Ex-Social Security insider reveals the shocking truth: Billions in overpayments happening yearly! Are you affected?
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Few systems are as vital to American seniors as Social Security.
It's the financial bedrock for millions, a symbol of the promise that after a lifetime of work, there's a measure of security waiting.
But what happens when the very system designed to protect us in our golden years is riddled with errors, causing overpayments that can total billions annually?
This isn't just a hypothetical question—it's the alarming reality uncovered by an insider with decades of experience.
The GrayVine is here to shed light on this pressing issue, and more importantly, to guide you through understanding if you're affected and what steps you can take.
Avram Sacks, a former government attorney for the Social Security Administration (SSA), has come forward with a disturbing account of the state of Social Security payments.
His journey into the heart of the issue began nearly 40 years ago when he was tasked with defending the SSA's efforts to reclaim overpayments.
What he found was a system fraught with inaccuracies and a culture that often penalizes beneficiaries for the agency's own mistakes.
Sacks' revelations are not just based on anecdotal evidence.
A report from the SSA's Inspector General, released in August, supports his claims, showing nearly $72 billion in improper payments between 2015 and 2022.
That's an average of about $9 billion each year—a staggering sum that can have severe consequences for individuals and families who rely on these funds.
The SSA sends approximately one million overpayment notices annually, according to Social Security Acting Commissioner Kilolo Kijakazi.
These notices can be devastating for recipients, many of whom are not in a financial position to return the funds.
This is especially true for those with disabilities, who may already be facing significant financial challenges.
Sacks criticizes the agency's approach, noting that beneficiaries are often treated with suspicion, as if they were attempting to defraud the system, even when overpayments are the result of agency errors.
“Agency culture has, for years, treated overpaid beneficiaries like criminals, even though many of the overpayments are due to agency error,” he said.
This adversarial stance can lead to undue stress and financial hardship for individuals who are simply trying to navigate a complex and flawed system.
In response to growing scrutiny and public concern, the Biden administration appointed former Baltimore Mayor Martin O'Malley as the new Social Security Commissioner.
O'Malley has been tasked with addressing major issues, including the rampant overpayments.
In a move praised by Sacks, O'Malley announced a significant policy change, reducing the recovery of overpayments from 100% of monthly benefits to a more manageable 10%.
“It’s unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment,” Commissioner O’Malley explained.
This change reflects a shift toward a more compassionate approach–recognizing the potential harm that aggressive recovery tactics can have on beneficiaries.
As a recipient of Social Security benefits, there are proactive steps you can take to minimize the risk of overpayment:
1. Know Your Numbers: Calculate the amount you should be receiving and regularly check your payments for accuracy.
2. Report Changes: Inform the SSA promptly about any changes in your income, work status, or living situation.
3. Keep Records: Document your wages and any communications with the SSA to ensure you have evidence if there's a dispute.
If you receive a notice of overpayment, don't panic! You have options:
1. Assess Fault: Determine whether the overpayment was due to your actions or an agency error.
2. Appeal: If you believe the overpayment notice is incorrect, you can file an appeal with the SSA.
3. Request a Waiver: If you're not at fault and cannot afford to repay the overpayment, you may seek a waiver.
Public concern has also grown regarding the opacity of the SSA's payment calculations.
Sacks calls for the agency to be more transparent about its methodology and the criteria it uses before issuing overpayment notices.
Have you or someone you know been affected by Social Security overpayments? Share your stories and questions in the comments below. Your insights can help others in our community navigate these challenges.
It's the financial bedrock for millions, a symbol of the promise that after a lifetime of work, there's a measure of security waiting.
But what happens when the very system designed to protect us in our golden years is riddled with errors, causing overpayments that can total billions annually?
This isn't just a hypothetical question—it's the alarming reality uncovered by an insider with decades of experience.
The GrayVine is here to shed light on this pressing issue, and more importantly, to guide you through understanding if you're affected and what steps you can take.
The Troubling Discovery of Systemic Overpayments
Avram Sacks, a former government attorney for the Social Security Administration (SSA), has come forward with a disturbing account of the state of Social Security payments.
His journey into the heart of the issue began nearly 40 years ago when he was tasked with defending the SSA's efforts to reclaim overpayments.
What he found was a system fraught with inaccuracies and a culture that often penalizes beneficiaries for the agency's own mistakes.
Avram Sacks, a former government attorney and Social Security expert, has highlighted a “really messed up” system where overpayments by the Social Security Administration are high. Image source: Pexels.
Sacks' revelations are not just based on anecdotal evidence.
A report from the SSA's Inspector General, released in August, supports his claims, showing nearly $72 billion in improper payments between 2015 and 2022.
That's an average of about $9 billion each year—a staggering sum that can have severe consequences for individuals and families who rely on these funds.
The Human Cost of Overpayments
The SSA sends approximately one million overpayment notices annually, according to Social Security Acting Commissioner Kilolo Kijakazi.
These notices can be devastating for recipients, many of whom are not in a financial position to return the funds.
This is especially true for those with disabilities, who may already be facing significant financial challenges.
Sacks criticizes the agency's approach, noting that beneficiaries are often treated with suspicion, as if they were attempting to defraud the system, even when overpayments are the result of agency errors.
“Agency culture has, for years, treated overpaid beneficiaries like criminals, even though many of the overpayments are due to agency error,” he said.
This adversarial stance can lead to undue stress and financial hardship for individuals who are simply trying to navigate a complex and flawed system.
Reforming the System: A New Direction
Changes have been made to the SSA's recovery policy, reducing the amount recovered from 100% of monthly benefits to 10%, to avoid undue hardship for beneficiaries. Image Source: Pexels.
In response to growing scrutiny and public concern, the Biden administration appointed former Baltimore Mayor Martin O'Malley as the new Social Security Commissioner.
O'Malley has been tasked with addressing major issues, including the rampant overpayments.
In a move praised by Sacks, O'Malley announced a significant policy change, reducing the recovery of overpayments from 100% of monthly benefits to a more manageable 10%.
“It’s unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment,” Commissioner O’Malley explained.
This change reflects a shift toward a more compassionate approach–recognizing the potential harm that aggressive recovery tactics can have on beneficiaries.
Protecting Yourself from Overpayment
As a recipient of Social Security benefits, there are proactive steps you can take to minimize the risk of overpayment:
1. Know Your Numbers: Calculate the amount you should be receiving and regularly check your payments for accuracy.
2. Report Changes: Inform the SSA promptly about any changes in your income, work status, or living situation.
3. Keep Records: Document your wages and any communications with the SSA to ensure you have evidence if there's a dispute.
Navigating Overpayment Notices
If you receive a notice of overpayment, don't panic! You have options:
1. Assess Fault: Determine whether the overpayment was due to your actions or an agency error.
2. Appeal: If you believe the overpayment notice is incorrect, you can file an appeal with the SSA.
3. Request a Waiver: If you're not at fault and cannot afford to repay the overpayment, you may seek a waiver.
The Need for Transparency
Public concern has also grown regarding the opacity of the SSA's payment calculations.
Sacks calls for the agency to be more transparent about its methodology and the criteria it uses before issuing overpayment notices.
Have you or someone you know been affected by Social Security overpayments? Share your stories and questions in the comments below. Your insights can help others in our community navigate these challenges.
