Social Security to Reinstate Overpayment Recovery Rate
Reading Time: 2 MinutesLast Updated: March 7, 2025
The Social Security Administration (SSA) announced it will increase the default overpayment withholding rate for Social Security beneficiaries to 100 percent of a person’s monthly benefit. The Office of the Chief Actuary estimates this change will result in an increase in overpayment recoveries (i.e., a program savings) of about $7 billion in the next decade.
“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, Acting Commissioner of Social Security. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”
The agency strives to pay the right person the right amount at the right time, and issues correct payments to most beneficiaries. When an overpayment does occur, the agency is required by law to seek repayment.
As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.
People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. If someone cannot afford full recovery of their overpayment, they can contact Social Security at 1-800-772-1213 or their local office to request a lower rate of recovery.
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.
For more information about overpayments and appeal rights, visit www.ssa.gov.
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John A.
That’s ridiculous to withhold 100%. A lot of people depend heavily on their SS. If the overpayment was due to the administration’s negligence that should be on the administration. Rules need to be amended to allow seniors to earn more and go after employers who penalize or fire senior employees who are limited to the amount they can earn because of SS restrictions.
Wade
Question?
Does the statement above mean (or am I miss understand it) Before March 27 will still be 10%, after March 27 they will start 100% repayment?
long m.
Here’s another interpretation: “It is crucial to understand that this will only affect Social Security overpayments occurring after that date. Overpayments prior to March 27 will maintain the 10% retention rate established in 2024 for ‘incorrect’ payments. Additionally, the retention rate for overpayments made to Supplemental Security Income (SSI) beneficiaries will remain at 10%.”
https://www.msn.com/en-us/money/retirement/social-security-has-a-profound-change-in-how-it-recovers-overpayments/ar-AA1AWEHs?ocid=msedgntp&pc=DCTS&cvid=7263a658f3ba44bb9f93a96429abf1b4&ei=27
Michael R.
Ss is deducting money from my payment because of an overpayment in 1977! Is this lawful? 48 years ago?
Shelley G.
Sounds absolutely like punishing Americans to me.
John A.
Evidently there is no statue of limitations for SS.
Ted D.
Garnishing 100% of a person’s income is punitive and I would guess it’s probably not legal.
Very few of those on SS can survive that kind of blow to their income.
Is this some kind of political game?
Shelley G.
This is egregious…so many people will lose housing…not pay bills, that’s not helping the economy.
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Crystal S.
Was this a overpayments? Or was it like back pay? Was it SS, SSI, or SSDI?
Lilian
Same here, I have no idea what all this means to me and my low unearned (?) income ssa and low annuity from usps. God helps me if they continue taking away from me more than what my HOA/COA = $600 continue taking every month from me! Soon I will lose my condo and I will be living in my 27 year old car.
Suzanne T.
I don’t know about the overpayment. I just received the. new benefits. Please don’t let them take away my new benefit.
Sam
This doesn’t mean anything to you. This just has to do with people that collect Social Security or Social Security disability AND also work regular job and have not reached their full retirement age. After those people reach their full retirement age they are allowed to make as much money at a regular job if they want to or can.. The amount that you can make is only restricted prior to full retirement age.
Leslie K.
I was on social security disability at age 63.5 years old and made $52 dollars over the $1,250 in September of 2022 and $70 dollars in October of 2022 and $150 in November of 2022. I was working a part time job at Winn Dixie. You try telling an employer that you cannot work any more that day because you will go over your allotted amount of money and you cannot come in n on your off day when you are called when someone calls out and see how long they keep you ! And once you are laid off or terminated or have your hours cut to nothing try finding another job at almost 70 years of age ! I am forced to work because my rent now takes 83% of my social security benefit and there is no longer any funds allocated for rent assistance that you can actually receive. After paying this 83% whats left for food, electric, and medication ? I HAVE to work have to pay for Florida’s high price of auto insurance and gas. Which means even making the extra $1,470 that’s allowed this year is not enough. No new clothes, no cable or internet and no eating out or getting hair cuts. SSA says I have gone over 3 times in the last 4 years. The total amount all together added up added up maybe to $672 dollars. They took my entire check of $1,387 for 3 months and said I owe them $3,888 dollars. My monthly check is $1,387. My monthly rent is now $1,132 dollars a month and I cannot get food benefits because I make too much money. I applied for the hardship waiver as directed and was denied because they said the overpayment was my fault from working. I was told that I could only have 36 months to pay the over payment of $3,888 dollars which equates to $108.00 dollars a month. I was paying that out of my monthly check and then my benefits were completely terminated without prior notice even though the letter said I would be notified. Two SSA Rep’s told me at in person appointments that they did not see where the letter to terminate my benefits was ever mailed out. This was February and March of 2025. I am now being evicted from my apartment that I have lived in for the past 15 months. I receive no help from HUD because of never being allowed to get on the waiting list for assistance. I have been trying since I was 59 years old and I am now 66 and 8 months old, losing everything I own, that I have purchased during my working years. Because I do not have the resources to have it moved to storage much less pay the fees to get in another apartment. Myself and my 10 year old canine companion are going to be in the street within the next two weeks. I have exhausted every referral given to me for emergency rent assistants and have been told that no funds are available. I feel my only option is to take my dear sweet companion to the local shelter rather than live with him in my car in some parking lot or tent in the woods and just take my own life. With the way things are now it seems to be the only option I have because I know I cannot survive long on the street. How many other senior citizens are going to be in the streets by the end of this new year ? How many of us will choose to do the same as myself ? The USA IS NO LONGER a great world super power or a land of prosperity as it has once was for us all. Even our senior citizens. SO good riddance AMERICA.
jennee
Since you are 63 you could apply for early retirement benefits.
long m.
SSA would take the payments from the early retirement too. Remember that SSA (social security administration) handles several different programs: SSR (sometimes used) the traditional social security retirement insurance program; SSDI (social security disability insurance); and SSI (supplementary security income). Overpayments can happen in any of these programs and since SSA administers all of them, they can just shift the repayments to whichever one a person is accessing–even if the original overpayment happened when the person was accessing a different program.
Kim
Trump’s plan to eliminate income taxes on Social Security benefits.
Now that he’s in the White House, Trump administration officials told CNBC.com last week that the president “doubles down” on that promise.
https://www.nbcnewyork.com/news/business/money-report/trumps-plan-to-eliminate-income-taxes-on-social-security-benefits-would-help-high-income-households-report-finds/6154034/
C D.
If you have a tent or camper you and your dog can camp free on my land. No strings attached.
Carol
Will you please explain how someone on Social Security would receive an overpayment? Please
in plain english where everyone can know what you are saying. Maybe this would clear up the confusion. Thank You
Ann D.
I agree. I keep seeing these scary examples of having to pay it back but how did it happen to start with??
long m.
This explains some of how it happens.
https://kffhealthnews.org/news/article/senator-ron-wyden-social-security-administration-monthly-meetings/
Sam
Easiest way to explain is as follows:
If you receive either regular SS or SSDI (disability) benefits before your full retirement age, which can vary depending on The year you were born), there is a cap on the amount of money you can earn working a regular job. Now the amount of your monthly benefit remains the same throughout the year so when you file your tax return And the amount you earned from that job is more than the cap, SS then expects a repayment amount I believe is $1 for every $3 you earned over the cap. Don’t know if I explained that very clearly but it might clear up a little confusion on how it can happen that you were overpaid..
Mike D.
Why would we have ever moved to less than 100% of recovery? These are for overpayments and the recipient should clearly understand it isn’t there money. Also, any insight into the reasons for the overpayment and ability to avoid in future? Is it mostly unreported deaths?