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On March 7, 2025, the U.S. Social Security Administration (SSA) announced the reinstatement of the default overpayment withholding rate for Social Security beneficiaries to 100% of their monthly benefit. The individuals that are overpaid benefits after March 27, 2025 will automatically be placed in a full recovery rate of 100% of their Social Security monthly payment. The change would apply only to new overpayments.

In 2025, Social Security is expected to pay $1.6 trillion in benefits to about 69 million Americans every month. According to the Office of the Chief Actuary, the SSA projects that the change in the overpayment recovery rate increasing from the current 10% to 100% of the individual’s monthly benefit will result in program savings of about $7 billion over the next 10 years. In early 2024, the repayment requirements were changed and the withholding was reduced to 10% from 100%. After the reinstatement, the repayment requirements will revert to 100% for most cases. However, the withholding rate for Supplemental Security Income overpayments remains at 10%.

SSA indicates that beneficiaries have the right to appeal the overpayment decision or the amount. A waiver could be requested if the beneficiary believes they are not at fault or are unable to repay the full recovery of their overpayment. However, while there is an initial appeal or pending waiver, the SSA will not pursue recoveries.

Further information is available here.