Two senators have introduced a bipartisan bill to limit the Social Security Administration’s (SSA) ability to clawback incorrectly paid funds.
Arizona Democratic Senator Ruben Gallego and Louisiana Republican Senator Bill Cassidy announced the legislation, the Social Security Overpayment Relief Act, on March 13.
The SSA told Newsweek that it does not comment on pending legislation.
Why It Matters
President Donald Trump’s administration has sought to cut what he describes as waste in all federal departments including the SSA, to save federal money.
The SSA said the change will generate a savings of roughly $7 billion over the next 10 years, but critics have raised concerns about vulnerable people’s ability to foot the bill for the agency’s mistake.
What To Know
“A lot of money is paid out to people because it just keeps getting paid and paid, and nobody does [anything]—and it really hurts Social Security. It hurts our country,” Trump said during his joint address to Congress in March. He added, “We’re going to find out where that money is going, and it’s not going to be pretty.”
In March, SSA announced it will begin clawing back up to 100 percent of new overpayments against monthly benefits. The rate was previously 10 percent.
Under the new policy, beneficiaries who are overpaid after March 27 will have their entire monthly Social Security payment withheld until the debt is repaid. Claimants who were overpaid before this date will not be affected.
If enacted, the bipartisan bill in response to these changes would mean that people who mistakenly receive excess social security benefits would not have to pay the money back, if it was received more than 10 years ago.
At present, this so called “lookback” period is indefinite, meaning the administration can collect funds going back decades.
The 10-year lookback limit would not apply to people who committed fraud or other crimes.
What People Are Saying
In a release, Gallego said: “Seniors shouldn’t have to pay for the government’s mistakes, especially not mistakes that happened decades ago. That’s why I’m introducing this bipartisan, commonsense legislation to ensure that Arizona seniors aren’t blindsided by massive repayment amounts through no fault of their own.”
A disabled veteran with bipolar disorder previously told Newsweek he had received a letter from the SSA requesting he pay back $67,000. “It’s a lot to deal with on your own,” he said, adding that it’s a “simple mistake they won’t fix.”
Lee Dudek, acting commissioner of Social Security, previously said in a statement: “We have the significant responsibility to be good stewards of the trust funds for the American people. It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”
What Happens Next
To become law, the bill will have to pass numerous debates in both houses of Congress before being subject to presidential approval.
Meanwhile, those who cannot afford the full recovery of their overpayment can contact the SSA at 1-800-772-1213 or visit their local office to request a lower rate.
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