FOUR major changes are underway at the Social Security Administration, and they are likely to have far-reaching impacts on recipients.
Roughly 73 million Americans rely on benefits from the SSA, and the agency’s new overpayment rule, among other changes, will have costly impacts.
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Established in 1935 when the Social Security Act was signed into law by President Roosevelt, Social Security is a social welfare program that provides retirement, disability, and survivor benefits.
In an effort to modernize its systems, update its policies, and improve the security of its operations, the federal government agency has major restructuring in the works.
As a result, Americans can expect to see four big changes – some that are already being implemented and others that will soon take effect.
1. STRICTER IDENTITY VERIFICATION POLICY
Beginning on April 14, 2025, certain Social Security beneficiaries will be required to adhere to more thorough identity verification procedures as the agency works to combat fraud.
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The change will not impact Americans who use the my Social Security account portal for tasks such as updating their address or direct deposit details.
However, those looking to apply for benefits or request benefit changes but unable to verify their identity on the portal will be required to do so in person at a Social Security office.
How to prove your identity to the SSA
The main way to prove your identity to the SSA is via the my Social Security account portal.
Americans unable to do so online can still begin their claims over the phone. However, some claims will not be processed until the individual also verifies their identity in person at a local office.
Only certain documents qualify as proof of identity, according to the SSA.
“An acceptable document must be current (not expired) and show your name, identifying information (date of birth or age) and preferably a recent photograph,” the SSA states on its website.
Examples of valid proof of identity include:
- US driver’s license
- State-issued non-driver identification card
- US passport
Individuals who do not possess one of these forms of ID or who cannot get a replacement within 10 days can use other documents, including:
- Employee identification card
- School identification card
- Health insurance card (not a Medicare card)
- US military identification card
Following public outcry over its original proposal, the SSA made an exception to this rule for select groups of individuals more prone to mobility or technology challenges.
Americans applying for Medicare, disability benefits, or Supplemental Security Income will still be able to verify their identity and apply for benefits over the phone.
“Americans deserve to have their Social Security records protected with the utmost integrity and vigilance,” said Lee Dudek, acting commissioner of Social Security, in an SSA blog post.
“For far too long, the agency has used antiquated methods for proving identity. Social Security can better protect Americans while expediting service.”
2. REVERSED OVERPAYMENT RECOVERY RATE
Americans sometimes receive a greater monthly Social Security check than they are owed.
These accidental overpayments occur for a variety of reasons, such as an individual’s failure to update an income or employment change or the agency’s incorrect calculation of benefits.
Around $72 billion in incorrect payments – mostly overpayments – were made by the SSA from 2015 to 2022, the Social Security Administration’s Office of the Inspector General estimated in an August 2024 report.
The Biden administration implemented a 10% overpayment recovery rate in March 2024 to “significantly reducing financial hardship on people with overpayments,” the agency stated at the time.
However, last week, the rule was reversed.
Now, 100% of a beneficiary’s future Social Security checks will be withheld until their overpayments are paid back to the SSA, the agency shared earlier this month.
The new policy applies to all new overpayments made on or after March 27, 2025.
Overpayments that took place before this date will retain their 10% recovery rate cap. SSI will also still be subject to the typical 10% overpayment recovery rate.
However, those impacted by the new 100% rule will not receive any of the money they are entitled to while their debts to the SSA are repaid.
The policy reversal will result in a roughly $7 billion increase in overpayment recoveries across the next decade, per estimates from the office of the chief actuary.
Those unable to afford having the entirety of their monthly checks withheld can call the SSA at 1-800-772-1213 or their local office to request a lower rate of recovery.
Social Security beneficiaries can also appeal their overpayment decision. The SSA may waive the overpayment if an individual can prove it was not their fault and they cannot afford to pay it back.
Filing a waiver with the SSA
Those who cannot afford to pay back the overpayment amounts noted by the SSA or feel they should not have to can file a specific form.
- The form is identified as SSA-632 on the SSA website and can be filled out and submitted at a local office.
- “If you agree that you have been overpaid, but you feel you should not have to pay it back because you did not cause the overpayment and you cannot afford to repay it, you should file Form SSA-632,” the SSA notes on its website.
- It also lists multiple repayment options.
- Recipients with additional questions are urged to call 1-800-772-1213.
3. BIGGER CHECKS FOR MILLIONS
Before leaving office, former President Joe Biden signed the Social Security Fairness Act into law, repealing the Windfall Elimination Provision, WEP, and Government Pension Offset, GPO.
These two provisions, in effect since the 80s, significantly reduced the benefits for retirees who received pensions from employers not covered by Social Security.
Roughly 3.2 million recipients, particularly public servants, were impacted by the WEP and GPO, including many firefighters, police officers, and teachers.
The SSA announced that these Americans would receive retroactive payments dating back to January 2024, with many having already received a one-time retroactive payment in March worth an average of $6,710.
Impacted retirees will also see a permanent increase to their monthly Social Security checks, which will begin with the April 2025 payment for most.
Although exact payment amounts will vary based on individual circumstances, Americans can expect these average monthly increases, according to the Congressional Budget Office:
- Retired workers – $360 per month
- Spousal beneficiaries – $700 per month
- Affected widow(er)s – $1,190 per month
WEP and GPO
The Windfall Elimination Provision and the Government Pension Offset are federal laws that have been in place for nearly 40 years.
Windfall Elimination Provision:
- Impacts pension recipients who also work another job covered by Social Security
- The Social Security benefit is usually reduced by around 50%, but it cannot be reduced to zero
Government Pension Offset:
- Impacts pension recipients who also qualify for spousal Social Security benefits
- Reduces two-thirds of the PSRS benefit, typically eliminating the entire spousal Social Security benefit
The provisions were repealed when former President Joe Biden signed the Social Security Fairness Act into law.
4. DIRECT DEPOSIT CHANGE
Another change underway at the SSA regards the direct deposit of Social Security benefits.
The government agency is working to make the processing of Social Security direct deposit change requests more efficient.
Online direct deposit changes were previously held for 30 days but, going forward, will only take one business day.
The faster processing time will apply to both direct deposit change requests made in person and online.
Through this change, coupled with the stricter identity verification procedures set to roll out on April 14, the SSA aims to help avert millions of dollars in losses and fraud.
“The updated measures will further safeguard Social Security records and benefits for millions of Americans against fraudulent activity,” the SSA has said.
The SSA loses more than $100 million each year in direct deposit fraud, according to the SSA’s acting commissioner.
“For far too long, the agency has used antiquated methods for proving identity. Social Security can better protect Americans while expediting service,” said Dudek.
“This is a common sense measure.”
Take note of these other key updates regarding your Social Security benefits.
Social Security checks up to $967 will arrive as normal tomorrow, but a calendar quirk will shake up the payment schedule.
Plus, millions of retirees face a 25% payment penalty in days as a key deadline looms – steps to avoid taking the hit.
