Delays At The SSA?

Been out of the loop for a while so thought I should give an update.  There is no update!

Still waiting for my SS benefit to be WEP'd.  Forms were submitted in Aug 2023 via the FBU.  I've emailed the FBU periodically - they say they request an update from the SSA but I never get one.  This is getting silly because I've been overpaid since Sept/Oct 2023.

@1penelope1 - sorry I missed your post.  Did you get sorted?  TBH I can't remember the exact process I went through to get a SSA online account, but it involved a video interview with a person at ID.me where I had to hold up various photo IDs to the camera.

Thanks for the update, but sorry to hear about the lack of progress. I’m certainly not looking forward to a load of similar aggravating delays when I apply for SS later this year.

Thanks for the update, but sorry to hear about the lack of progress. I’m certainly not looking forward to a load of similar aggravating delays when I apply for SS later this year.

It's certainly an exercise in patience.  On the plus side, money arrives like clockwork into my UK bank - no international money transfer required.  FYI, one thing I would do differently is, when the SSA finally approve your benefit, not to have it backdated.  That can result in a fairly large lump sum (depending on how far back they go due to their own delays) and could theoretically bump you into a higher UK tax bracket if you're not careful - especially if you have other sources of income.  You'll get slightly more per month by not backdating but not a large lump sum that can mess up your careful tax planning.  That happened to me.  Admittedly it was only for the first year, but it's worth bearing in mind.

It's certainly an exercise in patience.  On the plus side, money arrives like clockwork into my UK bank - no international money transfer required.  FYI, one thing I would do differently is, when the SSA finally approve your benefit, not to have it backdated.  That can result in a fairly large lump sum (depending on how far back they go due to their own delays) and could theoretically bump you into a higher UK tax bracket if you're not careful - especially if you have other sources of income.  You'll get slightly more per month by not backdating but not a large lump sum that can mess up your careful tax planning.  That happened to me.  Admittedly it was only for the first year, but it's worth bearing in mind.

Good advice, thanks.

Just reverting back to the original topic and my own experience of dealing with SS in a local SS office in Santa Fe New Mexico vs SS in Baltimore vs the FBU in London.

When preparing for my future retirement benefit application for my SS back in 2017 I reviewed my Social Security earnings record (at the time I had 9 years of income from 1986 to 1994) and I noted that there was an error in 1993 whereby my earnings were significantly under recorded - although my Federal Tax Return recorded the correct amount.

I did some work in New Mexico back in 2017 (so that I could get to the magical 40 SS credits) and while I was there visited the local SS office to try and resolve it - a total waste of time - they weren't interested and said to wait until I apply for retirement benefits.

I followed up with multiple letters to the international unit in Baltimore - and drew a total blank - never even received an acknowledgement. As it was so long ago that the error occured, I thought I may be time barred and that it was just too difficult for them - but it was their error and not mine.

Finally, when applying for benefits with the FBU in London a couple of years ago I asked them if they could help  - they were super helpful - I was able to supply them with my W-2's from 1993 and my federal tax return from the same year (what an anorak I am, I know for keeping them  ) - FBU resolved it within just a few days and my earnings record was corrected - it made a difference (with my wife's pension also) of circa $45 per month - not to be sniffed at for all the aggravation.
   

Now nine months since I submitted my forms.  I would hope that when they finally catch up they'll recover the overpayment by reducing my benefit (as well as reducing due to WEP) rather than asking for a lump sum repayment.  That would be unfair because I've already paid UK tax on that overpayment.

Now nine months since I submitted my forms.  I would hope that when they finally catch up they'll recover the overpayment by reducing my benefit (as well as reducing due to WEP) rather than asking for a lump sum repayment.  That would be unfair because I've already paid UK tax on that overpayment.

Although paying an overpayment amount as a lump sum would reduce your current year UK tax liability - depends on your own circumstances and what your top rate of UK tax is. I think you could also contemplate re-opening an earlier year UK self assessment return (done online with HMRC) and claiming UK tax back that way .

Although paying an overpayment amount as a lump sum would reduce your current year UK tax liability - depends on your own circumstances and what your top rate of UK tax is. I think you could also contemplate re-opening an earlier year UK self assessment return (done online with HMRC) and claiming UK tax back that way .

Thanks.  I wasn't aware that you could amend previous years' SA.

Now nine months since I submitted my forms.  I would hope that when they finally catch up they'll recover the overpayment by reducing my benefit (as well as reducing due to WEP) rather than asking for a lump sum repayment.  That would be unfair because I've already paid UK tax on that overpayment.

From my experience, this is correct (they will reduce payments until everything catches up). This happened to me when SSA erroneously started WEP-ing my US SSA pension at age 65, on the assumption that I was receiving UK state pension. (On a side note, in conversations with FBU, they said that SSA "keep doing that" with UK citizens even though they know that UK state pension no longer starts at age 65.

Anyway, to your point above, they didn't start WEP-ing until halfway through the year (at about age 65.5), and at that point they paid reduced US SSA at first, and then zero US SSA for a few months. I was not asked to repay a lump sum.

After much hoo-ha and inconvenience, I managed to get them to correct the error, and received a lump sum repayment. By that time, I was just about to turn age 66 - when I *should* have started being WEP'ed. Now, almost 16 months on, I'm still receiving full US-SSA and fruitlessly trying to get the WEP process re-started. When they finally get their fingers out, I'm assuming I'll simply receive zero payments for several months, until everything catches up.

