Starting next month, many Americans will notice a reduction in their Social Security checks due to adjustments initiated by the Social Security Administration (SSA) stemming from actions taken since 2015. The SSA began withholding 10% from beneficiaries who were identified as overpaid two years ago, and now, the agency is set to increase this withholding percentage.
These overpayments occurred due to various factors, including miscalculations and instances in which recipients did not adequately report changes in their income. The SSA’s decision to ramp up the withholding rate is part of a broader initiative to address financial discrepancies and recover funds that were erroneously distributed.
According to an August 2024 report from the SSA’s Office of the Inspector General, improper payments made by the agency amounted to nearly $72 billion during the fiscal years 2015 to 2022. This substantial figure underlines the importance of rectifying these overpayment issues to ensure the integrity of the Social Security program.
While this adjustment presents immediate challenges for affected individuals, it reflects the SSA’s commitment to improving its operations and safeguarding taxpayer funds. By addressing these discrepancies, the SSA aims to enhance the reliability of social security disbursements in the future, ultimately benefiting both the agency and its recipients in the long run.