Starting in April, the Social Security Administration (SSA) will change how it handles overpayments made during distribution. Under the Biden administration, the SSA deducted 10 percent of the overpayment total from each monthly check until the error was corrected. However, beginning at the end of March, the agency will withhold 100 percent of the overpayment, meaning some beneficiaries could be left without a Social Security check, depending on how much they owe and receive each month.
The SSA claims this policy change will save the federal government $7 billion over the next decade, but officials have not explained how this figure compares to the previous 10 percent withholding system. Under that plan, the SSA was still able to recoup incorrect payments, but the process was less financially burdensome for recipients—many of whom may not have even realized they were overpaid.
Details on the overpayment policy change
For those already in the process of repaying the SSA, the repayment method will remain the same. However, any overpayments made after March 27 will be subject to the 100 percent withholding rule.
The SSA announced that it will begin mailing notices to affected individuals on March 27, informing them that their future benefits will be impacted.
Notably, Supplemental Security Income (SSI) recipients will not be affected, as the withholding level for SSI will remain at 10 percent.