SSA has again updated the Title II default overpayment withholding rate. As you may recall, on March 7, SSA issued a Press Release indicating that the default rate would revert from last year’s 10% withholding back to the prior year’s 100% withholding. However, new guidance provided in EM-25029 indicates that the Title II default overpayment withholding rate will instead now be 50%. 

From the EM: 

Any new Title II overpayment determinations will have the 50 percent benefit withholding automatically applied for overpayment notices sent beginning April 25, 2025, which is the first day of COM 05. If an overpaid individual has a prior overpayment and incurs a new overpayment, all outstanding overpayments will default to 50 percent benefit withholding at the end of the approximately 90-day period if the individual does not request reconsideration, a waiver, or negotiate a lower repayment rate. In addition, we are updating the Title II initial overpayment notice benefit withholding language. This language will replace 10 percent withholding with 50 percent withholding of the monthly payment beginning with notices sent on or after April 25, 2025.

Please review your clients’ overpayment notices carefully, and, as always, reach out to NOSSCR with any questions.