As we’ve covered before, Social Security overpayments have been a problem for years. Those who are overpaid have the burden of paying the money back, even if they were not immediately aware of the error.
In early 2025, the Social Security Administration (SSA) implemented significant changes to its overpayment recovery policy. Initially, the SSA reduced the withholding rate from 100 percent to 10 percent of monthly benefits to ease the financial burden on beneficiaries.
However, in March, the agency reinstated the full 100 percent withholding rate, leading to concerns about the impact on vulnerable recipients. Responding to public criticism, the SSA adjusted the policy again in late April, setting the standard withholding rate at 50 percent of monthly benefits. This change aims to balance the need for recovering overpayments with the financial well-being of beneficiaries.
Beneficiaries have a 90-day period to appeal the overpayment, request a waiver, or negotiate a lower repayment rate based on financial hardship. These policy shifts reflect the SSA’s efforts to address overpayment issues while considering the challenges faced by recipients.
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