The Social Security Administration this week began disbursing retroactive payments corresponding to January 2024 for around 3 million public sector workers and retirees. These funds derive from the Social Security Fairness Act, enacted in January, which modifies the calculation of benefits for certain groups.
The monthly adjustments will begin to be applied in April, as confirmed by the agency. However, approximately 72% of state and local employees will not receive raises, as their jobs are already covered by Social Security taxes, the SSA explained in documents updated as of February 25.
Social Security Lump Sum Payments: Dates and Expected Amounts
“Only people who receive a pension based on work not covered by Social Security could see increases in their benefits,” the SSA said. Beneficiaries include teachers, firefighters, police officers and federal employees under the Civil Service Retirement System, as well as those who received pensions from foreign systems.
Retroactive payments will be deposited into bank accounts on file through the end of March. The SSA warned that the amounts will vary: some increases will be minimal, while others will exceed $1,000 per month. President Biden had projected an average increase of $360.
Schedule and complexity in disbursements
The agency attributed the long timelines to the technical complexity of recalculating monthly benefits for millions of cases. “Some jobs have to be done manually, on a case-by-case basis,” he said. It is currently processing claims from 3.2 million people affected by the elimination of two rules that reduced their payments.
About 67 million Americans, receive Social Security benefits, mainly pensions. Most will not experience any changes. The SSA will send postal notices to recipients of retroactive payments or monthly adjustments, although some will receive funds before the notifications.
Recommendations for those affected by this Social Security problem
The agency urged you to verify the accuracy of your mailing address and direct deposit data using the online account www.ssa.gov/myaccount or by calling 1-800-772-1213. Those who have never applied for spousal or survivor benefits should apply at www.ssa.gov/apply.
Regarding possible effects on spousal benefits, the SSA acknowledged that the rules are technical and vary depending on work histories. He recommended consulting the specific questions section on their website for particular cases.
The confusion generated by the new law has increased the risks of fraud, the SSA warned. Common signs include unsolicited calls demanding payment via gift cards or cryptocurrency to access benefits.
“The SSA does not ask or require that a person pay for assistance or that their benefits be started, increased or paid retroactively,” he reiterated. Potential scams can be reported at www.ssa.gov/scams.
