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Donald Trump campaigned on being a champion of Social Security. Since returning to the White House, Trump has continued to claim that he won’t touch Social Security, which isn’t exactly true.
On Friday, the Social Security Administration announced that anyone who is accidentally overpaid their benefits will be subject to a repayment rate of 100%. In other words, a person on a fixed income will have their benefits seized for overpayment.
According to the Social Security Administration:
The Social Security Administration (SSA) announced it will increase the default overpayment withholding rate for Social Security beneficiaries to 100 percent of a person’s monthly benefit. The Office of the Chief Actuary estimates this change will result in an increase in overpayment recoveries (i.e., a program savings) of about $7 billion in the next decade.
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As of March 27, the agency will begin mailing notices about the new 100 percent withholding rate, rather than the recent adjustment of just 10 percent. The withholding rate change applies to new overpayments related to Social Security benefits. The withholding rate for current beneficiaries with an overpayment before March 27 will not change and no action is required. The withholding rate for Supplemental Security Income overpayments remains 10 percent.
People who are overpaid after March 27 will automatically be placed in full recovery at a rate of 100 percent of the Social Security payment. If someone cannot afford full recovery of their overpayment, they can contact Social Security at 1-800-772-1213 or their local office to request a lower rate of recovery.
Social Security is a very efficient program, but sometimes they make mistakes and accidentally overpay people. Sometimes, people are unclear about the rules and income limits and may accidentally exceed a limit.
Accidents happen, but under the Trump administration, beneficiaries already on a fixed income will lose everything if they are deemed overpaid.
