Congress Passes Social Security Fairness Act, Adjusting Benefits for Millions
During his final days in office, President Joe Biden signed the Social Security Fairness Act, enhancing retirement benefits for 3.2 million seniors in the U.S. For those affected, this adjustment could mean receiving up to $1,100 more per month.
As of April 25, the Social Security Administration has processed 2.3 million benefit adjustments. However, approximately 900,000 Americans are still awaiting their increases. If you find yourself among them, here’s what you need to know.
Manual Processing Needed for Complex Cases
Over 80% of seniors impacted by the Social Security Fairness Act have received their benefit adjustments. The swift processing was possible due to automation for straightforward cases. Unfortunately, some cases are more complex, necessitating manual reviews. As a result, those individuals have not yet seen their adjusted payments.
Real employees of the government will need to manually review these complex cases, which will take additional time. Watch for notifications from the Social Security Administration. These notices will inform you when your monthly benefit amount has been adjusted and detail the expected increase.
If you are eligible, you may also receive a one-time retroactive payment dating back to January 2024, the effective date of the law. Beneficiaries who claimed during that period will receive a lump sum to reconcile differences between what they received and what they are eligible for under the new act.
The Social Security Administration is currently processing retroactive payments and benefit adjustments on a rolling basis, aiming to complete updates for all affected beneficiaries by early November.
Questions About Your Eligibility for the Act
It’s important to note that most seniors will not see changes to their benefits under the Social Security Fairness Act. The Act primarily affects individuals who had amounts withheld under the Windfall Elimination Provision (WEP) or the Government Pension Offset (GPO). This often includes retirees receiving pensions from employers who did not contribute to Social Security, such as many teachers, police officers, and firefighters. However, not all of those in these groups will qualify for an increase.
If you are unsure about your eligibility for the Social Security Fairness Act, contacting the Social Security Administration is advisable. Be prepared for potentially long wait times for phone assistance and extended waits for in-person appointments.
For those who are affected, ensure that the agency has your correct address and direct deposit information. The quickest method to verify this is through your online my Social Security account.
Setting up an account only takes a few minutes. You’ll need to provide your Social Security number and answer some identity verification questions. After that, you can establish a username and password for future access.
Monitor your monthly benefits closely. In some cases, revised payouts have been issued before recipients received official notices. If your payment remains unchanged come November, reach out to find out the status of your benefits.
Potential Overlooked Benefits
Many Americans may be behind on retirement savings, yet several little-known “Social Security secrets” could uplift your retirement income. One simple strategy might increase your annual income by as much as $22,924—ensuring you can retire with confidence and peace of mind.
For further insights on maximizing your Social Security benefits, explore these strategies.
The views expressed herein represent the author’s opinions and do not necessarily reflect those of Nasdaq, Inc.
