Stimulus Check Payment Error Sparks Calls for Social Security Investigation

A number of U.S. senators are demanding answers from the Social Security Administration after repayment requests were incorrectly sent out to recipients.

Senators Ron Wyden (Oregon), Sherrod Brown (Ohio), and Bob Casey (Pennsylvania) sent a letter to the SSA's acting commissioner, Kilolo Kijakazi, regarding overpayment notices issued because of coronavirus stimulus checks. They wrote they are "deeply concerned that beneficiaries are receiving overpayment notices in error," demanding answers to a number of questions within 30 days, including the number of people who have been affected.

"As you know, SSI benefits, while modest, have a substantial impact in the lives of the people who rely on them," the senators wrote. "Benefit suspensions and overpayment notices — regardless of the cause — can have a profound negative impact in their lives."

It comes after benefit recipients reportedly received notices to pay back money because they had allegedly already received COVID-19 stimulus checks. An investigation by KFF Health News and Cox Media Group found that other benefits were being clawed back from recipients due to stimulus payments.

The COVID relief, referred to as stimulus or economic impact payments, caused certain recipients to exceed the $2,000 asset limit established for individuals receiving benefits through the Social Security program known as Supplemental Security Income.

According to the agency's rules, COVID payments, also known as EIPs, should not count toward the asset limit. Nevertheless, the SSA issued notices to some individuals, claiming they have received overpayments and requesting some money back.

The senators said they are "concerned by recent reporting that SSI beneficiaries have received overpayment notices because of the EIPs, even though the SSA determined that EIPs would never be counted toward eligibility for SSI."

"We sent it because ... it's not right that Social Security made a mistake, and the beneficiary shouldn't have to pay for that mistake," Brown said oj Thursday in an interview with WHIO-TV. "We're not going to drop this until they [SSA] back off."

On Wednesday, the SSA head said a "top-to-bottom, comprehensive review" had been ordered into why recipients, many of whom are vulnerable people such as the elderly and disabled, are receiving repayment demands.

According to the report by KFF Health News and Cox Media Group, Dr Kijakazi said during an October 18 House Ways and Means subcommittee that employees at the SSA "work assiduously to pay the right person the right amount at the right time."

When asked who at the agency was being held accountable for mistaken overpayment demands, Kijakazi said: "We are holding ourselves accountable."

She said the review would examine how overpayments are made, the notices it sends requesting repayment and how to make its processes more efficient.

A previous Newsweek investigation revealed some recipients had been asked to pay back tens of thousands of dollars due to mistakes made by the SSA. The agency has previously declined to comment to Newsweek about how many people have been affected by overpayments.

Newsweek has contacted the Social Security Administration for comment via email.