The Social Security Fairness Act makes significant changes to how benefits are calculated for certain individuals.
This new law repeals the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have previously reduced or eliminated Social Security benefits for over 3.2 million people.
These people typically receive a “non-covered pension,” which is a pension from jobs that did not contribute to Social Security.
This change is especially beneficial to certain groups, such as teachers, firefighters, and police officers in various states.
It also affects federal employees covered by the Civil Service Retirement System, as well as those employed under a foreign social security system.
However, only those who receive a pension from non-covered work will see an increase in their Social Security benefits.
Those eligible for retroactive benefits under this Act will receive a one-time payment into their registered Social Security bank account by the end of March.
This payment will reflect increased benefits beginning in January 2024, when the WEP and GPO were officially removed.
Because Social Security benefits are paid a month behind schedule, the majority of affected beneficiaries will receive their adjusted monthly benefit in April 2025, which will cover their March 2025 benefit. This delay is consistent with the standard Social Security payment process.
Beneficiaries should wait to receive their April payment before contacting Social Security with questions about their benefit amount. The updated payment will not be displayed until then.
The impact of this change varies with the type of Social Security benefit and the size of the individual’s pension.
While some may see a slight increase, others may receive more than $1,000 per month.
By eliminating the WEP and GPO, the Social Security Fairness Act seeks to create a more equitable system for those who have dedicated their careers to public service.
Beneficiaries should stay informed throughout the transition, and the Social Security Administration is expected to guide them to ensure a smooth process.
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