The Social Security Administration (SSA) is set to start withholding up to 50% of monthly benefits from some recipients beginning in July. This move is part of the agency’s effort to recoup overpayments made to beneficiaries in recent years. Overpayments can happen when a beneficiary’s income changes and they fail to report it, or when the SSA miscalculates benefit amounts.
By law, the SSA is required to recover these funds. Between 2015 and 2022, the SSA made nearly $72 billion in improper payments, primarily overpayments. As of September 2023, the agency still had $23 billion in uncollected overpayments.
In March, the SSA announced plans to withhold 100% of benefits until overpayments were recovered. After pushback, they lowered the rate to 50% in April.
Social Security plans repayment strategy
The new policy will take effect on payments starting around July 24. Beneficiaries who have been overpaid should have received a notice from the SSA in April. Those affected have options.
They can repay the full amount online, by check, or request a payment plan. If the overpayment wasn’t their fault or if repaying would cause financial hardship, they can request a waiver. Innocent people can be badly hurt,” said former Social Security chief Martin O’Malley, stressing the impact of aggressive repayment plans.
For more information or to request a waiver, beneficiaries can visit the SSA’s official website or contact their local office. The SSA’s help line is also available at 1-800-772-1213.
