Social Security Cuts Overpayment Withholding Rate to 50 Percent Down From 100 Percent

The lower withholding rate follows a brief return to 100 percent withholding introduced weeks earlier.

The Social Security Administration (SSA) has announced a new policy that reduces the default withholding rate to 50 percent for recovering Social Security benefit overpayments under Title II, the federal program covering retirement and disability insurance.

The change, outlined in an โ€œemergency messageโ€ dated April 25, comes less than a month after the agency raised the withholding rate to 100 percent of monthly benefitsโ€”up from a prior 10 percentโ€”to recoup overpayments. The initial sharp increase drew criticism from some lawmakers and advocates, who warned that full withholding could harm some lower-income Americans who rely on Social Security to meet basic needs.

Under the updated directive, any overpayment notice issued on or after April 25 will automatically carry a 50 percent withholding rate. Beneficiaries will have 90 days to respondโ€”either by contesting the overpayment, requesting a waiver, or negotiating a lower repayment rate. If no action is taken within that window, the SSA will start withholding half the monthly benefit until the overpayment is fully repaid.

The updated rules do not apply to Title XVI overpayments, such as those involving Supplemental Security Income (SSI) recipients, who still face the 10 percent withholding rate. The revised policy also excludes cases involving fraud or similar fault, which follow different recovery procedures.

The shift marks the third related policy change in just over a year. In March 2024, the agency lowered the default withholding rate from 100 percent to 10 percent, citing the wish to ease financial hardship for affected Americans.

โ€œItโ€™s unconscionable that someone would find themselves facing homelessness or unable to pay bills, because Social Security withheld their entire payment for recovery of an overpayment,โ€ Martin O’Malley, then Commissioner of Social Security, said at the time.

That policy was reversed last month, on March 27, when SSA reinstated full 100 percent withholding, citing fiscal responsibility and an estimated $7 billion in savings over the next decade.

โ€œWe have the significant responsibility to be good stewards of the trust funds for the American people,โ€ Lee Dudek, Acting Commissioner of Social Security, said in a statement.

Byย Tom Ozimek

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Parents of Autistic Children Weigh In on RFK Jr.โ€™s Plan to Find the Cause

โ€˜The bottom line is we want the truth. We want safe products for our kids,โ€™ said an Ohio dad with an autistic child.

Fighting the Idiocracy

Despite our country's noble efforts to defend freedom and liberty across the globe we now find ourselves defending democracy against idiocracy.

Recent Sun Activity Could Trigger Major Earthquakes

A number of scientists around the world are sharing concerns about an imminent global seismic event.

Bioterror Roundup: RFK Jr. Plotting to Genocide Autistic People?

Bioterror Propaganda Roundup: The latest updates on the โ€œnew...

Yemen Taught Trump Some Lessons That Heโ€™d Do Well To Apply Towards Ukraine

This article summarizes and analyzes a New York Times report about โ€œWhy Trump Suddenly Declared Victory Over the Houthi Militiaโ€.

News

DOJ Charges High-Ranking Sinaloa Cartel Suspects With โ€˜Narco-Terrorismโ€™

Feds charged alleged leaders of Sinaloa cartelโ€™s Beltran Leyva Organization with narco-terrorism, terrorism support, and international drug trafficking.

Judge Orders HHS to Restore Jobs in Health Monitoring Program for West Virginia Coal Miners

West Virginia federal judge ordered HHS to reverse terminations of nearly 200 workers who oversee a health monitoring program for coal miners

Trump Admin Urges Supreme Court to Permit DOGE Access to Social Security Records

The DOJ urged the Supreme Court on May 13 to let the DOGE have access to Social Security data after lower courts blocked that access.

Deported Mother Who Took 2-Year-Old US Citizen Child With Her Drops Lawsuit Against Trump Admin

Lawsuit against Trump admin alleging it deported an illegal immigrant and her 2-year-old U.S. citizen child to Honduras without due process is being dropped.

Federal Judge Says Trumpโ€™s Invocation of Alien Enemies Act Was Legal

Federal judge in PA has ruled that President Trump validly invoked the Alien Enemies Act as part of an effort to deport Venezuelan gang members.

Federal Grand Jury Indicts Wisconsin Judge Accused of Helping Illegal Immigrant Evade ICE

Milwaukee County Circuit Judge Hannah Dugan was indicted by a federal grand jury after being arrested and accused of helping an illegal immigrant evade ICE.

Immigration Fueled US Metro Population Growth in 2024, Census Says

Metro areas added nearly 3.2โ€ฏmillion people between 2023 and 2024, led by overseas arrivals that outweighed domestic departures, the Census Bureau says.

UnitedHealth CEO Abruptly Steps Down for โ€˜Personal Reasonsโ€™

Andrew Witty, the chief executive of UnitedHealth Group, stepped down โ€œfor personal reasonsโ€ and was effective immediately, the company announced on Tuesday.
spot_img

Related Articles