Major change to social security is now in effect: What you need to know

A major change to how the Social Security Administration handles overpayments kicked in on Thursday.

That’s when the agency started its plan to withhold 100 percent of a person’s monthly benefit in order to recoup any outstanding amount that the government overpaid. The former rate, set by President Biden, was 10%.

The Office of the Chief Actuary estimates the change will save the government about $7 billion over the next decade.

“We have the significant responsibility to be good stewards of the trust funds for the American people,” Lee Dudek, acting commissioner of Social Security, said 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.”

The Hill reports that anyone who was overpaid will now automatically be given the full recovery rate of 100 percent. Payments will not resume until the scheduled benefits match the amount owed.

While the policy is being touted as a way for the government to save money, some are concerned about what the changes will mean for seniors who might not be able to afford to miss any benefit payments.

“The ‘clawback’ of payments is especially unfair to seniors who do not have external support to help manage their finances and track their benefits,” Shannon Benton, executive director of the Senior Citizens League said to CBS News earlier this month.

Beneficiaries who were overpaid and cannot afford to lose their regular benefits during repayment can request a lower rate at their local Social Security office, or by phoning 800-772-1213.

It should be noted, however, that Elon Musk’s Department of Government Efficiency (DOGE) has announced that it plans to close dozens of Social Security offices across the country.