Social Security Administration Announces Major Overpayment Policy Reforms

The new policies aim to alleviate financial burdens on beneficiaries, with changes including reduced clawback rates and shifted burden of proof.

Social Security Commissioner Martin O'Malley announced plans to significantly reduce the rate at which overpayments are clawed back, setting a new default rate of 10% of a beneficiary's monthly check.
The burden of proof for who caused an overpayment will now lie with the Social Security Administration, not the beneficiary.
Beneficiaries will have simpler ways to seek waivers and arrange repayment plans, extending the repayment period from three to five years.
The reforms are a response to years of complaints about 'grave injustices' caused by the clawback of overpayments, which have left some beneficiaries in dire financial straits.
Future reforms may include a limitation on how far back the SSA can reach to recover overpayments, with an announcement expected in the coming months.