Social Security Changes How Overpayments are Handled

The rate was reduced to prevent financial hardship on those with overpayments, the Social Security Administration said.

Three Social Security cards stacked on top of each other.
(Image credit: Getty Images)

The Social Security Administration (SSA) announced a change to how they will collect overpayments that were given to recipients, following months of criticism and conversation about its massive overpayments problem. 

Social Security had an overpayment problem where recipients were mistakenly given too much money. The agency had been sending notices to those it overpaid asking for money back, and there were clawbacks, whereby the agency would reduce or stop monthly benefit checks, KFF Health News reported

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.