The Social Security Administration (SSA) recently announced a change in its policy regarding the recovery of overpaid benefits. After initially implementing a 100% withholding rate to recoup overpayments, the SSA has reduced this rate to 50% for certain beneficiaries. This means that individuals who have received excess Social Security payments will now have 50% of their monthly benefits withheld until the overpayment is repaid.
While this reduction may offer some relief, experts warn that even a 50% withholding rate can have 'devastating' effects on low-income individuals and families who rely on Social Security for essential living expenses. Overpayments often arise from unintentional errors or unreported changes in income or circumstances. Recipients may face significant challenges managing their finances with a reduced benefit amount.
The SSA encourages beneficiaries to report any changes in their circumstances promptly to avoid potential overpayments. If you believe you have been overpaid, contact the Social Security Administration immediately to discuss repayment options and potential waivers based on financial hardship. Understanding your rights and responsibilities regarding Social Security benefits is crucial to ensuring financial stability.
Social Security Cuts Overpayment Clawback to 50% for Some
The Social Security Administration has reduced the amount it withholds from benefits to recover overpayments. Initially set at 100%, the withholding rate is now 50% for some recipients. Experts caution that even this reduced rate can still create financial hardship for vulnerable individuals. Overpayments can occur due to errors or changes in circumstances, leading to unexpected debt.
Source: Read the original article at NBC