Social Security changes benefit new applicants

In recent weeks, the Social Security Administration (SSA) has introduced two significant changes that could impact new applicants and current beneficiaries. These changes reflect ongoing efforts to improve the system and address various issues related to identity verification and overpayment recovery. In March, the SSA announced new identity verification procedures for individuals applying for or making account changes over the phone. Initially, applicants were required to visit a field office to have their identity verified before submitting applications or processing changes. However, this was soon amended to allow applicants for Social Security disability benefits, Medicare, or Supplemental Security Income (SSI) to complete their applications over the phone. On April 14, the SSA further amended the process, enabling anyone applying for Social Security or making account changes over the phone to do so. New technology will now scan for signs of possible fraud. If an account is flagged, the individual may still need to visit a field office. To avoid these potential hurdles, beneficiaries are encouraged to use their “my Social Security” account online, which provides a quicker and more straightforward option for applying or making changes.

Social Security procedural updates for 2023

In March, President Trump reinstated a 100% overpayment recovery rate, allowing the SSA to withhold all future checks to recoup accidental overpayments. This policy applied to overpayments occurring before March 27, 2025, with a 10% recovery cap. However, as of April 25, the government decided to implement a 50% recovery rate cap for all overpayments, past and future. This means that the SSA can withhold up to 50% of future benefits to recover any overpaid amounts. While overpayments are rare, losing half of one’s future benefits can be financially devastating. Beneficiaries have options to handle overpayments, including repaying the extra money directly to the SSA upon noticing the issue or requesting a lower recovery rate if financial hardship is a concern. There is also an option to request that the repayment collection be entirely waived if the beneficiary can demonstrate that the overpayment was not their fault and repayment would cause financial hardship. For any questions or concerns regarding these rule changes, it is advisable to contact the SSA directly. Keeping informed about future changes is crucial for maintaining and maximizing your Social Security benefits.