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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Angela M.
I have already paid 11000.00 dollars received another letter this one is 8000.00. On March 25 they could not hold my check only 10% percent still no check now we are in April still no check where is the money can anyone out there answer that question? I am a widow thank God I still work. I would be homeless Hello
S.D.
We’re sorry to hear about your situation, Angela. 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.
A.E
I’d rather have ssa collect 100% of my child’s ssi for the overpayments that are really stressfull, than the 10%. Then I’m out of ssa once overpayments are fully paid. As much as I want to get out of ssi, I couldn’t until the overpayments are paid in full! I already asked not to give us monthly ssi payments and just put them all in overpayments instead.
Paul T.
Is this Really SSI and Not Social Security Benefits for Children?
The situation described raises some important questions about the nature of the benefits being received and the circumstances surrounding the overpayment (O/P).
A few key points to consider:
Distinguishing SSI from Social Security Benefits for Children
It is crucial to determine whether the benefits in question are Supplemental Security Income (SSI) or Social Security benefits for children. SSI is a needs-based program for individuals with limited income and resources, while Social Security benefits for children are based on a parent’s work history and earnings.
Implications of an SSI Overpayment
If this is indeed an SSI overpayment, withholding the entirety of the child’s SSI benefit to repay the overpayment could be problematic. SSI is intended to provide for the basic needs of disabled individuals, and depriving the children of these resources could have serious consequences.
Considering Other Household Income
The situation may be more complex if there are other sources of income in the household that the Social Security Administration (SSA) is unaware of. If the family has additional means to support the children, then it may be possible to apply more of the SSI funds towards the overpayment. However, the additional income would also limit the amount of SSI money available to the children and/or that could be applied to the SSI overpayment each month.
Next Steps and Recommendations
Given the potential complexities of the situation, it is advisable to discuss this matter further with SSA. A thorough review of the case, including the nature of the benefits, the household’s financial situation, and the options for addressing the overpayment, would be crucial in determining the best course of action to ensure the well-being of the children.
Tammy N.
Adding the SSA never resolves your issues iwith urgency. They take their sweet time! They are getting their paychecks so why rush? They just working a job. No one cares about the actual recipients.
Tammy N.
Mine were recovered in 2021 and I still haven’t received an explanation. One person says this another that. Nothing in writing.. just a bill demanding 42k. I was terminated during CDR process during pandemic even with CONGRESS mandate to hold insufficient evidence FTC determinations until a person could ACTUALLY comply! A disgrace . I contacted my CONGRESSWOMEN…
Shannon M.
I have an overpayment and I don’t even know what it’s for I never even got a notification that they are going to take it out and it just seems to be getting more and more and more it started out very little and every time I look fun my overpayment status it gets higher and higher and higher so this doesn’t make sense I’ve tried to to dispute it I’ve tried to get it off nobody will get back to me nobody will talk to me and nobody seems to know where it comes from so this is wrong in every way
S.D.
We’re sorry to hear of your experience, Shannon. For your security, we do not have access to private information in this venue. If you believe the overpayment is incorrect, you can ask for an explanation and for options to resolve the overpayment. 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. For more information, check out our Frequently Asked Questions. We hope this is resolved soon.
Miss M.
I paid mine overpayment in full. I even have the letter to prove it. I paid through my tax refunds and monthly payments for some years. Approx 3 years later when I applied for SS I get a call from SS saying I was overpaid and now they are going to garnish my entire SS amount. I’ve now been paying for 2 years and I won’t receive my SS until 2025. How is this for mistreating and stealing from people? This government doesn’t care. They only care about foreign countries and migrants!! That’s who they send our money to!!
Mary C.
The same thing has happened to me. They say I owed them $9,032.00. I’ve paid the money back. Then I get another letter from Social Security saying I owe them $2600. They have withheld $14,000 dollars. They owe me money sent them a message they need to refund my money.
S.D.
We’re sorry to hear about your situation, Mary. 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.
Jay I.
Your are right on the money 💰 & you’re definitely an awoken Patriot !!!
S.D.
