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Reforming Social Security Administration: New Rules Seek to Address Issues with Overpayment

(PHOTO: GOBankingRates)

SSA Offers Overpayment Relief, Capping Withholding at 10%

Commissioner O’Malley Takes the Lead in Changing Policy to Respond to Public Criticism

According to Smart News, The Social Security Administration (SSA) has announced a major policy change intended to lessen the burden on recipients, in response to months of public criticism and scrutiny on its management of overpayments. With effect from March 25, the agency will cap the withholding rate for overpayments at 10% or $10, whichever is higher, under new rules released by SSA Commissioner Martin O’Malley. This action is a change from the prior procedure, which was condemned for financially hurting many disadvantaged people, of withholding full monthly assistance payments to recover unpaid cash.

How Social Security can fix its overpayment problem | The Hill
Reforming Social Security Administration: New Rules Seek to Address Issues with Overpayment (PHOTO: The Hill)

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Congressmen Demand Systemic Reform in the Face of SSA’s Overpayment Problems

There will be exceptions, especially in fraud situations, even though the new rate eases immediate financial burden and is a step towards justice. With a startling $23 billion overpayment problem, the Social Security Administration (SSA) continues to struggle to balance the welfare of recipients and the obligation to collect cash. Lawmakers have added their voices to the chorus of disapproval, highlighting the necessity of institutional change to guard against mistakes in the future and guarantee beneficiaries are treated fairly.

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