On January 5, President Joe Biden signed the bipartisan Social Security Fairness Act. This law removes two rules—the Government Pension Offset (GPO) and the Windfall Elimination Provision (WEP)—that have been in place for over 40 years.
These rules affected many people in Ohio and other states who worked in government jobs, such as teachers, firefighters, police officers, and postal workers hired before 1984.
Why Does This Matter?
The old rules often reduced Social Security benefits for those who also received public pensions.
The new law changes this, allowing many retirees to receive higher Social Security payments.
How Did the Old Rules Work?
- WEP (Windfall Elimination Provision): This rule reduced Social Security benefits for people who also received a public pension. The new law removes this rule, meaning retirees can now receive their full Social Security benefits.
- GPO (Government Pension Offset): This rule cut Social Security spousal or survivor benefits for people who had a public pension. Now, retirees can claim full spousal or survivor benefits without offsets.
Examples of How the Changes Help?
Here are a few examples to explain what these changes mean:
- Jack, 72: He gets a $4,000 monthly public pension and a $400 Social Security benefit. His Social Security benefit will now double. He doesn’t need to do anything—Social Security will recalculate his benefits automatically and pay him retroactively from January 2024.
- Mary Ellen, 84: She receives a $5,000 monthly pension. Her late husband’s Social Security benefit would have been $3,000, but under the old rules, she couldn’t receive it. Now, she will get the full $3,000 retroactively from January 2024. She needs to contact Social Security to apply for widow’s benefits.
- Joe, 77: Joe gets a $4,000 pension and a $300 Social Security benefit. His benefit will double, and he can now claim additional spousal benefits. Joe needs to call Social Security to apply.
What You Should Do Next?
If you receive a public pension and are or were married to someone who paid into Social Security, review your benefits.
The Social Security Administration (SSA) will handle many changes automatically, but in some cases, you’ll need to contact them to apply for new benefits.
Key Points to Remember
- You may be taxed on the extra income from Social Security benefits.
- Your Medicare premiums could also be affected by higher income.
Where to Get Help?
Stay updated by visiting the official SSA website at www.ssa.gov. You can call them at 1-800-772-1213, Monday to Friday from 8 a.m. to 7 p.m.
Calling early in the morning, later in the week, or at the end of the month usually works best.
Patience is key as these changes are processed. The SSA will likely be busy, but understanding your new benefits is worth the wait.
Disclaimer- Our team has thoroughly fact-checked this article to ensure its accuracy and maintain its credibility. We are committed to providing honest and reliable content for our readers.
Archer Bannister is a journalist with 4 years of experience covering hard-hitting stories. Currently working with Mikeandjonpodcast, Archer specializes in delivering timely and in-depth updates on a variety of topics, including crime news, politics, and national issues affecting the USA. His expertise and dedication to delivering accurate, impactful news make him a trusted voice for audiences seeking to stay informed on critical topics.
