The Social Security Administration (SSA) has warned that retired individuals expecting risen benefits as a result of the Social Security Fairness Act might experience delays of over a year. The Act, which repealed two previous laws, was aimed at increasing benefits for more than 2 million retired persons, including certain teachers, firefighters, police officers, federal workers, and others. The regulation was supposed to take retroactive effect in January 2024, with those qualified to receive amended benefits from the whole of 2024 and beyond.
However, due to funding constraints, the SSA now estimates that it could take longer than a year to modify future benefits and disburse retroactive benefits. The SSA revealed in a recent update that its capacity to promptly enforce the law without negatively impacting daily customer service hinges on appropriate funding, which the Act did not provide.
The SSA refrained from providing a specific timeline for when benefits would be revised. The SSA website explains that even though SSA is currently assisting some impacted beneficiaries, it could take over a year to adjust all benefits and pay out retroactive benefits under the current SSA budget.
The SSA encourages individuals with queries to refer to and subscribe to the Social Security Fairness Act webpage for information and updates. In-person office visits or calls are discouraged owing to possible delays and extended waiting times.
The SSA's responsibility to help people with this new workload is exacerbated by ongoing staff shortages and a hiring freeze dating back to November 2024.
As people affected by the new legislation wait, the SSA advises them to update their mailing address and direct deposit details. One specialist recommends that people should strategize on how to utilize their retroactive benefit, such as using it to pay off debt or establish an emergency savings account.
For those who have never applied before but could be eligible for spousal or surviving spouses' benefits due to the repeal of the old Government Pension Offset (GPO) provision, the SSA advises early application.