Social Security benefits recipients receive overpayments from time to time for several reasons such as a change in income, marital status, or living arrangements that are not promptly reported or processed. For the past year, Social Security beneficiaries have received a break from the policy of withholding 100 percent of benefits if the beneficiary was overpaid — a 10 percent withholding rate was set in early 2024. Effective March 27, 2025, the Social Security Administration (SSA) increased the default overpayment withholding rate to 100 percent of a beneficiary’s monthly benefit. Estimates from the Office of the Chief Actuary are that this change will result in a program savings of $7 billion in the next 10 years.

Notice and application of new withholding rate

SSA will mail notices to beneficiaries regarding the new 100 percent withholding rate rather than the adjustment to 10 percent. “The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 [2025] will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.” See Social Security to Reinstate Overpayment Recovery Rate blog 3.7.25.

Request for change/appeal

If you are an SSA beneficiary and are overpaid after March 27, 2025, you will automatically be placed at a 100 percent recovery rate. If you cannot afford full recovery of the overpayment, you may call Social Security at 1-800-772-1213 or their local office and ask for a lower rate of recovery and fill out a Request for Change in Overpayment Recovery Rate. If you do not agree with the overpayment, or believe that the overpayment amount is incorrect, you can appeal, which is known as request a reconsideration. Your Right to Question the Decision Made on Your Claim provides information on when to appeal, how to appeal, continuation of payments, right to representation, checking the status of your appeal and how to contact SSA.

Lookback period for overpayments

Currently, SSA can seek repayment for overpayments indefinitely. There have been concerns regarding these recovery practices as there have been collection notices in the tens of hundreds of thousands of dollars. Legislation has been introduced in the House and the Senate which limits the SSA’s overpayment lookback period to 10 years. This would cap the timeframe during which SSA can reclaim funds, absent fraud or criminal activity.

Be aware of your payments and report any changes in circumstances promptly to the SSA to avoid any potential overpayment.