Payment Increase for Social Security Beneficiaries Postponed by Over a Year
Millions of individuals receiving Social Security could encounter delays in obtaining the increased benefits that were pledged by a law enacted by former President Joe Biden.
Those expecting a rise in their Social Security benefits due to legislation enacted in the final days of the Biden administration may find themselves waiting over a year longer than originally anticipated, as stated by the Social Security Administration (SSA).
However, the legislation did not allocate any additional funding for its implementation, and the SSA is currently operating under its existing budget to assist the affected beneficiaries, which may result in a wait of over a year before recipients see the enhanced payments.
The Social Security Fairness Act eliminated two tax provisions that had previously reduced benefits for individuals with government pensions, such as police officers, teachers, and firefighters. Additionally, over 2 million individuals are set to receive lump-sum payments totaling thousands of dollars to compensate for the benefit shortfall they were expected to encounter in 2024, thanks to the law’s retroactive nature.
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With the new legislation, the SSA is tasked with adjusting benefits for over 3 million people. The agency has indicated that it would be challenging to expedite this process without adversely affecting regular customer service due to existing budget limitations. In addition, staffing shortages and a current hiring freeze further complicate the SSA’s ability to make these adjustments efficiently.
“SSA is finalizing its strategy to implement the Act while minimizing negative impacts on our routine workloads and public service,” the agency noted in its update. “At this time, we cannot provide an estimated timeline for when we will adjust an individual’s past or future benefits.”
The Social Security Fairness Act was passed in the House on November 12 with strong bipartisan support, achieving a 327–75 vote. It subsequently passed the Senate with a similarly bipartisan vote of 76–20, receiving backing from many Republicans who typically express reservations about increasing government spending.
Proponents of the legislation argued that it represents a long overdue correction to laws that restricted benefits for certain public servants. Critics, however, contended that it would unfairly advantage a select group of workers.
