En esta noticia
The Social Security Administration (SSA) withholds up to 50% of the monthly payment of retirees who received an overpayment of benefits and did not respond within 90 days of the notice. The measure applies to retirement, survivors, and disability benefits (Title II).
This 50% rate is the default option for those who do not respond on time. Previously, the SSA applied a 10% withholding and then 100%, until it set the current scheme as an intermediate point.
Why does Social Security withhold 50% of retirees’ payments?
An overpayment occurs when the SSA deposits more money than is due. This can happen if the beneficiary does not report a change in their situation or if the agency makes an error when processing the data.
When the SSA detects the overpayment, it sends a notice requesting full and immediate repayment. If there is no response within 90 days, it automatically withholds 50% of the monthly payment until the debt is recovered.
Among the most common causes of an overpayment are:
- Failing to report a change in income or employment status
- Failing to report a change in marital or living status
- Data entry or processing errors by the SSA
- Delays in updating beneficiary information
The rate is different for other programs
This 50% applies only to Title II benefits. In Supplemental Security Income (SSI), the withholding for overpayment remains at 10%.
How does this withholding affect retirees, and what can they do?
Losing half of the monthly income can cause immediate financial hardship for those who depend on that money for housing or food. Experts warn that this can lead to a risk of homelessness.
Beneficiaries can negotiate the amount before the automatic 50% is applied. To do so, within 90 days, they must file a reconsideration, a waiver, or a request to reduce the rate.
What can a beneficiary do if they received an overpayment notice?
- Request a reconsideration if the overpayment is incorrect.
- Request a full waiver due to financial hardship.
- Negotiate a withholding rate lower than 50%.
- Submit the request within 90 days of the notice.