A Social Security recipient is facing a demand for $35,000 in overpaid benefits, with a deadline of 30 days to repay the full amount. The woman, who is in her mid-70s and spoke to CBS News on the condition of anonymity, received a letter from the Social Security Administration (SSA) detailing the overpayment, which spans four years.
The agency has begun reducing her monthly benefit payments to correct her benefit amount. According to the letter reviewed by CBS News, the SSA stated it was cutting her payment "to correct [her] benefit amount" without providing further explanation.
If the woman fails to repay the $35,000 within the 30-day window, her benefits will be reduced by 50% for the next two years, starting in December. This would leave her with approximately $1,350 per month. "I’m alarmed," she told CBS News. "I’m trying to sort out what I should do next at this point because I was already underway with a plan."
The recipient first became aware of the issue in February when her monthly benefit check was reduced by about $600, bringing her net payment down to roughly $2,700 after deductions for taxes and Medicare. She contacted the SSA to understand the reason for the change.
A spokesperson for the Social Security Administration stated that the agency is committed to treating beneficiaries fairly when overpayments occur, particularly in situations where the beneficiary may not have caused the error. However, the woman remains responsible for the repayment and faces further financial impact until the SSA recovers the funds.
Overpayments from the SSA are not uncommon. Approximately two million people annually receive overpayment notices across all of the agency's benefit programs. According to the Social Security website, these errors often result from missing or incorrect information. This can occur if beneficiaries do not report changes in their work status, living arrangements, marital status, or income.
Recipients who cannot afford to repay the amount or believe the overpayment was an error can request a waiver or appeal the repayment figure. The SSA's website indicates that if a waiver or appeal is requested within 30 days of the notice, the agency will pause collection efforts until a decision is made. Failure to repay or submit a request within this timeframe results in automatic benefit reductions of 50% for Social Security benefits or 10% for Supplemental Security Income (SSI) payments each month until the overpayment is settled.