President Donald Trump has made many changes to the U.S. leading retirement plan in his second term.
His administration oversaw the reversal of the Biden-era Social Security overpayment policy, resulting in a 50% rebate rate.
Excess beneficiaries can use three options that can exempt them from their liability or meaningfully reduce the liability they owe.
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For most retirees, their social security income is essential. When surveyed by National Run Gallup in April, 86% of retirees said their monthly checks were a “primary” or “secondary” source of income. In other words, to some extent, it is necessary to make a living.
However, this most important retirement plan is not the best financial foundation. According to the latest Social Security Commission report, the program will stare at a long-term (75-year) funding deficit of $25.1 trillion and the prospect of cutting huge benefits eight years from now. If nothing is done, retired workers and survivor beneficiaries can see their monthly spending cuts up to 23% in 2033.
President Donald Trump. Image source: Official White House Photo by Joyce N. Boghosian.
While politicians often shirk social security issues as it may lead them to vote in upcoming elections, President Donald Trump’s administration has not deviated from a significant change to the top U.S. retirement plans.
Since the start of the second term (non-consecutive term), Trump has signed an executive order to eliminate the September 30, 2025 paper check. All federal distributions require digitization (e.g., direct deposit) to save costs and reduce the likelihood of fraud.
The President oversees reforms in individual identification methods through the Social Security Agency (SSA). For example, changing your direct deposit information (a few exceptions) will require in-person access to SSA or two-factor authentication through My Social Security account.
In addition, Trump is responsible for establishing the Department of Administration Efficiency (DOGE), which has led the SSA to announce a reduction of 7,000 employees and close certain of its offices. These actions are in line with the Trump administration’s theme of cutting federal costs and make Capitol Hill more effective.
But that’s not all. Make Washington, DC more efficient include Social Security Trust Funds, not just the planned administrative expenses. The leading U.S. retirement plan owes tens of billions of dollars – the Trump administration’s goal is to collect.
The question is: You are one of the more than 1 million beneficiaries, can they see the Social Security benefits SSA receives?
Image source: Getty Images.
If there is a clear SSA and Trump administration goal, it will collect $23 billion in Social Security overpayments by the end of 2023 (September 30, 2023). Nearly 2 million beneficiaries were paid high, according to health policy researchers KFF and Cox Media Group.
Sometimes, these overpayments are totally SSA’s fault. At other times, the responsibility is that the beneficiary does not use the SSA to update its revenue information, resulting in overpayment.
Before the pandemic, Social Security overpayment had a rebate rate of 100%. This means that President Trump’s first term is characterized by a 100% seizure rate of Social Security checks until overpayment is completely recovered.
However, during Joe Biden’s presidency (in line with the pandemic), this decor rate was reduced to just 10% per welfare check. Although the SSA announced plans to resume a 100% rebate rate in March, the public rebound has caused the agency to rethink the strategy and modify its decoration rate to 50% in April. Overpayments for more than 1 million beneficiaries began on July 24 as SSA began sending a 90-day notice on April 25.
If these people have a silver lining, there is indeed a legal option that can give up or reduce the things they owe to SSA:
SSA-632BK (“Request for Waiver Overpayment Recovery”): The best result is to completely give up your overpayment. If you receive overpayment It’s not your fault You can provide documents to repay additional benefits that will cause financial difficulties.
SSA-561 (“Reconsideration Request”): If you can provide evidence that you are not paying and want to be exempted from liability, it makes sense to go this route. Form SSA-561 is also an option if you agree that you are overpaid but are questioning the additional benefits you receive.
SSA-634 (“Overpayment Recovery Rate Change Request”): If you admit to being overpaid, submitting Form SSA-634 is the way to go, but you can show financial difficulties to the SSA at a qualified fee. In other words, you still have to repay the extra benefits you receive, but this route may allow you to develop an extended payment plan that reduces shelf rates from 50% to a more delicious percentage.
With the recovery rate of the Biden era, more beneficiaries can expect them to check monthly for a large number of haircuts if they don’t choose one of these three perfect legal options to avoid or reduce what they owe.
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Social Security owes tens of thousands of dollars, and the Donald Trump administration’s goal is to collect. Will your benefits be granted? Originally published by Motley Fool
