In January, former President Biden signed a law that would increase monthly Social Security payments for over 3.2 million people by an average of $360 for over 2.5 million recipients. The Social Security Administration (SSA) announced that it was immediately starting to pay retroactive benefits and will increase monthly payments beginning in April to those individuals.
What Is the Social Security Fairness Act?
The Social Security Fairness Act was signed into law by former President Joe Biden just before he left office in January. The Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP) were terminated by the Act.
For those who got a pension based on their employment but did not pay Social Security taxes because Social Security did not cover their position, the WEP and the GPO both decreased or abolished Social Security payments.
What does this mean for you if you’re getting an extra payment?
Many people who will be impacted by the WEP and GPO being mitigated, won’t need to do anything. These people anticipate receiving payments or notifications in the upcoming weeks, or they should have gotten them already.
But just in case, you should make sure your postal address and direct deposit details are up to date on your “my Social Security” account. You should call the SSA(1-800-772-1213) or apply online if you were disqualified by the WEP or GPO and never filed for retirement, spousal, or survivor benefits, or if you are unsure if you did.
What should you do if you believe you qualify for increased payments, but don’t see any change?
The SSA advises customers wait until after they get their April monthly benefit before raising inquiries regarding the retroactive payment or the enhanced benefit amount. Frequently asked questions may be answered on the Social Security Fairness Act webpage.
How much will Social Security payments increase?
Individuals will see different changes in their payment amounts based on the type of pension and benefit. According to the Social Security Administration, “some people’s benefits will increase very little, while others may be eligible for over $1,000 more each month.”
The SSA states that the majority of the affected beneficiaries will begin receiving their revised payments for their March benefit in April since Social Security benefits are paid one month behind schedule.
The law’s benefit increase would take effect in December 2023. The entire payment will be made retroactively to a year ago to qualified claimants who previously only got partial payments.
Payment Schedule and Distribution
The SSA has implemented a staggered payment schedule to ensure a smooth transition:
- Birth dates 1–10: Payments will be made on the second Wednesday of the month.
- Birth dates 11–20: Payments will be made on the third Wednesday of the month.
- Birth dates 21–30: Payments will be made on the fourth Wednesday of the month.
Beneficiaries who are expected to receive retroactive payments for missed benefits should’ve seen these payments from January 2024, however most recipients were expected to receive their payments by the end of March, with monthly increase in benefits starting April 2025.
Challenges and Future thoughts
Although the Social Security Fairness Act is a positive starting point, it also brings about many questions regarding the long-term operation of the program.
The guarantee of extra Social Security payment is a significant positive change for millions of Americans. Not only does it provide financial relief, but it also gives a Americans a sense of dignity in terms of the retirement system. Beneficiaries can be rest assured to look forward to a brighter and secure future as the SSA continues to roll out these benefits.