The Social Security Administration (SSA) is set to reinstate a controversial policy on March 27, allowing the agency to withhold 100% of a recipient’s monthly benefits in cases of overpayment. This marks a reversal of last year’s decision, which capped the repayment rate at 10% per month.
The change has sparked criticism from advocacy groups and affected beneficiaries, many of whom argue that SSA’s own administrative errors are responsible for overpayments rather than recipient fraud.
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Beneficiaries
Starting March 27, individuals who receive an overpayment notice will be required to repay the entire amount immediately, with SSA withholding their full Social Security check until the debt is cleared.
Changes
| Group | Repayment Rate Before March 27 | Repayment Rate After March 27 |
|---|---|---|
| Social Security recipients with overpayment notices | 10% per month | 100% per month (full withholding) |
| SSI recipients (low-income seniors, disabled individuals) | Exempt | Exempt |
- If you received an overpayment notice before March 27, your repayment remains capped at 10% per month.
- Supplemental Security Income (SSI) recipients are not affected by this change.
Policy Is Controversial
The 100% withholding policy was initially criticized for causing financial hardship, as many retirees and disabled individuals depend solely on Social Security for income.
Main Concerns
- Many recipients were unaware of overpayments, often due to SSA’s own miscalculations.
- Some received shock notices demanding repayment of tens of thousands of dollars within 30 days.
- An investigation by “60 Minutes” and KFF Health News found that SSA errors were a leading cause of overpayments, not fraud.
Despite the backlash, SSA Acting Commissioner Lee Dudek defended the decision, stating that the agency has a responsibility to safeguard Social Security’s trust funds.
Affected
If you receive an overpayment notice after March 27, you have options:
- Request a Waiver – If the overpayment was not your fault and full repayment would cause financial hardship, you can apply for a waiver to avoid paying it back.
- File an Appeal – If you believe the SSA made an error, you can challenge the overpayment decision.
- Negotiate a Payment Plan – If you cannot afford full withholding, request a lower repayment rate based on your financial situation.
To take action, contact SSA immediately upon receiving a notice and look into your rights to appeal or adjust payments.
Final Thoughts
The return of full-benefit withholding for overpayments is a major change that could financially impact thousands of Americans. If you rely on Social Security benefits, it’s important to stay informed, know your rights, and take proactive steps if you receive an overpayment notice.
FAQs
When does the new SSA overpayment policy take effect?
The policy change takes effect on March 27, 2024.
Who will have their entire Social Security check withheld?
Anyone notified of an overpayment after March 27, except SSI recipients.
Can I appeal an overpayment notice?
Yes, you can appeal if you believe the overpayment was an error.
How can I request a lower repayment amount?
You can negotiate a payment plan based on financial hardship.
Are SSI recipients affected by this policy change?
No, Supplemental Security Income (SSI) recipients remain under the 10% cap.
