Getting overpaid by Social Security will soon come at a high cost, with the agency saying Friday it’s reinstating a plan to take 100% of a beneficiary’s monthly check to claw back the money, up from the current 10% rate.
The policy change highlights an issue that had caused financial hardship for some beneficiaries in years past, prompting the Social Security Administration under the Biden administration to limit clawbacks to 10% of a person’s monthly benefit check.
But the Trump administration’s reversal could lead to deep financial strain for some senior citizens who find themselves caught up in the overpayment issue. While overpayments are rare, they are often the result of Social Security’s own miscalculations — and can come as a surprise to beneficiaries, given that it can be difficult to know if you have been overpaid.
“People generally do not know they are overpaid — you were receiving benefits, assuming that the government was giving you the proper amount,” Nancy Altman, president of Social Security Works, an advocacy group for the benefit, told CBS MoneyWatch. “People are really desperate when they get a letter from the government saying, ‘You owe $10,000’ that they don’t have.”
The Social Security Administration didn’t respond to requests for comment.
Here’s what to know.
How many people get overpayments from Social Security?
Fewer than 1% of the Social Security Administration’s payments are what the agency terms as “improper,” which can…
