About half of what you anticipated from your Social Security check? The explanation is related to a modification in the policy of the Social Security Administration.
If an individual has received an overpayment of benefits, the federal agency will begin withholding 50% of their check in July. Officially referred to as the Treasury Offset Program, the withholding will continue until the additional benefits are paid back.
After being halted during the COVID pandemic, overpayment withholdings were reintroduced two years ago, but at a reduced rate of 10%. Compared to an administration plan that was proposed in March and would have delayed 100% of a check until the overpayment was settled, the 50% rate is lower.
Beginning on April 25, SSA began issuing overpayment letters, which provided individuals with ninety days’ notice of the withholding. About July 24, that notification will expire.
Acting Social Security Commissioner Lee Dudek stated at the time of the transition that restoring TOP collections was an essential step in our dedication to being responsible with public money and maintaining the integrity of our programs.The most common causes of overpayments are incorrect estimates of what someone is entitled or instances in which the receiver neglects to disclose changes in their income.
According to USA Today, between 2015 and 2011, Social Security disbursed around $72 billion in erroneous payments, primarily overpayments.Less than 1% of the over $8.6 billion in benefits paid went toward that amount. According to a federal report USA Today quoted, the agency owed $23 billion in unpaid overpayments.
What if you can t repay what s owed?
Those who are unable to pay back can request a payment plan from SSA or, if they believe they were not at fault, they can appeal or request a waiver.More on that procedure can be found here.
