The long-awaited Social Security raise for government retirees, including teachers, police officers, and their spouses, may take longer than expected. The Social Security Administration (SSA) announced that those affected by the new law may have to wait more than a year before they start receiving adjustments to their monthly payments and any retroactive pay.
What’s Changed with the New Law?
On January 5, 2025, President Biden signed the Social Security Fairness Act into law, a significant piece of legislation that affects millions of government retirees. This law repeals two major penalties that have impacted the retirement benefits of government workers.
These penalties, the Windfall Elimination Penalty (WEP) and the Government Pension Offset (GPO), have long prevented retirees from receiving their full Social Security benefits. These rules applied to retirees who earned a pension from government jobs like teaching or law enforcement while also working in other jobs that contributed to Social Security.
With the repeal of these penalties, retirees can now expect to receive the full Social Security benefits they earned outside of their government careers. It’s expected that about 3 million retirees nationwide will benefit from this change, including nearly 94,000 people in Louisiana alone.
Why the Delay?
Despite the exciting news, beneficiaries will need to be patient. The SSA has indicated that it could take over a year to adjust the benefits and pay the retroactive amounts. The reason for the delay is a combination of factors, including staffing shortages at the SSA and a lack of funding to properly implement the law.
The SSA has stated that, while they are already helping some affected individuals, the current budget and staff levels are not sufficient to manage the increased workload. The law requires adjustments to both past and future benefits for over 3 million people, and since the law is retroactive, many recipients will be entitled to back payments as well.
“SSA’s ability to implement the law in a timely manner and without negatively affecting day-to-day customer service relies on funding,” the agency said in a statement. “The Act did not provide money to implement the law. This means that SSA must manage this significant workload while continuing to serve its regular customers.”
The SSA is also facing challenges due to a hiring freeze that has been in effect since November 2024. With fewer employees, the agency is struggling to keep up with the demand for services, including answering the thousands of calls it receives daily regarding the new law.
Expected Impact and Benefits
While the process of receiving the benefits may take longer than expected, the impact will be significant for those affected. The average monthly increase in Social Security benefits for retirees could be around $360. However, for some individuals, the monthly raise could exceed $1,000, depending on their specific situation.
Additionally, the retroactive nature of the law means that many retirees will eventually receive a lump sum payment covering back benefits, starting from January 1, 2024. This is great news for those who have been waiting for the full benefits they earned.
How to Prepare and Get Updates
If you’re one of the individuals affected by the law, you don’t need to worry about reapplying. The SSA will automatically adjust your benefits. However, you should make sure your contact information is up to date. If you’ve moved or changed your bank account details recently, you can update your mailing address and direct deposit information online at the official SSA website (www.ssa.gov/myaccount).
It’s also important to note that the SSA will continue to receive a large volume of calls and in-person visits about the new law. As a result, delays are expected. It’s advisable to stay informed through the SSA website for the latest updates and information.
Support for the New Law
The Social Security Fairness Act has been a priority for several lawmakers, including Republican Senator Bill Cassidy of Louisiana. Senator Cassidy worked hard to push the bill through Congress, and he’s eager to see it implemented quickly. “Congress delivered a huge win for those who were harmed by WEP and GPO but kept pushing,” he said. “Now, it’s just as important to ensure the SSA carries out the changes swiftly.”
As the SSA works to adjust millions of benefits, patience will be key for retirees. While it may take some time, the repeal of these penalties is a major step forward for many government workers who have spent years in their careers only to be unfairly penalized when it comes to their Social Security benefits.
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