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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Tj
God bless America and our administration which is doing their best to make America Great again!
Ron F.
It’s about time all the waste and fraud has been gotten eliminated within all of our government.
Ski
Why are there overpayments to begin with? And why are some not having to pay their overpayment back? No wonder SS is going broke! If people ran companies the way our govt has been run, they would be out of business! I you are a company and overpay an employee or a vendor, you immediately take it off the next payment!
John S.
How cruel can you be? Making a mistake, then taking all of a person’s check is punitive and unnecessary. Also, keep Musk’s hands off our personal information!
Addie B.
I received a letter from SS stating I owed them for months of overpayment. Stating, 100% of the amount SS overpaid would be taken out of my check retroactively from January 1. My notification letter informing me of this arrived one day before my check was deposited and it was hundreds of dollars less! I am one of the citizens who deserve to be treated with respect that we hear so much about lately.
Thank you for your valuable time.
Kat
We are going to see so many more homeless elderly people than ever. These repayments will devastate communities.
Nancy
I’m glad we have a president that is watching out for our Social Security system. When my husband died, I called the Social Security office. I knew that I was not supposed to get the benefits after his death so it was obvious I should just hang onto the money until we could get it straightened out. Those who collected their spouses money after they died knew better and should pay it back at 100%. Also anyone receiving payments knows whether or not they are eligible, shame on them for spending it.
Denise
Please help explain why deleting the cap on social security is a problem to accomplish. Would this help find the money you are looking for to leave the average retired American in peace ?
Elizabeth K.
That is how the government works in all sectors. They make the mistake of overpayment and then you pay it back. There is no forgiveness for you because it’s not your mistake. We aren’t their mercy and even if you appeal you will lose it stated that it is a federal law that they “must” get the money back asap. I don’t blame Trump I blame the idiots making the mistakes!
Barb S.
If the government would pay back the money they took we wouldn’t have an issue with the funding for those receiving it. They call it borrow but they never paid it back. The government wants our money because it is the biggest liquid part of our budget.