By Victoria Richardson

In March 2024, the Social Security Administration (SSA) changed its overpayment rules so no more than ten percent of a recipient’s monthly check could be withheld to repay an overpayment. Starting March 27, 2025, the SSA has reversed this policy. People who receive SSDI or OASDI may now see 100 percent of their monthly check withheld for an overpayment.

What is an overpayment?

Sometimes a simple mistake can result in recipients of disability benefits or retirement benefits getting more than they are technically owed.  This can happen when a recipient doesn’t report changes in their income or in their living situation, but it can also happen due to administrative mistakes by SSA. 

When a recipient is overpaid for one or more months, even if it’s due to an Agency error, they must pay it back. Because of poor staffing at SSA and system issues, it can be years before an overpayment is recognized, leaving recipients on the hook for thousands of dollars.   

How are things changing?

Last year, public outrage over SSA’s overpayment policies compelled the Agency to make changes. SSA made a change last spring so no more than ten percent of a recipient’s monthly check could be withheld to repay an overpayment. However, effective March 27, 2025, this change was walked back. Now SSA will go back to automatically withholding 100 percent of a recipient’s monthly check for an overpayment—even if SSA is at fault for the overpayment.

More than 7 million Americans 65 and older receive at least 90 percent of their income from Social Security. The impact of missing even one or two monthly payments can be catastrophic.     

Okay, now I’m worried! What can I do to protect myself?

This change will only apply to those receiving SSDI or OASDI. It will not apply to those receiving SSI benefits. The new rule will also only apply to overpayments assessed as of March 27, 2025.

You have the right to appeal or request a lower payment. Read your notices carefully! SSA is understaffed and makes mistakes. It is possible that you do not owe what they say you owe because they did not consider all relevant information. If this is the case, you can complete a “Request for Reconsideration” form (SSA-561). If you think you likely owe what SSA says you owe but it is due to SSA’s error and not your own, you can request a waiver using the “Request for Waiver of Overpayment Recovery” for (SSA-632-BK). You can call (1-800-772-1213) to request a waiver for an overpayment that is for $2,000 or less.   

If you cannot afford the recovery rate that SSA is demanding, complete a “Request for Change in Overpayment Recovery Rate” form (SSA-634).  

Also, be aware of the following changes that may impact your monthly payment amount that should be reported to avoid a potential overpayment assessment (note that this list is not exhaustive):  

• Changes in income even if it is unearned, such as a pay out from a settlement, life insurance policy, or inheritance;  

• Workers’ compensation payments;   

• Significant changes in your work schedule (increase in hours) or wages;  

• Changes in address; and 

• Certain changes in living arrangement (Living Arrangements | Supplemental Security Income (SSI) | SSA) 

It is also advisable to keep track of significant and unexpected increases in your monthly payments that may be due to SSA error.  

Please note: This post includes general information and is up-to-date as of April 8, 2025. There may be further updates to SSA’s policy. You can visit SSA’s official blog for more information. We may also share additional resources below to reflect updates.

Victoria Richardson is a Healthcare and Public Benefits Attorney at Virginia Poverty Law Center.

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