Social Security’s New Approach to Recovering Overpaid Benefits
The Social Security Administration (SSA) has announced a significant change in how it will recover overpaid Social Security benefits, starting March 27. Under the new policy, beneficiaries who receive excess payments will now face a 100 percent withholding of their monthly Social Security benefits to recoup taxpayer funds.
What Does This Mean for Social Security Beneficiaries?
If you’ve been overpaid Social Security benefits after March 27, the SSA will automatically withhold your entire monthly Social Security benefit to recover the excess money. Don’t panic, though – you’re not without options. Beneficiaries who cannot afford the full withholding can:
- Request a lower recovery rate
- appeal the overpayment decision
- Explore alternative repayment strategies
Key Details About Social Security Benefit Recovery
The policy change is expected to recover approximately $7 billion over the next decade. Importantly, this new approach will only apply to new overpayments. Current Social Security beneficiaries with existing overpayments before March 27 will see no changes to their current withholding rates.
What Social Security Officials Are Saying
Lee Dudek, Acting Commissioner of Social Security, emphasized the agency’s responsibility, stating, “We have the significant responsibility to be good stewards of the trust funds for the American people.” The SSA is legally required to seek repayment of any excess Social Security benefits.
Navigating Social Security Benefit Overpayments
If you find yourself affected by this new policy, you have several important steps to take:
- Carefully review your benefit payment notices
- Contact the SSA to understand your specific situation
- Explore all available options for managing the overpayment
For more detailed information about Social Security benefit recovery, visit the SSA website or call 1-800-772-1213 to discuss your specific circumstances and potential solutions.
