If an overpayment is final, which beneficiary category is limited to a 10% deduction from their benefits to pay it back?

The correct answer is that Supplemental Security Income (SSI) beneficiaries are limited to a 10% deduction from their benefits to repay an overpayment that is considered final. This deduction rule is specifically designed to protect the financial well-being of SSI recipients, who often rely on limited income for their daily needs. The policy ensures that the reduction does not jeopardize their ability to meet essential living expenses, thus providing a safety net for some of the most vulnerable populations.

In contrast, other beneficiary categories, such as retirement beneficiaries and Medicare beneficiaries, follow different rules regarding the repayment of overpayments. These categories may have varying regulations that do not cap deductions at a specific percentage in the same manner as SSI beneficiaries. TANF recipients also face different criteria regarding repayment, which do not limit deductions in the way that SSI do. Therefore, the 10% deduction rule is unique to SSI beneficiaries, making it crucial for understanding how overpayments are managed within this specific context.