

agency or the beneficiary. Once SSA has determined that an overpayment has been made, the

overpayment becomes a debt owed to the federal government, and the agency will attempt to

recover the overpayment through different repayment options.

Some overpayments in SSA’s programs can be large for individuals or households. In certain

cases, overpayments can accumulate over several years before SSA identifies that the payments

were inaccurate and can sometimes total thousands of dollars. Repaying the overpayment debt

can sometimes create financial hardship for overpaid individuals. Congress has shown interest in

reducing the occurrence of overpayments in SSA’s programs and the financial hardship for

overpaid individuals who have relied on the overpayments in their financial decisionmaking.1

To help policymakers understand the current policies for SSA’s overpayments, this report

provides summarized information on (1) the amount of overpayments; (2) the major causes of

those overpayments and corresponding policies aimed to reduce the occurrence and amount of

overpayments; and (3) the statutory and regulatory requirements for overpayment recovery,

including overpayment notices, liable individuals, appeal and waiver rights, recovery methods,

and the look-back period.

The Amount of Overpayments

SSA administers the Old-Age, Survivors, and Disability Insurance (OASDI, commonly known as

Social Security) and the Supplemental Security Income (SSI) programs (described below).2 In

August 2024, SSA paid approximately $121.4 billion to about 68.1 million OASDI beneficiaries

and approximately $5.5 billion to about 7.4 million SSI recipients (including 2.5 million

individuals receiving both OASDI and SSI benefits).3

Improper payments occur when SSA pays a beneficiary an amount that is different from the

amount the agency should have paid (i.e., generally the amount a beneficiary was entitled to

receive).4 Improper payments can be overpayments, when SSA pays the beneficiary more than

the correct amount, or underpayments, when SSA pays someone less than the correct amount.

This report focuses on the agency’s overpayments.5 In FY2022, SSA paid an estimated $6.5

1 For example, see U.S. Congress, House Committee on Ways and Means, Subcommittee on Social Security,

Protecting Beneficiaries from the Harm of Improper Payments, hearing, 118th Cong., 1st sess., October 18, 2023,

H.Hrg. 118-SS03, https://www.govinfo.gov/content/pkg/CHRG-118hhrg55064/pdf/CHRG-118hhrg55064.pdf.

2 SSA also administers the Special Veterans Benefits (SVB) program. The SVB program is authorized under Title VIII

of the Social Security Act. SVB became effective in May 2000 and provides monthly benefits to certain veterans of

World War II who were previously eligible for SSI payments and reside outside of the United States. Due to the small

size of the SVB program, this report focuses on the OASDI and SSI programs.

3 SSA, “Monthly Statistical Snapshot, August 2024,” https://www.ssa.gov/policy/docs/quickfacts/stat_snapshot/202408.html.

4 SSA considers a payment improper if it differs from the amount a beneficiary was entitled to receive due to (1) SSA’s

mistake in computing the payment, (2) SSA’s failure to obtain or act on available information affecting the payment,

(3) a beneficiary’s failure to report an event, or (4) a beneficiary’s incorrect report. For more information, see SSA,

FY2023 Agency Financial Report, p. 175, https://www.ssa.gov/finance/2023/Full%20FY%202023%20AFR.pdf.

5 Not all overpayments are improper payments. For example, statutory benefit continuation allows a Social Security

(continued...)

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Overpayments in the Social Security Administration’s Programs: In Brief

billion in overpayments (or 0.5% of total benefit outlays) in the OASDI program and $4.6 billion

in overpayments (or 8.0% of total benefit outlays) in the SSI program (see Table 1). SSA

recovered $4.9 billion in OASDI and SSI overpayments during FY2023 and had a $23 billion

uncollected overpayment balance at the end of FY2023.6

Table 1. Social Security Administration (SSA) Improper Payments in FY2022

OASDI

SSI

Amount

(in Billions)

Percent of

Outlays

Amount

(in Billions)

Percent of

Outlays

$1,269.6

100.00%

$57.6

100.00%

Improper Payments

8.3

0.66

5.3

9.20

Overpayments

6.5

0.51

4.6

8.02

Underpayments

1.8

0.14

0.7

1.18

Total Outlays

Source: SSA, FY2023 Agency Financial Report, pp. 177 and 182, https://www.ssa.gov/finance/2023/

Full%20FY%202023%20AFR.pdf.

Notes: OASDI is the Old-Age, Survivor, and Disability Insurance program or Social Security. SSI is the

Supplemental Security Income program. Data are estimates from SSA. Components may not sum to totals due

to rounding.

