If you are one of the millions of Americans who rely on monthly checks from the Social Security Administration, several social security changes are now in effect and how they affect you depends on various factors. Some of these changes could be good news while others could create unexpected confusion and challenges. Either way, you need to stay updated and learn how the changes could affect you.
Implementation of the Social Security Fairness Act
This is a major Social Security change that could increase monthly checks for millions of beneficiaries. Before the former President, Joe Biden, left office, he signed the Social Security Fairness Act, which repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These two initially reduced benefits for workers, especially teachers, firefighters, and police officers who received pensions from jobs not covered under Social Security.
The implementation of the Social Fairness Act will now see over 3.2 million affected retirees start receiving larger checks this month, with an average increment of $360 every month. Due to the repeal of the GPO, spousal beneficiaries will also see an increase of up to $700 monthly, while widows and widowers will receive up to $1,190 more.
Strict Identity Verification
Another Social Security change now in effect is a new, stricter identity verification process. Anyone applying for benefits or updating existing information will now have to verify their identity by visiting a Social Security office in person. They can also do so through “My Social Account,” but those without internet access or who are not computer gurus might find this change inconvenient.
This change was enacted to prevent fraud and protect beneficiaries’ money. Now, you either have to visit the SSA offices in person or do the verification online.
Direct Deposit Changes Will be Faster
This is good news for many since, following the change, what used to take 30 days will now take only one business day. Therefore, there will be no delayed bank transactions anymore. You can make these changes using your “My Social Account” or by calling the SSA, but this is only possible until April 14, 2025, when strict identity verification will take effect.
100% Recovery of Overpayment is Back
This is bad news for many beneficiaries who had received overpayments because they will now lose 100% of their monthly benefits until the debts are cleared. Under the former President Joe Biden administration, the recovery of overpayments had been capped at 10% of monthly benefits. This eased the financial burden of SSA errors, but under the administration of President Trump, the old rule is back, and many taxpayers are about to lose their entire monthly benefits.
If this change affects you, you can appeal the decision, ask for a reduced payment plan, or request a waiver, but you will have to prove that the overpayment was not your fault and that 100% repayment would burden you financially.
Conclusion
These Social Security Changes are in effect, while others will start taking effect soon. Every beneficiary will be affected either negatively or positively by every change, depending on their benefits, communication preferences, and banking. While some beneficiaries receive increased monthly checks, others will be at risk of losing their benefits due to overpayments.
Considering the above changes, it is important to have a “My Social Account” because it offers the easiest way to monitor your benefits and stay informed about policy changes at the Social Security Administration.
You could also take advantage of this grace period before some of the changes take effect and ensure that you do as required. For instance, if you need to apply for Social Security or update your details, you still have until April 13, 2025, to do so by calling the SSA or using my Social Security account.
Above all, be updated to avoid these new rules from catching you off guard and probably causing you to lose your monthly benefits or encounter delays.