(Nexstar) – A major change in the way the Social Security Agency (SSA) handles profit overpayments is expected to kick Thursday.
Starting March 27, the Social Security Administration will begin withholding 100% of a person's monthly profit and collecting unpaid overpayments. The current clawback rate set by President Biden is 10%.
The Chief Actuary office estimates that the policy will be converted to approximately $7 billion in savings over the next decade.
“We have a significant responsibility to be a good custodian of the Trust Fund for Americans,” Social Security Deputy Lee Dudeck said in a statement. “It is our duty between the Obama administration and the first Trump administration to fully repay the overpayment repayment policy to withhold taxes in order to adequately protect taxpayer funds.”
This policy is sold as an important measure to ensure that US taxpayer dollars go to the right people, but there are concerns about how the changes will affect some seniors in the right amount.
“The 'clawback' of payments is especially unfair for seniors who don't have external support to manage their finances and track profits,” Shannon Benton, executive director of the Senior Citizens League, told CBS. Early this month.
The SSA notes that the new withholding rate will not apply to benefits paid by March 27th, but anyone who overpayments after Thursday will “recover fully at a 100% rate.” Payments will not resume until the scheduled benefits match the amount of overpayment.
Beneficiaries whose overpayments are overpayments and cannot afford to lose regular profits during repayments are advised to request a lower fee at their local Social Security Agency or by telephone at (800) 772-1213.
Earlier this month, Elon Musk's government efficiency announced that dozens of local social security administration offices across the country will be closing this year. Offices scheduled to close are listed here.
The SSA also notified workers about “significant labor cuts,” which roughly said in a press release in February. 7,000 employees It's finished.
On Tuesday, the senator grilled Trump's picks and led businessman and Wall Street veteran Frank Vignano on recent cuts and the ultimate plan for the Trump administration's key SSA.
Democrat Rhode Island Sen. Sheldon White House pushed Bisignano, the self-proclaimed “dogee man” over a recent report of perceived attacks on the SSA.
“I think “I'm not going to attack Social Security” is a lie. That's step one and you're lying about it. Step 2 does not trust Social Security. With Trump [Elon] Musk is lying loudly about an imaginary social security fraud. This appears to be an effort to reduce public confidence in the program,” the White House said. Then send out Musk characters and start disrupting the operation of Social Security and damaging it. ”
When asked whether to protect against such a scheme, Vignanano replied: “My job as a commissioner is to ensure that all beneficiaries receive payments on time.
The Social Security Administration says it issues monthly profits to around 69 million Americans, including people with disabilities, retired workers and children.
