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5d ago

Social Security Begins Withholding Half of Benefits to Recoup Overpayments

This policy follows April notices to beneficiaries, coinciding with $17 billion in retroactive Fairness Act payments.

Stock image/file photo: A Social Security card with U.S. Dollars and Treasury checks.
Stock image/file photo: A Social Security card with U.S. Dollars.
Image
Social Security

Overview

  • Starting July 24, the SSA will withhold up to 50 percent of monthly payments from beneficiaries with outstanding overpayment balances after a 90-day notice and waiver period.
  • Recipients had until late July to request waivers or reduced repayment rates after overpayment notices were sent in April.
  • As of July 7, the SSA has processed more than 3.1 million retroactive Fairness Act adjustments and disbursed about $17 billion to public sector workers including teachers and firefighters.
  • The agency has received over 278,000 new Fairness Act claims since January and resolved 92 percent of those applications to date.
  • Improper payments accounted for less than 1 percent of the $8.6 trillion in benefits paid between 2015 and 2022, leaving $23 billion still to be recovered as of September 2023.