H.R.2999 - To amend title II of the Social Security Act to provide that not more than 10 percent of a monthly benefit may be withheld on account of overpayments. (119th Congress)
Summary
H.R.2999 proposes amending Title II of the Social Security Act to limit the amount withheld from monthly benefits due to overpayments. The bill stipulates that, in cases where overpayment wasn't due to fraud or similar fault, the Commissioner of Social Security can't decrease monthly benefits by more than 10% of the payable amount, unless the individual requests a higher recovery rate.
The bill aims to protect beneficiaries from severe financial hardship due to overpayment recovery.
The amendment would take effect upon enactment and apply to outstanding overpayments on or after that date.
Expected Effects
The primary effect of this bill, if enacted, would be to reduce the financial burden on Social Security beneficiaries who have received overpayments. It would prevent the Social Security Administration from withholding more than 10% of a beneficiary's monthly payment to recover overpayments, unless the beneficiary agrees to a higher rate.
This change would allow beneficiaries to maintain a larger portion of their income, potentially improving their ability to cover essential living expenses.
It may also lead to a longer recovery period for overpayments.
Potential Benefits
- Reduced Financial Strain: Limits the amount withheld for overpayments, allowing beneficiaries to retain more of their monthly income.
- Protection Against Hardship: Prevents drastic reductions in benefits that could lead to financial instability.
- Fairness: Distinguishes between overpayments due to fraud and those due to error, offering more lenient recovery terms for the latter.
- Beneficiary Control: Allows individuals to request a higher recovery rate if they prefer to resolve the overpayment more quickly.
- Improved Budgeting: Provides more predictable income for beneficiaries managing overpayment recoveries.
Most Benefited Areas:
Potential Disadvantages
- Extended Recovery Period: Limiting withholdings to 10% may prolong the time it takes to recover overpayments.
- Potential for Increased Administrative Costs: The Social Security Administration may incur additional costs managing longer repayment schedules.
- Risk of Unrecovered Funds: In some cases, beneficiaries may die before the full overpayment is recovered, leading to a loss for the Social Security system.
- Complexity in Implementation: Implementing the new withholding rules may require system updates and staff training, adding to administrative burden.
- Possible Moral Hazard: Although the bill excludes cases of fraud, some individuals might be less diligent in reporting changes in circumstances that could affect their benefits, knowing that overpayment recovery will be limited.
Most Disadvantaged Areas:
Constitutional Alignment
This bill appears to align with the general welfare clause of the US Constitution, as it aims to provide a safety net for vulnerable populations receiving Social Security benefits. The general welfare clause, found in the Preamble, suggests that the government should promote the well-being of its citizens.
Furthermore, the bill does not appear to infringe upon any specific rights or liberties protected by the Bill of Rights or other constitutional amendments.
Congress's authority to legislate in this area stems from its power to collect taxes and provide for the general welfare, as outlined in Article I, Section 8 of the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).