$21 Billion Social Security Overpayment Causes Problems As Government Requires Recovery From Recipients

The $21 billion in Social Security overpayment is requested by the U.S. federal government to be recovered. Further reports say the Social Security Administration is required by law to either adjust the benefits or recover the overpayments from the recipients.

The nationwide Social Security overpayment worth $21 billion is requested by the U.S. federal government to be recovered after causing administrative and financial management problems for the Social Security Administration (SSA).

According to Nesbit, records show that most of the Social Security overpayment comes from the Supplemental Security Income (SSI) which could happen if beneficiaries exceed their limits in assets or income. Reports say beneficiaries of the SSI are usually those who earn low incomes, aged 65 or older, are partially or completely blind, or have a medical condition that hinders them from being able to work.

READ ALSO: Economic Impacts Of Social Security Cuts On Working Individuals— Here’s What You Need To Know!

SSA Required to Recover Social Security Overpayment

An article in KIRO 7 states that on September 14, a statement disclosed that the SSA was required by law to recover the Social Security overpayment either by adjusting the recipients’ benefits or the recipients returning the overpayments themselves.

Reports say the SSA discovered that Social Security overpayment happens when an individual does not report on time the changes that could affect their benefits or when an individual chooses to continue receiving benefits despite an ongoing appeal.

READ ALSO: Up To $1,371 Social Security Checks In 2023 Arriving In 19 Days— See Who Receives Them!