Social Security Eliminates Overpayment Burden for Social Security Beneficiaries – Automatic Overpayment Recovery Rate Reduced to 10 Percent
Reading Time: 3 MinutesLast Updated: April 17, 2024
Social Security announced it will decrease the default overpayment withholding rate for Social Security beneficiaries to ten percent (or $10, whichever is greater) from 100 percent, significantly reducing financial hardship on people with overpayments.
“Social Security is taking a critically important step towards our goal of ensuring our overpayment policies are fair, equitable, and do not unduly harm anyone,” said Martin O’Malley, Commissioner of Social Security. “It’s unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment.”
The agency works to pay the right people the right amounts at the right time, and Social Security issues correct payments in most cases. However, there is room to improve, as people count on the agency to prevent overpayments from happening and make it easier to navigate the recovery and waiver processes when they occur.
When a person has been overpaid, the law requires the agency to seek repayment, which can create financial difficulties for beneficiaries. As of March 25, 2024, the agency will collect ten percent (or $10, whichever is greater) of the total monthly Social Security benefit to recover an overpayment, rather than collecting 100 percent as was previous procedure. There will be limited exceptions to this change, such as when an overpayment resulted from fraud.
There will be a short transition period where people will continue to experience the older policy. People placed in 100 percent withholding during this transition period should call Social Security’s National 800 Number at 1-800-772-1213 to lower their withholding rate.
The change applies to new overpayments. If beneficiaries already have an overpayment with a withholding rate greater than ten percent and would like a lower recovery rate, they too should call Social Security at 1-800-772-1213 or their local Social Security office to speak with a representative. If a beneficiary requests a rate lower than ten percent, a representative will approve the request if it allows recovery of the overpayment within 60 months – a recent increase to improve how the agency serves its customers from the previous policy of only 36 months. If the beneficiary’s proposed rate would extend recovery of the overpayment beyond 60 months, the Social Security representative will gather income, resource, and expense information from the beneficiary to make a determination.
Social Security launched a comprehensive review in October 2023 of agency overpayment policies and procedures to address payment accuracy systematically. Learn about Overpayments and Our Process and read our Press Release. This procedure change is a direct result of the ongoing review. This change and the adjustment to 60-month repayment are part of four recently announced key updates to address improper payments. The agency also is working to reduce wage-related improper payments by establishing information exchanges with payroll data providers that will significantly reduce the number of improper payments, once implemented. The agency will continue examining programmatic policy and making regulatory and sub-regulatory changes to improve the overpayment process.
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. Even if people do not want to appeal or request a waiver, they should contact the agency if the planned withholding would cause hardship. Social Security has flexible repayment options, including repayment of as low as $10 per month. Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis.
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Louis f.
I haven’t had a check an 11 months it was stopped for overpayment I’ve called numerous times mailed in documents an still no reply I’ve used all my savings guess I’m homeless after April
Pat
OMG! I’m sorry but I’m right behind you. It’s crazy!
Tammy N.
Same here
Sue
We’re sorry to hear about your situation, Louis. For your security, we do not have access to private information in this venue. We encourage you to contact your local Social Security office. You can ask to speak with a supervisor during your next call or visit. Or you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. You can also submit feedback by visiting our How can we help? webpage. From there, select the “Email Us” link. This will take you to the “Email Our Support Team” form where you can submit a compliment, complaint, or suggestion. For more information, check out our Overpayments fact sheet. We hope this is resolved soon.
OM
Google ‘Can SSA Terminate Benefits for OP”.
Andrea
I just called SS and the lady told me she didn’t know about the program. ???
Sue
We’re sorry to hear about your experience, Andrea. We encourage you to contact your local Social Security office and ask to speak with a supervisor during your next call or visit. Or you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. For more information, check out our Overpayments fact sheet. We hope this is resolved soon.
OM
She’s right, they don’t know. They’re not trained to know, just answer phone & print forms. You have to do your own research & go higher up to see a difference.
Angela M.
So they stop taking the whole check March 25 so for people that get checks the fourth Wednesday of the month why did they keep that check.No one have said anything about that payment.
Ilona G.
This is a disaster! SS keep taking money from
my Social Security! No one helped or looked over this disaster!
They take lots of money for overpayment I don’t know what it is for! not any of that!
people who work at the office I’m sure they have good pay every week.
What a disaster!!!!!!
Phone call long waiting time hours and hours then hanp up! Assiciate very rude all of them!!
Sue
We’re sorry to hear about your situation, Ilona. For your security, we do not have access to private information in this venue. If you haven’t received an explanation of your overpayment, please contact your local Social Security office. You can ask to speak with a supervisor on your next call or visit. For more information about overpayments, check out our Frequently Asked Questions. You can also submit your feedback by visiting our How can we help? webpage. From there, select the “Email Us” link. This will take you to the “Email Our Support Team” form where you can submit a compliment, complaint, or suggestion. We hope this is resolved soon.
Angel P.
