How COLA Is Calculated

The SSA bases COLA increases on inflation data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), focusing on third-quarter figures from July through September. Benefits are adjusted each year to help offset rising costs for essentials such as housing, food, and healthcare.

Why Your Social Security Check Might Be Smaller

Some beneficiaries have noticed reduced monthly payments in recent months. In many cases, the reason is repayment of Social Security overpayments.

Overpayment Recovery Rules

Beginning in late July 2025, the SSA implemented a policy to withhold 50% of monthly benefits from recipients who owe overpayments and have not arranged a repayment plan.

Overpayments can occur for various reasons, including income reporting errors or administrative mistakes — even when the beneficiary is not at fault.

According to records obtained through a Freedom of Information Act request, the SSA attempted to recover overpayments from approximately 2 million people during the fiscal year ending September 2023.

Key Overpayment Timeline

• Overpayment notices issued: Starting April 25, 2025
• Withholding began: Approximately July 24, 2025 (about 90 days after notice)

Repayment Options

Beneficiaries have several ways to repay overpayments:

• Online bill pay
• Credit card payments
• Check or money order

Requesting a Waiver

You may ask the SSA to waive repayment if:

• The overpayment was not your fault
• You cannot afford to repay the amount
• Repayment would be unfair or cause hardship