The Social Security Fairness Act – Patience is suggested - MarketWatch
With the enactment of H.R. 82 – the Social Security Fairness Act – many are wondering what affect, if any, this new law may have on their personal Social Security benefit. For starters, you should know that unless you have a pension from a government job where you did not pay Social Security payroll taxes, you are not affected by the new law. Only those who work in and retired from one of the 26 U.S. states which have exempted some employees from participating in the Federal Social Security program are affected. The new law also affects older Federal retirees who retired under the previous Civil Service Retirement System (CSRS); newer Federal employees hired after 1986 are not affected because they have Social Security taxes withheld from their paychecks and, thus, are not affected by H.R.82. Nevertheless, the new law does affect over 2.5 million retirees, now collecting reduced Social Security benefits, who will see their benefits increased. But the question is “when”?
As can be imagined, because so many SS beneficiaries are affected, it will take the Social Security Administration some time to react and change their systems to accommodate the new law. For this reason the SSA has asked for patience. The AMAC Foundation’s Social Security Advisory Service also advises our members to be patient while the SSA implements required changes, and has issued this statement:
“With the passage of HR 82, The Social Security Fairness Act, people who are or should be receiving a Social Security benefit and a pension from employment not covered under Social Security will be affected by this new legislation. If a person who is receiving a non-covered pension has had their Social Security benefits reduced because of WEP and/or GPO, they will see an increase in their Social Security benefits potentially as far back as January 2024. Afterwards, the new adjusted monthly amount will continue to be paid. SSA is in the process of adjusting their internal systems and programs to accommodate and implement this new change. They will be informing all affected parties as they roll out the changes and payments. Many people who are already receiving reduced benefits and in SSA’s systems will not need to take any action as everything should be automated. If someone never applied for Social Security benefits because of WEP and/or GPO, they should contact SSA as soon as possible at 1-800-772-1213 to speak with a representative. An appointment may be established during their phone conversation with the SSA representative. We ask everyone to have patience while SSA implements all these changes and subsequently notifies everyone affected of their actions.”
Also, in this MarketWatch article, Alessandra Malito reports on how the WEP and GPO provisions affected some government retirees, and counsels those affected to be patient as the SSA reacts to the new law. Click here to read the MarketWatch article.