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Business Mayor
11-05-2025
- Business
- Business Mayor
As new Social Security leadership takes the helm, here are the changes beneficiaries need to watch
A Social Security Administration office in Washington, D.C., on March 26. The Department of Government Efficiency (DOGE) is reportedly aiming to reform and downsize the agency. Saul Loeb | Afp | Getty Images The Social Security Administration is under new leadership, after financial services executive Frank Bisignano was sworn in as commissioner this week. Bisignano's confirmation follows a host of changes at the federal agency during the first 100 days of the Trump administration, many of them through the Department of Government Efficiency. For the approximate 73 million beneficiaries who rely on monthly Social Security checks, those changes may affect how they receive services from the agency. From benefit increases for certain pensioners to changing policies on benefit withholdings and customer service, here are some of the biggest shifts of which beneficiaries should take note. Certain pensioners see benefit increases President Joe Biden after he signed the Social Security Fairness Act at the White House on Jan. 5 in Washington, D.C. Kent Nishimura | Getty Images News | Getty Images A new law that went into effect in January will provide almost 3 million individuals with increased Social Security benefits. The Social Security Fairness Act provides higher monthly Social Security checks for individuals who also receive pensions from work that did not include payment of Social Security payroll taxes. It will also provide lump sum retroactive payments starting from January 2024. Monthly benefit increases may range from 'very little' to 'over $1,000 more each month,' according to the Social Security Administration, which began those adjustments in February. The change affects certain workers such as teachers, firefighters and police officers; federal employees under the Civil Service Retirement System; and people who work under foreign social security programs, according to the agency. Those workers had previously seen their benefits reduced or eliminated due to the Windfall Elimination Provision and Government Pension Offset, which have been nixed with the new law. More from Personal Finance: Social Security reduces benefit clawback rate Trump administration restarts student loan collections What experts say about claiming Social Security benefits early In the first 100 days of the Trump administration, SSA has paid more than $14.8 billion in retroactive payments to more than 2.2 million individuals, according to the agency. The agency has expedited the processing of the benefit changes under President Donald Trump. However, it may take a year or more to issue payments for some cases that cannot be processed through automation, according to the agency. Read More Is your money lying idle in a bank? What you should do New default withholding rate for repaying benefits Fertnig | E+ | Getty Images Social Security beneficiaries are sometimes overpaid benefits due to errors. When that happens, the Social Security Administration requires the extra money to be repaid to the agency. Because it can take months or years to catch on to those mistakes, beneficiaries can be on the hook to repay big sums. That money may be withheld from benefit checks until the overpayment has been repaid. The Social Security Administration has made various adjustments to the default withholding rate from benefits. In response to complaints that a 100% default withholding rate caused financial hardship for affected beneficiaries, the agency under President Joe Biden changed that default withholding rate to 10% of a beneficiary's monthly benefit or $10, whichever was greater. Under Trump, SSA has had a tougher stance on overpayments. In March, the agency announced it planned to reinstate the default withholding rate to 100% of an individual's monthly benefit. The change was estimated to generate about $7 billion in overpayment recoveries in the next decade. However, the agency recently issued an emergency message notifying its employees that new overpayment notices sent on or after April 25 will have a 50% default withholding rate. That applies to retirement, survivors and disability insurance benefits. The withholding rate for Supplemental Security Income, or SSI, benefits is still 10%. Some experts worry a 50% default withholding rate is still too high. 'Losing 50% [of benefits] for a lot of people could put them into immediate economic hardship,' Richard Fiesta, executive director of the Alliance for Retired Americans, recently told Student loan debtors may have benefits garnished Overpayment of Social Security is not the only reason benefits may be withheld. On May 5, the government resumed collections efforts on federal student loans in default. Now, the Education Department may use the Treasury Department Offset Program to withhold benefits for defaulted loans, as well as other payments like tax refunds and salaries. Some of those garnishments could start as soon as June, according to the Education Department. The Social Security Administration may also withhold current and future Social Security checks for child support, alimony or restitution payments, according to the agency. The IRS may take a portion of Social Security payments until it recoups the full balance of overdue federal tax debts. Beneficiaries face long wait times for service The Social Security Office in Alhambra, California. Mario Anzuoni | Reuters Individuals who call SSA's 800 phone number face long hold times before they speak to someone at the agency. To make an in-person appointment, they must either call that number or visit the website, which has experienced glitches. Those difficulties are 'neither new nor unique to the current administration,' Republican House Ways and Means Committee members recently wrote to Bisignano. Meanwhile, Democrats worry those difficulties could signal bigger problems ahead. In a bid to reduce wait times, the agency has encouraged individuals to use its web site when possible. The agency is in the process of modernizing its telecommunications platform, which is expected to allow it to better manage calls and provide more self-service options. The rollout, which is expected to be completed by the end of this summer, has helped improve answer rates and average speed of answer, based on early results, according to the Social Security Administration. As Bisignano takes the helm, advocacy groups are urging for the agency to make the needs of its beneficiaries a priority. 