The Social Security Administration began making retroactive payments to approximately 3 million public sector workers and retirees this week, corresponding to January 2024.
These funds are derived from the Social Security Fairness Act, which was passed in January and modifies the calculation of benefits for specific groups.
The agency has confirmed that the monthly adjustments will begin in April. However, approximately 72% of state and local employees will not receive raises because their jobs are already covered by Social Security taxes, according to SSA documents updated on February 25.
Social Security Lump Sum Payments: Dates and Expected Amounts
“Only people who receive a pension based on work not covered by Social Security could see increases in their benefits,” according to the SSA.
Teachers, firefighters, police officers, and federal employees covered by the Civil Service Retirement System, as well as those receiving pensions from foreign systems, are among the beneficiaries.
Retroactive payments will be deposited into the bank accounts on file until the end of March. The SSA warned that the amounts would vary: some increases would be minor, while others would exceed $1,000 per month. President Biden predicted an average increase of $360.
Schedule and complexity in disbursements
The agency attributed the lengthy timelines to the technical challenges of recalculating monthly benefits for millions of cases. “Some jobs have to be done manually, on a case-by-case basis,” he informed me. It is currently processing claims from 3.2 million people whose payments were reduced due to the elimination of two rules.
Approximately 67 million Americans receive Social Security benefits, primarily pensions. Most people will not see any changes. The Social Security Administration will send postal notices to recipients of retroactive payments or monthly adjustments, though some will receive funds before the notifications.
Recommendations for those affected by this Social Security problem
The agency urged you to check the accuracy of your mailing address and direct deposit information at www.ssa.gov/myaccount or by calling 1-800-772-1213. Those who have never applied for spousal or survivor benefits should visit www.ssa.gov/apply.
Regarding the potential impact on spousal benefits, the SSA acknowledged that the rules are technical and vary depending on work histories. For specific cases, he recommended consulting their website’s specific questions section.
The SSA warned that the confusion caused by the new law has increased the risk of fraud. Unsolicited calls demanding payment in the form of gift cards or cryptocurrency to access benefits are common warning signs.
“The SSA does not ask or require that a person pay for assistance or that their benefits be started, increased or paid retroactively,” he reiterated. Potential scams can be reported at www.ssa.gov/scams.
