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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Cheryl
May God have mercy on your souls! This is going to hurt so many of our elderly and disabled.
Haley W.
That sounds about right. YOU make an error (probably due to cutting so many SSA workers that there’s no way everything can get calculated correctly) then when you discover the mistake you punish some poor recipient who can barely pay their bills with pulling an entire check away from them. Cost savings likely comes from people dying so you don’t have to pay them even close to what they paid into the system. This has the orange Tues and the rocket exploder written all over it. Way to take care of people who have paid into the system and worked all their lives.
Michael B.
Social security will actively cause the death of elderly people who cannot afford repayment. Social security will actively cause more Americans to fall into poverty.
Omega M.
Thank you for removing the Trump/Musk assault on America! Please continue to safeguard Americans from the Felon and the Nazi, who are doing their best to destroy our government and our democracy!
mary a.
We read about the Fairness Act but have no idea when we will get actual numbers. With so many employees being fired, any idea when we will hear? Or in fact, get retroactive payment from 2023 as well as current payments.
And will we have to pay income tax on those amounts? Refigure our income tax for the missing years?
Edlib
Social Security already goes after overpayments. They have for decades.
Carolyn C.
Why have I received a social security deposit in my banking account (this is not monthly deposit I am referring to).
john s.
so maybe they are doing the right thing but do it correctly done abuse it and chose the wrong accounts to do this
Katherine W.
I reported a one time payment that I recieved for $20. Somehow that change was entered incorrectly at $20 a month, and I was charged for an overpayment. b)$94 a month was held out of my SSI Disability amount for one year. I requested a waiver, and a reconsiderateion in the first place in February of 2024, the month same month that the payments began being taken out. I discovered later that I had mistaking reported the $20 wrong in the first place, it was actually a loss of -.05 cents.
Now I have paid this money back , and I tried calling asking for a waiver, and was told they could not do that over the phone.
So now I am mailing in the forms again to see if I can get my money returned to me?
Dee
Good luck on that. I’ve been fighting with them since the mid 90’s and keep getting denied
Jennifer J.
This is a terrible decision. It is absolutely against the equity and good conscience of this federal assistance program and those who need and receive Social Security benefits. The continued disability eligibility rules lack of clarity, the delay in processing work activity development decisions for those who properly report wages and expenses on time, and the even longer delay of disability determinations made by Disability Determination Services are some of the biggest reasons why overpayments even happen in the first place. Before fault is thrust onto beneficiaries of Social Security and more unnecessary paperwork is added to the already overwhelmed federal workers who prop this agency up, I urge those with the power to make decisions and update policy to reconsider this policy change. You cannot collect a debt when the debtor has nothing left, and that is exactly what you are doing when you take away the (sometimes only) lifeline many folks on disability insurance or retirement benefits rely on each month.
Katherine A.
This is so true. I can barely pay my bills and I have $2.00 left after paying what I could. Last month they said I still owed .02 cents. yes they held that from my check. I worked and paid in for many years. I didnt ask for someone to bring in diseases from foreign countries and give it to me. I appreciate you taking responsibility for Americans money, that is a good thing, sometimes it is the way things are done that is disappointing.
ir is nice to be informed though.