India, May 7 -- There were increased fears about financial hardship for Social Security beneficiaries in the coming days. In light of such an impending scenario, the Social Security Administration announced that it is reducing its overpayment clawback rate to 50% from 100%. This information was circulated via an "emergency message" to Social Security beneficiaries on April 25.

The issue of this policy change stems from recovering overpayments to Social Security recipients. Earlier in March, it was announced by the SSA that 100% of the monthly checks issued will be held until the overpaid amount is recovered.

However, it had then sparked concerns about possible financial trouble if the checks were halted for the beneficiaries. Now, the S...