Social Security Revises Policy on Recoverying Overpayments

The Social Security Administration pays various benefits including retirement benefits, disability benefits and Supplemental Security Income. An overpayment occurs when you receive more money than you should have been paid. In those cases, Sociai Security is required to seek recovery of the overpayment unless an exception applies allowing it to “forgive” (waive) the overpayment.

Under the old rule, Social Security could withhold 100% of someone’s monthly check until an overpayment was repaid. Beginning March 25, Social Security announced that the top amount it would withhold from someone’s monthly check is 10%. This change followed a 60 Minutes news special where it was reported that 1,028,389 Americans are currently dealing with overpayment notices. Specifically, Social Security’s Press Release states: “The Social Security Administration announced it will decrease the default overpayment withholding rate for Social Security beneficiaries to ten percent (or $10, whichever is greater) from 100 percent, significantly reducing financial hardship on people with overpayments.”

A House of Representatives page posted October 23, 2023 describes testimony regarding the overpayment issue and is available here.

Social Security’s press release had this to say about requesting a waiver: “Additionally, people have the right to appeal the overpayment decision or the amount. They can ask Social Security to waive collection of the overpayment, if they believe it was not their fault and can’t afford to pay it back. The agency does not pursue recoveries while an initial appeal or waiver is pending. Even if people do not want to appeal or request a waiver, they should contact the agency if the planned withholding would cause hardship. Social Security has flexible repayment options, including repayment of as low as $10 per month. Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis.”