What is a common cause of a Title II overpayment?

A common cause of a Title II overpayment relates to a delay in the determination of Substantial Gainful Activity (SGA). When a beneficiary engages in work and earns income that might exceed the SGA threshold, their eligibility for disability benefits can be negatively impacted. However, if there is a delay in making this determination, payments may continue, resulting in an overpayment situation.

This is important because, during the period of delay, the beneficiary may not be aware that they are exceeding the earnings limit, and as a result, they could receive benefits they are no longer eligible for once a decision is finally made. Proper knowledge of the SGA thresholds and timely notification to the Social Security Administration (SSA) about work activity can help mitigate such overpayment scenarios.

The other factors listed may contribute to overpayments in different contexts but are not as directly correlated with the specific timing and decision-making process that characterizes delays in SGA determinations. For example, inaccurate reporting or changes in address can result in communication issues, which may be problematic, but they do not have the same immediate impact on payment decisions. Exceeding the earnings limit is certainly a cause of overpayment, but it is the timing of the decision on SGA that leads