SOCIAL Security beneficiaries were left unsettled after discovering the federal agency’s shocking approach to a key aspect of the benefit recoup process.
While some recipients were disturbed by the SSA’s method for recovering payments to deceased beneficiaries, others were impressed.
The Social Security program hands out benefits to millions of Americans each month[/caption]
Social Security beneficiaries have mixed opinions on the SSA’s approach to recovering payments to deceased beneficiaries[/caption]
Social Security is a government-run program established in 1935 that provides retirement, disability, and survivor benefits to over 73 million Americans each month.
Because death is an inevitable fate for every beneficiary, the SSA has specific, non-negotiable rules for taking back any funds paid for the month in which a person dies.
If a retiree is handed their Social Security benefit for the month but passes away prior to the last day of the month, then the SSA will demand the entirety of the payment back.
An estate executor touched on how he had seen the controversial process underway at his job in a Facebook post from March.
“I witnessed how quickly the Social Security Administration claws back benefit payments after death,” wrote the user.
“A day after the funeral home notified SSA, it properly pulled payment from the decedent’s checking account as smoothly as it had made the deposit.”
Social Security: what to do when a family member dies
There are several things you need to do once your family member passes away:
- Give the deceased’s Social Security number to the
funeral director because they usually report the
person’s death to the SSA - Contact the SSA as soon as you can to ensure your
family receives all the benefits they are entitled to
“If the deceased was receiving Social Security benefits, you must return the benefits received for the month of death and any later months,” says the SSA.
“If the payment was received by direct deposit, contact the bank or other financial institution. Ask them to return any funds received for the month of death or later.
“If the benefit was paid by check, please do not cash. Instead, return the checks to us as soon as possible.
“Keep in mind that eligible family members may be able to receive survivors’ benefits for the month the beneficiary died.”
Source: Social Security Administration
The estate executor praised the federal agency’s swift approach to taking back the money, calling it “Impressive, efficient, frictionless.”
Grieving families, on the other hand, view the SSA’s approach to reclaiming benefits as a heartless blow.
One X user vented that they had read about the process and were “disturbed” by it, calling it “about as f***ed up as it gets and it needs to change.”
Under another Facebook post regarding the agency’s methodical recollection process, users complained that it was “disgusting” and “some actual BS beyond words!”
“Someone needs to rewrite SS. That’s terrible how they do everyone. So sad, they are handing our money out to everyone else but us,” wrote another user.
AN UNJUST SYSTEM
Because millions depend on the SSA for their financial survival, the agency faces intense scrutiny and criticism for its treatment of the American people.
Even Social Security’s former chief Martin O’Malley called out one of the “unjust” practices that the organization engaged in.
The SSA previously withheld 100% of Americans’ monthly Social Security benefits to recoup overpayments, leaving many beneficiaries with little to no money to cover their basic necessities.
Filing a waiver with the SSA
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
O’Malley argued in March that the approach “shocked our shared sense of equity and good conscience as Americans.”
“Innocent people can be badly hurt,” he said at the time, vowing to restructure the SSA’s approach to overpayments.
The SSA held good on his promise, reducing the withholding rate from 100% to 50% starting later this month.
The agency announced the change in an “emergency” message in April, revealing it would begin sending overpayment notices on April 25, 2025, and withhold half of a recipient’s checks beginning after approximately 90 days, or July 24 at the earliest, until the overpayment is collected.
Overpayment notices, although not too common, come as a shock to the Americans who receive them.
The pay back requests can be up to six figures and even go back decades, as there is no statute of limitations.
One mother, for example, was forced to pay back $43,000 to Social Security after a “despicable” error – and it went back 19 years.
Another woman saw her Social Security checks slashed to just $14 a month after bosses made a $12,000 overpayment error.
