The Social Security Administration is reversing a policy change on recovering overpayments that raised concerns it could hurt tens of thousands of beneficiaries.
In an April 25 "emergency message" to employees, Social Security cut its overpayment clawback rate to 50% from 100%.
After SSA began recovering erroneous overpayments to Social Security recipients on March 27, it took 100% of a beneficiary's monthly check until the money was recovered, up from 10%.
SSA Acting Commissioner Lee Dudek, who has worked with Elon Musk's DOGE to decrease agency expenses, ordered the 100% clawback policy. Dudek stated in a March 7 press release that the modification was necessary to "properly safeguard taxpayer funds."
Many beneficiaries are unaware they were overpaid until they receive notices from the Social Security Administration, making the agency's move to recover overpayments a pain point.
Social Security's inspector general revealed that 73,000 2022 overpayments were attributable to computation errors, not beneficiary error.
"SSA's automated systems couldn't calculate benefit payments due in some cases, and the Agency didn't give personnel a complete tool to manually calculate them. The inspector general reported that employees can make mistakes without automation technologies.
The Biden administration restricted the clawback rate at 10% last year after allegations that the 100% clawback rate had forced some seniors and disabled people into financial difficulty, including homelessness. The agency reinstated the 100% rate in March after a year at 10%.
The government's increased effort to collect overpayments puts one-third of Social Security claimants at jeopardy, as they depend on their monthly benefit check for at least 75% of their income. Some elderly told CBS News they couldn't afford rent, food, and other necessities.