Title II Overpayments Return to 100% Withholding
The Social Security Administration (SSA) has announced a significant change that will impact many Social Security beneficiaries. Starting March 27, the SSA will increase the default overpayment withholding rate to 100% of a person’s monthly benefit.
What You Need to Know:
- Full Withholding for New Title II Benefit Overpayments: Starting March 27, 2025, SSA will withhold up to 100% of a beneficiaries check to repay any new overpayments on Title II benefits. Notices about this new rule will be mailed out starting on this date. Title II benefits include SSDI, SS Childhood Disability Benefit (formerly DAC), and Disabled Widows Benefit.
- Current Overpayments: If a beneficiary was overpaid before March 27, 2025 withholding rates will not change.
- Supplemental Security Income (SSI): The withholding rate for SSI overpayments remains at 10%.
Potential Impact on Beneficiaries:
While this change aims to protect taxpayer funds, it may have significant implications for beneficiaries. Withholding 100% of a monthly benefit could create financial hardship for those who rely on their Social Security payments for essential expenses like housing, food, and medical care.
Know that You May Have Options:
If a letter of overpayment is received from Social Security, know that there may be options to explore. BenefitU has provided an overview of these options at this link. If you wish to appeal a decision made by Social Security there are timelines that may apply, which will be stated in the letter sent to the beneficiary, guardian, or representative payee.
Support is Available:
If aged 14 or older and enrolled in Developmental Disabilities Community Services (DDCS), BenefitU offers benefit planning support to help consider what options may best fit your situation. To schedule an intake appointment, please click here. If you are not eligible for BenefitU planning services, click here for other possible options for support.
Tips for Minimizing Overpayments:
Although not always avoidable, BenefitU suggests taking the following steps to help reduce the chance of being overpaid by Social Security:
- Inform Social Security of employment start and end dates, as well as job title changes as soon as possible
- Report wages to Social Security on a monthly basis
- Keep a record of your wages / paystubs
- Work with a benefits planner to consider Work Incentives that may apply to your situation
- Update Social Security if you become married, divorced, or have a legal name change
- Inform yourself on how wages impact your SSI or Title II Cash Benefits.
For a full list of changes that must be reported to Social Security as well as guidance on how to report these changes, visit this page: Title II: What Do I Report to Social Security
