Recent federal law may make you eligible for higher Social Security benefits if you are a current or former employee of the public sector, or if you are the spouse, ex-spouse, or survivor of one.
Two long-standing federal laws that have traditionally decreased or abolished Social Security benefits for pensioners who have held employment that did not contribute to Social Security at some point in their careers are repealed by the Social Security Fairness Act.
With an average monthly gain of $360 for the remainder of their lifetimes, millions of recipients might profit from this move. Determining your prospective Social Security benefits and creating efficient claiming procedures might be greatly aided by consulting with a financial counselor.
Retirees Celebrate Retroactive Social Security Payments for 2024
The Social Security Fairness Act, which President Joe Biden signed into law on January 5, 2025, marked a dramatic change in the retirement benefits system. Millions of seniors now have better access to government retirement benefits because to this act.
In order to do this, it repealed two rules that were passed more than 40 years ago and that restricted benefits for those who were receiving pensions and employees of companies that did not pay Social Security taxes.
Impact of the New Law on Social Security Benefits
With the potential to enhance the financial stability and standard of living for numerous retirees and their families, this legislation is a major advancement.
A turning point in Social Security policy was marked by the recent repeal of two significant laws: the Government Pension Offset (GPO) of 1977 and the Windfall Elimination Provision (WEP) of 1984.
By lowering payments for those who worked for a portion of their careers in government, religious, and nonprofit positions that provided pensions but did not deduct Social Security taxes, these legislation initially sought to increase Social Security funds.
Millions now qualify for either new benefits or increases to their existing payments as a result of the new legislation’s enactment. Biden estimates that the typical benefit boost will cost $360.
Interestingly, these increases take effect retroactively from 2024, so qualified retirees may get a lump sum payout to make up for the benefits they were not able to collect under the prior law.
Changes in Retirement Strategies
Some retirees’ methods of claiming benefits are anticipated to alter as a result of the Social Security Fairness Act. The anticipated rise in benefit filings among those whose contributions were previously deemed invalid by the GPO is a noteworthy consequence.
Since they didn’t see any financial gain from applying for Social Security, many of these individuals had refrained from doing so. It is anticipated that many will finish the required paperwork in exchange for the possibility of money.
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Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.