The Trump administration’s measures since taking office have been swift. In March, the Social Security Administration (SSA) announced benefit cuts, meaning the SSA would begin to liquidate all beneficiaries’ overpayment balances. The withholding rate for beneficiaries with an overpayment balance was set at 100% of the benefit amount, although after several complaints, the amount was lowered to 50%. According to executive orders, July is the month designated to begin these liquidations.
The withholding rate would be limited to 50% of the total benefit
It has been reported that beneficiaries with an overpayment balance were notified of this last April. Following this initial announcement, an emergency SSA meeting was held a few weeks later, and the conclusion reached, as previously stated, was that the withholding rate would be limited to 50% of the total benefit.
To be clear, the terms detail that “if the individual does not request a lower withholding rate, reconsideration, or waiver after the approximately 90-day period, the overpayment will be recovered by withholding up to 50 percent of their Title II benefit payment (absent fraud or similar misconduct), until the overpayment is fully recovered”.
The SSA attempted to reclaim overpayments from approximately 2 million people in 2023
All of this has provoked a strong reaction, especially due to the dependence of many beneficiaries on these monthly checks. The news coming from the Trump Administration regarding legislative developments seems to be directed only at a segment of the population. The conclusion is that starting this month, Social Security will begin withholding up to 50% of benefits from people with outstanding overpayments.
“The SSA attempted to reclaim overpayments from approximately 2 million people during the fiscal year ending September 2023,” according to KFF and Cox Media Group, which determined this using data obtained through a Freedom of Information Act request.
Let’s remember that among the SSA’s new features is its transition to the digital age. The administration has announced that in the coming months, the digital health card will be available. That is, beneficiaries will be able to access the card on their smartphones without having to present the physical card. On the one hand, the paper card won’t disappear or stop working, and on the other hand, by having the card on your phone, the idea is to streamline procedures and make Social Security’s operations more efficient, especially in the bureaucratic system.
