Overview
- The Social Security Administration has scaled back its plan to withhold 100% of monthly benefits for overpayment recovery, now limiting it to 50% for old-age, survivors, and disability insurance (OASDI) benefits.
- The updated policy applies to overpayment notices issued on or after April 25, with deductions set to begin approximately 90 days after notice unless a waiver or lower rate is requested by the beneficiary.
- Supplemental Security Income (SSI) benefits, which support low-income individuals with disabilities or older adults, will continue to have a 10% withholding cap for overpayments.
- Advocates have criticized the 50% withholding rate, arguing it will still impose significant financial hardship on vulnerable beneficiaries, including older adults and disabled individuals reliant on Social Security checks.
- The policy shift follows years of fluctuating approaches to overpayment recovery, with prior caps set at 10% under the Biden administration and a brief reinstatement of full withholding earlier this year under the Trump administration.