New Social Security Plan Could Send $495 Relief Checks to Millions of Retirees
The Senior Citizens League (TSCL) proposes a one-time $495 payment to Social Security recipients, using recovered benefit overpayments to help offset lower Cost of Living Adjustments (COLA) expected in 2026.
Social Security cards on white background
The Social Security Administration (SSA) reported $6.5 billion in benefit overpayments in 2022. Rather than returning these funds to the general budget, TSCL suggests redistributing them to beneficiaries, particularly as COLA is projected to increase by only 2.2% in 2026.
Starting March 27, 2025, SSA will reinstate a 100% repayment requirement for new overpayments, replacing the current 10% monthly benefit deduction policy. This change excludes Supplemental Security Income (SSI) recipients.
Key Points:
- The proposal would benefit approximately 70 million Social Security recipients
- SSA projects recovering $7 billion over the next decade through stricter repayment rules
- The payment aims to help seniors cope with inflation and policy changes
- Federal approval is required for implementation
Recommended Actions for Beneficiaries:
- Review your SSA account for any overpayment notices
- Prepare for lower COLA increases by adjusting budgets
- Monitor updates from SSA and advocacy organizations
This proposal remains under consideration and requires federal approval before implementation. The timing coincides with election-season policymaking, potentially increasing its chances of adoption.
SSA Acting Commissioner Lee Dudek supports the stricter repayment policy, emphasizing the agency's responsibility to protect trust funds. Meanwhile, TSCL Executive Director Shannon Benton argues that recovered funds should support seniors facing financial challenges.
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