By TOM FONTAINE

The Tribune-Review, Greensburg

(TNS) — Several significant policy changes affecting Social Security recipients and applicants get underway this month. One of the changes is designed to help the Social Security Administration more quickly recover money from people it overpaid.

Another aims to limit fraudulent claims. A third could speed up the time it takes to process requests to change where recipients’ direct deposits go.

Here’s what you need to know about the changes: ‘CLAWBACK’ POLICY Starting March 27, the Social Security Administration will increase its default overpayment withholding rate to 100% of a person’s monthly benefit. In other words, if after March 27 you receive more money than you should have from Social Security, the agency will be able to withhold your entire monthly benefit until it recoups — or “claws back” — all of the money owed.

A year ago, the Biden administration capped the overpayment withholding rate at 10% of a person’s monthly benefit.

Former Social Security Administrator Martin O’Malley described the practice of withholding a person’s entire monthly benefit as “clawback cruelty.”

In announcing the move to reverse the Biden administration policy, the Social Security Administration this week said the change would boost overpayment recoveries by an estimated $7 billion over 10 years. The change applies to new overpayments related to Social Security benefits, while the withholding rate for Supplemental Security Income payments will remain 10%, according to the Social Security Administration.

While Social Security benefits are based on past earnings, Supplemental Security Income, or SSI, is a needs-based program that provides monthly benefits to people with limited income and resources who are blind, 65 or older or have a disqualifying disability, according to the Social Security Administration.

Children with disabilities or who are blind may also get SSI, the agency said.

The agency said those who feel they can’t afford the 100% withholding rate should call Social Security at 1-800-772-1213 or contact their local office to request a lower rate.

A Congressional Research Service report released in October showed the agency doled out about $6.5 billion in Social Security overpayments during the 2022 fiscal year, about 0.5% of the nearly $1.3 trillion it paid out in retiree, disability and survivor benefits.

TIGHTER IDENTITYPROOFING Beginning March 31, new Social Security applicants and existing recipients who want to change their direct deposit information will no longer be able to verify their identity to the Social Security Administration over the phone.

People will have an opportunity to verify their identities online, but those unable to do so will need to visit an agency field office in person to complete the verification process.

Retiree advocates warn the change will negatively impact older Americans in rural areas, including those with disabilities and mobility limitations, those who live far from Social Security Administration offices and those with limited internet access.

The change also comes as the agency plans to shutter dozens of Social Security offices across the country and has laid out plans to lay off thousands of workers.

Leland Dudek, the Social Security Administration’s acting commissioner, downplayed the impact of the office closures, saying many were small, remote hearing sites that served few members of the public. The agency also noted this week that it recently required nearly all of its employees, including front-line employees in offices across the country, to work in the office five days a week.

“This change ensures maximum staffing is available to support the stronger in-person identity- proofing requirement,” the agency said in a news release.

For those who can’t complete their identity verification online, the agency recommends calling Social Security at 1-800-772-1213 to request an in-person appointment.

To find an office near you, go to ssa.gov/locator/ and search by entering your ZIP code.

DIRECT DEPOSITS The Social Security Administration also announced that, as of March 31, it will expedite the processing of all direct deposit change requests to one day, whether they are made online or in person.

Previously, the agency said, online direct deposit changes were held for 30 days.

Dreamstime/TNS