I can't say whether this is related to the recent publicity concerning overpayments to Social Security claimants but the agency has decided to make public its longstanding policy of waiving overpayments of less than $1,000 in most cases. The policy has been around for a long time, at least for SSI cases, but
it was previously labeled "sensitive" in Social Security's manual and withheld from the public. Now
it's out there for everyone to see. The exception to these administrative waivers is cases where the claimant is at fault. My experience is that they only refuse to waive these small overpayments when it's obvious that the claimant is a bad actor.
Now, how about let's raise that amount from $1,000 to $5,000? How long has it been at $1,000? Also, how about waiving these without demanding that the claimant file a request for waiver? These waivers may be nearly automatic but the big catch is that you have to file a request for waiver. Most of these small overpayments aren't waived because the claimant doesn't know to request waiver or can't figure out how to complete a waiver request form or, perhaps more important, can't get through to a Social Security office to ask what to do.
The administrative waiver provision hasn't exactly been a secret. Here's the POMS for SSI https://secure.ssa.gov/poms.nsf/lnx/0502260030 and here's a POMS last updated in 2019 that explains how to do it for both programs https://secure.ssa.gov/poms.nsf/lnx/0202210220
ReplyDeleteOIG studied Title II administrative tolerance waivers in 2018 https://oig-files.ssa.gov/audits/full/A-04-16-50145.pdf
It was discussed in this 2017 Justice in Aging report too https://www.justiceinaging.org/wp-content/uploads/2017/02/I-Cant-Pay-That-Social-Security-Overpayments-and-Low-Income-Clients.pdf
We don’t need an actual waiver filled out to waive overpayments under the limit.
ReplyDeleteWe just need the claimant to request the overpayment be waived. That can be verbally received as well as written. Full waiver development is not needed under this process.
As far as how long has it been at $1000.00…at least for SSI, not that long. Just a few years ago it was at $500.
There’s other exceptions to the administrative waiver process as well. One of the big ones I see all the time around my area is waiving OP amounts currently under the limit, but we’re not originally under that limit.
For example, if the OP was originally $1,300 and now the balance is $800, it doesn’t fall under this policy. We also can’t split OP’s to make them fall under it either. Although I tend to see both of these quite often.
When a liable person requests waiver and the total amount of that person's liability is $1,000 or less, recovery will be waived because it would impede the efficient administration of the Act unless there is some indication that the person may be at fault.
ReplyDeleteWhere are these $1000 and under overpayments? The ones I see are usually in the 5 figures because it has taken SSA years to catch up.
ReplyDeleteI could imagine a sub-1k OP occurs more often in SSI, since earnings taper off there, or it could be a couple months of ISM. But it's pretty rare. Maybe in retirement earnings test cases too? Agreed that most OPs are larger than $1000.
ReplyDelete2:20 PM
ReplyDeleteLots of OP's under $1000 in SSI.
Before the waiver is there, you have to determine fault. If fault is found, then there is no admin waiver. It’s is only when not at fault is there, that we develop for ability to repay.
ReplyDeleteAdmin waivers are good when they are good, but useless for my batch of repeat offenders.