‘This is my money’: Maryland senior slams Social Security for taking $233 from her monthly retirement benefits due to legacy error on brother’s account

‘They’ve made a mistake’

Before passing away in 2006, Moulton’s brother received around $600 a month in supplemental security income (SSI) — which provides critical funds for people with disabilities and older adults who have little or no income or resources.

Almost two decades later, the SSA wrote to Moulton to inform her that her brother had “received more than he should have” in monthly SSI payments and he owes the federal agency $6,899. This debt fell onto Moulton because she was acting as her brother’s official payee before his death.

“Congress passed a law that permits us to collect SSI overpayments by withholding from the representative payee’s Social Security benefits,” the agency wrote in a letter to Moulton, obtained by WMAR News. “We plan to do so by withholding $233 from your Social Security benefits each month until we collect the $6,899 that you owe.”

That $233 monthly deduction from Moulton’s retirement benefits is no small matter, considering she relies on that money to pay basic bills.

The Baltimore senior filled out an SSA form requesting the agency reconsider its decision and, after several calls to customer service and a hearing about her case, she was told collection of the overpayment would be paused while the agency reviewed her case.

“I’ll tell them that when they discover they’ve made a mistake… eat it! Because, it’s not fair,” said Moulton. “This is not ‘your’ money you’re playing with; it’s our money.”

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Not an isolated incident

Moulton’s miserable experience is not unusual. The SSA sends overpayment notices to about one million Americans every year — and according to KFF Health News, the agency has admitted in the past that many overpayments were the result of errors by the government rather than the people — often elderly, poor or disabled — receiving the extra money.

“This is sad because it’s happening to other people and they need to let you know,” Moulton said of the expansive overpayment issue. “Who holds them [the SSA] responsible? Somebody needs to.”

In the fiscal year 2023 (Oct. 1, 2022 to Sept. 30, 2023), the SSA reported more than $4.9 billion in recovered overpayments, but says it ended the year with $23 billion of overpayments still uncollected.

Collecting overpayments can be a big problem for financially insecure people — such as retirees like Moulton and disabled workers, their dependents and survivors of deceased workers — including those who receive Social Security benefits.

The SSA has announced steps it is taking to make overpayment issues easier for beneficiaries — including extending repayment plans, removing the burden of proof of fault and making it easier for people to request a waiver — but as Moulton has discovered, you may still have to put a lot of time in to get your case heard.