Overview of OASDI and SSI

OASDI is a work-based federal insurance program that provides monthly cash benefits to workers and their

eligible family members in the event of a worker’s retirement, disability, or death.7 Workers obtain insurance

protection (i.e., insured status) by working for a sufficient number of years in jobs covered by Social Security (i.e.,

jobs in which the workers’ earnings were subject to the Social Security payroll tax). Benefits are based on the

worker’s career-average earnings in jobs covered by Social Security, and the program is financed primarily by

payroll taxes, which are credited to the Social Security trust funds.8

SSI is a federal assistance program that provides monthly cash payments to aged, blind, or disabled individuals who

have limited income and resources (e.g., assets). The program is intended to provide eligible individuals with a

guaranteed minimum income for meeting basic needs, such as food and shelter. SSI provides a flat maximum

monthly benefit, which is reduced by any countable income. Federal SSI benefits and administrative costs are

financed by annual appropriations from general revenues. Some states complement federal SSI payments by

providing state supplementary payments (SSPs), which are financed solely with state funds. States may elect to

have SSA administer the SSPs on their behalf, provided they pay a user fee on each SSP to the federal

government.9

Major Causes of Overpayments

SSA’s overpayments can occur for a variety of reasons originating from either the agency or the

beneficiary. Eligibility and benefit amounts for OASDI and SSI are dependent on a number of

Disability Insurance (SSDI) beneficiary or SSI recipient to continue receiving benefits and associated health care

coverage while appealing a medical cessation determination at the level of reconsideration or administrative law judge

hearing. Overpayments accumulate during the appeals process if the medical cessation decision is upheld. See 42

U.S.C. §§423(g) and 1383(a)(7) and SSA, Program Operations Manual System (POMS), DI 12027.010, DI 12027.050,

and SI 02301.300.

6 SSA, FY2023 Agency Financial Report, p. 172, Figure 4.

7 See CRS In Focus IF10426, Social Security Overview.

8 For more information, see CRS In Focus IF10426, Social Security Overview.

9 For more information, see CRS In Focus IF10482, Supplemental Security Income (SSI).

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Overpayments in the Social Security Administration’s Programs: In Brief

factors, which may include age, marital status, household composition, dependency for support,

employment and earnings, financial resources, and income or benefits from other sources.10 Some

factors may be a major cause of overpayments for only one program, while others may affect

both OASDI and SSI.

Beneficiaries might not report changes in their income, employment, resources, family, or living

arrangements accurately or promptly to the agency. The agency might not process the information

promptly, or it may have errors in data entry, the application of policy, or administrative process

resulting in overpayments. Regardless of the factor, time is a critical element, because OASDI

and SSI eligibility and benefit amounts are determined on a monthly basis. Monthly eligibility

and benefit determinations increase the likelihood of incurring an overpayment before a report

can be correctly processed. Similarly, monthly overpayments may accrue before quarterly or

annual data could detect a missed report or reporting error.

SSA’s efforts to reduce overpayments generally include automation, additional training for SSA

staff, policy simplification, new reporting tools for beneficiaries, use of nonmedical

redeterminations and limited issue reviews to assess continuing eligibility, and the detection and

verification of wages through administrative data sources.

Miscalculation by SSA

Eligibility and benefit amounts for Social Security and SSI depend on several factors. Some

calculations can be complex and require manual employee actions.11 Historically, failure to

correctly apply the Windfall Elimination Provision (WEP, explained later), adjustment for the

family maximum,12 and retirement insurance benefit limitation (also known as the widow’s

limit)13 were leading causes of Social Security overpayments as a result of computation errors.14

The Office of Management and Budget’s “Program Integrity Scorecard” includes a statement

from SSA about efforts to reduce miscalculation in the Social Security program:

To reduce overpayments that occur because we did not take timely or appropriate actions,

we will continue examining our internal policies and procedures for opportunities to

improve. We will clarify, simplify, and streamline our policies and business processes. We

will implement automation solutions, where possible, and issue training and reminders to

improve technician accuracy and understanding, as needed.15

10 Other eligibility criteria listed on Paymentaccuracy.gov include military status, prisoner status, address and

residency, and death data.

11 SSA, Office of the Inspector General, Incorrect Old-Age, Survivors and Disability Insurance Benefit Payment

Computations That Resulted in Overpayments, May 26, 2022, https://oig.ssa.gov/assets/uploads/a-07-18-50674.pdf.

12 The total amount of Social Security benefits payable to a family based on a retired, disabled, or deceased worker’s

record is capped by the maximum family benefit. For more information, see CRS Report R42035, Social Security

Primer.

13 Generally, a survivor can receive no larger benefit than what the deceased worker would have received. For more

information, see CRS In Focus IF12091, Social Security: The Widow(er)’s Limit Provision.

14 SSA, FY2020 Agency Financial Report, p. 188, https://www.ssa.gov/finance/2020/

Full%20FY%202020%20AFR.pdf.

15 Office of Management and Budget, Social Security Administration, Old-Age, Survivors, and Disability Insurance

(OASDI), Payment Integrity Scorecard, Q1 2024, https://www.cfo.gov/wp-content/uploads/scorecards/FY24-Q1/

Old%20-Age,%20Survivors,%20and%20disability%20Insurance%20(OASDI).pdf.

