Social Security to Reinstate Overpayment Recovery Rate
Reading Time: 2 MinutesLast Updated: March 7, 2025
The Social Security Administration (SSA) announced it will increase the default overpayment withholding rate for Social Security beneficiaries to 100 percent of a person’s monthly benefit. The Office of the Chief Actuary estimates this change will result in an increase in overpayment recoveries (i.e., a program savings) of about $7 billion in the next decade.
“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, Acting Commissioner of Social Security. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”
The agency strives to pay the right person the right amount at the right time, and issues correct payments to most beneficiaries. When an overpayment does occur, the agency is required by law to seek repayment.
As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.
People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. If someone cannot afford full recovery of their overpayment, they can contact Social Security at 1-800-772-1213 or their local office to request a lower rate of recovery.
Additionally, people have the right to appeal the overpayment decision or the amount. They can ask Social Security to waive collection of the overpayment, if they believe it was not their fault and can’t afford to pay it back. The agency does not pursue recoveries while an initial appeal or waiver is pending.
For more information about overpayments and appeal rights, visit www.ssa.gov.
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Beverly P.
I’m not understanding how this works or how it affects my SS. I do not draw from SS yet.
Tony
SSA beneficiaries with new overpayment are screwed now due to the majority voting Republican. DOGE is coming for their overpayment, cutting Medicaid and food stamps.
DOGE is going to add the $7 billion savings to their total savings.
Cartry M.
Trump not going stop until he has half of America hating him. First of all there wasn’t anyone worry about senior who having worked all their life and now a wealthy president come along worrying about the wrong things.
Susan L.
SSA’s decision today to increase the overpayment recovery rate to 100% will harm vulnerable people and potentially lead to their homelessness and a cascade of other negative outcomes. As a recently retired employee of a non-profit whose responsibility was assisting extremely-low income elderly and disabled people, I helped two of them with responding to SSA/SSI overpayment notices that explained upcoming repayment actions that would occur. One was an elderly citizen who had limited understanding due to effects of a CVA/ “stroke” and ESL. He had no other financial resources. I spent many hours speaking with out-of-state and other family members to gain information and assist with translation. I was able to help him obtain receipts and together we were able to complete required paperwork to avoid the overpayment of approximately $1200. The gentleman required much reassurance over the course of months that he would not lose his apartment. He would frequently appear in my office frantic and tearful and due to the language barrier and effects of his stroke it was difficult to calm him- this took hours of my time and I felt terrible for the anguish he was in. The other person was a Black woman in her 80’s and the SSA letter referred to an action occurring more than 30 years earlier of which she had no knowledge/ recollection. She had no other income or financial resources. The action would have left her with very little or no income (I don’t recall exact details). I was able to obtain legal assistance for her. In my experience some people receive an overpayment without knowingly committing any fraud. 100% recovery is an unnecessary and cruel action. Why not tax very wealthy people and corporations and collect much higher savings for the federal government instead of collecting these much smaller savings (at high cost in other services down the line addressing increased mental and physical illness and hospitalization, homelessness, food insecurity…on the backs of poor people who depend on monthly benefits they have earned/ and/ or are legally entitled to?
Kathy P.
Can you explain how it saves 7 billion if it’s money that will ultimately be paid anyway? And on the backs of struggling Americans (the people you serve)?
I know several people who, in order to keep a roof over their head, must work a job in addition to drawing social security. In order to keep their job they had to work more hours than allowed, knowing they would have to repay.
Seems you are so convinced there are bad people out there fleecing us that you overlook the majority who are just trying to survive.
I’m ashamed of my government today.
Ernest R.
What about instances where Social Security took money FROM my benefit, to cover supposed “short payments” from the past, when Social Security takes out their own payments, automatically, so there cannot be any “short payments” ???
Tim W.
As someone who had to deal with an SSI for my son due to covid funds and the bank not filling out for 4641 correctly, I worry.
As both a systems analyst and accountant I was able to advocate for my son and get the errors corrected.
This announcement could be very bad for anyone that lacks good advocacy, and I haven’t seen much out there.
Bruce W.
How does one find out if they have been issued an overpayment?
Vee
This is my question too. How long does the overpayment continue before it’s audited?
John C.
This will take away payments from people who need it. I dont understand this decision.
Gene
99,9% of the overpayments are people who don’t pay FICA and try and cheat America by hiding their non-covered pension and double dipping. True traitors to America. They need to pay FICA like Americans do.
Irma C.
Gene. I don’t agree with your figure of 99.9 % and your assumption it’s people trying to cheat America . Most people with overpayment are people who made more that the allowed earnings prior to full retirement age. Some of these people were essential employees during Covid and couldn’t cut their hours because they would be terminated from their job. Some people are just trying to survive.
Ssasucks
How many times are you going to copy and paste this ignorant post?
X
Can you get disability benefits for ketamine addiction?
Gene
No. Drug addiction is not a disability. Just stop doing the drug.