SSI/SSDI Overpayment - Joint and Several Liability

Taking on the responsibility of being someone's representative payee should not be taken lightly. Similarly, professional rep-payee services have a responsibility to understand the effects income may have on their beneficiaries SSI and/or SSDI benefits. Failure to keep abreast of rules, thresholds, rule changes, guidelines, etc...could lead to an overpayment. When this occurs - who is responsible to re-pay the debt to SSA????

The answer could be both. This is where joint and several liability comes into play.

Below is a fictional case in which the rep-payee was simply passing the money along w/out taking into consideration the beneficiaries work activity and the ramifications that income posed - and because of a waiver...the rep-payee is liable for the overpayment.

Scenario:

For quite some time, the rep payee has not paid attention to the beneficiary's work activity and earnings. The beneficiary works more hours than he previously did, and his earnings exceed the SGA guideline and his SSDI benefits end. However, the rep payee used the SSDI checks for the benefit of the beneficiary. The beneficiary incurs a $10,000 overpayment of SSDI. The beneficiary is granted a waiver of the OP.

Who is liable for repayment of the OP?

Both the beneficiary (he received the benefit of the SSDI checks) and the rep payee (at fault in connection with the OP for not exercising due diligence in helping the beneficiary managing his financial matters).

Who has to pay?

Not the beneficiary because of the waiver. The rep payee has to repay the OP.


Any questions may be directed to: rsi5@srt.com