When you (or an automated system) discover an overpayment, send the overpaid individual a notice as soon as possible, explaining that they were overpaid, the reason for and the amount of the overpayment, and liability for repayment. If you discover the overpayment during an oral communication (telephone call or interview), advise the individual about the liability for repayment during the first oral contact. Document the conversation on the Debt Management System (DMS) Remarks screen. Always send written notice using the Manual Adjustment, Credit, and Award Data Entry (MACADE) system, AURORA, the Document Processing System (DPS), etc.

The overpayment notice must include this information:

1. 1. 

   The total amount of the overpayment and how and when it occurred, including:

   • •

     The monthly amount the person was paid,

   • •

     The monthly amount the person should have been paid,

   • •

     Why a different amount was due, and

   • •

     The months involved.

   NOTE: 

   If the overpayment resulted from the entitlement of another beneficiary, inform the adversely affected beneficiary of the other beneficiary's name, relationship to the number holder (NH), and basis for entitlement of the new beneficiary, refer to PC Procedures for Handling Adverse Claims GN 01010.325.

   You may use a single sentence, instead of a chart, when explaining what we paid versus what was payable if the overpayment period does not include multiple months or multiple money amounts. Here is an example of a single sentence: "We paid you $3,000 for June 2026. We should have paid you $1,500. Since we should have paid you $1,500 for June 2026, we paid you $1,500 more than you were due."

   For multiple overpayment periods and multiple money amounts, refer to the Notice chart example.

   Notice chart example:
   What We Paid	What We Should Have Paid
   $1,000.00 02/2023 through 11/2023	$500.00 02/2023 through 11/2023
   $1,500.00 12/2023 through 11/2024	$600.00 12/2023 through 11/2024
   $2,000.00 12/2024 through 11/2025	$700.00 12/2024 through 11/2025
   Total Paid = 52,000	Total Payable = $20,600

   Therefore, you are overpaid $31,400.

2. 2. 

   The right to request reconsideration of the overpayment determination. For information about an overpayment reconsideration request, refer to GN 02201.025.

3. 3. 

   The right to request waiver of recovery of the overpayment, and the automatic scheduling of a personal conference if we cannot approve a request for waiver after the initial review. For information about waiver requests, refer to GN 02250.001. For more information about scheduling a personal conference, refer to GN 02270.007.

4. 4. 

   Language requesting full and immediate refund.

5. 5. 

   Proposed adjustment if we do not receive the refund within 30 days and adjustment is available, refer to GN 02210.010.

6. 6. 

   The availability of:

   • •

     Installment payments, when refund is requested and benefit withholding is not available;

   • •

     Cross-program recovery, when refund is requested and the individual is receiving another SSA payment (e.g., Title XVI); and

   • •

     A different rate of withholding, when we propose 50 percent benefit withholding, refer to GN 02210.030.

     NOTE: 

     If the overpayment was the result of fraud (as determined by the Office of the Inspector General (OIG)) or similar fault (as determined by SSA), a different rate of withholding does not apply.

7. 7. 

   The requirement to notify the field office (FO) promptly if the individual requests:

   • •

     Different rate of withholding,

   • •

     Installment payments,

   • •

     Waiver, or

   • •

     Reconsideration.

An individual who receives a medical cessation determination may elect to continue receiving Title II disability payments while a request for reconsideration or for a hearing before an Administrative Law Judge (ALJ) is pending. We call these payments Statutory Benefit Continuation (SBC) payments.

When an individual appeals a medical cessation determination at the reconsideration or ALJ hearing level, they have 15 calendar days (10 days plus 5 mailing days) from the date of the medical cessation notice to elect SBC. Upon an individual's timely request for SBC, disability payments continue while we make the reconsideration determination or hearing decision. For more information on SBC election and processing, refer to DI 12027.010.

SBC payments stop after an ALJ issues a medical cessation decision even if the individual continues the appeal process and requests Appeals Council (AC) review or review in federal court.

