The peace that many Social Security beneficiaries thought they had has been shattered. The measures implemented by the Social Security Administration (SSA) are already underway and are leaving thousands with significantly reduced payments. In some cases, the reduction is so drastic that the monthly check has been cut in half.
Not all the changes are negative, but the impact is clear. SSA itself acknowledges that the adjustments benefit certain groups, while for others they represent an economic blow. Additionally, the situation has become even more complicated with the activation of the recovery of excess payments that were improperly issued.
Changes that reduce payments and affect thousands of citizens
Since April, SSA notified those affected by overpayments that their benefits would be reduced. On July 24, the actual implementation of the measure began, with 50% cuts in the monthly payment. The cause may be administrative errors or the beneficiary's failure to report a change in income.
The affected individuals had a 90-day period to appeal, negotiate, or request a waiver. However, many people did not complete any procedure. Now, the reduction is already underway, although there is still the possibility of seeking an agreement with the Administration.
SSA indicates that if the beneficiary can show that they were unaware of the improper payment or that they can't cover their expenses with the reduction, they can negotiate a more accessible payment method. There is also the option to settle the debt in a single payment by card, online banking, or check, through SSA's official website.
Not everyone loses with the new adjustments. On January 5, 2025, the Biden Administration repealed the Social Security Fairness Act. This allowed for the correction of previous deductions that affected public employees whose jobs did not contribute to Social Security.
Professions such as firefighters, police officers, mail carriers, and teachers are seeing an increase in their payments. Additionally, they will receive back payments that average $6,710. According to SSA, more than 3.1 million beneficiaries have already received this extra income.
This change has been presented as a measure of justice for those who, despite not contributing to the system, saw their benefits cut by previous provisions. For many, it represents considerable financial relief at a time of high inflation and financial pressure.
A situation that has led to thousands of claims
The Office of the Inspector General points out that, although improper payments represent just 1% of the $8.6 trillion (8,6 billones) paid between 2015 and 2022, the figure amounts to $72 billion. SSA claims to have recovered nearly $49 billion by September 2023, but there is still a significant amount left to collect.
Currently, there are more than 278,000 pending claims, including appeals for overpayments and requests to access retroactive payments. The administrative burden is high and it could take months to solve.
To avoid similar problems in the future, SSA recommends keeping all personal information up to date and reporting any change in income. A preventive action can make the difference between keeping the full payment or facing deductions that directly impact the wallet.