This will provide significant relief to millions of Social Security pensioners. The Social Security Administration (SSA) set the maximum on overpayment clawbacks at 50% of monthly payments as of April 25, 2025.
The SSA had the authority to withhold 100% of a person's check prior to this modification.
Why this adjustment was made by the SSA After months of public pressure, the adjustment was made. The outdated regulations were deemed unjust by lawmakers, advocacy organizations, and impacted beneficiaries.
In the past, the SSA may confiscate a person's whole check until the outstanding debt was paid if it determined that they were overpaid, even if it was due to an agency error.
The agency aims to put "fairness and compassion" first, especially for the elderly and those on fixed incomes, according to SSA Commissioner Martin O'Malley.
How the 50% recovery cap operates Unless the individual agrees to pay more, the SSA can now only withhold up to 50% of a person's monthly benefit when they owe an overpayment.
For instance, the SSA could only withhold $900 out of your $1,800 monthly Social Security check. It might have taken the full $1,800 prior to the rule change.
All new overpayment decisions made on or after April 25, 2025, are subject to this new cap. A lot of existing repayment programs are also being modified.