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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Michelle S.
The president should be ashamed
Susan
On 03/05/25, I checked my bank account regarding my payday. When I saw the amount that was put into my account. I have tried to call the SS office in my local town, but never can talk to anyone. Very stressed.
steve r.
I don’t know if I’m gonna be effected by this or not. If I am – taking money from me will hurt me big time. I live alone and pay all my bills. Missing one month of ssi payments will put me in debt big time. I could lose my house and my phone and won’t be able to pay my monthly bills. I didn’t ask for extra money. It’s not my fault of overpayments.I can’t afford to miss one months ssi payments or more. I have no control of overpayments.If I knew about this beforehand – I would have never wanted the extra money if it was gonna hurt me in the long run. Why should I be punished for something I never knew about after all this time. And now we are just finding these things out. WOW. What a surprise to find this out now. I need all my money to survive- and then some. I only get enough to survive as it is. I could go on & on. But I won’t. I can’t afford to lose any amount of money. I don’t get enough as it is now. I’m just getting by to live and pay my bills. END OF STORY. THANK YOU.
Gail M.
Blame Trump and Elon for doing this to everyone.
Luke A.
Yay democracy.
Getting what you voted for 🤣🤣🤣🤣
Dorothy W.
People on SSI will have a ten percent recovery rate. You are excluded from the one hundred percent rate. Please see the above article for my source.
longmemory
SSA had a major scandal about its “clawback” activities only last year; the then director resigned because of them. It’s detailed in a series called “Overpayment Outrage” at https://kffhealthnews.org/overpayment-outrage/?fbclid=IwY2xjawI8wOJleHRuA2FlbQIxMQABHdl__gziszuTsMvTRModU5hOkepbk76wsqYlZrCVBul_jp0yBc0ZeE6_RA_aem_yRiv3OCBU8mcMVzLy3Lg2Q
Pat S.
This is unconscionable! People who rely on social security will be unable to keep their housing, buy food or get medicine. You are purposely harming people and should be ashamed of yourself.
Julio Y.
What happened to the money that the government “Borrowed” from Social Security???? Did they ever pay it back??
Katherine L.
I’m not sure what this is about. If social security made the error why am I paying for their mistakes? I only receive social security. I am confused .
Beverly B.
I’m not sure what the overpayment is because I just started getting it a year ago and personally it’s not enough. If my husband didn’t work I wouldn’t be able to afford housing so hopefully I am not included in this nonsense. My mother is in a nursing home and she only gets $35 after the nursing home gets their money. So are those people going to lose vital care?
Josh
An overpayment is if they give u money by accident and u keep it. Or if they try to say you are no longer disabled and u appeal it, during the appeals if you choose to keep collecting the money.. if the judge says you’re no longer disabled so you lose that appeals.. you’ll end up owing everything you collected while appealing. They consider that an overpayment as well. If you just collect and haven’t lost any appeals or gotten an extra check or so.. you’re good. They won’t be taking anything.
Dona
Is it about SSdi or SSI?
Donan
I don’t understand what it is about?
Are we have to pay back?
Dixie
It says if you cannot afford that to call them. And it also states any overpayment AFTER March 27th is what will be affected. Social security was not meant to “live” on, but a supplement to help out. Unfortunately not everyone has had IRA’S, 401K’s, pensions etc. Therefore they rely solely on Social Security. Doesn’t seem right bit that’s the way it is. Read the entire article.
Dixie
That was my first thought. BUT… I read the entire article. IF you are receiving overpayment AFTER march 27th THEN you have to pay it back. It also states if you cannot afford 100% payback to call them and they will work with you on that.