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Social Security change: Overpaid recipients soon see up to 50% in benefits cut
Social Security change: Overpaid recipients soon see up to 50% in benefits cut

Indianapolis Star

time21-07-2025

  • Business
  • Indianapolis Star

Social Security change: Overpaid recipients soon see up to 50% in benefits cut

For some Social Security recipients, benefit checks might arrive in a lesser amount in the coming months. Meanwhile, some others may have recently gotten a bump in their benefits. The Social Security Administration said in April it would begin sending notices to recipients who got overpayments in the past. After sending out overpayment notices, the SSA would allow 90 days for recipients to seek a waiver or lower repayment rate. Then, the agency would begin withholding 50% of recipients' benefits until the overpayment is repaid (after approximately July 24, at the earliest). Some beneficiaries are set to receive payments on July 23, while the next payment date after that falls on Aug. 1, according to the SSA payment calendar. Other recipients, however, might have seen their benefits increase. That's because the Social Security Fairness Act has kicked in for public sector workers whose benefits had been reduced in the past. As of July 7, the SSA said it has processed more than 3.1 million payments to those entitled to the retroactive payment adjustments. No more paper checks: Social Security moving to 100% electronic payments this fall Some Social Security beneficiaries who have been overpaid could have their monthly benefits cut in half beginning in late July. Overpayments can happen when the SSA incorrectly calculates a person's benefits, for example, or a beneficiary fails to update a change in income. Improper payments accounted for less than 1% of the almost $8.6 trillion in benefits paid during fiscal years 2015-2022, according to an August 2024 report from the Social Security Administration's Office of the Inspector General. Of the nearly $72 billion in improper payments – most of which were overpayments – issued during that time, Social Security had collected all but $23 billion as of September 2023, according to the SSA. Also, the SSA began sending retroactive Social Security Fairness Act payments in February to public sector workers who could not get Social Security or had reduced benefits because their past work wasn't subject to Social Security taxes, according to the SSA. Those affected recipients included police officers, firefighters, postal workers and public school teachers. The SSA has paid about $17 billion to those beneficiaries. Earlier this year, the agency said the average amount of the retroactive payment was $6,710. Because the SSA pays benefits the month after they are due, some recipients may see the change in their benefit amount in the August 2025 payment, the agency said. Since the act became law on Jan. 5, 2025, the agency has received more than 278,000 new claims from people with pensions from work not covered by Social Security and has processed 92% of these, the SSA said. For some of those who filed a new claim after Jan. 5, 2025, the SSA "may still be working to process your application," the agency said July 10. If you think you are eligible for Social Security Fairness Act benefit adjustments, you can file a claim at If you have gotten a notice from the SSA that you received an overpayment, you can repay the overpayment amount by credit card, online bill pay or check. For more information on repayment of overpaid benefits, visit the SSA website. You can also request a waiver to not repay the overpayment if you believe it was not your fault or if you cannot afford to repay it (or think it is unfair for some other reason), using a form on the SSA website. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@

Social Security change: Overpaid recipients soon see up to 50% in benefits cut
Social Security change: Overpaid recipients soon see up to 50% in benefits cut

Indianapolis Star

time21-07-2025

  • Business
  • Indianapolis Star

Social Security change: Overpaid recipients soon see up to 50% in benefits cut

For some Social Security recipients, benefit checks might arrive in a lesser amount in the coming months. Meanwhile, some others may have recently gotten a bump in their benefits. The Social Security Administration said in April it would begin sending notices to recipients who got overpayments in the past. After sending out overpayment notices, the SSA would allow 90 days for recipients to seek a waiver or lower repayment rate. Then, the agency would begin withholding 50% of recipients' benefits until the overpayment is repaid (after approximately July 24, at the earliest). Some beneficiaries are set to receive payments on July 23, while the next payment date after that falls on Aug. 1, according to the SSA payment calendar. Other recipients, however, might have seen their benefits increase. That's because the Social Security Fairness Act has kicked in for public sector workers whose benefits had been reduced in the past. As of July 7, the SSA said it has processed more than 3.1 million payments to those entitled to the retroactive payment adjustments. No more paper checks: Social Security moving to 100% electronic payments this fall Some Social Security beneficiaries who have been overpaid could have their monthly benefits cut in half beginning in late July. Overpayments can happen when the SSA incorrectly calculates a person's benefits, for example, or a beneficiary fails to update a change in income. Improper payments accounted for less than 1% of the almost $8.6 trillion in benefits paid during fiscal years 2015-2022, according to an August 2024 report from the Social Security Administration's Office of the Inspector General. Of the nearly $72 billion in improper payments – most of which were overpayments – issued during that time, Social Security had collected all but $23 billion as of September 2023, according to the SSA. Also, the SSA began sending retroactive Social Security Fairness Act payments in February to public sector workers who could not get Social Security or had reduced benefits because their past work wasn't subject to Social Security taxes, according to the SSA. Those affected recipients included police officers, firefighters, postal workers and public school teachers. The SSA has paid about $17 billion to those beneficiaries. Earlier this year, the agency said the average amount of the retroactive payment was $6,710. Because the SSA pays benefits the month after they are due, some recipients may see the change in their benefit amount in the August 2025 payment, the agency said. Since the act became law on Jan. 5, 2025, the agency has received more than 278,000 new claims from people with pensions from work not covered by Social Security and has processed 92% of these, the SSA said. For some of those who filed a new claim after Jan. 5, 2025, the SSA "may still be working to process your application," the agency said July 10. If you think you are eligible for Social Security Fairness Act benefit adjustments, you can file a claim at If you have gotten a notice from the SSA that you received an overpayment, you can repay the overpayment amount by credit card, online bill pay or check. For more information on repayment of overpaid benefits, visit the SSA website. You can also request a waiver to not repay the overpayment if you believe it was not your fault or if you cannot afford to repay it (or think it is unfair for some other reason), using a form on the SSA website. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@

