The Social Security Administration (SSA) announced a significant change to its overpayment recovery policy, reducing the maximum amount recouped from beneficiaries each month from 100% to 50%. This change aims to ease the financial burden on those who have received overpayments from Social Security benefits.
An overpayment occurs when the SSA determines that a beneficiary has received more money than they were entitled to, often due to reporting errors or changes in circumstances. Previously, the SSA could recover the full amount of the overpayment by withholding 100% of the beneficiary's monthly payment.
Under the new policy, the SSA will now only recoup a maximum of 50% of a beneficiary's monthly payment. The agency believes this will provide more financial flexibility for beneficiaries while still ensuring that overpayments are addressed.
However, some advocates argue that even a 50% reduction can create hardship for beneficiaries, many of whom rely heavily on Social Security for their income. They suggest that the SSA should consider individual circumstances and offer more flexible repayment options, including waiving the overpayment entirely in cases of extreme hardship. The debate continues regarding the balance between recovering funds and protecting vulnerable beneficiaries.
Social Security Reduces Overpayment Recovery to 50%
The Social Security Administration (SSA) is changing its policy regarding overpayment recovery. The SSA will now recoup a maximum of 50% of a beneficiary's monthly payment to correct overpayments, a decrease from the previous 100%. While the SSA touts this as a positive change, some advocates argue that the revised policy still places a significant financial burden on beneficiaries who are often low-income or elderly.
Source: Read the original article at CBS