Terry Savage: Commissioner steps up to address Social Security horror stories
In testimony before Congress last week, Commissioner O'Malley announced another huge and immediate change: The burden of proof for a clawback will no longer be on the beneficiary but rather on the SSA itself.
Many clawback claims have been sent out without factual justification — a failure of due process required by law. How can a claimant asking for a waiver defend himself against an accusation of fraud or failure to report offsetting pensions, if the SSA loses the paperwork? Or if they cannot find a physician’s report saying the person is no longer disabled?
Now, if the SSA can’t prove otherwise, the claimant prevails and the clawback demand is withdrawn.
In his testimony to Congress, Commissioner O’Malley also promised to look into a statute of limitations on clawbacks. And he detailed other potential reforms, with details yet to come. Remaining to be resolved is whether people who already repaid clawback demands might be entitled to some sort of reopening of their cases — and potentially a refund if the agency cannot defend its claims with facts.
After years of abuse by Social Security representatives who dodged calls, refused to produce evidence justifying the clawbacks, denied waivers and generally gave seniors the run-around, it’s exciting to see a new tone at the top of the agency.
The new commissioner understands the founding principles of both “equity and good conscience” and the requirement that the agency not “defeat the purposes of the (Social Security) Act” by depleting the life savings of beneficiaries below a stated percentage or threshold.
The commissioner’s message: “We continue to review our overpayment procedures to identify ways to better serve our customers and uphold our stewardship responsibilities.”
What a welcome relief to millions of Americans. And that’s The Savage Truth.
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(Terry Savage is a registered investment adviser and the author of four best-selling books, including “The Savage Truth on Money.” Terry responds to questions on her blog at TerrySavage.com.)
©2024 Terry Savage. Distributed by Tribune Content Agency, LLC.
