More than a year. That is the amount of time that millions of retirees, including teachers, firefighters, police officers, and other public pension workers, may have to wait before receiving the $360 increase in their Social Security benefits.
This delay is due to the implementation of the Social Security Fairness Act, which was passed to address historical inequities but faces significant operational challenges.
Despite the fact that then-President Joe Biden signed the Social Security Fairness Act last December, its implementation will take time. According to the SSA, a lack of funding and adequate personnel makes it difficult to make timely adjustments, which are emerging as the primary reasons for the delay.
In fact, this new policy measure has reignited the debate over the financial viability of the Social Security system. Lawmakers and economists have noted that the measure benefits millions of public-sector workers, but it also poses a challenge to the program’s trust funds, which are already under strain due to the aging population and an increasing number of retirees.
Changes in Social Security benefits
According to the provisions of the US Social Security Equity Act, eliminating these provisions will allow beneficiaries to receive higher payments, both retroactively and in future monthly deposits.
The Congressional Budget Office estimates that repealing the Surplus Elimination Provision will increase monthly benefits by an average of $360 for over two million people by December 2025.
On the other hand, the elimination of the Government Pension Offset will benefit approximately 380,000 spouses of deceased individuals, who will see an average increase of $700 in monthly payments.
Furthermore, an additional 390,000 spouses who have seen their own benefits reduced may receive monthly increases of up to $1,190.
As a result, these changes aim to ensure that public-sector workers and their families receive more equitable compensation than those who have worked in the private sector.
Government employees had their benefits significantly reduced as a result of these provisions, despite having contributed to the Social Security system throughout their working lives.
Consequences for the Social Security system
These new payments also face a new reality, as they may put additional strain on Social Security’s trust funds, which are already facing insolvency in the coming years. Although the law aims to address inequalities, its implementation may complicate the system’s financial sustainability.
Currently, Social Security funds are funded through payroll taxes; however, with an aging population and an increase in the number of beneficiaries, some experts have warned that the system may run out of funds by 2034 if no structural changes are made.
Furthermore, the SSA warned that the delays would affect all system users, not just those who would benefit from the new law.
