As of April 25, 2025, the Social Security Administration is reducing the clawback rate from overpayments from 100% to 50% for individuals receiving Social Security disability insurance (SSDI) benefits. This does not change the overpayment policy for Supplemental Security Income (SSI), which remains 10%. Previously, when an overpayment occurred, the Social Security Administration had the ability to withhold full monthly benefits from overpaid Social Security recipients.
Key Terms
Social Security Overpayment: Occurs when a beneficiary receives more than they are entitled to for a given period.
Social Security Clawback Rate: The Social Security clawback rate refers to the percentage of a recipient’s monthly benefit that the Social Security Administration can withhold to recover an overpayment. As of April 25, 2025, the clawback rate was effectively reduced for most new overpayment notices from 100% to 50% of monthly Title II benefits (retirement, disability, or survivor benefits).
SSDI: Social Security Disability Insurance (SSDI) is a federally funded program that provides monthly benefit payments to individuals with long-term disabilities who have worked and paid into Social Security, accumulating enough work credits to qualify. Eligibility for SSDI is based on both disability status and work history.
SSI: Supplemental Security Income (SSI) is a needs-based federal program that provides monthly financial assistance to individuals of any age who are disabled, 65 or older, and have limited income and resources. Unlike SSDI, SSI eligibility is not dependent on work history or Social Security tax contributions.
How Do Social Security Overpayments Occur?
Overpayments refer to situations where an individual receives Social Security disability benefits that exceed the amount they are entitled to for a given period. These overpayments are most commonly caused by bureaucratic errors, delayed updates to income or financial situation, changes in marital status, or shifts in living arrangements.
How The New Clawback Rate Can Affect You
As of April 25, 2025, the current Social Security Administration clawback rate has been reduced from 100% to 50% for individuals with title II Social Security benefits. Title II benefits encompass Social Security benefits paid based on a person’s retirement, disability, or survivor status.
50% Can Still Be a Significant Amount of Financial Assistance
With the new, 50% Social Security benefit overpayment clawback rate, the amount of money held in the event of an overpayment is reduced by half. However, the withheld half can still represent a significant share of your payment, which goes toward maintaining your quality of life.
If you receive an overpayment notice, you still have options:
- Request a waiver through the SSA (if not at fault);
- Request a reconsideration from the SSA by filing form SSA-561-U2 once you receive the overpayment notice (if the individual decides to dispute the overpayment);
- Request a lower withholding rate from the SSA by filing form SSA-634.
Navigating The Clawback Rate And Overpayment Situations
The new Social Security disability clawback rate can help reduce the financial burden associated with overpayments to Social Security disability benefit recipients. However, it is still recommended to respond promptly — ideally within 30–90 days — to minimize withheld amounts. Furthermore, contact the SSA only via its official website or phone number as soon as you receive your overpayment notice to explore your next steps. Be sure to document all correspondence and contact with the Social Security Administration as you work through a benefit-overpayment situation.