Social Security News: Offices Cut, Employees Laid Off, Stricter Repayment Terms
Category: Social Security
March 12, 2025 — The 68.6 million Americans who receive Social Security retirement benefits have an obvious interest in its future. It is especially important for the half of Americans aged 65 or older who live in households where Social Security benefits account for at least 50% of their family income. Roughly 25% rely on these benefits for at least 90% of their income. Any cuts to Social Security will severely affect those folks, and in fact, almost anyone who gets those benefits.
Despite promises not to impact Social Security, the “third rail” of politics, signals from the new administration are not encouraging. DODGE czar Elon Musk, who is busily applying his chain saw to U.S. institutions, told Podcast Host Joe Rogan last week that Social Security is “the biggest Ponzi scheme of all time”. SSA Commissioner Dudek said he plans to cut at least 7,000 employees, even though at 60,000, its staff is at a 50 year low. Plans are afoot to close at least 47 regional offices, with many concentrated in the South and across the Southeast. Some of those were already slated for closure due to lack of in-person visits, but most were not. Critics of the Administration counter that it is difficult to see how slashing employees and local offices is going to lead to anything but longer waits and delays in getting benefits and customer service. According to Democratic Sen. Kirsten Gillibrand of New York, the White Plains hearing office in her state has 2,000 pending cases. If closed, she believes that beneficiaries will be required to travel between 24 and 135 miles to get to another office if it closes.
Dead People Over 100 Getting Benefits- Not!
DOGE and the President are concerned about waste and fraud. But many people are upset about the debunked conspiracy theory repeatedly recited by the President and Elon Musk that “millions and millions of dead people over the age of 100″ are receiving benefits”.
In fact the Social Security Agency reports that only about 90,000 people over 100 are receiving benefits, which is just about the number that the Census Bureau counts for that demographic. The total of the benefits they receive is nowhere near the amount cited by DOGE and others. (Note: the SSA does have millions and millions of people over 100 in its database, and many of those do not have death certificates. But only about 90,000 of them are receiving benefits).
Stricter New Repayment Requirements – 100% out of monthly check
The Social Security Administration just announced that it will immediately withhold 100% of any overpaid benefits, even if it was not the recipient’s fault. That could mean that some people would get no benefit at all until the overpayment is paid off. Previously, only the higher of 10% or $10 would be withheld per month. Per the National Committee to Protect Social Security & Medicare, the revised policy will lead to financial hardships for many recipients who have been overpaid by Social Security. In a statement that organization said: “This action, ostensibly taken to cut costs at SSA, needlessly punishes beneficiaries who receive overpayment notices — usually through no fault of their own”.
Meanwhile up in Maine
Residents up in Maine were upset by Commissioner Dudek’s new rule, now retracted, that new parents in Maine had to visit a Social Security office to obtain an SSAN for their children. He also withdrew an edict that funeral homes could not file death certificates electronically. Independent Maine Senator Angus King said in response that “this rapid reversal has raised many concerns… and left many unanswered questions about the future of Social Security”.
A long-standing crisis still looms
In addition to the concerns raised by the new Administration’s actions and plans, there remains the issue of Social Security trust funds running out of money in the mid 2030’s. Neither political party seems to be taking that issue seriously.
Stay tuned!
Changes are coming fast and furious. We will do our best to bring you accurate and useful information on the topic.
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