Some retirees will see bump in Social Security benefit starting next month
Retirement just got a little boost for many public sector retirees and their spouses.
By the end of this month, more than 3 million Social Security recipients affected by the Social Security Fairness Act that President Biden signed into law in January will see a bump in their benefits.
This law increases monthly Social Security benefits for certain types of workers, including some: teachers, firefighters, and police officers in many states, federal employees covered by the Civil Service Retirement System, and people whose work had been covered by a foreign social security system.
These are typically retired workers who receive a pension based on work that was not covered by Social Security, but also worked part-time or held side jobs during their lives.
A teacher, for example, who worked a part-time summer job and paid into Social Security during that employment and is entitled to Social Security benefits. Her access to teacher pensions could have meant she didn’t get all the Social Security retirement benefits she had earned.
Social Security is an earned benefit, which means that to become eligible, you pay the payroll tax during your working years, and the amount you receive in benefits is based on your wage history. This is not a new cost-of-living (COLA) adjustment. The 2025 COLA went into effect in January. That 2.5% increase added a little under $50 to the average monthly benefit of roughly $1,900, according to the SSA.
There will also be a lump sum payment for many retirees that covers the increase in their benefit amount back to January 2024 — back pay, if you will. The sum will be direct deposited by the end of March.
The monthly benefit increase may amount to a few hundred dollars, up to more than $1,000, depending on a range of factors, including the type of Social Security benefit received and the amount of the person’s pension.
The bigger checks will arrive in April (for their March 2025 benefit).
Anyone whose monthly benefit is raised, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the change.
The law ends the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions reduced or eliminated the Social Security benefits of people who receive a pension based on work that was not covered by Social Security in addition to income they paid the tax on.
“There actually is logic in the WEP and the Government Pension Offset (GPO), but it really only made sense to policy experts and actuaries,” Mark Miller, an author and retirement expert, told Yahoo Finance. “But for many workers impacted by these rules, the big benefit cuts came as a huge surprise, and understandably angered them because they seemed so unfair. That’s what led to the many efforts to reform or repeal the rules, and Congress finally took action.”
According to the Social Security Administration, about 72% of state and local public employees work in jobs that are covered by Social Security and are not affected by WEP or GPO. Those individuals will not receive a benefit increase.
You can check the status of your benefit or update an address or direct deposit information through your online my Social Security account.
But soon, that may present a roadblock for many seniors.
Customer service crack down
This week, the Social Security Administration announced that anyone applying for new benefits, or checking benefits, must first verify their identity online.
This jettisons the policy that permitted people to complete the benefit application process 100% by toll-free phone line, which had been in place for decades.
For those who do not have access to the internet, particularly in rural areas, this is a serious obstacle. And it has senior advocates up in arms.
“The Social Security Administration’s move to force people to visit field offices in person for services that they have sought by phone will result in more headaches and longer wait times to resolve routine customer service needs,” according to AARP’s Chief Advocacy and Engagement Officer Nancy LeaMond.
The push to make people go into an office for an appointment vs a phone call from home is what sets her off.
“Requiring rural Americans to go into an office can mean having to take a day off of work and drive for hours merely to fill out paperwork. Any delay in Social Security caused by this change can mean real economic hardship,” she added.
It already takes more than a month to set up an in-person appointment.
When you do get one, be sure to take your proof of identity. An acceptable document must be current (not expired) and show your name, identifying information (date of birth or age) and preferably a recent photograph. For example, you can use your driver’s license, state-issued non-driver identification card, or US passport.
Finding an office may be tricky. An estimated 47 local Social Security offices are expected to closed as a result of the Department of Government Efficiency (DOGE)’s audit of the agency.
“The new process would force seniors and people with disabilities to navigate a needless technical hurdle in applying for their earned benefits,” Max Richtman, president of the National Committee to Preserve Social Security and Medicare, said in a statement.
Kerry Hannon is a Senior Columnist at Yahoo Finance. She is a career and retirement strategist and the author of 14 books, including “In Control at 50+: How to Succeed in the New World of Work” and “Never Too Old to Get Rich.” Follow her on Bluesky.
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