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Overpayments in the Social Security Administration’s Programs: In Brief

SSA’s Office of Inspector General (OIG) noted that legislation would be required to simplify

computations, because the Social Security Act outlines how SSA must determine entitlement and

compute benefits in various situations.16

Pensions Based on Noncovered Employment

Social Security benefits for individuals also receiving pensions based on earnings from

employment not covered by Social Security may be subject to the WEP and Government Pension

Offset (GPO).17 The WEP reduces the Social Security benefits of certain retired or disabled

workers who are also entitled to pension benefits based on earnings from jobs that were not

covered by Social Security and thus not subject to the Social Security payroll tax. The GPO

adjusts the Social Security spouse’s or widow(er)’s benefits of most people who also receive

pensions based on noncovered employment from federal, state, or local government. Incorrect

application of the WEP and GPO policy has been a source of calculation errors by the agency.18

Lack of data on receipt of pensions based on noncovered employment is also a cause of

overpayments due to the WEP and GPO. A September 2023 OIG audit found that SSA is reliant

on beneficiaries to report their noncovered pensions to the agency (except for federal employees

for whom the Office of Personnel Management sends monthly pension notifications). SSA

requested a data collection or data match with the Internal Revenue Service (IRS) to provide

noncovered pension information from IRS Form 1099-R. IRS indicated that although it is

authorized to share information with SSA for administration of SSI, it is not permitted to disclose

noncovered pension information to SSA for administration of Social Security.19

Earnings

Earnings are a major cause of Social Security Disability Insurance (SSDI) and SSI

overpayments.20 When SSDI beneficiaries and SSI recipients work, their earnings amounts are

one factor in determining whether they remain eligible for monthly benefits.21 SSDI and SSI have

complex rules—including various statutory and regulatory work rules (called work incentives)—

on whether and how much earnings count when determining eligibility for both programs and SSI

payment amounts.22 Failure to understand the complex rules regarding work and reporting

earnings may be one reason that SSDI beneficiaries and SSI recipients may not report earnings

16 SSA OIG, Incorrect Old-Age, Survivors and Disability Insurance Benefit Payment Computations.

17 For additional information on the WEP and GPO, see CRS In Focus IF10203, Social Security: The Windfall

Elimination Provision (WEP) and the Government Pension Offset (GPO).

18 SSA, FY2023 Agency Financial Report, pp. 178-180.

19 SSA OIG, Government Pension Data for the Windfall Elimination Provision and Government Pension Offset

Determinations, September 28, 2023, p. 5, https://oig.ssa.gov/assets/uploads/a-13-20-50970.pdf.

20 For more information on earnings as a source of overpayments, see CRS In Focus IF12702, Social Security

Disability Overpayments Due to Earnings, and CRS In Focus IF12693, Supplemental Security Income (SSI)

Overpayments Due to Earnings. Earnings may also cause overpayments for beneficiaries receiving retirement or

survivor benefits if they are younger than the full retirement age and work more than certain amounts. See SSA, How

Work Affects Your Benefits, January 2024, https://www.ssa.gov/pubs/EN-05-10069.pdf; and CRS Report R41242,

Social Security Retirement Earnings Test: How Earnings Affect Benefits.

21 For more information, see CRS Report R44948, Social Security Disability Insurance (SSDI) and Supplemental

Security Income (SSI): Eligibility, Benefits, and Financing.

22 SSA, Red Book, August 2023, https://www.ssa.gov/redbook/. See also testimony of David Weaver, Associate

Commissioner for the Office of Research, Demonstration, and Employment Support, SSA, before the House

Committee on Ways and Means; June 16, 2015, https://www.ssa.gov/legislation/testimony_061615.html.

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Overpayments in the Social Security Administration’s Programs: In Brief

promptly to the agency. SSA might not correctly process reports in a timely manner. Delays in

reporting earnings and processing earnings reports can result in overpayments.

SSA has taken multiple approaches to address overpayments related to the accuracy of earnings

reporting. For example, SSA has developed tools for SSDI beneficiaries and SSI recipients to

report their work activity and earnings online or over the phone. SSA also verifies wages and

detects unreported work through matches with data from multiple state and federal agencies.

However, these data are generally available only annually or quarterly, meaning that monthly

overpayments may occur before they can be detected with these matched data.23

SSA is also implementing the Payroll Information Exchange, under which individuals may

authorize SSA to receive their wage and employment information from their employers through

participating payroll data providers.24 These data would be sent to SSA on or around the seventh

of the month for the previous month. SSA would obtain that information directly from the payroll

data providers, reducing reporting requirements for these individuals and improving accuracy.25

Marital Status and Dependency

Marital status can affect eligibility for OASDI and eligibility and payment amounts for SSI. SSA

must establish the existence, duration, and validity of a marriage when the marriage is a factor in

determining entitlement to some OASDI auxiliary (e.g., spouse or survivor) benefits.26 For

example, spousal and survivors’ benefits require a minimum length for a marriage, while a child

beneficiary generally becomes ineligible for benefits upon marrying.27 Under SSI, for example,

having an SSI-eligible spouse means that payments are determined using a couple rate compared

to an individual rate.28

SSA relies on individuals to report and provide evidence of marital status, because there is no

comprehensive national system with these data.29 To improve such reporting, as of 2009, SSA

policy instructs employees to ask applicants for name change replacement Social Security cards if

they are receiving benefits or are representative payees and then update applicable records to

reflect the change in marital status.30 The National Association for Public Health Statistics and

Information Systems (Naphsis) explains the difficulty with providing a national source of

administrative data for marriage and divorce: Vital records data are maintained by state vital

23 For additional information, see CRS In Focus IF12702, Social Security Disability Overpayments Due to Earnings,

and CRS In Focus IF12693, Supplemental Security Income (SSI) Overpayments Due to Earnings.

