(NEXSTAR) – A major change in how the Social Security Administration (SSA) handles benefit overpayments is set to kick in Thursday.

Starting March 27, the Social Security Administration will start to withhold 100 percent of a person's monthly benefit to recoup any outstanding overpayment amount. The current clawback rate, which was set by President Biden, is 10%.

The Office of the Chief Actuary estimates that the policy will translate to roughly $7 billion in savings over the next decade.

“We have the significant responsibility to be good stewards of the trust funds for the American people,” said Lee Dudek, acting commissioner of Social Security, in a statement. “It is our duty to revise the overpayment repayment policy back to full withholding, as it was during the Obama administration and first Trump........

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