SSA did not issue policy-compliant overpayment notices for 46 percent of the cases we reviewed and incorrectly processed 63 percent of cases with explanation request indicators. Based on our sample, we estimate SSA issued inaccurate or noncompliant notices for more than 469,000 OASDI overpayments established in FY 2023.

SSA did not always issue overpayment notices or process explanation requests according to policy. Of the 126 overpayments reviewed, 46 percent had notices that did not comply with policy. Common problems included missing required information explaining how and when the overpayment occurred, missing information about reconsideration and waiver rights, inaccurate overpayment amounts or reasons, and conflicting language. OIG estimated that more than 469,000 of the approximately 1 million OASDI overpayments established in FY 2023 did not have accurate, policy-compliant notices.

SSA also incorrectly processed 63 percent of the cases with explanation request indicators. Errors included employees using the indicator for purposes other than a written explanation request, issuing deficient explanation notices, and failing to properly document requests. OIG estimated that employees incorrectly processed more than 7,000 overpayments with explanation request indicators.

We made six recommendations for SSA to establish controls and update systems, policy, and procedures to ensure it issues complete and accurate overpayment notices and processes explanation requests according to policy. SSA agreed with our recommendations.