New Social Security Benefits!

Update to New Social Security Benefits!

Starting the week of February 24, 2025, SSA is beginning to pay retroactive benefits and will increase monthly benefit payments to people whose benefits have been affected by the WEP and GPO

If a beneficiary is due retroactive benefits as a result of the Act, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. This retroactive payment will cover the increase in their benefit amount back to January 2024, the month when WEP and GPO no longer apply.

Social Security benefits are paid one month behind. Most affected beneficiaries will begin receiving their new monthly benefit amount in April 2025 (for their March 2025 benefit).

Anyone whose monthly benefit is adjusted, or who will get a retroactive payment, will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.

NOTE: A beneficiary may receive two mailed notices, the first when WEP or GPO is removed from their record, and a second when their monthly benefit amount is adjusted for their new monthly payment amount. They may receive the retroactive payment before receiving the mailed notice.

We have been able to expedite payments due to the use of automation. For the many complex cases that cannot be processed automatically, additional time is required to manually update the records and pay both retroactive benefits and the new benefits amount.

We urge beneficiaries to wait until April to inquire about the status of their retroactive payment, since these payments will process incrementally throughout March.

Beneficiaries should also wait until after receiving their April payment before contacting SSA to ask about their monthly benefit amount because the new amount will not be reflected until April for their March payment.

New Social Security Benefits Signed Into Law REPEALING the "Windfall Elimination Provision" (WEP) and "The Government Pension Offset"!

InvesTex Credit Union is working with Jason Stepanik, with SF Planning Group, LLC, to help assist those members with questions regarding the new Social Security Benefits. See below...

On January 5th President Biden signed the Social Security Fairness Act officially repealing the Windfall Elimination Provision and the Government Pension Offset. The WEP and GPO provisions were designed to reduce and, in some cases eliminate Social Security benefits for individuals that receive a government pension, Teachers receiving TRS, Firefighters, and Police. It is estimated that the average recipient subject to WEP/GPO will see a monthly benefit increase of approximately $460 per month and more than $1,000 for some spouses of affected workers. Another added benefit is the new law is retroactive for calendar year 2024. This could create a substantial windfall for any members that are subject to WEP or GPO.

So, what is next? We are still waiting on the Social Security Administration to provide details on how and when they will begin disbursements. If you are currently claiming Social Security, benefit increases should be automatic. If you have not claimed benefits you will need to schedule a meeting with the Social Security Administration to review your options. In the meantime, please go to www.ssa.gov/myaccount and make sure the Social Security Administration has your correct contact information. You can also view updates at www.ssa.gov/benefits/retirement/social-security-fairness-act.html. Lastly, it is a great time to develop a plan for any potential windfall or increase in monthly benefits.

If you have any questions on how these changes may impact your personal situation, please feel free to contact me.

Jason Stepanik CFP®, CIMA®
Founder-Lead Planner
SF Planning Group, LLC
jason.stepanik@sfpgrp.com
www.sfpgrp.com