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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Elizabeth J.
I was on a payment plan already from an overpayment in the previous year, the agent and I discussed that I would not make more than 1400 a month and so I had my work keep me on a set schedule in order to avoid overpayment issues in the future. But then on rent day , my payment was set to be paid but never came, I had not been informed neither in writing or email or on the website, however I was told I wouldn’t get that payment back but would receive the next one in July. I had to pawn my cars title at a dangerously high rate just to pay the bills on such short notice, they took almost 1000 dollars that I had counted on. But I was assured that it was all handled after and I would receive my next check, I made sure to ask more than once because I was nervous I’d e homeless, but I’m already buried from the 600 a month I need to pay to now keep my only ride to work and behind on bills so the situation was serious, but my check was still saying on hold days later . So I call again and the lady on the phone tells me that the payment plan was not put in. She re enters it but only this time they would take a larger amount for payment but I’d still live. Another few days and I still don’t see any change, the days are growing close to running out before my rent is due so I’m panicked, I rush to the local office only to be rushed and treated like I was trying to scam them, as I was spinning and weak with anxiety , I walked away feeling confused and helpless, I looked back with a heavy heart as I saw her tapping angrily on the keyboard and I knew , I probably made her mad a d made it all worse. Well now I’ve lost my car to the loan company , lost my job due to no car and rent is due in 5 days. I have absolutely nowhere to go, it’s just me and my son and our two beloved cats. I tried to search for grants or emergency rental assistance but they are all scams and I can’t get a loan because I defaulted on the title loan. I’m literally watching my life get flushed down the toilet and all I can do us stare at my kitty and cry, hugging him goodbye.
Elizabeth J.
But I do want to add that untill now , the agents in the office were so helpful and patient that I enjoyed any visit , I was so touched by their kindness I’d tear up. It just all seemed to fall apart like brush fire!
D. E.
Is the 10% recovery rate automatically applied or do we have to speak to someone in order to initiate the lower withholding amount, as I have be trying for DAYS to get in touch with a SS representative via the number on the notice and keep getting “we are experiencing longer than normal wait times” and get disconnected?
Audra D.
I’ve been trying to reach them for months. I do not have transportation to their office, and can never get a human on their phone line. I am going to write their office about my financial situation, and the deduction, and send it via usps.
T.Y.
Thank you for reading our blog, Audra. We are sorry you are having trouble reaching us by phone. For more information about other ways to contact us, please visit our Contact Social Security | SSA webpage. We hope this helps.
steven l.
Email with them is crazy. 3-4 weeks to get a response even when replying. They go out f their way to reply without answering the question or addressing the issue. It’s a disgrace. Guess they’re busy setting up immigrants in the system.
Christopher B.
Who can I contact about my twice ignored and refused appeals that I submitted as well as the request to have the Covid period removed from my alleged monies owed. Nobody seems to want to help or address these issues and concerns which aren’t to hard to address or too much to ask for. You have tons of wrong information and continue to threaten to take all my money if I work and my taxes. I’m about ready to contact our state senators and hire some lawyers.
Rita P.
I’m going through same kind of treatment. And they’ve broken all the rules
Chris
My husband received an overpayment notice. He went thru various steps and is now in repayment. He recently received notice about the reduction to 10% and has been able to do that saving us a considerable amount each month although it will take longer to pay off. My question is, will we be paying any interest on that while its in repayment and what happens to that debt if my husband passes away before it is paid in full?
HAD
No interst due. You pay his debt owed if jointly connected to it.
Greg C.
My overpayment was in 1974′, I was mailed a bill for that amonnt about 1986′, I repaid it. There was an over pmt. due to my grade point fell below the 3.0 level and I was required to be at min. 3.0. The ss benefits were from my deceased father who had died in 1967. I was able to collect if I remained in school, and a 3.0 gradepoint. The semester I failed I left school.
It has been about 40 years since I repaid the debit and about 50 years since it occoured.
I just today, July 15th. 2024 got a notice the amount was due from my bebefits next month!
I am dumbfounded, OMG, WTF, Etc.
Greg C.
HAD
Pay it back. They caught you.
Rita P.
They are not following the Social security Act or federal POMS manual rules
Lisa P.
My 90 year old mother received an over payment letter,she is on section 8 and is unable to pay back,she told social security many times over the years her amount was wrong and they assured her it was not and NOW This letter! We will write an appeal letter cause this is your fault!! Not hers!
Bonnie S.
I receive widows benefits. I have an overpayment on my account. I was told that your full retirement age is earlier than your personal retirement age. I turned 66 years old IN September. I was told that any checks that I was suppose to receive would go to my overpayment. Why can i not see that on my online account. 100% of my benefit is being with held. Has been since 5/2023. I have been told that a waiver has been filed 2 times and I would receive my benefit. I have spoken to your office and visited your office multiple times still no response. I also have inquired about paying medicare was told I could not because i did not have a invoice. This has been going on over a year. How does the new policy apply to me? Why is my benefits still being with held? I was told whenever a waiver is being done new that they dont hold your benefit. How does your new policy apply to me. My full benefit is being with held has been since 5/2023 what you say I owe does not even match the amount you have with held. Am I not going to receive any benefits at all even though I paid into them for over 50 years.
S.D.
We’re sorry to hear about your situation, Bonnie. 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. 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 about the overpayment process, check out our Frequently Asked Questions. We hope this is resolved soon.
Camille S.
We currently pay $500/month approved by Social Security to address overpayment. If we reduce amount to 10%, if beneficiary dies, does the spouse have to continue to pay overpayment back. (Spouse is currently not on social security.)
T.Y.
Hi, Camille! Thank you for reading our blog. Unfortunately, your problem is more complex than we can handle in this forum. For your security, we do not have access to information about your overpayment. For more information read our frequently asked question “What can I do if I’m notified that I have an overpayment?” If you still have questions, or for further assistance, you should call our toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) for assistance, between 8:00 a.m. and 7:00 p.m., Monday through Friday. Wait times to speak to a representative are typically shorter early in the day (between 8 a.m. and 10 a.m. local time) or later in the afternoon (between 4 p.m. and 7 p.m. local time). We hope this helps.
David W.
What happens to the overpayment I send in each month. I was told it never totally goes away. It goes back in my benefit account???
S.D.
Thanks for reading our blog and for your question, David. An overpayment occurs when you receive more money than you should have been paid. The payment you make each month is applied to the overpayment balance until we recover the debt. To learn more about overpayments, check out our blog and Frequently Asked Questions. If you have specific questions about your overpayment, you can call us at 1-800-772-1213, Monday through Friday, 8:00 a.m. to 7:00 p.m. We hope this helps.
Dave W.
I can’t repay my overpayment in one lump sum and will opt for the Automatic Overpayment Recovery Rate, limited to 10% of my monthly benefit. With the 10% limit, it will take 41 months to fully repay my balance.
However, I will reach full retirement age in August 2025, well before my overpayment has been fully repaid. What happens when I reach full retirement age? Will any unpaid balance be forgiven? Or will the automatic overpayment continue until the balance is paid off?
S.D.
Hi, Dave. Thanks for reading our blog and for your question. We’ll continue to withhold 10% of your monthly benefit until we recover the overpayment in full. For more information about overpayments, check out our Frequently Asked Questions. We hope this helps.