POMS Reference

GN 02250: Waiver Provisions for Title II and Title XVIII Overpayments

TN 14 (02-98)

A. Policy

Once an individual is advised of the correct interpretation of a provision, he will be found at fault for any subsequent overpayments involving the same provision.

B. Examples

1. At Fault

Paul Martin was overpaid because he failed to report an increase in his workers' compensation. He is found without fault, and advised of his responsibility to report changes in his workers' compensation. Two years later, he is again overpaid because he failed to report an increase in his worker's compensation payments. He is at fault for the second overpayment.

2. Without Fault

  1. Joe Greene became entitled to retirement benefits at age 65. He continued to work but limited his take-home pay to the allowable amount. He was overpaid due to his work. He was found to be without fault for the overpayment since it resulted from the fact that his gross salary exceeded the allowable amount (GN 02250.060).

    Two years later, he is again overpaid due to work. He received vacation pay which he did not know was considered wages for deduction purposes. Even though both overpayments were due to his work, he can be found without fault for the second overpayment since it was incurred under different circumstances.

  2. Louis Quincy's work caused his children who are living in a separate household to be overpaid. Several years later, Louis' work again caused the children to be overpaid. The children would not be found at fault for the subsequent overpayment.