The new changes in the amounts received by Social Security beneficiaries have already been implemented, and it is very possible that you will be affected. Two measures that are equally beneficial as they are problematic for those affected, which depending on your case, can experience an increase or a reduction of 50% of the amount they receive monthly. The Social Security Administration has already started the process of recovering the excess payments that have been made to beneficiaries.
Whether due to errors by the administration itself or by the beneficiary’s mistake in not reporting a change in their income to the SSA, beneficiaries are experiencing a 50% reduction in their monthly benefits.On the other hand, thanks to the repeal of the Social Security Fairness Act by the Biden administration in January 2025, public workers whose jobs do not contribute to Social Security will receive those back payments. These are jobs such as firefighters, police officers, mail carriers, or teachers.
Changes in the payments: 50% deductions
Since last April, the Social Security Administration (SSA) began notifying those affected by overpayments due to this irregular situation, and since July 24, it has started applying the relevant deductions from the monthly amounts that beneficiaries receive. Why have these improper payments occurred? They may have occurred due to administrative errors or because the beneficiary did not report a change in income to the SSA. For one reason or another, a 50% reduction of the amount received per month will be applied. Despite the fact that the affected individuals received their notification and a 90-day period to appeal, negotiate, or request an exemption, many of them did not do so.
If this was your case, you can still reach an agreement with the SSA. From the Administration, it has been announced that if the beneficiary can prove that they were unaware of the excessive payments or that they cannot cover their expenses with the 50% reduction, they will be able to negotiate more manageable payments. Those who prefer to eliminate the debt in a single payment can do so by accessing the website of the Social Security Administration, paying through credit card, online banking, or check.
Public sector workers; the other side of the coin
The number of public workers who were also changes in their income is in the millions. Thanks to the Biden Administration, on January 5, 2025, the Social Security Equity Law was defeated, which corrects all previous deductions from the benefits of these workers, whose jobs have not contributed to Social Security payments. Some of the jobs that will see an increase in their monthly payments are mail carriers, teachers, police officers, or firefighters. As a result of these back payments, these beneficiaries will receive an average of $6,710. According to the SSA, more than 3.1 million retroactive payments have already been made.
SSA expectations
Although the percentage of improper payments accounts for only 1% of the $8.6 trillion paid between 2015 and 2022, the SSA’s Office of the Inspector General states that this totals $72 billion! However, according to the SSA, by September 2023, they had already recovered around $49 billion, although a good amount still remains.
Pending claims
These changes in Social Security payments have led to multiple claims from beneficiaries. Both those who disagree with the ‘accusation’ of improper payment, and those who want to negotiate a different payment amount, total more than 278,000 applications that the Administration must address. Additionally, there are many applications from eligible individuals who want to benefit from the retroactive payment resulting from the Social Security Equity Act. To avoid this type of unforeseen withholding, applications, claims, and everything that comes with dealing with a bureaucracy office, it is better to keep Social Security profiles updated, including personal information and any changes in income.
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