The Social Security Administration (SSA) has announced that it could take more than a year to implement the recently passed Social Security Fairness Act. The law, which was signed by President Joe Biden, aims to boost benefits for approximately 3.2 million retirees and their spouses by repealing the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). The WEP limited Social Security benefits for retirees who qualified for both Social Security and a noncovered pension, while the GPO impacted spouses or widowers who receive noncovered pensions.
In 2022, the WEP affected over 2 million Americans, and the GPO applied to more than 734,000 beneficiaries. Despite the excitement surrounding the law’s passage, the SSA has stated that implementing the changes will be a complex and time-consuming process. The agency must recalculate the benefits of over 3 million people and adjust benefits retroactively, dating back to the beginning of 2024.
Ssa faces year-long implementation delays
The SSA is also facing staffing shortages and a hiring freeze that went into effect last November, further complicating the implementation process. The agency has begun working through the changes but has advised affected retirees to be cautious about adjusting their budgets, as the benefit increases will be determined on a case-by-case basis.
Spouses who never applied for Social Security benefits due to concerns over the GPO may now be eligible to receive benefits that will increase their retirement income. The SSA has advised these individuals to file an application for survivors’ benefits if they have not already done so and to review their mailing address and direct deposit information on file. While the elimination of the WEP and GPO is expected to significantly boost monthly benefits for millions of retirees, the implementation delays could create financial uncertainty in the short term.
Retirees are encouraged to remain informed and patient as the SSA works through these changes.