04/07/2025
Important Updates to Social Security Overpayment Rules in 2025 – What You Need To Know
If you have applied for or are currently receiving Social Security Disability benefits, you should be aware of significant recent changes made by the Social Security Administration (SSA) regarding overpayment.
Understanding Overpayments
An “overpayment” occurs when the Social Security Administration mistakenly pays you more benefits than you are entitled to receive. Sometimes this is due to administrative errors on their end, such as improperly processing your claim. In other cases, it may result from not reporting a change in your status promptly.
Previous Overpayment Policy
In 2024, Social Security Commissioner O’Malley introduced a policy to ease the burden of overpayment recovery. This policy limited the SSA to withholding only 10% of your monthly benefits to recover any overpayment. This approach allowed beneficiaries to continue receiving 90% of their benefits, ensuring they could maintain their livelihood during repayment.
Major Policy Reversal Effective March 27, 2025
Unfortunately, this policy was reversed effective March 27th, 2025. Now, the Social Security Administration can withhold **100%** of your monthly benefit payments until the entire overpayment amount has been fully recovered. This drastic change could have significant financial implications for recipients dependent on these benefits.
SSI Beneficiaries Unaffected
It is important to note that this change does not affect beneficiaries of Supplemental Security Income (SSI). SSI recipients remain protected by a maximum withholding limit of 10%, due to the financial necessity-based nature of SSI benefits.
What Should You Do if You Receive an Overpayment Notice?
If you receive an overpayment notice from the SSA:
- Request a waiver: You have the right to ask the SSA to consider waiving the overpayment.
- File an appeal: You can also appeal the decision.
- Seek legal advice: Consulting with an experienced Social Security disability attorney can provide critical guidance and improve your chances of a favorable outcome.
At Deuterman Law Group, we specialize in navigating complex Social Security issues, including overpayment cases. If you’re facing an overpayment situation, reach out to our team for expert legal assistance.
Stay informed, and we’ll continue to keep you updated on any further developments regarding your Social Security benefits.
