Section 1 Short title
This Act may be cited as the “Social Security Overpayment Fairness Act”.
Social Security Overpayment Fairness Act
A BILL
To amend the Social Security Act to require a 120-day period between notice of an overpayment of benefits under titles II and XVI and beginning recovery of such overpayment, and to require the Commissioner of Social Security to submit a report to Congress on a strategy related to recovery of such overpayments.
Sec. 2 Notice requirement
Title II amendment— Subparagraph (A) of section 204(a)(1) of the Social Security Act (42 U.S.C. 404) is amended—
by striking “With respect” and inserting “(i) With respect”; and
by adding at the end the following:
“(ii) In the case of a payment to a person of more than the correct amount, the Commissioner shall commence proper adjustment or recovery not earlier than 120 days after providing notice to the individual of the payment of more than the correct amount.”
Title XVI amendment— Section 1631(b)(1) of such Act (42 U.S.C. 1383(b)(1)) is amended by adding at the end the following:
“(C) In the case of a payment of more than the correct amount of benefits, the Commissioner shall commence proper adjustment or recovery not earlier than 120 days after providing notice to the individual of the payment of more than the correct amount.”
Effective date— The amendments made by this Act shall take effect on the date of enactment of this Act, and shall be effective with respect to overpayments under titles II and XVI of the Social Security Act that are outstanding on or after such date.
Sec. 3 Report on strategies for overpayment recovery
Not later than 180 days after the date of enactment of this Act, the Commissioner of Social Security shall submit to Congress a strategy relating to the recovery of overpayments of old-age, survivors, and disability insurance benefits under title II of the Social Security Act and supplemental security income benefits under title XVI of such Act. The strategy shall seek to achieve the objectives that follow:
Improving the process of reviewing changes in information reported by beneficiaries;
Expanding efforts to limit discrepancies in accuracy resulting from beneficiaries self-reporting information;
Improving efforts to prevent and track overpayments to beneficiaries.
Ensuring due process is followed in recovering overpayments.
Improving and increasing written and oral communication between the Social Security Administration and beneficiaries in relation to the recovery of overpayments.
Propose fair and reasonable benefit withholding amounts designed to avoid undue financial strain on beneficiaries.