In early January, former US President Joe Biden eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) laws. These policies lowered or eliminated Social Security benefits for over 3.2 million people who received pensions for work not covered by Social Security because they didn't pay Social Security taxes.
In a 25th February press release, the Social Security Administration (SSA) notified that some teachers, firefighters, police officers, federal employees covered under the Civil Service Retirement System, and people whose work was covered by a foreign social security system will start receiving one-time retroactive payments immediately under the Social Security Fairness Act.
However, the benefits won't increase for workers of state and local public employees whose roles are covered by Social Security.
Monthly Benefits Could Increase By £787
The agency expects most people to receive their one-time, retroactive payments by the end of March. Many eligible people will also receive higher monthly Social Security cheques.
The SSA stated that increased monthly benefits would be first reflected in payments sent out in April. However, the extent of the benefit hike will depend on factors like the type of benefits received and the public pension amount. Some could see monthly benefits increase by up to £787 ($1,000).
'Social Security's aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump's priority to implement the Social Security Fairness Act as quickly as possible,' said Lee Dudek, Acting Commissioner of SSA. 'The agency's original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation.'
Wait Until April To Inquire About Payment Status
The SSA mentioned that new benefits will be directly deposited into bank accounts registered with the agency. Recipients who notice a change in their monthly Social Security benefits or receive retroactive payments will also receive a notice in their mail detailing the changes. The notice will likely arrive a few weeks after the payments have been sent.
The agency is leveraging automation to expedite the process but will continue to handle complex cases manually. These cases will likely take additional processing time to ensure recipients receive the correct benefits.
'We urge beneficiaries to wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March,' the SSA noted. 'Beneficiaries should also wait until after receiving their April payment before contacting SSA to ask about their monthly benefit amount because the new amount will not be reflected until April for their March payment.'
The SSA also explained that if beneficiaries have their Medicare premiums deducted from their Civil Service Retirement System annuity and then apply for Social Security benefits, premiums will be deducted from their monthly Social Security cheques.
