Latest news with #SocialSecurity-covered
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explains, referring to the Windfall Elimination Provision and Government Pension Offset (the two measures recently repealed).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.
USA Today
18-02-2025
- Business
- USA Today
Why reading your latest Social Security statement is a must before claiming benefits
Why reading your latest Social Security statement is a must before claiming benefits There are several important things you should know about Social Security. For example, American workers should know that the Social Security Administration takes your 35 highest inflation-adjusted years of income into consideration, and married couples should definitely know how spousal benefits work. However, if there's one thing I'd encourage people to do before claiming Social Security benefits, it would be to read your latest Social Security statement. Your Social Security statement is a document that the Social Security Administration issues for every American worker each year, and it is quick and easy to find. You can view your most recent Social Security statement on the SSA's website ( by creating an account if you haven't done so already. What information is in your Social Security statement? The most significant piece of information, and the one most people focus on, is an estimate of your Social Security benefits, based on your actual work record. However, your Social Security statement contains a lot more information than that. Here's a rundown of what you'll find: A year-by-year history of your earnings in Social Security-covered employment, up to each year's taxable maximum. This should be very thorough. Mine starts with the roughly $4,000 I made working at Burger King when I was 15. How much Social Security and Medicare taxes you and your employers have paid on your behalf over your career. Whether you've earned enough credits to qualify for benefits. In most cases, if you've worked for at least 10 years, you're eligible. Whether you would qualify for disability benefits if you were to become disabled. How much your family members could get if you were to unexpectedly pass away this year. Whether you qualify for Medicare benefits at age 65. Estimates of your future Social Security retirement benefits at every age ranging from 62 to 70. When your full retirement age is. A list of important information to know about Social Security benefits, and important links to find more information on common topics. How to use your Social Security statement When you view your Social Security statement, there are a few important things to focus on, especially if you're thinking about claiming Social Security benefits within the next few years. First and foremost, check your earnings record and make sure it looks right. It isn't completely unheard of for some earnings to be missing, and there is a phone number listed that you can call to report an error. Even if you're missing one year's earnings, it could have a major impact on your Social Security. It's also a good idea to see how your starting age affects your retirement benefit. Your benefit is permanently reduced if you start collecting it before full retirement and is permanently increased if you wait. As an example, if your full retirement age is 67, as it is with everyone born in 1960 or later, waiting until age 69 will increase your Social Security benefit by 16%. It's common knowledge that Social Security is higher, the longer you wait. But the statement can put some actual numbers behind it. For example, if you would get $2,000 per month at 67, waiting until 69 would result in $320 per month, or $3,840 per year, in additional retirement income. This might not matter if you've already decided that you're going to retire and claim Social Security, but if you're still at the point where you're considering your options, this information can certainly help you make a decision. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. The $ 22,924 Social Security bonus most retirees completely overlook Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies. View the "Social Security secrets" »
