Social Security Returns to 100% Benefit Recovery for Overpayments Starting March 27
Starting March 27, the Social Security Administration (SSA) will resume collecting 100% of monthly benefits from recipients who received overpayments, replacing the previous 10% collection limit. This change affects anyone receiving overpayments after March 27, 2025, while current repayment agreements remain unchanged.
Overpayments, which totaled $72 billion between 2015-2022, occur when beneficiaries receive more than they're eligible for due to income changes, marital status updates, or administrative errors. Currently, $23 billion remains uncollected.
If you receive an overpayment notice:
- SSA will begin recovery after 35 days (30 days plus 5 mail days)
- Your entire monthly benefit will be withheld until the debt is cleared
- You can request a lower repayment rate by calling 1-800-772-1213 or visiting a local office
Additional collection methods include:
- Wage garnishment
- Federal tax refund withholding
- Credit bureau reporting
Prevention tips:
- Keep SSA updated on income, marriage, and employment changes
- Review unexpected benefit increases
- Monitor your my Social Security account regularly
You can appeal the overpayment or request a waiver if it wasn't your fault and repayment would cause financial hardship. Act quickly, as timing is crucial.
This policy change is part of a broader federal cost-cutting initiative expected to recover approximately $7 billion over 10 years. The SSA also plans workforce reductions, office closures, and slower claim processing.
Important notes:
- SSI recipients remain capped at 10% repayment
- Current repayment agreements stay unchanged
- Those receiving overpayments after March 27, 2025, face full benefit withholding
Contact the SSA immediately if you suspect an overpayment to discuss your options and avoid complete benefit suspension.