(a) General. As used in this subpart, the term ``overpayment''
includes:
(1) Payment where no amount is payable under this part;
(2) Payment in excess of the amount payable under this part;
(3) A payment under this part which has not been reduced by the
amounts required by the Act (see Sec. 725.533);
(4) A payment under this part made to a resident of a State whose
residents are not entitled to benefits (see Secs. 725.402 and 725.403);
(5) Payment resulting from failure to terminate benefits to an
individual no longer entitled thereto;
(6) Duplicate benefits paid to a claimant on account of concurrent
eligibility under this part and parts 410 or 727 (see Sec. 725.4(d)) of
this title or as provided in Sec. 725.309.
(b) Overpaid beneficiary is living. If the beneficiary to whom an
overpayment was made is living at the time of a determination of such
overpayment, is entitled to benefits at the time of the overpayment, or
at any time thereafter becomes so entitled, no benefit for any month is
payable to such individual, except as provided in paragraph (c) of this
section, until an amount equal to the amount of the overpayment has
been withheld or refunded.
(c) Adjustment by withholding part of a monthly benefit. Adjustment
under paragraph (b) of this section may be effected by withholding a
part of the monthly benefit payable to a beneficiary where it is
determined that:
(1) Withholding the full amount each month would deprive the
beneficiary of income required for ordinary and necessary living
expenses;
(2) The overpayment was not caused by the beneficiary's
intentionally false statement or representation, or willful concealment
of, or deliberate failure to furnish, material information; and
(3) Recoupment can be effected in an amount of not less than $ 10 a
month and at a rate which would not unreasonably extend the period of
adjustment.
(d) Overpaid beneficiary dies before adjustment. If an overpaid
beneficiary dies before adjustment is completed under the provisions of
paragraph (b) of this section, recovery of the overpayment shall be
effected through repayment by the estate of the deceased overpaid
beneficiary, or by withholding of amounts due the estate of such
deceased beneficiary, or both.
