I did file and suspend in Dec 2015 and my wife started receiving spousal benefits when she turned 66 in October 2016. Then I did a Start-Stop for 6 months in 2018. SSA kept paying my wife for 20 months in 2019 and 2020 after I’d stopped to wait till I was 70. Now SSA says my wife was overpaid and owes them $10,000. Is this true? Since no one from SSA told me that her spousal benefits would be affected when I asked about doing a Start-Stop, and I didn’t refile when I stopped, I think I should have still been under the File and Suspend and not under the new APRIL 2016 rule when I did the Start-Stop. What do you think? Is there a pertinent CFR paragraph or an applicable court ruling?

Thanks so much,
Dan

Hi Dan. I'm afraid so. It sounds to me like your wife should not have been paid for any months that you suspended your benefits for the second time. Auxiliary (e.g. spousal) benefits can be paid on the the record of a worker who suspended their Social Security retirement benefits prior to April 30 2016, but not when the worker suspended their benefits after April 29 2016.

Once you reinstated your benefits after April 29 2016, you and your wife were no longer grandfathered under the old rules. Therefore, when you suspended your benefits for the second time the new rules applied, and your wife should not have been paid spousal benefits during that period of your benefit suspension. Refer to the note in section B.1. of the following section of Social Security's operations manual.

Your wife could file for waiver (i.e. forgiveness) of the overpayment, but her request would only be approved is she is a) without fault in causing the overpayment, AND b) if she is either financially unable to repay the overpayment or if collection of the overpayment would be considered against equity and good conscience. For an explanation of what is meant by 'against equity and good conscience', refer to the following section of Social Security's operations manual: https://secure.ssa.gov/apps10/poms.nsf/lnx/0202250150.

It sounds like your wife was clearly without fault in causing the overpayment, but I don't have sufficient information to be able to tell you whether or not either of the other conditions would apply.

Best, Jerry