Beginning this month, millions of retirees in the United States will see a significant increase in their Social Security benefits. This change will benefit former public sector employees, such as police officers, firefighters, teachers, and other government workers, who were previously subjected to retirement payment reductions.
According to The Motley Fool, the increase is the result of the Social Security Fairness Act, which eliminates two provisions that reduced payments for many beneficiaries.
This adjustment is not only permanent, but also retroactive to January 2024, which means that many retirees will receive lump-sum payments in addition to their regular benefit increases. While the average affected senior will receive a $360 monthly boost, some may receive up to $1,000 or more.
Why Are Some Retirees Getting More Money?
The Social Security Fairness Act, signed by former President Joe Biden in the final days of his term, removed two key provisions that had reduced benefits for certain retirees:
- Windfall Elimination Provision (WEP): Previously reduced retirement benefits for workers who also received a pension from a job not covered by Social Security.
- Government Pension Offset (GPO): Reduced spousal and survivor benefits for those who received a government pension.
With these provisions removed, the Social Security Administration (SSA) is working to automatically adjust benefits for eligible retirees. Initially, the SSA projected that these changes would take up to a year to complete, but automation has significantly shortened the timeline, allowing millions of beneficiaries to receive increased payments this month.
How to Ensure You Receive the Correct Payment
Beneficiaries should ensure that their banking information is current with the SSA, as any retroactive payments will be deposited into the account currently on file. If you need to update your payment information, the quickest way is to log into your my Social Security account or visit a local SSA office.
If your payment does not arrive within the next few weeks, the Social Security Administration has advised beneficiaries to wait until April to inquire about retroactive payments or their adjusted monthly benefit. In complex cases, the adjustments could take up to a year to be completed.
