This lawmaker says US seniors 'shouldn't have to pay' for Social Security overpayment errors — especially from 'decades ago.' Here's what he wants so aging Americans don't get 'blindsided'

Clawback tactics

The SSA under President Donald Trump has gotten more aggressive about collecting on overpayments.

As of March 27, the agency has returned to its 100% overpayment withholding policy, meaning the agency can keep your entire monthly benefit until reimbursement is complete. This applies only to new overpayments. Previously, the withholding rate was capped at 10% due to potential hardship of beneficiaries.

The SSA’s Office of the Inspector General reported last year nearly $72 billion in improper Social Security payments were made from fiscal years 2015 through 2022. Most of those were overpayments, and account for less than 1% of the benefits paid over that seven-year period. By the end of fiscal year 2023, the SSA had an uncollected overpayment balance of $23 billion.

Now, according to the SSA, the switch in policy is expected to increase overpayment recoveries by $7 billion over the next decade.

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Overpayment tips

If you’re looking to avoid any surprises when it comes to paying back the SSA, you should be monitoring your Social Security account closely to track payments and earnings history. If you receive statements in the mail, make sure you don’t neglect them.

If you’re worried about an overpayment in the past, consider reaching out to a financial adviser to help you sift through these accounts and report any mistakes to the SSA.

An adviser can also help you understand how much you can expect in benefits every month or if there’s any changes to the way you’re paid so that you can prepare in advance. If your adviser can spot any underpayments from the SSA, it’s recommended you report this to the agency as well.

If the agency reaches out to you via mail to alert you about an overpayment, you have 30 days to pay the amount due before collection starts. You can also file an appeal if you don’t think you’ve been overpaid or believe the overpayment amount is incorrect.