The weather is approximately 2 million Americans at the top of reducing their social security payments by half.
And this has nothing to do with the shortage of social security reserves. This is still eight years on the road.
Reduced payments for benefits starting this month are how the Social Security Administration (SSA) is trying to recover the money that has been overpaid for some Americans. Social security will refuse 50% of the beneficiary of the beneficiary until the sum of their overpayments has been refunded.
The SSA issues nearly $ 1.4 trillion a year to about $ 73 million in social security recipients and SSI. The exceeded payment may occur when the beneficiary does not update income change, such as or when the SSA incorrectly calculates the benefits of a person.
The agency is required by law to try to return or refund money when overpayment occurs.
“The overpayments must be restored, but we remain concerned about the impact of any recovery percentages on less financially stable pensioners,” said Shannon Benton, CEO of the Adult Citizen League, “Yahoo Finance told.
During the Biden administration, the default withholding rate was dropped to 10% of the beneficiary of the beneficiary of 100%, drastically reducing the financial difficulties of those with overpayment.
In March, however, the Trump administration announced that the agency would again refuse 100% of a person’s social security inspection until all paid funds were paid. Following the retreat by lawyers and adults, the percentage was reduced to 50%in April, and the agency said it would start to extract about $ 72 billion with incorrect payments made between 2015 and 2022, starting in July.
This is still a serious problem for many adults. “For some retirees, it doesn’t matter if it’s 1% or 100%,” Benton said. “Any amount of weaning can be catastrophic.”
Incorrect payments represent less than 1% of the total benefits paid during this period, but at the end of the fiscal 2023, the SSA had a non -collected balance with a overpayment of $ 23 billion, according to the August 2024 General Inspector’s report.
Read more: When will I receive my social security check? Payment Schedule for 2025
The withholding is expected to start with social security payments made around July 24. The rate of withholding additional benefits for security income remains 10%.
Those who were under this apostate had to receive a notice. The recipients who have received a notice have 90 days for appeal.
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