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SSI Overpayments

Typically, Supplemental Security Income (SSI) claimants who received notice of overpayments are given 60 days to file a Request for Reconsideration to challenge the amount of overpayment. If the recipient fails to file an appeal, he/she can no longer contest if the amount of the overpayment is incorrect, since the prescribed period has already lapsed. A person receiving such notice must therefore act at soonest time possible to contest the overpayment done.

If a claimant does not wish to repay the overpayment, he/she may request the Social Security Administration to condone the overpayment or to have it waived. In this waiver proceeding, the benefits recipient has burden of proof to show that he or she is without fault in causing the overpayment. In addition, he/she does not have sufficient resources to repay the overpaid benefits and that it would be repugnant to equity and good conscience for the Social Security Administration to recover the overpayment. Therefore, it would not suffice for a person to show that he or she cannot afford to repay the overpaid benefits. It is also incumbent upon the person to establish that the overpayment was not his or her fault.

The process of seeking a waiver of overpayment has several steps. Once the waiver is requested, the benefits recipient is obliged to attend a conference with a claims representative at the local Social Security office. This would serve as an opportunity to explain why the overpayment should not be repaid. The claims representative would then decide whether the request for waiver will be granted. If the request is denied, the next step is to request for an administrative hearing before an Administrative Law Judge. At this stage, the benefits recipient is given the opportunity to present evidence. This stage usually takes a period of 12 months to complete.

If the waiver request has been denied by the Administrative Law Judge, the benefits recipient may then request review from the Appeals Council. At this stage the only issue is to determine the soundness of the Administrative Law Judge’s decision. Finally, if the Appeals Council refuses to review the Administrative Law Judge’s decision, the only remedy would be to appeal to the United States District Court. At this stage, the only issue to determine is whether the Administrative Law Judge’s decision in denying the request for waiver is supported by substantial evidence. As a practice, if successful in the United States District Court, the benefits recipient’s case is sent back to an Administrative Law Judge for another hearing.

The process of seeking a waiver of overpayment is long and complicated. Most overpaid individuals have no idea how to establish that they have not been overpaid or if they have, why they should not have to repay it. A benefits recipient who receives notice of an overpayment should seek legal advice as soon as possible.