Additional Coverage:
- Millions Will See a $360 (Or More) Social Security Increase in April (financebuzz.com)
Social Security Boost Coming for Millions
Millions of Americans can expect larger Social Security checks thanks to the Social Security Fairness Act, signed into law on January 5, 2025. This new law eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced benefits for certain retirees.
What the Social Security Fairness Act Means for You
The WEP and GPO impacted retirees receiving pensions from jobs not subject to Social Security taxes, often affecting teachers, police officers, firefighters, and federal employees. The WEP reduced benefits for those with such pensions, while the GPO lowered or eliminated spousal and survivor benefits. The repeal of these provisions will restore full benefits for those affected.
Who Qualifies for Increased Benefits?
Approximately 3.2 million people previously affected by the WEP and GPO are expected to see an increase in their benefits. This includes public employees whose agencies did not collect Social Security taxes, federal employees under the Civil Service Retirement System (CSRS), and workers covered by foreign Social Security systems. It’s important to note that not all public employees will see an increase – only those whose pensions were based on work not covered by Social Security.
Payment Timeline and Amounts
Eligible individuals will receive retroactive payments back to January 2024. The Social Security Administration (SSA) began issuing these one-time payments on February 25, 2025, and expects to complete distribution by the end of March.
Increased monthly payments will begin in April 2025. The average benefit increase is estimated at $360 per month, with some individuals potentially receiving increases of $1,000 or more.
How to Ensure You Receive Your Payment
Most eligible recipients don’t need to take any action. However, it’s recommended to verify your mailing address and direct deposit information through your My Social Security account or by calling the SSA. Those who never applied for benefits due to WEP/GPO ineligibility may need to file a new application.
Changes to Medicare Premiums
If your Medicare premiums were deducted from your pension affected by the WEP or GPO, they will now be deducted from your Social Security check. Those using Medicare Easy Pay or online bill payments may need to adjust or cancel these.
Financial Planning Next Steps
The Social Security Fairness Act will provide much-needed financial relief to millions of retirees. Now is a good time to consult a financial planner to discuss how to manage these increased benefits.
You can also explore additional ways to supplement your retirement income and stretch your savings further. Stay informed by checking your SSA account and monitoring mail and email for updates.
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- Millions Will See a $360 (Or More) Social Security Increase in April (financebuzz.com)