Codification of former policy regarding recovery of Social Security overpayments

(a) In general Section 204(a)(1)(A) of the Social Security Act (42 U.S.C. 404(a)(1)(A)) is amended— (1) by striking With respect to payment and inserting (i) Subject to clause (ii), with respect to payment; and (2) by adding at the end the following new clause: (ii) (I) With respect to adjustment or recovery on account of an overpayment pursuant to clause (i), the amount of any monthly benefit payable to such person under this title shall be decreased by the Commissioner of Social Security by an amount equal to the greater of— (aa) 10 percent of such monthly benefit, or (bb) $10. (II) Subclause (I) shall not apply in the case of a person who— (aa) received payment of more than the correct amount as a result of fraud or similar fault (as defined in section 205(u)(2)), or (bb) elects to waive application of such subclause and requests that the Commissioner of Social Security impose a greater decrease in the amount of monthly benefits payable to such person under this title than the amount otherwise determined under such subclause.. (b) Effective date The amendments made by this section shall apply with respect to overpayment determinations made on or after March 25, 2024, and to any other overpaid amounts that have not been recovered as of such date.