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 percent—to recoup overpayments. The initial sharp increase drew criticism from some lawmakers and advocates, who warned that full withholding could harm some lower-income Americans who rely on Social Security to meet basic needs.
