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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denise t.
how would you know if u r overpaid?
C.B.
Hi, Denise. Thanks for reading our blog and for your question. You’ll know if you’ve been overpaid by Social Security if you receive a letter in the mail from the Social Security Administration (SSA) stating that you received more money than you should have, along with the reason for the overpayment and repayment options. We hope this information is helpful.
Phyllis K.
thanks for this information
Elsie S.
Confusing
Tim
What happens when I MADE AN OVERPAYMENT, not received one ?
Gene
Question;
What are the causes that create over payments?
Tanya M.
Does this mean that they are doing away with the 10% from the overpayment if you’ve been having that taken out for the past year?
Joe
No.. Just new cases after March 27
C.B.
Hi, Tanya. Thanks for reading our blog. 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. We hope this helps.
John A.
From what I read this will only apply to future overpayment recapture. If there is a repayment plan already in place, that will not change.
Gene
99.9% of the overpayments are due to WEP and GPO. The unions tell their members not to report pension income. Traitors to America. WEP and GPO should be reinstated.
Laurie
That’s a lie! Unions do not tell members, “not to report pension income.”
Denver M.
This is cruel you could destroy someone financially when it’s not even their fault.
Donna M.
This is so wrong and unbelievable. After proudly working for SSA for 40 years, it is unconscionable that this administration can destroy what has been our paid-for security. SSA has been an insurance like no other. Helpful programs designed for not only the retired but the disabled and survivors as well. Everyone should scream out and protect what took many people many years to build. There is no insurance or protection in the world as our Social Security Administration. This is a calculated disgrace that will affect everyone of us and our families!
ROBERTA
HOW CAN SS PAY AN OVER PAYMENT WHEN THE PERSON PAID IN THEIR OWN MONEY FOR YEARS AND THAT MONEY WAS PAID INTEREST. THAT PERSON OWNS THE MONEY AND IN 30 YRS. THEY WOULD BE MILLIONAIRES. YET GOVT. TELLS THEM THEY CAN ONLY HAVE A SMALL AMOUNT A MONTH AND EVEN TURN AROUND AND SAY THEY ARE OVER PAID.
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.
Jason
Stfu up dude with your copy pasting that same stupid comment .
Kay
It is suggested that SSA make it easier for Beneficiaries to report work earnings by telling everyone to report monthly. Claims Reps tell Beneficiaries earning below SGA that they don’t need to report. Just fill out the Work Review. By then there could be an enormous overpayment.