Big Changes Coming to Social Security Checks for Michiganders

Social Security recipients in Michigan could be in for a shock this July. A significant change is taking effect that may impact when or how much people receive in their monthly payments. While not everyone will be affected, many Michiganders who rely on these benefits may notice something different, and it’s catching some by surprise.

Why Some Michigan Recipients Will See Smaller Checks in July

In April, the Social Security Administration began notifying thousands of recipients that they had been overpaid, in some cases, months or even years ago. The agency is now moving forward with efforts to recover that money, and for many, that means a sudden reduction in their July benefit.

Most affected individuals were told they had 30 to 90 days to respond or request a waiver. But for those who didn’t act in time, the “clawback” begins now.

What the “Clawback” Means and Who It Affects

This so-called “clawback” refers to the agency reclaiming funds it says were mistakenly paid out, often through no fault of the recipient. Until recently, the Social Security Administration could demand full repayment all at once, even withholding an entire month’s check. But starting this summer, the agency has adopted a new standard: most affected recipients will now see 50% of their monthly benefit withheld until the overpayment is resolved, unless they’ve made other arrangements.

Say Goodbye to Paper Checks by 2025

July also marks the start of another major shift as the federal government begins phasing out paper checks in favor of electronic payments. While most Social Security recipients in Michigan already use direct deposit, those who still receive paper checks will eventually be required to make the switch.

The Social Security Administration says it will eliminate paper checks entirely by September 30, 2025, as part of a nationwide modernization effort.