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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Linda R.
I am a civil service offset retiree. It was reduced when I started receiving Social Security. Will it be restored under the 2025 changes?
Tracy t.
I have been a beneficiary for the last 35 years I have not received one of my beneficiary checks y’all been given to somebody else and y’all know your answer and question about it it’ll tell me if something else but now it wouldn’t come out there it is so it needs to be paid back and forth
Kenny D.
I have been collecting SS since January of 2011. Payments have always been the same each month (no overpayment). COLA increase each year was calculated correctly. Is this the first time SSA has done an overpayment audit of all its recipients?
ken S.
I beleive the Goverment should also research the early disability payments. I hear that some people are collecting pensions with insurance and taking cash while being able bodied. I have heard there are others that collect SS early and hide earnings under anothers (relatives or spouses) name or payroll.
concerned taxpayer.
Doris
Instead of overpayment why would an 81 ye only recieve half their benefit cutting their benefit in half.They barely get by to begin with so now they are in trouble for sure.
JlS
Why reverse your policy of 10% rate of payment unless you are trying to hurt those impacted? When Social Security made the mistake they should allow for a rate of payment that does no harm to the recipient.
Denise F.
I didn’t hear anything about this on the news. Clarify what this means from people who rely on Social Security for their only income including people on disability, retired people.
Shar M.
Correct!
Aaron h.
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Cathy N.
1% correct. Why should seniors suffer for the Government making stupid errors?
Meta m.
Some people will lose their housing. It will be difficult to appeal because employees are getting laid off. I am not sure how this will affect ssi beneficiaries who live in nursing homes.
Kahlia N.
I was just coming here to say this, I’m so disheartened by this news. my agency assists with the unhoused or at risk population, and I’m a SOAR Coordinator helping eligible individuals recieve their benefits for SSI/SSDI…not all my claimants want case management, so after an approval they have no one…if this happens they may lose their housing or transportation.
Michael W.
They take every thing you can call you’re own, at least it’s just all of your assets and of course the wealthy people who have keep on getting,, while I don’t have a chance.
Theresa
Why is it that the People’s money that is entrusted and guaranteed for people when they need it. It is our money. How about the government repay Social
Security first?
Terry
Is this just going back to the old overpayment recovery default? So if the overpayment was less than the benefit amount, the difference will still be paid? For example, if the overpayment was $1000 and the monthly benefit is $2000, the net benefit paid the next month will be $1000 and then it will go back to $2000?
Tammie
Question the 10percent was so that those with over payments could still pay their rent. At 100% they won’t be able to pay rent. While I agree over payment needs to be repaid, let’s not leave the person unable to even eat or pay rent. And frankly what little money they get isn’t enough to do both