AMERICANS are set to receive retroactive Social Security payments that will benefit millions – find out if you qualify.
It was announced that these payments will begin immediately after a key change in Social Security law in the US.
GettyIt was announced that these payments will begin immediately after a key change in Social Security law in the US[/caption]The main reason the payments will be retroactive is because of the recent change to the Government Pension Offset (GPO), as well as the Windfall Elimination Provision (WEP).
These two Social Security loopholes reduced or even eliminated the benefit for some 3.2million Americans, mainly public servants, as The US Sun reported.
The GPO can reduce benefits for spouses, widows and widowers who also receive government pensions of their own.
WEP can shrink benefits for those who also receive a pension or disability benefit from an employer who did not withhold social security taxes.
These two provisions were recently overturned by the Senate through the The Social Security Fairness Act 2023.
Now, the result of this bill is beginning to be felt for millions who have been missing out on their government benefits.
Lee Dudek, Acting Commissioner of Social Security, said: “Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible.
“The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation.
“The American people deserve to get their due benefits as quickly as possible.”
The people who mainly stand to benefit include some teachers, firefighters, and police officers in many states.
In addition, federal employees covered by the Civil Service Retirement System and people whose work had been covered by a foreign social security system will benefit.
Many of the beneficiaries will be entitled to a one-time payment, which is scheduled for the end of March, per the Social Security site.
These are expected to be deposited into the respective bank accounts, and an exact date is not yet known.
Many will also receive monthly benefits, which will first be reflected in the benefit payment they receive in April.
This will depend on a variety of factors such as the type of Social Security benefit received and the amount of the person’s pension.
Those eligible for this will first be notified by Social Security.
Most are expected to receive their retroactive payment two to three weeks before they receive their notice in the mail.
Those expecting payment are encouraged to wait until the end of April before inquiring about any missing payments, as these payments will process incrementally into March.
FINANCIALLY VULNERABLE
As mentioned, often it was public servants that bore the brunt of these provisions before The Social Secuirty Fairness Act 2023.
This meant those most in need of financial benefit, like Social Security, did not get any help.
President of Bryan Firefighters Association Daniel Buford said: “We’re talking about employees that are teachers, firefighters, police officers, some of our federal workers, post office workers.
“These two provisions, they rob us of a retirement that through service we are due, and it makes us financially vulnerable after we retire.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here's how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
401(k) Plans A 401(k) is a retirement account offered through employers, where contributions are tax-deferred. Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings. Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority. IRAs An Individual Retirement Account (IRA) offers another avenue for retirement savings. Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices. Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.“It’s been 40 years in the making.
“Now it’s time for us to do the right thing to take care of those people who have given a career choice to serve other people and serve their communities.”
John Riddle, president of the Texas State Association of Fire Fighters, commented: “So, when that happens, when they get ready to retire because they have a pension, they don’t get their full social security benefit even if they have worked, which a majority work a second job.”
“Getting the full social security benefit will make a big difference to them and their ability to eat and turn the lights on and all of that stuff.
“So, it would be a huge benefit for our members around the state.”
The Social Security Fairness Act passed the Senate with a 76-20 vote on December 21, 2024.
GettyThe result of The Social Security Fairness Act 2023 is beginning to be felt for millions who have been missing out on their government benefits[/caption] Read More Details
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