If you receive Social Security benefits, you should be aware of two significant policy changes announced recently by the Social Security Administration (SSA).
According to Yahoo! Finance, the changes announced this month will impact how overpayments are handled and direct deposit information is updated.
According to a press release from the Social Security Administration, the default overpayment withholding rate will be increased to 100% of a person’s monthly benefit.
This means that if you owe money to the Social Security Administration due to overpayments, your entire monthly benefit may be withheld until the debt is paid.
The agency estimates that this move will save the government $7 billion over the next ten years.
The second change affects how beneficiaries can update their direct deposit information. You will no longer be able to update this information over the phone.
To make changes, you will need to use two-factor authentication as part of the SSA’s fraud-reduction efforts.
According to the SSA, approximately 40% of Social Security direct deposit fraud occurs when someone calls the agency to change their bank account information.
The current method of verifying identity via phone questions is no longer deemed secure enough to prevent fraud.
Both changes have drawn criticism. Experts and former officials have expressed concern that they will have a negative impact on low-income recipients and seniors who may have difficulty using technology.
The overpayment withholding change will go into effect on March 27, while two-factor authentication for banking updates is already in place.
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