I went to the ss office and filled out all the paperwork they wanted to start receiving my ssd checks it’s been two months and nothing I am about to be in the streets soon cause my family can only help so much they close my case cause of over payment I try to go back to work but I am too sick they said they were going to send me my check until a decision was made but still nothing
Diane
Do you have a case manager???…or CAN YOU CALL DISABILITY DIRECT??? Housing authority should be contacted as well maybe. There are programs that you can call if you are in danger of being homeless!!! GOOD LUCK AND GOD BLESS✌🏻❤️
Cory
You guys are the worst you where correcting the amount for a few months then stop then a few years later send a letter saying that you will stop my disability check I came in and handed you paycheck stubs then you lie saying you never got them and then tell me I owe you 23 thousand dollars that I do not have and deny wavers and then lie to congress that I never sent anything in for paychecks and then tell me I over worked my trial period but never sent a single letter stating this this overpayment stuff should be gotten rid of if it was not the person receiving benefits fault I have medical issues and have to pay for this my self I have bigger issues then something you messed up this has cause more stress on my and my body I wish there was a way to talk to someone that actually understands and does what is right. You guys lied to me and stayed I’d be on disability for ever and my medical condition would count for disability I’ve handed in things from my doctor and it must have been thrown away I can’t trust you guys at all.
Sue
We’re sorry to hear about your situation, Angel. For your security, we do not have access to private information in this venue. We encourage you to continue to work with your local Social Security office. You can ask to speak with a supervisor during your next call or visit. We hope this is resolved soon.
FoodDoz
I am glad for the information provided on this blog about social security. Thanks alot. Best regards. https://fooddoz.com
Nancy o.
Iam disabled and ssidi checks are being withheld every month.this was a court ordered overpayment. This has caused serious financial hardship for me.i need to find out why ssidi won’t take out 10%of my check. Ssi told me that I could not have the waiver for the 10%. I did go back to ssi the first lady told me that I could get my check on May 1st.and 10% would be taken out. And then talked to another lady she said I couldn’t get 10% taken out of check. I don’t no what to do.
Sue
We’re sorry to hear about your situation, Nancy. For your security, we do not have access to private information in this venue. Our new policy allows us to collect 10% of the total monthly Social Security benefit to recover an overpayment. However, there are limited exceptions. To determine whether your overpayment is one of the exceptions to the new withholding policy, we encourage you to contact your local Social Security office. You can ask to speak with a supervisor during your next call or visit. We hope this is resolved soon.
Marlene D.
I am seeking in helping my brother reduce his overpayment. I am not his boater but his sister trying to get him money to live on . Right now he is in the cusp of homelessness and does not have enough money to pay any rent. How does one live in $300 a month?
Sharion A.
I am so sorry to hear that. I applied for benefits in New Orleans and was eligible. Katrina hit the stone. I haven’t seen nothing at all. Applied again in San Antonio Texas was refused six time, but I was eligible for benefits in New Orleans, but I never received it in New Orleans I miss San Antonio, I’ve been working ever cents struggling, pushing myself to this date and I still fell in hard trying my best to pay for being homeless. I was already homeless once in year 2022 been working constantly it is hard and I’m still hanging on. I try to find my benefits from when I was eligible in New Orleans. I don’t know what else to do. I’m so sorry for you just now I don’t have nobody to help me, but I pray, everything
Sue
Thanks for reading our blog, Marlene. For your brother’s security, we do not have access to private information in this venue. To lower his overpayment recovery rate, your brother will need to speak with a representative. He can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m., or contact his local Social Security office. To learn more, check out our Frequently Asked Questions.
If your brother needs help managing his benefits, you may want to apply to become his representative payee. For more information, visit our Representative Payee page. We hope this helps.
Michael
Crooks and cheats playing games with our money always coming up with lies and excuses to prevent our benefits
c
true that then one worker says something, then another something else. also so with letters they send , COULD come from Richmond Ca, Austin, ETC. Total cluster tuck
joe
They also play games in Georgetown TX say they will call back they will but prompts you to hit number , but then doesnt respone. Another trick they call and you keep saying hello . no respones
Ripped
They say I have an overpayment and stopped all my checks. I have had a reconsideration that was filed 5/15/23 and still haven’t heard from it. I get a different story with lies every time I go to the office. It plainly states that nothing is withheld during the appeal.
I have had over $12K taken from me and paid 7 Medicare premiums that SS or Medicare will not correct. I paid in $70K in SS taxes while I worked. This is WRONG!
Sue
We’re sorry to hear about your situation. For your security, we do not have access to private information in this venue. We encourage you to continue to work with your local Social Security office. You can ask to speak with a supervisor during your next call or visit. Or you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. You can also submit feedback by visiting our How can we help? webpage. From there, select the “Email Us” link. This will take you to the “Email Our Support Team” form where you can submit a compliment, complaint, or suggestion. For more information, check out our Overpayments fact sheet. We hope this is resolved soon.
David s.
Please reduce my overpayment, to 10%. You are currently withholding my entire retirement benefits, My family has been helping with my bills.
Sue
Thanks for reading our blog, David. For your security, we do not have access to private information in this venue. To lower your overpayment recovery rate, you will need to speak with a representative. You can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m., or contact your local Social Security office. For more information, check out our Frequently Asked Questions. We hope this helps.