Starting this month, millions of retirees across the United States will experience a significant increase in their Social Security benefits. This change will benefit former public sector employees, including police officers, firefighters, teachers, and other government workers, who were previously affected by certain reductions in their retirement payments.

According The Motley Fool, the increase comes as a result of the Social Security Fairness Act, which eliminates two provisions that had reduced payments for many beneficiaries. This adjustment is not only permanent but also retroactive to January 2024, meaning that many retirees will receive lump-sum payments along with their regular benefit increase. While the average affected senior will see a $360 boost per month, some could receive as much as $1,000 or more.

Why Are Some Retirees Getting More Money?

The Social Security Fairness Act, signed by former President Joe Biden in the final days of his term, removed two key provisions that had reduced benefits for certain retirees:

• Windfall Elimination Provision (WEP): Previously reduced retirement benefits for workers who also received a pension from a job not covered by Social Security.
• Government Pension Offset (GPO): Reduced spousal and survivor benefits for those who received a government pension.

With these provisions eliminated, the Social Security Administration (SSA) has been working to automatically adjust benefits for eligible retirees. Initially, the SSA estimated that these changes could take up to a year to process, but automation has significantly accelerated the timeline, allowing millions of beneficiaries to receive their increased payments this month.

How to Ensure You Receive the Correct Payment

Beneficiaries should verify that their banking information is up to date with the SSA, as any retroactive payments will be deposited into the account currently on file. If you need to update your payment details, the fastest way to do so is by logging into your my Social Security account or visiting a local SSA office.

If your payment does not arrive in the coming weeks, the SSA has advised beneficiaries to wait until April before inquiring about retroactive payments or their adjusted monthly benefit. In complex cases, the adjustments may take up to one year to be fully processed.