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Newsweek
7 hours ago
- Business
- Newsweek
Social Security Claims Skyrocket
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Claims for Social Security benefits have skyrocketed since the beginning of 2025, data from the Social Security Administration (SSA) reveals. In fiscal year 2024, the SSA processed 3.4 million retirement benefit claims. So far this year, individual retirement claims are up 13 percent compared to the same period last year, amounting to over 276,000 additional claims, according to analysis by the Urban Institute, a non-partisan think tank. Why It Matters Social Security payments are sent to around 70 million Americans every month. If this trend continues, the SSA is on pace to receive nearly 4 million online retirement claims in fiscal year 2025—an increase of more than 525,000 claims, or 15 percent over 2024. That would mark a sharp rise, given that from 2012 to 2024, the average annual increase was 3 percent, the Urban Institute reported. What To Know The rise in claims could be attributed to several reasons. The most significant change to Social Security benefits this year has been the passage of the Social Security Fairness Act. "This eliminated the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) from the Social Security Act," Chad Gammon, owner of Custom Fit Financial, explained to Newsweek, "meaning that they now qualified for Social Security benefits." The WEP and GPO reduced Social Security benefits for public-sector workers who didn't typically pay Social Security taxes. WEP affects their own benefits, even if they also worked jobs that did contribute. GPO reduced spousal or survivor benefits. Some 2.8 million people were impacted and became eligible for full Social Security benefits earlier this year. Stock image/file photo: A Social Security card with a Treasury check and U.S. Dollars. Stock image/file photo: A Social Security card with a Treasury check and U.S. Dollars. GETTY That bill was passed in early January and coincides with the uptick in applications. In January, 409,867 new claims were made for benefits, up from 277,490 in December 2023. It is the only time since currently published records, dating back to 2016, that more than 400,000 people have applied for benefits in a single month. This momentum of new applications has somewhat tapered off, although new benefit claims are still higher than usual. In February, 334,000 new claims were made, and 384,000 in March. Other factors may have also had a hand in why Social Security applications have gone up. The Trump administration's wide-ranging changes, including staffing cuts and new application rules, may have prompted more people to claim benefits, according to an analysis by the Urban Institute. Former SSA Commissioner Martin O'Malley has frequently warned that changes at the agency, mandated by the Department of Government Efficiency, could "drive Social Security into a total system collapse." Former acting commissioner Leland Dudek, who led the agency between January and May, said "fearmongering has driven people to claim benefits earlier." The ongoing retirement of Baby Boomer Americans, which has expanded the pool of people eligible for retirement benefits, along with improved lifespans, also likely contributes to the rise in claimants. What People Are Saying The SSA said in an April 29 press release: "SSA has made significant strides in implementing the Social Security Fairness Act, having paid over $14.8 billion in retroactive payments to more than 2.2 million individuals affected by the Windfall Elimination Provision and Government Pension Offset." The Urban Institute said in its analysis: "Looking ahead, it will be important to monitor whether changes in the SSA's administrative budget and the public's trust that Social Security will continue to provide promised benefits will affect the number of retirement claims and when people file." What Happens Next Social Security actuaries have long warned that the program is facing a projected shortfall, which could be exacerbated by a higher number of claimants. The trust fund, which, along with payroll taxes, helps pay for current retirement benefits, could be depleted by 2033, after which the system would be able to pay only 77 percent of scheduled benefits, according to a 2024 report by the Social Security Board of Trustees. "A surge in Social Security claims would have an immediate impact as it would add more total beneficiaries sooner than expected and draw on the fund sooner than expected," Gammon explained.
