Unpaid Debts: Why Some Social Security Checks Are Shrinking

Money Explainers

Half of some Social Security benefits could be withheld starting July! Find out why overpayments are causing this drastic measure. Billions in Social Security overpayments mean some recipients will see 50% of their checks withheld. Are you affected? Act now! Don't lose half your Social Security benefits! Learn about the 90-day action window for overpayment notifications before the July deadline. #SocialSecurityCrisis #BenefitOverpayments #SSARecovery

Transcript

00:00Some Social Security recipients could indeed see half of their benefits withheld as early as July.

00:06This isn't a general reduction in benefits for everyone, but a specific measure by the Social

00:10Security Administration to recover past overpayments. So, why are these overpayments

00:17happening and what does it mean for beneficiaries? Reasons for overpayments, overpayments occur for

00:23two primary reasons beneficiaries incorrectly reporting their financial situation. The SSA

00:29making an error in their calculations or the distribution of funds. To give you an idea of

00:34the scale, between 2015 and 2022, the SSA made almost $72 billion in improper payments,

00:41with most of these being overpayments, according to a report from the Office of the Inspector General.

00:47The SSA Yes Policy for Recovery, the Social Security Administration announced in April that it would

00:52withhold 50% of benefit payments from those who were overpaid. It is worth noting that the agency

00:58had initially stated in March it would withhold 100% of benefit checks, but later adjusted this to

01:0350%. Notification and Action Window If you were among those who received an overpayment,

01:09you should have received a written notice from the SSA, and there should also be a message posted

01:13to your record. Once notified, beneficiaries are given a 90-day window to take action. During this

01:21period, they can request a waiver. Ask for a reconsideration of the overpayment. Request a

01:27lower rate of withholding. The July deadline, for a significant number of affected beneficiaries,

01:33this crucial 90-day period expires in July. Consequence of no action, if individuals do not

01:40take any action within this 90-day window, the SSA will begin withholding up to 50% of their benefits at

01:45the end of that period. This withholding will continue until the overpayment is completely

01:50recovered. In essence, if you've been notified by the SSA about an overpayment, it is critical to

01:56respond. And take appropriate action before July to avoid seeing half of your monthly Social Security

02:02benefits automatically withheld. Money Explainers

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