Social Security changing course in going after overpayments
FILE - An opened envelope with the return address showing the U.S. Department of the Treasury lies on top of a United States government Treasury Check. Getty Images
The Social Security Administration announced Friday it is changing how it will recoup overpayments.
When a person has been overpaid, the law requires the SSA to seek repayment.
Social Security overpayment
The backstory:
In the past, under the Obama administration and the first Trump administration, common practice was to withhold the next benefit at 100% until accidentally overpaid funds were recouped.
In 2024, under the Biden administration, Social Security announced it was decreasing the default overpayment withholding rate to just 10% from 100%, to help reduce financial hardship on people with overpayments.
The SSA announced on Friday it will return its practice of withholding 100% of a person’s monthly benefit to recoup overpayment charges.
Timeline:
As of March 27, the SSA will mail notices about the new 100% withholding rate.
The withholding rate for those who received an overpayment before March 27 will not change and no action is required.
The new rate of 100% withholding only applies to people who are overpaid after March 27.
People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100% of the Social Security payment.
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By the numbers:
About 72.5 million Americans receive Social Security beneficiaries, though it’s unclear how common or not it is to receive overpayment.
The SSA said implementing this change will recover about $7 billion in the next decade.
What they're saying:
Lee Dudek, Acting Commissioner of Social Security, said the move was a "duty" to properly safeguard taxpayer funds.
What you can do:
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.
Social Security Administration layoffs
Meanwhile:
The Social Security Administration is preparing to lay off at least 7,000 people from its workforce of 60,000, according to a person familiar with the agency’s plans who is not authorized to speak publicly. The workforce reduction, according to a second person who also spoke on the condition of anonymity, could be as high as 50%.
RELATED: Social Security employees banned from reading news websites at work
Big picture view:
Layoffs and firings have affected many federal departments since President Trump took office in January.
The president has tapped billionaire businessman Elon Musk to lead the so-called Department of Government Efficiency, which has been tasked with finding and prioritizing what to cut within the federal government.
The Source: Information in this article was taken from press releases posted to the SSA’s blog on March 29, 2024, and March 7, 2025. Information about DOGE, Trump and federal agencies was taken from previous FOX Television Station reportings. This story was reported from Detroit.