42 U.S.C. § 404 : US Code - Section 404: Overpayments and underpayments

Search 42 U.S.C. § 404 : US Code - Section 404: Overpayments and underpayments

(a) Procedure for adjustment or recovery
(1) Whenever the Commissioner of Social Security finds that more
or less than the correct amount of payment has been made to any
person under this subchapter, proper adjustment or recovery shall
be made, under regulations prescribed by the Commissioner of Social
Security, as follows:
(A) With respect to payment to a person of more than the
correct amount, the Commissioner of Social Security shall
decrease any payment under this subchapter to which such overpaid
person is entitled, or shall require such overpaid person or his
estate to refund the amount in excess of the correct amount, or
shall decrease any payment under this subchapter payable to his
estate or to any other person on the basis of the wages and self-
employment income which were the basis of the payments to such
overpaid person, or shall obtain recovery by means of reduction
in tax refunds based on notice to the Secretary of the Treasury
as permitted under section 3720A of title 31, or shall apply any
combination of the foregoing. A payment made under this
subchapter on the basis of an erroneous report of death by the
Department of Defense of an individual in the line of duty while
he is a member of the uniformed services (as defined in section
410(m) of this title) on active duty (as defined in section
410(l) of this title) shall not be considered an incorrect
payment for any month prior to the month such Department notifies
the Commissioner of Social Security that such individual is
alive.
(B) With respect to payment to a person of less than the
correct amount, the Commissioner of Social Security shall make
payment of the balance of the amount due such underpaid person,
or, if such person dies before payments are completed or before
negotiating one or more checks representing correct payments,
disposition of the amount due shall be made in accordance with
subsection (d) of this section.
(2) Notwithstanding any other provision of this section, when any
payment of more than the correct amount is made to or on behalf of
an individual who has died, and such payment -
(A) is made by direct deposit to a financial institution;
(B) is credited by the financial institution to a joint account
of the deceased individual and another person; and
(C) such other person was entitled to a monthly benefit on the
basis of the same wages and self-employment income as the
deceased individual for the month preceding the month in which
the deceased individual died,
the amount of such payment in excess of the correct amount shall be
treated as a payment of more than the correct amount to such other
person. If any payment of more than the correct amount is made to a
representative payee on behalf of an individual after the
individual's death, the representative payee shall be liable for
the repayment of the overpayment, and the Commissioner of Social
Security shall establish an overpayment control record under the
social security account number of the representative payee.
(b) No recovery from persons without fault
In any case in which more than the correct amount of payment has
been made, there shall be no adjustment of payments to, or recovery
by the United States from, any person who is without fault if such
adjustment or recovery would defeat the purpose of this subchapter
or would be against equity and good conscience. In making for
purposes of this subsection any determination of whether any
individual is without fault, the Commissioner of Social Security
shall specifically take into account any physical, mental,
educational, or linguistic limitation such individual may have
(including any lack of facility with the English language).
(c) Nonliability of certifying and disbursing officers
No certifying or disbursing officer shall be held liable for any
amount certified or paid by him to any person where the adjustment
or recovery of such amount is waived under subsection (b) of this
section, or where adjustment under subsection (a) of this section
is not completed prior to the death of all persons against whose
benefits deductions are authorized.
(d) Payment to survivors or heirs when eligible person is deceased
If an individual dies before any payment due him under this
subchapter is completed, payment of the amount due (including the
amount of any unnegotiated checks) shall be made -
(1) to the person, if any, who is determined by the
Commissioner of Social Security to be the surviving spouse of the
deceased individual and who either (i) was living in the same
household with the deceased at the time of his death or (ii) was,
for the month in which the deceased individual died, entitled to
a monthly benefit on the basis of the same wages and self-
employment income as was the deceased individual;
(2) if there is no person who meets the requirements of
paragraph (1), or if the person who meets such requirements dies
before the payment due him under this subchapter is completed, to
the child or children, if any, of the deceased individual who
were, for the month in which the deceased individual died,
entitled to monthly benefits on the basis of the same wages and
self-employment income as was the deceased individual (and, in
case there is more than one such child, in equal parts to each
such child);
(3) if there is no person who meets the requirements of
paragraph (1) or (2), or if each person who meets such
requirements dies before the payment due him under this
subchapter is completed, to the parent or parents, if any, of the
deceased individual who were, for the month in which the deceased
individual died, entitled to monthly benefits on the basis of the
same wages and self-employment income as was the deceased
individual (and, in case there is more than one such parent, in
equal parts to each such parent);
(4) if there is no person who meets the requirements of
paragraph (1), (2), or (3), or if each person who meets such
requirements dies before the payment due him under this
subchapter is completed, to the person, if any, determined by the
Commissioner of Social Security to be the surviving spouse of the
deceased individual;
(5) if there is no person who meets the requirements of
paragraph (1), (2), (3), or (4), or if each person who meets such
requirements dies before the payment due him under this
subchapter is completed, to the person or persons, if any,
determined by the Commissioner of Social Security to be the child
or children of the deceased individual (and, in case there is
more than one such child, in equal parts to each such child);
(6) if there is no person who meets the requirements of
paragraph (1), (2), (3), (4), or (5), or if each person who meets
such requirements dies before the payment due him under this
subchapter is completed, to the parent or parents, if any, of the
deceased individual (and, in case there is more than one such
parent, in equal parts to each such parent); or
(7) if there is no person who meets the requirements of
paragraph (1), (2), (3), (4), (5), or (6), or if each person who
meets such requirements dies before the payment due him under
this subchapter is completed, to the legal representative of the
estate of the deceased individual, if any.
(e) Adjustments due to supplemental security income payments
For payments which are adjusted by reason of payment of benefits
under the supplemental security income program established by
subchapter XVI of this chapter, see section 1320a-6 of this title.
(f) Collection of delinquent amounts
(1) With respect to any deliquent (!1) amount, the Commissioner
of Social Security may use the collection practices described in
sections 3711(f), 3716, 3717, and 3718 of title 31 and in section
5514 of title 5, all as in effect immediately after April 26, 1996.
(2) For purposes of paragraph (1), the term "delinquent amount"
means an amount -
(A) in excess of the correct amount of payment under this
subchapter;
(B) paid to a person after such person has attained 18 years of
age; and
(C) determined by the Commissioner of Social Security, under
regulations, to be otherwise unrecoverable under this section
after such person ceases to be a beneficiary under this
subchapter.
(g) Cross-program recovery of overpayments
For provisions relating to the cross-program recovery of
overpayments made under programs administered by the Commissioner
of Social Security, see section 1320b-17 of this title.