Beginning this month, millions of seniors in the United States will see a big rise in their Social Security income. This reform would help former public sector employees, including as police officers, firefighters, teachers, and other government professionals, who were previously subjected to retirement payment cutbacks.
According to The Motley Fool, the boost is the result of the Social Security Fairness Act, which eliminates two clauses that decreased benefits for many retirees. This modification is not only permanent, but also retroactive to January 2024, which means that many retirees would get lump-sum payments in addition to their regular benefit increases. While the average affected senior will receive a $360 monthly raise, some may receive up to $1,000 or more.
Why Are Some Retirees Getting More Money?
The Social Security Fairness Act, signed by former President Joe Biden in the final days of his term, removed two key provisions that had reduced benefits for certain retirees:
- Windfall Elimination Provision (WEP): Previously reduced retirement benefits for workers who also received a pension from a job not covered by Social Security.
- Government Pension Offset (GPO): Reduced spousal and survivor benefits for those who received a government pension.
With these protections removed, the Social Security Administration (SSA) is trying to automatically modify benefits for eligible retirees. Initially, the SSA projected that these improvements would take up to a year to complete, but automation has substantially shortened the schedule, allowing millions of recipients to receive enhanced payments this month.
How to Ensure You Receive the Correct Payment
Beneficiaries should ensure that their banking information is updated with the SSA, since any retroactive payments will be put into the account currently on file. If you need to update your payment information, the quickest way is to log into your my Social Security account or visit a local SSA office.
If your payment does not arrive within the next few weeks, the Social Security Administration has encouraged beneficiaries to wait until April to inquire about retroactive payments or their modified monthly benefit. In difficult circumstances, the modifications could take up to a year to be completed.
