Social Security to Reinstate Overpayment Recovery Rate

[GailL1]

A really good thing - the amount was overpaid and now they are getting it back without waiting months or years. They are adhering to the 10% recovery for those notified before 03/27/2025 or whom are SSI (Supplemental Security Income)  Overpayments.

SSA.gov News Release - 03/07/2025 - Social Security to Reinstate Overpayment Recovery Rate Policy - ... 

from the link ~

The agency strives to pay the right person the right amount at the right time, and issues correct payments to most beneficiaries. When an overpayment does occur, the agency is required by law to seek repayment.

As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.

People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. If someone cannot afford full recovery of their overpayment, they can contact Social Security at 1-800-772-1213 or their local office to request a lower rate of recovery.

[WebWiseWoman]

@GailL1 one of my most trusted AARP posters, I have to wonder...

Okay, so wait... why would anyone be overpaid after March 27th if this has been identified?

Please excuse my old experience, but now I trust nothing posted on .gov sites; here today, gone tomorrow.

[GailL1]

They have the ones that have been identified up until now - some go back a good while.  The magnitude of this was revealed last year. 

KFF Health News 11/18/2024 - Social Security Tackles Overpayment ‘Injustices,’ but Problems Remain 

Like it said in this news release - mistakes happen by the SSA so when a mistake is discovered after 03/27/2025 those will be collected immediately by the 100% rule.  Actually, this was always the rule, but because of the ramification of all of these old ones last year, the then SSA Secretary, Martin O'Malley, changed the rule to the 10% payback rate.  These will remain under the 10% repay rule and so will SSI claimants.

I understand this to mean that they are gonna stay on top of it - meaning that the reviews for these claims many of which are disability related claims will be completed by the beneficiary and reviewed by the SSA in a timely manner.

O'Malley did not fix anything - we still have the appeals process - all he did was give them longer to pay or forgive a lot of them even if they were valid claims because they were so old. Some of them even went back to when these people were kids and the parents got the benefit in their kids name and SS number.  So what we don't want to do is let any new ones linger and linger - until they become old and uncollectable or be too much of a hardship.  

Now hopefully, the SSA will stay on top of these overpayments,  be them Social Security claims or Supplemental Security Income (SSI)  claims.  Much of the problem is people not reporting as they should about their income or assets (SSI) or when they return to work (SSI or SSDI) or when their kids were not longer covered dependents of the (SSA) disabled beneficiary. 

It all goes back to people understanding their benefits and do the reporting as they are suppose to do to validate their disability.  Everybody does not have to do these reviews, it depends on the disability and how it was validated as being life long or if there is a chance of improvement.  I would imagine that these Disability CDRs (Continuing Disability Reviews) will probably have to be done more frequently than on a 3-5-7 year schedule to make it easier to review.