[Social Security and several other agencies] are adopting as final an interim rule to amend their regulation governing the garnishment of certain Federal benefit payments that are directly deposited to accounts at financial institutions. The rule establishes procedures that financial institutions must follow when they receive a garnishment order against an account holder who receives certain types of Federal benefit payments by direct deposit. The rule requires financial institutions that receive such a garnishment order to determine the sum of such Federal benefit payments deposited to the account during a two month period, and to ensure that the account holder has access to an amount equal to that sum or to the current balance of the account, whichever is lower.But Social Security, itself, can garnish these benefits before they're ever paid to collect a 40 year old debt.
May 29, 2013
Final Rule On Garnishment Of Federal Benefits
From today's Federal Register:
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5 comments:
Debt is debt, 40 years old or not. Why should SSA, or anyone else, forgive debt just because its old? Seems to me that this concept is part of the bigger problems with America today.
Recovery of a legally defined SSA overpayment is not a garnishment. Your bias for the system to pay, pay, and pay some more lessens your credibility.
SSA should charge short term market rate interest for all overpayments. Add to this, penalties for non-payment overpayments, this includes money owed for SSI overpayments. This policy should include all debts owed to Uncle Sam. We must encourage repayment for debt, not reward with interest free, no penalty loans to those who owe Uncle Sam. This will also encourage behaviors to prevent and reduce incorrect payments. Remember that it is the taxpayer who is subsidizing the debtors, and the money lost because of overpayments and delayed repayments is money that is not available to provide benefits and services to the public.
also, we need to stop allowing kids who turn 18 to continue collecting SSI while awaiting a CDR hearing.
How much of those overpayments are ever recouped? My guess, less than 1%.
The majority of true garnishments against Social Security payments are for overdue child support. I have little sympathy in these cases regardless of the age of debt.
It should also be noted that this is just another workload that SSA lacks the staff to handle.
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