AARP [American Association of Retired Persons], the 40-million member seniors’ lobby, has asked the Social Security Administration to give a break to current retirees who want to pay back the benefits they’ve received to earn higher future benefit checks. ...
In mid-January, AARP representatives met with Social Security officials and said they did not know if they would take a position on the rule change. But on Feb. 7, the last day for comment, the AARP finally weighed in on the side of the seniors. It asked the government to give those who are already receiving Social Security a full 12 months—until Dec. 8, 2011—to withdraw their Social Security applications and pay back their benefits without interest. The letter, signed by David Certner, the AARP’s legislative counsel, said the organization generally agrees with the intent of the new rule but believes “that equity and fairness” require that those who took early benefits more than a year before the abrupt rule change be given an opportunity to withdraw their initial Social Security applications and repay the money.
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Feb 15, 2011
AARP Backs Giving More Time To Withdraw Claims
From Janet Novack's column in Forbes:
SSA stated it was a waste of resources to process withdrawals, so if they cave on this and reverse the regulation or modify it, Congress should cut their budget.
ReplyDeleteI agree with the AARP on this.
ReplyDeleteLike so many other goodies packed into national legislation this is a gimme for the rich folks. The typical working person cannot afford to use this option; only someone with large resources can pay back 5-8 years worth of benefits. This is basically an interest-free loan that is not accessible to most people. Another example of private gain and public loss--money repaid to the US taxpayers without any interest payment from the private person who had free use of the money.
ReplyDelete