What 100% Benefit Withholding Means

A major change in how the Social Security Administration handles benefit overpayments takes effect Thursday. It could dramatically impact millions of Americans who rely on monthly Social Security payments.

As of March 27, the SSA will begin withholding 100% of a recipient's monthly benefit to recoup any overpaid funds. This change replaces the current 10% clawback rate put in place by President Biden.

The Office of the Chief Actuary estimates the change will save the government $7 billion over the next decade . But advocates say the policy could create serious hardship for vulnerable seniors.

Anyone overpaid after March 27 will see their entire benefit withheld each month. This will continue until the SSA recovers the full amount. Payments will resume only after the overpayment is fully repaid.

⁘We have a duty to revise the repayment policy back to full withholding to safeguard taxpayer funds,⁘ said Lee Dudek, acting SSA commissioner.

⁘This is especially unfair to seniors who don't have outside help managing their finances,⁘ said Shannon Benton of the Senior Citizens League.

The agency also plans to lay off about 7,000 workers , which has raised fears about delays in processing claims and offering help.

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