The Social Security Administration (SSA) recently announced that starting March 25, 2024, it will decrease the default overpayment withholding rate for Social Security beneficiaries to 10% (or $10, whichever is greater) from 100%, to reduce the financial strain on people with overpayments. There will be limited exceptions to this new policy, such as when an overpayment resulted from fraud.
A short transition period will exist during which people will continue to experience the older policy. Individuals placed in 100% withholding during the transition period should call SSA’s national number at 1-800-772-1213 or locate the number of their local field office here: https://secure.ssa.gov/ICON/main.jsp to request a lower withholding rate.
The new policy applies to new overpayments. If beneficiaries have an existing overpayment with a withholding rate greater than 10% and would like a lower recovery rate, they should call SSA or their local field office to speak with a representative. If a beneficiary requests a rate that is lower than 10%, it will be approved so long as it allows the overpayment to be fully recovered within 60 months – a recent increase from the previous policy of only 36 months. If the beneficiary’s proposed rate would extend recovery of the overpayment beyond 60 months, the beneficiary should fill out an SSA-634 Form, which provides information regarding the beneficiary’s income, resources and expenses, in order to help SSA make a determination.
In addition, individuals have the right to appeal the overpayment decision or the amount. They can also ask SSA to waive collection of the overpayment, if they believe it was not their fault and they cannot afford to pay it back. SSA will not pursue recovery while an initial appeal or waiver is pending.
Even if someone does not want to file an appeal or a waiver, they should still contact SSA if the planned withholding would cause a hardship. SSA has flexible repayment options, including repayments as low as $10 per month.
Comments