SBC payments are not overpayments until the medical cessation decision is final. The medical cessation decision becomes final when the individual does not request further review within the appeal period (and does not have good cause for a late appeal) or has exhausted all levels of appeal. Therefore, we send an initial overpayment notice to begin recovery of SBC payments only if one of the following conditions is met:

• •

  At the reconsideration level: the individual does not appeal an unfavorable medical cessation reconsideration determination to the ALJ hearing level, the 65-day (60 days plus 5 mailing days) appeal period has expired, and there is no good cause for a late request for a hearing;

• •

  At the hearing level: the individual does not request AC review of an unfavorable ALJ medical cessation decision, the 65-day (60 days plus 5 mailing days) appeal period expires, and there is no good cause for a late request for AC review. In this situation, the ALJ will return the folder (electronic file) to the appropriate office, after the 65-day period for requesting AC review expires;

• •

  At the AC level: the AC denies a request for review, but the individual does not request judicial review of the ALJ decision and the 65-day (60 days plus 5 mailing days) period to do so expires, and there is no extension or good cause for late request for judicial review. In this situation the AC will return the folder (electronic file) to the appropriate office, after the 65-day period for requesting judicial review expires; or

• •

  At the federal court level: the individual requests judicial review and the court(s) affirms the ALJ decision. The technician will receive the final court decision.

  NOTE: 

  If the federal court remands the case and the AC then vacates the ALJ decision and remands to the ALJ for another hearing and decision, please follow instructions in DI 12027.060 (Title II cases) and DI 12027.065 (Title XVI and concurrent cases).

  IMPORTANT: Before making any manual inputs to initiate recovery and issue an overpayment notice related to SBC payments, technicians must review the individual's records to confirm an appeal is not pending at the reconsideration, ALJ, AC, or federal court level (including at the ALJ level after an AC remand) and that all the appeal time periods have expired. Before making any manual inputs to initiate recovery and issue an overpayment notice related to SBC payments, technicians must review the individual's records to confirm an appeal is not pending at the reconsideration, ALJ, AC, or federal court level (including at the ALJ level after an AC remand) and that all the appeal time periods have expired.

If the overpaid individual has a representative (e.g., an attorney or non-attorney) to act on their behalf, send a copy of the overpayment notice to the representative.

For instructions on who is a representative, refer to, GN 03910.020.

For instructions on contacting a representative, refer to, GN 03910.050.

There are differences in the preparation and delivery of the overpayment notice when the individual is located in a foreign country.

Follow instructions in GN 02215.001 through GN 02215.015.

The recovery date (i.e., the date full refund is due and, if appropriate, the date adjustment will begin) must be at least 30 days after the date of the overpayment notice. However, we send the individual an overpayment notice approximately 90 days before initiating recovery refer to GN 02210.001. This advance notice ensures that we grant the overpaid individual a meaningful opportunity either to contest the correctness of an overpayment determination or to establish the criteria for waiver.

If the individual responds within 30 days of the date of the overpayment notice, the FO must stop collection activity to ensure that we continue benefit payments, refer to MS 01106.019. If we cannot ensure the 30-day period, the PSC must extend any proposed adjustment for a longer period, refer to MS 01106.003.

Advance notice is not required if the overpaid individual has already received advance notice with respect to the overpayment.

EXAMPLE: In February 2025, we sent an overpayment notice to Sally Jones, who is no longer entitled to benefits. Sally subsequently became re-entitled to benefits in March 2026. A new advance overpayment notice is not necessary. We initiate immediate overpayment recovery in the current operating month (COM).

In addition, advance notice is not required if:

• •

  An incorrect payment results because a payment(s) is directly deposited into a joint bank account after the individual's death and the surviving joint account owner is not entitled on the deceased's record for the month before the month of death, refer to GN 02201.001F and GN 02201.007F; or

• •

  Benefits are incorrectly paid for the current year based on a current year work estimate of earnings, refer to GN 02201.001F.

If advance notice is not required, adjustment begins effective COM. However, if the individual appeals or requests waiver, stop recovery and follow normal instructions, depending on the type of appeal the individual requested.

If we did not send a notice, the content of the notice did not comply with subsection GN 02201.009B, or the individual did not receive notice at least 30 days before adjustment action, send a new notice with all of the required information specified in subsection GN 02201.009B. Repay the individual any money that we withheld to recover the overpayment. Update the overpayment balance and the recovery date another COM plus 2 months.

If you receive a returned overpayment notice as undeliverable, follow instructions for skip tracing in GN 02210.213C.