A new law will provide Social Security benefit increases for more than 3.2 million individuals. Yet it may take more than a year before some see the money.
A new law, the Social Security Fairness Act, provides benefit increases for more than 3.2 million individuals including certain teachers, police officers, firefighters and other public servants.
The changes will result in higher monthly payments ranging from $360 to $1,190, depending on their circumstances, the Congressional Budget Office. In addition, the law also provides lump-sum payments for those benefit increases dating back to benefits payable for January 2024 and after.Here are changes Americans would make to close Social Security's funding gapThe Social Security Administration is already helping some affected beneficiaries, the agency stated on its website.
The Social Security Fairness Act was voted into law with broad bipartisan support in both the House and Senate. Yet retirement policy experts have. One sticking point is the cost — estimated by the CBO to tally $200 billion over 10 years — with no offsets to help pay that increase."When Congress addresses that … it'd be useful for Congress to increase SSA's budget to account for the implementation costs," Weaver said.
That law affected about 1 million beneficiaries and cost about $65 million to implement in today's dollars, according to Weaver. The new Social Security Fairness Act will affect about three times as many beneficiaries, he said. If instead the appropriations from Congress to the agency are reduced, the implementation of the new law may take even longer than one year, Adcock said.As the Social Security Administration works to implement the law's new benefit changes, the agency will face some pain points that may contribute to delays, according to Weaver.
The effective date also presents other potential complications. For example, in any given year, 4% of Social Security beneficiaries die. Consequently, the Social Security Administration will be tasked with identifying more than 100,000 beneficiaries who are affected by the law who may have died in 2024 and distributing money to their survivors, Weaver said.
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