Apr 24, 2024
A Maryland senior has called out the Social Security Administration (SSA) for slashing her monthly retirement benefits by $233 — all because of a decades-old error on her deceased brother’s account.
Everlon Moulton received a dreaded Social Security overpayment notice in November 2023. She was shocked to discover the SSA was trying to claw back extra money it supposedly paid out to her brother, Robert A. Samuels Jr., in the early 2000s.
Advertisement
“They caught their mistake and tried to collect the money, but he had passed,” Moulton, whose brother died in 2006, told 2ABC WMAR News.
Unfortunately, the retiree then discovered she was on the hook for her brother’s $6,899 overpayment, which she branded as totally unfair.
“[It’s] not my fault. I don’t work for Social Security,” she said. “This is my money [that] I earned. I worked for 37 years in Baltimore City Schools and this is my money.”
Here’s what happened — and what you can do if you receive a Social Security overpayment notice that you think is incorrect or unfair.
‘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.
Advertisement
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.”
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
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.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Bethan Moorcraft is a reporter for Moneywise with experience in news editing and business reporting across international markets.
