The Social Security Administration (SSA) has officially confirmed that wage withholding for certain beneficiaries will resume at the end of this month. This measure will mainly affect those beneficiaries who received overpayments due to administrative errors and who haven't replied to previous notifications or set up a payment plan.
The goal of the SSA is to recover about $23 billion that were incorrectly distributed to millions of Americans. These erroneous payments originated from a variety of factors, such as changes in income, housing arrangements, or the lack of updates in records.
Why are wage garnishments resuming?
In 2023, SSA temporarily suspended the payment withholding process after public pressure and media coverage revealed the difficulties beneficiaries were facing. These affected individuals were surprised to find out they had to return large sums of money, which caused them serious financial problems. However, the need to recover federal funds has led the agency to reinstate the garnishments.
SSA clarified that wage garnishments will be carried out gradually. The first to be affected will be those who didn't respond to the notices or who haven't reached an agreement to return the money.
"We're working to improve the way we manage overpayments," a SSA spokesperson said. To mitigate the impact, the agency has also implemented changes in withholding policies to make the process more understandable.
How can beneficiaries avoid garnishment?
Beneficiaries who received notifications about overpayments are advised to act immediately. Experts warn that affected individuals should take action before July 24 to avoid having large amounts deducted from their monthly benefits.
Beneficiaries can request a waiver if they believe the overpayment wasn't their fault and that repayment would cause them financial hardship. Another option is to set up an installment payment plan to settle the debt without significantly affecting their total benefit. In addition, affected individuals can contact SSA directly to dispute the amount or request clarification about the reason for the overpayment.
Ignoring letters from SSA can result in automatic deductions from benefits without prior notice, so it's crucial not to disregard received notifications. Proactive communication with SSA can be key to avoiding unexpected financial problems.
The resumption of SSA's wage garnishments poses a challenge for many beneficiaries, but those who act quickly and communicate properly with the agency can avoid greater harm.