00:00 Speaker A
The Trump administration has announced two high-profile changes in social security. It says that it is intended to combat waste and fraud. With more details we have Yahoo Finance's own Jordan Weissmann. Jordan, what do we know about this?
00:16 Jordan Weissmann
Uh yes, so this caused a little controversy in recent weeks. I want to start with what I think is the big one for most Yahoo readers and viewers, namely that if you now receive a social security for a fee, Trump administration says it will try to claw that money back by taking no less than 100% of your entire monthly benefit check. It takes your entire check or garnish the check. UM This reforms a reform that the Biden administration has introduced that they would take a maximum of 10% of your monthly benefit if you were paid too much. UM This will be a major problem for people about a social security disability, which UM often receives about payments because of the weird work rules in that program. But it can also influence some seniors. And of course it is controversial because the reason that they had the BIDEN administration forms that reform to start with is that they discovered that some beneficiaries of social security were affected with tens of thousands of dollars to too many paid fines, often because of their own, but because of the processing of delays and things. So you know, be careful with this and keep in mind that if you get an over payment, it will try to do something early.
2:34 AM Speaker A
Jordan, how quickly can this take effect?
02:46 Jordan Weissmann
UH that this UH starts to operate after March. So it's going ahead. It does not apply to people who had previously had payments. Uh, you know, also the second change that I want to talk a bit about UM, perhaps not that big in the schedule of things, but it received a lot of attention, namely that the Social Security Administration will no longer enable people to change their direct deposit information by telephone. They will let you do it personally or through their online portal. This is what she is to prevent direct deposit fraud, EH people who call and claim to be a family member and change someone's account. Eh how often that really happens is a bit unclear. The reason that this initially received so much attention was that it was reported that the Trump administration considered much, much stricter limits to what you could do with social security by telephone. They either did not let that report well, or they have given up those plans. UM but still, they will limit UH that your assets to change your account. Again, this is important for seniors, because sometimes they are not so good with computers or that they may not be able to go to an office for social security. UM and every now and then their account information can change for reasons outside their control, as their bank merges. So it might be a bit more a hassle for some people. Keep in mind, you know, if something changes with your UH Direct Deposit information, go on in advance before your check is about to land.
04:58 Speaker A
Okay, great to follow these stories, Jordan. Appreciate it.
5:04 AM Jordan Weissmann
Thank you for having me.
