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The numbers below present the estimated effects on OASDI overpayment collections of a regulatory proposal to increase the minimum monthly benefit withholding from $10 to 10 percent of the benefit payable for the month. Debtors could still pay less if the negotiated amount would allow for repayment of the debt in 36 months.

Under the proposed regulation, we estimate that previously negotiated withholding schedules would remain in place. For fiscal years 2013 through 2017, we estimate an increase in overpayment collections of $137 million; and for fiscal years 2013 through 2022, we estimate an increase in overpayment collections of $644 million.

Statement of Need:

We propose to change the minimum monthly withholding amount for recovery of title II benefit overpayments to reflect the increase in the average monthly title II benefit since we established the current minimum of $10 in 1960. By changing this amount from $10 to 10 percent of the monthly benefit payable, we would recover overpayments more effectively and better fulfill our stewardship obligations to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund.

Summary of the Legal Basis:

42 U.S.C. 902(a)(5)

Alternatives:

None

Anticipated Costs and Benefits:

The numbers below present the estimated effects on OASDI overpayment collections of a regulatory proposal to increase the minimum monthly benefit withholding from $10 to 10 percent of the benefit payable for the month. Debtors could still pay less if the negotiated amount would allow for repayment of the debt in 36 months.

The estimate is based on the historical record of overpayment collections over the period January 2002 to December 2011, prepared for us by the Office of Quality Performance. We used this file of individual-level data to compute what the collections would have been had the 10-percent minimum been put in place at the beginning of this period. We used the same record to ascertain the growth in incurred debt over time, which we then projected to the fiscal year 2013-22 period.

The proposal is effective for partial-withholding agreements, negotiated after the effective date of the change assumed to be July 1, 2013. Under the proposed regulation, withholding schedules negotiated before that date would remain in place. For fiscal years 2013 through 2017, we estimate an increase in overpayment collections of $137 million; and for fiscal years 2013 through 2022 we estimate an increase in overpayment collections of $644 million.

Risks:

None