Overview

• The Social Security Administration has reduced the default withholding rate for Title II benefit overpayments, including retirement, survivors, and disability insurance, from 100% to 50%.
• The withholding rate for Supplemental Security Income (SSI) benefits remains unchanged at 10%.
• Beneficiaries have a 90-day window to request a waiver, reconsideration, or lower withholding rate before the SSA begins recovering up to 50% of their benefits.
• Experts warn that even a 50% withholding rate could cause significant financial hardship for beneficiaries relying on Social Security for basic living expenses.
• The SSA estimates that the initial increase to a 100% recovery rate would have saved $7 billion over the next decade, but the new policy reflects a compromise following public backlash.