Overpayment Waiver Threshold Increased
November 1, 2008
Author: Catherine M. Callery (Kate)| Louise M. Tarantino
Ann Biddle, Esq., Paul M. Ryther, Esq.
Did you know that if a claimant had an overpayment of $500 or less, it could be waived automatically – just by the asking – so long as there is no indication of fault? Effective September 27, 2008, that threshold has been increased to $1,000.01 for SSI overpayments.
Social Security recognizes that collection of such overpayments “impedes effective or efficient administration when the nation-wide average cost of recovering the overpayment equals or exceeds the amount of the overpayment.” See https://secure.ssa.gov/apps10/poms.nsf/lnx/0502260030!opendocument. In fact, according to the same POMS, in most instances of overpayments of $30 or less, SSA will not even generate an overpayment notice. For amounts between $30 and $1,000.01, however, SSA will not automatically waive the overpayment unless a waiver request is made – and SSI Claims Representatives are admonished not to solicit waivers!
Note that the threshold has apparently not been increased for Title II overpayments. https://secure.ssa.gov/apps10/poms.nsf/lnx/0202201013!opendocument.
Thanks to Greg Phillips of Secor and Sciortino in Rochester for passing on this news to us.
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