Social Security to Reinstate Full Benefit Withholding for Overpayment Recovery
Starting March 27, the Social Security Administration will reclaim 100% of overpaid benefits, reversing a previous policy that limited withholdings to 10%.
- The Social Security Administration (SSA) will resume withholding 100% of monthly benefits to recover overpayments beginning March 27, 2025.
- This policy change reverses a 2024 reform that capped overpayment recovery at 10% to mitigate financial hardships for beneficiaries.
- Overpayments, which are rare, often result from administrative errors or unreported changes in beneficiaries' circumstances.
- The SSA estimates the policy will save $7 billion over the next decade but could cause significant financial strain for seniors and disabled individuals reliant on their benefits.
- Beneficiaries can appeal overpayment claims, request waivers if repayment causes financial hardship, or negotiate alternative repayment terms.
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