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‘Social Security Disability’ Category
Social Security Announces 3.6 Percent Benefit Increase for 2012
Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration announced today. The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011. Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
Information about Medicare changes for 2012, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.
SSA Press Office 440 Altmeyer Building 6401 Security Blvd. Baltimore, MD 21235
410-965-8904 FAX 410-966-9973
Thursday, July 21, 2011
Author: Brett Schmied
An overpayment occurs when Social Security is alleging that it paid a beneficiary more than it should have paid that particular beneficiary. This is why it is important to report directly to your local Social Security office and inform Social Security a change occurred that could affect your monthly benefit amount. Please notify Social Security promptly by phone, mail or in person whenever a change occurs that could affect your benefits. Family members receiving benefits based on your work also should report events that might affect their payments.
The following must be reported: (1) if you begin working; (2) if you receive other disability benefits; (3) if you are offered services under Ticket to Work Program; (4) if you move; (5) if you change bank deposit accounts; (6) if you become unable to manage your benefits; (7) if you get a pension not covered by Social Security; (8) if you get married or divorced; (9) if you change your name; (10) if you care for child who receives benefits; (11) if you become a parent (either naturally or through adoption); (12) if you have an outstanding arrest warrant for certain felonies; (13) if you are convicted of a crime; (14) if you violate a condition of parole or probation; (15) if you leave the United States; (16) if your citizenship status changes; (17) if a beneficiary dies; (18) or if you receive Social Security or Railroad Retirement benefits.
There are two options if an overpayment issue arises. First, if you agree that you have been paid too much and that the overpayment amount is correct, you have options for repaying it.
If you are receiving Social Security benefits, Social Security will withhold the full amount of your benefit each month, unless you ask for a lesser withholding amount and Social Security approves your request. Generally, Social Security will approve your request to a lesser withholding amount as long as the overpayment would paid within 3 years.
If you are receiving Supplemental Security Income (SSI), generally Social Security will withhold 10 percent of the maximum federal benefit rate each month. If you cannot afford this, you may ask that less be taken from your benefit. Or you may ask to pay back the overpayment at a rate greater than 10 percent. The same general rule for lowering the amount applies here. Social Security will not start deducting money from your SSI payments until at least 60 days after it notifies you of the overpayment. If you no longer receive SSI, but you do receive Social Security, you can pay back your SSI overpayment by having up to 10 percent of your monthly Social Security benefit withheld.
If you are not receiving benefits, you can: send a check to Social Security for the entire amount of the overpayment within 30 days; or contact Social Security to set up a plan to pay back the amount in monthly installments. Generally, Social Security will likely approve an amount that would eliminate the overpayment within 3 years.
If you are not receiving benefits, and you do not pay the amount back, Social Security can recover the overpayment from your federal income tax refund or from your wages if you are working. Also, Social Security can recover overpayments from future SSI or Social Security benefits. Social Security also will report the delinquency to credit bureaus.
Alternatively, if you do not agree that you have been overpaid, or if you believe the amount is incorrect, you can appeal by filing form SSA-561 with your local Social Security office. Your appeal must be in writing. You should explain why you think you have not been overpaid or why you think the amount is not correct.
You have 60 days from the date on the original overpayment notice to file an appeal. Social Security will assume you got this letter five days after the date on it, unless you show Social Security that you did not get it within the five-day period. You must have a good reason for waiting more than 60 days to ask for an appeal.
If you believe you should not have to pay the money back, you can request that Social Security waive collection. You must submit form SSA-632 at your local Social Security office. There is no time limit for filing a waiver. In order for the waiver to be granted, you must prove: (1) the overpayment was not your fault; AND (2) paying the amount back would cause you financial hardship or be unfair for some other reason.
Social Security may ask you to give it proof of your income and expenses. Social Security also may ask you to meet with a Social Security representative. If so, it is important for you to attend this meeting.
Social Security will stop recovering the overpayment until it makes a decision on either your request for an appeal or a waiver. Remember, any decision can be appealed.
Please contact us at (877) SSD-IWIN or email consult@ericjoneslaw.com for additional information.
