S.1023 - Social Security Overpayment Relief Act (119th Congress)
Summary
The Social Security Overpayment Relief Act (S.1023) aims to amend the Social Security Act by limiting the recovery of overpayments under titles II and XVI to a 10-year period. This means that the Social Security Administration (SSA) would be prohibited from recovering overpayments that occurred more than 10 years prior to the date the Commissioner determines an overpayment was made. The bill was introduced in the Senate on March 13, 2025, and referred to the Committee on Finance.
Expected Effects
If enacted, this bill would prevent the SSA from pursuing recovery of old overpayments, potentially benefiting individuals who may have faced hardship due to these recoveries. It could also lead to increased costs for the Social Security system, as it would be unable to recoup funds from overpayments older than 10 years. This may require adjustments in budgeting or other areas to offset the lost revenue from recovered overpayments.
Potential Benefits
- Prevents financial hardship for individuals facing recovery of very old overpayments.
- Provides clarity and predictability regarding the timeframe for potential overpayment recovery.
- Reduces administrative burden on the SSA by eliminating the need to pursue older overpayments.
- Could free up SSA resources to focus on more recent and potentially larger overpayment cases.
- May improve public trust in the Social Security system by addressing concerns about aggressive overpayment recovery practices.
Most Benefited Areas:
Potential Disadvantages
- Could increase the financial burden on the Social Security system due to unrecovered overpayments.
- May incentivize individuals to delay reporting potential overpayments, knowing that older debts may not be recovered.
- Could be perceived as unfair to those who have already repaid overpayments, as they would not receive retroactive relief.
- May require adjustments to Social Security funding or benefit levels to offset the lost revenue.
- Could create a loophole for individuals who intentionally conceal information to avoid timely detection of overpayments.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it seeks to provide relief to individuals facing hardship due to Social Security overpayment recoveries. However, Congress's power to legislate regarding Social Security is derived from its authority to collect taxes and provide for the general welfare under Article I, Section 8. The bill does not appear to infringe on any specific constitutional rights or protections.
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).