The Social Security Administration has indicated it may take more than a year to process all of the benefit changes from the new Social Security Fairness Act. The law, signed by President Joe Biden on Jan. 5, provides benefit increases for over 3.2 million people, including certain teachers, police officers, firefighters, and other public servants.
“Congress must either provide funding to cover the implementation costs, or SSA will struggle to work these cases,” said David A. Weaver, a former SSA executive who now teaches statistics at the University of South Carolina. The law eliminates the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced Social Security benefits for people who received pensions from non-covered employment.
The changes will result in higher monthly payments ranging from $360 to $1,190, depending on individual circumstances, according to the Congressional Budget Office (CBO). The law also provides lump-sum payments for benefit increases dating back to benefits payable for January 2024 and after. The Social Security Administration is already assisting some beneficiaries, but the agency cannot commit to a timeline for processing all increases.
“Under SSA’s current budget, SSA expects it could take more than one year to adjust benefits and pay all retroactive benefits,” stated an SSA official.
Funding essential for SSA implementation
On Feb.
5, a bipartisan group of Senators urged Acting Social Security Commissioner Michelle King to implement the benefit changes swiftly. However, experts emphasize that more financial resources are essential for smooth implementation. At a minimum, the agency will need around $200 million to implement the Social Security Fairness Act’s changes,” Weaver noted.
The law is expected to cost $200 billion over 10 years, and it will affect Social Security’s trust fund depletion date, according to CBO estimates. The Social Security Administration’s staffing is currently at a 50-year low, according to Dan Adcock, director of government relations and policy at the National Committee to Preserve Social Security and Medicare. If appropriations from Congress are reduced, the implementation of the new law may take even longer than one year.
The effective date set by the legislation presents potential complications, as back payments must be calculated for benefits payable from January 2024. Additionally, the SSA will need to identify and distribute payments to more than 100,000 beneficiaries who may have died in 2024. As the SSA navigates these challenges, prompt and adequate funding from Congress will be critical to ensuring the timely and effective implementation of the benefit increases.