'The vast majority of his current customer base cannot transact financial business through anything other than face to face contact in an office or on the telephone, and they have to be prepared to accommodate that,' said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare. Some may be required to make in-person office visits A Social Security Administration (SSA) office in Washington, DC, March 26, 2025. Saul Loeb | Afp | Getty Images The Trump administration tasked the Department of Government Efficiency with curbing 'waste, fraud and abuse' at federal agencies. Under DOGE, the Social Security Administration sought to make it so services that could previously be handled over the phone would need to be done in person at an agency office to prevent fraud. However, the agency has since scaled back that policy to allow for claims for retirement, survivor and spousal and children's benefits to still be permitted over the phone. Individuals making other claims, including Social Security disability insurance, Medicare and Supplemental Security Income, can also still use the agency's 800 number. Notably, changes to direct deposit information will mostly still need to be handled either online or in person. Consequently, almost 2 million more elderly and disabled individuals may need to visit Social Security offices in person annually, the Social Security Administration has revealed. The online process may be difficult for some individuals because it requires multi-factor, multi-step online verification and a one-time PIN code, CBPP notes. Previous estimates have found that about 42% of older adults may lack access to reliable broadband service, according to the AARP. In some cases, people may be able to change their direct deposit information over the phone if they are also able to verify their identity online, according to Freese. The agency has 'left this very convoluted system in place to use the telephone in order to change your banking information, but for the vast majority of seniors and members of the disability community, they're never going to be able to use it,' Freese said. Direct deposit fraud represents less than one-hundredth of one percent of benefits that are misdirected, according to the Center on Budget and Policy Priorities. Digital Social Security cards available this summer Douglas Sacha | Getty Images The Social Security Administration plans to roll out a new secure digital form of identification as an alternative to traditional paper cards beginning early this summer. The new digital feature will allow individuals who have either forgotten their Social Security number or who have lost their Social Security cards to access their personal number online through the agency's My Social Security website. They will also be able to access their Social Security numbers through digital devices and display them as identification for 'reasons other than handling Social Security matters,' according to the agency. With the new effort, the agency aims to reduce the inconveniences caused by lost or stolen cards, which currently requires individuals to apply for replacements either online or in person.
Yahoo
26-03-2025
- Business
- Yahoo
What we know about claim DOGE stopped payments to children whose parents died
On March 22, 2025, Barry Kaufmann, president of the New York State Alliance for Retired Americans, said (archived) at a rally in White Plains, New York, that Small Business Administration loans "discovered" (archived) by the Department of Government Efficiency paid to children 11 or younger were actually "survivor benefit annuities" — using the same SBA acronym — paid to children whose parents had died. Kaufmann said (at 44:10): As an example, DOGE claims to have found Social Security loans going to 11-year-olds and under. Not! SBA is not a loan, it's a survivor benefit annuity to young children whose parents have passed. That's the problem with IT programmers and billionaires without a clue doing jobs they don't understand. You can't find what you don't know. Kaufmann's claim spread across Facebook (archived), X (archived), Threads (archived), Reddit (archived) and Bluesky (archived). However, it was unclear how Kaufmann backed his claim about the confusion over the two different SBAs. While it is almost certain from his wording that he was referring to DOGE's SBA loan announcement on March 9, the claim of the funding belonging to the survivor benefit annuity — a benefit paid to eligible spouses, or sometimes children, of federal retirees — clashes with what federal officials have said. The Small Business Administration confirmed the existence of more than "5,500 loans, totaling about $312M" to businesses "whose only listed owner was 11 years old or younger" on March 12 — 10 days before Kaufmann's claim. DOGE had said it was working with the SBA to "solve this problem." We have reached out to Kaufmann and the SBA to further understand the claim and await their replies. A survivor benefit annuity is a benefit available to federal employees under the Civil Service Retirement System and the Federal Employees Retirement System. The benefit is normally paid to surviving spouses or ex-spouses, but according to the Office of Personnel Management (OPM), the federal government's central