Agency speeds up Social Security Fairness Act timeline, with lump sums, benefit increases for millions of people
The agency had previously said it could take "more than one year" to process benefit changes following the passage of the Social Security Fairness Act
The Social Security Administration has released a new expedited timeline for when more than 3.2 million individuals will see one-time payments and higher benefit checks following the enactment of a new law.
The Social Security Fairness Act was signed into law by President Joe Biden on Jan. 5 and eliminated two provisions — the Windfall Elimination Provision and Government Pension Offset — that reduced benefits for certain people who received pensions from work not covered by Social Security.
Those who are affected will get a one-time retroactive lump-sum amount, dating back to January 2024, and will see a spike in their monthly payments as part of a new law.
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Those benefit increases may range from "very little" to more than $1,000 per month, according to the Social Security Administration, depending on the type of Social Security benefit an individual receives and their pension amount.
The agency had previously said it "could take more than one year to adjust benefits and pay all retroactive benefits" under its current budget.
Lump sum payments to begin arriving in February
In a new update released on Tuesday, the SSA said it will begin issuing retroactive payments in February. Most people will receive the one-time payment by the end of March, according to the agency.
The SSA plans to process the increase to monthly benefits starting in April.
The new timeline "supports President Trump's priority to implement the Social Security Fairness Act as quickly as possible," Social Security acting commissioner Lee Dudek said in a statement.
"The agency's original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation," Dudek said. "The American people deserve to get their due benefits as quickly as possible."
Among those affected include some teachers, firefighters and police officers in certain states; federal employees who are covered by the Civil Service Retirement System and people who worked under foreign social security systems, according to the Social Security Administration.
What affected beneficiaries should know
Retroactive payments, which most people should receive by the end of March, will be deposited directly into bank accounts on file with the Social Security Administration.
All affected beneficiaries should receive a notice by mail from the Social Security Administration with details about their retroactive payment and new benefit amount. Those notices should come two to three weeks after the retroactive payments, according to the agency.
If your direct deposit information or current mailing address are up to date with the agency, no action is needed, according to the agency. If you want to double check the information the agency has on file, you may sign into your personal online account or call the agency.
If you want to ask about the status of your retroactive payment, the Social Security Administration urges you to hold off until April.
Beneficiaries should also wait until after they have received their April monthly check before contacting the agency to ask about their new benefit amount.
This story originally appeared on: CNBC - Author:Lorie Konish
