If you are on SSI, there is no need to worry. The Social Security Administration has made an important announcement that will affect millions of Americans on benefits. The Administration will reinstate the overpayment recovery rate, but not to those on Supplemental Security Income.
As a matter of fact, this policy supports fiscal responsibility. In order to increase efficiency, the default overpayment withholding rate for Social Security beneficiaries will soon be 100% of the recipient’s monthly benefit payment.
SSI withholding rate for overpayments
The Social Security Administration has made it clear. The Supplemental Security Income overpayment rates will remain unchanged. Actually, it will continue at 10%.
Therefore, there will be no increase in the SSI overpayment rates like in Social Security retirement or disability benefits. The new rate for Social Security recipients will take effect on March 27, 2025.
Therefore, any overpayment that happens after March 27, 2025, will have to face a 100% overpayment recovery rate. Thus, there is considerable difference if you are on Supplemental Security Income or on Social Security.
Not on SSI payments?
If you are not on Supplemental Security Income but on Social Security, you will receive a mailing notice from the Administration. This notice will inform you of the new overpayment recovery rate.
Bear in mind that the current rate is just 10%, so there will be a considerable boost. Those overpayments before March 27, 2025, will not change and no action is required.
If you are on SSI payment or on Social Security benefits, report any changes that may affect your eligibility. For example, if you get married, you must report it to SSA.
Those Social Security and SSI recipients with a disability must report the Administration if they go back to work, get married, or if their health improves. Reporting these and other changes will prevent you from having to face overpayments.