human-resources agency, children can be eligible if they are dependent on the retiree who chose the benefit. "Dependent" in this context means that the deceased "made regular and substantial contributions to the child's support." We reached out to the OPM, which manages the federal retirement plans, to ask how much money it paid to children 11 or younger under this benefit in 2020-21, when DOGE said the loans were paid out, and await a reply. Meanwhile, the details surrounding the loans allegedly discovered by DOGE remained unclear. The @DOGE or @DOGE_SBA X accounts, the former of which is generally used for DOGE's public communications, had not posted more information at the time of this writing. The SBA had not provided further details about the loans at the time of this writing. "Kaufmann: DOGE Claims to Have Found Social Security Loans Going to 11 Year Olds and Under. ." Bluesky, 22 Mar. 2025, An Autistic Witch. Learning witchcraft at every level. "Automatically Assuming SBA Payments Means 'Small Business Association' Loans and Not 'Survivor Benefits Annuity'." Facebook, 24 Mar. 2025, @Clobean4. "Kaufmann - "DOGE Claims to Have Found Social Security Loans Going to 11 Year Olds and Under." X, 24 Mar. 2025, @DOGE. "In 2020-2021, SBA Granted 5,593 Loans for $312M to Borrowers Whose Only Listed Owner Was 11 Years Old or Younger at the Time of the Loan." X, 9 Mar. 2025, FEBA. "Understanding Your Federal Employee Benefits | What Is a Survivor Benefit Annuity?" FEBA, 10 Aug. 2023, Give A Shift About Nature. "DOGE Claims to Have Found Social Security Loans Going to 11-Year-Olds and Under. ." Facebook, 23 Mar. 2025, "Learn More about Survivor Benefits and Retirement." U.S. Office of Personnel Management, Accessed 25 Mar. 2025. @seedanesti. "Elon Musk Told Millions of People That 8 and 11 Year Old Children Were Receiving Business Loans from Social Security." Threads, 20 Mar. 2025, Social Security Works. "Hands Off Social Security." Facebook, 22 Mar. 2025, u/RoyalChris. "Kaufmann - ' 'DOGE Claims to Have Found Social Security Loans Going to 11 Year Olds and Under." Reddit, 22 Mar. 2025,
Yahoo
27-02-2025
- Business
- Yahoo
3.2 million people get boosted Social Security: Who qualifies for retroactive payments?
(NEXSTAR) – A law signed by former President Joe Biden in January is starting to show its impact, as millions of people begin to receive bigger Social Security payments plus back pay. The change comes after the bipartisan Social Security Fairness Act was passed and signed into law in the final weeks of Biden's term as president. The law rescinds measures that limited Social Security benefits for recipients if they got retirement payments from other sources, including public retirement programs from a state or local government. What does it take to be middle class in 2025? New study explains As a result, about 3.2 million people who worked as police officers, firefighters, teachers and in other public service roles will now get larger Social Security payments. Because the change is effective dating back to January 2024, eligible recipients also get retroactively paid for the extra money they were missing out on for about the past year. The back-paid amount is expected to come in one lump-sum payout. The people impacted include some teachers, officers, firefighters, federal workers who were covered by the Civil Service Retirement System, and people who were covered by another country's social security system, the Social Security Administration says. That doesn't mean every former teacher or cop will suddenly get more money, however. 'Most state and local public employees – about 72 percent – work in Social Security-covered employment where they pay Social Security taxes and are not affected by WEP or GPO,' the Administration explains, referring to the Windfall Elimination Provision and Government Pension Offset (the two measures recently repealed). 'Those individuals will not receive a benefit increase due to the new law.' Anyone who qualifies under the change will receive a notice in the mail explaining the new benefits, but some may receive the extra money before they receive a letter. 'Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail, because the President understands how important it is to pay people what they are due right away,' the Administration says. Why you won't receive a Supplemental Security Income check in March The one time retroactive payments started going out on Feb. 24, and will hit most people's bank accounts by the end of March, the Administration says. The process is largely automated, but some more complex cases will need individual review, and those payments could come later. The new, increased monthly payments will start in April. It depends on the person, but there's a pretty big range of possible outcomes. The Social Security Administration says some may see their monthly benefits increase 'very little' while others could get $1,000 more. The Congressional Budget Office estimated in September that eliminating the Windfall Elimination Provision would boost monthly payments to the affected beneficiaries by an average of $360 by December 2025. Ending the Government Pension Offset would increase monthly benefits in December 2025 by an average of $700 for 380,000 recipients getting benefits based on living spouses, according to the CBO. The increase would be an average of $1,190 for 390,000 or surviving spouses getting a widow or widower benefit. The Social Security Administration asks people wait until after they receive their April monthly benefit before asking questions about the retroactive payment or the increased benefit amount. Frequently asked questions may be answered on the Social Security Fairness Act site. The Associated Press contributed to this report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
The Hill
26-02-2025
- Business
- The Hill
3.2 million people get boosted Social Security: Who qualifies for retroactive payments?
