The United States Social Security Administration (SSA) announced that the first wave of Social Security claims resulting from the Social Security Fairness Act, which was signed into law on January 5, has been processed, and checks are now being sent out.
The Social Security Fairness Act eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which have been reducing Social Security benefits for certain retirees who also receive pension income. These provisions have affected nearly 3 million Americans, including police officers, firefighters, postal workers, and public-school teachers.
While the number of payments processed so far is a small fraction of those who may be eligible for increased benefits, the SSA is actively working on processing more claims. According to a spokesperson from the SSA, approximately 30,000 new initial claims have been processed, and some beneficiaries are receiving retroactive payments based on their age and entitlement factors.
The delay in payments is attributed to the retroactive nature of the new law, which requires adjustments to past benefits in addition to future benefits. However, the SSA has highlighted the lack of funding provided in the Act to calculate these changes for millions of affected Americans. The agency’s staffing shortages and ongoing hiring freeze have also contributed to the delay in processing claims.
Initially, beneficiaries were informed that they might have to wait a year or more to receive any additional payments. Still, the SSA now expects beneficiaries eligible for retroactive payments to receive them by the end of March. Monthly benefit adjustments will be reflected in April payments, covering the month of March.
To expedite payment processing, the SSA advises beneficiaries to ensure their information is up to date. Individuals filing new claims can track the status through their my Social Security account, while current beneficiaries affected by WEP or GPO should review their mailing address and direct deposit details on file with SSA.
The repeal of WEP and GPO, established in 1983, has sparked controversy despite bipartisan support for the Social Security Fairness Act. Advocates of the rules argue that they prevent overpayment to individuals who have earned substantial pension income from non-covered jobs. The Windfall Elimination Provision reduces Social Security for those with non-covered pension income, while the Government Pension Offset reduces survivor or spousal benefits if the pension is non-covered.
In conclusion, the repeal of WEP and GPO remains a hot topic, with differing opinions on its implications for public workers and Social Security beneficiaries. The SSA continues to work on processing claims efficiently, with updates provided on their website for affected individuals.