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 H.
Update I went to my local office asked to speak to a supervisor as you suggested. I was told that they were all in a meeting so I waited. The agent that I was speaking to knew nothing about the Covid Wavier. It just goes to show how they aren’t being trained. An assistant manager came and told me that there were mistakes made but she couldn’t talk to me and I have to go before an administrative law judge.
I had to make a payment arrangement so I could keep my check. If this is how the rest of our government works we are in trouble.
Anne M.
If you owe an overpayment do they take your entire backpay my case was a reconsideration lawyer will be paid $7,200.00 do 10% ally to backpay also? Thank you
drivera
We received a notice of overpayment. We then saw the blog post from SSA regarding 100% withholdings and those who were having 100% withheld, to call the phone number to request the 10% option. I have called the 1-800-772-1213 multiple times a day on different days, at different times each day. Each time, it is more than a 2 hour wait to get someone on the phone. Then, when someone finally picks up, they abruptly hang up. I was eventually able to get someone on the phone (after a 3 hour wait) who didn’t hang up immediately. Instead, they asked for some information, asked me to hold, then hung up on me.
So, whoever is monitoring these comments…what would you do? Do I really have to travel to my local office in person and wait in line there for multiple hours just to get someone to not terminate the call, in order to request the 10% withholding rate? There has to be an easier way. I can’t imagine if it was anyone at the SSA’s parents, they wouldn’t immediately be able to help and get it processed.
KenC
drivera,
I have had more success calling the local Social Security field office directly. I don’t usually have to wait more than 15 minutes on hold. You can try and see if that helps.
Jenifer D.
I tried calling about my benefits being 100% withheld as well and to request they only take 10% as per the new policy. The representative abruptly told me she knows all about the new policy and that it does not apply to my overpayment. I asked more questions to try to understand the situation and due to this she raised her voice at me and said “what do you want from me ma’am” and told me I was being argumentative and continued calling me argumentative each time I asked a question.
I can’t tell you how many times I have contacted SSA over the years ive been on it and been in their office. I’ve always been treated rudely, blamed, yelled at or hung up on. I still have yet to be helped by a representative. The usual response i get is “i don’t know how to help you!” or have been given entirely wrong or contradictory information.
Its all very frustrating and hurtful to be accused and blamed for “being/doing wrong” when your trying to do your due diligence as a beneficiary and gain no empathy, care, or clear cut answers!
John T.
I need to update my bank info for my direct deposit
Sue
Hi, John. Thanks for reading our blog. If you’re receiving Social Security benefits, you can change your direct deposit information online with your personal my Social Security account. If you’re getting Supplemental Security Income (SSI), contact your local Social Security office to update your bank account information. To learn more, check out Direct Deposit Information. We hope this helps.
Pat F.
Why can’t social security reduce the amount of social security owed to you so upfront check won’t be changed Chances are we won’t collect all our social security if we don’t live long enough. Leave our monthly check alone so we can live. We earned it we should have it to live. Adjust total amount we should receive mine is about $200,000 collected from me and my employer adjust that figure. Pat F
OM
I so wish I could take the cases of every single person on here. It breaks my heart to hear some of these comments. There’s a great deal of research, time, blood, sweat & tears that go into correcting the wrongs. Believe it or not, the current Commissioner has gotten further than any past Commissioner has even tried to. All we have are the few people with the knowledge needed to help advocate for the cause. I don’t mean government agencies because at the end of the day, they’re all connected in one way or another. I mean people like Sue, a blogger that can reach people where we can’t, but with people that can advise more than ‘call the SSA office’. (no offense Sue). I love that you created this space so that we don’t feel so alone. But the system is broken, has been for many, many years. I have zero faith that the same people that put us here will actually step up for change. The only way to get results is to band together while we at least we have the ear of the current Commissioner. That could all change come November & a new congress. Any suggestions? Who all would sign a petition to the Office of Inspector General? Most of these changes are coming to light due to the audits they’re conducting & reporting back to the Commissioner with their findings & suggestions on how to fix it. If everyone posting would demand an audit of the field offices where they live, what do you think would happen? Think about it…..
Twiggy
Love your idea & agree that it may help. In my area we’re all assigned to a “local ” office that’s actually a different county, presumably to keep traffic going to that location although it’s in a dangerous city.
There’s another office in our county, but the “assigned local” insists nobody can go there & if one does it seems they become retaliatory with decisions.
Angela H.
I have been trying to get an over payment fixed since 2020. Here I am four years later dealing with the Charlotte, N.C. Office. I was a recruiter for the 2020 Census. We were trained to tell people that working for the Census would not affect their state or federal benefits per an order from the Trump administration. I even provided them with the actual order. They didn’t even know that SSA wasn’t collecting overpayments that occurred during Covid. A supervisor at the 800 number informed me that I didn’t get proper adjudication of my case. They realized that they made a mistake. I asked and filled out the form to go before an administrative law judge. Today I received a letter stating that they were withholding my entire benefit for a year. I still haven’t seen the administrative law judge. Can you help me please. I can’t live on nothing.
Sue
We’re sorry to hear about your situation, Angela. For your security, we do not have access to private information in this venue. We have forwarded your comments to our colleagues in North Carolina. Our new policy allows us to collect 10% of the total monthly Social Security benefit to recover most overpayments. We encourage you to work with your local Social Security office and ask to speak with a supervisor during your next call or visit. For more information, check out our Overpayment webage. We hope this is resolved soon.
