Over 3 Million Social Security Beneficiaries May Face Delays of More Than a Year for Increased Payments, SSA Says
The Social Security Fairness Act promises higher payments for over 3 million beneficiaries, but many may have to wait more than a year for the adjustments due to processing delays.
More than 3.2 million Social Security beneficiaries are set to receive higher payments following the passage of the Social Security Fairness Act, but many will experience significant delays before the increases are reflected in their checks. According to an update from the Social Security Administration (SSA), it could take over a year for the necessary adjustments to be made.
The SSA explained that while some beneficiaries may begin receiving the increased amounts soon, the agency’s current budget and resources could prevent it from processing all the changes and retroactive payments within the next year. As a result, many people affected by the law will have to wait for their higher benefits, including lump-sum retroactive payments.
The Social Security Fairness Act eliminates two provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—which previously reduced benefits for individuals with pension income from jobs where they did not pay Social Security payroll taxes. These provisions had impacted workers like state teachers, firefighters, police officers, federal employees under the Civil Service Retirement System, and those who had worked under foreign social security systems.
The new law, which applies to benefits paid after December 2023, will result in higher monthly benefit checks and retroactive lump sums for eligible beneficiaries. However, the increases will vary significantly, depending on the individual’s specific situation, including their type of Social Security benefits and the amount of pension income they receive.
The SSA stated that for some beneficiaries, the benefit increase will be modest, while others may see as much as $1,000 more per month. Despite this, the agency has not yet provided a timeline for when the benefit adjustments will be fully processed.
In the meantime, the SSA is urging affected beneficiaries to ensure their mailing addresses and bank direct deposit details are up-to-date to avoid any delays. Additionally, those who are newly eligible for benefits under the changes are encouraged to apply for Social Security benefits.
As the agency works to process the necessary changes, many beneficiaries will need to remain patient as they await the increased payments due to them.