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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SSA S.
This is absolutely ridiculous. I pathic policy designed to purposely harm the beneficiary. They have time to come up with these crazy policies and get them implemented almost immediately but waits years on end to make a disability decision, usually a denial. How would they feel if I created a policy to freeze up their income sources for months, maybe years? Whoever came up and approved this policy needs to be investigated as this certainly can’t be within the law.
Deandra Y.
What happened to the class action lawsuit? It has not been settled yet and also the overpayments comes from no accuracy of the employees They distribute the money any ways not going to worry about this It’s the employees fault for not accounting as well as they should AMERIKKKA is getting worse !
Arminian
Will figures be posted as to how this policy will save 7 billion dollars in the next decade? Really does not explain much! More details please!
Ellen O.
I, too, believe that government should be forced to repay any and all it has “borrowed” from Social Security. All recipients have been paying into our accounts throughout our work lifetimes. It is, indeed, “OUR MONEY!”
It is essential that this system remain intact. No one, #47, musk, nor any other entity has the right to usurp it.
Taryn
I hope that you have checks in place for the identity theft payouts.
Tyk
I forsee this being a huge problem. Most people can’t afford to go with no money until it’s repaid. Also this is usually SSA fault and the person doesn’t even know they were overpaid until notified.
Rick P.
Social security is only a part of money that we paid in to. We also pay Federal taxes, which the Government spends freely and wastes a lot of money. It seems to me people should know when a person dies, they are no longer entitled to those persons benefits.
If the system makes a mistake and the person is not aware, they should not be liable. The system should have checks and Balances to catch these mistakes, this is the computer age after all. We should program something to catch payments made to people that are 100 years old and have died.
All that equipment they left for the Taliban when we pulled out of Afghanistan, is the government paying that back to the people. All the money we spent in defense of Afghanistan and Ukraine all wasted. We should be getting free health care, free tuition, lower taxes and more.
Greg S.
This should be the same treatment Congress gets for raiding the Social Security funds for their own use: no pay until every IOU they put in the piggy bank in has been repaid!
Dee O.
There is no reason going forward that an overpayment should be made without a fraudulent claim .
Julie h.
The SS income is extremely low to begin with. We are not allowed to have more than 2,000. In savings. Not that anyone trying to survive on Disability would be able to save money in the first place. Withholding 100% is completely inhumane. We will loose housing , medications, food, and have no where to go . Please let the Adults back in the Jobs they held to make these decisions!
Bill
There is no limit on the amount of savings you can have when drawing Social Security (SS). Medicaid is what limits what you can have in savings since you are having Medicaid pay your medical bills and usually nursing home care costs.