New Social Security clawback policy starts this week: What to know

[Yo_Mama_Been_Loggin]

(NEXSTAR) – A major change in how the Social Security Administration (SSA) handles benefit overpayments is set to kick in Thursday.

Starting March 27, the Social Security Administration will start to withhold 100 percent of a person’s monthly benefit to recoup any outstanding overpayment amount. The current clawback rate, which was set by President Biden, is 10%.

The Office of the Chief Actuary estimates that the policy will translate to roughly $7 billion in savings over the next decade.

“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, acting commissioner of Social Security, in a statement. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump administration, to properly safeguard taxpayer funds.”

https://www.yahoo.com/news/social-security-clawback-policy-starts-233050256.html

Whose fault is it that there's an overpayment? That should determine the clawback rate.

[Passages]

1. Are they kidding?? People were aware this would happen to them?

Anyone here who receives SS each month perhaps can comment if they were warned about it, please.

Holy cow, what will some do with no money??

[elocs]

12. Frankly, I will never again have faith or trust in Social Security. It no longer has security.

SS will be all the income I have. Fortunately, at age 72, I am in good physical condition with no aches or pains. Although poor, I've enjoyed my retirement and not working but it looks like I will need to find a job.
But at least I'll be alive unlike the many elderly who will just end up dying as a result of what is happening.

[Passages]

14. I am so sorry, it should not be this way.

[Passages]

2. America is at rock bottom.

Unbelievable.

2023

They missed Halloween, but these Social Security Horror Stories are too scary for trick-or-treaters anyway.

BU economist Laurence Kotlikoff and syndicated financial columnist Terry Savage launched their new book Sunday night with an appearance on CBS’ 60 Minutes. Despite the title, it’s not about zombie grannies, but rather an exposé of efforts by the Social Security Administration (SSA) to claw back a fortune in supposed overpayments from roughly a million Americans every year. The SSA wants them to pay the money back—often within 30 days—even though Social Security made the errors in the first place.

“It can happen to anyone, and it can take years, even decades, for these unexpected debts to suddenly come to light,” 60 Minutes correspondent Anderson Cooper said during the broadcast. “Few people realize it, but Social Security’s mistakes are your responsibility.”

“It goes against good conscience,” says Kotlikoff, a William Fairfield Warren Professor and College of Arts & Sciences professor of economics. “People are 87, living just off of Social Security, and receive a $30,000 bill. And a couple of weeks later, if they haven’t paid it back, their check is cut. Or eliminated. This is horrific.”
https://www.bu.edu/articles/2023/social-security-clawbacks-are-a-year-round-horror/

[GoodRaisin]

3. This is the beginning of the stealing.

I’d be willing to bet lot’s of “innocent mistakes” about to happen. Might be time to think about moving our money to a different account. Just leave the current account open to receive SS deposits, with no more money in that account they can steal.

[MichMan]

4. Same policy as existed before a year ago

That was always the previous policy. It wasn't changed until March 2024

[Passages]

5. The policy was deemed ok when it was SS who made the majority of the mistakes?

Disgusting.

[MichMan]

6. If you see an unexpected amount show up in your deposit...

Don't rush out and spend it

[Passages]

7. I'm not a senior. I am concerned for all those who have been

taken advantage of by a system that is clearly incompetent. Make the repayments easy for them, not painful.

[drray23]

8. Big difference is the rate of clawback.

Previously if they determined they overpaid, they would claw back taking out 10 % of your monthly payment until it's paid off. Starting now, it's 100 % , meaning they take off the entire monthly payment until it's paid off.

This will leave people starving and homeless.
On top of that, I would not be surprised if they mistakenly clawback from people who never were overpaid given how incompetent they are.

[MichMan]

10. The 10% wasn't the rule until March 2024

Prior to that it is the same as what they are proposing now

[dweller]

9. You can check if it involves you

At SSA … look at you benefit payments and click the overpayment tab to see if it shows any overpayments … i checked mine the last time I logged in and it showed $0 overpayments



✌🏻

[Stinky The Clown]

11. Cruelty is the point.

[Ms. Toad]

13. This is going to be a royal pain to track.

My spouse received overpayments due to an innocent mistake on the initial application.

She was subject to windfall elimination, which we knew. We disclosed every single thing they asked for. Unfortunately, her situation is complex enough that it didn't ask a question that would have resulted in an additional WEP reduction. They sent a routine inquiry when she started taking distributions from one of the state pensions she disclosed. That should have been taken into account by them any way when her payment amount was set - since the standard was "receiving or entitled to receive," but it apparently wasn't. So she dutifully filled out the change papers and reviewed a second disclosure paper they sent which was not applicable to this account, but which (finally) asked the question they should have asked on the initial application.

Those two combined resulted in about a $600 reduction (i.e. an overpayment). They notified us in November of the adjustments to repay it.

Then WEP elimination was passed, so we only actually owed about 40% of it, since the rest came after 1/1/2024.

So, here we are sitting in recalculation limbo. No one time repayment of WEP. No new payment calculated for April.

And I'll bet they will take 100% of her checks for 100% repayment of the WEP - when we only owed 40%. When they finally recalculate the one time WEP repayment, the new monthly amount (not taking WEP into account), the repayment of 100%, the repayment of 60% . . .

BUT - we can afford to wait for the dust to settle. For us, it will only be a royal pain - not a disaster which threatens to leave us homeless, unfed, or without medical care. Unlike most on Social Security, it is not our only source of income. They should not be playing games like this with people's lives.

[leftyladyfrommo]

15. Just keeping the monkeys frightened.

Frightened people are docile.

[BadgerKid]

16. All I know is payments made after date of death are reversed already. Nt