Overpayment

The slowness with which the SSA moves can present special problems regarding benefit cessation. For example, there is a two month grace period for claimants to prepare for benefit cessation, yet the warning notice may say "We have determined that you have been not disabled since April 1997, you have been overpaid for the months June 1997 through the present, your check next month will be in the amount of $0.00, and you should call immediately to arrange for repayment of the $27,000 we have overpaid you."

When SSA pays a claimant benefits to which that claimant is not legally entitled, the claimant is said to be "overpaid." Sometimes SSA will seek to recover this overpayment. Unexpected overpayment notices and demands for repayment can be distressing. The amounts are often high because it has taken SSA many months to discover a change in medical condition or earnings. During that time, months of "overpayment" benefits have accumulated.

Representative Payee's Liability

Some claimants have a representative payee who receives their checks. A representative payee is someone who receives checks for a claimant who cannot or does not want to handle his or her own money. The representative payee ensures that the money is used for the claimant's benefit.

A representative payee may be held personally liable for overpayments made to the claimant. This is because the representative payee stands in the claimant's shoes. If the representative payee is on Social Security himself, SSA may try to recover the overpayment by withholding part of the representative payee's own Social security check.

Waiver of Overpayment

A claimant may be eligible for a waiver of the overpayment if

• there was no overpayment, or
• there was an overpayment but the claimant was not at fault and the claimant cannot afford to repay the overpayment.