We’re sorry to hear about your situation, Miss M. For your security, we do not have access to private information in this venue. Our new policy allows us to collect 10% of your total monthly Social Security benefit to recover most overpayments. To speak with a representative, you can contact your local Social Security office or call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. Your appeal and waiver options are explained in our Overpayments fact sheet. We hope this is resolved soon.
Miss M.
It’s a hot mess, and it really shouldn’t be thus complicated. Why can’t they look at your yearly earnings through a software format. Surely the government could afford a software system that us set up to tell you when your overpaid on my SS page. Where the system would tell you to send in this much $$ by this date. If you failed to send in payments by say 6 months later. The SSA should send you a letter automatically and it would say. “You must call the office to set up a arrangement, or your payment could be lowered or cut off!” But thats what happens when you have people with a lot of degrees and no common sense!
OM
Oh they’ve had that for awhile now. It doesn’t really work if they don’t update your data in a timely manner. Not sure why they think THEIR backlog & understaffing is OUR problem, but it’s easier to kick you off & make you start over than to actually do their jobs. A crap load of papers to return in 2 weeks only to wait 2 yrs to get a denial. REALLY??
John C.
I’m paying on overpayments that where paid from 94 to 2004 doesn’t matter that 5 times I notified them I was working , filed my taxes ect . I had at least 3 back surgeries in that time period total of eight ! I can’t imagine that our government doesn’t consider what’s fair it all goes to what their rules are so because I haven’t been able to retire they take 100 percent at 68 I’m having to take opioids to even function in the morning . I need more surgeries but can’t afford to stop working because they take 100 percent from 30 years ago !! It’s a catch 22 I can’t quit because I don’t get my ss and I can’t keep working for much longer physically ! There lawyers are there to win not do what’s fair or right n my ein was sending it back to social security board that would have started the whole legal process over again .. similar to VA if you make over 39,000 a year you don’t qualify for free medical no matter what they told you to get you to enlist back in the day but still Come on Guys your so close to a respectable n fair policy to fight severe wrongs in previous policy decisions ! I was actually proud to see our SS standing up !
S.D.
We’re sorry to hear about your situation, John. For your security, we do not have access to private information in this venue. Our new policy allows us to collect 10% of your total monthly Social Security benefit to recover most overpayments. To speak with a representative, you can contact your local Social Security office or call 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. Your appeal and waiver options are explained in our Overpayments fact sheet. We hope this is resolved soon.
O.M.
I began working over a year and a half ago, making more than SGA. I’ve been trying to make SS aware of the overpayment, filing forms, calling local and federal offices and reporting wages. I’m paying taxes on the overage and its not an insignificant amount and has become burdensome. On one call to the federal office, a rep threatened to completely cancel my ssdi and told me I would have to pay back an entire 10 years worth of benefits. She claimed SSA doesn’t over pay benefits and if I’m receiving them, they are due to me. Thankfully, I am more educated about this than the rep and am saving all of the money I’m being overpaid but I could see a more naive person being told this and continuing to spend the overpayment. The system is so broken. If you ensure overpayments dont happen in the first place then updates like these become unnecessary.
S.D.
We’re sorry to hear about your situation, O.M. 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 complaint, compliment, or suggestion. We hope this is resolved soon.
CSA
I just waited a significant amount of time to be told that the overpayment had to be made within 36 months. When I quoted what this article stated, which is if your benefits were being withheld at 100% you could call and request 10%, she only restated what she had already said. She instructed me to call my local office. They also couldn’t assist without a form being submitted. We submitted the form two months ago questioning the amount (which is greatly inflated) and another form requesting a payment plan, and they have yet to be processed. No one can help and my husband has no funds for his medication or other expenses. Just the latest frustration in dealing with this agency. I’ve lost so many hours dealing with them in the last year. Multiple phone calls and time on hold both at the National and local level. It takes an average of 10 calls to get anyone willing to help. Ridiculous.
Ms J.
contact your local US Congress person they can help with your issue. They are the ones that govern over Social Security
Michael b.
yea sure they do. like they really give a rusty nail right the people aren’t stupid that people who represent us i dc NOT they don’t care lip service only
S.D.
We’re sorry to hear about your situation, CSA. For your security, we do not have access to private information in this venue. We encourage you to contact your local Social Security office and ask to speak with a supervisor. 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.