The Senior Citizens League (TSCL) proposes a one-time $495 payment to Social Security recipients, utilizing recovered benefit overpayments to help offset lower Cost of Living Adjustments (COLA) expected in 2026.

Key Points About the Proposal:

• Targets nearly 70 million Social Security beneficiaries
• Aims to counter the projected 2.2% COLA increase in 2026
• Would be funded by $6.5 billion in recovered SSA overpayments

Changes to SSA Overpayment Policy:

• Starting March 27, 2025: 100% repayment requirement reinstated
• Applies to all new overpayments
• Excludes Supplemental Security Income (SSI)
• Could result in complete withholding of monthly benefits until debt clearance

TSCL's Position:

• Advocates using recovered overpayments for direct relief
• Highlights unfairness of aggressive clawbacks on vulnerable seniors
• Emphasizes need for financial support amid rising living costs

SSA's Response:

• Acting Commissioner Lee Dudek supports stricter repayment rules
• Projects $7 billion recovery over next decade
• Cites responsibility to protect trust funds

Recommended Actions for Beneficiaries:

1. Monitor SSA accounts for overpayment notices
2. Prepare for potentially lower COLA in 2026
3. Create conservative budget plans
4. Stay updated on policy changes

The proposal requires federal approval before implementation. While not guaranteed, it's gaining attention as a potential solution for seniors facing financial challenges.

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