24 Equifax Workforce Solutions is the sole provider as of the date of this report.

25 SSA, “Use of Electronic Payroll Data to Improve Program Administration,” 89 Federal Register 11773, February 15,

2024, https://www.federalregister.gov/documents/2024/02/15/2024-02961/use-of-electronic-payroll-data-to-improveprogram-administration. With respect to accuracy, see also Drew R. Counselman and Vincent J. Pellegrini, Evaluation

of Payroll Information Exchange (PIE) Wage Data Accuracy, SSA, January 18, 2023, https://www.regulations.gov/

document/SSA-2016-0039-0008.

26 SSA, FY2023 Agency Financial Report, p. 178.

27 For the definitions of spouse, surviving spouse, divorced spouse, and child, see 42 U.S.C. §416. See also CRS Report

R41479, Social Security: Revisiting Benefits for Spouses and Survivors. For eligibility for child benefits, see 42 U.S.C.

§§402(d) and 416(e), 20 C.F.R. §404.350, and CRS In Focus IF12069, Social Security: How Do Children Qualify for

Benefits?

28 For further information on types of OASDI beneficiaries and SSI recipients whose benefits could be affected by

marriage, see SSA OIG, Impact of Undetected Marriages on Social Security Administration Payments, April 2024,

https://oig.ssa.gov/assets/uploads/012317.pdf.

29 SSA OIG, Impact of Undetected Marriages; SSA, FY2020 Agency Financial Report, p. 202.

30 SSA, POMS, RM 10205.105.

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records offices, which do not necessarily have ownership of marriage and divorce data, as these

data may be collected by counties or municipalities or may be part of the court system.31

As of October 2024, individuals in 21 states can apply online for name change replacement Social

Security cards.32 SSA verifies the marriage electronically through Naphsis but can use this

information only for certain purposes. SSA’s application reminds applicants that any individual

receiving benefits must also contact his or her local SSA field office to report a marriage.33

Factors Affecting Only SSI

SSI eligibility is determined, in part, by an individual’s assets and income. Income is also used to

determine SSI payment amounts. With specified exclusions, income is any cash or item

individuals receive in-kind that can be used to meet their needs for food or shelter.34 SSA reports

that the major causes of overpayments in the SSI program are changes in financial accounts,

wages (earnings, discussed previously), and in-kind support and maintenance.35

According to SSA and SSA’s OIG, periodic reviews of recipients’ nonmedical eligibility factors

(income, resources, and living arrangements)—known as redeterminations—are an effective tool

for ensuring that recipients are still eligible and receiving the correct amount of SSI, preventing

and reducing improper payments. The OIG notes that the nature of the SSI program can make

redeterminations complex and time-consuming for staff. As a result, employees may make errors

or fail to develop all relevant information. These errors can result in overpayments, which create a

burden on recipients and administrative costs to SSA.36

Financial Accounts

The value of an individual’s or couple’s resources is one of the factors in determining eligibility

for SSI. Resources include items such as cash, bank accounts, financial assets, land, life

insurance, and anything that could be converted to cash and used for food or shelter.37 A May

2023 OIG audit found that financial accounts are a leading cause of overpayments in the SSI

program.38

To address this, since June 2011, SSA has implemented the Access to Financial Institutions (AFI)

program when processing initial SSI applications and periodic eligibility redeterminations. AFI

verifies bank account balances and searches for undisclosed accounts at potential locations based

on the individual’s address. SSI claimants and recipients are required to give SSA permission to

31 Naphsis, “Naphsis Response: Impact of Undetected Marriages on Social Security Administration Payments

(012317),” May 19, 2024, https://oig.ssa.gov/assets/uploads/012317naphsisngocomments.pdf.

32 SSA, POMS, RM 10205.630. These 21 states are Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii,

Idaho, Iowa, Kentucky, Maine, Maryland, Michigan, Missouri, Montana, Nebraska, North Dakota, Rhode Island, South

Dakota, Virginia, Wisconsin, and Wyoming.

33 SSA OIG, Impact of Undetected Marriages; and Naphsis, “Naphsis Response.”

34 SSA, “SSI Income,” https://www.ssa.gov/ssi/text-income-ussi.htm.

35 SSA, FY2023 Agency Financial Report, p. 183.

36 SSA OIG, Challenges in Recovering SSI Overpayments, July 2024, https://oig.ssa.gov/assets/uploads/a-07-2151018.pdf.

37 SSA, “Understanding Supplemental Security Income SSI Resources—2024 Edition,” https://www.ssa.gov/ssi/textresources-ussi.htm.

