WASHINGTON
The Social Security Administration has demanded a woman in her mid-70s repay $35,000 in retirement benefits it says it overpaid her over the past four years. The agency notified her in August she had 30 days to comply or face a 50 percent reduction of her monthly check starting in December.
If she fails to repay, her monthly benefit would drop to approximately $1,350, down from her current $2,700 after deductions. Her payment was first cut by about $600 in February with no explanation beyond a letter saying the reduction was "to correct [her] benefit amount."
The woman maintains she did nothing wrong. She has not received a detailed explanation for the overpayment and said she is "trying to sort out what I should do next" as the sudden debt upends her financial plans. She spoke anonymously to CBS News due to fears of retribution during her appeal.
Repayment demands known as clawbacks occur even when Social Security caused the error. The recipient remains liable for returning the funds. The agency sent roughly 2 million overpayment notices across its benefit programs last year to recipients among the more than 75 million Americans who depend on Social Security checks each month.
A Social Security Administration spokesperson said the agency "is committed to ensuring that beneficiaries are treated fairly when an overpayment occurs especially in situations where they may not have caused the error."
Another beneficiary facing a similar clawback described being "up to my ears with paperwork, phone calls prayer" in an email to CBS News, underscoring the burden these notices place on retirees facing the appeal process.
