Supposed Overpayment to My Son Due to SSA Error

**Pairodice** · 05-25-2012, 07:53 PM

I live in California.

My 14-yr. old son has been receiving family dependent SSA benefits (because of my husband's disability on SSA) since 2009. At that time, SSA determined that my son was entitled to the maximum family benefit rate as a dependent of his disabled father. I am the payee for my son and was not entitled to any benefits because I receive a pension from my job of 30 years.

I just received a letter from SSA stating they have overpaid my son over $23,000 from the last 3 years and that I need to pay it back. They said he was only entitled to half of the maximum family rate, because they had me on the account as a secondary dependent of my husband---even though they never paid me anything, as I had informed them of the pension I was receiving and didn't want benefits---which, by the way, the family rate is NOT based on what I receive.

I went in to my local SSA office and spoke with a claims rep and a Supervisor. First they were quite surprised there even was an overpayment, and could find no logical reason for it and thought it was a computation error. They said they would speak to the payment section in Richmond, CA. A couple days later the claims rep called me and gave me this explanation: Originally any qualifying dependents of my husband would receive the maximum family rate (currently $978/mo), and that the benefits would be split between the dependents, in my case 50/50: me and my son. However, because I was receiving a pension, I was not entitled to any benefits, so, to compensate for the maximum allowable, they raised my son's rate and awarded him with 100% of the family rate. SSA confirmed all this to me in a follow-up letter back in 2009. So all these years, he has received the full family rate amount.

But now they are saying they were wrong all that time and miscalculated his rate; that he should have only been receiving half of it these past 3 years. But by them splitting the family rate between the dependents, it really defeats the purpose of a "family" rate, and instead becomes an "individual" rate. Their mistake amounts to over $23,000 and they want me to pay it all back. Consequently, since any re-adjusted benefits they claim he is entitled to now ($489/mo) will stop when he's 18, simple math shows that for the next 4 years, his entire monthly benefit received will be just about zero, because they will be recouping the "overpayment." The claims rep replied this is very likely possible. They are essentially putting my son's welfare, and my family in devastating circumstances, especially asking me to pay back something that was their error, that they allowed to drag on for 3 years time, and through no fault of my own.

The claims rep also told me that when my son turns 16, he will THEN be entitled to the full family rate amount. What? What difference does it make whether he is 14 or 16 I asked. She answered, "Well, they are keeping you on the account as a "potential" beneficiary until he is 16, because that is the age at which he can be left home alone if the mother decides to go back to work. Therefore, since you are still on the account, he can only receive 50% of the family rate. Then SSA will take you off when he turns 16, and then he can get 100%." I told her that is the most ridiculous thing I ever heard. If indeed, I did go get a job, I'd be making even more money, so why would that then entitle him to 100% and not before? Makes no sense to me.

She then suggested I fill out a 7-page waiver form that says I cannot afford to pay back the overpayment. Of course there is no guarantee whatsoever that it will be granted after it is reviewed. My question is, would sending a copy of this completed form and perhaps a cover letter explaining all this to an administrator or someone up the chain of command be a better course of action? I don't have names of anyone to which I could address such a letter, but just returning this form to that claims rep alone left me with little hope of satisfaction. Any advice?

**Janke** · 05-25-2012, 10:20 PM

The request for waiver (SSA 632) has to start with the field office and the claims representative. If you don't get satisfaction from that decision, then you can go up the chain. You have to go to the first step before you go to the second. Sending a letter to a higher level employee doesn't mean that you will get that employee to make a decision. The first level is the claims representative. https://secure.ssa.gov/apps10/poms.nsf/lnx/0202250000

How about requesting a withdrawal of your mother's claim? You said you were never paid any benefits? If a withdrawal is granted, it is as if you never filed. I am not sure if the policy would allow it, but you can make a formal request. Form SSA 521. https://secure.ssa.gov/apps10/poms.nsf/lnx/0200206000

You have to complete out the appropriate forms in order for SSA to make a decision about your requests.

**sinclairville** · 05-26-2012, 07:44 AM

same thing happened to my son 12yrs on the back of that letter you can and should request a hearing, resons why you cannot pay back include obtainted new finacial burden like, you have a new loan or accumulated some sort of new bills. i had my case dropped no attorny, and it isnt your falt they made the mistake was anouther reason they accepted.

**Pairodice** · 05-26-2012, 12:39 PM

Thank you all for your encouraging answers.

@ Janke: Interesting about that withdrawal form. SO GLAD you mentioned this to me. This is the first time I've ever heard of it. That was never offered to me as an option or explained to me in any way, not in the past, and not even the other day at my local office when I talked to the claims rep. It seems that form should be the answer to my whole dilemma. I did go to the websites you linked and read the policies. It does state that when the family composition changes (a beneficiary is removed) the money that they would have received is redistributed to the remaining beneficiaries, so that the Family Maximum benefit stays the same amount, but is just reapportioned. Exactly what I was trying to tell the claims rep, but apparently back in 2009 they never actually removed me. I had originally requested never to be put on in the first place because I was receiving my own pension, but I was never told to complete a withdrawal application. I assumed I had officially been removed/excluded because I wasn't receiving any benefits. Seems like SSA is still trying to hide this option from me so that they can keep moving forward with recouping this "supposed" overpayment, when in reality, there never has been an overpayment on my son.

@ Janke: One more question: What I said in my first post about the claims rep telling me when my son turns 16 THEN they can take me off. This sounds like utter nonsense. Can they enforce this? The withdrawal form itself says nothing to such requirement, neither does the policy. In addition, the policy says there is no time limit to filing a withdrawal. My status would be, as you say, as if I never filed from the beginning. It is completely rescinded (retroactively). Besides, his father (from under which my son is receiving the benefits) is disabled and stays home anyway. So the part about leaving a 14-year old home alone sounds real hokey to me.

Again thank you so much for this information. I will be following up in person with my local office next week.