38 Testimony of Tonya Eickman for SSA OIG at U.S. Congress, House Committee on Ways and Means, Subcommittee

on Social Security, Protecting Beneficiaries from the Harm of Improper Payments, hearing, 118th Cong., 1st sess.,

October 18, 2023, https://oig.ssa.gov/congressional-testimony/2023-10-18-protecting-beneficiaries-from-the-harm-ofimproper-payments/.

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request their financial records from any financial institution as a condition of their eligibility for

the program.39 In 2023, the OIG recommended that SSA study expanding AFI searches between

the initial SSI application and subsequent eligibility redeterminations, which the agency agreed to

do.40

In-Kind Support and Maintenance

SSI considers most forms of income in determining program eligibility and payment amounts.

The Social Security Act and SSA’s regulations include special rules for evaluating in-kind support

and maintenance (ISM),41 which refers to certain in-kind (non-cash) assistance that a person

receives from someone else who paid for it, such as shelter.42 The manner in which SSA values

ISM depends on a person’s living arrangements in addition to certain other factors.43 According to

SSA, studies show that many of the errors associated with ISM are due to the complexity of the

statute and the agency’s policies concerning ISM.44

SSA made several recent changes to agency regulations regarding the counting of ISM and other

assistance for SSI that took effect on September 30, 2024.45 These changes may lessen the

likelihood of improper payments by reducing reporting burden and simplifying calculations. They

include changing the definition of public assistance household46 and no longer counting food as

part of ISM.47 Another change alters the threshold at which SSA determines that the SSI recipient

is receiving a rental subsidy. SSA notes that this change “tends to reduce or eliminate the amount

of ISM counted towards an individual’s SSI payment, which generally results in a higher SSI

payment amount.”48

Statutory and Regulatory Requirements

Once SSA has determined that an overpayment has been made, the agency notifies the liable

beneficiary immediately by mail if an address is available.49 An overpayment notice explains why

the individual has been overpaid, the overpayment amount, repayment options, and appeal and

39 SSA, POMS, SI 00515.001; and 42 U.S.C. §1383(e)(1)(B).

40 SSA OIG, The Social Security Administration’s Major Management and Performance Challenges During Fiscal

Year 2023, November 3, 2023, p. 18, https://oig.ssa.gov/assets/uploads/022330.pdf.

41 42 U.S.C. §1382a(a)(2)(A); 20 C.F.R. §416.1130. SSA, POMS, SI 00835.001.

42 Prior to September 20, 2024, ISM also included food. Shelter includes room, rent, mortgage payments, real property

taxes, heating fuel, gas, electricity, water, sewerage, and garbage collection services.

43 SSA, POMS, SI 00835.005.

44 SSA, FY2016 Agency Financial Report, p. 195, https://www.ssa.gov/finance/2016/

Full%20FY%202016%20AFR.pdf

45 Martin O’Malley, Commissioner, SSA, “Statement on Patrice: The Movie and SSI Enhancements Rolling Out,”

September 30, 2024, https://blog.ssa.gov/statement-on-patrice-the-movie-and-ssi-enhancements-rolling-out/.

46 SSA, “Social Security to Expand Access to SSI Program by Updating Definition of a Public Assistance Household,”

press release, May 9, 2024, https://www.ssa.gov/news/press/releases/2024/#5-2024-3. See also SSA, “Expand the

Definition of a Public Assistance Household,” 89 Federal Register 28608, April 19, 2024.

47 Though SSA is omitting food expenses from ISM calculations, it will still ask a question about food as part of its

broader determination of the value of ISM for SSI applicants and recipients. See SSA, “Omitting Food from In-Kind

Support and Maintenance Calculations,” 89 Federal Register 21199, March 27, 2024.

48 See SSA, “Expansion of the Rental Subsidy Policy for Supplemental Security Income (SSI) Applicants and

Recipients,” 89 Federal Register 25507, 25508, April 11, 2024.

49 SSA, “Overpayments,” March 2024, https://www.ssa.gov/pubs/EN-05-10098.pdf.

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waiver rights.50 SSA generally recovers overpayments by adjusting benefits payable to current

beneficiaries, collecting a full repayment or installment payments from the overpaid beneficiary,

reducing tax refunds due to the beneficiary, or using other methods. The recovery of

overpayments from OASDI and SSI programs is authorized under the Social Security Act,51

including individuals liable for overpayments, rights for appeal and waivers, methods for

overpayment recovery and related limitations, and minimum repayment amounts (for SSI). Many

important features of overpayment recovery, such as the procedure for requesting appeal and

waivers and the schedule of repayment, have been established by SSA through regulations and

subregulatory policies.52

Liable Individuals

This section explains who is liable for SSA’s overpayments under the OASDI and SSI programs.

