Social Security Payments Set to Rise for Retirees in April – What’s the New Amount?
Your CNS —-
Beginning in April, nearly three million Social Security beneficiaries in the United States will see an increase in their monthly payments as a result of the repeal of two provisions that had previously reduced their benefits.
This change coincides with the implementation of the Social Security Fairness Act, a law signed by former President Joe Biden shortly before leaving office.
The repeal of these regulations will primarily affect retirees who previously worked in the public sector and did not contribute to Social Security, resulting in significant reductions in their checks under previous rules.
The Social Security Administration (SSA) has confirmed that, in addition to increased payments in April, many people will receive retroactive payments for March.
What Changes with the Social Security Fairness Act
The new law eliminates two key provisions:
- Windfall Elimination Provision (WEP): This affected approximately two million retirees who worked in the public sector without paying into Social Security but were also entitled to benefits from other jobs where they did contribute. This provision reduced their payments, an issue that is now resolved.
- Government Pension Offset (GPO): This impacted 800,000 beneficiaries, primarily widows or widowers receiving a pension from a public sector job where they did not pay Social Security taxes. The rule significantly reduced survivor benefits, in some cases almost eliminating them.
How Payments Will Be Affected and Who Will Receive More Money
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The SSA has confirmed that, with the elimination of these provisions, beneficiaries will receive payment adjustments beginning in April. However, the exact amount will depend on factors such as work history and type of benefit received.
In addition, many beneficiaries affected by these reductions before 2024 will receive a one-time retroactive check in March to cover the amounts they have missed out on since the law went into effect.
To demonstrate the impact of this change, the SSA gave an example: A retiree with a $3,000 pension from a public sector job who was also eligible for $2,100 in Social Security benefits from a deceased spouse.
Under the previous rule, two-thirds of their pension was deducted from their survivor benefits, leaving them with just $100 in Social Security payments. The new law eliminates this reduction, and they will receive the full amount.
The SSA has assured that most payments will be processed automatically, but cautioned that some more complex cases may take longer to resolve. Beneficiaries will receive a mailed notice with their new payment amounts and any potential retroactive payments.