US EditionTrump administration backs off plan to take 100% from Social Security payments in clawback
- The Social Security Administration announced in March 2024 a plan to withhold 100% of many beneficiaries' monthly payments to recoup alleged overpayments.
- The plan followed long-standing agency practices of clawing back overpaid funds, but reports differ on the exact withholding limits and led to criticism due to hardship on vulnerable beneficiaries.
- After a 2023 investigation revealed millions received overpayment notices causing severe hardship including homelessness, the agency partly reversed the policy to withhold 50% of benefits instead of 100%.
- Acting Commissioner Lee Dudek stated in an April 25 emergency message that the agency will default to withholding 50%, citing a duty to safeguard taxpayer funds despite warnings this still causes hardship for many dependent beneficiaries.
- This partial rollback reflects ongoing policy shifts amid criticism of prior 'clawback cruelty,' with advocates warning that even 50% withholding risks severe financial distress for disabled and older beneficiaries.
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Best Indian American Magazine | San Jose CA | India CurrentsTrump Administration Retreats From 100% Withholding On Social Security Clawbacks
San Jose, CA (India Currents)
Social Security Cuts Overpayment Withholding Rate to 50 Percent Down From 100 Percent - The Thinking Conservative
SSA has announced a new policy that reduces the default withholding rate to 50 percent for recovering Social Security benefit overpayments under Title II. The post Social Security Cuts Overpayment Withholding Rate to 50 Percent Down From 100 Percent appeared first on The Thinking Conservative.
Social Security Cuts Overpayment Withholding Rate to 50 Percent Down From 100 Percent
The Social Security Administration (SSA) has announced a new policy that reduces the default withholding rate to 50 percent for recovering Social Security benefit overpayments under Title II, the federal program covering retirement and disability insurance. The change, outlined in an “emergency message” dated April 25, comes less than a month after the agency raised the withholding rate to 100 percent of monthly benefits—up from a prior 10 perce…
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