Big changes are coming from the Social Security Administration (SSA) regarding direct deposit for many beneficiaries.
Big changes are coming
The SSA will implement stricter identity verification procedures to reduce fraudulent claims. This would force millions of claimants and beneficiaries to visit the agency’s field offices instead of calling the agency.
To verify their identity in person, those who cannot use my Social Security account will have to go to their local Social Security office. The SSA recently canceled in-person appointments at seven field offices, so if you choose this approach, make sure your local Social Security field office is still open before visiting. In addition, the account gives you more flexibility and control over how you manage your Medicare and Social Security income. In addition to claiming benefits and updating your direct deposit information, you can also print your 1099s and check the status of a claim.
The agency also said it will speed up the processing of beneficiary requests to change their direct deposit, both online and in person, to one business day, in addition to the change in identification verification. Internet direct deposit changes were previously suspended for 30 days.
Over the next two weeks, SSA will transition to stricter identification verification procedures for both new benefit applications and direct deposit changes. The new safeguards are designed to further protect Social Security information and payments from fraud.
March 31 will mark the beginning of a new era in which SSA will begin enforcing its new online digital identity verification system and in-person identity verification for new beneficiaries and direct deposit update requests. The waiting period for implementing direct deposit will also be reduced from the original 30 days to one day.
What can beneficiaries expect?
The new law will benefit federal employees covered by the Civil Service Retirement System, some teachers, firefighters, and police officers in many states, as well as those whose work was previously covered by a foreign social security system.
These changes will also pay retroactive benefits and increase monthly payments to all those whose benefits were affected by the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions eliminated Social Security benefits for millions of people who received a pension based on work not covered by Social Security.
Beginning in January 2024, the WEP and GPO will no longer apply, making many beneficiaries eligible for a retroactive payment. By the end of March, most people will receive their one-time retroactive payment, which will be deposited into the bank account on file with Social Security.
Social Security will send a notice explaining the benefit change or retroactive payment to anyone whose monthly benefit will be changed or who will receive a retroactive payment. Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail.
Because these payments will be phased in during March, Social Security advises beneficiaries to wait until April to inquire about the status of their retroactive payment. Beneficiaries should wait until they receive their April payment before calling Social Security to inquire about their monthly benefit amount, as the new monthly payment amount will begin with the April payment.
Looking Ahead
Beneficiaries need to make sure they understand the changes in Social Security payments, as it is important for them to be able to manage their finances seamlessly. By making sure they are aware of the new schedules, amounts, and deadlines, beneficiaries can avoid confusion and plan accordingly.