Yahoo
6 days ago
- Business
- Yahoo
Social Security says 2.5 million retroactive payments processed so far
The Social Security Administration (SSA) has processed 2.5 million retroactive payments for teachers, firefighters, police officers and others with public pensions who were previously locked out of retirement benefits, the agency said last week. Signed into law by President Biden in January 2025, the Social Security Fairness Act requires the agency to adjust benefits for 3.2 million people, including future and past benefits. So far, Social Security has completed 90% of its caseload, according to its May 27 update. Payments are going to public pension holders previously barred from collecting full benefits under the federal retirement program due to two federal policies: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act ended these provisions, opening the door for millions to receive retroactive payments dating back to January 2024. December 2023 was the last month the WEP and GPO applied, according to the SSA. The agency did not immediately respond to CBS MoneyWatch's request for comment. If you're eligible for these payments, read on for the latest from the SSA. When will I get my retroactive payment? The agency started issuing payments on Feb. 25. According to the SSA, beneficiaries should have received a one-time retroactive payment deposited into the bank account the agency has on file for them by the end of March 2025. In terms of the new monthly benefits, most eligible parties should have seen payment increases starting in April. There's a one-month lag for Social Security payments, so the April payments reflected March's benefit. What if I haven't gotten my payment yet? The SSA previously said that most Americans would have to wait up to a year or longer to receive their benefits. While the agency has been able to expedite payments using automation, more complicated cases need to be processed manually and will take longer as a result, according to its website. The SSA said it expects all beneficiary records to be updated by November 2025. Those eligible who have still not received their payment can check account or call 1-800-772-1213 to make sure the SSA has the right address and direct deposit information for them on file. "Ensuring that SSA has the correct information allows you to get any retroactive benefits and your new benefit amount quicker," the agency says in its update. There are still 900,000 Social Security Fairness Act cases which must be completed by hand, USA Today recently reported. SSA employees told the news outlet that they have been directed to prioritize these cases over their other work. How much will benefits increase? The amount of the added payments hinges on a few factors, such as the type of Social Security benefit and pension a person receives. Some people will see "very little" adjustments, while others could see over $1,000 each month, according to the SSA website. How will I know if my monthly benefit was adjusted? Any beneficiaries who receive a retroactive payment, or a monthly benefit adjustment, will receive a mailed notice from Social Security explaining the change. To learn more about your eligibility and how the Social Security payments work, visit the Social Security Fairness Act website. What if I never applied for retirement? If you never applied for retirement — or a spouse's benefits — due to the federal laws in place before the Social Security Fairness Act was passed, you may need to file an application. To do so, visit As of the week ending May 23, the agency has received over 200,000 new applications for benefits since the law passed, and has processed 87% of them, according to the SSA website. Sneak peek: Where is Jermain Charlo? Baldwin grills McMahon on unallocated funds for students, schools, approved by Congress Hegseth orders Navy to rename USNS Harvey Milk, Jeffries calls it "a complete and total disgrace"
CBS News
6 days ago
- Business
- CBS News
Social Security says 2.5 million retroactive payments have been processed. Here's what to know.
The Social Security Administration (SSA) has processed 2.5 million retroactive payments for teachers, firefighters, police officers and others with public pensions who were previously locked out of retirement benefits, the agency said last week. Signed into law by President Biden in January 2025, the Social Security Fairness Act requires the agency to adjust benefits for 3.2 million people, including future and past benefits. So far, Social Security has completed 90% of its caseload, according to its May 27 update. Payments are going to public pension holders previously barred from collecting full benefits under the federal retirement program due to two federal policies: the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The Social Security Fairness Act ended these provisions, opening the door for millions to receive retroactive payments dating back to January 2024. December 2023 was the last month the WEP and GPO applied, according to the SSA. The agency did not immediately respond to CBS MoneyWatch's request for comment. If you're eligible for these payments, read on for the latest from the SSA. When will I get my retroactive payment? The agency started issuing payments on Feb. 25. According to the SSA, beneficiaries should have received a