Why Social Security is Now Withholding Some Recipients’ Benefit Checks

If Social Security has overpaid you, the agency wants its money back — and it wants it now. According to a report by CBS News, the Social Security Administration (SSA) reinstated its plan to recover all of the overpayments to beneficiaries. As of March 27, the default overpayment withholding rate for Social Security recipients is back to 100 percent of a person’s monthly benefit.

That’s the same level that was in place before last year’s reform, which capped the repayment rate to 10 percent of the recipient’s monthly benefit — a move put in place to help reduce financial hardships. The SSA said raising the payback rate to 100 percent from its current 10 percent will increase the amount of recovered funds by $7 billion over the next decade.

The Seniors Trust is committed to improving the financial well-being of America’s retirees 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 will ensure the long-term solvency of the Social Security program.