Social Security Alerts, News & Updates
Social Security’s $7B Recovery Plan: 100% Benefit Withholding
Social Security Announces Major Change to Overpayment Recovery Policy
The Social Security Administration (SSA) is taking a significant step to protect taxpayer funds by reinstating a full recovery approach for Social Security benefit overpayments. Starting March 27, the agency will increase the default withholding rate to 100 percent of a beneficiary’s monthly benefit, a move expected to save approximately $7 billion over the next decade.
What This Means for Social Security Recipients
Lee Dudek, Acting Commissioner of Social Security, emphasized the agency’s commitment to responsible fund management. “We have a critical responsibility to safeguard taxpayer resources,” Dudek explained. This policy change returns to the approach used during the Obama and early Trump administrations, focusing on Social Security benefit administration.
Understanding the New Overpayment Recovery Policy
The SSA will begin mailing notices about the new 100 percent withholding rate on March 27. Here’s what Social Security beneficiaries need to know:
- The change applies only to new Social Security benefit overpayments
- Current beneficiaries with existing overpayments before March 27 will see no changes
- Supplemental Security Income (SSI) overpayment rates remain at 10 percent
Navigating Social Security Overpayment Recovery
If you’re automatically placed in full recovery after March 27, don’t panic. The SSA provides options for those experiencing financial hardship:
- Contact Social Security at 1-800-772-1213 to discuss your specific situation
- Request a lower recovery rate if you cannot afford full repayment
- You have the right to appeal the overpayment decision
Protecting Your Rights in the Social Security Overpayment Process
The agency understands that mistakes happen. If you believe an overpayment isn’t your fault or you can’t afford repayment, you can:
- Request a waiver of collection
- File an initial appeal
- The SSA will not pursue recoveries while your appeal is pending
For more detailed information about Social Security overpayment policies and your rights, visit www.ssa.gov.