The United States Social Security Service (SSA) has implemented new cuts that are severely affecting thousands of families. Beneficiaries of overpayments have been notified of a drastic reduction in their monthly checks, which is causing serious financial problems.
A recent post on social media made the impact of this measure clear, when a man shared his experience of seeing his check reduced by half. In his message, he stated: "My wife and I were cut, from one thousand one hundred to five hundred each." Those affected, like him, can no longer cover their usual expenses.
What is happening with the cuts?
The Social Security Administration has started withholding up to 50% of monthly payments from those who have received some overpayments in the past. This measure, which was announced in April, mainly affects those who receive retirement, survivor, or Title II disability benefits.
The withholding of payments is a change in SSA's policy, which previously withheld only 10% of overpayments. From now on, beneficiaries will have to face a much larger cut, which has caused concern among a large part of the population. This measure will be implemented at the end of July.
The reasons behind the cuts
An overpayment can occur for various reasons. Among the most common are changes in the beneficiaries' personal situation, such as their marital status, income, or ability to work. SSA has also indicated that some overpayments may be the result of processing delays or data errors.
The Office of the Inspector General reported that between 2015 and 2022, SSA distributed approximately $72 billion in improper payments. Most of these payments were excessive, which has led the administration to adjust its withholding policy to prevent future financial problems.
What impact does this measure have on families?
The new adjustment in payments is having a direct impact on the most vulnerable families. With 50% of checks being withheld, many people find themselves unable to meet their financial obligations. The measure affects thousands of households, who not only have to deal with the cut, but also with the uncertainty of past errors.
For example, a woman received a bill for $63,000 after SSA overpaid her. Another, meanwhile, faced a debt of $40,000. In many cases, beneficiaries are forced to pay a debt without prior notice, which further aggravates the situation.
SSA's additional changes
In addition to the payment cuts, SSA is implementing other important changes that will also affect millions of people. Among these changes is the modification of the retirement age and a "massive" change that will affect 400,000 people daily.
As SSA implements these modifications, many beneficiaries are worried about the long-term effects. With each change, the economic pressure on families increases, leaving those who depend on these payments to survive with no room to maneuver.
Given the situation, many beneficiaries have tried to appeal or seek exemptions, as the administration indicates. However, only those who have received overpayments will be able to request a reconsideration or an exemption. This leaves thousands of families with no clear options to overcome the financial crisis.