The Social Security Administration (SSA) is reinstating its 100% overpayment recovery policy, allowing them to withhold entire benefit checks until overpaid amounts are recovered, effective March 27, 2025. This replaces the previous 10% withholding policy implemented in March 2024.

Key Facts About the Policy:

• Affects retirees, disabled workers, and survivors receiving Social Security benefits
• Does not apply to Supplemental Security Income (SSI) recipients
• Applies regardless of whether the overpayment was due to SSA error or recipient error
• In 2024, SSA recovered $7 billion in overpayments
• 73,000 overpayment cases were due to SSA miscalculations

What Recipients Can Do:

1. Appeal the overpayment decision if you believe it's incorrect
2. Request a waiver if the overpayment wasn't your fault and repayment would cause hardship
3. Negotiate a lower monthly repayment plan

Important Actions to Take:

• Monitor your benefit amounts regularly
• Report any income or status changes immediately
• Respond promptly to overpayment notices
• Keep detailed records of all communications with SSA

The policy change comes amid SSA budget cuts and workforce reduction of 12% (7,000 employees), which may increase the likelihood of calculation errors. While the SSA distributed $1.6 trillion in benefits last year, less than 1% were deemed improper payments. Recipients should stay vigilant and be prepared to advocate for their benefits if necessary.

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