Navigating Social Security Disability (SSDI) or Supplemental Security Income (SSI) benefits can be complex—and unfortunately, mistakes happen.
How do SSDI overpayments occur?
Overpayments can occur for various reasons, often through no fault of the recipient. This can happen, for instance, if someone returns to work for more than nine months without notifying Social Security or even if they do report their wages, Social Security sometimes continues payments in error. Overpayments also happen when an SSI recipient or their family earns wages or receives funds that unintentionally push them over asset limits.
Will Social Security stop paying me because of an overpayment?
Historically, overpayments could mean a full withholding of current benefits until the debt was cleared—a harsh penalty for many who rely on these payments. But here’s some good news: Social Security is changing how it handles overpayment collections.
Social Security’s new default rate for repayment
On March 25, 2024, Social Security Commissioner Martin O’Malley announced a policy shift. Instead of withholding 100% of a disability benefit to recover an overpayment, Social Security’s default rate for repayment will now be capped at 10% of a monthly benefit. This new policy, which takes effect on April 15, 2024, is a win for recipients, offering much-needed breathing room for those repaying overpayments.
If you’re currently dealing with an overpayment, we recommend calling Social Security to discuss adjusting your repayment arrangement to this new rate. This change represents a significant step toward a fairer, more supportive system for all Social Security Disability and SSI recipients.
Social Security Overpayment Resources:
- SS Overpayment Fact Sheet
- Overpayment Fact Sheet
- Waive repayment of overpaid Social Security benefits
- SNA (Special Needs Alliance): SSI Overpayments: How Does It Happen and What Can One Do?
- The Legal Aid Society: What You Need to Know About Social Security Overpayments
- SSA.gov all about Overpayments
- SSA Blog: Learn about Overpayments and Our Process
- How the COLA 2025 will change your Social Security benefits
