Social Security clawback stories have been dominating the news for well over a year now.
After the Social Security Administration (SSA) overpaid many seniors, said seniors were required to pay the money back. But many of them weren’t aware of these overpayment errors.
The result was a situation where seniors were being told to pay back tens of thousands of dollars. As a result, many had their Social Security benefits suspended, creating a financial and personal nightmare. However, a new reform could make clawbacks a bit more humane and balanced.
Will This Clawback Fix Make Some Seniors’ Lives a Little Easier?
The case of clawbacks and the overpayments that led to them is a frustrating one. It encompasses many situations, some more severe than others. As we’ve reported, some seniors have ended up homeless trying to pay back the money they were sent by mistake.
The SSA head has spoken about the former Social Security clawback procedures, and has been highly critical of them. Now reforms have come. Thanks to a new rule, seniors can only have 10 percent of their Social Security check taken in order to fund repayments.
While the massive mistakes are still an issue, this should take a bit of pressure off those affected. Speaking of correcting the mistakes that caused these clawbacks, change is being discussed here too. A new policy could change payroll reporting, greatly reducing the chance of errors that lead to overpayments.
What do you think of the action being taken in response to Social Security clawbacks? Do you know anyone who was affected by this issue? Share your thoughts with us in the comments.
