06/23/2024
https://www.cbsnews.com/news/preventing-social-security-overpayments-60-minutes/
60 MINUTES OVERTIME
Social Security overpayments: Tips to prevent them
60-minutes-overtime
By Brit McCandless Farmer, Andy Court, Annabelle Hanflig
Updated on: June 23, 2024 / 7:00 PM EDT / CBS News
This week on 60 Minutes, correspondent Anderson Cooper reports on what happens when Social Security overpays people who receive benefits. Beneficiaries may find out years later that they owe tens of thousands of dollars—even if it was not their fault.
While researching the story, the 60 Minutes team, including producer Andy Court and associate producer Annabelle Hanflig, asked experienced professionals in the field: What can people do to reduce the chances of getting an unexpected bill from Social Security? Here are some of those tips, including new information about changes the Social Security Administration has enacted since the 60 Minutes story first aired in November 2023.
Retirement benefits
If you receive Social Security retirement benefits, one of the best ways to prevent overpayments is to check the earnings history Social Security has on record for you. You can do this before you retire.
How much Social Security should pay when you retire is determined by how much you contribute in payroll taxes while you're working. If the agency has the wrong information, you may face problems years later. You can find the information on your annual Social Security statements or on your My Social Security account on the Social Security Administration's website.
If you are nearing retirement or have already retired, there are products that can help you figure out how much you should be getting. A program called Maximize My Social Security lets you analyze complex scenarios, like when you and your spouse should claim retirement benefits, since who claims first and when can make a big difference. The program costs $39 a year.
AARP also has a free basic Social Security calculator to determine how much you should be getting.
Specialists 60 Minutes spoke with advised that all recipients should figure out what they should be receiving because it can take the Social Security Administration years to catch mistakes.
Non-covered pension plan
If you work in the public sector—for example, as a teacher or a firefighter—it's important to know whether you're part of a non-covered pension plan.
If you are, instead of paying into the Social Security system, you are paying into a pension plan run by a state or local government. When you retire, you must tell Social Security about this non-covered pension money. If you don't and you receive Social Security from another job you had, you may end up being overpaid.
Social Security disability benefits
If you're receiving Social Security disability benefits and decide to go back to work, you need to be extra careful. After an initial trial work period is over, you cannot make more than a set amount per month, or you will no longer be eligible for disability benefits. That monthly income limit is called Substantial Gainful Activity. The monthly limit for 2023 is $1,470 for non-blind recipients, but the amount changes each year.
If you are receiving both Social Security disability benefits and worker's comp, you must report the worker's comp. If you don't, you may end up owing Social Security a lot of money.
Social Security overpays its recipients by billions of dollars every year — and then asks for the money back. Here are some ways experts say you can reduce the chances of it happening to you.
