Social Security Plans to Restart Full Overpayment Clawbacks
The Social Security Administration (SSA) plans to return to its policy of withholding up to 100% of recipients' checks to recover overpayments to beneficiaries, reinstating a plan that was abandoned last year when some Americans were shocked to get bills for thousands of dollars.
By law, the agency is required to claw back overpayments, but last year, the agency opted to cap the withholding rate, keeping 10% of the person's monthly benefit check, but on Friday, the agency said it will start to claim 100% of benefit checks to cover new cases of overpayments, reports CBS News.
SSA Acting Commissioner Lee Dudek said that it is the agency's "duty to revise the overpayment repayment policy back to full withholding."