Social Security change: Overpaid recipients soon see up to 50% in benefits cut
Social Security change: Overpaid recipients soon see up to 50% in benefits cut

USA Today

time20-07-2025

  • Business
  • USA Today

Social Security change: Overpaid recipients soon see up to 50% in benefits cut

For some Social Security recipients, benefit checks might arrive in a lesser amount in the coming months. Meanwhile, some others may have recently gotten a bump in their benefits. The Social Security Administration said in April it would begin sending notices to recipients who got overpayments in the past. After sending out overpayment notices, the SSA would allow 90 days for recipients to seek a waiver or lower repayment rate. Then, the agency would begin withholding 50% of recipients' benefits until the overpayment is repaid (after approximately July 24, at the earliest). Some beneficiaries are set to receive payments on July 23, while the next payment date after that falls on Aug. 1, according to the SSA payment calendar. Other recipients, however, might have seen their benefits increase. That's because the Social Security Fairness Act has kicked in for public sector workers whose benefits had been reduced in the past. As of July 7, the SSA said it has processed more than 3.1 million payments to those entitled to the retroactive payment adjustments. No more paper checks: Social Security moving to 100% electronic payments this fall Social Security Administration taking action on overpayments Some Social Security beneficiaries who have been overpaid could have their monthly benefits cut in half beginning in late July. Overpayments can happen when the SSA incorrectly calculates a person's benefits, for example, or a beneficiary fails to update a change in income. Improper payments accounted for less than 1% of the almost $8.6 trillion in benefits paid during fiscal years 2015-2022, according to an August 2024 report from the Social Security Administration's Office of the Inspector General. Of the nearly $72 billion in improper payments – most of which were overpayments – issued during that time, Social Security had collected all but $23 billion as of September 2023, according to the SSA. Some public sector workers see payments boosted Also, the SSA began sending retroactive Social Security Fairness Act payments in February to public sector workers who could not get Social Security or had reduced benefits because their past work wasn't subject to Social Security taxes, according to the SSA. Those affected recipients included police officers, firefighters, postal workers and public school teachers. The SSA has paid about $17 billion to those beneficiaries. Earlier this year, the agency said the average amount of the retroactive payment was $6,710. Because the SSA pays benefits the month after they are due, some recipients may see the change in their benefit amount in the August 2025 payment, the agency said. Since the act became law on Jan. 5, 2025, the agency has received more than 278,000 new claims from people with pensions from work not covered by Social Security and has processed 92% of these, the SSA said. For some of those who filed a new claim after Jan. 5, 2025, the SSA "may still be working to process your application," the agency said July 10. If you think you are eligible for Social Security Fairness Act benefit adjustments, you can file a claim at If Social Security overpaid you, how do you pay it back? If you have gotten a notice from the SSA that you received an overpayment, you can repay the overpayment amount by credit card, online bill pay or check. For more information on repayment of overpaid benefits, visit the SSA website. You can also request a waiver to not repay the overpayment if you believe it was not your fault or if you cannot afford to repay it (or think it is unfair for some other reason), using a form on the SSA website. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@ What's everyone talking about? Sign up for our trending newsletter to get the latest news of the day

Social Security July 2025: Here's why your stimulus checks are lower than you expected
Social Security July 2025: Here's why your stimulus checks are lower than you expected

Hindustan Times

time04-07-2025

  • Business
  • Hindustan Times

Social Security July 2025: Here's why your stimulus checks are lower than you expected

