If you are among the millions of public sector retirees anticipating higher Social Security benefits due to the recent legislative changes, there’s some news you should be aware of. While the Social Security Fairness Act promises increased payments, many recipients are facing delays in receiving these benefits.
Why are social security payments delayed?
The Social Security Fairness Act, signed into law on January 5, 2025, eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These provisions previously reduced benefits for individuals who had pensions from non-Social Security-covered employment. With their repeal, over 2 million retirees are set to receive increased benefits. However, the Social Security Administration (SSA) is grappling with implementing these changes. Due to budget constraints and staffing shortages, the SSA has indicated that processing these adjustments is complex and may take more than a year.
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How much will your social security benefits increase?
The repeal of WEP and GPO means that many retirees will see a boost in their monthly Social Security payments. According to the Congressional Budget Office, eliminating WEP will increase monthly benefits by an average of $360 for about 2.1 million beneficiaries by December 2025. For those affected by the GPO repeal, spousal benefits are expected to rise by an average of $700, and survivor benefits by about $1,190.
What should you do while waiting for increased benefits?
While it’s understandable to feel anxious about these delays, there are steps you can take:
- Stay Informed: Regularly check the SSA’s official website for updates on the implementation process.
- Verify Your Information: Ensure that the SSA has your current mailing address and direct deposit details. You can update this information through your personal “my Social Security” account online.
- Plan Ahead: Consider how you’ll manage your finances during this waiting period. If possible, avoid making financial commitments based solely on the anticipated increase.
Understanding the social security fairness act
The Social Security Fairness Act aims to rectify long-standing disparities affecting public sector employees. By repealing WEP and GPO, the law ensures that retirees receive the full benefits they’ve earned without reductions due to other pensions. This change is significant for many, including teachers, firefighters, and police officers, who have dedicated their careers to public service.
Potential impact on social security’s future
While this increase in benefits is welcoming to many, there is the need for consideration on all levels of its ramification. This additional drain, some analysts fear, may accelerate the draining of the Social Security Trust Funds beyond what could be provided by future adjustments or reforms.
Although promising changes are offered by the Social Security Fairness Act, every individual should prepare for delays after knowing their rights. In such a way, you will confront fewer problems while taking steps in advance, and you will already be aware of the wider perspective.
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