Recent changes in Social Security payments have left many beneficiaries facing reductions in their monthly benefits, with some experiencing a 50% reduction.
These changes are due to either administrative errors or beneficiaries failing to report changes in income to the Social Security Administration (SSA). Meanwhile, public workers who were affected by prior deductions will benefit from retroactive payments following the repeal of the Social Security Fairness Act.
50% Deductions: What Happened?
Since April, the Social Security Administration (SSA) began notifying individuals who have received over payments. These over payments may have occurred due to administrative mistakes or because beneficiaries didn’t report income changes to the SSA. As of July 24, 2025, the SSA began applying 50% reductions to the monthly benefits of affected individuals.
Despite receiving notifications and being given a 90-day window to appeal, many beneficiaries did not act on it. For those who were unaware of the over payments or who struggle to manage with the reduced amount, the SSA is open to negotiations.
If you’re in this situation, you may be able to arrange more manageable payments. You also have the option to settle the debt in full through the SSA’s website, using credit card, online banking, or check.
Public Sector Workers: Retroactive Payments
In a significant change, public workers who were previously not contributing to Social Security, such as teachers, police officers, firefighters, and mail carriers, will now receive retroactive payments. This change comes after the Biden administration repealed the Social Security Fairness Act in January 2025.
Previously, workers in jobs that didn’t contribute to Social Security had their benefits deducted. With the repeal, these workers will receive the back payments owed to them. On average, these beneficiaries will receive $6,710 in retroactive payments. As of now, the SSA has already made over 3.1 million retroactive payments.
SSA’s Expectations
Although improper payments represent only 1% of the total amount paid by the SSA—about $8.6 trillion between 2015 and 2022—these errors have added up to a staggering $72 billion. By September 2023, the SSA had already recovered approximately $49 billion, with more to be recovered.
Pending Claims
With the changes in Social Security payments, many beneficiaries are now filing claims. There are over 278,000 claims pending, including appeals from those who dispute the improper payments, and those requesting adjustments to their payment amounts.
Additionally, eligible individuals seeking retroactive payments from the Social Security Equity Act have added to the volume of claims the SSA must process.
How to Avoid Payment Issues
To avoid complications with Social Security payments, it’s essential to keep your Social Security profile updated. This includes ensuring that your personal information, income changes, and other relevant details are current with the SSA. Staying on top of these updates can help prevent unexpected withholding or adjustments.