Starting July 2025, the Social Security Administration (SSA) will start cutting certain beneficiaries' payment benefits to 50%- and no, it's not because of the predicted treasury shortfall. Instead, it is part of the SSA's policy to recover lost funds disbursed in overpayments. SSA's official announcement Representational image.(Unsplash) {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} Back in March this year, the SSA declared that benefits of recipients receiving overpayments after March 27, 2025, will be withheld until the amount is fully reimbursed. The withholding rate was later changed, and an emergency message was posted next month on the official website notifying that payments were to be slashed by 50% for those with outstanding overpayments. {{^usCountry}} {{/usCountry}} {{^usCountry}} {{/usCountry}} 'If the individual does not request a lower rate of withholding, reconsideration, or waiver after the approximately 90-day period, we will recover the overpayment by withholding up to 50 percent of their Title II benefit payment (if there is no fraud or similar fault), until we fully recover the overpayment,' the post read. 'Any new Title II overpayment determinations will have the 50 percent benefit withholding automatically applied for overpayment notices sent beginning April 25, 2025, which is the first day of COM 05.' {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^usCountry}} The SSA reduced the withholding rate to 10% after many people lost their homes when benefits were cut off. {{/usCountry}} {{#usCountry}} The SSA reduced the withholding rate to 10% after many people lost their homes when benefits were cut off. {{/usCountry}} Read More {{^usCountry}} Also read: Social Security age hits 67: Seven must-know updates for your retirement planning What is the outstanding value of overpayments? {{/usCountry}} {{#usCountry}} Also read: Social Security age hits 67: Seven must-know updates for your retirement planning What is the outstanding value of overpayments? {{/usCountry}} {{^usCountry}} According to an August 2024 report from the Social Security Administration's Office of the Inspector General, the agency paid out nearly $72 billion in improper payments during fiscal years 2015-2022. As of September 2023, total uncollected overpayments stood at $23 billion, as per the report. How can overpayments be paid back? {{/usCountry}} {{#usCountry}} According to an August 2024 report from the Social Security Administration's Office of the Inspector General, the agency paid out nearly $72 billion in improper payments during fiscal years 2015-2022. As of September 2023, total uncollected overpayments stood at $23 billion, as per the report. How can overpayments be paid back? {{/usCountry}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} An overpayment typically happens when a system error causes the SSA to pay a person more than what they are due or if a beneficiary fails to update their income details promptly. 'Effective April 25, 2025, overpayment notices will provide a default Title II overpayment benefit withholding rate of 50 percent of the monthly benefit,' the official statement added. This was supposed to come into effect 90 days after issuing the notice, i.e., roughly around July 24. Those who feel that the error was no fault of their own or aren't currently in a financial position to pay back the amount due can raise a query by filling out a form on the website, which might make them eligible for a waiver. {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} {{^userSubscribed}} {{^usCountry}} {{/usCountry}} {{#usCountry}} {{/usCountry}} {{/userSubscribed}} By Stuti Gupta SHARE THIS ARTICLE ON

Social Security change coming in July: Agency begins taking back 50% of overpayments
Social Security change coming in July: Agency begins taking back 50% of overpayments

Indianapolis Star

time29-06-2025

  • Business
  • Indianapolis Star

Social Security change coming in July: Agency begins taking back 50% of overpayments

Some Americans will start getting smaller Social Security payments in July. Don't worry, it's not because of the impending shortfall – although many might already be fretting about that. However, if the Social Security Administration happened to issue you an overpayment in the past, the agency is now seeking to get it back. An overpayment can happen when a beneficiary fails to update a change in income, for instance, and as a result Social Security overpays them. Or the SSA can incorrectly calculate a person's benefits. Social Security paid out nearly $72 billion in improper payments – most of which were overpayments – during fiscal years 2015-2022, according to an August 2024 report from the Social Security Administration's Office of the Inspector General. Improper payments accounted for less than 1% of the almost $8.6 billion in benefits paid. As of September 2023, the agency had $23 billion in uncollected overpayments, according to the report. Social Security: How long will you wait for Social Security help? Why it's anybody's guess Some beneficiaries who have been overpaid could have their monthly Social Security benefits cut in half beginning in late July. In April, the SSA announced it would begin withholding 50% of benefit payments to overpaid recipients. That's a partial retreat from the SSA's initial announcement in March to withhold all of a recipient's benefit until their overpayment was recouped. Previously, the agency had been withholding only 10% of a recipient's benefits to recover overpayments. The SSA had lowered the recovery rate to that level after negative media coverage in 2023 about the agency's collection process, reporting how some had lost their homes after benefits were cut off to make up an overpayment. "Innocent people can be badly hurt," then-Social Security chief Martin O'Malley said, according to the Detroit Free Press, part of the USA TODAY Network. The SSA tried to reclaim overpayments from about 2 million people in the fiscal year that ended September 2023, according to KFF and Cox Media Group, based on data acquired in a Freedom of Information Act request. Under its new policies, the SSA said it would begin issuing overpayment notices on April 25, 2025 and would start withholding 50% of the recipient's benefits after about 90 days (or approximately July 24, at earliest), until the overpayment is repaid. You can repay the overpayment by credit card, online bill pay or check. For more information on repayment of overpaid benefits, visit the SSA website. You can also request a waiver to not repay the overpayment if you believe it was not your fault or if you cannot afford to repay it (or think it is unfair for some other reason), using a form on the SSA website. Mike Snider is a reporter on USA TODAY's Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @ & @mikesnider & msnider@

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