(NEXSTAR) – A law signed by former President Joe Biden in January is starting to show its impact, as millions of people begin to receive bigger Social Security payments plus back pay. The change comes after the bipartisan Social Security Fairness Act was passed and signed into law in the final weeks of Biden's term as president. The law rescinds measures that limited Social Security benefits for recipients if they got retirement payments from other sources, including public retirement programs from a state or local government. What does it take to be middle class in 2025? New study explains As a result, about 3.2 million people who worked as police officers, firefighters, teachers and in other public service roles will now get larger Social Security payments. Because the change is effective dating back to January 2024, eligible recipients also get retroactively paid for the extra money they were missing out on for about the past year. The back-paid amount is expected to come in one lump-sum payout. Who qualifies for the bigger payments? The people impacted include some teachers, officers, firefighters, federal workers who were covered by the Civil Service Retirement System, and people who were covered by another country's social security system, the Social Security Administration says. That doesn't mean every former teacher or cop will suddenly get more money, however. 'Most state and local public employees – about 72 percent – work in Social Security-covered employment where they pay Social Security taxes and are not affected by WEP or GPO,' the Administration explains, referring to the Windfall Elimination Provision and Government Pension Offset (the two measures recently repealed). 'Those individuals will not receive a benefit increase due to the new law.' Anyone who qualifies under the change will receive a notice in the mail explaining the new benefits, but some may receive the extra money before they receive a letter. 'Most people will receive their retroactive payment two to three weeks before they receive their notice in the mail, because the President understands how important it is to pay people what they are due right away,' the Administration says. When do the increased payouts begin? When will the retroactive payment go out? The one time retroactive payments started going out on Feb. 24, and will hit most people's bank accounts by the end of March, the Administration says. The process is largely automated, but some more complex cases will need individual review, and those payments could come later. The new, increased monthly payments will start in April. How much bigger are the new payments? It depends on the person, but there's a pretty big range of possible outcomes. The Social Security Administration says some may see their monthly benefits increase 'very little' while others could get $1,000 more. The Congressional Budget Office estimated in September that eliminating the Windfall Elimination Provision would boost monthly payments to the affected beneficiaries by an average of $360 by December 2025. Ending the Government Pension Offset would increase monthly benefits in December 2025 by an average of $700 for 380,000 recipients getting benefits based on living spouses, according to the CBO. The increase would be an average of $1,190 for 390,000 or surviving spouses getting a widow or widower benefit. What should you do if you believe you qualify for increased payments, but don't see any change? The Social Security Administration asks people wait until after they receive their April monthly benefit before asking questions about the retroactive payment or the increased benefit amount. Frequently asked questions may be answered on the Social Security Fairness Act site.
NBC News
28-01-2025
- Business
- NBC News
Over 3 million Social Security Fairness Act beneficiaries may wait more than a year for higher payments: agency
More than 3.2 million people will see increased Social Security benefits, under a new law. However, individuals who are affected may have to wait more than a year before they see the extra money that's due to them from the Social Security Fairness Act, the Social Security Administration said in an update on its website. 'Though SSA is helping some affected beneficiaries now, under SSA's current budget, SSA expects that it could take more than one year to adjust benefits and pay all retroactive benefits,' the agency states. The Social Security Fairness Act eliminates two provisions — known as the Windfall Elimination Provision and Government Pension Offset — that previously reduced Social Security benefits for certain beneficiaries who also had pension income provided from employment where they did not contribute Social Security payroll taxes. Those provisions reduced benefits for certain workers including state teachers, firefighters and police officers; federal employees who are covered by the Civil Service Retirement System; and individuals who worked under a foreign social security system. The law affects benefits paid after December 2023. Consequently, affected beneficiaries will receive increases to their monthly benefit checks, as well as retroactive lump sum payments for benefits payable for January 2024 and after. The benefit increases 'may vary greatly,' depending on an individual's type of Social Security benefits and the amount of pension income they receive, according to the Social Security Administration. 'Some people's benefits will increase very little while others may be eligible for over $1,000 more each month,' the agency states. The Social Security Administration said it cannot yet provide an estimated timeline for when the benefit adjustments will happen. In the meantime, the agency is advising beneficiaries to update their mailing address and bank direct deposit information, if necessary. In addition, non-covered pension recipients may now want to apply for benefits, if they are newly eligible following the enacted changes.
