Social Security recipients may receive one-time $495 payment

A new proposal suggests that Social Security recipients could receive a one-time payment of $495, funded by recovering overpayments. This comes as the Social Security Administration (SSA) faces criticism for its handling of overpayments, which totaled $6.5 billion in 2022. The SSA has reinstated a policy requiring full repayment of overpayments made after March 27, reversing a previous limit on deductions. This change has drawn mixed reactions, with some advocating for more support for seniors facing repayment challenges. The SSA defends the policy as necessary for protecting public funds, projecting it could recover $7 billion in overpayments over the next decade. The proposal aims to address concerns over a lower-than-expected Cost of Living Adjustment in 2026.