Policy Reversal Could Enhance Social Security Checks and Benefits
Last month, the Social Security Administration (SSA) announced they are reversing the policy of withholding 100% of benefits to recoup overpayments, reverting from the previous 10 percent withholding rate established in 2024. This means the SSA will now only be able to withhold 50% of a beneficiary’s monthly check, unless the beneficiary chooses to allow a larger deduction to pay down the balance. This includes Social Security Disability Insurance receivers. The withholding rate for Supplemental Security Income overpayments remains 10 %.
2.8 million retirees in the United States have begun receiving backdated payments from February 2025. Most beneficiaries noticed an increase in their monthly deposits from April this year, corresponding to March payments. Beneficiaries receiving this payment have 90 days to appeal the agency’s claim if they were overpaid. They can also request a waiver of repayment, or a repayment rate below 50% for reasons of financial need. If no claim is made, withholding will begin after 90 days. The SSA’s fact sheet explains more information on appeal and repayment options.
Social Security Overpayments
Read your notices carefully because beneficiaries are responsible for reporting changes in income that could affect their eligibility or payments. Incorrect or incomplete information from this self-reporting is a leading cause of payment errors, although mistakes by the agency do happen. It is always possible that what your statement says you owe may be incorrect. You can always complete a “Request for Reconsideration” form (SSA-561), if you want to content the amount.
If a recipient is overpaid for one or more months they must pay it back, even if the Agency is to blame. Poor staffing and system issues within the SSA means it could be years before an overpayment is recognized, leaving recipients on the hook for thousands of dollars for an unknown amount of time.
But did you know that opting to withhold 100% of benefits to reclaim what the agency identifies as overpayments isn’t new to the second Trump administration? The policy was in place during the Obama administration as well as the first Trump administration. During the Biden administration, the reduced withholding rate of 10% was put into place in 2024 because the 100% rate proved too challenging for some beneficiaries to pay. The recent announcement that the SSA will now withhold 50% of the monthly benefits should be a welcome reprieve for many Americans. The Office of the Chief Actuary estimates this change will result in an increase in overpaying recoveries (i.e., a program savings) of about $7 billion in the next decade.
If you or a loved one is struggling to apply for SSD benefits, having the right person in your corner can make all the difference. Contact Lowery Law Group today at info@lowerylegal.com or call (843) 991-0733. There is no fee for a free consultation regarding your claim. Lowery Law Group is experienced in handling cases in South Carolina as well as Georgia.