Arizona Politics

Gallego Introduces Bipartisan Bill Protecting Seniors from Social Security Overpayment Lookback

Senator Ruben Gallego (D-AZ) is cosponsoring a bipartisan bill that would prevent Social Security seniors from needing to pay back overpayments from over ten years ago.

Named the Social Security Overpayment Relief Act, Sen. Gallego's bill limits the amount of time the Social Security Administration (SSA) can charge recipients to pay back overpayments to ten years.

In other words, whenever Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI) mistakenly pay over the fixed amount afforded to a recipient, the recipient must pay it back.

However, the SSA has an indefinite lookback period, meaning they can go back decades and post a collection notice totaling tens or hundreds of thousands of dollars.

Thus, the Social Security Overpayment Relief Act was introduced. Under this act, collection notices can only apply to overpayments within ten years.

"Seniors shouldn't have to pay for the government's mistakes, especially not mistakes that happened decades ago," said Sen. Gallego in his press release, adding, "That's why I'm introducing this bipartisan, commonsense legislation to ensure that Arizona seniors aren't blindsided by massive repayment amounts through no fault of their own. I'm proud to work across the aisle to protect retirees from unnecessary financial hardship."

Senator Bill Cassidy (R-LA), the bill's cosponsor, said, "Seniors are being blindsided by bills demanding tens of thousands of dollars for overpayments made by the government. They shouldn't be on the hook for someone else's mistake."

Representatives Kristen McDonald Rivet (D-MI) and Zach Nunn (R-IA) have introduced the House of Representatives companion bill.

Earlier in March, Sen. Gallego cosponsored another bipartisan bill, the Access to Credit for our Rural Economy (ACRE) Act. This bill excludes interest gross income received on particular rural or agricultural property, thereby lowering interest rates and expanding tax-exempt status on specific earned interest that applies to other lenders. Thus, farmers and rural homeowners would save $400 million in annual interest expenses.

Grayson Bakich

Florida born and raised, Grayson Bakich is a recent recipient of a Master’s Degree in Political Science at the University of Central Florida. His thesis examined recent trends in political polarization and how this leads into justification of violence.

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