Primary and Contingent Liability

The beneficiary who received the overpayment is primarily (directly) liable for the overpayment.

Thus, he or she is the main person responsible for repaying the overpayment. Under current

practice, SSA will generally withhold a portion of monthly benefit payments to this individual

until an amount equal to the overpayment has been withheld.53 Primarily liable individuals

generally include those receiving benefits,54 such as retired or disabled workers under OASDI

who receive payments based on their own earnings records and SSI recipients who receive

benefits based on their own income and resources.

An individual who has received OASDI benefits based on the same earnings record as the

overpaid beneficiary may be contingently liable for the primary beneficiary’s overpayment. Such

individuals include eligible spouses, widow(er)s, children, and parents. While SSA generally first

seeks repayment from the beneficiary who is primarily liable, SSA will withhold a portion of

monthly benefits payable to individuals who are contingently liable until an amount equal to the

overpayment has been refunded.55

Joint and Several Liability

Joint and several liability means that two or more people have equal responsibility for the

repayment of an overpayment. Each person may be primarily liable for the repayment of the

entire overpayment.56 Joint and several liability typically appears in the context of a relationship

between a representative payee and a beneficiary. A representative payee is an individual or

organization appointed by SSA to receive Social Security or SSI benefits for someone who cannot

manage or direct someone else to manage his or her benefits. The primary responsibilities of a

50 20 C.F.R. §404.502a.

51 For OASDI, see the Social Security Act, §204, or 42 U.S.C. §404. For SSI, see the Social Security Act, §1631(b), or

42 U.S.C. §1383(b).

52 For regulation, see 20 C.F.R. §404.502 for OASDI and 20 C.F.R. §416.537 for SSI.

53 SSA, “Change in Title II Overpayment Default Rate of Benefit Withholding,” March 25, 2024,

https://secure.ssa.gov/apps10/reference.nsf/links/03262024103100AM/$file/EM-24011+SEN++Change+in+Title+II+Overpayment+Default+Rate+of+Benefit+Withholding_Redacted.pdf; 42 U.S.C. §1383(b).

54 42 U.S.C. §§404(a) and 1383(b)(1)(A); 20 C.F.R. §§404.502(a)(1) and 416.537(a).

55 20 C.F.R. §404.502(a)(2); SSA, “Change in Title II Overpayment Default Rate of Benefit Withholding.”

56 SSA, POMS, GN 02205.007.

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representative payee include using the benefits to pay for the current needs of the beneficiary and

properly saving the benefits not needed at the present time.57

Generally, a beneficiary and the representative payee are jointly and severally liable if they both

had knowledge of the event/information that led to the overpayment. A representative payee may

also be primarily liable for an overpayment. For example, if a representative payee misused the

funds and the beneficiary did not have access to the funds, then the representative payee would be

primarily liable for the overpaid benefits, and the beneficiary is not jointly liable. Similarly, if a

beneficiary fails to inform a representative payee of a change that would impact eligibility, then

only the beneficiary may be held primarily liable for the overpayment.58

Appeal and Waiver Rights

Overpaid beneficiaries (or their representatives) may appeal determinations by requesting

reconsideration when they dispute the facts or amounts of overpayments.59 An individual

generally has to request reconsideration within 60 days of the date the individual received the

overpayment notice.60

Overpaid individuals may request that SSA waive recovery of the overpayments if they believe

they should not have to pay the money back.61 SSA stops overpayment recovery effective the

month it receives the waiver request. The agency also refunds any amount it recovered after the

receipt of the waiver request.62 When a waiver request is approved, the individual does not have

to repay the debt.63 A request for waiver of recovery can be submitted at any time, even after SSA

has fully recovered the debt.64

Under current law, SSA is to waive recovery of an OASDI or SSI overpayment if the overpaid

individual is without fault in causing the overpayment and the recovery would (1) defeat the

purpose of the statute or (2) be against equity and good conscience.65 Without fault means that

facts show that the individual did not cause the overpayment.66 Recovery of an OASDI

overpayment defeats the purpose of the program if recovery would deprive the overpaid

individual of the income and resources required for ordinary and necessary living expenses.67 In

addition, SSA generally considers recovery of an overpayment to defeat the purpose of the

program if the overpaid individual receives payments from SSI.68 Recovery of an overpayment

would be against equity and good conscience for either of two reasons:

1. The overpaid individual relinquished a valuable right or put himself or herself in

a worse financial position because of the receipt of Social Security

57 For additional information on representative payee responsibilities, see SSA, A Guide for Representative Payees,

March 2022, https://www.ssa.gov/pubs/EN-05-10076.pdf.

58 SSA, POMS, GN 02205.007.

59 See 20 C.F.R. §§404.502a and 416.1413(b).

60 SSA, POMS, GN 02201.025 and SI 02220.017.

61 20 C.F.R. §§404.909 and 416.1409. On September 27, 2024, SSA updated POMS by combining waiver approval

procedures for both the OASDI and SSI overpayments. See SSA, POMS, GN02250.301.

