Set to start Thursday is a significant shift in the way the Social Security Administration (SSA) manages benefit overpayments.
Beginning March 27, the Social Security Administration will begin to cut 100% of a person’s monthly benefit in order to reimburse any outstanding overpayment amount. President Biden set the present clawback rate at ten percent.
Over the following ten years, the Office of the Chief Actuary projects that the measure will save around $7 billion.
Set to start Thursday is a significant shift in how the Social Security Administration (SSA) handles benefit overpayments.
Beginning March 27, the Social Security Administration will begin to cut 100% of a person’s monthly benefit in order to reimburse any outstanding overpayment amount. President Biden set the present clawback rate at ten percent.
Over the following ten years, the Office of the Chief Actuary projects the strategy will result in about $7 billion in savings.
Though anyone overpaid after Thursday would “automatically be placed in full recovery at a rate of 100 percent,” the SSA warns that the new withholding rate will not apply to benefits paid before March 27. Payments won’t start until the planned benefits line up with the overpayment level.
Overpaid recipients who cannot afford to lose their regular benefits during repayment are urged to ask for a reduced rate either by phone at (800) 772-1213 or via local Social Security office.
The Department of Government Efficiency of Elon Musk earlier this month revealed that several local Social Security Administration offices all throughout the nation will be closing this year.
The SSA also informed staff of “significant workforce reductions” and stated in a February news statement that about 7,000 people will be let go.
Tuesday, senators questioned Frank Bisignano, a Wall Street experienced businessman, about the recent cuts and the Trump administration’s final intentions for the important SSA.
Democratic Rhode Island Senator Sheldon Whitehouse questioned Bisignano, a self-described “DOGE person,” on recent allegations of allegedly attacking the SSA.
“I consider ‘I’m not going to assault Social Security’ to be a lie. That is therefore the first step—lie about it. Second step is discredit of Social Security. Whitehouse stated, “Trump and [Elon] Musk have been lying loudly about imaginary Social Security fraud, which seems to me to be an attempt to lower public confidence in the program.” “I believe the aim is to discredit the system. Then you send in your Musk characters and start them wreaking havoc in Social Security’s activities to compromise it.
Bisignano said, “My job as a commissioner is to ensure that every beneficiary receives their payments on time, that disability claims are processed in the manner they should be,” when asked whether or not he would defend against such a plan.
According to the Social Security Administration, benefits are issued to around 69 million Americans every month—including children, retired workers, and handicapped workers.