Social Security Overpayments: Seniors Will 'Pay for Government's Mistakes'

[BumRushDaShow]

Source: Newsweek

Published Mar 24, 2025 at 4:00 AM EDT | Updated Mar 24, 2025 at 4:23 AM EDT


The Social Security Administration (SSA) has reneged on a previous promise to stop harsh penalties for seniors who have been overpaid benefits, which could mean some seniors will have to "pay for the government's mistakes." Benefit overpayments result from the government's mistake or from beneficiaries failing to comply with requirements, intentionally or otherwise.

Under the Biden administration, in an effort to ease the burden of overpayments on beneficiaries—many of whom have been incorrectly paid through no fault of their own—the SSA announced it would begin collecting 10 percent of a person's total monthly Social Security benefit rather than 100 percent as it previously did to recover an overpayment.

However, the Trump administration has made quick work of undoing this: on March 7, the federal agency announced it would reinstate the 100 percent withholding rate. This means that any overpayment made by the SSA would see the recipient's benefits withheld to pay off the balance. The new withholding rate will apply to any overpayment made after March 27, and previous incorrect payments will not be impacted. It does not apply to overpayments for Supplemental Security Income.

"We have the significant responsibility to be good stewards of the trust funds for the American people," said Lee Dudek, acting commissioner of Social Security. "It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds." Newsweek reached out to the SSA via email for comment.

Read more: https://www.newsweek.com/social-security-overpayments-seniors-pay-government-mistakes-2048526

[lonely bird]

1. Good stewards of the trust funds?

Hey, Dudek? Don’t use words that you do not know the meaning of.

[Prof. Toru Tanaka]

2. Yeah, last week this "good steward" was threatening to cut off SS completely.

[Silent Type]

3. This takes us back to the recoupment policy in effect before March 2024. As then, one can still request lower repayment

rates.

From SS website:

"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.

"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."

[turbinetree]

4. Hey Dudeck...........you wouldn't know a good steward from a bad steward........

all you know is hate and vengeance...............