Social Security Trust Fund is expected to dry out within 10 years
The main trust funds used to pay Social Security benefits are projected to run out by 2033 if lawmakers do not make changes to the system.
Straight Arrow News
Some Americans will begin paying less social security in July.
Don’t worry, it’s not because of an imminent shortage, but many may already be worried about it. But if the Social Security Administration has issued an overpayment in the past, the agency is now trying to get it back.
For example, if beneficiaries are unable to renew changes in income, and as a result, Social Security receives them in excess, overpayments can occur. Alternatively, the SSA could incorrectly calculate a person’s interests.
A report from the Social Security Agency’s Office of Inspectors in August 2024 shows that Social Security paid nearly $72 billion in inappropriate payments between 2015 and 2022.
Inappropriate payments accounted for less than 1% of almost $8.6 billion in benefits paid. As of September 2023, the agency had $23 billion of unrecovered overpayments, according to the report.
What are the changes to Social Security payments coming in July?
Some beneficiaries who have been overpaid may be able to cut their monthly Social Security benefits by half starting in late July.
In April, the SSA announced that it would withhold 50% of its benefits from recipients who have overpayments. This is a partial setback from the initial announcement of the SSA in March to withhold all the recipient’s benefits until the overpayment is collected.
Previously, agents had withheld only 10% of the recipient’s profits to recover from overpayment. SSA reduced its recovery rate to that level in 2023 after negative media coverage about the agency’s collection process. “Innocent people can get seriously hurt,” then Social Security Director Martin O’Malley said according to Detroit Free Press, part of the USA Today Network.
According to KFF and Cox Media Group, SSA attempted to collect overpayments from around 2 million people in the fiscal year ended September 2023.
If Social Security overpays you, how will you pay it back?
Under the new policy, the SSA has said it will begin issuing overpayment notices on April 25, 2025 and will begin withholding 50% of recipient benefits after about 90 days (or about July 24th, July 24th) until the overpayment is repaid.
You can repay credit cards, online bill payments, or check overpayments. For more information on repayment of overpayment benefits, please visit the SSA website.
You can also use the form on the SSA website to request a waiver to avoid repaying your overpayment if you think it’s not your fault or if you can’t afford to repay it (or thinks it’s unfair for other reasons).
Mike Snyder is a reporter for the trending team at USA Today. You can follow him in the thread, send BlueSky, X with X and send him an email Bliss & @mikegsnider.bsky.social & @mikesnider &msnider@usatoday.com
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