Social Security announced it will decrease the default overpayment withholding rate for Social Security beneficiaries, significantly reducing the financial hardship on people with overpayments.
As of March 25, 2024, the agency will collect 10 percent (or $10, whichever is greater) of the total monthly Social Security benefit to recover an overpayment, rather than collecting 100 percent as was the previous procedure. There will be limited exceptions to this change, such as when an overpayment resulted from fraud.
There will be a short transition period where people will continue to experience the older policy as the change applies to new overpayments incurred.
People placed in 100 percent withholding during this transition period should call Social Security’s National 800 Number at 1-800-772-1213 to lower their withholding rate.
If beneficiaries already have an overpayment with a withholding rate greater than 10 percent and would like a lower recovery rate, they too should call Social Security at 1-800-772-1213, or their local Social Security office to speak with a representative. If a beneficiary requests a rate lower than 10 percent, a representative will approve the request if it allows recovery of the overpayment within 60 months.
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. Social Security has flexible repayment options, including repayment of as low as $10 per month. Each person’s situation is unique, and the agency handles overpayments on a case-by-case basis.
