Social Security's overpayments policy takes effect Thursday. Experts say it could hurt seniors. [View all]

Source: CBS News

Updated on: March 26, 2025 / 1:39 PM EDT


Some Social Security recipients could soon find themselves in the crosshairs of a policy that advocates for seniors say could cause financial hardship for many older Americans. Starting Thursday, the Social Security Administration will begin clawing back overpayments from the retirement program by taking 100% of a beneficiary's monthly check until the money is repaid, up from the prior rate of 10%.

The policy will impact new cases of overpayments starting on March 27. The benefits withholding rate for people who were overpaid before that date will remain at 10%. The agency's 100% recovery rate was announced earlier this month by SSA Acting Commissioner Lee Dudek, who has worked with Elon Musk's Department of Government Efficiency, or DOGE, to cut costs at the agency by firing thousands of workers and closing field offices.

Dudek has described the 100% clawback rate as part of the agency's responsibility to recover overpaid funds. But advocates for older Americans say the policy will cause financial distress for many people, especially those who rely on the program for all or most of their income.

"If an overpayment is being made, that means the Social Security Administration is withholding 100% of their payment for however long it takes to repay the agency — and they are without money to pay for food" or other living expenses, Dan Adcock, director of government relations and policy for the National Committee to Preserve Social Security and Medicare, an advocacy group, told CBS MoneyWatch.

Read more: https://www.cbsnews.com/news/social-security-benefits-clawback-overpayment-100-percent-march-27-doge/