Social Security Returns to 100% Benefit Recovery for Overpayments Starting March 27
Starting March 27, the Social Security Administration (SSA) will resume collecting 100% of monthly benefits from recipients who received overpayments, replacing the previous 10% collection limit.
This policy affects anyone receiving overpayments after March 27, 2025. Current repayment agreements and SSI recipients (still capped at 10%) won't be impacted.
What Causes Overpayments?
- Delayed income reporting
- Changes in marital status
- Agency miscalculations
Between 2015-2022, the SSA made nearly $72 billion in improper payments, with $23 billion still uncollected as of late 2023.
If You Receive an Overpayment Notice:
- You'll be notified of the amount owed
- Recovery begins after 35 days (30 days + 5 mail days)
- 100% of monthly benefits will be withheld until debt clearance
- Contact SSA at 1-800-772-1213 to request lower repayment rates
Additional Collection Methods:
- Wage garnishment
- Federal tax refund withholding
- Credit bureau reporting
Prevention Steps:
- Keep SSA updated on income, marital status, and employment
- Monitor benefit amounts for unexpected increases
- Create and monitor a my Social Security account
You can appeal overpayments or request waivers if the error wasn't your fault and repayment creates financial hardship. This policy change is part of a broader federal cost-cutting initiative, expected to recover approximately $7 billion over 10 years.
Act promptly if you suspect an overpayment - quick action provides more options for resolution and prevents sudden benefit suspension.