Skip to main content
SummerOnTheWay1
SummerOnTheWay1
May 1, 2025

📋 Social Security Retreats on Plan to Claw Back Overpayments (AARP Article)

  • May 1, 2025
  • 8 replies
  • 3772 views

FROM THE ARTICLE:

 

Social Security Retreats on Plan to Claw Back 100% of Benefits for Overpayments.

SSA will now withhold up to half of benefits from those who owe for past payment errors.

 

By Andy Markowitz, AARP. Published April 30, 2025.

 

Social Security Administration (SSA) is scaling back a policy shift that would have cut off benefits to people whom the agency overpaid in the past until the debt is repaid.

In an “emergency message” to employees dated April 25, the SSA set a default withholding rate of 50 percent of benefits to recoup money from beneficiaries who were paid more than they were eligible to receive.

 

USE LINK BELOW TO READ THE ARTICLE: https://www.aarp.org/social-security/ssa-overpayment-clawback/

8 replies

SummerOnTheWay1
SummerOnTheWay1Author
May 1, 2025

📎  This reminds me of times before I retired when my employer OVERPAID me. To protect myself from being accused of fraud on my timecard/electronic clock in, I would NOTIFY my boss & payroll IMMEDIATELY via email. I would have a copy coming to me as "proof" it was sent. Also attached a copy of direct deposit to my bank. Lol, then NOT SPEND the over payment. That way it was there for them to TAKE BACK whenever they got around to it.

 

So far, Social Security has NOT overpaid my retirement benefits. But IF they did, SAME routine. Seen too many stories of folks TRYING to return the Social Security overpayment and having NO success.

 

Take care,

Nicole  👵

GailL1
GailL1
Community Champion ⭐⭐⭐
May 1, 2025

If it was that easy, it would be great.  Most of these are Supplemental Security Income (SSI) rather than a Social Security benefit.  The Social Security Administration is the government entity that administers the SSI program.

 

Problem is with many of these overpayment, the beneficiary or their representative payee (RP) don’t realize it has occurred or they don’t realize that the benefits should be stopped for some reason and then it may just snowball into a higher and higher amount.  Or they don’t care because they are the RP and are suppose to be using it for the good of the beneficiary.  In fact, many times, the SSA is coming after people (adults) for their overpayments which occurred when they were kids and they may not even realize they were getting a benefit.  

 

The SSA may lose track of the beneficiary and then they may find out they owe for this overpayment when they don’t get back their tax refund because it has been taken to pay off some or all of it.  

 

For a long time, this type of collection was not pursued mainly because of the situation that it puts these low income folks into - the same reason why they are now modifying this repay plan.  

 

A pure mess - 

IT‘S ALWAYS SOMETHING . . . . .. . . . Roseanne Roseannadanna
    SummerOnTheWay1
    SummerOnTheWay1Author
    May 1, 2025

    📎@GailL1 , all good points, but I agree with Social Security - overpayments need to be returned. Folks know about them and IF they choose to spend it = they have created an issue. There is NO free ride in life. In regards to low income, way too many are choosing to stay low income to continue to NOT being responsible. The way 2025 is going with MORE coming, these folks better cut back. Folks made it through the Great Depression, so can they. There is NO excuse for NOT returning these funds. Just my 1/2 cent. Take care, Nicole  👵

     

    ➡️[*** Gail wrote on Thursday 5/1/25: If it was that easy, it would be great.  Most of these are Supplemental Security Income (SSI) rather than a Social Security benefit.  The Social Security Administration is the government entity that administers the SSI program.

     

    Problem is with many of these overpayment, the beneficiary or their representative payee (RP) don’t realize it has occurred or they don’t realize that the benefits should be stopped for some reason and then it may just snowball into a higher and higher amount.  Or they don’t care because they are the RP and are suppose to be using it for the good of the beneficiary.  In fact, many times, the SSA is coming after people (adults) for their overpayments which occurred when they were kids and they may not even realize they were getting a benefit.  

     

    The SSA may lose track of the beneficiary and then they may find out they owe for this overpayment when they don’t get back their tax refund because it has been taken to pay off some or all of it.  

     

    For a long time, this type of collection was not pursued mainly because of the situation that it puts these low income folks into - the same reason why they are now modifying this repay plan.  

     

    A pure mess - ***]

    Terms & ConditionsAccessibility statement