Retention Date: 10/25/2025
A. Purpose
The purpose of this Emergency Message (EM) is to provide interim guidance and inform technicians that we are changing our policy for the default 10 percent benefit withholding to recover a Title II overpayment. Effective April 25, 2025, overpayment notices will provide a default Title II overpayment benefit withholding rate of 50 percent of the monthly benefit.
B. Background
When we determine an individual receiving Title II benefits is overpaid, we send them a notice requesting a full and immediate refund and inform them of their right to request reconsideration or a waiver of recovery. We usually provide 90 days for the individual to request a lower rate of withholding, a reconsideration, or waiver. If the individual does not request a lower rate of withholding, reconsideration, or waiver after the approximately 90-day period, we will recover the overpayment by withholding up to 50 percent of their Title II benefit payment (if there is no fraud or similar fault), until we fully recover the overpayment.
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.
C. Instructions for New Overpayments
For most situations, technicians will not need to take manual action on new overpayments that are created on or after April 25, 2025. Fifty percent benefit withholding will begin at the end of the approximately 90-day period after receiving the overpayment notice.
If the overpayment warrants manual posting, you have two options for posting an overpayment manually to the individual’s record. You may use the Manual Adjustment, Credit, and Award Data Entry (MACADE) system or Debt Management System (DMS). For more information about posting an overpayment via MACADE, see SM 00865.000. For more information about posting an overpayment via DMS, see MS 01102.003.
Once you have determined that we overpaid the individual, post the overpayment to their record with a due process recovery date (DPRD) of the COM plus 3 months. You must notify the individual, in writing, by sending an overpayment notice. For information about the overpayment notice, see GN 02201.009.
When 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 after receiving the new overpayment notice if the individual does not contact SSA to request a reconsideration, a waiver, or negotiate a lower repayment rate. Therefore, use the PCOPT6900 via Aurora in the initial overpayment notice.
For any partial withholding requests, continue to follow normal processing procedures for 2073 cases as outlined in SM 00610.710, Overpayment Recovery Will Continue Past 2073.
Note: Upon processing a re-entitlement or reinstatement with a prior overpayment, remember to use the underpayment to reduce or recover the overpayment if applicable.
Note: The 50 percent withholding rate applies to matured overpayments beginning COM 08 and later (excluding fraud or similar fault and cross program recovery). The 10 percent rule will still apply to all overpayment recovery actions up through COM 07. This will be in line with the debtor’s initial overpayment notice that included a 10 percent withholding rate.
Note: This change does not impact Title XVI overpayment recovery policies. The Title XVI overpayment rate remains 10 percent. For more information on Title XVI overpayments, refer to SI 02220.001. For more information on cross program recovery, refer to GN 02210.008D and SI 02220.020A.7.
D. Instructions for Individuals Convicted of Fraud and Similar Fault Determinations
Technicians must thoroughly review the MBR, ROAR, DMS, and all other electronic files to determine if any of the following applies:
· Fraud conviction
· Similar fault determination
· Court-ordered restitution
· Civil monetary penalties
If the individual has been convicted of social security fraud, been ordered by a criminal court to pay restitution to SSA, or been imposed with civil monetary penalties, or if the agency has determined the individual committed similar fault in obtaining benefits, technicians must set the fraud indicator to “Y” (for yes), on the specific ROAR event involving fraud, similar fault, court-ordered restitution, or civil monetary penalties. For instructions on inputting the fraud indicator, see MS 01102.003.
If the issue of fraud or similar fault is being developed, do not set the fraud indicator to “Y.” Instead, follow guidance outlined in GN 02201.050, subsections B & C.
NOTE: If the individual has a settlement agreement with the Office of the Inspector General (OIG) or the United States Attorneys’ Office (USAO), follow guidance outlined in GN 02201.055 and GN 02230.055B.
Direct all program related and technical questions to your Regional Office (RO) support staff or Program Service Center (PSC) Operations Analysis (OA) staff. RO support staff or PSC OA staff may refer questions or problems to their Central Office contacts.
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