A claimant was overpaid Social Security mother’s benefits from the years 1978-1982 in the amount of about $6,500. During those years she had consistently underestimated her earnings, which she was required to report to Social Security. The continual underestimating of her earnings was a significant contributing factor in the overpayment. Social Security sought to recover the overpayment at the rate of $50 per month, to be deducted from her ongoing benefits. She appealed, seeking waiver of the overpayment.

One of her arguments was that a Social Security worker at her local field office had told her, when she had expressed concern that she might not be entitled to the full amount of a benefit check, that she could go ahead and cash the check. However, this episode had occurred in the early 1970’s, years before the current overpayment.

At hearing, the Administrative Law Judge (ALJ) contacted the retired worker and asked him about the case. Understandably, however, he had no memory of it. The evidence also showed that the claimant was aware of the pitfalls caused by constantly underestimating her earnings for the year. The ALJ ruled that the overpayment was not waived. She appealed to federal district court.

However, under the aforementioned circumstances, the Court could not say that the ALJ’s decision was unsupported by substantial evidence. The overpayment was affirmed.

Moral of the story: if receiving social security benefits, pay close attention to all correspondence you receive from the agency. And, be as precise as possible if you are required to report or estimate earnings.

See Tarvin v. Bowen, [1986] 1A Unempl. Ins. Rep. (CCH) paragraph 17, 556 (S.D. Ind., New Albany Div.). See also Social Security Ruling (SSR) 88-6c.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.