An expert told The Epoch Times that elderly individuals in the United States affected by overpayment can appeal or apply for exemptions.
Some recipients of social security benefits may face deductions later this month, as part of a new policy implemented by the Social Security Administration (SSA) to recover overpaid benefits.
According to information released earlier by the agency, the SSA updated the deduction rate for overpaid benefits to 50% in April. In certain cases, due to calculation errors or beneficiaries not updating their income information in a timely manner, the SSA had paid out excessive benefits to some recipients.
According to an emergency notice issued by the SSA in April, the deduction of overpaid benefits will officially take effect starting July 24, 2025.
The notice stated, “Any new Title II overpayment decision notice issued on or after April 25, 2025, will automatically apply a 50% withholding rate to benefits.”
“If an individual has both prior overpayments as well as new overpayments, after the end of a 90-day grace period, if they have not requested an appeal, exemption, or negotiated a lower repayment rate, all outstanding overpaid amounts will be subject to a uniform 50% withholding rate.”
This means that the recovery measures will be enforced no later than July 24, marking the 90th day from April 25. Some seniors may have received deduction notices before April 25, implying that the recovery process had begun for them earlier than July 24.
This is not the first time the SSA has attempted to reclaim overpaid benefits.
According to analysis citing the Freedom of Information Act by the Kaiser Family Foundation, in the fiscal year ending September 2023, the SSA tried to recover overpaid benefits from around 2 million individuals.
Shannon Benton, executive director of the Senior Citizens League, told The Epoch Times on July 9 that the organization believes that, according to social security policy, “overpaid funds should be recovered,” but she also “is concerned that any recovery rate could impact financially unstable retirees.”
Benton stated, “For some retirees, regardless of whether it’s a 1% or 100% deduction, any amount of recovery could be catastrophic.”
She mentioned that retirees facing deductions can apply for a lower repayment rate if they cannot afford a 50% deduction; they also “have the right to appeal the overpayment decision or amount.”
“Additionally, if repaying the overpaid funds would cause financial hardship, retirees can request exemptions. These options can provide some relief and flexibility for those struggling to meet the deductions,” Benton added.
Individuals who believe that the SSA’s deductions or other decisions are unjust can initiate the appeal process through the SSA’s website by filling out a Request for Reconsideration form and submitting it to the nearest SSA office by mail, fax, or by calling the SSA.
In certain circumstances, individuals can also request a hearing with an Administrative Law Judge, seek a review by the SSA Appeals Council, or file a lawsuit with the Federal District Court.
To avoid direct deductions, some seniors can repay the SSA online, by credit card, or by check.
The SSA stated on its website, “If you receive a letter stating that you received money you weren’t supposed to, please return it within 30 days.”
“When we can’t accurately calculate your benefits, overpayments happen. This usually stems from incorrect or incomplete information that we have. Failure to promptly inform us of changes in your life, such as work capabilities, living situations, marital status, or income, can lead to this situation.”
Most social security beneficiaries will receive payments according to the standard schedule:
– Those who began receiving benefits before May 1997 should have received payments on July 3 (Thursday);
– Individuals born between the 1st and 10th of the month should have received payments on July 10 (Wednesday);
– Individuals born between the 11th and 20th of the month should have received payments on July 16 (Wednesday);
– Individuals born between the 21st and 31st of the month should receive payments on July 23 (Wednesday).
The original article titled “Social Security Checks May Be Smaller This Month, but Some Seniors Have Options” was published on The Epoch Times website.