Navigation Social Security to Reinstate Overpayment Recovery Rate
On March 7, 2025, Social Security issued a press release stating that it will increase its default overpayment withholding rate for Social Security benefits to 100 percent of a person’s monthly benefits.
In March of 2024, Social Security had announced a new policy wherein it would withhold only 10% of a beneficiary’s total monthly benefit or $10 whichever was greater in order to recoup any type of overpayment. However, beginning March 27, 2025, that policy has been rescinded.
Effective March 27, 2025, Social Security will begin mailing notices of the new 100 percent withholding rate. This withhold rate change will apply to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27th will not change. The withholding rate for Supplemental Security Income overpayments will remain at 10 percent of the beneficiary’s monthly benefit. Beneficiaries who are overpaid after March 27, 2025 will automatically be placed in full recovery at a rate of 100 percent of their Social Security payments.
