The Social Security Administration (SSA) has announced a new policy to withhold 100% of benefits for overpayments. This policy change, which takes effect on March 27, 2025, is a significant departure from the previous policy of withholding 10% of benefits.
What is an overpayment?
An overpayment occurs when the SSA pays a beneficiary more than they are entitled to. This can happen for several reasons, such as errors in reporting income or changes in family status.
What does this mean for beneficiaries?
The new policy means that beneficiaries who have been overpaid will have their entire benefit check withheld until the overpayment is repaid. This could create a significant financial hardship for many beneficiaries, particularly those who rely on their benefits to meet basic needs.
What can beneficiaries do?
Beneficiaries who have been overpaid can appeal the decision or request a waiver. They can also contact the SSA to request a lower withholding rate.
What is the SSA's rationale for this policy change?
The SSA has stated that the new policy is necessary to protect the trust funds. The agency estimates this change will increase overpayment recoveries by about $7 billion in the next decade.
What are the potential consequences of this policy change?
The new policy could increase beneficiaries' financial hardship and the number of appeals and waivers.
Additional resources:
SSA website National Committee to Preserve Social Security and Medicare Center on Budget and Policy Priorities
Recommended Citation: Gelman, Jon., SSA to Withhold 100% of Benefits for Overpayments (03/09/2025) https://workers-compensation.blogspot.com/2025/03/ssa-to-withhold-100-of-benefits-for.html
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*Jon L. Gelman of Wayne, NJ, is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise Modern Workers’ Compensation Law (West-Thomson-Reuters). For over five decades, the Law Offices of Jon Gelman 1.973.696.7900
jon@gelmans.com has represented injured workers and their families who have suffered occupational illnesses and diseases.
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