The Social Security Administration (SSA) is a federal agency responsible for distributing benefit payments to millions of Americans each month, including retirees and individuals with disabilities. Since the Trump Administration took office earlier this year, many federal agencies have undergone sweeping changes — and the SSA has been no exception.
From the introduction of the Department of Government Efficiency (DOGE), headed by tech billionaire Elon Musk, to mass cutbacks within the agency and changes to the identification verification processes — the SSA has been undergoing major changes and restructuring. Subsequently, a fair amount of these enacted changes have already had to be amended or reversed entirely. Here is what you need to know about the latest amendments and reversals from the SSA.
Amendment to identify verification requirements at Social Security Administration
One of the more controversial changes enacted by the SSA over the last few weeks has been the elimination of the option to verify one’s identity over the phone before submitting a claim or filing an application. This decision sparked much backlash from advocates of retirees and disabled individuals as visiting a field office would be unnecessarily inconvenient or difficult for many, whilst using the website to verify might be difficult for the older cohort who are not technologically adept. This initial change was announced in March however, a mere few weeks later, the SSA decided to make an amendment to this decision.
Now, according to the amended announcement, beneficiaries applying for Social Security disability benefits, Medicare or SSI would still be able to do so via the telephone. The remainder of beneficiaries filing their claims will still have to visit a field office if they do not — or are unable to — complete their applications online through their my Social Security account.
A second amendment to this was later announced on April 14 and stated that any individual wishing to apply for Social Security or looking to make changes to their account can continue do so over the telephone. This is because the agency has new technology that will scan for any potential fraud. As such, a field office will need to be visited if your account is flagged for fraud.
Overpayment clawback rate reduced after increase
A 100% recovery rate for overpayment balances was announced by President Donald Trump in March sparking much backlash. This was the rate prior to 2024 where, under the Biden Administration, it had been capped at 10%. This meant that the SSA would be able to withhold a beneficiary’s entire check until their overpaid debt was cleared.
On April 25, however, an emergency meeting was held at the SSA and it was decided that all overpayment clawbacks from the past and going forward, would be capped at 50% of the total benefit amount. This means that the agency would not be able to withhold more than 50% of a beneficiary’s check each month until their overpaid balance is cleared.
Overpayments do not often occur, however, having your benefit halved because of it could have detrimental outcomes, particularly to those who are solely dependent on Social Security. The good news is that there are options that a beneficiary can take in the event of receiving an overpayment notice. If the beneficiary is still in possession of the excess cash, they can return it to the agency and their benefit amount going forward should remain unaffected.
A lower recovery rate could also be requested if the beneficiary would face financial difficulties as a result of the clawbac, provided that they contact the SSA within 90 days of receiving the overpayment notice. Lastly, if the beneficiary can prove that the fault of the overpayment lies with the agency, it is possible that the government will waive the debt collection entirely.