New Social Security Changes in California: Is Your Retirement Affected?

By: Eliot Pierce

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Governor Gavin Newsom has signed a new law that brings significant changes to Social Security benefits for foster youth in California. This new bill, known as AB 2906, ensures that foster children will now receive Social Security survivor benefits that have often been withheld or kept by the state.

The goal is to give financial support to foster youth when they turn 18 and help them avoid homelessness and other struggles as they age out of the foster care system.

In the past, many foster children were unaware of their benefits, and the funds were diverted by the state. Now, under AB 2906, these children and their legal guardians must be informed about the survivor benefits they are entitled to receive.

Key Changes to Social Security in California

ChangesEffect on Foster YouthEffect on Retirees
Survivor Benefits AllocationFoster youth will directly receive survivor benefits at 18No direct impact on retirees
Informing Legal GuardiansGuardians must be informed about the youth’s benefitsNo new requirements for retirees
Homelessness PreventionProvides funds to reduce foster youth homelessnessMay help improve overall social services infrastructure
Previous RegulationsBenefits often withheld from foster youthNot related to retirees

This bill was approved by the California legislature and gained strong support from advocacy groups like the Children’s Advocacy Institute (CAI) at the University of San Diego School of Law.

Amy Harfeld, the national policy director of CAI, stated that the funds foster children will receive under this law could be the difference between having a stable place to live and becoming homeless.

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Statistics show that about 29% of foster youth between the ages of 19 and 21 in California experience homelessness. For many of these young adults, the Social Security payments they are entitled to could have provided crucial financial support if the funds hadn’t been kept by the state.

Before the new law, California counties could apply for Social Security benefits on behalf of foster children without telling them or their guardians.

This meant that many foster children missed out on the benefits meant to help them transition into adulthood. The new law changes that, making sure they are aware of their rights and can access these funds.

Other states are also working to improve how Social Security benefits are handled for foster youth. As of this summer, 30 states and jurisdictions have made efforts to protect these benefits, with some places like Arizona, Washington, D.C., Oregon, and Massachusetts already having laws in place to prevent funds from being withheld from foster children.

This change is especially important for those foster youth whose parents paid into the Social Security system before retirement, disability, or death.

The new law ensures that these payments will now reach the young adults who need them the most, giving them a better chance at stable housing, education, and a better future.

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Governor Newsom’s decision to sign this bill is a step toward ensuring that California’s foster youth receive the financial support they deserve, while also addressing the state’s broader issue of homelessness among young adults aging out of foster care. This new law brings hope to thousands of young people who have been overlooked for far too long.

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