Good news for millions of Social Security recipients! Thanks to the Social Security Fairness Act, many won’t have to wait long to see their benefits rise. The Social Security Administration (SSA) recently confirmed this exciting update.
This year, a new law repealed two major provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules previously reduced benefits for various workers, like teachers and first responders, who earned pensions from jobs that didn’t require Social Security taxes.
Former President Joe Biden highlighted that this change would permanently increase benefits for over 2.8 million people. Plus, retroactive payments will be rolled back to January 2024. Initially, it seemed that recipients would have to wait a year for these adjustments, but that’s no longer the case.
The WEP affected people who received pensions from public-sector jobs despite having paid into Social Security through other work. On the other hand, the GPO cut spousal benefits for those who didn’t pay into Social Security from their government jobs.
Now, the SSA has announced that about 3.2 million affected individuals will receive a one-time payment by the end of March. Starting in April, adjusted monthly benefits will kick in, with an average increase of around $360.
The SSA mentioned that the new payment amount might differ based on individual circumstances, such as the type of benefit received and the amount of pension income. Beneficiaries will get a notice in the mail explaining these changes.
So why the earlier delays? The SSA noted they were working on implementing the new act without disrupting their regular services. A hiring freeze and staff shortages had further complicated matters, and initially, the process could take over a year. However, they are now pushing to get these payments out much sooner.
Lee Dudek, the acting commissioner of Social Security, expressed that they want to roll out retroactive payments quickly. He assured that complex cases could take longer but emphasized the importance of getting benefits to deserving individuals as swiftly as possible.
John Hatton, from the National Active and Retired Federal Employees Association, echoed this sentiment. He shared that the announcement of quicker payments is fantastic news for many who have waited years for a resolution.
As payments begin in the coming weeks, the SSA advises beneficiaries to wait until April before checking on their retroactive payments, as these will be processed gradually. For questions about higher monthly amounts, it’s best to wait until after the first payment in April.
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