Finally, finally, finally ... having reported my about-to-start UK state pension to the SSA in August last year (2023), I have today received a letter outlining the reduction in my retirement benefit due to WEP.  It's taken a horrendously long time - 2 weeks short of a year.  It also states the amount I've been overpaid - best part of $4K.

I was fully expecting the reduction, obviously.  But what's really surprised me is that they want the overpayment repaid in one go.  Don't get me wrong, I have enough funds to cover the repayment.  The complicating part is that they want the payment by cheque (check) or money order.

I have a US bank account that I use for receiving withdrawals from my IRA and somewhere I think I still have a cheque book but it's been years since I used it and god knows if they still work.  Unfortunately, there's not enough money in that account to cover the cheque - so I'd either have to deposit funds there (by Wise or something) or withdraw from my IRA (but that would be a "taxable event").

A couple of questions:
1.  I have reported the "overpayment" as part of my income for 2023-24 ... hang on, no I haven't yet as I haven't submitted my self-assessment for last tax year yet.  So hopefully I can adjust the income.  Or should I report the 2023-24 income as received, but adjust the 2024-25 income to account for repayment?  Any idea?
2.  More importantly at the moment, if I were to pay by money order, anyone know where one gets a USD money order in the UK.  I've seen mention online that banks (I've seen NatWest, Halifax and Santander mentioned) will give you one for a fee.  I've also seen it mentioned that in the UK they're known as a bank draft or banker's draft.  Anyone have any experience with this?

I'm somewhat annoyed by this, to say the least, because it's a problem that the SSA have created for me, despite my best efforts to report my UK pension in plenty of time and chasing up the FBU for at least the last 6 months.  Grrrrrrrrr.

Update:
Halifax don't do USD banker's drafts
NatWest don't do USD banker's drafts

Wow, it took them long enough but at least they got there.

Given that you haven't done a tax return yet I would simply report what you received minus the adjustment rather than wait until next year.

As to paying them, if it was me I do still have the check book for my US bank account and would do a Wise transfer there and write them a check. In 2018 the US Embassy in London were only accepting cashier checks in USD for a passport renewal, wouldn't even take a check drawn on a US bank.  I did get my US bank to send me a cashier check which I then enclosed with my application.  Maybe your US bank could do similar, after you make a Wise deposit to cover it.

I've read some horror stories about people trying to renew passports and visas at the US Embassy and them not accepting personal checks.  At least this letter said check or money order so sounds like a check from my US bank would work.

Reading the letter in more detail, it does say that if they haven't received the repayment in 30 days, they will withhold 10% form future payments starting in November until they've recovered the total.  That seems like a fair way to do it to me, so I don't know why they don't suggest that as the preferred option.  In fact I'd prefer them to pay me nothing for the next few months and recoup it that way.

I have US friends and sort-of family, so at a push I could try and enlist their help.

So, my realistic options seem to be :
1.  Don't repay and let them recoup the money over 10 months starting November
2.  Send money to my US bank and write them a check
3.  Enlist friends
4.  Try and find a bank that'll do a banker's draft

At the moment, I'm thinking it's a toss-up between 1 and 2.

They don't make it easy, do they.

I've read some horror stories about people trying to renew passports and visas at the US Embassy and them not accepting personal checks.  At least this letter said check or money order so sounds like a check from my US bank would work.

Reading the letter in more detail, it does say that if they haven't received the repayment in 30 days, they will withhold 10% form future payments starting in November until they've recovered the total.  That seems like a fair way to do it to me, so I don't know why they don't suggest that as the preferred option.  In fact I'd prefer them to pay me nothing for the next few months and recoup it that way.

I have US friends and sort-of family, so at a push I could try and enlist their help.

So, my realistic options seem to be :
1.  Don't repay and let them recoup the money over 10 months starting November
2.  Send money to my US bank and write them a check
3.  Enlist friends
4.  Try and find a bank that'll do a banker's draft

At the moment, I'm thinking it's a toss-up between 1 and 2.

They don't make it easy, do they.

I think I would let them withhold the money over the next 10 months. Keeps it simple.

I am minded to adopt the "do nothing" approach and let them recover overpayment 10% at a time.  It's nuts though - I'd be more than happy to let them not pay me anything for 3 months and that would cover it.  There would be a nagging doubt that they'd fail to restart payments however!

At the risk of catastrophising, and being slightly morbid, I do wonder what will happen when I die.  Obviously the SSA or FBU would need to be informed, but on current form it would take them a long time to react - so I could imagine an overpayment in that scenario.  The account into which I receive payments is joint with my wife, so that account would still be open to receive payments.  If it was closed by the bank, at least the payments would fail and then there'd be no overpayment.  Maybe a life lesson is not to have SSA payments into a joint account - a bit late now though.

So, I envisage it being a nightmare.  There would be no way for the SSA to recover overpayment from future payments, so the cheque/money order route would be the only option.  Money orders seem impossible.  Cheques are not straightforward either - and if you didn't have a US bank account you'd be snookered.

The SSA, and the USA in general, really are behind the times when it comes to banking.  It doesn't half make it difficult at times.

Interesting speculation on what happens when one dies. My SS goes into our joint UK bank account. Since we both will be receiving SS my wife’s SS should be boosted since her SS benefits are a lot lower than mine so she definitely needs to inform them of my death. My name will obviously be taken off our bank account so I don’t know if that will cause the automatic monthly payments to fail, but probably not.