one-time retroactive payment deposited into the bank account the agency has on file for them by the end of March 2025. In terms of the new monthly benefits, most eligible parties should have seen payment increases starting in April. There's a one-month lag for Social Security payments, so the April payments reflected March's benefit. What if I haven't gotten my payment yet? The SSA previously said that most Americans would have to wait up to a year or longer to receive their benefits. While the agency has been able to expedite payments using automation, more complicated cases need to be processed manually and will take longer as a result, according to its website. The SSA said it expects all beneficiary records to be updated by November 2025. Those eligible who have still not received their payment can check account or call 1-800-772-1213 to make sure the SSA has the right address and direct deposit information for them on file. "Ensuring that SSA has the correct information allows you to get any retroactive benefits and your new benefit amount quicker," the agency says in its update. There are still 900,000 Social Security Fairness Act cases which must be completed by hand, USA Today recently reported. SSA employees told the news outlet that they have been directed to prioritize these cases over their other work. How much will benefits increase? The amount of the added payments hinges on a few factors, such as the type of Social Security benefit and pension a person receives. Some people will see "very little" adjustments, while others could see over $1,000 each month, according to the SSA website. How will I know if my monthly benefit was adjusted? Any beneficiaries who receive a retroactive payment, or a monthly benefit adjustment, will receive a mailed notice from Social Security explaining the change. To learn more about your eligibility and how the Social Security payments work, visit the Social Security Fairness Act website. What if I never applied for retirement? If you never applied for retirement — or a spouse's benefits — due to the federal laws in place before the Social Security Fairness Act was passed, you may need to file an application. To do so, visit As of the week ending May 23, the agency has received over 200,000 new applications for benefits since the law passed, and has processed 87% of them, according to the SSA website.
Newsweek
6 days ago
- Business
- Newsweek
Social Security Fairness Act Update Given on Expanded Benefits
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Social Security Administration (SSA) has issued an update for those who have not yet received expanded benefits following the passage of the Social Security Fairness Act earlier this year. Why It Matters Lawmakers passed a bipartisan bill—the Social Security Fairness Act—that repealed two provisions that limited retirement benefits for certain workers, including teachers, firefighters, and police officers, some federal employees, and their spouses. Some 2.8 million people are now eligible for full Social Security benefits. While 91 percent of the those impacted are now receiving full benefits, there are still some "complex cases" that are taking longer to update. The SSA confirmed in April that it has already paid over $14.8 billion in retroactive payments to those impacted. What To Know The Social Security Fairness Act repealed two provisions: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). The WEP reduced Social Security benefits for individuals who receive pensions from public-sector jobs—such as those held by state and federal employees—that did not require Social Security payroll tax contributions. This reduction applied even if they contributed to Social Security through other employment and qualified for benefits. The GPO reduced spousal or survivor benefits for retired federal, state, and local government workers who did not pay into Social Security funds through their payroll taxes. A Social Security Administration sign on a field office building in San Jose, California, in 2020. A Social Security Administration sign on a field office building in San Jose, California, in 2020. GETTY Updated benefit amounts, as well as retroactive payments back to December 2023, began in April. But the SSA has confirmed that while more than 90 percent of cases are complete, there are still some outstanding that could not be processed as quickly due to their complexity. "For the many complex cases that cannot be processed automatically, additional time is required to manually update the records and pay both retroactive benefits and the new benefits amount," the SSA said in an update on its website. "We are expediting these cases now." If you are still awaiting your payment, you will receive a notice from the SSA about it. Payment Delays According to a report in USA Today, the newly appointed SSA Commissioner Frank Bisignano wants SSA staff to have every outstanding Social Security Fairness Act claim resolved by July 1, with staff directed to prioritize these claims over other customer requests and queries. Some employees have reportedly been offered overtime to work Saturdays and Sundays until the issue is resolved. Newsweek contacted the SSA for comment via email outside of regular working hours. What People Are Saying The SSA said in an April 29 press release: "SSA