Social Security Changes Stance on Overpayment Terms
The Social Security Administration (SSA) has made another change to its plans to recoup overpayments of Social Security benefits. According to an article by CNBC, just weeks after the agency announced a 100 percent withholding rate, it slashed the rate down to 50 percent for certain beneficiaries. While this is certainly good news for those affected, experts say it will still cause a financial burden on many beneficiaries.
Social Security overpayments can happen for a variety of reasons, such as when “a beneficiary fails to report a change in their circumstances to the agency or if the agency does not process information promptly or enters errors in its data.” Once the SSA recognizes that a beneficiary has been overpaid, it will send a notice requesting a full and immediate refund.
However, beneficiaries usually have 90 days to request a lower withholding rate, reconsideration, or waiver of recovery. According to the SSA, if the beneficiary does not respond within that 90-day window, it will withhold up to 50 percent of their benefits until the amount that was overpaid is fully recovered. The money is withdrawn from their monthly Social Security benefit checks.
The Seniors Trust is committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA), increased minimum benefits, and ensure the long-term solvency of the Social Security program.
