Social Security's 100% Recovery Policy Reinstated for Overpaid Benefits
Social Security's Shift Back to 100% Overpayment Recovery
The Social Security Administration (SSA) has announced the reinstatement of its policy to recover 100% of overpayments to beneficiaries, a decision that reverses last year’s changes. The agency had temporarily capped recoveries at 10% of monthly benefits due to significant public backlash, where many beneficiaries faced unexpected, large bills.
Details of the New Policy
Effective immediately, the SSA will apply a 100% withholding rate for new cases of overpayment. This means that any beneficiary deemed in overpayment status will now see their full benefits withheld to recover excess funds. However, current recipients with overpayments established prior to March 27 will see their recovery rate remain capped at 10% for the time being.
- The policy aims to comply with legal requirements to recoup overpaid benefits.
- Beneficiaries should prepare for potential changes in their monthly disbursements.
- This will not affect Supplemental Security Income (SSI) recovery rates, which remain 10%.
This decision illustrates the ongoing complications surrounding Social Security and its financial management practices.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.