Social Security's overpayments policy takes effect Thursday. Experts say it could hurt seniors.

[BumRushDaShow]

Source: CBS News

Updated on: March 26, 2025 / 1:39 PM EDT


Some Social Security recipients could soon find themselves in the crosshairs of a policy that advocates for seniors say could cause financial hardship for many older Americans. Starting Thursday, the Social Security Administration will begin clawing back overpayments from the retirement program by taking 100% of a beneficiary's monthly check until the money is repaid, up from the prior rate of 10%.

The policy will impact new cases of overpayments starting on March 27. The benefits withholding rate for people who were overpaid before that date will remain at 10%. The agency's 100% recovery rate was announced earlier this month by SSA Acting Commissioner Lee Dudek, who has worked with Elon Musk's Department of Government Efficiency, or DOGE, to cut costs at the agency by firing thousands of workers and closing field offices.

Dudek has described the 100% clawback rate as part of the agency's responsibility to recover overpaid funds. But advocates for older Americans say the policy will cause financial distress for many people, especially those who rely on the program for all or most of their income.

"If an overpayment is being made, that means the Social Security Administration is withholding 100% of their payment for however long it takes to repay the agency — and they are without money to pay for food" or other living expenses, Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, an advocacy group, told CBS MoneyWatch.

Read more: https://www.cbsnews.com/news/social-security-benefits-clawback-overpayment-100-percent-march-27-doge/

[RandySF]

1. It WILL hurt seniors.

[NotHardly]

3. That is their intention. Cruelty & abandonment.

This breaks the social contract.

https://en.wikipedia.org/wiki/Social_contract

[valleyrogue]

20. And SSI recipients. n/t

[LetsGetSmartAboutIt]

2. EO: All paper cuts must have lemon juice applied

It's just about causing unnecessary pain, so why not make people suffer more when they can.

[RazorbackExpat]

7. And after the lemon juice comes the salt

and then the scalding hot water

[Silent Type]

4. It's returning to policy before March 2024, and one can appeal for much lower repayment rates.

[wishstar]

5. Difficult now to get through on phone to make appointment to file an appeal

and those who do get through on phone or go in person into SS offices are required to set up appointment with a representative that might be weeks in future.

[progree]

6. I red in TheWeek that the average wait time for an in-person appointment is more than a month

I get so extremely very tired of certain posters who "no big deals" and excuses every one of these things.

This is what people face when they try to resolve any issue with SS or even get a human response --

Long waits, waves of calls, web crashes: Social Security is breaking down, Washington Post, (no PW on this msn-hosted article), 3/25/25
https://www.democraticunderground.com/10143425285

The Social Security Administration website crashed four times in 10 days this month, blocking millions of retirees and disabled Americans from logging in to their online accounts because the servers were overloaded. In the field, office managers have resorted to answering phones at the front desk as receptionists because so many employees have been pushed out. But the agency no longer has a system to monitor customers' experience with these services, because that office was eliminated as part of the cost-cutting efforts led by Elon Musk.

And the phones keep ringing. And ringing.

--snip--

Financial services executive Frank Bisignano is scheduled to face lawmakers Tuesday during a Senate confirmation hearing as President Donald Trump's pick to become the permanent commissioner. For now, the agency is run by a caretaker leader in his sixth week on the job who has raced to push out more than 12 percent of the staff of 57,000. He has conceded that the agency's phone service "sucks" and acknowledged that Musk's U.S. DOGE Service is really in charge, pushing a single-minded mission to find benefits fraud despite vast evidence that the problem is overstated.

--snip--

The employees, with no new training yet on the impending changes, have few answers. "I hope we're going to be here," the employee tells caller after caller. "But I can't guarantee anything."

Scammers are already taking advantage of the chaotic moment, according to internal emails obtained by The Post. . . .

Meanwhile, a DOGE-imposed spending freeze has left many field offices without paper, pens and the phone headsets staff need to do their jobs communicating with callers . . .