has made significant strides in implementing the Social Security Fairness Act, having paid over $14.8 billion in retroactive payments to more than 2.2 million individuals affected by the Windfall Elimination Provision and Government Pension Offset. Under President [Donald] Trump's leadership, the agency's original estimate of taking a year or more to issue payments now will apply to only complex cases that cannot be processed by automation." What Happens Next The SSA said on its website that retroactive payments and newly adjusted benefit amounts are being released "as we process each case" with the expectation that "all beneficiary records will be updated by early November 2025." Are you a Social Security worker with information to share on the Social Security Fairness Act backlog? Get in touch with
Yahoo
03-06-2025
- Business
- Yahoo
6 Budgeting Tips for Retirees After the Social Security Fairness Act
Changes in Social Security policy can cause alarm to those currently on or soon to be claiming benefits. However, one piece of legislation, The Social Security Fairness Act (SSFA), signed by President Joe Biden in the last couple of weeks of his presidency, is designed to help certain groups of Social Security recipients. Find Out: Read Next: Financial experts explained what the SSFA means for retirees, and some budgeting tips when these changes go into effect. The SSFA repeals the Windfall Elimination Provision (WEP) from 1989 and the Government Pension Offset (GPO) from 1977, according to Don Grant, a CFP and CFP Board ambassador at CFP Board. 'Those two programs affect approximately 2.8 million government workers who were considered to have been double-dipping if they were to collect Social Security benefits while receiving pensions from non-Social Security-covered public sector jobs or a government pension,' he explained. By eliminating the WEP and GPO programs, nearly 3 million public workers, including teachers, firefighters, police officers and federal employees, will now be allowed to take their Social Security benefits in addition to their pensions, Grant explained. Learn More: While the SSFA reinstated eligible recipients' Social Security benefits, retroactive through 2024, Grant pointed out that recalculating benefits for 3 million current retirees takes time and resources. 'That effort is ongoing and may be in jeopardy due to the current administration's efforts to slash budgets and manpower in the agencies that perform those recalculations,' he urged patience to government and/or public sector workers affected by WEP or GPO, who haven't received benefits yet. 'There is no assurance that you'll receive the benefits as directed by the SSFA's repeal of those programs, but you can hold out hope.' If you do end up receiving the extra benefits, be careful of how you spend it, according to George McFarlane, president of 7 Waters Advisors. 'First and foremost, it's important these retirees don't let this income boost lead to a change in their lifestyle,' McFarlane warned. 'Increased income could lead to increased spending.' Retirees may also want to visit with a tax advisor in case the income pushes them into a higher tax bracket, McFarlane said. 'This could happen, especially if the retiree is pulling money from pensions, IRAs or other investments. Looking into strategies to reduce taxable income may be necessary,' he said. Retirees should also consider using extra funds to build a larger safety savings account, such as an emergency fund. 'This account should be earmarked for emergency expenses that may arise in retirement. This account should be enough to cover six- to 12-months' worth of living expenses,' McFarlane said. Another smart move with extra income is to purchase long-term care insurance or estate planning vehicles (life insurance or trusts), McFarlane advised. 'These products can help retirees maintain control during retirement, while ensure there is a legacy left behind for your family after you're gone.' Regardless of how you plan to spend additional income, Grant urged some smart budgeting basics. First, look at your total income, from all sources (pension, rental properties, investment royalties, annuities, etc.) and then calculate your spending across 'needs' and 'wants.''Net your earnings to your spending. Do you come up short? Or do you have a surplus of income? If it's a surplus, you should be fine. If a deficit, there are several actions you can take. You have two choices: Spend less or make more.' One way to enhance your income would be to shift your investment allocation, Grant said. He recommended working with a CFP to build a 'more income centric investment portfolio.' This means finding products that are designed for income, such as dividend-bearing stocks, hedged equity funds and options-based those who are expecting but haven't yet received these increased benefits, should stick with their existing budgets and act as though the additional money may never come. That way, you won't overspend or make plans you can't afford. More From GOBankingRates How Much Money Is Needed To Be Considered Middle Class in Every State? 5 Types of Cars Retirees Should Stay Away From Buying This article originally appeared on 6 Budgeting Tips for Retirees After the Social Security Fairness Act Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
