Social Security Reinstates Harsh Method of Clawing Back Overpayments

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The Social Security Administration is reverting its method of clawing back overpayments to a system the Biden administration replaced due to its cruelty.

Under Biden, SSA began reclaiming overpayments by holding back 10% of benefits until the overpayments were repaid.

As of 27 March 2025, SSA will revert to holding back up to 100% of benefits until repayment is complete. This applies even when the overpayment was SSA’s fault, not the beneficiary’s fault. It was replaced by the 10% system after outrage that it caused innocent beneficiaries to lose their homes.

The change will not apply to beneficiaries who are currently in the midst of repaying overpayments. It will also not apply to Supplemental Security Income recipients.

Staffing at SSA is at a 50 year low. Acting SSA Commissioner Leland Dudek plans to fire 7000 of the staff, about 12% of SSA’s workforce, and is closing many field offices. Waiting times for callers to SSA are already measured in hours.

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