. . . in one office mandated return-to-office edict has left 1,200 staffers competing for about 300 parking spots each day . . . staff wake up as early as 4:30 AM to snag a parking spot . . .

The article also covers all the recent policy changes requiring in-person visits . . .

It's a long article. Utter chaos.

[kkmarie]

8. From the article the errors are made at the agency

Miscalculations on the agency side. How in the world would someone know if they are getting to much? And is doge just going to pick names out of a hat and claim they were overpaid? Will they just use the chainsaw approach and deem everyone receiving social security was overpaid?
Seriously worried about this next step in this regime's plan to dismantle social security.

[elocs]

9. Even though I am dirt poor I can see them claiming I've been overpaid by the SSA

and then make me prove otherwise. The problem is that at age 72 I really no longer have faith and trust in the SSA and wondering every month if my check will be deposited into my bank account. So my only real choice is to get a job and I'm fortunate enough to be in good physical shape, no illnesses or aches and pains.
It's then new America and evidently almost half of the electorate who voted for Trump didn't care what he did or does.

[Rebl2]

15. The older

maga will care when they see some of their SS get clawed back.

[elocs]

18. My point is that it will be claimed you were overpaid when you have not

and it will be up to you to prove that they are wrong.

[intrepidity]

10. But since it only applies to "new" overpayments

presumably since 3/27/25, and since DOGE is currently at the helm fixing SSA, why would there even be *any* overpayments?

It does not make any sense at all.

[BumRushDaShow]

11. They seem to be adjusting their policies "on the fly" (depending on the pushback)

So they may change it again at any time!!!

[intrepidity]

12. Can someone please clarify?

If no "overpayment" has been discovered prior to today, and the new policy applies only to future (starting today) overpayments, can we rest assured we're ok?

Or are they going to suddenly discover er, fabricate, overpayments in the past???

[BumRushDaShow]

13. From the SSA website

https://blog.ssa.gov/social-security-to-reinstate-overpayment-recovery-rate/

(snip)

As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.

People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. 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.

Additionally, people have the right to appeal the overpayment decision or the amount. They can ask Social Security to waive collection of the overpayment, if they believe it was not their fault and can’t afford to pay it back. The agency does not pursue recoveries while an initial appeal or waiver is pending.

(emphasis as it appears at the site)

I am guessing that means that if there is a problem with the next checks that get sent out after today, then the 100% withholding will come out of those. Any over-payments on previous checks, will still have the old rate.

Can't guarantee with this administration whether they will backtrack on any "promise".

[intrepidity]

14. Thanks; that was my initial interpretation

But then got to wondering if "newly discovered" overpayments (on, perhaps, years of payments) are considered new or grandfathered. Seems intentionally ambiguous.

I can see the DOGEbags finding something in the code that they can manipulate to throw *everyone* into this mess. Grrrrr. Just so, so, so far over all this!

[BumRushDaShow]

16. I guarantee that the appointed figurehead "big wigs" haven't even figured it out

All you can do is hope there are some veteran civil servants in there who can nudge them into not doing something completely catastrophic.

[markie]

17. seriously bad...

when I retired there was an error and I had to pay back a fair amt of money... I did it over a few years... I would have been in serious trouble had that policy been in place

[valleyrogue]

19. This is just horrifying.

My brother, who is on SSI, just got hit with an $8300 clawback repayment because 1) he didn't understand that he had to repay some $5400 in power bill arrears when the Oregon COVID moratorium on utility payments was lifted and family had to bail him out and 2) he is being socked with overpayment because he had to go to the hospital in December with a variety of health ailments and didn't get released until March and 3) because his space rent is so outrageous, he is unable to pay his property tax and homeowners insurance without family help. I am his representative payee, and had I known I would treated as if I were a co-signer of a loan, I would NEVER have done this.

I don't think he is affected by the 100 percent clawback of his benefits because the letter was dated March 26.