This bill limits the Social Security Administration's recovery of benefit overpayments to a maximum of 10 percent of a monthly benefit unless the recipient agrees to a higher withholding rate.
Dwight Evans
Representative
PA-3
This bill amends the Social Security Act to limit the amount the Social Security Administration can withhold from a person's monthly benefit to recover an overpayment. Unless the individual agrees to a higher rate, the SSA can withhold no more than 10 percent of a monthly benefit payment to recoup accidental overpayments. This new limit applies to existing and future unrecovered overpayments under Title II benefits.
Social Security Overpayment Cap: SSA Limited to 10% Withholding for Non-Fraudulent Errors
If you’ve ever received a letter from the Social Security Administration (SSA) saying you were overpaid, you know that anxiety-inducing moment when you realize they want their money back. Historically, the SSA could claw back a significant portion of your monthly benefit to recover that debt, often leaving beneficiaries—many of whom rely on every dollar—in a tough spot. This new legislation is designed to put a hard stop to that.
The 10% Shield Against Administrative Error
This bill amends Title II of the Social Security Act—which covers retirement, survivors, and disability benefits—by capping how much the SSA can withhold from your monthly check to recover an overpayment. Specifically, if the overpayment wasn't your fault (meaning no fraud or similar fault was involved), the SSA is limited to recovering not more than 10 percent of your monthly benefit. This change applies immediately to all outstanding overpayments that still need to be paid back once the law is enacted. Think of it as a financial shield protecting 90% of your essential income from an administrative error.
What This Means for Your Budget
For anyone receiving disability or retirement checks, this is a major stability boost. Imagine you are a retiree living on a fixed income of $1,500 a month. Under previous rules, the SSA might have decided to recoup an overpayment by taking $300 or $400 out of your check, drastically cutting your ability to pay rent or buy groceries. Under this new rule, the maximum they can take is $150 (10% of $1,500). This keeps the lights on and food on the table while the debt is slowly repaid.
Crucially, the SSA cannot unilaterally decide to take more than that 10% cap. If you want to pay the debt back faster—maybe to get it off your books—you have to affirmatively agree to a higher withholding rate. This flips the script: the burden of aggressive recovery is shifted away from the beneficiary and onto the agency, ensuring that people are protected from sudden, severe financial shocks caused by the SSA’s own accounting mistakes. While the SSA will recover the money slower, this provision prioritizes the financial stability of vulnerable citizens over the speed of debt collection.