If the 90-day due process recovery period expires without a due process request from
the individual, the automated system will reduce or withhold 10% of the monthly benefit
payment until we have fully recovered the overpayment.
EXAMPLE 1: Mary Green was overpaid spouse's benefits after their divorce. Mary's child, Theresa,
is their own payee receiving student benefits on their other parent’s record (Mary
Green’s ex-spouse) and lives with Mary. We notified Mary of the overpayment in 01/2015.
Mary did not request a reconsideration or a waiver; nor did they submit a full refund
within 30 days. Mary did not repay the overpayment or make installment payments. In
08/2015, we notified Theresa of Mary Green’s overpayment and proposed adjustment of
their benefits to recover Mary's overpayment. Since Theresa did not protest the proposed
recovery, we started withholding from Theresa’s benefits to recover the overpayment
beginning in 11/2015.
EXAMPLE 2: In 08/2015, we notified Theresa of Mary Green’s overpayment and proposed adjustment
of their benefits to recover their parent's overpayment. Theresa requested waiver in 08/2015 when we notified
them
of
Mary
Green’s overpayment and proposed adjustment. Because of Theresa’s waiver request, we would stop recovery actions until we make
a determination on their request.
EXAMPLE 3: In 08/2015, we notified Theresa of Mary Green’s overpayment and proposed adjustment
of their benefits to recover Mary's overpayment. Theresa requested waiver in 12/2015 but we did not stop collection activity until
01/2016. The amount we withheld from their 11/2015 benefits was proper. However, we would
refund the amount we withheld from their 12/2015 benefits.