62 SSA, POMS, GN 02201.019.A and SI 02260.001.A.3.

63 20 C.F.R. §413.551; SSA, POMS, GN 02250.360 and SI 02260.001.A.2.

64 SSA, POMS, GN 02201.019.A and SI 02260.001.A.3.

65 42 U.S.C. §§404(b) and 1383(b)(1)(B).

66 20 C.F.R. §§404.507, 510-511, and 416.552.

67 20 C.F.R. §§404.508 and416.553.

68 SSA, POMS, SI 02260.020.B.

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overpayments. For example, an individual may have purchased a more expensive

home in light of the awarded amount of the Social Security benefit but is unable

to afford the home after the discovery of a Social Security overpayment.

2. The individual was receiving OASDI benefits on the same earnings record as the

overpaid beneficiary or SSI payments as an eligible couple, was living in a

separate household from the overpaid beneficiary at the time of the overpayment,

and did not receive the overpayment.69

Administrative Waiver Tolerances

SSA also waives an SSI overpayment recovery if recovery would impede the efficient or effective

administration of the program—that is, the average cost to recover an overpayment is equal to or

greater than the amount of the overpayment.70 Under current practice, SSA typically does not

recover an SSI overpayment if the amount is $30 or less71 or if the overpayment was caused by

countable resources exceeding the statutory limit72 by $50 or less.73 In these cases, the overpaid

individual is deemed to be without fault.

SSA also waives an OASDI or SSI overpayment if the liable person requests a waiver and the

total amount of the overpayment is at or below a certain threshold unless there is some indication

that the person may be at fault. The threshold amount was $1,000 until it was increased to $2,000

starting May 20, 2024.74

Recovery Methods

If the overpaid individual does not request reconsideration, request a waiver, or repay in full, SSA

usually recovers the overpayment through one of several options. For current beneficiaries, SSA

usually recovers the overpayment through internal collection tools (e.g., withholding ongoing

monthly payments). If the overpaid individual’s benefits end, SSA can recover overpayments

through authorized external debt collection methods, such as federal tax return offset.

Internal Collections

For current beneficiaries, SSA generally recovers this debt from the overpaid beneficiary (or the

representative payee) through an adjustment to ongoing benefit payments. SSA withholds a

portion of the beneficiary’s ongoing payments each month until the debt has been fully repaid.75

The rate of recovery through benefit adjustment in OASDI is generally different from that of SSI.

Benefit withholding begins approximately 60 days after SSA sends the overpayment notice.

To recover an OASDI overpayment, SSA used to generally withhold the full monthly benefit in

default. The overpaid individual could request to change the rate of recovery—to an amount no

less than $10 per month—if he or she was unable to meet ordinary and necessary living expenses

69 20 C.F.R. §§404.509 and 416.554.

70 42 U.S.C. §1383(b)(1)(B); 20 C.F. R. §416.555.

71 SSA, POMS, SI 02260.030.

72 The countable resource limit is $2,000 for an individual and $3,000 for a couple. These limits are not adjusted for

inflation. See 20 C.F. R §416.1205.

73 20 C.F. R. §416.556.

74 SSA, POMS, GN 02250.350.

75 42 U.S.C. §§404(a) and 1383(b)(1)(B); 20 C.F.R. §§404.502(a) and 416.571.

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if the entire Social Security monthly benefit were withheld.76 On March 25, 2024, SSA reduced

the default withholding rate from 100% of the monthly benefit to 10% (but no less than $10

except for special situations), excluding cases of fraud convictions or similar fault

determination.77 An overpaid individual may request a recovery rate greater than 10% of the

monthly benefit. This new default rate is automatically applied to overpayments created on or

after April 15, 2024. Overpaid individuals who are currently repaying at rates greater than 10%

can request a recovery rate as low as 10% (but no less than $10).

For the recovery of SSI overpayments, federal law requires the rate of adjustment to be the lesser

of (1) 10% of the overpaid individual’s total monthly income (countable income plus SSI and any

state supplementary payment)78 or (2) the recipient’s entire SSI monthly benefit.79 If the overpaid

individual receives income only from SSI, SSA may withhold 10% of the monthly benefit

payment until the overpayment is fully repaid, provided that the debt is not appealed or waived.

In addition, the cross-program recovery method allows SSA to recover overpayments in OASDI

or SSI from a debtor by withholding a portion of ongoing monthly benefits payable to the

individual under either of the two programs (subject to certain limits).80 For example, SSA may

recover SSI overpayments from a person’s monthly OASDI benefits.

External Debt Collection

If the overpaid individual is not currently receiving benefits, SSA offers the option to repay the

overpayment debt in full or in monthly installments. The debt is typically considered delinquent

when the individual has made no voluntary repayments or it has been 30 days since the last

voluntary repayment.81

For delinquent debt, SSA can turn to authorized external debt collection tools for enforced

repayment, including, for example, the Treasury Offset Program (TOP), which can offset money

from federal tax refunds and other federal or eligible state payments (i.e., administrative offset),82

as well as administrative wage garnishment (AWG).83 Under current practice, SSA does not

charge interest on delinquent overpayment debt.84

76 20 C.F.R. §404.502(c).

