The Social Security Administration said it's overhauling how it recovers benefits from people after an outcry over its policies.
The Social Security Administration said it's reforming how it recovers overpayments of benefits following an outcry over policies that drove some Americans into financial distress, and even homelessness.By law, the agency must claw back overpaid benefits, but SSA's policies had sparked outrage and concern after some Social Security recipients reported surprise bills that demanded payment within 30 days. Sometimes the bills mounted into the tens of thousands of dollars.
Additionally, the Social Security Administration will extend repayment plans to 60 months, up from its prior limit of 36 months, giving recipients an additional two years to repay the money. The agency's previous policies had led to 'grave injustices to individuals, as we see from the stories of people losing their homes or being put in dire financial straits when they suddenly see their benefits cut off to recover a decades-old overpayment,' O'Malley said in his statement.
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