Latest news with #financialdistress
Yahoo
10-05-2025
- Business
- Yahoo
You Could Still Lose Half Your Benefits: Social Security Reduces Overpayment Withholding Rate, Experts Warn Of Fallout
A recent shift in how the Social Security Administration handles benefit overpayments may offer partial relief — but it still comes with serious consequences. Effective April 25, the SSA began withholding up to 50% of monthly Title II benefits, such as retirement, disability, or survivor payments, from those who received overpayments. While that's a step back from the previously announced 100% clawback, experts say the new policy can still leave retirees and other beneficiaries in financial distress. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — Overpayments happen when the SSA sends out more money than a person is actually owed. This can occur for several reasons, including agency errors or delays in processing information — like changes to a beneficiary's income, living situation, or marital status. When the SSA determines that an overpayment has occurred, it sends a notice asking for full and immediate repayment. If the beneficiary doesn't respond within roughly 90 days — by requesting a waiver, a reconsideration, or a lower repayment rate — the SSA begins automatically withholding funds. According to an emergency message from the SSA, the new policy sets a default withholding rate of 50% for all new overpayment notices beginning April 25. This means half of a beneficiary's monthly check may be withheld until the debt is paid off — unless they take action. Trending: The average American couple has saved this much money for retirement —? The SSA's decision follows backlash against a previous plan to withhold 100% of benefits for overpaid recipients. That plan, announced earlier this year, would have left some individuals without any income at all. Critics, including advocacy organizations and lawmakers, called the full clawback "draconian." While the reduced rate is seen as progress, it's far from a full solution. "If you're relying on your benefits to pay your rent or your mortgage and buy food, losing half of that income is going to be devastating and can still result in people becoming homeless," Kate Lang, director of federal income security at Justice in Aging, told CNBC. Richard Fiesta, executive director of the Alliance for Retired Americans, told CNBC the change still risks causing "immediate economic hardship" for many, particularly when the overpayment was not the beneficiary's — but it's not always straightforward. Beneficiaries can request a reconsideration, a waiver, or a lower withholding rate. However, responses can vary depending on the SSA employee handling the case. "There are thousands of employees that individual beneficiaries are going to be dealing with to ask for a waiver or ask to negotiate a different repayment rate," Lang said. "And those employees have a lot of discretion in what they decide." Plus, long wait times for SSA appointments can make it harder for people to respond in time. If you get a notice, act quickly. According to the SSA, you typically have about 90 days to challenge it before the SSA begins withholding up to 50% of your monthly benefit. Experts recommend contacting the SSA as soon as possible to explore your options. You may be able to reduce the withholding rate or avoid repayment altogether if you weren't at fault for the overpayment. While the SSA's decision to cut the withholding rate from 100% to 50% may sound like good news, the fallout could still be serious for many retirees. Stay informed, respond quickly to any overpayment notice, and don't hesitate to ask for help if you need it. Read Next: The team behind $6B+ in licensing deals is now building the next billion-dollar IP empire — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article You Could Still Lose Half Your Benefits: Social Security Reduces Overpayment Withholding Rate, Experts Warn Of Fallout originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
08-05-2025
- Business
- Reuters
Malaysia's Capital A shareholders approve up to $1.4 billion capital reduction
May 8 (Reuters) - Malaysia's Capital A ( opens new tab, which owns airline AirAsia, said on Thursday its shareholders and debtholders approved a capital reduction plan of up to 6 billion ringgit ($1.4 billion), as the company aims to shrug off its 'financially distressed' tag. Capital A was severely impacted by pandemic-era travel curbs and its equity declined to below 50% of subscribed capital, due to which it was designated as a 'PN17' financially distressed entity by Malaysia's stock exchange in 2022. Last month, the company announced the capital reduction plan to bolster its balance sheet and offset losses, which amounted to 475.1 million ringgit last year. Capital A said it will seek the country's high court's confirmation for the capital reduction plan, and that is on track to exit the PN17 status by the middle of this year. Besides the capital reduction, Capital A's proposed regularisation plan includes divesting its aviation business to long-haul affiliate AirAsia X ( opens new tab, which shareholders have already approved. This will help the company pivot toward non-aviation ventures, with a strategic focus on expanding its digital services and logistics operations. ($1 = 4.2650 ringgit)
Yahoo
07-05-2025
- Business
- Yahoo
State auditor's office investigates Winston-Salem/Forsyth County Schools' finances
FORSYTH COUNTY, N.C. (WGHP) — Financial distress is how the North Carolina Department of Public Instruction characterized Winston-Salem/Forsyth County Schools following the 2024 audit. FOX8 received a copy of the letter from State Auditor Dave Boliek that was sent to WS/FCS Superintendent Tricia McManus on April 21. The letter states that the state auditors' office will conduct an investigation of the school district's financial records. According to the audit of 2024, the district is short $16 million. The state auditors' office used strong language in the letter, stating that anyone with any knowledge of fraud should come forward. An investigation has been launched into the WS/FCS budget by the state of North Carolina. In the letter, Boliek informed McManus that the school system is being audited, and it is centered around the district's financial records and transactions, including payroll and use of federal grants. On May 1, the NCDoPI sent a letter to the district with a detailed breakdown showing the school system overspent by $16 million. Where did that money go? That's the question a newly hired financial firm is trying to answer for the district. The state is giving the school system until May 15 to get to the bottom of it. There's a lot on the line for the district. That May 1 letter says the district needs to make changes or face sanctions. North Carolina Board of Education Chairwoman Deanna Kaplan was copied on that letter. She declined to answer questions or provide an interview. She sent the following statement. We are deeply concerned about the issues raised by the State. We want the community to know that the Board is committed to adopting and maintaining a balanced budget. We take this responsibility seriously. Being in good financial standing is something we are all committed to achieving. We will develop a plan to submit to the State Board of Education that will address the financial concerns as well as outline steps to mitigate future budget issues. North Carolina Board of Education Chairwoman Deanna Kaplan Forsyth County Board of Commissioners Chairman Don Martin says he is hopeful the school system can figure it out. 'Because never has the county had to bail out a school district in any situation, and I'm really hoping that's not going to happen in any way this time,' Martin said. Martin said that he doesn't think this will impact the county receiving grants further down the road. 'Doubtful that would be a limitation. Essentially, the district is a large organization that is stable aside from this one little blip at this point. I think that could be corrected and would not inhibit a federal reward in any kind of way,' Martin said. The school system said in an email that they are working with a financial firm to come up with a plan. Martin said he has been invited to sit in on the meeting next week to get a plan underway. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. For the latest news, weather, sports, and streaming video, head to FOX8 WGHP.
