Two significant Social Security changes have recently taken effect, and certain retirees and disability recipients may begin to notice the impact. These updates involve potential increases in monthly benefits for specific groups and revised rules on how overpayments are recovered.
1. Higher Benefits for Some Recipients
One of the most notable changes stems from the Social Security Fairness Act, which repealed two long-standing provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules were originally created to prevent individuals from receiving full Social Security benefits while also collecting public pensions from jobs not covered by Social Security.
With the repeal now in place, an estimated 3.2 million Americans may be eligible for higher monthly benefits. In addition to the increase, the Social Security Administration (SSA) has begun issuing retroactive payments to those affected by the prior rules.
Although not all retroactive payments were distributed immediately, reports indicate that many recipients have started to receive their one-time payments over the past several weeks. Some beneficiaries may still be waiting as processing continues.
2. Adjustment to Overpayment Recovery Policy
The second change involves how the SSA recovers overpayments, which occur when beneficiaries receive more than the amount to which they were entitled. Earlier this year, the agency announced a policy that would allow withholding 100% of monthly benefits to recover these overpaid amounts.
However, in late April, the SSA updated this rule. For most Social Security retirement, survivor, and disability beneficiaries (known as Title II benefits), the default withholding rate is now 50% for overpayment notices issued on or after April 25, 2025. This means up to half of a monthly benefit may be withheld until the balance is repaid.
This change follows a series of adjustments in recent years. In 2023, under former Commissioner Martin O’Malley, the agency reduced the default withholding rate to 10%. The rate was later increased to 100% in March 2025, before being revised again to the current 50% default.
It’s important to note that the withholding rate for Supplemental Security Income (SSI) recipients remains at 10%.
What to Do if You Receive an Overpayment Notice
If you receive a notice from the SSA about an overpayment, the agency may begin withholding up to 50% of your monthly benefit unless you take action. Beneficiaries typically have 90 days to:
- Request a waiver,
- Ask for a reconsideration, or
- Submit evidence of financial hardship to request a lower recovery rate.
Outcomes may vary depending on individual circumstances and the documentation provided.
In Summary
The Social Security Fairness Act may result in higher monthly payments and retroactive benefits for approximately 3.2 million Americans previously affected by WEP and GPO.
The SSA’s updated overpayment recovery rule lowers the default clawback rate to 50% for certain beneficiaries, down from the 100% policy announced earlier this year.
These recent changes may not affect all beneficiaries but could make a significant difference for those impacted. Individuals are encouraged to monitor official SSA communications and maintain up-to-date contact and direct deposit information through their my Social Security accounts.