The Trump administration has announced a reversal of the Biden-era policy regarding Social Security overpayment recoveries, restoring the authority to withhold up to 100% of an individual's benefit checks. This policy change, which aims to save the Social Security Administration (SSA) $7 billion over the next decade, could significantly affect seniors relying on these benefits who previously only experienced a 10% reduction. The SSA emphasizes its responsibility to safeguard taxpayer funds while acknowledging that overpayments can occur for various reasons, including administrative errors and beneficiary misreporting. The change will apply to overpayments from March 27 onward, and seniors may face significant financial challenges due to potential benefit deductions.
'We have the significant responsibility to be good stewards of the trust funds for the American people,' said Lee Dudek, SSA's acting commissioner.
The change affects overpayments made from March 27 onward, meaning overpayments made before that won't be impacted.
Social Security overpayments happen for a number of reasons, including beneficiaries misreporting their income or forgetting to update a change in their living situation.
With the Social Security Administration reverting to the original overpayment policy, it's possible that some Social Security recipients could see their benefits reduced to nothing.
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