If you receive Social Security benefits, you should be aware of two major policy changes recently announced by the Social Security Administration (SSA).
According to Yahoo! Finance, these changes — announced this month — will affect how overpayments are handled and how direct deposit information is updated.
A press release from the SSA states that the agency plans to increase the default overpayment withholding rate to 100% of a person’s monthly benefit.
This means that if you owe money to the SSA due to overpayments, your entire monthly benefit could be withheld until the debt is repaid.
The agency expects this move to save the government about $7 billion over the next 10 years.
The second change affects how beneficiaries update their direct deposit information. Going forward, you will no longer be able to update this information over the phone.
Instead, you’ll need to use two-factor authentication to make changes, as part of the SSA’s effort to reduce fraud.
The SSA explained that about 40% of Social Security direct deposit fraud happens when someone calls the agency to change bank details.
The current practice of verifying identity through phone questions is no longer considered secure enough to prevent fraud.
Both changes have faced criticism. Experts and former officials have raised concerns that they could negatively impact low-income recipients and seniors who may struggle with technology.
The overpayment withholding change will take effect on March 27, while the two-step authentication for banking updates is already in place.
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