Our country is currently facing many changes that we probably didn’t see coming before the elections. And the Social Security Administration is now under scrutiny after the DOGE (Department of Government Efficiency) uncovered a rather unpleasant issue regarding overpayments during the distribution of benefits to retirees and disabled individuals.
Apparently, pension payments were being sent out in amounts that didn’t match the actual entitlement of the beneficiary but were significantly higher. Of course, the beneficiaries aren’t at fault here, but unfortunately, they will be the ones paying the price this time…
A radical change
During the Biden administration, they realized why this error was happening and tried to fix it by deducting 10% of the overpayment from each monthly check until the full amount was recovered.
However, the Trump administration hasn’t been as lenient and will withhold 100% of the overpaid amount in one go, which could mean that some beneficiaries “don’t get paid” (because they have to return it) in one of their checks.
This change has come as a cold shower for taxpayers because they’re being forced to pay for a mistake they didn’t make. For those who rely solely on Social Security to live, it’s going to be a very difficult month where they’ll have to stretch every dollar.
When will the withholding begin?
Starting April 27, that’s the date set by the government to begin deducting the remaining overpaid amounts until the debt is cleared.
Why is this being done now?
As you may know, DOGE is determined to reduce public spending as much as possible, and the SSA spends a lot. With this change, the government aims to save at least $7 billion over the next decade.
Are there exceptions?
SSI (Supplemental Security Income) recipients will not be affected by this change and will continue with the 10% deduction as before.
But is it fair?
Many beneficiaries didn’t even know they were receiving overpayments… So for many, this news has been tough, and they’ll need to manage however they can over the coming months until they finish repaying the “debt” they’ve been charged with.
Other changes
Another change implemented by the SSA, which is already in effect, is the prohibition of changing banking information by phone. From now on, those who wish to update the account where they receive their payment must go in person to an SSA office to avoid identity fraud. This was confirmed by the SSA’s official X account.
SSA office closures
As mentioned, the SSA is under DOGE’s microscope, and office closures have been announced across the country. Offices that, just last year, received up to 100,000 users will now be closed to the public. Clearly, it’s older adults who will be most affected by this change, as digital processes can be a big hurdle for those who struggle with technology. Additionally, hundreds of public employees will see their jobs disappear.
Is the SSA shutting down?
No, the SSA is not shutting down. In fact, it’s the vital support system for over 8 million Americans. They’re simply making changes to optimize the money invested in this agency.
What can you do if you’re a beneficiary?
In light of these changes, it’s essential that beneficiaries prepare in advance:
Check if you’ve received any notifications from the SSA starting March 27.
Log in to your mySocialSecurity account to review your payment status.
Visit an office if you need help with your banking info or if you need to complete any procedures you don’t fully understand.
An improvement or the dismantling of public resources?
According to DOGE, the goal is to improve the efficiency and transparency of the Administration, but the criticism has come quickly, as expected. Many members of Congress argue that it’s not fair for beneficiaries to repay errors made by the government, especially when those errors go back a decade.
Tough times are coming, and it’s best to be prepared… good luck!