77 SSA, “Change in Title II Overpayment Default Rate of Benefit Withholding.”

78 For the purpose of SSI, countable income includes the individual’s gross income minus applicable exclusions. Social

Security benefits, after the first $20 per month, are countable income. For more information, see CRS In Focus

IF10482, Supplemental Security Income (SSI).

79 42 U.S.C. §1383(b)(1)(B).

80 For more information, see 42 U.S.C. §1320b–17; 20 C.F.R. §§404.530 and 416.572; and SSA, POMS, GN

02210.008 and SI 02220.020.

81 31 C.F.R. §5.1; SSA, POMS, GN 02215.235. In cases of the debtor submitting a reconsideration or waiver request,

the delinquency date will be 30 days after an affirmation decision on a reconsideration request or a denial decision on a

waiver request.

82 U.S. Department of the Treasury, Bureau of the Fiscal Service, “Treasury Offset Program,”

https://www.fiscal.treasury.gov/TOP/.

83 20 C.F.R. §§422.401-422.445. Based on the garnishment order, the debtor’s employer withholds up to 15% of the

debtor’s disposable pay. Disposable pay is that part of the worker’s total compensation (such as salary or wages,

bonuses, commissions, and vacation pay) from an employer remaining after deductions for health insurance premiums

and any other amounts required by law to be withheld. Amounts required to be withheld include deductions such as

Social Security contributions and other withholding taxes but do not include amounts withheld under court order.

84 For more information, see U.S. Government Accountability Office, Disability Insurance: SSA Needs to Better Track

Efforts and Evaluate Options to Recover Debt and Deter Potential Fraud, GAO-16-331, April 2016, pp. 19-20,

(continued...)

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In some cases, SSA may stop its debt collection efforts if the overpayment is temporarily

unrecoverable. The overpayment will remain on the benefit record for collection when a future

recovery method is available. For example, a former childhood beneficiary may not be aware of

an overpayment if the overpayment was found when the individual was a minor and the notice

was addressed to the representative payee. SSA may resume its collection efforts through

voluntary repayment plans, external debt collection tools, and adjustment of future benefits when

the person applies for his or her own OASDI or SSI benefits, which could be more than 40 years

later.85

Look-Back Period

The look-back period for SSA’s overpayments refers to the number of years SSA can look back to

identify overpaid benefit amounts. Current laws and regulations do not limit SSA’s look-back

period. Based on SSA’s explanation in its policy manual, SSA can determine an overpayment

amount based on overpayments that occurred at any time in the past, taking into account the

beneficiary’s complete payment history.86

Laws, regulations, and policies have limited SSA’s use of certain external debt collection tools,

such as recovering delinquent OASDI and SSI debts via TOP or AWG. Currently, SSA may refer

debts with delinquency dates after May 19, 2002, to TOP for recovery.87 Subject to certain

employment limitations, SSA uses AWG at the same time as TOP and other collection tools.88

SSA does not select debts that are delinquent for more than 10 years for AWG. However, if a debt

becomes delinquent for more than 10 years after the AWG process begins, SSA does not stop the

garnishment.89 Additionally, SSA generally does not apply external debt collection tools to debt

incurred prior to an individual attaining age 18.90 Those limitations do not affect the look-back

period but may limit SSA’s ability to recover certain older delinquent debt.

https://www.gao.gov/products/gao-16-331. With respect to debts that are in the process of being repaid, such as

through benefit withholding, SSA has determined that it does not have the authority to charge interest. However, SSA

does have the authority to charge interest on delinquent overpayment debt, but the agency has not done so due to

resource constraints and competing priorities.

85 SSA OIG, Recovering Title II Overpayments Made to Childhood Beneficiaries, July 2016, https://oigfiles.ssa.gov/audits/full/A-04-16-50110.pdf.

86 SSA, POMS, GN 02201.003.

87 SSA, POMS, GN 02201.029, GN 02201.030, GN 02210.217, and SI 02220.012.

88 SSA, POMS, GN 02201.040. The receipt of AWG payments does not preclude SSA from using other debt collection

methods. SSA’s system automatically updates the balance of the debt being collected under AWG, TOP, and others,

thus preventing excess collections.

89 SSA, POMS, GN 02201.040. The 10-year delinquency limitation is not specified in law or regulations. AWG does

not include federal salary offset, which is not subject to the 10-year delinquency limitation. See SSA, POMS, GN

02201.043.

90 42 U.S.C. §404 (f)(2); SSA, POMS, GN 02201.030, SI 02220.012, GN 02201.031, SI 02220.013, GN 02201.040,

GN 02201.043, GN 02201.032, and SI 02220.014.

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Author Information

Zhe Li

Analyst in Social Policy

T. Lynn Sears

Analyst in Social Policy

Disclaimer

This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan

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under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other

than public understanding of information that has been provided by CRS to Members of Congress in

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