As of March 11, 2025, the Social Security Administration (SSA) has announced a significant policy change regarding the recovery of overpayments. Effective March 27, 2025, the SSA will increase the default overpayment withholding rate to 100% of a beneficiary’s monthly payment until the debt is fully recovered. This change aims to reclaim approximately $7 billion over the next decade.
Understanding Social Security Overpayments
Overpayments occur when beneficiaries receive more funds than they are entitled to, often due to unreported changes in income, living arrangements, or administrative errors. The SSA is legally obligated to recover these excess funds. Under the new policy, individuals will no longer have the option to repay overpayments in smaller increments by default; instead, their entire monthly benefit will be withheld until the debt is resolved.
Impact on Shared Horizons Beneficiaries
Shared Horizons administers Special Needs Trusts (SNTs) to enhance the quality of life for individuals with disabilities while preserving their eligibility for public benefits. However, it’s crucial to recognize that SNTs are not immune to the SSA’s overpayment recovery efforts.
If a Shared Horizons beneficiary receives an overpayment notice after March 27, 2025, the SSA may withhold the entire monthly benefit until the debt is settled, potentially affecting the funds available for their needs. This underscores the importance of meticulous reporting and adherence to SSA guidelines to prevent overpayments.
Proactive Measures for Beneficiaries
To mitigate the risk of overpayments:
Timely Reporting: Beneficiaries must promptly inform the SSA of any changes in income, resources, or living situations.
Regular Reviews: Conduct periodic reviews of benefit statements and trust disbursements to ensure accuracy.
Consultation: Engage with Shared Horizons staff or legal advisors to clarify any uncertainties regarding benefit eligibility and reporting obligations.
Shared Horizons’ Commitment
Shared Horizons remains dedicated to supporting our beneficiaries through these challenging times. We offer resources and guidance to navigate SSA policies effectively, ensuring that our beneficiaries continue to receive the support they need without jeopardizing their benefits.
For more information or assistance, please contact Shared Horizons at (202) 448-1460 or visit our website at www.shared-horizons.org.
Sources:
Press Release: Social Security to Reinstate Overpayment Recovery Rate (ssa.gov)
Special Needs Trust | Shared Horizons, Inc. | Washington, DC (shared-horizons.org)
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