Starting March 27, 2025, the Social Security Administration (SSA) will implement a major policy change affecting thousands of beneficiaries. The agency has confirmed that it will reinstate full withholding for overpayment recoveries, meaning that 100% of a recipient’s monthly benefit will be withheld until the debt is fully repaid.
According to the Office of the Chief Actuary, this adjustment is expected to result in $7 billion in savings over the next decade. The SSA states that this move restores a previous policy enforced under both the Obama and early Trump administrations, ensuring responsible management of Social Security trust funds.
Who Will Be Affected?
The 100% withholding rate will apply only to new overpayments that occur on or after March 27, 2025. Beneficiaries with an existing overpayment before that date will not see any changes and will continue with the current 10% withholding rate.
Additionally, this policy change does not affect Supplemental Security Income (SSI) recipients, who will continue to have a 10% withholding rate for overpayments.
Options for Affected Beneficiaries
Those who are unable to afford full repayment can request a lower recovery rate by contacting Social Security at 1-800-772-1213 or visiting a local office. Beneficiaries also have the right to appeal the overpayment decision or request a waiver if they believe the overpayment was not their fault and they cannot repay it.
While an appeal or waiver request is under review, the SSA will not proceed with payment recovery, providing temporary relief for those affected.
For more information on overpayments, appeal rights, and repayment options, visit the SSA’s official website at www.ssa.gov.