OM
Hi Sue. I am EXTREMELY grateful for the new Commissioner & policies that are finally rolling out. No disrespect to you, but I find at least 75% of the problems (that’s me being nice) are caused in the field offices by untrained staff, huge backlogs, incorrect information given out by inexperienced reps & unresponsive supervisors that don’t have names. How do you make changes & hold people accountable if every letter is signed ‘Social Security Administration’? It’s not the administration as a whole, it’s certain staff in certain offices that gets zero assistance from the office supervisors. Most of the reps don’t even have access to important documents to assist ANYONE with FAQ. Why are they being trained to just wing it when management make themselves unavailable because they’re overworked? They plug information into a generic template because that’s what they’re trained to do, straight across the board, on every case, no exceptions. The backlog is mostly from denials, appeals, hearings & beyond that could have been resolved much sooner had the proper authorized people did their jobs & own the mistakes by at least initialing the paperwork. It’s very easy to make decisions that ruin lives when it can’t be traced back to anyone & it’s in a continuing loop of red tape, hoping that someone is paying attention & catch the error before the claimants pass away leaving the family with nothing. Just my two cents.
13 YR Freelance Advocate
Sue
Hi, OM. Thanks for reading our blog and for your comments. You can submit your feedback by visiting our How can we help? page. From there, select the “Email Us” link. This will take you to the “Email Our Support Team” form where you can submit your suggestion, compliment, or complaint. Thank you!
Everett R.
I followed my over payment online and in the social security office when it reached an amount that allowed me to pay in Full I did so. Got a Receipt that said paid in full. I kept following up on it. Now without notice I got a letter saying I owe an enormous amount. The SSA is keeping my full monthly payment leaving me to pay my monthly Medicare in full also. I followed this continuously and did as i was told by the SSA and now with less than a few weeks’ notice (NO PAY) Ridiculous maybe I should go to Mexico then cross the border illegally and get benefits that way!
Sue
We’re sorry to hear about your situation, Everett. 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. 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. Your appeal and waiver options are explained in our Overpayments fact sheet. For more information, check out our Frequently Asked Questions. We hope this is resolved soon.
Twiggy
WOW! You’ve hit the nail on the head, imo.
Thank you much for your insight, al least now know not crazy for feeling this way, too!
Please keep advocating for us out here!
EDWARDS
I didn’t even know or even still know what overpayment I owe for. Never received a notice or explanation on the matter. They recently changes the recovery rate from 100 to 10% as of March 25th My first overpayment back was this month May. And they took the entire monthly payment leaving me with no money whatsoever,rent is due,utility’s are coming up,and how am I supposed to pay my bills ? Mind you with not a single warning and not to mention after the recovery amount changes in March they still took every penny I was supposed to get this month and left me struggling and now facing more money loss from inability to pay my bills if not worse.. this is so disrespectful and hurtful and not even a offer to fix the obvious mistake they made on the recovery amouth.
Sue
We’re sorry to hear about your situation, Edwards. For your security, we do not have access to private information in this venue. We encourage you to contact your local Social Security office right away. Or call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. We hope this is resolved soon.
Jenifer D.
Same thing happened to me. It’s deplorable!! I am so sorry you experienced this! The same agency who we went to for help are the ones who are harming us!
JodiAnn
I am now convinced that the SSI branch of the SSA has been ineptly administering SSI benefits since the 2020 Pandemic and that the current overpayment crisis affecting thousands of low-income seniors like myself and persons with disabilities is now a contributing factor in causing homelessness , due to the inequities involved in making innocent people pay for mistakes made by a mismanaged Social Safety Net program. I am 69 years old, receive $715- in SS retirement benefits, work P/T at a low-wage retail job to make ends meet ;-and until March 2024, was receiving fluctuating amounts of SSI between 2021-2022, not realizing until recently(!) that I was supposed to report any minute changes in income ‘on/or before the 6th day of the month’;- which would impact my benefit amount and might result in penalties(!)
As someone who is living on the Federal Poverty Line before receiving the SSI benefit;- which has been suspended due to overpayment in 2022-2023;- I am outraged by the disconnect in communications between the various offices in Michigan, Oregon, Long Island, New York, which have been sending me overpayment notices, coupled with the nightmare of having to fill out the 14-page Waiver of Overpayment Recovery form; which rakes over the minute details of your personal financial data ;- even asking you for info. on your PayPal account;- which even the DSS does not require in it’s hearing review process regarding the determination of SNAP benefits amounts based on income !
I have been losing sleep over this situation for the past month and am struggling to cobble together all the required information for my waiver appeal;- which includes obtaining my 2022-2023 checking account transaction history from my bank; which adds insult to injury and prolongs the agony of meeting the deadline for submitting this mound of paperwork to the SSA; which apparently loves to generate tons of documents for it’s local offices to process so as to justify paying their inept SSA office workers a salary !
I intend to fight this cruel and absurd imbroglio using every tool at my disposal; including Social Media posts , emails, and phone calls to all of my State and local elected representatives, and TV News outlets!
The SSA is supposed to provide benefits and services to Seniors and those in need and administer those benefits properly to insure that SSA/SSI beneficiaries are not put at risk for either losing their benefits or having their benefits suspended, due to bureaucratic ineptitude !
OM
God bless you, ma’am. I LOVE it!!! I stand in agreement with you. Being a senior or disabled person shouldn’t cost additional trials above what we’re already experiencing daily. Isn’t paying 20-30 yrs into the system enough?
Patricia N.
I have paid 15000 in overpayments since I received my first order of benefits in 2012, they take money. I am so sick and tired of paying . I am supposed to live off of 761.00 with all the bills I have to pay. What is this ? I hope something changes soon