Social Security to Resume Full Recovery of Overpayments

The SSA will reinstate a 100% withholding rate for new overpayments starting March 27, aiming to recover $7 billion over the next decade.

The Social Security Administration (SSA) will reinstate a 100% withholding rate for new overpayments, replacing the current 10% rate implemented last year.
The policy applies only to overpayments incurred after March 27, while older overpayments and Supplemental Security Income cases will remain at a 10% withholding rate.
The SSA estimates the change will recover $7 billion over the next decade, addressing concerns over trust fund stewardship.
Beneficiaries affected by overpayments can appeal, request waivers, or negotiate lower recovery rates if repayment poses financial hardship.
The decision follows broader federal cost-cutting measures under the Trump administration, including SSA workforce reductions and efforts to address alleged inefficiencies.