‘I thought they’d take it back right away’: Social Security windfalls spark confusion — what you need to know

Mixed messaging baffles recipients

Different Social Security reps gave her conflicting explanations about why her account balance had suddenly increased. But things didn’t stop there. As more payments and letters arrived, Miller was told the extra funds were actually overpayments she was owed.

Still, Miller remains baffled by the large amounts showing up in her account. “I don’t understand why you would put that much money in my account,” Miller said.

The Social Security Fairness Act was recently passed and aims to eliminate two rules that cut Social Security benefits for certain retirees: The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reduced benefits for individuals who worked in jobs not covered by Social Security, like many state and local government workers. In addition, the Social Security Fairness Act ensures these workers receive the full Social Security benefits they've earned.

This means that people like Jeff Olds, who received a lump sum payment for his wife, are now eligible for the benefits they missed out on originally.

Olds, a 72-year-old from Brunswick Hills, said after 10 years of normal payments of about $1,600 a month, he received a lump sum of more than $14,000 from Social Security. “I was shocked at first… this never happened before,” he told News 5 Cleveland.

“It’s pretty scary for somebody who doesn’t deal with this every day,” April Roberts, a Social Security expert and CEO of AARIA, told News 5 Cleveland. She noted that lump sum payments will start arriving on March 27. Thereafter, in instances where there was an error, Social Security will recoup legitimate overpayments by withholding 100% of subsequent checks until the balance is repaid.

In some cases, changes to benefits may also follow new income thresholds or changes in the beneficiary's work status. The problem? Social Security has been sending lump sums before recipients receive letters explaining the amounts. This lack of communication can leave people confused about why they received a deposit, or whether it’s even theirs to keep.

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What to do if you spot changes to your Social Security payments

With all the confusion, navigating the changes can be frustrating, so here’s what you can do.

To start, regularly review your statements and make sure your personal information is up-to-date. Set reminders if you need them. If you notice an unexpected deposit from Social Security, call your local office for clarification, but be prepared to wait. “They have access to more detailed information about your specific situation,” Roberts explained.

If you feel that the explanation or payment amount is incorrect, you can file an appeal. If you owe money, you can file a waiver form or arrange a payment plan.

While changes roll out, stay informed and proactive to ensure your Social Security payments are accurate and handled correctly. You can set up alerts to be notified about any new updates to Social Security.

As for Miller, she is still waiting for confirmation letters to explain the lump sum payments in her account. “I think the letters should come before the check to explain that you’re going to be receiving something… for sure, so you don’t have to panic when that much money is placed into your bank account,” she said.