VB 02005.300 Waiver of SVB Overpayments
Section 808(c) of the Social Security Act
One of the methods for resolving an SVB overpayment is to waive recovery of the overpaid amount. A request for waiver is a request for release from the responsibility for repayment of all or part of an overpayment. Approval of a request for waiver relieves the overpaid person (or his/her estate) from the obligation to repay the amount of the overpayment covered by the waiver.
Section 808(c) of the Social Security Act precludes recovery of an SVB overpayment from any person who is without fault in creating the overpayment and against whom recovery would defeat the purpose of title VIII of the Social Security Act or would be against equity and good conscience.
NOTE: The fault/without fault policies outlined in GN 02250.005 apply to SVB overpayments. GS-11 or higher CPS/FO personnel make SVB waiver determinations.
1. Requests for waiver
A request for waiver must be in writing and over the overpaid person’s signature (or that of his/her representative payee), and can be made at any time (i.e., before, during or after recovery or recovery action).
Generally, only a person who has been found to be liable for repayment of an overpayment can request waiver. See VB 02005.110 for policies regarding SVB overpayment liability. You do not have to make a waiver determination for a representative payee when the representative payee is without fault and used the funds on behalf of the recipient. The representative payee has no personal liability for repayment in such cases.
The date a waiver request is considered filed is the date the written request for waiver is received by SSA, i.e., foreign service post (FSP), field office (FO) or central processing site (CPS).
2. Effect of a waiver request
If a request for waiver is filed within 30 days (plus 5 days for mailing) of receipt of the overpayment notice, stop recovery actions, and refund by AOTP any payments withheld in the month the request is filed. If SSA mailed the overpayment notice to a person outside the United States, extend the 5-day presumed receipt date if circumstances in a particular case warrant it. Accept the claimant's allegations of foreign mail delays without supporting evidence unless there is reason to doubt them.
If the person does not timely appeal a waiver denial and reconsideration of the overpayment determination is not pending, resume recovery only after 30 days have passed (plus 5 or more days for mailing) from the date of notice of waiver denial.
If request for waiver is filed more than 30 days (plus 5 or more days for mailing as above) after receipt of the overpayment notice, stop recovery actions and refund any payments already withheld for the month in which the request is filed.
See VB 02005.355 for initial overpayment determination reconsideration procedures and see VB 02005.370 for waiver determination reconsideration procedures. (VB 02502.001 provides basic instructions for SVB reconsiderations.)
3. Effect of an approved waiver request
An approved request for waiver relieves the obligation to repay the amount of the overpayment being waived. Any amount covered by the waiver approval that was collected on the SVB overpayment prior to the waiver approval must be refunded.